What new research tells us about effective approaches to inclusion of displaced populations? Photo © Dominic Chavez/World Bank
Millions of people around the world are forcibly displaced due to conflict, fragility, and economic instability, resulting in far-reaching humanitarian challenges. As governments and international organizations grapple with these crises, a critical question emerges: How can we foster economic inclusion for refugees in fragile contexts, thereby ensuring their resilience and self-reliance?
In this blog post, we share evidence-based insights into economic inclusion strategies for displaced populations drawn from a series of Knowledge for Change Program (KCP) research projects. These projects extend beyond traditional forms of material aid, addressing not only the economic but also the social and psychological dimensions of refugee support. Through a series of evaluations and case studies, we highlight innovative approaches that are empowering vulnerable communities to rebuild their lives with dignity.
Niger Refugees and Host Communities Support Project (PARCA)
Niger, ranked last on the UN Human Development Index, faces immense challenges with nearly half its population living below the poverty line. The country has become a home for over 300,000 refugees, internally displaced persons, and returnees, who have placed substantial pressure on local resources.
The PARCA project aimed to improve livelihoods through a mix of cash grants and entrepreneurship training, targeting both displaced persons and host communities in regions such as Diffa, Maradi, and Tillabéri. The initiative’s impact evaluation revealed that integrating financial support with business skills training significantly increased household incomes, consumption, and overall well-being.
The program’s approach—offering a $200 cash grant alongside micro-enterprise training— empowered participants to invest in productive assets and diversify income sources. Both host and displaced communities experienced notable gains in non-farm business profits. Displaced households in particular, saw increases in agricultural activities and greater improvements in overall financial well-being. However, tensions over shared resources like water and land surfaced, highlighting the need for context-specific interventions to foster social cohesion.
Household at Work Project
Conducted in the Rohingya refugee camps of Cox’s Bazar, this study, systematically examined how various livelihood interventions—specifically paid work, cash transfers, and volunteer activities—affect psychosocial health and interpersonal dynamics among refugees.
The findings were clear: paid work greatly improved psychological well-being for both men and women, much more than cash transfers alone. Women saw significant reductions in depression and felt more stable through employment, even if they had never worked before. The benefits of work also extended to other household members. Notably, spouses of employed men experienced less intimate partner violence (IPV). These results highlight the broader benefits of economic inclusion programs, not just for income but also for better household dynamics.
For policy recommendations, the project suggests integrating employment opportunities into social protection programs to improve both economic and psychosocial outcomes. It also highlights the importance of considering the program’s impact on other household members. Complementary interventions may help households manage changes when only one spouse starts working.
Beyond economic inclusion, supporting displaced populations requires addressing education and social integration. The ongoing conflict in Ukraine has displaced over 6 million refugees straining educational systems across the EU where refugee children face barriers related to language, trauma, and social isolation.
Protecting Human Capital during Forced Displacement
The project aims to understand and mitigate these educational barriers for Ukrainian children in Italian schools. Preliminary findings show weak connection of Ukrainian refugee students to the Italian school system, affecting their learning and psycho-social development. Targeted interventions like supplementary language classes, psychological support, and culturally sensitive teacher training are essential for integrating refugee students. Addressing these challenges prevents long-term human capital losses and fosters social cohesion in host communities.
This research emphasized the need for comprehensive national strategies with targeted interventions to support refugee children’s educational needs. Inclusive education practices can improve the prospects of displaced children and strengthen the social fabric of host countries.
A Holistic Approach to Economic Inclusion
The insights from these projects show that economic inclusion involves more than financial support. Addressing the psychosocial well-being, social cohesion, and educational inclusion of refugees requires a holistic approach that considers their diverse needs. The evidence from KCP-supported projects provides policymakers with a robust foundation for designing inclusive, context-specific interventions that promote resilience and self-reliance.
Looking ahead, research-backed strategies will be essential for addressing the complex challenges facing refugees in fragile contexts. By leveraging insights from these research projects, we can build a more inclusive world where displaced populations have the opportunity, not only to survive, but to thrive.
The authors would like to acknowledge contributions from the following projects under the guidance of task team leads (TTLs): The Household at Work: A Field Experiment in the Rohingya Refugee Camps (TTL: Erin Kelley); Livelihoods Support for Displaced Persons and Host Populations in a Fragile Context—Impact Evaluation for the World Bank-Funded Niger Refugees and Host Communities Support Project (PARCA) (TTL: Chloë Fernandez); Protecting Human Capital during Episodes of Forced Displacement: Learning from Ukrainian Refugees in Italy (TTL:Quy-Toan Do)
Learn More:
For further details on the impact of the Niger Refugees and Host Communities Support Project, access the full report here.
Explore additional insights from the Household at Work project in the Rohingya refugee camps through the working paper here.
To read more about the KCP, visit: https://www.worldbank.org/en/programs/knowledge-for-change
Read more KCP result stories in the KCP Annual Report
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