Recommended reading
Migrant remittances in the context of crisis in Somali society: a case study of Hargeisa
Current trends and future direction for migrant remittances in Somali society
Authors:
A. Lindley
Publisher:
Humanitarian Policy Group, ODI, 2006
Observing that migration and remittances have been an important feature of Somali society since the breakout of civil war in 1988 and the collapse of the state in 1991, this paper argues that data on the scale and effects of remittances remains limited. Using Hargeisa as a case study, the author finds that remittances are often sent by brothers and sisters, mostly from the Middle East, North America and the UK, and often go to women with children living in extended family households. Remittance receiving households tend to be better off and are from clans rather than minority groups.
The observed effects on recipient households in Hargeisa include:
- remittances can change household relationships and roles depending on who receives the money
- half of the surveyed households were reliant on remittances
- people generally emigrate in times of political strife, and send remittances when the family experiences a decline in fortunes
- people receiving regular remittances are protected from exchange-rate fluctuations and are often better able to assist relatives in rural areas in times of crisis.
Given these observations, the author underscores the importance of keeping Somali remittance channels open, in the increasingly regulated global financial system. The author further notes that income shocks in Somalia often translate into financial stress for migrants expected to send remittances. While their wages are in absolute terms are much higher than those of Hargeisa residents, their disposable income after covering basic needs is often very limited. The author concludes that the impact of remittances on senders in the diaspora, and the sustainability of remittance transfers at their current levels, remains unexplored.
