Recognizing the limitations of humanitarian funding, donors and international agencies have increased their investments in programs that focus on the skills, experience, and economic values of refugees. The recent emphasis by UNHCR in particular on self-reliance and livelihood programming reflects recognition by the agency of the importance of local integration in sustainable responses to displacement. This report outlines the types of livelihood efforts that aid agencies have undertaken in countries of first asylum and explores the challenges they face in realizing the full promise of these approaches. The section that follows briefly describes the goals and approaches used by assistance providers to support livelihoods. Section III considers the limitations and shortcomings of such programs. Finally, the report concludes with observations on where political and financial investments by aid agencies and donors are most likely to yield rewards.