The influx of some 86,000 refugees from Togo into Benin during the first few months of 1993 is examined in terms of its economic effects at both the macro and household levels. The macroeconomic analysis examines the short-term effects of the refugee crisis on the inflation rate, fiscal deficit, and national output, as well as on key sectors (food market, labor market and service sector, housing market, financial and capital goods markets, and the public finance and services sector). The household analysis, which is based largely on anecdotal information, addresses the short-term material situation of the refugees and their Beninese hosts (most refugees have been taken in by Beninese families rather than living in camps) in terms of lodging, sanitation, and access to food, along with the longer-term dynamics of the refugee presence, particularly the capacity of the Beninese economy to integrate the Togolese into the labor force. The main concern identified in the macroeconomic analysis is the medium- to long-term ability of the Beninese economy to absorb the increase in the labor supply represented by the refugees. The most pressing issues found in the household level analysis are fulfilling refugees” basic physical needs, the most critical being housing and sanitation. In designing relief efforts, donors should give priority to short-term relief, not encourage the refugees to remain in Benin permanently, and make sure that refugee assistance programs also address the burdens on the Beninese, who have shown themselves extremely generous to the refugees. Specific recommendations for USAID are presented in conclusion. (Author abstract, modified)
