Are remittances a good thing?

[Jacaylbaro]

Now stop all that bulllshhittt and send me some money via Dahabshiil ...... u can even use Qaran

[cynical lady]

Key facts

Ethnic minority communities in the UK send an estimated £2.3 billion a year to loved ones in more than 50 developing countries – including over £300 million to India and £200 million to Pakistan.

-The next biggest recipients are Nigeria, Jamaica and Ghana.

-Some 35 per cent of ethnic minority households send money.

-British Black Africans are the most likely to send money, while UK Asian households send the biggest amounts.

Of those who send money, the average amount is £870 per year.

-The average income of senders is £22,000 and 70 per cent are aged 25-44.

-Almost half are sending money to their parents, 15 per cent to spouses and children, and 25 percent to other close relatives. Others send money to friends or other contacts.

-Nearly a third of the money is used to buy food, 21 per cent for medical bills and 17 per cent to help pay for schooling.

-The cost of sending £100 to countries covered by DFID’s ‘Sending Money Home’ programme has on average fallen by 5.6% since 2005. For remittance payments by Indians, the UK’s biggest ethnic minority, costs are down by over 20%.

-Globally, the World Bank estimates that more than US $220 billion worth of remittances were sent to developing countries in 2006.

-India is the world’s biggest recipient of remittances, with an estimated £10 billion a year. Remittances through formal channels into Pakistan are expected to reach around £3 billion in 2007.

-For many poor countries, remittances are a bigger source of money than investment by overseas companies. For example, Ghana receives 10-15 per cent of its national income from remittances, and around 3 per cent from foreign investment.

-Remittances also play an increasingly important role in the aftermath of natural disasters. Formal remittances to Pakistan increased by some £90 million following the devastating earthquake that hit Kashmir in October 2005.

[Malika]

Ghanima did you receive that 3am phone call..

 

There is nothing wrong with extending a helping hand to your extended family in time of need. But with remittances there is a negative fact attached with that especially for the young people, when the money sent is not used for investment nor is it saved but instead is used for phone calls, cell phones, unnecessary luxury goods and unrealistic lifestyle for people living in a non existence economy that bothers me. I am sure there must be small business that can be run to generate income. For example selling Ice, baking bread to sell, a small chicken farms to sell eggs, opening up a tailor shop all these small business would have generated some sort of economy . A remittance in theory is easy money by those receiving them and is mostly treated as allowances and thus many have little incentive to work, again hindering economic development. I hear even sweeping brooms are imported from abroad in Somalia, with a work force coming across from Ethiopia and Djibouti how do we expect self reliance.

Although this phenomenon is not inevitable, however I am in support of when a group sends a collective remittance to their home communities and the fund is used for a variety of investments, such as building schools, mosques, dealing with local emergencies such as when a displacements of people occurs e.g currently in Mogadishu and other places.

 

Ah well, will still be sending that money, even thought I know my cousin has married a second wife and has darn better looking cell phone then mine.

[-Lily-]

^LoL

 

I’m afraid it's not looking good for the men. All I hear is jaad addiction, marrying 2nd, 3rd wife, kids you cant afford all over town. It’s dismal.

 

Bottom line, you can’t let your relatives starve, however long term investment in their future is definitely the way to go.

[cynical lady]

Dahi,The negative aspect of remittance is outweighed by its positive impact and should be encouraged but it also depends on who you’re sending it to coz for some remittance creates a situation of dependency in turn hampering the good intention the money was sent for but sometimes that’s a risk worth taking especially if your coming from developing countries……. sponsoring to pay for schooling is always a good reason to send money I think, there is something fulfilling about sponsoring a child……

 

 

Ps although I do fill sorry for a lot of young people who come here with the aim of helping there families but the families get greedy and want money now now, especially in somali community I have seen instances where the person will tell you I wish I had the chance to go to school or pursue my dreams but I cant I have 6brothers and my parents back home calling almost everyday……. These people forfeit a dream and sacrifice there life for remittance……. Hence most bus drivers/ cleaners had a dream/ambition once but situation back home requires them to work/any job so they can send money…

[Malika]

Lol..Lily your right we have been focusing on the negative far to much of lately.There is definetly some positive and goodness in us.

 

CL,I know some women do have these many children as a means to obtain more benefits as they see no other means of supporting themselves and their families back home,which ofcourse creates a catch 22,a vicious circle of dependancy all round.

[-Lily-]

Yes but if someone is sacrificing on your behalf, it better be on food and improving yourself, not so that the dad marries wife no 2 and the brothers develop a fetish for shiny mobiles and jaad :mad:

 

CL, yeah I know people like that, it's really sad how much this war is costing.

[Ms DD]

My parents used to recieve calls on a daily basis, till one my uncles (honest truthful one) moved to Somalia and mom asked him to report those who deserve the money (the poor ones) and those that dont. Guess what? Almost all calls stopped. I recall one particular call where a relative called for money and we said to him "uncle is now distributing the money to those who are in dire situation". Uncle rang to say the bloke had 2 maids for his 2 wives and the biggest Italian furniture and he was a chewer.

But not everyone has a grasser.

[Thierry.]

It is one of those topics where there is strong arguments on both sides, on one hand there are destitute relatives out there whose sole income is the few pounds that we send (the women, children and elders), on the other hand we have those that have become quite comfortable with the money and wont do anything for themselves (Men of working capability).

 

That’s where the value of information comes in, a good example is DD story, and in my opinion what would be better is to save the money and build small business for the folks back home, this will teach them value of hard work and how to use the money they earn wisely.

 

I have this uncle, my father used to send him remittance on a monthly basis, the guy became fat, married twice and used to argue about politicks all the time in cafes. My old man gave him a lump sum to buy a lorry and use it for business purpose and after that date no more money was coming his way. Glad to say the good uncle got a reality check.

This was two years ago funnily enough he made a lot of money from it and bought him self three more Lorries and he is sending my old man money now .

 

The moral of the story is before you cut them out give them incentives to become entrepreneurs you never know they might enjoy the freedom and independence

[NGONGE]

This is a worrying trend. You want to send money but also want to dictate how that money should be spent?

[Ms DD]

That aint the case Ngonge. But I doubt you would welcome the idea of employing a housecook, housekeeper and a nanny from your hard-earned cash.

[NGONGE]

^^ Of course I would. I want my relatives to live in luxury. And if I have the means to help them do so, I really have no problem with that. Besides, it gives those cooks and maids a job to do. You may be financing a few lazy people (and lets be honest, many already do so here in the West, never mind Somalia). But on the other hand, your money eventually trickles down to loads of hardworking and honest people. Why would anyone want to stop that just because they disagree with uncle marrying a second wife or cousin chewing his life away!

 

Consider it sadaqa and don't look back. But if you're (not you Ms DD) bitter and stingy......

[Yaabka-Yaabkiis]

Remittances sent to somalia is also investemnt--cuz ppl spend it in the country--Remittance helps alot such small economy country--where jobs don't exist...

[Separatist]

Sad to see energetic blokes with fancy smartphones in the streets of Eastleigh living on 'Bill from Dibada', but the merits outweigh the demrits. There are many who genuinely depend on remittances. But you guys shouldn't overdramatize things. One can't live large on the few bucks you send. Not in big cities atleast.

 

It's a good idea that they do some investment to generate some income instead of relying on others. God forbid, but hypothetically speaking, what if something happens to the sender.

 

Like Ngonge said let your relatives live in luxury if you have the means.

[Aaliyyah]

Be careful ladies, the last time I heard someone hiring a housecook back home, she snatched the poor woman's husband

 

and if you insist on hiring, make sure she is old and unattractive woman...just a thought

 

all the best!

 

p.s. There is nothing wrong with sending Remittances to Somalia, if it is being used for the basic needs like food clothing etc.