Selected Policy Works 

The economics of winning hearts and minds: Programming recovery in Eastern Ukraine

Since 2014, the armed conflict in Ukraine’s eastern provinces (oblasts) of Donetsk and Luhansk has dealt a heavy blow to people’s lives. The conflict has magnified the long-standing problems and created new ones. 

This study shows that scaling up efforts in the government-controlled areas (GCAs) of Donbas is desirable despite the subdued productivity in the region. This study recommends a decision tree approach to programming recovery in Donbas. Given the looming uncertainties and scenario-sensitivity of optimal policies, the recovery strategy should distinguish contingent policies from no-regret policies. 

Contingent policies change between the status quo and the reintegration scenarios, and they include interventions to mitigate conflict-related risks, risk-related transfers to address skill-shortages in GCAs, and investments for a contingent infrastructure strategy. By comparison, no-regret policies are desirable regardless of the conflict dynamics. They include the reforms to eliminate regulatory burdens and corruption; policies to open up the housing market; investments to modernize education for jobs and target low-hanging fruits in infrastructure; and efforts to produce better data to address knowledge gaps. 

The fallout of war

The Mashreq region has seen more than its share of deaths, economic losses, and instability for the last decade. The region has braved massive economic and social shocks that would challenge even the most advanced economies in the world. The conflict in Syria has contributed to the region’s challenges, but the region’s problems have other causes, too. As countries in the Mashreq look toward recovery, a new  approach is needed that not only accounts of the region’s interconnectedness but also  seeks to build on it in order to provide better prospects for people across  the Mashreq region. Adopting such an approach will require a scaled-up international effort. 

The Fallout of War: The Regional Consequences of the Conflict in Syria identifies the impact of the Syrian conflict on economic and social outcomes in Iraq, Jordan, and Lebanon. It combines a large number of data sources, statistical approaches, and a suite of economic models the isolate the specific impact of the Syrian conflict among numerous global and regional factors that contributed to the economic and regional trends in the last decade. 

NEWS and REMARKS: Prime Minister of Lebanon, European Commissioner for Enlargement and Neighbourhood, Jordan's Minister of Planning, The National, Arab News, France 24 (French), MTV (Arabic)

The mobility of displaced Syrians

This report identifies key factors weighing on Syrian refugees contemplating a return home and analyzes how changing conditions in Syria might affect their decisions. It analyzes the voluntary return of 103,090 Syrian refugees to determine the key factors that influenced their decisions. This group of refugees, who returned between 2015 and 2018, were compared with millions of others in Iraq, Jordan and Lebanon who chose not to return by using various statistical techniques including machine-learning. The results were compared with other refugee situations around the globe, ranging from Iraqi refugees in pre-war Syria, to the Balkans, and Somali refugees in Kenya.

This analytical approach allowed for a better understanding of the complex set factors that refugees must navigate as they consider a return home. Building on this understanding and recognizing that returns that have taken place so far may not be the same as future returns, the report also employs simulations to generate scenarios of security and service restoration in Syria and how that would influence spontaneous returns. Overall, the extensive analysis of data, review of international experience, and forward-looking simulations allowed for a comprehensive, evidence-based study of the return patterns of Syrian refugees. 

MEDIA: Marketplace Morning Report of BBC/NPR, Middle East Institute Event, The Economist, Voice of America (in Turkish)

The toll of war

This report studies the economic and social impact of the armed conflict in Syria. Bringing together conflict-driven loss of lives, forced displacement, physical damages in capital, and overall economic collapse, it takes stock of the consequences brought about by one of the most brutal conflicts of our time. The analysis extends our understanding of the Syrian conflict by focusing on the distinct roles played by physical destruction, casualties, and disruptions in economic organization in driving the economic and social impact of the conflict. Although visual effects, such as physical destruction, are more often noticed, the “invisible” effects, such as disruptions in economic networks, increased rent seeking, and the erosion of social trust, play a greater role in explaining the collapse in economic activity. The persistence of economic effects also differs across various channels. The economic impact of conflict-related casualties is much more persistent than that of other channels. As this report was written, the Syrian conflict was ongoing in its sixth year. The report suggests that the longer the conflict lasts, the slower and more difficult the post-conflict recovery will be. 

MEDIA: Wall Street Journal, New York Times, Der Spiegel, Le Monde, CNN (in Arabic), Sputnik News, Al-Monitor

The economics of hosting refugees

In 1991, thousands of South Sudanese boys walked into Kenya. Having fled war in their own countries, about 20 thousand of these "lost boys" first tried taking refuge in Ethiopia. With no real options to stay, many were killed on their walk back to South Sudan or while attempting to swim the crocodile infested River Gilo, before entering Kenya. Between 7 thousand and 10 thousand were estimated to have made it alive to Kenya at that time, with no possessions besides the clothes on their back. The arrival of these "lost boys" eventually transformed how the Kenyan Government approached the issue of refugees. The Government had allowed for the integration of arriving refugees into the Kenyan population up until that point. The arrival of these "lost boys" marked the beginning of the encampment strategy in Kenya. From that point onwards, the refugee screening process was turned over from the Kenyan government to the United Nations High Commission for Refugess (UNHCR) . The boys were initially housed in a temporary camp located closer to the Sudanese border, in the town of Lokichogio. In June of 1002, the camp was relocated farther south to Kakuma Town, in the central Turkana region, where it has remained since. Flash-forward 35 years, with more than 180 thousand refuges, the Kakuma Refugee Camp stands as one of the largest urban settlements on the plains of Turkana. The camp currently houses individuals from different nationalities, primarily Sudanese, Somalis and Ethiopians. There is a significant internal economy of goods and services, bolstered by the goods (especially food) and public services provided by international organizations. 

Yes in my backyard? The economics of refugees and their social dynamics in Kakuma, Kenya

This report comes at a crucial time when the unprecedented global refugee crisis, most notably in Europe and the Mediterranean, has not only focused the world’s attention on the plight of refugees, but has also led to the politicization of refugee influxes. With an average of 24 people worldwide being displaced from their homes every minute of every day (UNHCR 2016), the debate surrounding the refugee crises is on the minds of many, ranging from governments and policy-makers to citizens, refugees, and host communities alike. Worldwide displacement is currently at an all-time high as war and persecution increase; one in every 113 people is now either a refugee, internally displaced, or seeking asylum (UNHCR 2016). In the past five years, at least 15 conflicts have erupted or reignited, and while protracted and harrowing wars have broken out in the Middle East, eight of these conflicts have been in Africa (Cote d’Ivoire, Central African Republic, Libya, Mali, Northeastern Nigeria, Democratic Republic of Congo, South Sudan, and Burundi) (UNHCR 2015). To compound matters, developing countries such as Lebanon, Jordan, Ethiopia, and Kenya are now hosting the largest share of refugees: they are home to nearly 90 percent of the world’s refugees (UNHCR 2016). This report, which provides an original analysis of the economic and social impact of refugees in Kenya’s Kakuma refugee camp on their Turkana hosts, therefore comes at an opportune time and could resonate with governments and policy makers beyond Kenya’s borders. In particular, the methodology authors have developed enables us to run policy scenarios in a rigorous manner, ranging from encampment to decampment (i.e. camp closure) scenarios, and the potential to apply this methodology in other refugee situations around the world is particularly advantageous.