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Refugees Have a Negative Effect on the Economy of the Country

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    Nowadays one of the major problems in the world is the growing number of refugees and asylum seekers. Refugees are people who have been forced to leave their home country for fear of persecution for reasons of race, religion, politics, civil war or due to environmental disasters. Almost since time began, the human race has had problems when the situation in their area has changed for the worse, and they have had to make tough decisions about where they should go. This essay will look at few important reasons that refugees can negatively impact on the economy of the country. The world is observing the World Refugee Day today.

    The definition of the word refugee is sometimes expanded to include that people fleeing war or other armed conflict. Generally, it is because of political conflicts, war, violence, persecution, torture – that drives people to leave their homes. We see that from year to year the number of refugees increases. And it is the fact that from 2010 to 2012 in USA the number of refugees increases from 70. 000 to 15 millions. And the USA is the largest and most generous country of opportunity for refugees. The highest refugee concentrations are in some of the poorest countries in the world.

    A large number of such movements are into Least Developed Countries. Vecente Guterres, who is Indian economist, reminds that 80 per cent of world’s refugees live in developing countries. The presence of refugees compounds the already prevailing economic, environmental, social and, sometimes, political difficulties in these countries. Often such countries are confronted by a combination of all four of these factors. Nearly always their impact is distinguished. Moreover, in many refugee situations problems are deteriorating when refugees are a substantial proportion of the local, if not national population.

    For example, in Nepal in the district of Jhapa, 90. 000 refugees represent over 13 per cent of the local population. In the United Republic of Tanzania were some 700. 000 refugees among a local population of 186. 000. In Malawi, a refugee influx which began in 1986, had led, by 1993, to one million Mozambican refugees in the country, some 10 per cent of the national population. “Where refugees live, there is no future…” said Lee Weiner 1. I think that is really true, because the presence of refugees and asylum seekers greatly affects to the economy of the country, services and infrastructure which are affecting the local population.

    In many cases, refugees become an added impediment to or risk of damage, the development efforts of the host country. Their negative aspects may be felt long after a refugee problem is solved. For example, the damage to environment is a process and does not end with the homecoming of refugees. While the international emergency aid in response to such an emergency does have some positive effects on the host society, this hardly compensates for the negative consequences of such large number of refugees.

    Over time, presence of refugees leads to more important demands on natural resources, education and health facilities, energy, transportation, social services and employment. They may cause inflationary pressures on prices and depress wages. Increased construction activity results, but this is usually accompanied by increases in price of place where you live benefiting those who are property owners, but adversely affecting the poor and those on fixed incomes such as government officers. Purchase of large quantities of building material may make them scarce or unobtainable for local people while also generating inflationary effects.

    Likewise, increased demand for food and other products can lead to price rises in the market which will stimulate local economic activity although again not benefiting the poorest. “Refugees are safe but they are not in their homes. They are city-less. I think it’s just a disaster for everyone” said Teri Lynn Hatcher 2. The economic impact of refugees on host areas, however, is not necessarily negative. An economic stimulus may be generated by the presence of refugees and can lead to the opening and development of the host regions.

    I am absolutely agree with Teri Lynn Hatcher, because even it is recognized that there may be some “positive” aspects to the impact of a refugee influx on the economic life of a host country, the large-scale presence of refugees invariably constitutes a heavy burden for receiving countries, particularly for Least Developed Countries. In my conclusion I would like to state my point that refugees are really negatively influence for human’s society and economy of the country, especially for the last one, because numbers of refugees received high point particular in developing countries with limited resources.

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