Question

Rwanda crisis

• Economic - in this section, you will need to include information about what jobs support the refugee home country’s economy. Is the increase in refugees depleting or negatively affecting the labor pool? Could it affect the economic health of that country in the future? If the refugees flee to neighboring countries, what affect does the influx of refugees have on their economy? Can refugees legally work in host countries? If they are in a refugee camp, what sort of economic activity exists? Can they barter ration cards for other things, etc. What is the potential economic impact on not resolving the refugee crisis?

Answer 1

Many countries have a view point is that inflow of refugee will be a burden for their country, but in my opinion refugees will be an asset for a country. Human resources is the highest resources for any country. Utilising these refugees wisely, it will help to develop economy. However, to maximizing their contribution, refugees need to have formal labour market access. But refugees have a limited access on formal labour market. Even though law support refugees to access formal labour market, administrative and practical barriers often limit access. Some of the reason behind limit access is nsubstantiated belief that refugees
inevitably drive down wages, take jobs from hosts, and
reduce the quality of services.

Many research found that, average effect on economy of refugee inflow to a hosting country is minor or null. Some studies proved that there will be a minor negative effect on employment and wages for both developing and developed countries. But these negative impact is for short run. In long run these negative effect will disappear and may even translate into positive effects. And in some case there will be no negative impact on economy even in short run. It's commonly varied impact on the basis of gender etc.

The fiscal effect on economy due to the inflow of refugee are minor in short term and it will turn to positive overtime. one of the most important
determinants of refugees’ fiscal effects is the degree
to which they succeed and remain in the labor market.
This, in turn, is determined by how quickly refugees are allowed to access the labor market following their arrival, and their skills, education level, language ability,and age. Thus, depending on context, it maybe take refugees more or less time to become net contributors. But the greater their LMA, the sooner they should become net contributors.

Refugees should grant legally right for works. Denying refugees the right to work forces them to sacrifice economic independence and rely on handouts for survival. As a result, refugees endure isolation, loss of confidence and erosion of skills. Without a job or income, refugees are forced to subsist as the underclass and stay dependent on social welfare, even though most are capable and eager to support themselves.