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Lawlessness and economic governance: the case ofhawala system in Somalia


  • Abdirashid A. Ismail


Purpose - The purpose of this paper is to describe how informal money transfer system known as Design/methodology/approach - The paper uses an institutional approach and a simple game theoretical model. The author interviewed agents and informants of the Findings - To support economic relationships and increase the future cost of hold ups by their agents, the Research limitations/implications - A research on contract enforcement should involve with the contract partners (i.e. firms and agents) and third part enfocers (i.e. social groups). However, the author findings are based on surveying the existing literature and interviewing on a small number of agents and other informants in the West. Further, research should examine the practical experience of owners/managers of the firms and the traditional/religious leaders. Practical implications - Establishing future formal commercial laws in Somalia, currently functioning informal mechanisms should be taken into great consideration. Originality/value - This paper is one of very few research studies on the

Suggested Citation

  • Abdirashid A. Ismail, 2007. "Lawlessness and economic governance: the case ofhawala system in Somalia," International Journal of Development Issues, Emerald Group Publishing, vol. 6(2), pages 168-185, May.
  • Handle: RePEc:eme:ijdipp:v:6:y:2007:i:2:p:168-185

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    Governance; Somalia; Money; Commercial law;


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