States of fragility 45 FMR 43 May 2013 Surviving the odds: education, commerce and development among displaced Abdirashid Duale

Private entrepreneurship and the disapora play important roles in supporting displaced people in fragile ungoverned situations. They are also valuable in helping those situations emerge from fragility.

The Somali territories are beginning to the mass movement of millions of people. emerge from arguably the most difficult Amid the unrest of the 1980s my family was period in their history. For two decades among the hundreds of thousands who fled large areas of the region have struggled to leaving everything behind. Over in the absence of any recognisable state time, we began using our existing network infrastructure, and periodic droughts like of contacts to offer much-needed money the one of 2011 have left millions facing transfer and other services to refugees. food and water shortages. But another story has also emerged, one of resilience and There are many examples of this kind in resourcefulness in the face of these hardships. today’s displaced communities. Time and from the Somali diaspora have again, refugees and IDPs have proved that helped to sustain an economy that in many they do not simply have to be passive actors sectors, such as livestock, construction waiting for aid. Business people arriving and telecoms, is surprisingly buoyant. in the camps often begin trading again; in Dadaab refugee camp in Kenya’s North Encouraging as these developments are, there Eastern Province there are blacksmiths, is still some way to go. The UN estimates tailors, fruit vendors and many others that there are currently 1.4 million internally earning a living despite the challenges. In displaced people (IDPs) across the Somali some of the more stable and prosperous territories and hundreds of thousands of regions within the Somali territories, many Somali refugees in Kenya, Ethiopia and IDPs have successfully integrated with beyond. As conditions for more established host communities by becoming part of the communities begin to improve, the fear is that productive economy. Now that the political these vulnerable groups could be left behind. and security situation is improving elsewhere, better coordination of aid efforts along with Barring inevitable cases of tension and stronger governance and a more active resentment, resident communities have business environment should help displaced generally received these displaced groups people in those regions as well. These with compassion and helped them to settle. advances constitute the principal difference Such charity is deeply ingrained in Somali between past and present in terms of the culture and crosses regional and other status and prospects of the mobile population. divides. Smoothing the integration of IDPs is vital for a sustainable solution to the Aid agencies have in some cases implemented problem, and reinforcing common culture and programmes that are specifically aimed values is an important part of that process. at rehabilitating and integrating IDPs – employing vulnerable people and training The story of my family and the business them to tackle community needs such as we established, Dahabshiil, is closely rebuilding roads, collecting refuse and associated with the story of migration in the improving irrigation systems. Other initiatives Somali territories and with the growth of have involved allocations of livestock, offering the industry that accompanied a source of income as well as food to the 46 States of fragility FMR 43 May 2013

recipients, some of whom have gone on to of capital inflows in those days were invested. make successful applications for micro-grants, A trade-based system of remittance transfer, enabling them to start small businesses. Other known as franco valuta, bypassed strict schemes have focused entirely on training foreign exchange controls and allowed for and vocational courses. In many efforts of imports of raw materials that fed industrial these kinds, Dahabshiil has partnered with growth. Later on, the civil war prompted a and supported NGOs and UN agencies by much larger and more far-flung migration acting as a bank and a conduit for remittances, involving a fuller cross-section of Somali and in some cases – particularly in health society. Remittances for family support began and education – directly funding projects. to overtake those for commercial objectives and were soon far greater than development Perhaps the most powerful way to improve and humanitarian aid combined. The recent the situation of displaced people is through improvement in the business climate has education. It is very often the poorest in meant that the proportion of funding being society who are the most vulnerable to used for investment is once again on the rise. displacement and, once displaced, their chances of achieving a basic level of Remittance income has been crucial to literacy and numeracy are diminished sustaining consumption and thus maintaining even further. Projects like that of the Africa the conditions in which the economy Educational Trust (AET), which schooled can grow, creating opportunities for the women and children IDPs in 16 camps, aim poorest to earn a living. As the remittance to break this cycle. In Dadaab, a Canadian- industry has expanded it has assimilated Kenyan partnership is opening an onsite the latest information and communication campus of Kenyatta University, making technology (ICT). The East African mobile it the first higher education institution to banking revolution is well documented, and serve a refugee camp. The project aims to in the current environment the volume of bridge the gap between the outside world remittances transferred to a particular region and the inhabitants of the world’s largest now depends in large part on the quality refugee settlement, and to prepare them of there. Fortuitously, for returning to their places of origin. the Somali telecoms sector underwent a spectacular boom in the years following Better connected students, both at Dadaab the collapse of central government, when and in educational initiatives within the a newly competitive marketplace (aided Somali territories, have been able to draw considerably, it must be said, by the lack of on help from relatives abroad; support for regulation in the absence of a functioning education has been one of the principal state) allowed for the proliferation of ways in which the diaspora has played what are now some of the cheapest and a role in wider developmental efforts most reliable mobile services in Africa. beyond straight commerce. Somalis of the diaspora feel a strong connection to their The number of mobile subscriptions in the homeland and are driven by this and Somali Somali territories is now in the millions. custom to send remittances back to family Landline connections, by comparison, members who find themselves displaced. are relatively few. Internet access is also spreading. Abandoning copper wire and Remittances moving straight into mobile and wireless We have witnessed at close quarters how the is one of the best-known examples of the evolution of remittance patterns has mirrored developing-world phenomenon of ‘leapfrog’ the various phases of migration the region has technology, by which obsolete phases seen over the years. Early Somali migrants of industrial development are bypassed working in the Gulf were often comparatively altogether. While there clearly remains a well connected and educated, and the majority pressing need for stronger formal institutions States of fragility 47 FMR 43 May 2013

and governance, these advances seem bound Somali society one of the most globally- to set the development of our financial minded in Africa. The steady inflow of infrastructure on a different trajectory. financial and human capital has been hugely Realising the growing synergies between significant to private sector development. the two sectors, many money transfer The rehabilitation of Mogadishu – with a operators in the have, like diaspora-funded construction boom, a rash us, made strategic acquisitions in the ICT of new start-ups and the introduction of industries, enabling them to expand services wireless internet by young entrepreneurs to those people who have traditionally arriving from Europe and the US – is perhaps lacked access to financial services but the best current example of this. Until that who now own or share a . recovery was underway there was a fear that the next generation of Somalis abroad There are many different shades of would forget their roots but migrants are displacement within the Somali territories now returning and are bringing their and different groups have distinct needs children with them, reinforcing a growing and priorities. With stability now returning sense of renewed hope and confidence. across the region, collaborative efforts should There are many challenges still to face be redoubled to boost literacy, training and but if we can maintain the advantage, the employment, and to give not just IDPs but last two years may well be remembered poor communities in general the tools they as the moment the tide finally turned. will need to contribute to the recovery. Abdirashid Duale is CEO of Dahabshiil. By working with NGOs and local government, www.dahabshiil.com He is rated as one of diaspora groups can play an important part the 50 most influential Africans by the Africa in that process. The sheer size and spread Report. For more information please contact of its diaspora have made modern-day [email protected]

Networked governance in Ecuador’s border regions Lana Balyk and Jeff Pugh

In order to improve security for both Colombian forced migrants and Ecuadorians in the communities where they live, an approach that takes advantage of governance networks can allow residents to negotiate access to resources and rights that they otherwise would not be able to enjoy. It can also improve relations between the two groups.

Ecuador’s population of some 135,000 and by international refugee law. Many have Colombian forced migrants who have fled encountered a hostile reception in their new their country of origin since 2000 makes it country; even local officials charged with the the largest recipient of refugees and asylum protection of law, order and human rights seekers in Latin America. In the cities, the sometimes mirror discriminatory attitudes and state is strong and has the resources to behaviour toward Colombians. A UN official protect these people. In the border areas, in Esmeraldas province, in Ecuador’s coastal however, the state presence is very weak. region near the Colombian border, explained the political calculation that local officials Despite Ecuador’s progressive Constitution, in the provinces often have to make: “When which guarantees foreigners the same basic the revenue for a local government does not rights as Ecuadorians, many Colombians add up to the projected levels, naturally they face difficulties in practice in accessing the are not going to be able to adequately serve rights guaranteed them by the Constitution the needs of the entire population, so they