Since the 1980s, Somali society has experienced a protracted crisis, or series of crises, with devastating consequences for ordinary people. At the macro level, there are the political problems of factional fighting and an ongoing crisis of state institutions, as well as the economic problems of drought, disruption of the livestock trade by restrictions in foreign markets, and severe local currency depreciations. Within and often linked to these wider political and economic contexts are the personal crises of people’s everyday lives: loss of assets, livelihood deterioration or collapse, and experience of violence, death, displacement, illness and family break up.
After the outbreak of civil war in 1988 and since the collapse of the state in 1991, hundreds of thousands of people have fled Somalia. At least one million now live abroad, in neighbouring countries, or further afield. Many of these migrants around the world maintain contact with relatives back home and in the refugee camps and many remit money to support them. Today, these remittances are a major source of external revenue at the macroeconomic level and a significant source of income for a substantial minority of households.
This paper examines how remittances affect households that receive them. The first step was to review relevant literature and available statistical sources on migration and remittances in Somalia. There are several secondary sources, including national- level surveys and previous research reports that provide useful contextual information on livelihoods in Somalia, and studies on the Somali diaspora. There are also a few primary research sources specifically relating to emittances. The second step was to undertake exploratory research in Hargeisa, one of the largest Somali cities and the capital of present-day Somaliland. Hargeisa was selected because of the reported importance of remittances in the local economy and the limited security issues confronting research here compared with other locations. The research included consultations with people who work for remittance companies, non-governmental organisations (NGOs) and government bodies; interviews with a small group of Hargeisa residents; and a survey of over 500 people collecting remittances from money transfer outlets in the city.
This paper is divided into two parts. The first part amalgamates available information on remittances, reviewing the role of migration and remittances in Somali society historically and since the collapse of Somalia in 1991, and assessing the scale of, and the significance given in the literature o, remittance flows. The second part is a case study of Hargeisa, establishing the demographic characteristics and socio-economic situation of people receiving remittances, examining remittance patterns, relationships and geography, and exploring the role of remittances in the lives of recipients and the uses to which his
money is put. Lastly, evidence on the role of remittances among people oping with crises is explored. 1 This paper uses the term ‘Somalia’ to specify the Republic of Somalia, as of 1960, and ‘Somaliland’ to denote the self-declared independent Republic of Somaliland as of 1991.
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Migrant remittances in the context of crisis in Somali society A case study of Hargeisa
