A coalition of UNHCR, The World Bank Partnership for Economic Inclusion (PEI) and 16 NGOs to increase self-reliance, economic and social inclusion of extremely poor refugees & host community members using the well-proven graduation approach from 2020-2025.
Alleviating poverty of half a million households consisting of refugees and host communities as an objective within 5 years. As of July 2023, the Coalition has secured over 250 million USD in funding reaching approximately 111,000 households.
Guiding the coalition's response, the approach combines social protection and development assistance to help extremely poor refugees and host communities to become self-reliant. The methodology is developed by BRAC and show impressive results with 95% of participants graduating out of poverty.
The Coalition has a target of reaching 35 countries across Africa, Asia, Europe and Latin America by 2025. Target households are in areas where both refugees and nationals live in poverty and close proximity.
Parallel funding where donors fund implementing NGOs directly is the Coalition's modality. UNHCR and the World Bank PEI will be the main conveners by facilitating access to populations, supporting programming, fundraising, as well as impact monitoring and evidence generation of the Coalition's programmes.
The approximate cost of alleviating a household of extreme poverty is on average US$ 1,400. To meet the coalition’s goal of alleviating 500,000 households, the annual need is an average of USD 140 million annually for 5 years, totaling US$ 700 million.
By the end of 2022, an unprecedented 108.4 million people worldwide have been forcibly displaced as a result of persecution, conflict, violence, human rights violations or events disturbing public order. To compound matters, 76% of 35.3 million refugees globally are hosted in developing countries. 20% live in the least developed countries. Here, refugees and host communities alike often find themselves enduring extreme poverty and scarce economic opportunities. Further, the majority of refugees worldwide live in protracted situations for five years or more, making most refugees less suited for emergency relief than for longer term solutions.
With an average of 30 persons being forcibly displaced every minute of every day, both refugees, nationals in host communities, and host country governments experience increasing social and economic pressure. In addition to new and protracted conflicts, impact of climate change will significantly add to the numbers of the forcibly displaced in the coming years. Refugees and nationals in host communities are often forced into informal employment without regular earnings and social protection, thus, leaving many with little resilience to shocks and highly dependent on humanitarian aid. In locations where the level of poverty of refugees and host communities is on par, disparities in access to relief, resources and infrastructure often create pressure on refugees and nationals alike. This in turn puts fiscal and political pressures on hosting governments and social services, particularly in low-income countries.
Enabling refugees to work in their host country has received renewed attention in the past years as a way to combine development needs of host communities and countries with the humanitarian needs of refugees. When refugees are able to work, their self-reliance is enhanced, and they are able to provide for themselves and their families, increase resilience, regain dignity, and build independent and meaningful future. Ultimately, access to livelihoods and jobs enables the impoverished to meet their needs for protection, food security, health, housing, and other essential services in a safe, sustainable, and dignified manner. A growing body of evidence suggests that including refugees in local economies contributes to economic growth, and can thus be mutually beneficial for refugees and host communities. Overall, access to work reduces pressure on refugees and hosts locally, contributes to economic growth, and therefore eases pressure on the host country as a whole.
In December 2018, the United Nations adopted the Global Compact on Refugees (GCR) in which member states committed to the objectives of reducing pressure on host countries and enhancing refugee self-reliance. This is to be achieved by increased international burden and responsibility sharing, and by mobilizing the international community and stakeholders as a whole. In line with the 2030 Agenda’s Sustainable Development Goals, the Compact calls for alleviating poverty which is itself a significant root cause of large refugee populations.
In response to the global poverty situation among refugees and nationals in host communities, and in line with the GCR spirit, a coalition between the UNHCR, The World Bank Partnership for Economic Inclusion (PEI) and 16 NGOs has been formed with the goal of alleviating poverty for refugees and host communities in selected countries. The partners are: AVSI, BOMA Project, BRAC, Caritas Switzerland, Concern Worldwide, the Danish Refugee Council (DRC), Fundación Capital, GOAL, HIAS, Mercy Corps, the Norwegian Refugee Council (NRC), Trickle Up, Village Enterprise and World Vision, Innovations for Poverty Action (IPA) , Refugee Self-Reliance Initiative.
Find out more through our Global Country Responses.