In the past couple of years, the global refugee crisis has steadily grown. Currently, more than 43 million refugees depend on humanitarian aid, and as wealthy countries such as the United States withdraw their aid, the crisis worsens. While many refugee camps provide immediate aid such as food, water, shelter and medical care, they are not intended to be a long-term solution.

Immediate versus Long-Term Aid

While refugee camps are excellent for providing immediate assistance for refugees suffering from extreme poverty, they do not provide lasting support. People rely on the camps for support and lack the ability to permanently lift themselves and their families out of poverty.

Refugee camps were designed to be temporary shelters, but the people who reside in them require something permanent.

The Solution

In their joint project entitled “DREAMS for Refugees,” DREAMS for Refugees Uganda offers sustainable solutions, empowering communities through innovative programs and reducing dependency on aid. are working to install permanent solutions in refugee communities. Beginning in the Ugandan Bidi Bidi Refugee Settlement, they are combining two well-researched tactics.

Village Enterprise employs a poverty graduation program. This approach uses provision, coaching and structural changes to benefit poor communities. Assets are provided, and teaching allows people to use those assets in productive ways.

This program is combined with Mercy Corps’ market system development program, which allows the refugee community to thrive financially. Together, these two strategies have the potential to create thriving communities.

Bidi Bidi Refugee Settlement and Beyond

The Bidi Bidi Refugee Settlement was created in Uganda in 2016. After the implementation of DREAMS, the first businesses opened in the fall of 2022.

In 2023, DREAMS for Refugees expanded to Ethiopia. It is estimated that it will reach 200,000 refugees.

The project received Fast Company’s 2023 World Changing Ideas Award and was the 2021 winner of the Larsen Lam ICONIQ Impact Award for Refugees.

Village Enterprise and Mercy Corps intended DREAMS to be an evidence-led approach to fighting poverty. To determine the effectiveness of the program, IDinsight is conducting a trial to assess its results.

Why the DREAMS Model Matters

The DREAMS program represents the shift from offering basic necessities to refugees to improving lives and setting people up for success. Not only does this program help the individual, but the evolution of small businesses will strengthen the economies of these settlements as a whole.

This long-term approach is especially helpful in a period of reduced foreign aid by wealthy countries, as it repurposes money to create lasting success as opposed to short-term survival.

Looking Ahead

As the number of refugees living in extreme poverty increases and the amount of foreign aid dwindles, investing in long-term solutions becomes more important than ever. The future of foreign aid is uncertain, so actions to change it must be taken now. Assisting with establishing independence rather than creating dependency on consistent aid is not only more financially viable, but it protects the dignity of refugees. If DREAMS continues to be successful, it could serve as a model for communities experiencing extreme poverty around the world.

– Julia Cholerton

Julia is based in Gig Harbor, WA, USA and focuses on Technology and Solutions for The Borgen Project.

Photo: Unsplash