Economics & Development

The world faces a state of polycrisis, where overlapping and mutually reinforcing shocks – from conflict and climate change to economic instability – are disrupting livelihoods, fueling violence and driving record levels of forced displacement. Meanwhile, resources to respond are under strain. This underscores a stark reality: business-as-usual is no longer viable, and a more sustainable approach is urgently needed. The Refugee Welfare Report 2026 acknowledges this reality and offers timely evidence to inform ongoing efforts by both the World Bank and the United Nations High Commissioner for Refugees (UNHCR) to strengthen the global response to forced displacement. For UNHCR, a sustainable response approach aims to transition from solely humanitarian activities delivered in parallel to existing national systems to comprehensive government-led measures that enhance self-reliance and inclusion within national systems. This complements the World Bank’s development-focused approach, promoting inclusive policies that are financially and socially sustainable. This report provides an in-depth assessment of refugee well-being, drawing on recent microdata on forcibly displaced populations and laying the foundation for future monitoring. In addition to comparing refugee poverty with that of host communities, it demonstrates how inclusive policies and programs can promote socioeconomic inclusion and improve refugee welfare. The report concludes with a call to action, advocating for a shift in the current response model and presenting concrete recommendations to translate strategic vision into effective implementation.