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A hidden world of money transfers

By Dominic Casciani

BBC News home affairs

You may never take notice of them - but they are everywhere these days in the

UK's big cities: the money transfer shops.

And the incredible growth of these businesses is one of the clearest signs of

the role migration to the UK has been playing in the complex world of

globalised economics.

While the UK government this week publishes its latest annual figures for

migration, the money transfer shops and their customers will be quietly getting

on with business.

It is these businesses - from the multinational corporations to the small

community agent which are the link between many migrant workers in the UK and

the families they are trying to support back home.

Every day thousands of people in cities like London use these services to send

money to loved ones.

Ali, from Afghanistan, was one of half a dozen queuing at lunchtime in a money

transfer shop in west London.

He was sending some 200 (300 euros; $400) to help a friend - a typical sum

sent through the largest agents.

He said that his compatriots in the city - not all of whom are here through

legal channels - had only one raison d'etre: to earn to send money home.

"Lots of people, especially the Pashtun people from the south of Afghanistan,

they just work and send money, they haven't got a life here, they don't want to

have a life here," he said.

"When they come to London some of them will work nine months non-stop, day and

night, and then for three months they go away to see their families.

"And then they come back - they're just here for the money."

How much money?

Exactly how money is being transferred as "remittances" has proved impossible

to establish - but there are estimates.

WHO SENDS HOW MUCH A YEAR?

Up to 100: 9% of senders

100- 200: 13%

200- 300: 9%

300- 400: 6%

400- 500: 11%

Source: ICM/DFID survey

The World Bank has talked about a figure of some US$250bn ( 125bn) worldwide -

but that does not even start to take into account the huge network of informal

transfers.

The UK's estimated five million plus immigrants are thought to send home

approximately $2bn ( 1bn) but even that is guesswork.

Professor David Seddon, formerly of the University of East Anglia and now an

independent consultant, has studied remittances and says the market is enormous

- and enormously complicated.

Studying just one area of north London in 2006, he found a rapid growth in

money transfer businesses serving an increasingly diverse range of communities.

Critically, he said, while the major multinational players like Western Union

had a branded presence, many migrants were going to small community agents who

combine money transfer with another high street business - such as cheap

foreign phone calls or a grocery shop.

High street operators

"The high street [community] operators are proliferating. Some of them serve

just one part of the world," he said.

"Then there is a third level of operators on markets or in private houses.

"If you are a Bangladeshi woman who can't speak much English what works for you

is an operator where you can buy your veg or do your other shopping and also

send small sums home, maybe 20 or 30."

An ICM survey for the UK's Department for International Development found 62%

of those questioned used high street agents - but 45% sent money back

informally through a relative or friend travelling home.

The sums are small - a third of respondents sent 300 ($600) or less back in

two or three lumps over a year.

However, while the principle of remittances is altruistic and strengthens ties

among migrant diaspora around the world, Mr Seddon warns that it inescapably

affects those sending the money.

"What determines how much gets sent is how much people think they can afford -

but they are often bankrupting themselves," he said.

Jarek is a young worker from Poland who saves as much as he physically can to

send home to his girlfriend.

He is thinking about their future - not least because the present is not

exactly the most comfortable environment.

He said he works up to 60 hours a week in a factory on less than minimum wage

after costs, picking up work where he can through an agency.

But when he comes home he gets to work on building websites. The website

business makes more money - but he needs the factory work to make the sums add

up.

So what sacrifices does he make to send cash home?

Jarek said he lived in a flat with nine other Polish workers, two to a bedroom.

They were each paying 55 ($109) a week rent.

His only luxury was his 10-a-month ($20) internet connection, essential for

his dotcom dreams.

"It's harder than in Poland but I think about money and the future - it will be

better," he told me.