Positive Impacts of Refugees’ Settlement on The Economic and Socio-Cultural Diversity of Australia

Research Paper (postgraduate), 2018

16 Pages, Grade: 80


Table of Contents:














The politically and economically turmoiled countries such as Syria, Afghanistan, Iraq, Burma and Myanmar in recent years continue to face conflicts and insecurity arising from civil and military wars, the numbers of displaced people from these nations continue to grow and the most likely host nation has been normally Australia. 2015-2016 statistics show that Australia has been settling refugees (on average 17,555 refugees each year) in its various states. Refugee Council of Australia’s studies show that Australia currently hosts over 740,000 refugees and humanitarian migrants settled by Australia since its federation (1901) which have significant impacts in enhancing the nation’s social, cultural and economic life (RCOA, 2010).

In the case of Australia, the main question that most people keep on asking is whether these refugees are an economic burden or entrepreneurial opportunity for Australian nation. While those who oppose the presence of refugees in Australia argue that these refugees cost the Australian government a significant funding in their settlement. It has also been observed that upon a successful integration into the host countries, the refugees enable themselves to make transitional and transformational changes into new society. The refugees help to make host nations’ cultural, more diverse and enrich social and humanitarian values by projecting multiculturalism into the hosting societies. Refugees most often bring amazing strengths, knowledge, wisdom, resilience, and lived histories to their newly settled lives. Refugee also bring with them their own skills and capabilities and an eagerness to contribute and give back to the hosting communities who welcome them. Refugees who settled in Australia represent a very diverse group of several nations with varying beliefs, cultures, qualifications, skills, family structure and norms. Some have been professionals in their native countries and some might be struggling individuals. However, irrespective of their basic qualification and professional background, they often accept new trades and challenges to grow and permanent settle in their new hosting countries. For example, some belong to academia as teachers strengthening translations in multiple languages of local knowledge and cultures exchanges. While many other refugees have been seen to actively contribute as lawyers, actors, doctors, nurses, artists, hairdressers, social workers, community workers and public servants etc.

RCOA (2010) further expresses that refugees can bring economic benefits by expanding consumer markets for local goods or services, developing new skills, opening new consumer markets by creating fresh market demands, stimulating economic growth within the local regions, or filling empty job positions where the locals have ignored working. Other ways through which refugees boost the economies of the host nation is through “increasing economies of scale, supplying labor and stimulating labor markets in ageing populations, or even fostering innovation and flexibility that are much needed by the local industries for industrial productivity” (RCOA, 2010, p. 3). It is for such reasons that this study seeks to explore the perceived positive impacts of the refugees on Australia as the host nation. The entrepreneurial spirits characterising refugees are perhaps unsurprising, given the resilience and courage that they have had to show in order to make it this far (Refugees Contribute by Refugee Council of Australia 2017).

Despite the frequently-voiced misgivings of those against immigration, refugees and asylum seekers are most often quickly employed in the labor market, generating income with which to support their families as well as revenues for the state in the form of taxes (desiderio,2016). According to Zucker 1983, cited in Stevenson 2005 that “there may be short-term costs as refugees are resettled and adjust to their new Surroundings but, once successful resettlement has occurred, refugees are able to quickly make permanent cultural, social and economic contributions and infuse vitality and multiculturalism into the communities into which they are resettled. Although refugees can bring short-term costs, they are able to bring long-term benefits to their new country or region”.


Main objectives of our research are as follows:

1. To investigate how refugees and humanitarian immigrants possibly influence the economic growth of Australia through their perceived entrepreneurial abilities.

2. To examine whether refugees are beneficial to the Australia’s cultural and social growth because of multicultural integration.


Through our Qualitative research based on the extensive and detailed literature review, we will find out answers to the following two structured questions:

1. How does a developed country such as Australia experience positive impacts on its economic growth due to the refugees’ entrepreneurial activities?
2. How refugees are beneficial to the cultural diversity of Australia as their host country?


It is widely known that refugees are treated with suspicion in many nations that seek to protect their nationalism from foreign influences or foreign interferences. More often, the host nations will respond coldly, not knowing how these asylum seekers would finally acculturate and form an important part of the mainstream culture. The study is expected to inform Western particularly, Australians on how refugees can contribute positively to the economic growth of the host nations, unlike the common perceptions that refugees drain out host nations economically. At the end of this research study, it is expected that the literary and academic research information gathered here, will benefit policymakers, politicians and critics in shaping and changing their attitudes towards the refugee. It is also expected that this research study will help the public to change their perceptions against the foreigners who come to their nations as refugees. Further, it would also help us to understand the impacts of refugees on a host nation socially and economically.

This research study would be important in informing host nations that refugees are not an economic burden as often perceived. Instead of receiving refugees with great contempt and dislike, policymakers of these nations will, through this study, understand that if refugees are given opportunities in their nations, they can create significant economic and cultural benefits. Therefore, instead of treating them with dislike and disapproval, these nations will evaluate their internal policies on refugees and immigrants to offer opportunities for refugees and attract unique benefits. Perhaps the nations with strict regulations against refugees may reconsider changing their hard stance in order to welcome refugees for the betterment of the economic, social and cultural transformation of the locals.


In our research report, we will define distinctive variables such as refugees, economic advantages, social and multicultural impacts and host nations. Also, we will carry out a comprehensive literature review to prove the following two hypotheses:

1. There is a positive relationship between the refugees and economic growth of Australia.

2. There is a positive relationship between the refugees and multicultural transformations of Australia.

Our so far literature reviews indicate a mixed version of positive and negative relationship and to find out the level of inclination towards one governing aspect is quite challenging. Likewise, some data confirms the positive relations amongst identified variables while few information indicate negative impacts on refugees. For example, the study of Connor (2010) illustrated that, due to lower language proficiency and education experiences coupled with poor mental and physical health and living in unfavorable neighborhoods, refugees have less economic output in employment, occupation and earnings compared with other immigrants. Zetter 2012 also argues that the literature considers refugees as a burden because of their additional costs to an already hard-pressed population, and as impeding economic growth, distorting economic markets, causing environmental degradation and putting political constraints on already fragile and conflict-affected countries.

On other hand, According to Kloosterman. R & Rath. J 2001 and Nathan & Lee 2013; minority and migrants includes a positive correlation with companies, which offers new business opportunities. Some well-known people in Australia who have come from a refugee background are (source: Refugee contributions published on Road to Refuge):

- Anh Do (Comedian/ Author)
- Les Murray (Sport- football)
- Frank Lowy (Property owner)
- Tan Le (Technology)
- The Honourable James Spigelman (Law)
- Majak Daw (AFL)
- Judy Cassab (Artist)
- Dr Karl Kruszelnicki (Radio DJ/ Scientist)
- Huy Truong (Dot.com manager)

Similarly, according to a literature review conducted by the Refugee Council of Australia for the Department of Immigration and Citizenship and published as “Economic, Civic And Social Contributions Of Refugees And Humanitarian Entrants” clearly indicated that “Refugee communities have been highly successful in integrating into Australian society and making significant economic, social and civic contributions. For example, the Vietnamese refugees who arrived in the 1970s and 1980s have flourished remarkably after settling in Australia, despite the significant language barriers and cultural adjustment they faced on arrival. Today, the Vietnamese are well represented in the business sector and play an important role in broadening social, cultural and business relationships between Australia and South-East Asia”


In a comprehensive report on the impact of refugees, RCOA focused on several issues, ranging from economic, cultural, to social transformations associated with the presence of refugees in Australia. The research by RCOA used local data from various offices associated with the issues of immigrants and refugees to determine the extent to which the presence of refugees affects the economic, social and cultural statuses in Australia. In this research, it was discovered that the “the refugees and humanitarian migrants settled in Australia since Federation have had a profound impact in enhancing the nation’s social, cultural and economic life” (RCOA, 2010, p. 3). The research by RCOA further highlighted that unlike other nations where refugees have been received with condescension and disregard, the Australian refugees have been offered unique opportunities to excel in various fields of interests. It is through offering them with a peaceful resettlement that they have managed to explore opportunities. The Australian Government established a policy on the move to resettle the local Afghan employees who were faced with the risk of harm because of their employment. This move was designed to support Australia’s agenda and mission in Afghanistan (Koser & Marsden, 2013). This factor also calls for more support from the G20 leaders to provide more substantial and predictable support to Australia as a host of refugees (Luecke & Schneiderheinze, 2017).

According to RCOA (2010), “Australia’s refugees and humanitarian entrants have found success in every field of endeavor, including the arts, sports, media, science, research, business and civic and community life” (p. 3). However, the issue that has kept many people questioning is how these refugees suddenly become entrepreneurial, yet they normally come to Australia as needy people relying on humanitarian support for survival, including their basic needs. In the research of RCOA (2012), it was discovered that refugees comprise of a diverse group of skilled people, with varied skills and potentials, and professional competencies, which when the refugees are allowed to exercise within the regional labor and business markets, can bring significant economic benefits to the host nations. Through the study of RCOA, it was discovered that refugees and humanitarian immigrants have an important impact on the host nation’s economy because they boost labor that is much needed for industrial growth and economic development.

Countries that host refugees often experience positive impacts on the economic growth by the economic needs of host countries. Firstly, the refugees are a very diverse group of skilled people, some of whom are teachers, lawyers, nurses and so on (Luecke and Schneiderheinze, 2017). Furthermore, the spirit of entrepreneurial activities by them shows that there is a scope of benefits to their host nations (Moffat and Newbold, 2017). According to Nathan and Lee (2013), studies have shown that refugees act as a link between their migrant status and entrepreneurial behavior in their host countries. They display entrepreneurial spirit which is linked to identifying and exploiting new business opportunities due to lack of economic opportunity in the labour market or within organizations (Kloosterman and Rath 2001, as cited in Nathan and Lee 2013). Allowing refugees to access employment opportunities in the host nations helps to utilize their knowledge, skills and training that they bring with them (Konile – Seidl and Bolits 2016). The complementary aspects of hope and expectation in skilled labour migration results in a win-win situation for both the refugees and the host countries (Bemak and Chung, 2015). For instance, the skilled migration policy of Australia has improved the employment rates of the Australian economy (Hawthorne 2005). An amazing explanation of Refugees’ entrepreneurial activities and in-built traits was given on 2000 Business Review Weekly’s annual “Rich 200” list which is evident to show that five of Australia’s eight billionaires were people whose families had originally come to Australia as refugees (Stevenson 2005). Secondly, aide money provided to host countries as means of supporting refugees is infused into the local economy (Taylor. et al, 2016).

Apart from their entrepreneurial and business ideas, the refugees have become an important part of the Australia’s economy because they have provided a perfect skill blend that has been important in fostering innovation and flexibility in the job market. Through the 2005 research by Stevenson, in which data from various sources of humanitarian organizations was gathered to write a systematic review of the impact of refugees on the host nations, the author revealed a lot about the economic influence of the skills of refugees. In this research, Stevenson (2005) argued that refugees are crucial in filling local or regional labor demand because they are hard-working and economically productive in the neglected areas of the labor sector. In this research, Stevenson (2005) further argued that most of the refugees would not want to return to their homes, and by reflecting the awful situation back at home, they would often work hard to make themselves appear economically relevant and become integrated into the host nation.

Concerning the perception that refugees come to occupy the job positions of the host citizens and displace them from their work, Williams (1995) provided important facts on the relationship between immigrants, refugees and their impact on the host nation. Williams (1995) argued that immigrants and refugees do not contribute to an increase in the unemployment rates in the host nation, but they have a relatively small impact on the prices and wages in the host nation. While quoting the work of Williams, Stevenson (2005) highlighted that, “immigration has a relatively small impact on the balance of payments in the long-run and in the longer-term immigrants are net contributors to Commonwealth and local government revenues” (p. 7). With the study of Williams, it is possible to argue that refugees who successfully resettle in a foreign nation end up becoming important government assets because they boost the host nation’s tax and revenues.

The above notion was reinforced by the study of Stevenson (2005), which argued that most of the refugees come to Australia at their young and productive phase of life and this is normally an opportunity for the Australian government because when they resettle and integrate successfully, they pay taxes up to their old age when they now begin relying on government for support. Another important notion concerning the economic impact of the refugees on the host nation is the idea that refugees influence the market of goods and services. Apparently, there is growing evidence that the presence of refugees or immigrants in a host nation has an important impact on the demand and prices of goods and services in the local markets. The research of Williams (1995) revealed that refugees have the influence on the prices and demand of the local products and services because they expand consumer markets for these local products or services.


“The Social Inclusion agenda will not be fairly implemented is multiculturalism is not recognised as the underpinning concepts of the social inclusion agenda. Social cohesion will not be a reality unless the principles of multiculturalism and social inclusion will be implemented. The recognition of Australia as a multicultural society and the recent released of the Multicultural Policy have laid the foundation of a more fair and equal society” (NSW SLASA submission to the Joint Standing Committee on Migration on The Economic, Social and Cultural Impacts of Migration in Australia, 2011).

Refugees bring many benefits by way of multiculturalism and social diversity to host nations. To begin with, many countries that have received refugees have had a positive change in their cultural diversity (Willott and Stevenson 2013). As noted by Collins, “there are many aspects of migration that are impossible to quantify numerically –such as diversity in cultural life. The abundant anecdotal evidence should not be ignored when considering the many contributions of refugees to Australia’s economy”. Refugee Council of Australia 2017 stresses that “Once, successful integration has occurred refugees are able to quickly make permanent cultural, social and economic contributions and infuse vitality, humanitarian values and multiculturalism into the communities into which they are resettled”.

In fact, Beemer (2016) demonstrates that the culture of South-East Asia was affected by infusion of the refugees’ culture and their association with the outside world changed dramatically. Refugees bring in their culture by way of music, food and dance. As such, they established an exciting exchange of culture that assisted tremendously to understand more about South-East Asia society (Beemer, 2016). In addition, the communities established by them have been highly successful in integrating into society and making significant social and civic contribution (Renner and Senfit 2013). For instance, In the 1970s and 1980s, there were Vietnamese refugees who arrived to settle in Australia and despite the extreme language barriers and cultural diversity (Richard Parsons 2017). However, the Vietnamese, today, are playing an important role in expanding cultural, social and business relationships between Australia and South-East Asia (Nguyen, Chau 2015). It is evident how the refugees bring with them new cultures and communities that benefit host nations.

Those who support the notion that refugees are of great benefit to a host nation have emerged with a popular argument that when refugees are resettled successfully, the process of acculturation begins. It is through their successful acculturation that the host nation becomes culturally integrated and socially diverse (RCOA, 2011). As observed in the research conducted by the Refugees Council of Australia (RCOA), refugees coming from Syria, Afghanistan, Myanmar and other nations affected by conflicts have contributed immensely to the growth of cultural diversity and multiculturalism. Most of the refugees who come to Australia have managed to acculturate and integrate with the local Australian communities and share what they have in common or engage in different cultural exchanges (RCOA, 2011). A blend of cultural practices has enabled Australia to consider the cultural exchange as an aspect of social and economic significance (RCOA, 2011).

With regards to cultural exchanges, most of the refugees coming to Australia are good in various sports and arts. Sport is one of the main cultural elements that have helped the foreigners and the Australians to integrate socially and culturally, with football, tennis, rugby, surfing, and basketball in specific, being the main sports that are attracting the development of positive relationships between the locals and the foreign refugees (RCOA, 2011). The 2003 study of Colic-Piesker and Walker can serve as an example of how acculturation of the refugees has helped the Australian communities to have a rich and diverse cultural identify that is essential for social and economic success. The study portrayed how refugees of Bosnia and Herzegovinian resettled in Australia, which offered remarkably peculiar experiences, but later proved to be a home for most of those who assimilated successfully.

Using data of the Bosnia and Herzegovinian refugees who were resettled in Australia’s top cities, Sydney and Perth in 1990, Colic-Piesker and Walker (2003) argued that upon forced immigration from their homelands, refugees abandon their cultural identities and seek to reconstruct their identities in the foreign land. As a result of acculturation, Colic-Piesker and Walker (2003) argue that Herzegovinian refugees who resettled in Australia ended up losing their cultural identity, but as a result, they managed to integrate into the native culture and quickly helped to boost the cultural identity of the natives. The assimilation process helped the Herzegovinians to communicate with the locals, share experiences, boost local cultural integration and boost the local business and economic activities.

The growth of Sydney as a megalopolis has resulted from the massive immigration trends that occurred in the 1980s and 1990s. While narrating the story of how the Herzegovinians assimilate into the mainstream culture and share important life experiences while still enhancing social diversity, Colic-Piesker and Walker (2003) revealed that newcomers face a challenge in assimilating, but they finally acculturate and make an important part of the Australian community. According to Colic-Piesker and Walker (2003), “newcomers need to learn the ways everyday life is organized, the prevalent communication styles, appropriate behavior in the work environment, and many other things that cultural insiders take for granted” (p. 344).


Our current research project is exploratory type and purely based on the available literature review. Given the details and extents, this research study is very subjective, and its discussion and conclusion will depend on the accessible data, relevant information and applicable academic journal and previous research papers. Our study will be focused on non-quantitative type of analysis without any defined analytical questionnaires. Our research work will mainly include our personal observations and extensive literature reviews. At the end of literature analyses, we will also combine the existing research findings, our own experiential learning and personal observations to conclude about the research topic.

Initially, we thought to prepare and conduct self-structured, semi-structured, and unstructured open-ended interviews involving our anticipated target respondents including forced immigrants, refugees or asylum seekers who have been fully resettled by the refugee resettlement programs in Australia, especially those who were settled in different parts of the nation longer enough to have fully assimilated into the Australian society. For a better research, we also thought to involve those respondents who must have lived in Australia for more than 10 years since their initial resettlement for gathering an improved understanding to have respondents to express their opinions, facts, experiences and perspectives on how successful their journey of assimilating into the mainstream Australian way of life has been over the days of their stay in Australia.

However, considering the short duration of our research unit and being an individual member of our self-team would not be adequate to search for suitable candidates/ expected interviewed refugees for our research work. Further, it seems extremely difficult to recognize their true feelings especially, in the absence of common communication understanding. Planning on arranging and carrying out interviews of various nations’ refugees in Australia, we also need to contact relevant government departments which would be difficult, sensitive and time taking. Therefore, being logical and more rational to the available unit’s time line and boundaries of our research work, we excluded the above idea of personal interviews and hence, our research work will be entirely focused on available academic literature, research articles, economical journals and the Australian Government official portals.


Abdul is a native Arabic speaking student who arrived in Canberra-ACT a couple of years ago. English language was a great barrier for him to seek admission in higher education colleges/ universities in Australia and seeking work was almost impossible. He took admission in CIT Reid-ACT to learn English and qualify himself for university admission. There he had met several people from diversified background amongst few were refugees from Afghanistan, Iran and Syria. We shared our lives and future to successfully settle in Australia. Our discussions with them and counter arguments that refuges are burden on Australian economy and they must face challenges in the social and cultural interactions. Such communication and productive discussion raised our concerns to gather the supporting documents and evidences that refugees are beneficial to host countries and can play a vital role in the economic and diversified social structure of a hosting nation. This motivates us to carry out a detailed research to confirm the answers of such questions. Also, it become our personal interest when it involves our friends as well.


This research study will be mostly focused on the relevant available literature review about our research topic in addition to our individual experiences during our interaction to refuges in CIT-Reid campus in Canberra. Due to the time limitation allowed by BGL for this research project during semester-1, 2018, this research will not include interviews with actual refugees in Australia. Despite, our research will find answers to identified two questions through relevant literature reviews. Further, we will not develop any model or framework to establish relations between identified variables as mentioned above. Our research is very subjective and might not apply to other nations and hosting countries.


From a research point of view and considering the sensitive nature of our topic, it is important to understand that providing asylum to refugees is the most humanitarian act to be undertaken by all the nations of the world in order to make world a better place. These are people looking for an escape from the wars, genocide or social and religious persecution. The mindset of refugees is extremely motivated, enterprising and able-bodied and all they are looking for is a safe place to live and grow with their families. Despite unparalleled generosity demonstrated by host developing countries for prolonged periods, they also experience long-term socio-economic, political, and environmental effects. The refugees produce significant economic effects, both positive and negative (Coser & Marsden 2013. Literature also reveals that “there may be short-term costs as refugees are resettled and adjust to their new surroundings but, once successful resettlement has occurred, refugees are able to quickly make permanent cultural, social and economic contributions and infuse vitality and multiculturalism into the communities into which they are resettled. Although refugees can bring short-term costs, they are able to bring long-term benefits to their new country or region” (Zucker 1983, cited in Stevenson 2005). On contrary, few researchers also argue that the lack of proficiency in the host country’s language, to unemployment or to the lack of acceptable equivalent educational background which leads to culture shock, trauma, helplessness and decreased social status (Bemak & Chung, 2015; Renner & Senft, 2013; Willott & Stevenson, 2013).

To sum up, economic effects are heterogeneous depending upon the economic structure of host countries which in case of Australia is more inclined towards multicultural diversity, entrepreneurial activities, innovation and flourishing of local businesses.


1. Bosnian Refugees in Australia. Journal of Community & Applied Social Psychology, 13(9), 337–360.

2. Colic-Piesker, V., & Walker, I. (2003). Human Capital, Acculturation and Social Identity:

3. Refugee Council of Australia [RCOA]. (2010). A Bridge to a New Culture Promoting the participation of refugees in sporting activities. Retrieved from http://www.refugeecouncil.org.au/docs/resources/reports/A_Bridge_to_a_New_Culture_abridged.pdf

4. Refugee Council of Australia [RCOA]. (2010). Economic, civic and social contributions of refugees and Humanitarian entrants-literature review. Retrieved from https://www.dss.gov.au/sites/default/files/documents/01_2014/economic-civic-social-contributions-refugees-humanitarian-entrants-literature-review_access.pdf

5. Stevenson, R. (2005). Hopes Fulfilled or Dreams Shattered? From resettlement to settlement Conference November 23rd- 28th, 2005. Retrieved from https://www.arts.unsw.edu.au/media/FASSFile/Refugees_and_Economic_Contributions.pdf

6. Williams, L. (1995), Understanding the Economics of Immigration, Bureau of Immigration and Population Research, Department of Immigration and Ethnic Affairs, Canberra.

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11. Bemak, F., & Chung, R. C.-Y. (2015). Counseling refugees and migrants. In P. B. Pedersen, W. J. Lonner, J. G. Draguns, J. E. Trimble, & M. R. Scharron-del Rio (eds.), Counseling across cultures (7th ed., pp. 323–346). Thousand Oaks, CA: Sage.

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13. Willott, J., & Stevenson, J.(2013). Attitudes to employment of professionally qualified refugees in the United Kingdom. International Migration, 51, 120–132. doi:10.1111/imig.12038

14. Kuschminder, K., and K. Koser 2016 “Afghans in Greece and Turkey Seeking to Migrate Onward: Decision-Making Factors and Destination Choices”, Migration Policy Practice, 6(3): 30–35.

15. Connor, P. 2010 “Explaining the Refugee Gap: Economic Outcomes of Refugees versus Other Immigrants”, Journal of Refugee Studies, 23(3): 377–97. https://doi.org/10.1093/jrs/feq025.

16. Zetter, R. 2012 “Are refugees an economic burden or benefit?” Forced Migration Review, (41), 50.

17. Zucker, N (1983). Refugee Resettlement in the United States: Policy and Problems. Annals of the American Academy of Political and Social Science, 467, 172-186.

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Positive Impacts of Refugees’ Settlement on The Economic and Socio-Cultural Diversity of Australia
University of Canberra  (School of Management, Faculty of Business, Government & Law)
Master of Business Administration
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ISBN (Book)
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Human Rights, Refugees, Economic, Australia, Diversity, multiculturism, asylum seeker, immigrants
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Muhammad Yasir Arslan (Author)Abdulmajeed Ali Al Qahtani (Author), 2018, Positive Impacts of Refugees’ Settlement on The Economic and Socio-Cultural Diversity of Australia, Munich, GRIN Verlag, https://www.grin.com/document/419497


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