Demystifying the Hawala System Using Causal Layered Analysis

by Umar Sheraz & M.N. Farooqi


This article explores the alternative futures of Hawala, a trust-based system used to transfer funds across countries and continents. This is done by using Causal Layered Analysis (CLA) along with P.R. Sarkar’s theory of social change as a basis for critiquing the social construct of the Hawala system. This offers a layered approach with which to analyze the classes of the value system and provide a framework for the discourse between the various classes. The essay is directed at policy makers, bankers, economists, policing agencies and other stakeholders as they evaluate the role of informal value transfer systems in the global economy, beyond sectoral silo focus.


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