Cash and Compassion
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Cash and Compassion THE ROLE OF THE SOMALI DIASPORA IN RELIEF, DEVELOPMENT AND PEACE- BUILDING Report Authors: Laura Hammond (Team Leader), Mustafa Awad, Ali Ibrahim Dagane, Peter Hansen, Cindy Horst, Ken Menkhaus, Lynette Obare United Nations Development Programme (UNDP) UNDP is the UN's global development network, advocating for change and connecting countries to knowledge, experience and resources to help people build a better life. We are on the ground in 166 countries, working with them on their own solutions to global and national development challenges. As they develop local capacity, they draw on the people of UNDP and our wide range of partners. Disclaimer: The views expressed in this publication are those of the author(s) and do not necessarily represent those of the United Nations, including UNDP, or the UN Member States. Copyright © 2011 UNDP. All rights reserved Cash and Compassion: The Role of the Somali Diaspora in Relief, Development and Peace-building December 2011 Volume I Contents Acknowledgements ......................................................................................................................... i Summary ....................................................................................................................................... 1 Objectives/Rationale ..................................................................................................................... 2 Conceptual Framework ................................................................................................................. 2 Mapping the Senders .................................................................................................................... 4 Means of Transfers ........................................................................................................................ 7 Mapping the Recipients ................................................................................................................ 7 Principles of Engagement between the International Community and the Diaspora ..................... 9 Recommendations ........................................................................................................................ 9 1. Introduction ........................................................................................................................... 12 1.1 Rationale ............................................................................................................................... 12 1.2 Objectives and Scope of the Study ......................................................................................... 13 1.3 Structure of the Report .......................................................................................................... 14 1.4 Review of research and experience of diaspora engagement ................................................. 14 1.5 Conceptual Framework ......................................................................................................... 16 1.6 Concepts used in this report .................................................................................................. 20 2. Methodology.......................................................................................................................... 26 2.1 Quantitative Survey in Somalia/Somaliland ........................................................................... 26 2.1.1 Localities covered ....................................................................................................... 27 2.2 Research conducted in the Diaspora ..................................................................................... 27 2.3 Other research tools ............................................................................................................. 28 2.4 Context of the Study ............................................................................................................. 28 3. Mapping the diaspora ................................................................................................................ 31 3.1 Overview ................................................................................................................................ 31 3.2 United Kingdom ................................................................................................................... 32 3.3 Norway .................................................................................................................................. 33 3.4 United States ........................................................................................................................ 34 3.5 Canada .................................................................................................................................. 35 3.6 United Arab Emirates (Dubai) ............................................................................................... 36 3.7 Kenya ..................................................................................................................................... 37 1 4. Mapping the Senders ................................................................................................................ 38 4.1 Individual households ...................................................................................................... 38 4.2 Local NGOs based in the diaspora ........................................................................................ 39 4.3 Clan-based and Home Town Associations ............................................................................ 41 4.4 Professional Associations ..................................................................................................... 42 4.5 Transnational Associations ................................................................................................... 43 4.6 Mosques ............................................................................................................................... 43 4.7 Private Investors and Shareholders in Private Companies ..................................................... 43 4.8 Board of Trustees members .................................................................................................. 46 4.9 Women’s groups ................................................................................................................... 46 4.10 Youth (or ‘Second Generation’) Groups............................................................................... 46 5. Means of Transfers ................................................................................................................... 49 5.1 Collective Fundraising ........................................................................................................... 49 5.2 Innovation Borrowed from Diaspora Countries ..................................................................... 50 5.3 The Hawala System ..............................................................................................................51 5.3.1 Regulation of the Remittance Sector .......................................................................... 53 5.3.2 Transfer of Charitable Contributions .......................................................................... 54 5.4 In-kind Support ..................................................................................................................... 55 5.4.1 Technical Support ...................................................................................................... 56 Box 4 QUESTS/MIDA’s Support to Civil Service .................................................................... 57 6. Mapping the Recipients ............................................................................................................ 59 6.1 Remittances to Individual families ................................................................................... 59 6.1.1 Putting Remittances in Perspective ............................................................................. 60 6.1.2 Impact of the Global Economic Crisis ......................................................................... 62 6.1.3 Pressure on the Senders of Remittances .................................................................... 63 6.1.4 What do people use remittances for? ......................................................................... 64 6.2 Local NGOs ........................................................................................................................... 66 6.2.1 Somaliland ................................................................................................................. 68 6.2.2 Puntland .................................................................................................................... 70 6.2.3 South/Central .............................................................................................................. 71 6.3 Social Service Providers ......................................................................................................... 72 6.3.1 Main Findings ............................................................................................................... 73 2 6.3.2 Somaliland .................................................................................................................. 75 6.3.3 Puntland ..................................................................................................................... 79 6.3.4 Security .....................................................................................................................