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Refugee economics


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I'm starting a thread on the economics of the migrant crisis because that at least is one area where it's possible to push back on fashionable but very wrong beliefs. We have to get the word out on this.

 

The German government's policy on refugees is deeply un-humanitarian. The annual cost of  their 2015 migrant intake alone could have supported around 20m refugees, had they supported them in the normal way via agencies such as the UNHCR. Instead they chose to support just 2.5% of that, around 500K refugees, together with roughly the same number of economic migrants, by resettling them in Europe. Even the 2.5% who were helped are likely to be amongst the least needy refugees, because they were able to pay thousands to the people smugglers.

 

Meanwhile as at 22 March, the UNHCR's budget to support Syrian refugees in the Middle East was about 1/3 underfunded and the overall agency funding for Syrian refugees in the Middle East (because only about 25% of the Syrian refugee aid budget goes through the UNHCR) was at just 31% of budget. http://data.unhcr.org/syrianrefugees/download.php?id=10555. That's the real refugee crisis. Had the German government just funded the relief agencies in the normal way instead of resettling migrants, it could have single-handedly funded all the relief agencies' entire 2016 Syria budgets (total $4.5bn) more than 3 times over for the annual cost of their 2015 migrant intake.

 

A recently published report showed that the cost of resettling refugees in Europe was crowding out billions from foreign aid budgets: Centre for Effective Altruism. Effects of the Refugee Crisis on ODA. . 2016-04-06. URL: https://drive.google.com/a/givingwhatwecan.org/file/d/0B551Ijx9v_RoSG1JS2NlY0J1LWlHTFR0RHMyTXNlMk9sVnlB/Accessed: 2016-04-06. (Archived by WebCite® at http://www.webcitation.org/6gYo5ZeIs)

 

Some details:

 

At the end of 2014 there were an estimated 59.5m refugees and internally displaced persons worldwide http://www.unhcr.org.uk/about-us/key-facts-and-figures.html

 

The UNHCR's annual cost per refugee is around $1K for Syrian refugees http://cis.org/High-Cost-of-Resettling-Middle-Eastern-Refugees#23and around $380 in Kenya http://www.unhcr.org/pages/49e483a16.html. This compares with estimates for resettlement in Germany (from the Deutscher Städtetag and the Institut für Weltwirtschaft Kiel) of EUR13K ($14.5K) per year: Greive, Martin. Flüchtlingskrise kostet bis zu 55 Milliarden Euro im Jahr. Die Welt. 2016-04-06. URL:http://www.welt.de/wirtschaft/article149854636/Fluechtlingskrise-kostet-bis-zu-55-Milliarden-Euro-im-Jahr.html. Accessed: 2016-04-06. (Archived by WebCite® at http://www.webcitation.org/6gYpP7kSm)

 

General information about Syrian refugees from the UNHCR: http://data.unhcr.org/syrianrefugees/regional.php

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There has been chronic underfunding of support to Syrian refugees in the Middle East, while the German and Swedish governments instead pursue poorly targeted and hugely inefficient resettlement programmes. This underfunding, which affects the most needy refugees, could have been cleared completely at a small fraction of the cost of the European resettlement programmes.

Funding raised as a percentage of target for all major agencies helping Syrian refugees in the Middle East
(about 25% of this funding typically goes through UNHCR)

2012: 64% (figure covers UNHCR only)
2013: 71%
2014: 61%
2015: 62%
2016: 31% (period to 22 March)
For comparison, the funding reported last year as at 24 March 2015 was 42% of their year to date target (Source: http://data.unhcr.org/syrianrefugees/download.php?id=8634) so the 2016 funding may catch up as the year progresses, although at March 2013 the agencies were funded at over 100% of year to date target.

Sources:

UNHCR Funding for the Syrian Refugee Response as of 7 January 2013 (2012 requirements)
http://data.unhcr.org/syrianrefugees/download.php?id=1345
RRP Funding Update - 31 December 2013
http://data.unhcr.org/syrianrefugees/download.php?id=3968
RRP Funding Update 2014 - 5 February 2015
http://data.unhcr.org/syrianrefugees/download.php?id=8137
3RP Funding Update 2015 FINAL - 22 February 2016
http://data.unhcr.org/syrianrefugees/download.php?id=10298
[syria Sit 2016] 3RP Inter-agency funding snapshot - March 2016
http://data.unhcr.org/syrianrefugees/download.php?id=10555

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The argument against refugee resettlement is usually made in terms of the interests of the people in the country where the resettling is happening, and although that's a valid argument it does allow open borders advocates to make the usual accusations against the person putting it forward.

 

The moral, humanitarian case against refugee resettlement is compelling. It's important to cite the "right" sources; if you cite the CIS http://cis.orgas I lazily did at one point above (I'll change it when time permits) then the open borders advocates will deflect the argument by saying that they are Bad People, even when the CIS is just citing government figures.

 

The moral argument probably won't convince an open borders advocate - for example, one that I put this argument to came back with claims of unspecified benefits that the refugees would bring to the host country - but it should lose them a lot of their audience.

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You are right.

 

Most of my arguments with people about this are done online so I try to think of it as I'm not just convincing the person I'm talking to, I'm trying to convince the people that would be reading our conversation also. I find there are some people that I have come across on this topic have not been shown the real facts about it and some are not as hard core in their beliefs as some open borders advocates are. So I normally talk about how there is only so much money to go around to help these people so if it helps more people (pushing that helping more should be the goal) then keeping them where they are rather than brining them to the EU or the West is better as a whole as it helps so many more people rather than the feel good moments of bring in only some lucky few. I push that it is a selfish idea to do that. I feel like it plants the seed in some of the not so hard core about it.

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  • 2 months later...

There are some interesting stats at the UN's Financial Tracking Service https://fts.unocha.org/pageloader.aspx?page=special-syriancrisis especially the detailed information in the (large) spreadsheet that's generated when you go to Donor Funding 2012 to 2015 > Totals > Show full details / itemised list under each sub-total
 
Germany did massively increase its humanitarian aid to Syrian refugees in 2015, donating $519m in that year mainly through UNICEF ($193m) and the World Food Program ($146m). But that's still less than 3% of the expected annual cost for basic welfare alone of Germany's 2015 refugee/migrant intake (at $15K per head).
 
The UK remains substantially ahead of Germany in terms of cumulative humanitarian aid, despite the complaints from certain quarters that the UK "isn't doing as much as other countries".

 

In the table below I've listed total government humanitarian aid to Syrian refugees 2012-2015 in USD by country, in descending per capita order. It's interesting how many Middle Eastern countries are near the top. Humanitarian aid figures are from the FTS site mentioned above, population figures are from Wikipedia.

 

Country Donated Pledged Total Population Per Capita
Kuwait 1,039,816,837   1,039,816,837 4,183,658 248.54
Qatar 256,967,279 3,803,270 260,770,549 2,587,564 100.78
Norway 362,537,432 14,608,919 377,146,351 5,223,256 72.21
United Arab Emirates 435,287,950 118,822,508 554,110,458 9,856,000 56.22
Luxembourg 25,462,714   25,462,714 576,200 44.19
Holy See 29,828   29,828 839 35.55
Denmark 200,072,721   200,072,721 5,717,014 35.00
Monaco 983,845   983,845 38,400 25.62
United Kingdom 1,553,810,782   1,553,810,782 65,110,000 23.86
Switzerland 197,239,702 1,142,037 198,381,739 8,341,600 23.78
Saudi Arabia 736,519,452   736,519,452 32,248,200 22.84
Netherlands 335,305,431 30,652,419 365,957,850 17,019,620 21.50
Sweden 190,870,739   190,870,739 9,894,888 19.29
Bahrain 3,580,000 22,000,000 25,580,000 1,404,900 18.21
Germany 1,253,782,339   1,253,782,339 81,770,900 15.33
Canada 550,191,075   550,191,075 36,155,487 15.22
United States 4,676,016,836 37,669,216 4,713,686,052 323,940,000 14.55
Oman 58,053,249   58,053,249 4,420,133 13.13
Finland 69,992,139   69,992,139 5,491,817 12.74
Ireland 49,939,607 1,696,065 51,635,672 4,635,400 11.14
Belgium 84,545,362 6,467,942 91,013,304 11,319,511 8.04
Australia 173,397,332   173,397,332 24,116,545 7.19
Liechtenstein 258,799   258,799 37,623 6.88
Iceland 1,755,000   1,755,000 334,300 5.25
Japan 449,012,741 23,360,000 472,372,741 126,960,000 3.72
European Commission 1,804,223,514   1,804,223,514 508,000,000 3.55
New Zealand 11,753,261 2,903,226 14,656,487 4,697,481 3.12
Austria 24,654,711   24,654,711 8,725,931 2.83
France 171,876,228   171,876,228 66,710,000 2.58
Brunei Darussalam 1,000,000   1,000,000 411,900 2.43
Estonia 2,544,435   2,544,435 1,315,944 1.93
Italy 109,801,922 3,484,310 113,286,232 60,665,551 1.87
Czech Republic 10,426,866   10,426,866 10,558,524 0.99
Spain 43,696,062   43,696,062 46,438,422 0.94
Andorra 51,496   51,496 78,014 0.66
Iraq 9,965,812 13,000,000 22,965,812 37,883,543 0.61
Malta 233,258   233,258 425,384 0.55
Korea, Republic of 21,391,500   21,391,500 50,801,405 0.42
Mauritania   1,000,000 1,000,000 3,718,678 0.27
Croatia 847,141 206,897 1,054,038 4,190,669 0.25
Morocco 4,250,000 4,000,000 8,250,000 33,337,529 0.25
Russian Federation 35,759,837   35,759,837 146,599,183 0.24
Poland 7,905,700   7,905,700 38,437,239 0.21
Slovenia 330,422   330,422 2,064,188 0.16
Hungary 1,503,251   1,503,251 9,823,000 0.15
Latvia 236,081   236,081 1,961,600 0.12
Cyprus 78,492 13,793 92,285 847,000 0.11
Slovakia 587,169   587,169 5,426,252 0.11
Lithuania 218,197 82,542 300,739 2,872,294 0.10
Bulgaria 731,992   731,992 7,153,784 0.10
Botswana 100,000 100,000 200,000 2,141,206 0.09
Uruguay 230,011   230,011 3,480,222 0.07
Romania 1,053,665   1,053,665 19,861,408 0.05
Algeria 2,000,000   2,000,000 40,400,000 0.05
Portugal 508,635   508,635 10,374,822 0.05
Greece 394,223   394,223 10,858,018 0.04
Ecuador 500,000   500,000 16,544,793 0.03
Brazil 5,690,000 100,000 5,790,000 206,131,387 0.03
Turkey 2,000,000   2,000,000 78,741,053 0.03
Mexico 3,000,000   3,000,000 122,273,473 0.02
Malaysia 500,000   500,000 31,404,332 0.02
Georgia 50,000   50,000 3,720,400 0.01
Kazakhstan 200,000   200,000 17,753,200 0.01
Chile 200,000   200,000 18,191,900 0.01
China 14,802,932   14,802,932 1,377,406,500 0.01
Montenegro 5,000   5,000 621,810 0.01
Colombia 300,000   300,000 48,758,500 0.01
India 3,594,517 2,200,000 5,794,517 1,295,170,000 0.00
Mongolia 10,000   10,000 3,092,925 0.00
Indonesia 500,000   500,000 258,705,000 0.00
South Africa 93,465   93,465 55,653,654 0.00
Philippines 10,000   10,000 103,275,200 0.00
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