## Café Economics: Partnerships for Refugees

## Source details

**Canonical URL:** [Café Economics: Partnerships for Refugees](https://www.imf.org/en/publications/fandd/issues/2023/06/cafe-econ-partnerships-for-refugees)

## Other formats

- [Markdown version](/en/publications/fandd/issues/2023/06/cafe-econ-partnerships-for-refugees/index.md)
- [Structured JSON version](/en/publications/fandd/issues/2023/06/cafe-econ-partnerships-for-refugees/index.json)
- [Bundle manifest](/en/publications/fandd/issues/2023/06/cafe-econ-partnerships-for-refugees/bundle-manifest.json)

## Bibliographic details
- Authors: BRUCE EDWARDS
- Published: June 1, 2023

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### Overview
- UNHCR’s Filippo Grandi argues that long-term solutions for refugees go beyond humanitarian aid and require strategic partnerships between humanitarians and economists to support millions of forcibly displaced people and foster economic recovery.
- Interview conducted by Bruce Edwards for F&D Magazine; based on a podcast from March 23, 2023. The interview has been edited for length and clarity.

### Scale and drivers of displacement
- Key figures:
  - Ten years ago, the global population of forcibly displaced people, including refugees, was about 40 million.
  - It’s now 103 million and rising.
- Primary drivers:
  - Multiplication of conflicts as the largest driver of population displacement.
  - Other contributing drivers: economic factors, inequalities, demographics, and climate change.
- Feedback effects:
  - Displacement can negatively impact nature (deforestation, depletion of water resources), which can further exacerbate tensions and displacement.

### UNHCR mandate, footprint, and resources
- Mandate focus:
  - Protect and find solutions for refugees—people fleeing violence, war, or persecution.
  - Increasing assistance to internally displaced people (those fleeing within their own country).
- Operational footprint and funding:
  - Works in 137 countries and has a workforce of about 20,000 people.
  - Yearly expenditure of about $6 billion in the last couple of years, almost entirely voluntarily funded.
  - Faces funding shortfalls given rising needs and high competition for resources.
- Strategic shift:
  - Move from purely humanitarian responses toward partnerships with development actors to meet medium- and longer-term needs (education, proper health care, livelihoods).

### Partnerships with financial and development institutions
- United Nations compacts:
  - In 2018, the United Nations established two compacts: one on refugees and one on safe and orderly migration. UNHCR is custodian of the compact on refugees.
  - The compact proposes that especially in large refugee situations, responses should extend beyond humanitarian aid to include medium- and long-term measures.
- World Bank cooperation:
  - World Bank established financial instruments within its International Development Association platform for low-income and, separately, for middle-income countries to help host large numbers of refugees.
  - Purpose: work in parallel to improve inclusion of refugees in education and health systems, livelihoods, economic opportunities, and support to host communities.
- Broader partnerships:
  - Work with bilateral development agencies and regional banks.
  - IMF engagement is growing; UNHCR has a staff member on loan to advise the IMF on issues related to forced displacement.
- Policy implication:
  - A concerted effort with development and financial institutions can enable medium- and long-term integration of refugees and unlock economic benefits.

### Vulnerabilities to global economic trends
- Three factors increasing UNHCR vulnerability to economic trends:
  - Inflation increases operational costs, especially for expensive security-logistical operations in places like Afghanistan and northwest Syria.
  - Humanitarian aid growth has not matched the growth of needs.
  - Greater economic pressures and risks make displaced populations and host communities more fragile and in need of assistance.
- Macroeconomic impact:
  - High numbers of refugees can have a macroeconomic impact on host countries.
  - UNHCR urges the IMF to factor displacement into its work in refugee host countries and to support the case that integrating refugees brings large economic benefits.

### Working in extremely difficult environments
- Operational constraints:
  - Operating in territories controlled by entities not recognized by the international community (example: Afghanistan) or in countries under sanctions complicates work.
  - UNHCR’s stance: presence is necessary to help people regardless of international politics; engagement with all entities and governments is sometimes required.
- Mechanisms:
  - Appropriate exemptions to sanctions can allow receipt of sufficient resources to run indispensable humanitarian operations (example cited: Afghanistan).

### Key policy recommendations and practice points
- Expand partnerships beyond humanitarian actors to include development organizations, World Bank, bilateral agencies, regional banks, and financial institutions like the IMF.
- Prioritize medium- and long-term needs of displaced populations: education, proper health care, livelihoods, economic inclusion.
- IMF and other financial institutions should factor forced displacement into their country work in host countries to reflect macroeconomic impacts and potential benefits of integration.
- Use legal and financial mechanisms (for example, sanctions exemptions where applicable) to ensure delivery of indispensable humanitarian operations in complex environments.

*Source: Café Economics: Partnerships for Refugees, F&D Magazine, June 2023. Interview based on a podcast from March 23, 2023.*

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## Content in this bundle

- **Cafe Economics: Partnerships for Refugees**
  - [Cafe Economics: Partnerships for Refugees (Markdown version)](/-/media/files/publications/fandd/article/2023/june/cafe-economics.pdf.md){rel="alternate" type="text/markdown"}
  - [Cafe Economics: Partnerships for Refugees (PDF)](/-/media/files/publications/fandd/article/2023/june/cafe-economics.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/fandd/issues/2023/06/cafe-econ-partnerships-for-refugees_