Yıl 2018, Cilt 2, Sayı 3, Sayfalar 1 - 37 2018-09-30

Remittances and Poverty Reduction in Somalia

Erol BULUT [1] , Abdiqadar Abdigani MOHAMED [2]

46 84

The flow of remittances to Somalia makes 23% of the whole GDP of Somalia. It means that remittances contribute to the Somali GDP more than Foreign Aid (FA) Official Developmental Assistants (ODA) and also the Foreign Direct Investment (FDI) do. That shows how crucial remittances are for the people of Somalia as an external source of financing. Therefore, remittances play a key role in decreasing the extreme poverty and increasing the social development as well. That is because of the increase of the income of the Somali families receiving remittances. As families receive remittances it makes possible for them to meet their basic needs and requirements in life. Remittances also play a crucial role in employment and creating more jobs for the Somalis back home. Somali Diaspora living abroad also bring new skills, opportunities and profitable business ideas back home and that slowly but surely stimulates the employments and increases the incomes of the families living back home, Somalia.

This study will analyze the correlation between remittances and poverty in Somalia. The data which is going to be used is that of secondary data from surveys made by World Bank which is called Somali High Frequency Survey (SHFS), International Monetary Fund (IMF) and UNICEF. The relations between remittances and poverty headcount ratio is not significantly supported by the case of Somalia. Therefore, remittances in Somalia has no a tangible impact on poverty headcount ratio in Somalia. But when it comes to the poverty gap and the poverty severity in the regions of Somalia, it seems that remittance has an active role in reducing both of them more than it does in the poverty headcount ratio in Somalia. Also there is no a significant relation between remittances and the inequality among Somalis.

Remittances, Poverty Headcount Ratio, Poverty Gap, Poverty Severity
  • Acosta, P., Fajnzylber, P., & Lopez, H. (2007), “The Impact of Remittances on Poverty and Human Capital: Evidence from Latin American Household Surveys” (World Bank Policy Research Working Paper No. 4247). Washington, D.C.: The World Bank.
  • Adams, J. (1991), “The Effects of International Remittances on Poverty, Inequality and Development in Rural Egypt” (Research Report 86). Washington, D.C.: International Food Policy Research.
  • Adams, J. (1998), Remittances, “Investment, and Rural Asset Accumulation in Pakistan”, Economic Development and Cultural Change, 47, 155-173.
  • Adams, J. (2004), “Remittances and Poverty in Guatemala”, (World Bank Policy Research Working Paper No. 3418). Washington, D.C.: The World Bank.
  • Adams, J., & Page, J. (2005), “Do International Migration and Remittances Reduce Poverty in Developing Countries?” World Development, 33(10), 1645-1669.
  • Adams, J. (2006), “Remittances and Poverty in Ghana”, (Wolrd Bank Policy Research Working Paper No. 3838), Washington, D.C.: The World Bank.
  • Adams, J. (2011), “Evaluating the Economic Impact of International Remittances on Developing Countries Using Household Surveys: A Literature Review”, Journal of Development Studies, 47(6), 809-829.
  • Adams, J., Cuecuecha, A., & Page, J. (2008), “The Impact of Remittances on Poverty and Inequality in Ghana”, (Wolrd Bank Policy Research Working Paper No. 4732). Washington, D.C.: The World Bank.
  • ADB (2010), “Key Indicators for Asia and the Pacific 2010”, Manila: Asian Development Bank.
  • Addison, T., Mursheid, S. M. and Le Billon, P. (2000), “Finance in Conflict and Reconstruction”, Finance and Development Research Programme Working Paper No. 120. Manchester: IDPM.
  • Adhikari, A. (2010, December 30), “2010 Turns into ‘The Year of Banda’”, The Kathmandu Post, Retrieved January 10, 2014.
  • Ahmed, I. I. (2000), "Remittances and Their Economic Impact in Post-war Somaliland", Disasters, 24(4): 380–389.
  • Al-Sharmani, M. (2004), “Refugee Livelihoods - Livelihoods and Diasporic Identity Constructions of Somali Refugees in Cairo”, New Issues in Refugee Research Working Paper No. 104. Geneva: UNHCR Evaluation and Policy Analysis Unit.
  • Amuedo-Dorantes, C., & Pozo, S. (2004)., “Workers’ Real Exchange Rate: A Paradox of Gifts”, World Development, 32, 1407-1417.
  • Amuedo-Dorantes, C., & Pozo, S. (2006), “Remittance Receipt and Business Ownership in the Dominican Republic”, The World Economy, 29(7), 939-956.
  • Anyanwu, J., & Erhijakpor, A. (2010), “Do International Remittances Affect Poverty in Africa?”, African Development Review, 22(1), 51–91.
  • Awdal News Network (2003), “Remittance Companies Stiffly Cautioned against Status Change”, Awdal News. 21 June. Available at http://www.awdalnews.com.
  • Bang Nielson, K. (2004), “Next Stop Britain: The Influence of Transnational Networks on the Secondary Movement of Danish Somalis”, Working Paper No. 22, Brighton: Sussex Centre for Migration Research.
  • Besteman, C. and Cassanelli, L. V. (eds) (1996), The Struggle for Land in Southern Somalia, London: HAAN Publishing. Bradbury, M. (2002a), Somalia: The Aftermath of September 11th and the War on Terrorism, Unpublished report for Oxfam.
  • Castaldo, A., & Reilly, B. (2007), “Do Migrant Remittances Affect the Consumption Patterns of Albanian Households?”, South-Eastern Europe Journal of Economics, 1, 25-54.
  • Cattaneo, C. (2009), “International Migration and Poverty: Cross- Country Analysis”, Retrieved December 7, 2011, from http://www.dagliano.unimi.it/media/ Cattaneo Cristina.pdf.
  • Chequepoint Money Transfer (2004), "Memorandum Submitted by Chequepoint Money Transfer to the Migration and Development International Development Select Committee", Available at http://www.publications.parliament.uk.
  • Devkota, J. (2015), “Impact of Migrants’ Remittances on Poverty and Inequality in Nepal”, Forum of International Development Studies, 44, 36-53.
  • Duale, A-K. F. (1998), “Reconstructing Life in the Diaspora: British Immigration Law and Policies and Somali Patterns of Adaptation”, In Variations on the Theme of Somaliness, Turku: Åbo Akademi University.
  • Duffield, M. (2001), Global Governance and the New Wars: The Merging of Development and Security, London: Zed Books.
  • Duhul, S. F. (2002), “Somalia: Remittance Firms Continue Services despite Constraints”, Arab News, Available at http://www.realpuntlander.com.
  • European Commission (EC) (2002), "European Commission Strategy for the Implementation of Special Aid to Somalia 2002-2007", Brussels: EC.
  • Economist (2003), “Britain's Somalis - Muddled Minority”, The Economist, 27.
  • EIU (2002), “Country Report: Ethiopia, Eritrea, Somalia and Djibouti”, London: The Economist Intelligence Unit.
  • EIU (2004), “Somalia Country Profile 2004”, London: The Economic Intelligence Unit.
  • El Qorchi, M., Wilson, J. F. et al. (2002), “Informal Funds Transfer Systems: An Analysis of the Hawala System”, Washington DC: International Monetary Fund and World Bank.
  • Eldin Eltayeb, S. (2004), "Central Bank Registers All Somali Remittance Agents", Khlaaj Times (Dubai), 25 June.
  • FATF (Financial Action Task Force) (2001), “Special Recommendations on Terrorist Financing. Paris”, FATF Secretariat.
  • Golden, T. (2002), "A Nation Challenged: Money; 5 Months After Sanctions Against Somali Company, Scant Proof of Qaeda Tie", New York Times (New York), 13 April.
  • Gundel, J. (2003), “The Migration-Development Nexus: Somalia Case Study”, In Van Hear, N. and Nyberg Sørensen, N. (eds), The Migration-Development Nexus, Geneva: IOM.
  • Hansen, P. (2004), “Migrant Remittances as a Development Tool: The Case of Somaliland”, Migration Policy Research Working Paper Series No 3. Copenhagen: University of Copenhagen, Department of Policy Research and Communications.
  • Home Office (2003), “Control of Immigration Statistics”, 2002. London, HMSO.
  • Horst, C. (2003), “Transnational Nomads - How Somalis cope with refugee life in the Dadaab camps of Kenya”, PhD diss., University of Amsterdam.
  • Horst, C. (2004), “Connected Lives: Somalis in Minneapolis dealing with Family Responsibilities and the Migration Dreams of Relatives”, Paper presented at the 9th Somali Studies International Conference, 3–5 September, University of Aalborg, Denmark.
  • Hussein, Shamis. (1993), “Somalis in London”, In Merriman, N. (ed.), The Peopling of London, London: Museum of London.
  • Ratha, D. (2005), “Workers’ Remittances: An Important and Stable Source of External Development Finance”, In Maimbo, S. & Ratha D. (Eds.), Remittances: Development Impact and Future Prospects, (pp. 19-52), Washington, D.C.: The World Bank.
  • Sapkota, C. (2013), “Remittance in Nepal: Boon or Bane?”, The Journal of Development Studies, 49(10), 1316-1331.
Birincil Dil en
Konular İşletme
Dergi Bölümü Makaleler
Yazarlar

Orcid: 0000-0002-9293-9052
Yazar: Erol BULUT (Sorumlu Yazar)
Kurum: GAZİ ÜNİVERSİTESİ
Ülke: Turkey


Orcid: 0000-0003-1211-8594
Yazar: Abdiqadar Abdigani MOHAMED
Kurum: MOGADISHU UNİVERSITY
Ülke: Somalia


Bibtex @araştırma makalesi { fsecon432525, journal = {Fiscaoeconomia}, issn = {}, eissn = {2564-7504}, address = {Ahmet Arif EREN}, year = {2018}, volume = {2}, pages = {1 - 37}, doi = {10.25295/fsecon.2018.03.001}, title = {Remittances and Poverty Reduction in Somalia}, key = {cite}, author = {BULUT, Erol and MOHAMED, Abdiqadar Abdigani} }
APA BULUT, E , MOHAMED, A . (2018). Remittances and Poverty Reduction in Somalia. Fiscaoeconomia, 2 (3), 1-37. DOI: 10.25295/fsecon.2018.03.001
MLA BULUT, E , MOHAMED, A . "Remittances and Poverty Reduction in Somalia". Fiscaoeconomia 2 (2018): 1-37 <http://dergipark.gov.tr/fsecon/issue/39490/432525>
Chicago BULUT, E , MOHAMED, A . "Remittances and Poverty Reduction in Somalia". Fiscaoeconomia 2 (2018): 1-37
RIS TY - JOUR T1 - Remittances and Poverty Reduction in Somalia AU - Erol BULUT , Abdiqadar Abdigani MOHAMED Y1 - 2018 PY - 2018 N1 - doi: 10.25295/fsecon.2018.03.001 DO - 10.25295/fsecon.2018.03.001 T2 - Fiscaoeconomia JF - Journal JO - JOR SP - 1 EP - 37 VL - 2 IS - 3 SN - -2564-7504 M3 - doi: 10.25295/fsecon.2018.03.001 UR - http://dx.doi.org/10.25295/fsecon.2018.03.001 Y2 - 2018 ER -
EndNote %0 Fiscaoeconomia Remittances and Poverty Reduction in Somalia %A Erol BULUT , Abdiqadar Abdigani MOHAMED %T Remittances and Poverty Reduction in Somalia %D 2018 %J Fiscaoeconomia %P -2564-7504 %V 2 %N 3 %R doi: 10.25295/fsecon.2018.03.001 %U 10.25295/fsecon.2018.03.001
ISNAD BULUT, Erol , MOHAMED, Abdiqadar Abdigani . "Remittances and Poverty Reduction in Somalia". Fiscaoeconomia 2 / 3 (Eylül 2018): 1-37. http://dx.doi.org/10.25295/fsecon.2018.03.001