Social integration and financial inclusion of forcibly displaced persons in Sub-Saharan African countries

  • 248 Views
  • 30 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

Most government and international financial institutions worldwide have adopted financial inclusion as a veritable platform for achieving the Social Development Goals of hunger and poverty eradication, inequality reduction, and employment creation. Their efforts will not yield much dividend if a sizeable part of the populace are constrained from social and formal financial inclusion due to social disorder. This study examined the relationship between social seclusion of forcibly displaced persons from formal financial inclusion in twenty-seven Sub-Saharan African countries. Granger Error Correction Method (ECM) with Generalized Methods of Moments (GMM) was used to analyze the short panel data obtained from the World Bank database. The study found a negative long-run relationship between social seclusion and financial inclusion. That is, an increase in social menace overtime will result in more people being financially excluded from formal financial transactions. It, therefore, recommends, amongst others, that government should encourage forcibly displaced persons to become gainfully employed and productive. Specifically, persons in refugee and internally displaced persons camps should be trained to acquire skills that will enable them to become self-employed, create wealth for themselves, and contribute actively to the sustainable economic growth of their host country rather than just provide food and other welfare packages as a temporal palliative for survival.

view full abstract hide full abstract
    • Figure 1. Line graph showing movements of financial inclusion by usage
    • Figure 2. Line graph showing movements of financial inclusion by quality
    • Figure 3. Line graph showing movements of social seclusion
    • Figure 4. Individual country’s average financial service usage
    • Figure 5. Decomposing countries into high and low usage of financial services
    • Table 1. Gradual phase integration of FDPs into economic mainstream
    • Table 2. Statistics from 2007 to 2017 in their raw value quantities
    • Table 3. Seclusion-Inclusion Nexus from 2007 to 2017. Dependent Variables