Money to Somalia

TruckerT

Apparently the amount of money which is transmitted to Somalia from the western world is in the hundreds of millions per year. So why do they need a western banking system to deal with it? Surely there is a Somalian pirate or two who could handle the business? Also, how much of the money which is transmitted from the UK to Somalia is provided by the UK welfare state?

TruckerT

antrobus

TruckerT wrote: »

Apparently the amount of money which is transmitted to Somalia from the western world is in the hundreds of millions per year....

USD 1.3 billion according to the NYT

TruckerT wrote: »

... So why do they need a western banking system to deal with it?

I don't think Somalia has a banking system at all (western or otherwise). At least not one that works. Which is why it's all done by money transfer agents.

TruckerT wrote: »

... Surely there is a Somalian pirate or two who could handle the business?

I think the issue is one of making sure that the money doesn't end up in the hands of Somalian pirates. Or Al-Qaeda for that matter.

TruckerT wrote: »

...Also, how much of the money which is transmitted from the UK to Somalia is provided by the UK welfare state?...

There seem to be 100,000 or more Somali refugees in the UK. Unemployment in the Somali community is high. Some of them may well have family back in Somalia they feel the need to help. Presumably there is a flow of cash. No idea how much it would be.


This report from the NYT explains what's going on
http://www.nytimes.com/2013/08/04/world/africa/somalis-face-snag-in-lifeline-from-relatives-working-abroad.html?pagewanted=all&_r=0

TruckerT

antrobus wrote: »

USD 1.3 billion according to the NYT



I don't think Somalia has a banking system at all (western or otherwise). At least not one that works. Which is why it's all done by money transfer agents.



I think the issue is one of making sure that the money doesn't end up in the hands of Somalian pirates. Or Al-Qaeda for that matter.



There seem to be 100,000 or more Somali refugees in the UK. Unemployment in the Somali community is high. Some of them may well have family back in Somalia they feel the need to help. Presumably there is a flow of cash. No idea how much it would be.


This report from the NYT explains what's going on
http://www.nytimes.com/2013/08/04/world/africa/somalis-face-snag-in-lifeline-from-relatives-working-abroad.html?pagewanted=all&_r=0

Your link explains very little, and appears to confirm that nobody really knows anything about what is going on!

If unemployment in the UK Somali community is high, then why do we continue to subsidise their presence?

How much do the money transfer agents profit from their activities, and what is the difference between Somali pirates in 2013, and Western Bankers in 2007/8?

TruckerT

Generali

TruckerT wrote: »

Your link explains very little, and appears to confirm that nobody really knows anything about what is going on!

If unemployment in the UK Somali community is high, then why do we continue to subsidise their presence?

How much do the money transfer agents profit from their activities, and what is the difference between Somali pirates in 2013, and Western Bankers in 2007/8?

TruckerT

Because they are refugees.

TruckerT

Generali wrote: »

Because they are refugees.

Refugees maybe, well-informed definitely.

TruckerT

antrobus

Generali wrote: »

Because they are refugees.

Exactly.

Although, if I wanted to make a little joke, I'd also say 'because some of them can run quite fast'. As in Mo Farah got two gold medals.

TruckerT wrote: »

How much do the money transfer agents profit from their activities,

Businesses exist to make a profit. Why does it matter to you how much they make? Are you now worried about Somalians being ripped off in some way?

TruckerT wrote: »

...and what is the difference between Somali pirates in 2013, and Western Bankers in 2007/8?

Why what have they got to do with it?

TruckerT

antrobus wrote: »

Why what have they got to do with it?

In 2007/8, western banks would have felt no compunction at all about who they dealt with, and where their profit came from.

They are, at last, being forced to modify their business plan.

TruckerT

TruckerT

antrobus wrote: »

Are you now worried about Somalians being ripped off in some way?

Actually, in a funny kind of way, the answer is yes!

Western banks, like Somalian pirates, care little about their victims.

And, of course, a significant amount of the money which Somalians send home comes straight out of the UK welfare budget. So I guess I'm also a bit worried about us Brits being ripped off.

TruckerT

brit1234

I see a lot of this in London. Large extended families traveled to any European Country possible, mostly Sweden and Holland as refugees. Once accepted they then move to UK. Over the 10 years that followed many of the elder males started jobs as taxi driver and opened up east African cafes working very hard. They tend to fill the properties with as many people to cut costs and lots of the money flows back to Somalia to relatives or property/businesses. There is a giant growth in beech side cafes in Mogadishu at the moment being funded from the uk.

At the same time many of the males are returning back to Somalia to start these businesses. Others are leaving splitting up from their wifes due to the effect of western culture. Somali divorce rates are some of the highest. Kids who go off the rails here often disappear over night and are sent back to Somalia due to firmer discipline.

Mo Farah to support his early training use to work in the Twickenham Sweatshop Running shop. He use to help train many runners in South West London running clubs.

Even the Somali criminal gangs we tactical seem to work harder than our domestic criminal networks.

Personally I hope Barclays keep the money transfers going, its doing a great job of bringing rebuilding and peace to Somalia. There just needs better checks on money laundering.

TruckerT

brit1234 wrote: »

I see a lot of this in London. Large extended families traveled to any European Country possible, mostly Sweden and Holland as refugees. Once accepted they then move to UK. Over the 10 years that followed many of the elder males started jobs as taxi driver and opened up east African cafes working very hard. They tend to fill the properties with as many people to cut costs and lots of the money flows back to Somalia to relatives or property/businesses. There is a giant growth in beech side cafes in Mogadishu at the moment being funded from the uk.

At the same time many of the males are returning back to Somalia to start these businesses. Others are leaving splitting up from their wifes due to the effect of western culture. Somali divorce rates are some of the highest. Kids who go off the rails here often disappear over night and are sent back to Somalia due to firmer discipline.

Mo Farah to support his early training use to work in the Twickenham Sweatshop Running shop. He use to help train many runners in South West London running clubs.

Even the Somali criminal gangs we tactical seem to work harder than our domestic criminal networks.

Personally I hope Barclays keep the money transfers going, its doing a great job of bringing rebuilding and peace to Somalia. There just needs better checks on money laundering.

I'm not sure where the 'refugee' bit fits in to all this - it sounds to me more like a business plan.

TruckerT