Forced Displacement

Forced displacement is a development challenge, not only a humanitarian concern. Around 76% of refugees are displaced for more than five years, and the vast majority of the world’s refugees and internally displaced people live in developing countries (four out of five.) As part of a global effort, the World Bank Group is focused on addressing longer term, social and economic challenges that will help both the displaced and their hosts.  

Forced displacement: Humanitarian crisis, development challenge

A surge in violent conflict since 2010 has led to historically high levels of forced displacement. More recently, the war in Ukraine has caused the fastest-growing refugee crisis in Europe since the end of World War II. Globally, there are more than 100 million forcibly displaced people including refugees, internally displaced persons and asylum seekers who have fled their homes to escape violence, conflict and persecution. 

The hardships they endure through their displacement make these people vulnerable. They lose assets and livelihoods and are unable to plan their future. Many suffer from trauma, and women and girls are at high risk of gender-based violence. They need help to regain their agency and begin rebuilding their lives.

Host communities need support, too. The forcibly displaced often live in poor areas in developing countries that are struggling to meet their own development goals. Accommodating the sudden arrival of masses of newcomers presents a challenge for host governments, putting further pressure on their ability to deliver basic services and infrastructure. 

This is why forced displacement is not only a humanitarian crisis, it is a development challenge as well. Today, displacement situations are becoming increasingly protracted, and close to 16 million people are now in exile for over 5 years—the highest since the end of the Cold War—underscoring the need for a more sustainable and efficient way to support both the displaced and their hosts with a longer term perspective.

Many host countries in the developing world are taking the lead to better manage these crises, by including refugees in their country’s development plans and in their health and education systems, for example. The global community is also working to improve the transition between humanitarian and development assistance, aligning these efforts under the  Global Compact on Refugees led by UNHCR.  

The first Global Refugee Forum (GRF) took place in December 2019 to bring the international community together, support implementation of the Global Compact on Refugees and develop a concrete workplan towards the next forum in 2023. At the Forum, the World Bank announced $2.2 billion in support for refugees and host communities as part of the IDA19 replenishment. Two years later, the IDA20 replenishment allocated another $2.4 billion for the same purpose.

Last Updated: Sep 30, 2022

A development approach: Helping the displaced and their hosts

As part of a global effort, the World Bank Group is actively engaged to help better manage the forced displacement crisis, in support of its mission to reduce poverty and contribute to achievement of the Sustainable Development Goals.

The Bank takes a development approach that will:

• complement emergency relief activities
• focus on addressing longer term, social and economic challenges
• benefit both the forcibly displaced and their hosts.

In partnership with UNHCR and other organizations, the Bank works through:

• better data and analytics
• innovative financing
• effective operations on the ground

The IFC (International Finance Corporation) is leading efforts to engage the private sector in supporting refugees and hosts. For example, in Lebanon, Jordan and Turkey, IFC is helping to increase access to finance to micro-borrowers, foster skills training and entrepreneurship, and improve services.  In Kenya, IFC is raising awareness among firms of market opportunities offered by refugees and host communities

To protect the human capital of the most vulnerable groups that are disproportionately affected by the COVID-19 crisis, our emergency response operations include support to refugees and forcibly displaced populations.

In the long term, the Bank Group is putting a stronger focus on prevention and addressing the drivers of conflict to create more stable societies, so that people will not need to flee.

Last Updated: Sep 30, 2022

I. Data and Analytics

Research at the World Bank Group aims to build the evidence base on addressing the social and economic aspects of forced displacement. Better data and analytics will help to inform policies and improve targeting of development programs that can improve the lives of affected people.

Joint UNHCR-World Bank Group Data Center

The World Bank Group and UNHCR have established a Joint Data Center on Forced Displacement. The center focuses on the collection, analysis and dissemination of primary microdata including income, consumption, skills, health status, and economic activities. This builds on collaboration between the two institutions on joint analytical work, joint work with government institutions to expand the collection of microdata; and joint missions to inform Bank Group programming of new resources to address refugee situations. The Center aims to meet the demand for reliable, comparable, and timely data, to enhance decision-making by policymakers and partners and improve the lives of affected people.

Building the Evidence on Forced Displacement:  A Multi-Stakeholder Partnership

A joint partnership program between the UK Foreign, Commonwealth and Development Office (FCDO), the World Bank Group and UNHCR focuses on developing new research on protracted situations of forced displacement. This program generates evidence on what works to ensure future investments are well targeted, prioritized and represent good value for money. Under this partnership, the Gender Dimensions of Forced Displacement Research Program published its findings in January 2022.

Recent World Bank Group Analytical Work:

• A Development Approach to Conflict-Induced Internal Displacement

• Forcibly Displaced: Toward a Development Approach Supporting Refugees, the Internally Displaced, and Their Hosts

• The Mobility of Displaced Syrians: An Economic and Social Analysis

• Migration from Venezuela to Colombia : Short- and Medium-Term Impact and Response Strategy (Español/Spanish)

• Kakuma as a Marketplace

 II. Innovative Financing

For low-income host countries:

The International Development Association, the Bank’s fund for the poorest, is making $2.4 billion available to support refugees and host communities during its 20th replenishment period (July 1, 2022 to June 30, 2025). 

Operations are now under preparation and implementation, with the overarching goal to:

• shift from crisis response to managing risks;

• support host communities and lagging regions;

• move towards social and economic inclusion; and

• take regional and country-level approaches.

For middle-income host countries:

The Global Concessional Financing Facility (GCFF), launched in partnership with the UN and Islamic Development Bank, has provided more than $725 million in grants to unlock almost $5.5 billion in concessional financing for Jordan and Lebanon to help address the influx of Syrian refugees, as well as for Colombia and Ecuador to help address the needs of more than 1.2 million displaced Venezuelans and their host communities, and for Moldova to help address the arrival of refugees from Ukraine.

 III. Operations

Under IDA20, the Window for Host Communities and Refugees (WHR) will finance up to $2.4 billion in operations.

Under previous IDA cycles,  projects to support refugees and their host communities spanned multiple sectors including education, health, social protection, and economic opportunities. 

The World Bank is also part of the Partnership for Improving Prospects for Host Communities and Forcibly Displaced Persons (PROSPECTS) initiated by the Netherlands Ministry of Foreign Affairs. The partnership leverages the comparative advantages of five humanitarian and development agencies (IFC, ILO, UNHCR, UNICEF and the World Bank) to help transform the response to forced displacement crises through global, regional, and country-level programs. The World Bank’s efforts under the PROSPECTS program include over 40 country-level, regional and global activities addressing the challenges of refugee education, protection, employment and livelihoods. 

The Development Response to Displacement Impacts Project

In the Horn of Africa, violence and insecurity are driving refugees to seek safety in neighboring countries across the region, where they live in areas that face significant developmental challenges of their own. The Development Response to Displacement Impacts Project covers 4 host countries — Djibouti, Ethiopia, Kenya, and Uganda — to support a sustainable development response led by local governments in partnership with communities. The project invests in basic social services such as primary education and health care; safe water infrastructure that includes conservation measures to rehabilitate degraded watersheds; and small enterprise and skills-based employment for refugees and host communities. In Ethiopia alone, the project works in numerous areas that host over 800,000 refugees. The goal is to help nearly 1.2 million people covering both host communities and refugees over a five-year period.  

Preliminary project results from Djibouti, Ethiopia and Uganda show a total of 1.9 million people have gained access to social and economic services and infrastructure, of which over 1.2 million are direct beneficiaries of the project; more than half of these beneficiaries are women.

In Ethiopia, through IDA18 Refugee Sub Window funding, the World Bank is financing the Economic Opportunities Program as part of the Jobs Compact. The project supports the government’s approach to longer-term development solutions for refugees, while expanding the creation of jobs and economic opportunities that benefit both Ethiopians and refugees. The program included the passage of the Proclamation, a new law granting more rights to refugees, as one of the project’s effectiveness conditions. The project provided an impetus for the adoption of the Proclamation, which was finally adopted by the government in January 2019.

Last Updated: Sep 30, 2022