Abstract
ABSTRACT In 2016, the United Nations changed the focus of refugee policies from one of humanitarian aid to one focused on economic development and self-reliance. In this paper, we analyse the impact of savings-led microfinance on South Sudanese refugees in Uganda. Due to non-randomisation, we implement doubly robust, difference-in-difference estimation. Results suggest that refugee members of a popular village savings and loan programme significantly increase their savings and borrowing relative to non-member refugees, and experience significant improvements in several key indicators, including food security, home improvement, and income-generating assets. After participation, refugees are better positioned to preserve assets in response to future unexpected and infrequent expenditures. Key mechanisms may include improved financial access and socially proximate peer monitoring. The results suggest that finding ways to better-leverage group affinity and build social cohesion could increase the effectiveness of similar programmes aimed at helping refugees.
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