Abdirahman Mo'allim Ali - Academia.edu (original) (raw)
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Somalia is one of the remittance-dependent countries in the world; it also faces a unique set of ... more Somalia is one of the remittance-dependent countries in the world; it also faces a unique set of challenges in its effort to maintain remittance inflows. This study examined the effect of remittance suspension on Somali economy. The Somali Remittance Sector referred to as Hawala or Money Services Businesses, targets immigrant communities in Worldwide. It allows for the transfer of funds from the Somali Diaspora, and facilitates trade between Somalia and the rest of the world. The remittance system has been operating in Somalia since the oil boom in the Gulf in 1970s, and Somalis went to the Gulf States as migrant laborers.
The study adopted descriptive and causal research design to give consideration to the research questions the information was obtained from primary sources using questionnaires as research instrument. The study targeted a population of 300 in Mogadishu. This study was conducted through survey design, using questionnaire as instrument of the research to collect data from 171 respondents and answered completely. The data was analyzed using descriptive statistics through SPSS software.
The most of the respondents strongly agreed that the role remittance in Somalia is very important for all Somalis. The study also showed that majority of the respondents agreed that the relationship of remittance suspension and Somali economy generally negative and damage both the macro and micro level. The study revealed that in the absence of governance and banking sector, the Somali remittance firms are the only available channels for Somalis to transfer money.
The study recommends that establishing an international advisory board overseeing the Central Bank’s financial dealings; Functioning Central Bank of Somalia is very important with rooting out corruption in public institutions; Passing and implementing a conventional banking act and anti-money laundering regulations; Establishing a registration and oversight system for international money transfers and Risk Guarantee Mechanisms, such as insurance to cover sudden changes in money transfer restrictions, loss of property, breaches of contract, etc.
Finally, researchers found direct relation between the effects of remittance suspension and Somali economy.
Somalia is one of the remittance-dependent countries in the world; it also faces a unique set of ... more Somalia is one of the remittance-dependent countries in the world; it also faces a unique set of challenges in its effort to maintain remittance inflows. This study examined the effect of remittance suspension on Somali economy. The Somali Remittance Sector referred to as Hawala or Money Services Businesses, targets immigrant communities in Worldwide. It allows for the transfer of funds from the Somali Diaspora, and facilitates trade between Somalia and the rest of the world. The remittance system has been operating in Somalia since the oil boom in the Gulf in 1970s, and Somalis went to the Gulf States as migrant laborers.
The study adopted descriptive and causal research design to give consideration to the research questions the information was obtained from primary sources using questionnaires as research instrument. The study targeted a population of 300 in Mogadishu. This study was conducted through survey design, using questionnaire as instrument of the research to collect data from 171 respondents and answered completely. The data was analyzed using descriptive statistics through SPSS software.
The most of the respondents strongly agreed that the role remittance in Somalia is very important for all Somalis. The study also showed that majority of the respondents agreed that the relationship of remittance suspension and Somali economy generally negative and damage both the macro and micro level. The study revealed that in the absence of governance and banking sector, the Somali remittance firms are the only available channels for Somalis to transfer money.
The study recommends that establishing an international advisory board overseeing the Central Bank’s financial dealings; Functioning Central Bank of Somalia is very important with rooting out corruption in public institutions; Passing and implementing a conventional banking act and anti-money laundering regulations; Establishing a registration and oversight system for international money transfers and Risk Guarantee Mechanisms, such as insurance to cover sudden changes in money transfer restrictions, loss of property, breaches of contract, etc.
Finally, researchers found direct relation between the effects of remittance suspension and Somali economy.