Foreign Aid, Refugee Policy Liberality, and Conflict in Refugee Hosting Areas

• In Event: Refugees, Violence, and Integration

Abstract

Can foreign aid reduce political violence in refugee hosting areas? Previous studies have warned that aid projects near refugee camps can be exploited by armed groups to fuel civil conflicts. However, recent research provides evidence that the presence of refugees can attract more foreign aid and improve well-being in refugee hosting communities, thereby reducing the potential for political violence. In this article, I argue that refugee policies matter. Policies that liberalize refugees' freedom of movement and their right to work initiate an economic spillover from aid allocation near refugee camps and mitigate tension between locals and refugees, thereby decreasing civil conflicts. Conversely, restrictive refugee policies may hinder the sharing of aid between refugees and the host community, creating opportunities for refugee militarization and civil conflict. By analyzing the impact of World Bank aid in 767 refugee-hosting provinces across 48 countries in the Global South, I found that aid allocation in countries with inclusive refugee policies mitigates conflict in refugee-hosting provinces. However, the liberalization of refugee policy also has a side effect: it increases conflict in provinces without a refugee presence.

Author

• Zhejun Qiu, University of Pittsburgh