From Displacement to Resilience: Aid, Economic Recovery, and Social Cohesion in Post-War Iraq

Livelihoods programs in displacement-affected communities are designed to stimulate economic activity, but their effects on social cohesion are ambiguous. This project investigates the effects of a $2,000 one-time grant entrepreneur support program on both economic activity and social cohesion in displacement-affected communities in Iraq. The research explores two main questions: first, whether economic recovery programs improve or erode social cohesion among hosts, returnees, and internally displaced persons (IDPs) in post-conflict settings; second, how the program indirectly impacts community members connected to beneficiaries through social and economic networks. By examining factors such as interdependence, economic opportunities, inequalities, grievances, intergroup contact, and competition for resources, the study aims to understand the mechanisms linking economic and social inclusion. Sampling entrepreneurs' networks and mapping program exposure will reveal indirect effects on the broader community, providing comprehensive evidence on how recovery programs influence both economic and social well-being.