When it comes to development aid, many people often think that the primary actors are donor agencies and multilateral institutions. However, a developing country’s diaspora can and often does play a key role in both financing and implementing development projects and initiatives in their homeland.
See also: What is development aid and why is it important?
The term “diaspora” generally refers to citizens of one country who have relocated to a second country, usually to take advantage of job or educational opportunities. Whether members of the diaspora are living abroad on a semi-permanent or permanent basis, they often retain strong ties to their country of origin.
Because the diaspora serves as a “bridge” between their country of origin and their new country, they have the potential to reshape the contours of prosperity and progress in their homeland. And thanks to the intricate interplay of cultural ties, common language, historical affinities, and a shared sense of identity, diaspora communities are well-positioned to contribute to the development of their homeland. Therefore, it is well worth taking a deeper look at the ways in which the diaspora can catalyze positive change and foster sustainable development.
Historical perspectives on diaspora contributions
The modern history of development aid begins with the conclusion of World War II, which left millions of people displaced from their homeland. As the newly formed United Nations worked with charities, NGOs, and other agencies to provide care for and assistance in helping these displaced people return to their homelands, diaspora communities played a key role. Whether it was in the form of translators, assistance in navigating bureaucratic obstacles, or simply sharing their experiences, the diaspora was fundamental in helping the post-war world transition to a more peaceful and prosperous existence.
As development aid moved from a more reactionary footing to a more strategic and long-term focus, the diaspora also made major contributions. For example, following the 1959 revolution in Cuba that resulted in a large Cuban diaspora community being founded in the United States, Cuban migrants took up the mantle of supporting a number of development projects in their homeland. Whether it was via remittances or guiding entrepreneurial endeavors, these contributions injected much-needed vitality into the island nation’s economy.
Other notable diaspora contributions include overseas Chinese communities using their extensive knowledge of trade and business practices to assist their homeland in transitioning from a purely Communist economy to a more capitalist one as well as the Indian diaspora working high-tech jobs in Silicon Valley using their experience and networks to drive technological innovations in their homeland.
Contemporary approaches and initiatives
In the contemporary era, one of the most overlooked contributors to development aid is the Nigerian diaspora. With vibrant expat communities located in Britain and across many other nations of the Commonwealth, the Nigerian diaspora has played a pivotal role in addressing issues in their homeland such as healthcare, education, and infrastructure.
Via extensive remittances and by applying their entrepreneurial experience to make strategic investments, the Nigerian diaspora has catalyzed economic growth in their homeland, thus bolstering community resilience while creating opportunities and increasing prosperity for their fellow countrymen. Of particular note is the Nigerian diaspora’s engagement in social entrepreneurship where projects focused on microfinance, vocational training, and renewable energy have yielded tangible successes and significant improvements in the quality of life for millions of people in Nigeria.
Another concept which is growing in influence is called “diaspora financing,” which can take many forms. In some cases, financial institutions in the homeland will offer attractive interest rates for members of the diaspora who are willing to deposit foreign currency into special accounts. In other cases, bonds or other financial instruments can be sold to diaspora investors as a way to finance sustainable development projects in the homeland. Lastly, members of the diaspora can collectively form investment groups to finance development aid projects, successfully navigating the cultural and regulatory hurdles in the homeland more nimbly than can an outside agency or multilateral institution.
Recommendations for enhanced diaspora involvement
Although diaspora communities have played an essential role in financing and implementing sustainable development aid initiatives in their home for many decades, there is much room left for improvement and enhanced involvement.
One avenue meriting further attention is examining the existing policies and frameworks and how they shape the extent to which diaspora communities can contribute to development aid. For instance, in developed countries with progressive policies such as streamlined remittance channels, diaspora engagement is better facilitated than in nations where bureaucratic obstacles and overly stringent financial regulations can hinder diaspora communities from making more impactful contributions.
And when it comes to fostering holistic and sustainable development, it has now become imperative to have greater collaboration and cooperation between donor agencies, international institutions, NGOs, and diaspora networks. Donor agencies and governments currently have the ability to implement policies and provide resources, while NGOs bring invaluable implementation expertise and on-the-ground insights, but together, there is a need for greater engagement with diaspora networks, including leveraging the unique cultural understanding and resources within these communities.
See also: The role of donor countries in the aid sector and their responsibilities for its effectiveness
It is no exaggeration to say that the diaspora stands at the forefront of a transformative paradigm in development aid. With their deep-seated connections and nuanced understanding of local contexts, diaspora communities are ideally placed to identify and implement tailored solutions to address the specific developmental needs in their homeland.
Given the opportunity to serve as a catalyst for change, the diaspora networks have the potential to create a positive ripple effect, unlocking new avenues for investment, collaboration, innovation, and progress that have the ability to transcend geographic boundaries and shape a more equitable and prosperous future for us all.
