Is the remittances older diaspora send back to Somalia leading directly to indolence?

[Somali Napolean]

The UN estimates that about $1.6 billion is sent back annually each year, the official governmental estimates are similar at 1.4 billion USD. Now, I am not saying people aren’t doing anything productive with the money, but much rather that the remittances are leading to general lethargic actions being taken on a wider scale. That the population back home has held onto this remittance not as an economical tool but a salary. Unemployment is rampant in the country and I do not personally believe the money being sent back is helping in any way.

This possess a massive threat to Somalia’s economic future as the amount decreases with time, as the majority of the people sending money back home are of the older generation this means that as they age and are no long able to do so the money may be diminished severely or cut off entirely. Somalia would much rather benefit from the government seizing of the money and redistribute it as incentives to communities and companies as fuel, however, unfortunately this isn’t an option due to the mass corruption.

What do you think on the issue and the sustainability of the remittances?

Somali diaspora’s remittances cast a lifeline

During two decades of conflict, famines and floods, Somali expatriates’ transmission of money back home — known as “remittances” — has been instrumental in keeping Somalia afloat. The UN Development Programme estimates that $1.6 billion in remittances are sent back annually by Somali emigrants...

www.un.org

Somalis abroad are rebuilding their war-torn country through selfless giving

Somali-Americans are the highest remitters to Somalia, sending an annual average of $3,800 per person.

qz.com

 

[AbdiGeedi]

@Somali Napolean

1) Remittances support the volume of economy through increasing the purchasing power of population.

2) Seizing remittances will lead to crisis and significantly decrease the inflow. Economy can only be naturally maintained and grown when each person in the population has freedom to choose how he or she spends the money. If you take out this aspect of money management by the government degree, it will severely skew the spending and literally kill certain sectors of economy, including consumer banking.

The best way forward is to encourage remittances and let people choose for themselves how to spend it.

We just need to wait out for big projects to start, especially in the oil/gas field and enlarge our economy.

One thing will lead to another in a snowball effect in a positive way.

Inshallah, Somalia's future is bright.