This brief focuses on the period of displacement and seeks to outline the impact of refugees on neighboring countries, including the developmental implications of forced displacement. The study has two main sections. The first section describes trends in the distribution of refugees in asylum countries. A series of graphs and tables highlights the fact that the largest percentage of refugees is found in countries neighboring their country of origin, most of which are middle-income countries. The second section discusses how neighboring countries that host refugees for protracted periods experience long-term economic, social, political, and environmental impacts. Furthermore, it also shows that in terms of the impacts and the opportunities that the presence of refugees create, there can be winners and losers among both the displaced and their hosts. Finally, this brief presents examples of global experience of development interventions that have focused on mitigating the negative aspects of large-scale and protracted displacement and strengthening the productive capacities of refugees in host countries.