Despite the collapse of the formal economy and of central government in Somalia, a remarkably resilient 'parallel' economy has emerged, notes this briefing paper from Chatham House. Based on traditional clan relationships, a lack of bureaucracy and well-established channels for remittance payments from the diaspora, this model has travelled with Somali émigrés to Kenya. Some businesses that began in the informal sector are making the transition to formal enterprise and Kenyan authorities should seek to encourage this with an enabling regulatory environment, says the briefing paper.