Economic Research Forum (ERF)

Host and refugee populations: cooperation in a fragmented society

1344
Lebanon is currently hosting around one million refugees from the war in Syria – and given longstanding tensions between the two countries, the question of whether the refugees and their hosts can live harmoniously is one of great policy interest. This column reports the results of a pilot study that aims to measure cooperation between the native and refugee populations.

In a nutshell

There is evidence that Lebanon’s host population is less willing to contribute to the public good when sharing with refugees.

Lack of cooperation between natives and refugees could be a barrier to the objective of ensuring a decent living for displaced populations in their host communities.

Interventions aimed at increasing trust and cooperation between hosts and refugees would help to reduce ‘own-group biases’ and increase public good provision, thus improving the wellbeing of both refugees and their host communities.

In 2018, the global population of forcibly displaced people stood at a record high 70.8 million, according to the United Nations refugee agency (UNHCR, 2018). Syrians continued to be the largest forcibly displaced population, with 13 million people displaced, including 6.7 million refugees, the majority of whom are hosted by neighbouring countries.

Lebanon is one of the largest hosts of refugees from the conflict, with almost one million Syrians in 2018, making it the country with the highest density of refugees in the world.

The relationship between Lebanon and Syria has always been very strained. Thus, an important issue is whether, given the conflict and the displacement of Syrians, these two populations will cooperate. With many other populations around the world becoming displaced and hosted in potentially unwelcoming communities, this question is also of wider relevance.

We recently carried out a pilot study in Lebanon with Syrian refugees and Lebanese nationals to measure cooperation between the two groups. Participants were randomly assigned to Lebanese-only, Syrian-only or mixed groups, and they then played six rounds of a ‘public good game’ in randomly formed pairs (Drouvelis et al, 2019).

Public good games are used by economists and other social scientists to understand the behaviour of a group of individuals that are working towards a common goal while facing a social dilemma. In a public good game, participants are given a number of tokens and are asked to either keep them or invest them in a common account. The amount that gets invested in the common account is then shared equally among members of the group.

The group’s total payoff is maximised when everyone invests in the common account, but individually each member is better off keeping their tokens. This is the nature of the social dilemma that they face.

We used subtle differences in spoken Arabic to make salient the composition of the groups’ nationality to participants at the beginning of each session. Our main interest lay in the levels of cooperation that are sustained across and within the two groups and the extent to which individuals penalise others to enforce cooperation.

We find that, on average, contributions to the public good are significantly higher in homogeneous groups compared with mixed groups, suggesting a stronger ‘in-group’ versus ‘out-group’ cooperation effect. This result is driven by the hosts (Lebanese participants) who exhibit a stronger tendency to reduce contributions when in a mixed group. We also find a substantial degree of antisocial penalties, especially in Lebanese-only groups.

Moreover, our results show that for the Lebanese hosts, although as expected there is greater cooperation and reciprocity towards their own group, there is also a lower willingness to punish out-group defectors and even evidence of an inclination to punish in-group cooperators.

Overall, our findings indicate that mixing of the two groups leads to deterioration of the public good and makes individuals worse off.

Our study suggests that lack of cooperation between natives and refugees could be a barrier to the efforts of all those who are striving to ensure a decent living for displaced populations in host communities, and an important challenge faced by societies experiencing a large influx of refugees.

This highlights the challenge in many countries hosting refugees, where the host population feels anxious about competition in the labour market and congestion in public services. In some cases, there may be lack of support from hosts and, as a result, they might behave in an anti-social manner towards refugees.

Hence, it is important not only to support refugees in their protracted displacement but also to provide adequate help to the host communities to alleviate any economic and social pressures. Furthermore, interventions aimed at increasing intergroup trust and cooperation would help to reduce ‘own-group’ biases and increase public good provision, which are important for the wellbeing of both refugees and their host communities.

 Further reading

 Drouvelis, Michalis, Bilal Malaeb, Michael Vlassopoulos and Jackline Wahba (2019) ‘Cooperation in a Fragmented Society: Experimental Evidence on Syrian Refugees and Natives in Lebanon’, IZA DP 12858.

UNHCR, United Nations Higher Commissioner for Refugees (2018) Global Trends: Forced Displacement in 2018.

 

 

 

 

Most read

Egypt’s labour market: new survey data for evidence-based decision-making

As Egypt faces substantial social and economic shifts, understanding the labour market is crucial for designing policies that promote employment and inclusive economic growth. This column introduces the latest wave of the Egypt Labor Market Panel Survey, which provides fresh, nationally representative data that are vital for examining these dynamics.

The evolution of labour supply in Egypt

Egypt stands at a critical point in its demographic and labour market evolution. As this column explains, while fertility rates have dropped, reducing long-term demographic pressures, the ‘echo generation’, children of the youth bulge, will soon enter the labour market, intensifying the need for policies to accelerate job creation. At the same time, participation in the labour force, particularly among women and young people, is declining, partly as a result of discouragement.

Towards a productive, inclusive and green economy in MENA

Decarbonisation of the global economy is a huge opportunity for countries in the Middle East and North Africa. As this column explains, they can supercharge their development by breaking into fast-growing industries that will help the world to reduce its emissions and reach net zero, as well as offering greater employment opportunities and new export lines. Micro, small and medium enterprises in the region can lead the transition to a cleaner and sustainable future, but this may require the formation of clusters of firms that overcome some of the constraints that their limited size could involve.

Participation of Arab countries in global value chains

To what extent are countries in the Arab region participating in the global value chains (GVCs) that now dominate world trade? What are the main determinants of engagement in GVCs? And what are the expected benefits for Arab countries from joining them? This column answers these questions, concluding that it is important to focus on the products in which countries both enjoy a natural comparative advantage and can increase domestic value added in the intermediate and final parts of the production process.

Climate change: a growing threat to sustainable development in Tunisia

Tunisia’s vulnerability to extreme weather events is intensifying, placing immense pressure on vital sectors such as agriculture, energy and water resources, exacerbating inequalities and hindering social progress. This column explores the economic impacts of climate change on the country, its implications for achieving the sustainable development goals, and the urgent need for adaptive strategies and policy interventions.

Growth in the Middle East and North Africa

What is the economic outlook for the Middle East and North Africa? How is the current conflict centred in Gaza affecting economies in the region? What are the potential long-term effects of conflict on development? And which strategies can MENA countries adopt to accelerate economic growth? This column outlines the findings in the World Bank’s latest half-yearly MENA Economic Update, which answers these questions and more.

Assessing Jordan’s progress on the sustainable development goals

Global, regional and national assessments of countries’ progress towards reaching the sustainable development goals do not always tell the same story. This column examines the case of Jordan, which is among the world’s leaders in statistical performance on the SDGs.

Rising influence: women’s empowerment within Arab households

In 2016 and again in 2022, a reliable poll of public opinion in the Arab world asked respondents in seven countries whether they agreed with the statement that ‘a man should have final say in all decisions concerning the family’. As this column reports, the changing balance of responses between the two surveys gives an indication of whether there been progress in the distribution of decision-making within households towards greater empowerment of women.

Unleashing the potential of Egyptian exports for sustainable development

Despite several waves of trade liberalisation, Egypt’s integration in the world economy has remained modest. In addition, the structure of its exports has not changed and remains largely dominated by traditional products. This column argues that the government should develop a new export strategy that is forward-looking by taking account not only of the country’s comparative advantage, but also how global demand evolves. The strategy should also be more inclusive and more supportive of sustainable development.

International and regional financial integration in MENA

What are the effects of financial integration at both the regional and international level on the domestic economies of the Middle East and North Africa? This column summarises new research evidence on this question. The results suggest that while regional financial integration offers substantial benefits, ‘too much’ international integration could hinder financial development.