KEY TAKEAWAYS Promoting a new social contract to address Syrian refugees and host communities welfare

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1 Launch f the Jint WB/UNHCR Reprt: The Welfare f Syrian Refugees. Evidence frm Jrdan and Lebann - Crss-reginal Learning Event between the Mashreq and Eurpe n Hsting Refugees February 15, 2016, Agence Française de Dévelppement, Paris, France PROCEEDINGS KEY TAKEAWAYS Prmting a new scial cntract t address Syrian refugees and hst cmmunities welfare The prtracted nature f the refugee crisis and its impact n hst cuntries has shifted this crisis frm being a purely humanitarian challenge t a humanitarian and develpment ne. The regin is facing a lng term crisis that needs t be managed thrugh lng-term slutins and engagement sustained by a cntinuum f humanitarian and develpment actins. Enhancing the welfare f Syrian refugees is fr the mutual benefit f hst cuntries, Syrians and Syria s future recnstructin. It is essential t help refugees t help themselves by increasing their self-sufficiency and becming agents f their future. Thrugh an eventual recnstructin f Syria Refugees shuld be able t use theirs skills and ptential t supprt themselves and the cmmunities hsting them. Educatin and training are key t saving the lst generatin f refugee yuth and children that have been ut f schl since the start f the crisis, and are crucial t the prcess f Syrian recnstructin in the future. Key prpsals t bst refugee integratin and lcal ecnmic grwth Lebann and Jrdan in particular are prviding the wrld with a glbal public gd and need far mre supprt than they are currently receiving frm the internatinal cmmunity. The refugee influx is severely affecting jb markets and the distributin f incme, while fstering resentment amngst lcal cmmunities and placing strain n scarce resurces. Eurpean participants acknwledged the difference f the scale f the crisis affecting Eurpe cmpared t the situatin in the Mashreq and Turkey. Cupling emergency humanitarian wrk t mid-term and hlistic develpment appraches can encurage lcal ecnmic pprtunities invlving hsting cmmunities and refugees t emerge. These new grwth pprtunities can mitigate the impacts f refugee hsting n hst cmmunities and enable them t cntribute. Despite existing advanced legislatins that allw refugees t wrk (ex: Turkey, Germany), and refugees existing skills, Syrian refugees hardly find emplyment. This pints t the need fr targeted educatin and vcatinal training in rder t adapt their skills t their new lcal labr market: refugee prfiling and skills assessment are key t matching refugee skills with existing labr demand and identifying hw new jb pprtunities fr refugees can be created. Encuraging cntacts between lcal ppulatins and refugees t supprt a shift in attitudes is a crucial aspect f maintaining scial peace and chesin, ntably thrugh cmmn activities, language exchanges and imprved refugee mbility. It is imprtant t invlve refugees in prgram design rather than designing prgrams fr them. UNESCWA called fr a paradigm shift t include a Syrian dimensin in develpment plicies, including encuraging investments in stable parts f Syria as f nw in rder t lay the grund fr the cuntry s future recnstructin. Syria s recnstructin has the ptential t becme an pprtunity fr reginal grwth and integratin.

2 Frm analytics t peratins: hw t build up n the reprt, white paper, and the cnference: The White Paper The Syrian Refugee Crisis in the Medium-Term: What next? presented at this event prvided fr imprtant recmmendatins aimed at addressing the pverty trap threatening Syrian refugees and vulnerable hst cmmunities in the medium term by fstering lcal ecnmic grwth and ecnmic inclusin. The pledges f the Lndn cnference can cntribute t that, but the specific needs will need t be fully integrated int the Respnse Plans prepared by Lebann and Jrdan. Participants acknwledged the need t cntinue exchanging n these questins thrugh multi-partner and multistakehlder knwledge-sharing events, which are imprtant catalysts f plicy adjustments and cnsensusbuilding n hw t address Syrian refugee and hst cuntries and cmmunities welfare. In terms f financing hst cuntries, instead f engaging in multiple pilt prgrams, it is necessary t channel scale-up existing slutins and transcend sil appraches between IFIs (e.g. blending grants with lans t buy dwn interest n lans frm Multilateral Develpment Banks t increase verall cncessinality) in rder t prvide financial supprt t these hst cuntries. The Eurpean Unin has been recvering unused funds frm drmant r interrupted prjects in rder t funnel them twards supprting Jrdan and Lebann based n cncessinal financing. It is als essential t encurage market access fr Lebann and Jrdanian gds t the Eurpean Unin in rder t supprt their ecnmies.

3 KEY POINTS - SUMMARY OF DISCUSSIONS Intrductin Ferid Belhaj, Cuntry Directr fr the Middle East, Wrld Bank, reminded that Jrdan and Lebann are prviding the wrld with a glbal public gd which they shuld nt pay fr. This prtracted crisis needs t be managed thrugh a cntinuum f humanitarian and develpment actins t find lng-term slutins. The jint reprt presented that day is a junctin between humanitarian and develpment wrk. Françis Reybet-Degat, Deputy Directr fr the Middle East & Nrth Africa, UNHCR, argued that since the Lndn cnference, the internatinal cmmunity realized that much mre needs t be dne in Syria and the regin in rder t develp partnerships between the internatinal cmmunity and hst cuntries t find lng-term financing fr Syrian refugees. The reprt is a sund basis fr grwth driven plicies t benefit hst cmmunities and cuntries. H.E. Sejaan El Azzi, Minister f Labr f Lebann, affirmed that the current crisis is first f all a human phenmenn and the nly apprach that has been develped is a techncrat and technical apprach. It did nt seek t find plitical slutins and revealed an inability t find a slutin t end war in Syria. Lebann believes that the right apprach is t think abut the return f refugees t their wn cuntry fr the sake f Syria s recnstructin. H.E. Prf. Nidal Alkatamine, Minister f Labr f Jrdan, insisted n the fact that nt enugh research has been dne t understand and t assess the situatin f refugees, mainly the situatin in camps, and claimed that the reprt is a way f raising the flag and making a wakeup call fr pliticians. SESSION 1: Presentatin f The Welfare f Syrian Refugees: Evidence frm Jrdan and Lebann, WB/UNHCR Reprt In this sessin, Ewen Macled, Head f the Plicy Develpment and Evaluatin Service, United Natins Refugee Agency (UNHCR) and Pal Verme, Senir Ecnmist, Pverty Glbal Practice, Wrld Bank (WB) presented the main findings f their jint WB/UNHCR reprt The Welfare f Syrian Refugees: Evidence frm Jrdan and Lebann. Ewen Macled started by underlining the highly vlatile and dynamic patterns f the crisis, stating that after five years f cnflict, ne wuld expect t see signs f stability and return, which is nt the case. One f the findings f the reprt is that the welfare cnditins fr refugees in bth Jrdan and Lebann have wrsened ver time and that pverty has raised and will cntinue t increase. The authrs f the reprt asserted that nine ut f ten refugees are pr (cnsidering the hsting cuntries pverty lines) and that 55% f them are vulnerable. They explained that the impact n the lcal ppulatin and hst cmmunities culd nt be ignred any lnger and that the prtectin f the ppulatin might be threaten by a breakdwn f scial chesin. Early signs f frictin, difficulty and negative cping strategies are a clear call fr actin. Pal Verme assessed that the vulnerably f refugees has bth mnetary and nn-mnetary dimensins and that nt all issues can be treated with cash, even if UNHCR cash assistance and Wrld Fd Prgramme (WFP) fd vucher have prven t be effective. The scale f the crisis makes humanitarian assistance increasingly unsustainable. This reprt, the nly study f its kind, is a wakeup call: humanitarian actins are nt enugh t address the crisis. It creates a sund basis fr future develpment prgrams t ensure that resurces are allcated where they are the mst needed. Gvernment representatives frm bth Jrdan and Lebann explained that native ppulatin frm the tw cuntries is suffering frm the ecnmic pressure (decline in grwth, increase in public debt, deteriratin in quality f services prvided, increase in pverty and unemplyment because f the cmpetitin ver jbs). Jrdan and Lebann are prviding a glbal public gd n behalf f the internatinal cmmunity and a firm cmmitment t supprt welfare f refugees, Jrdanians and Lebanese is needed. The welfare f Syrians will affect the welfare f native ppulatin and plicies need t target thse tw grups in the meantime. Mireille Girard, UNHCR Representative fr Lebann agreed, stating that there is a need fr safety nets fr the whle ppulatin in Lebann. Indeed, it wuld create a virtuus cycle where jbs are created because when refugees are ecnmically active they are the first t find slutins fr themselves. Sami Atallah, Directr, Lebanese Center fr Plicy Studies (LCPS) and Mireille Girard discussed the vulnerability f Lebann stating that Lebanese ecnmy is affected, nt nly because f refugees, but because f the war next dr (turism, trade,

4 cnstructin sectr) and that the crisis has expsed the vulnerability f Lebann in terms f jb creatin cncluding that Lebann needs internatinal cmmunity help but this prcess has t be accmpanied by refrms. Dawn Chatty, Emeritus Prfessr f Anthrplgy and Frced Migratin and Frmer Directr f the Refugee Studies Centre, University f Oxfrd, expsed tw main characteristics f refugees. Refugees are nt part f a regular ppulatin they are ften children, yung and single; and they fllw a prcess f circular migratin, meaning that they try t stay as clse t brders as pssible in rder t be able g back t Syria when the war is ver. She recmmended t fcus n yuth and t develp a different apprach t refugees: they need t be invlved in hw the camps are run and prvided with temprary prtectin and services in rder t start small and build up n thse actins. She recmmended t create a special agency fr educatin fr Syrians, based n the mdel f the UNRWA fr Palestinians. Andrew Harper, UNHCR Representative fr Jrdan, affirmed that the main challenge is t find a way t unleash the ptential f refugees and prvide them with a sense f humanity. UNHCR cash assistance and WFP fd vucher are wrking well but are nt sustainable in relatin t human dignity. Refugees shuld be able t use their skills and ptential t supprt themselves and the cmmunities hsting them. SESSION 2: Presentatin f the White Paper: The Syrian Refugee Crisis in the Medium-Term: What Next? Authrs f the White Paper reminded the exceptinal scale and nature f the crisis fr the regin, with very large numbers displaced in a few cuntries; and the extrardinary respnse needed in return. Reflecting a strng statement f the paper, they argued in favr f develping a new mdel and refrms (in financing, plicies and legal framewrks), as a part f an invigrated partnership between hst cuntries gvernments and the internatinal cmmunity. They als highlighted that the White paper aimed at prpsing avenues fr financing, legal, and plicy refrms in rder t address the mid-term needs f refugees and hst cmmunities, where internatinal experience is limited. Authrs f the Paper argued that a sustained incme fr refugees prviding an acceptable standard culd nt be prvided in the mid-term nly by humanitarian aid. The Jrdanian representative agreed that a new deal was needed: the Gvernment f Jrdan can engage in new public plicies and legal refrms (such as the Turkish ne) t create mre business and emplyment pprtunities fr Syrians, prvided the internatinal cmmunity s engagement t supprt financially this agenda. Hwever, Jrdanian and Lebanese gvernment representatives argued that enhancing refugee ecnmic inclusin shuld nt lead t plitical integratin and access t citizenship in the mid-term. UNESCWA (Deputy Secretary General A. Dardari) called fr a paradigm shift t have an inside Syria dimensin f develpment plicies, including encuraging investment in Syria as f nw, and envisaging recnstructin. Accrding t studies cnducted by UNESCWA, prviding mre fd and electricity in the mst deprived areas f Syria culd bring back Syrians t Syria, r at minimum cntribute maintaining ppulatins in the cuntry. The critical state f Iraqi s Kurdistan gvernment finances was als mentined: Hayder Mustafa Sinjawi, Directr General at the Ministry f Planning at the Kurdistan Reginal Gvernment, called fr the prmtin f freign direct investment, supprt t the 400 public planned prjects that lack finances t be implemented, and the prvisin f small lans t encurage businesses. The White paper prpses t address refugees and hst cmmunities pverty trap thrugh cunter-cyclical plicies (Keynesian apprach) increasing public spending t bst the ecnmy and create jbs, then favr private investment by imprving a business envirnment that wuld be cnducive t grwth and imprve labr market infrmatin system (including Eurpe) t better match supply and demand. The necessity fr Syrians t access t jbs in hst cuntries as a surce f sustained incme was mentined as key, yet ften mismatch between refugee skills and emplyment pprtunities was underlined: recgnitin was made f the critical need fr a better knwledge f refugee past skills and activities, in rder t better match them with labr market demand in Jrdan, Lebann, Turkey, and als Eurpe. Presenters and panelists agreed that enhancing the welfare f Syrian refugees wuld be fr the mutual benefit f hst cuntries, Syrians and Syria s future recnstructin. They nted that the financial capital f Syrians that circulated utside f Jrdan and Lebann due recent mvement t Eurpe culd have been captured int private investment and

5 entrepreneurship, if better pprtunities had been prvided (Refugees spent 5 billin USD t travel t EU ; 100 millin USD f Syrian investments were made in Turkey after 2011). In additin, maintaining a critical level f Syrians with high skills in Syria s neighbring cuntries appeared key fr Syria s recnstructin in the future (it was mentined that many migrants and refugees arriving in Eurpe were emplyed at lwer skills than their initial qualificatin). Presenters and panelists highlighted the pprtunities that lie within the crisis: the pprtunity fr Jrdan and Lebann t tackle their frmer ecnmic and structural challenges prvided an additinal internatinal supprt; fr the Mashreq (and/r the Arab) regin, the pprtunity t develp reginal integrated strategies; fr the Eur-Mediterranean regin t engage in mre integrated plicies. Participants agreed that the White Paper had a lt f ptential fr prviding recmmendatins t the internatinal cmmunity and Syrian hst cuntries t turn the pledges f the Lndn cnference int cncrete actins given it wuld be fully integrated within the legitimacy f respnse plans already develped by Jrdan and Lebann. The Eurpean Cmmissin representative called fr mre slidarity between the main hst cuntries and Eurpean cuntries, fr mutual benefits. SESSION 3: Bilateral Experiences twards Supprting Refugee and Hst Cuntry Welfare This sessin gathered gvernment and civil sciety representatives frm the Mashreq and Eurpe t fster experiencesharing n refugee and hst cuntry welfare. His Excellency Nidal Alkatamine, Minister f Labr f Jrdan, launched the sessin by highlighting the enrmus respnsibility weighing n Jrdan and Lebann s shulders in the wake f the Syrian cnflict and the ensuing refugee crisis. He argued that these tw cuntries are currently bearing the respnsibilities f the entire internatinal cmmunity based n a welcming apprach t refugees, regardless f the scarce resurces at hand. Hwever, it seems that Lebann and Jrdan s ecnmies are reaching a breaking pint, as pverty and unemplyment rises amngst lcal ppulatins, leading t a grwing divide between refugee and hst cmmunities. Investments and large-scale private sectr invlvement are necessary t bridge this gap. Eurpean gvernment and NGO representatives highlighted the difference in scale between the challenges facing the Mashreq and Turkey and thse that Eurpean hst cuntries are currently dealing with. Furthermre, they insisted n the imprtance f a plitical settlement t the Syrian Crisis as a precnditin fr a mre stable reginal situatin. Greece underlined the effrts it is currently deplying at an unprecedented scale t prvide aid t 900,000 refugees and ecnmic migrants and prcess 13,000 asylum applicatins. Capacity n many f the islands bearing the brunt f the influx is exceeded. Sweden further emphasized the prblems resulting in the average prcessing times f asylum applicatins, which can exceed ne year. Reducing the duratin f these prcessing phases is ne f the Swedish gvernment s pririties, and was further endrsed by the German civil sciety participant as being ne f the main challenges in Germany, the Eurpean cuntry hsting the mst refugees. Anther issue is the strain that refugee hsting is placing n municipalities capacity t deliver basic services. Furthermre, Sweden is bserving an uneven spread f refugees, wh tend t chse areas with higher jb and ecnmic pprtunities, thereby placing additinal strain n the latter. In terms f refugee integratin int hst cmmunities, the Italian representative highlighted the imprtance f the language issue, which can be a key barrier t the inclusin, educatin and emplyment f refugee ppulatins. This barrier is ne f the main fci f the German NGO represented in this meeting, which is devting many f its funds t language curses, like the mst actrs invlved in refugee integratin in Germany. The NGO further emphasized the imprtance f fstering cntacts between lcal and refugee ppulatins, in rder t encurage psitive attitudes and cmmunity invlvement. Authrities mst ften d nt dispse f sufficient time t encurage such day-t-day lcal encunters, and lack the capacity t engage in in-depth refugee prfiling fr emplyment by lcal actrs. NGOs and civil sciety have an essential rle t play in this respect. A Swedish NGO is striving t step up the platfrm it has created fr established and new Swedes t encunter each ther in rder t meet strng demand frm established Swedes. Mre generally, great emphasis was placed n the necessary invlvement f refugees in the design and strategic thinking f prgrams aimed at supprting them.

6 SESSION 4: Creating Cnditins fr Shared Prsperity and Ecnmic Grwth fr Refugees and Hst Cmmunities Welfare - Sptlights n Innvative Actins and Experiences In this sessin, the questin f integratin f Syrians in the labr market f hst cuntries appeared as a sensitive issue, due t the cmpetitin with lcal ppulatins, and als f the existing infrmal wrk paid with lwer wages, which benefit large part f the ecnmies. Hwever, Syrian s neighbring cuntries shwed the effrts they made: Turkey is in the lead with advanced new regulatins allwing Syrians t access labr market in Turkey; in Lebann a high percentage f refugees is effectively wrking; it has therefre intrduced regulatins and is in principle ready t legalize mre Syrian wrkers. Yet it will be difficult t take n mre refugees and the request was made t think als ahead in terms f return prgrams t Syria. Grants and lans prvided t hst cuntries by the internatinal cmmunity shuld nt be cnditined by the deliverance f wrk permits. The Turkish delegate (Gaziantep municipality) pinted ut that the Turkish experience shwed that the welfare f minrities raises the welfare f everyne in the cmmunity. Experience demnstrated that when refugees are helped with becming scially and ecnmically self-reliant, as well as prvided with prtectin and mbility, they becme a psitive frce. Hwever panelists bserved that despite existing advanced legislatins that allw refugee t wrk (ex: Turkey, Germany), and refugees existing skills, Syrian refugees hardly find emplyment, indicating the need fr educatin and vcatinal training in rder t adapt their skills t their new lcal labr market. Language classes in these tw cuntries appeared critical. Als, having better data n the skill prfile f refugees, which wuld include data n infrmal qualificatins/past activities, appeared crucial t allw fr a gd match f jb supply and demand. The Jrdanian representative nted that the departure f Syrian refugees t Eurpe is nt withut impact n the pprtunities in Syria s neighbring cuntries: it increases disrganizatin f resilience prgrams that emplyed thse Syrians; it depraves thse cuntries frm high qualified skills and financial resurces. The presentatin f the Special Ecnmic Znes prject in Jrdan shwed the favrable cnditins f such prject in Jrdan (existing factries and land fr develpment, skilled wrkers, practive gvernment), as well as the challenges: refrms (n the labr market) are disruptive, the creatin f jbs and new ecnmic pprtunities in Jrdan and Lebann depend n a better access f the gds prduced t EU markets. This panel als shwed that cities were highly affected in Jrdan, Lebann and Turkey: nt nly the delivery f pririty services were impacted (water, sanitatin, waste management, husing, etc.), but als lcal ecnmies f cities clse t the Syrian brder, which lst business pprtunities leading t jb lsses. Cities experiences (Offenbach and Gaziantep) shwed that a mre integrated apprach is necessary in their plicies t tackle all challenges related t the refugees as a target grup: The municipality f Gaziantep is creating a municipal directrate f migratin which aims at crdinating all services fr Syrian refugees. The German city representative warned n the risk f creating refugee ghetts in the future, and mentined the pssible set f regulatins by the Federal gvernment t avid clustering refugees in specific neighbrhd and cities. SESSION 5: Mbilizing Resurces and Strengthening Multi-partner Cllabratins twards Supprting Refugees and Hst Cmmunities Welfare This sessin fcused n the issue f financing t supprt hst cuntries in the wake f the Lndn Dnrs Cnference that tk place n February 4th. Jrdan and Lebann are currently prviding a glbal public gd but as Middle Incme cuntries they can nly brrw frm Internatinal Financial Institutins (IFIs) at standard rates. They d nt have access t develpment financing at cncessinal terms fr lw-incme cuntries (e.g. n Internatinal Develpment Assciatin financing terms). Fllwing the meeting in Lima which launched the MENA financing initiative, significant steps are being made t change this cnfiguratin. Mrever, the challenge is nt simply t supprt Syrian Refugees: it is abut sustaining the develpment agenda f hst cuntries. Rather than engaging in pilt prgrams, it is necessary t scale-up existing slutins and transcend sil appraches between IFIs (e.g. blending grants with lans buying dwn interest n lans frm Multilateral Develpment Agencies t increase verall cncessinality, as has been dne in the health sectr in Latin America).

7 This apprach t hst cuntry supprt is als being supprted by the Eurpean Unin, which has been recvering unused funds frm drmant r interrupted prjects in rder t funnel them twards supprting Jrdan and Lebann based n cncessinal financing. It is als essential t encurage market access fr Lebann and Jrdanian gds t the Eurpean Unin in rder t supprt their ecnmies. The Madad funds can be carried ver year by year, ensuring greater cntinuity in financing effrts. The Western Balkans have als been included in the scpe f the fund. The tw pririties f the Madad Fund are educatin in Jrdan (direct bilateral cllabratin f the Ministry f Educatin) and livelihds. T this end, the Madad Fund is supprting the training f refugees in preparatin f their future return t Syria and the recnstructin f the cuntry. Cncluding remarks As a cnclusin H.E. Nidal Alkatamine, Minister f Labr f Jrdan cncluded that as lans and grants wn t be sufficient fr Syria s neighbring cuntries, significant investments needed t be made, and the internatinal cmmunity needed t step up supprt. He, als pinted ut that mre expertise, knwledge and research t infrm their plicies were needed. Murad Ezzine (CMI) nted that the CMI Mediterranean Refugees and Hst cmmunities prgram ffers a platfrm fr evidence-based knwledge and exchange. The supprt t hst cmmunities f refugees is an imprtant pillar f this wrk. He cnfirmed that the questin f skills was key t the inclusin f refugee: participatin t labr markets implies that existing skills are knwn and well matched with demand. Olivier Ray (AFD) suggested that the White Paper was inspiring the cmmunity f dnrs and develpment partners fr their future actins and peratins. Finally, all three acknwledged the need t cntinue exchanging n these questins thrugh multi-partner and multi-stakehlder knwledge-sharing events, which are imprtant catalysts f plicy adjustments and cnsensus- building n hw t address Syrian refugee and hst cuntries and cmmunities welfare.

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