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Refugees contribute to economic growth

Research has proven that refugees do not become a burden for a country that had given them shelters.

On the contrary, the money provided to them as an assistance can give a powerful impetus to the economy, concluded the American scientists, reported Lenta. The researchers studied the impact of three Congolese camps in Rwanda on the economy of the country. In two camps the refugees received assistance in cash, whereas in the third camp they receive the assistance in the form of food.

The economists evaluated the impact of the camps on the surrounding areas (ten kilometers in radius). It turned out that each new refugee arrival (who receives $120 per year) increased the income of the population by 60-90 percent ($200-250) . Such an increase is determined by purchasing local goods and services by refugees. The refugees were the main customers of 17.3 % of private entrepreneurs.

Moreover, the economic "bonuses" were sensible throughout the country as well . It turned out that each refugee from a camp increased the trade volume by 49-55 dollars in that province as compared to other districts of Rwanda.

At the same time, the impact of the third camp on the economy where the refugees were provided with food, was considerably weaker. 89 percent of the refugees sold in the markets products they had received (corn, bean, vegetable oil, and salt), to purchase other foods. However, it increased the supply in the grocery markets. Moreover, the local food manufacturers had to compete with the refugees who supplied cheaper food in the market. In total, the "bonus" per refugee made $ 145 only.

The head of the research group Edward Taylor summarizes that if the refugees have a possibility to interact with the local economy, they will significantly increase the income level.


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