Hawala--A Vestige of the Past in the Service of Globalization.

The article discusses the negative impact that hawala has on the monetary and loan systems of many countries. The hawala system is used throughout almost the whole world, even in countries with developed, liberal financial systems. It is difficult to quantify the scale of hawala, but one can state with confidence that billions of dollars flow through it. According to a number of parameters, however, it meets the economic needs of the present, and without it many people living in developing countries would be completely deprived of the means of subsistence.