Abstract Book of the 3rd World Conference on Business, Management, and Economics
Year: 2025
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Financial Vulnerabilities of Afghan Diaspora in Iran: Barriers, Consequences, And Coping Mechanisms
Khanullah Mohammady, Sudha Vepa
ABSTRACT:
Financial inclusion (FI) is still a major challenge for migrants and diaspora communities across the globe, especially those in host countries with restrictive policies. This study explores the financial vulnerabilities of the Afghan diaspora in Iran, focusing on barriers to formal financial services, consequences of financial exclusion, and coping strategies. Iran has always been a major destination for the Afghan diaspora, and since the collapse of Afghanistan in 2021, their numbers have increased rapidly, yet little is known about their financial experiences. The research employs a qualitative method and semi-structured interviews to gather data from the Afghan diaspora with diverse backgrounds, such as documented and undocumented individuals and students. The findings reveal that the Afghan diaspora faces significant systemic financial exclusion, with migrants experiencing legal barriers, institutional discrimination, and reliance on informal financial networks. Consequently, many experience economic insecurity, wage exploitation, and inaccessibility of healthcare services and entrepreneurship opportunities. To cope, they heavily rely on community support, employer-controlled bank accounts, and informal networks. The study highlights the urgent need for inclusive financial policies to reduce the diaspora’s dependence on informal systems and enhance their economic security.
Keywords: Discrimination, economic insecurity, financial exclusion, hawala system, wage exploitation