A Triple Win: Fiscal and Welfare Benefits of Economic Participation by Syrian Refugees in Jordan

Economic inclusion improves refugee financial autonomy and reduces the need for humanitarian assistance. It thus leads to savings that can be invested in Jordan's development. A Triple Win considers Syrian refugees in Jordan. The analysis reports how deprivation among Syrian refugees is elevated, even more so for refugees living in host communities. This presents a puzzle, given that 80 percent of refugees opt to live outside camps, even though they are at liberty to remain in camps. Why do people voluntarily expose themselves to a higher risk of poverty? The volume finds an answer in the desire of refugees for freedom and autonomy. A Triple Win then turns to humanitarian assistance provided to Syrian refugees. Aid is found to be important in reducing refugee poverty, but at the same time, insufficient, because poverty levels remain high. After considering scope for efficiency gains, the conclusion is that at current levels of assistance, it will not be possible to lift all Syrian refugees out of poverty unless another solution is found. Increasing the financial autonomy of refugees is such a solution. Unfortunately, the access of Syrian refugees to Jordan's labor market is constrained. Those who work are relegated to less remunerative jobs, often in the informal sector. Despite these constraints, the incomes earned by refugees exceed assistance received by a factor two. It is then shown how refugee economic inclusion already reduces the need for assistance by USD 850 million per year. This would increase to USD 1.2 billion per year if refugees were fully integrated in the labor market. Such savings could be reinvested to the benefit of hosting communities. This then defines the scope for the triple win, one in which refugees gain financial autonomy, financial donors spend less on humanitarian aid, and Jordan receives more financing for its development endeavors.