🌍Flows of Capital CASE STUDY - Somalia Flashcards
How much of remittances helps Somalia support economic development and livelihoods?
50% of GNI
80% of all investment in the country
What does GNI stand for?
Gross National Income
What does GNP stand for?
Gross National Product (total value of goods produced by a nation)
Which terrorist group provoked concerns about money in 2012?
Al-shabaab
What was the result of the money concerns regarding Al-shabaab?
Many US and UK banks and many money agencies withdrew their services
What are the concerns of the Us and UK financial institutions based on conditions in somalia?
-Its informal economy, with little government regulation. There has only been government since 2012, so it is till a very volatile country that has suffered from civil war and military coups in the past
- The lack of anti-money laundering laws, the lack of due diligence (care taken before entering agreements)
-SARS (suspicious activity reports) for money transmitters
-the fact that some remittances may end up in the hands of terrorist group Al-shabaab, which recieves donations from domestic and foreign sympathisers
Life after losing remitances
40% of Somali families who rely on remittances from overseas for basic needs such as food and medicine
What was the last major UK bank to stop transferring remittances to Somalia?
Barclays 2013 shutting down 250 money transfer businesses
What is the estimated annual total of remittances?
$1.3bn - more than all foreign aid and investment in Somalia combined
What is Somalias population?
10 million
When did Somalias central government disapear?
early 1990s
How much money do Somalis send remittances living in diaspora?
appriox $1.4bn
What % do remittances contribute to Somalias GDP?
23%
How many Somali-Americans are there?
150,000
on average how many $ pp do Somali-Americans send on average annually - Oxfam 2013?
$3,800
