The Road to Refugee Self-Reliance: How Poverty Lines Help Define Independence

The article explores a new approach to measuring refugee self-reliance based on the report Using Poverty Lines to Measure Refugee Self-Reliance by Johannes Hoogeveen and Robert Hopper. It advocates for measuring refugee independence through income generation, moving away from traditional models that rely on aid. The report highlights how middle-income countries and urban refugees achieve higher levels of self-reliance, while an inverse relationship exists between aid and refugee independence. The piece suggests reallocating aid to support regions that promote refugee self-reliance, benefiting both refugees and host communities.

In a world where over 36 million refugees face displacement, the question of how to support them sustainably becomes increasingly urgent. Humanitarian models have traditionally relied on providing aid—food, shelter, and basic services—to ease immediate suffering. But as refugee crises linger, long-term solutions become more necessary. A recent report by Johannes Hoogeveen and Robert Hopper, Using Poverty Lines to Measure Refugee Self-Reliance (World Bank, 2024), offers a compelling new way to measure refugee independence: through income. Their approach challenges the idea that aid alone can empower refugees, proposing a shift in how we measure success in refugee assistance.

Defining Self-Reliance: Beyond Humanitarian Aid

The core of Hoogeveen and Hopper’s argument is simple: self-reliance should be measured by whether a refugee earns enough income to live above the poverty line in their local context. This marks a departure from traditional models, where success has often been measured by how much aid a refugee receives.

Why the change? Over time, reliance on aid can inhibit refugees from achieving long-term stability. Aid, while critical in emergency phases, can become a trap if sustained over long periods. Refugees often face restrictions on their movement and ability to work, making them dependent on humanitarian support. The authors argue that for refugees to become self-reliant, they must be able to generate enough income to meet basic needs independently of external assistance.

The idea is not just theoretical. The authors backed their findings with data from 11 consumption surveys conducted in countries with significant refugee populations. These surveys paint a stark picture of the current state of refugee self-reliance: refugees in middle-income countries fare better, while those in low-income nations struggle more. Urban refugees, particularly those living outside of camps, tend to achieve higher levels of self-reliance compared to those in rural or camp settings. This disparity underscores a need for policies that promote economic opportunities for refugees, particularly in urban areas where jobs are more readily available.

The Inverse Relationship Between Aid and Self-Reliance

One of the more surprising findings in the report is the inverse correlation between aid and self-reliance. In environments where refugees are least able to generate income—such as low-income countries or isolated camps—aid levels are often the highest. Conversely, in urban settings where refugees have better access to jobs, aid levels tend to be lower. This suggests that aid is compensating for a lack of economic opportunities, rather than fostering true self-reliance.

The report calls this a "perverse incentive." By channeling more aid into areas where self-reliance is unlikely, humanitarian efforts may unintentionally prolong dependency. A rethinking of how aid is distributed could encourage policies that help refugees gain the skills and access needed to earn their incomes. Governments that facilitate refugee self-reliance, for instance by granting work permits or improving job access, could receive more international aid as a reward for creating opportunities for financial independence.

Policy Implications: Reallocating Aid for Greater Impact

Hoogeveen and Hopper’s report suggests a fundamental shift in how we view and allocate aid. Rather than pumping resources into areas where refugees are unlikely to become self-reliant, it would make more sense to invest in regions or policies that promote refugee income generation. Host countries that remove labor market restrictions, or encourage refugees to integrate into the workforce, should be rewarded with more financial support.

This approach is not only beneficial for the refugees themselves but also for host communities. The report highlights that many host country citizens, especially in poorer nations, suffer from poverty themselves. Policies that promote refugee self-reliance can alleviate pressure on aid systems, allowing for more resources to be invested in both refugees and the host population.

Furthermore, urban areas, where economic opportunities are greater, should become focal points for refugee resettlement. Governments could partner with international organizations to develop programs that integrate refugees into local economies, whether through job training, education, or entrepreneurship initiatives. Urban refugees have already shown higher levels of self-reliance, so scaling up such programs could lead to sustainable outcomes for both refugees and their host communities.

Income as the Key to Refugee Independence

At the heart of this shift is the recognition that economic independence is crucial to human dignity. As the report concludes, “being able to sustain oneself through self-earned income is critical to a dignified life.” The authors emphasize that aid, while vital in times of crisis, should be seen as a stepping stone to self-reliance, not an end in itself. The ultimate goal should be for refugees to gain the skills, opportunities, and access necessary to live above the poverty line without aid.

By using poverty lines as a benchmark, Hoogeveen and Hopper have provided a clear, measurable way to assess refugee self-reliance. Their report urges a reconsideration of how aid is distributed and calls for more policies aimed at fostering refugee economic autonomy. If adopted, this approach could transform the future of refugee assistance, creating more sustainable outcomes for refugees and their host communities alike.