Micro-finance in refugee contexts: current scholarship and research gaps

Strengthening refugees’ livelihoods and supporting their economic self-reliance is one of the most pressing and daunting challenges in the forced migration arena.

The livelihood of refugees needs to be strengthened to help them gain economic independence. This is one of the most daunting challenges that every country in the world is currently facing. The refugees often see themselves displaced from their current workforce to face an uncertain one with the place of asylum having its look at work requirements. Refugees end up becoming entrepreneurs, which are already a problematic reality if we ask the government individuals whose main goal is to follow bureaucratic red tape than to create jobs for refugees.

However, it may not be surprising to note that most of the government asylums are already swamped with domestic issues than international ones. This means that financial assets require citizenship over and above anything else.

In a recent proclamation by the United Nations High Commissioner for Refugees recognized the need for financial capital access as a vital element in the pursuit of self-reliance of refugees. The crucial role of moneylenders, banking systems, and financial systems of most countries are not open towards individuals that they have no idea about. Who are these refugees? What do they do in their country? The method of self-reliance is needed mostly because of the lack of mainstream financial services. But there is no one to blame since even citizens take a lot of time to be approved to financial aid.

Displaced populations, however, have a different set of needs. And it needs to begin with a sense of empowerment to create their income without the need of engaging a lending service.

The UN refugee agency wants to focus more on microfinance activities that would provide a comprehensive livelihood to those who want to have a strategy that works.

The activities involving micro-finance and reduction of poverty provides an amazing tapestry of knowledge for those who want to take the form of the best possible practices available for the implementation and assessment of activities that focus on micro-credit. Being able to develop successful activities and interventions are necessary to reflect on the characteristics and situations of the population.

In a more international context, it is clear that there is already a well-developed system that focuses on the success and failure of financial programs. There is no surprise that studies have already been conducted to develop and create such a good source of information.

Unfortunately, even with the widespread use of financial studies and financial terminology, it is clear that the actual conditions vary. To be able to form the right kind of entrepreneurs successfully, enterprises need a certain level of expertise on the subject matter.

On the basis of this background and the realities that come with the complex point of view, this study aims to look at the existing literature on the use of micro-finance that aim to ensure that protection and financial assistance given to refugee populations while at the same time looking at the possible repercussions of the lack of aid and support.

The author has looked at forced migration over the recent years and have enhanced skills in evaluating microfinance programs. This paper aims to provide a more personal background on the situation with a professional analysis.