International donors seek new ideas for refugee crisis

Friday 20/11/2015
World Bank Director for the Middle East Ferid Belhaj.

Amman - Bold new ideas for helping Syrian refugees and their overburdened Middle Eastern host countries are gaining traction among international donors, shocked into action by the migration of hundreds of thousands of desperate Syrians to Europe.
Rather than struggling to gather humanitarian aid for refugees, the plans centre on investing billions of dollars, much of it to be raised on financial markets. The money would go for development in coun­tries such as Jordan and Lebanon to improve lives for their own popula­tions and refugees.
More controversial is a demand by some in the aid community that, in return for such a “Mideast Marshall Plan”, Jordan and Lebanon must allow Syrian refugees to work, in­tegrating them more into society. The host countries, however, point to high domestic unemployment in arguing they cannot put large num­bers of refugees to work legally.
“We need to be ambitious,” the Middle East Director of the World Bank Ferid Belhaj said. “Develop­ment is the key.”
The need for alternative plans may have become more urgent, with the Paris terror attacks further heat­ing the debate over Europe’s immi­gration policy. A Syrian passport, processed in Greece and registered in the Balkan countries, was found near one of the Paris suicide bomb­ers, raising the possibility that at least one of the assailants crossed into Europe with refugees fleeing Syria.
The mass influx of Syrians to Eu­rope has been driven by increasing­ly unbearable conditions in Jordan, Iraq, Turkey and Lebanon. That has drawn attention to long-ignored warnings that the traditional aid ap­proach has fallen short in the most devastating refugee crisis in a gen­eration, said Belhaj and others.
Under the traditional approach, the United Nations and other inter­national agencies are the main pil­lars of care for refugees, either by financing camps to house them or by providing them food aid and stipends to live off of.
But donor funds are waning as the Syrian refugee crisis drags on with no end in sight. The appeal of $4.5 billion for more than 4 mil­lion refugees and host nations is less than half funded. Aid agencies have been forced to cut back drastically on food and cash assis­tance.
A group of seven international aid groups, led by the Norwegian Refugee Council, called for a “new deal” between donors and hosts. It would entail a massive interna­tional investment plan in return for the host countries allowing refugees to work, giving them the chance to support themselves.
Aid programmes are “going no­where at the moment”, Jan Ege­land, head of the Norwegian Refu­gee Council, said recently. “The only thing we have is a half-hearted emergency relief plan that is not nearly enough to meet the needs of the refugees.”
Under the proposal, the refugee host governments “say, ‘Yes you can work. Yes, you can contribute to our economy as we also get our own population into this Marshall Plan of reconstruction’,” said Egeland, a former UN emergency relief coordi­nator.
Separately, the World Bank is work­ing to raise billions of dollars for large-scale investments. The plan aims to help host countries build infrastructure, right their economies and deal with the steep costs from the refugee popu­lation. Eventually, it would expand to rebuild war-stricken Syria, Libya and Yemen. The bank estimates it will cost $170 billion over ten years to rebuild Syria and another $100 billion to rebuild Libya.
“Frankly, those amounts… are not available in terms of grant money today,” Belhaj said.
Instead, large sums would be raised on financial markets. The World Bank would issue special bonds guaranteed by donors. Host countries would be able to borrow large sums from the bank, with do­nors paying most or all of the inter­est.
Jordan and Lebanon say they need massive aid to build schools and new housing and overhaul dilapidated water and electricity systems, all overwhelmed by their increased population. Lebanon, a country of 4 million citizens, has more than 1 million refugees. Jor­dan, with 6.4 million citizens, has more than 600,000 refugees.
Belhaj said “one needs to find creative ways to make sure these refugees get access to economic ac­tivity” in coordination with the host countries.
But, he said, it’s not realistic to impose the condition that the hosts allow Syrian refugees to work. Forc­ing the countries to absorb them into the job market before develop­ment money starts to work would be too much, he said.
“We cannot impose anything,” he said.
Egeland argued that the trade-off must be spelled out from the start.
“The host governments are scared, really… They are afraid to take (refugees) into their economy, which I think is wrong,” he said. “They could contribute to economic growth and job creation if there is international investment in parallel.”
Jordan has seen frictions between poor Jordanians and Syrian refugees who compete for scarce resources. Syrians working illegally in con­struction, agriculture and other sec­tors have pushed down wages, while rents in poor neighbourhoods have risen sharply as refugees flooded in.
The World Bank plans were pro­posed in October in Lima, Peru, at­tended by the UN chief, top World Bank officials and representatives of the Islamic Development Bank.
Details are to be worked out by early 2016, said Belhaj. “There was very broad support for those initia­tives… especially on the ones relat­ed to the refugees.”
The Syria refugee crisiss was also a central issue at the Group of 20 sum­mit in Turkey. Groups represent­ing business, civil society, labour, women and youth called on the G20 leaders to support development programmes in Lebanon, Jordan, Iraq and Turkey. In a statement, the groups said the G20 must go “be­yond the provision of humanitarian assistance to include medium- to long-term economic support” for refugees and host countries.
The refugees’ exodus to Europe could serve as a catalyst for change, Egeland said.
“They want to be close to their homes,” he said of the refugees. “But today, we only provide them (with) desperate choices. No work, no future, no family, no hope here. That is not enough. Invest in hope for them, invest in development, in­vest in work.”