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1. Global Remittances: Update on the UK-Somali Corridor

Author:
Mohamed Aden Hassan and Giulia Liberatore
Publication Date:
01-2015
Content Type:
Journal Article
Journal:
Bildhaan: An International Journal of Somali Studies
Institution:
Macalester College
Abstract:
In May 2013 Barclays Bank in the UK announced it was shutting down the accounts of four Somali Money Service Businesses (MSBs) includ- ing Dahabshiil, the largest remittance company operating in the Somali regions. Following international uproar, and a Somali diaspora-led grassroots campaign, the UK government took on the task of setting up an Action Group on Cross Border Remittances and a Somali-UK Safer Corridor Pilot Project with the aim of finding a durable solution to the problem. Two years later, however, the Safer Corridor Project has collapsed. Legal remittance flows persist, albeit in a fragile and precarious environment. This paper provides a brief update on the Safer Corridor Initiative, its challenges, and how the money transfer sector has been adapting to the process.
Topic:
International Cooperation, International Trade and Finance, Diaspora, and Legal Theory
Political Geography:
Africa, United Kingdom, Europe, and Somalia

2. Stability and Security Danish Somali Remittance Corridor Case Study

Author:
Danielle Cotter and Tracey Durner
Publication Date:
01-2015
Content Type:
Journal Article
Journal:
Bildhaan: An International Journal of Somali Studies
Institution:
Macalester College
Abstract:
The vast majority of Somalis who have remained in their country con- tinue to rely on remittance money sent from abroad. Although smaller waves of immigration have occurred for many years, prolonged political and economic turmoil coupled with periods of violence and humanitarian crisis have caused the number of Somali immigrants to spike in the last twenty years. This population outflow has resulted in an extensive diaspora network across the globe, with communities established across the Greater Horn of Africa, the Gulf States, North America, and Europe. Estimates on the size of the Somali diaspora range from 1–1.5 million people globally,2 or approximately 14 percent of Somalia’s total population. These diaspora communities have traditionally remained actively engaged on Somali political and economic developments from their adopted countries. One of the diaspora’s primary ties to the homeland comes in the form of remittances—money that is sent on a regular basis to family and friends in Somalia. These funds have often been called a lifeline for the Somali people, covering the costs of needs such as food, education, and health care. Although the exact scale of remittance flows is difficult to pinpoint, estimates have ranged from $750 million to $1.6 billion annually and these funds account for nearly 60 percent of the Somali recipients’ average annual incomes.
Topic:
Security, Diaspora, Political stability, and Immigrants
Political Geography:
Africa and Somalia