Refugee crisis refers to the difficulties and dangers that arise when large groups of refugees are displaced, either as a result of violent conflict or natural disaster. The term also applies to a situation in which the host country has limited capacity or resources to meet the needs of those who have been displaced. The United Nations Convention on the Rights of Refugees and Guiding Principles on Internal Displacement stipulate that refugees must be protected by the state in which they have found sanctuary, and states must act in accordance with their laws. Generally, the burden of sheltering refugees rests with low- or middle-income countries close to states in which there is conflict. Today, seven countries host more than half of the world’s refugees.
Early responses to refugee crises focus on functional and practical issues, such as meeting basic needs and working out the logistics of the displacement. But when a refugee population grows, it can become tempting for politicians to view the situation in strategic terms. If a Western state has security interests in the region, it may view refugee flows as a threat to its national security and use them as leverage in negotiations with refugee-sending states. In some cases, scapegoating and manipulation of the refugees occur, making temporary situations seem permanent and heightening the risk of violence.
In addition, the humanitarian needs of a refugee population can be overwhelming for host states that have limited budgets. In these cases, it is important to provide support for the local economy that can enable refugees to become self-sufficient as soon as possible. One way to do this is by transforming refugee aid from traditional physical goods to cash transfers. This provides greater choice and transparency for refugees and can make aid more effective by increasing the efficiency of investments.