Why Diasporas are Important
Kingsley Aikins
1. Increasing interest
Diaspora, frankly, is not a very pretty word but it is an interesting concept. It’s origins are Greek and Diaspora is a combination of two words, dia meaning ‘through’ or ‘over’ and speiro meaning ‘dispersal’ or ‘to sow’. It owes much of it’s origins to the exile of the Jews beyond Israel mainly in the 8th to 6th centuries BC. It is now commonly used in a generic sense for communities of migrants living or settled permanently in other countries, aware of their origins and identity and maintaining various degrees of contact with the mother country. However, the recent past has seen the word used with many nationalities and, indeed, regions and cities and, now, sometimes, companies and organizations. These days we often hear talk of the Nigerian diaspora, the Australian diaspora and the Jamaican diaspora to go along with the more established diaspora countries such as Israel, India, Ireland and China.
The last few years have seen a veritable explosion of diaspora conferences, conventions and symposia as well as publications and reports. Examples of the type of events are the Hillary Clinton Global Diaspora For a of 2011 and 2012 which attracted over 500 people representing 75 countries to Washington and the 35 countries that attended the Global Villages Conference in Jerusalem last year. Even the European Union hosted its first Diaspora Conference in Brussels and countries such as Vietnam, Uganda and Indonesia have held their first Diaspora Conferences. Portugal has recently announced the establishment of a Global Diaspora Council and Africa had its first ever Diaspora Conference in South Africa last year attended by 65 past and present African leaders.
There is growing awareness now that there is such a concept as ‘diaspora capital’ to go alongside financial, human and social capital. Countries are coming to the realization that this is a resource to be researched, cultivated, solicited and stewarded. Many see this as a way of addressing tough domestic economic challenges and as a key piece of their economic recovery. They also see it as more than just economic remittances as there are also social remittances in the form of ideas, values, beliefs and practices.
“We have to redefine the concept of the nation. The nation today is not territorial; it is not bounded by physical space. The nation is a social and political construct. In a borderless world, the nation is no longer confined by geography. There are 2.6 million people in Jamaica but there are approximately another 2.6 million living overseas. We also have to redefine patriotism. Patriotism can no longer be seen as necessarily synonymous with residence in the country of one’s birth. The fact that you are not physically located here does not make you any less committed to this country and its development nor does it make you, in this globalized era, disconnected from Jamaica.”
Following a request from the US State Department the EU leg of the Global Diaspora Forum will be held on May 14 and 15 in Killiney Castle in Dublin. It will cover a wide range of Diaspora related topics including Diaspora and Jobs, Diaspora and the role of Government, Diaspora and voting rights, Diaspora and Tourism, Next Generation Diaspora and Diaspora and culture. It has attracted over 50 recognised experts in this field from Ireland, Europe and
The last few years have seen a veritable explosion of diaspora conferences, conventions and symposia as well as publications and reports. Examples of the type of events are the Hillary Clinton Global Diaspora For a of 2011 and 2012 which attracted over 500 people representing 75 countries to Washington and the 35 countries that attended the Global Villages Conference in Jerusalem last year. Even the European Union hosted its first Diaspora Conference in Brussels and countries such as Vietnam, Uganda and Indonesia have held their first Diaspora Conferences. Portugal has recently announced the establishment of a Global Diaspora Council and Africa had its first ever Diaspora Conference in South Africa last year attended by 65 past and present African leaders.
There is growing awareness now that there is such a concept as ‘diaspora capital’ to go alongside financial, human and social capital. Countries are coming to the realization that this is a resource to be researched, cultivated, solicited and stewarded. Many see this as a way of addressing tough domestic economic challenges and as a key piece of their economic recovery. They also see it as more than just economic remittances as there are also social remittances in the form of ideas, values, beliefs and practices.
2. New Markets
While North America, Europe and Japan account for less than 15% of the world’s population they account for more than half of global output. This is set to change in the coming decades. Goldman Sachs predicts that customer demand from India and China will dominate global markets within a decade and that the two economies will be large than the US by 2050. Both have used their Diasporas astutely to help them get to this position. In a recent book entitled ‘The fastest million – the story behind Africa’s economic revolution author Charles Robinson predicts that the most remarkable progress in the continent will happen in the next two generations. He expects the billion Africans who in the last decade have already experienced the fastest growth the continent has ever seen to become the fastest 2 billion people and Africa’s GDP to increase from $2 trillion today to $29 trillion in today’s money by 2050. African countries will be sure to use their Diasporas to help them achieve that position. Over half of Africa’s graduates live outside Africa.3. New ways of looking at emigration
The recent past has seen the emergence of a series of innovative initiatives aided and abetted by dramatic changes in technology and communications. In the old days emigration was final, brutal and sad and, in some cases today, it still is. However, now, for possibly the first time in history, absence no longer equals exile and geography does not dictate identity. People can lead ‘hyphenated lives’ and brain drain can become brain gain and brain exchange. There is a circularity to much movement between countries with people coming and going as never before. The countries who, historically, most suffered from emigration are now in a position to benefit the most. Although, In Ireland’s case, emigration has returned in significant numbers, over 100,000 Irish people have returned to live in Ireland since 2008.4. Migration
Migration is the phenomenon of our time with an estimated 3 million people migrating in 2012. There are now 215 million people living in a country other than the one they were born in, tripling in 45 years. 62 million people in the US are first or second generation migrants.. Throughout history Diaspora networks have played powerful roles. This is only going to increase as technology and communications allow Diasporas to play a role without returning to their home countries. There are 80 million Europeans who live outside the country they were born in and 47 million foreign born people living in the EU (16 million from another EU state and 31 million born outside the EU).5. A Changed World
Today the world is more globalized, interconnected and interdependent than ever before. The recent global economic crisis shows us that it is no longer possible for any nation state to consider itself an ‘island’, nor is it possible to be immune from the ebbs and flows of global economics. In order to be in a position to fully leverage the advantages of interdependence, companies, countries and organizations are looking at creating, developing and engaging complex networks of people to generate social, cultural and economic benefits. Diasporas constitute obvious collectives of people through which networks can be created and individuals mobilized for mutual benefit. We live in a world where free movement of goods and capital is commonplace. Perhaps attracting less attention is the international migration of human capital – the movement of knowledge, talent and skills across borders. Traditionally we looked at diasporas through the looking glass of remittances and financial flows which, now, is to take a myopic view. Diasporas are a bridge to knowledge, expertise, resources and markets for the country of origin.6. All about Place
An interesting paradox of globalization is while the world is being internationalized, at the same time it is being localized. The world shrinks as the local community takes on greater and greater importance. Diasporas play an important role in this as Diasporas are essentially about place rather than country and that place could be a city, a county, a town, a village or a region.7. Global Collaboration
Just as the big problems and challenges the world is facing are global so too are the potential solutions to them. Economic recession, mass unemployment, climate change, energy crises, food shortages are all massive issues which will take concerted, collaborative action. This will involve new networked alliances and collaborations which will not be bound by national borders and diasporas will be important in this.8. Nation versus State
There is also now increasing references to the distinction between the ‘nation’ and the ‘state’ and that in this era of globalization we have to redefine the concept of the nation. Former Jamaican Prime Minister Portia Simpson Miller could have been speaking of many countries when she said“We have to redefine the concept of the nation. The nation today is not territorial; it is not bounded by physical space. The nation is a social and political construct. In a borderless world, the nation is no longer confined by geography. There are 2.6 million people in Jamaica but there are approximately another 2.6 million living overseas. We also have to redefine patriotism. Patriotism can no longer be seen as necessarily synonymous with residence in the country of one’s birth. The fact that you are not physically located here does not make you any less committed to this country and its development nor does it make you, in this globalized era, disconnected from Jamaica.”
9. Collaborating versus Competing
Diaspora investment in their home countries tends to boost local entrepreneurship thus creating a virtuous circle for future growth. Investors don’t necessarily have to make choices between settling abroad versus returning home. They can do both and help their home countries while still being involved and connected in their adopted countries. In fact, the home country can often benefit more if that is the case and leverage off technology and communications to keep up to date with new market places and contacts. Now it is about ‘connecting to’ and ‘collaborating with’ rather than ‘competing with’ and this is where close relationships with key well placed Diaspora members is invaluable.10. Two way flows
International organisations such as the World Bank, the European Union and the United Nations have started to pay closer attention to the value of Diasporas in economic development and more generally in International relations. They see Diasporas serving as important conduits, facilitating the two way flow of capital. That capital presents itself in every form – human, social, intellectual, political, cultural and financial. Looking at capital flows alone, the transfer of funds in the form of remittances (over $540 billion last year alone), philanthropy, bonds and foreign direct investment is massive by any scale and growing.11. Diaspora as National Asset
Considering the Diaspora as a national asset is certainly not a new phenomenon and countries such as Israel, India, Ireland and China have led the field for some time. What is new, however, is the number of countries who are now realizing they have exciting possibilities if they can engage their overseas populations in innovative and creative ways. The last year has seen Uganda, Indonesia and Vietnam launch initiatives in this field. The topic has become ‘hot’ as evidenced by the cover issue of the Economist in November 2011 entitled “The Magic of Diasporas – how migrant business networks are changing the world”. This has not been lost on governments who have changed traditional views of regarding expatriate business, cultural, scientific and policy actors as ‘lost’ to their countries of origin. Now there are active efforts being made to identify and connect with these highly skilled individuals and link them to national economic development projects12. Affinity Diasporas
Migration patterns are changing and efforts are being made to track the increasing trend of immigrants subsequently ‘re-migrating’ to another country. This has also given rise to ‘affinity’ diasporas, for example, Indians or Chinese who spent time overseas, possibly in education, and then return to their home countries but retain an affinity and affection for the country they spent time in.13. Statistics
Diaspora numbers are large. There are now 215 million people living in a country other than the one they were born in. If that were a country it would be the fifth largest country in the world. 3 million people migrate annually. Annual rates of immigration to the US have increased from just over 320,000 immigrants annually in the 1960s to close to a million today. And the US has the largest number of international diasporas of any country in the world. Virtually all Americans have immigrant roots and treasure them. Natural ambassadors by their identities the diplomatic, commercial and development potential of global diasporas remains largely untapped.14. Talent Networks
For countries in this century a deep bench of skilled immigrant talent is an essential element of 21st century collaborative advantage. Economic models have changed too, especially the core-periphery model which used to mean that new products and technologies happened in advanced economies and manufacturing in periphery economies. The old flows were a one flow of people in one direction. Now it’s about two way flows of skills, capital and technology.15. Networks of trusted contacts
The key to success is developing globally distributed networks of trusted contacts. Both temporary migration and ‘circular’ migration (individuals who move back and forth from their home country or the host country, (often for seasonal work) are increasing. Also there are the large numbers of people, particularly In Europe who live and work in one country and then return ’home’ for the weekends where their spouses and families are. In addition there is a growth in the truly ‘transnational citizens’ who have permanent homes in both host countries and countries of origin. As a result enduring notions of ‘ community’ are being redefined. Networks are being built and enhanced based on interest rather than location – for possibly the first time the tyranny of distance and geography is finally being broken down. In 2000 80% of FDI went to 5 countries….last year less than 50% went to top 5 and 51% went to developing and transition countries.16. Nation Branding
Diasporas are in a good position to influence what people think of home countries and help the national image. Despite what some people think national images are not a function of advertising campaigns and are not created through communications nor can they be altered by communications. Images are earned rather than manufactured by creative ad agencies. The key to this is engaging and involving as many people as possible so that the home country gets more positive exposure and develops a reputation built on trust. This is based on ‘deeds not needs’. Trust is not an event. Trust is not even deserved but earned. It can take years to develop and be gone in a second. When people interact they get to know and understand each other. This can lead to interacting for mutual benefit. This revolves around attributes like integrity, decency and honesty. People and places thus develop a good name. Happy experiences with both are invaluable.17. Soft Power
Diasporas are an invaluable source of ‘soft power’. This was a term coined by Harvard Professor Joseph Nye and refers to the ability to get what you want through attraction rather than coercion. It arises from a country’s culture, political ideals and policies. Diaspora members can help a country build soft power, or, as it sometimes referred to today in the US, ‘smart power’. By implementing a comprehensive Diaspora strategy this can be harnessed and converted into ‘hard impacts’.18. International Capital Flows
There has been a fundamental shift in the makeup of international capital flows to the developing world over the last 30 years. Global philanthropy, remittances and private capital flows make up 82% of the developed world’s dealings with the developing world. Former US Secretary of State Hillary Clinton noted “It is imperative to recognize a fact that is important in all of our deliberations. Official development assistance from governments and multilateral organisations is no longer the primary driver of economic growth. In the 60’s such assistance represented 70% of capital flows into developing countries. But today, because of private sector growth and increased trade, domestic resources, remittances and capital flows, it is just 13%, even as development budgets have continued to increase.”19. Future Diaspora growth
Another reality of the ‘Global Citizen’ in the 21st Century is that patterns of migration have changed in ways that strengthen the potential for Diaspora engagement. The unprecedented movements of people on a large scale and higher percentage and frequency have set global demographic trends that have marked the last 40 years. And it looks as though this trend will inevitably continue as processes of urbanization and globalization continue their advance, and the full impact of climate and population changes take effect. If migraton continues to grow at the same pace in the next twenty years as it did in the last twenty some analysts predict there could be 405 million international migrants by 2050 up from 215 million today.20. Role of Migrants
From Alfred Hitchcock to Sergie Brin and Alexander Graham Bell to Charlie Pfizer migrants have been the great innovators and creators of companies and jobs in the US. A Duke University study founded that foreign born entrepreneurs started 25% of US technology and engineering companies in the last decade. Great companies like Google, Ebay and Intel were started by migrants. 70 million migrants have come to America since the first colonists and their innovations have driven American prosperity. Understanding how migrants have driven innovation through history is critical to making sure they continue to drive prosperity in the future. Migrants were pioneers in many industries such as Andrew Carnegie from Scotland in steel and Joseph Pullitzer from Hungary in newspapers. Over 200 of the Fortune 500 companies were started by migrants or the children of migrants. These leaders obviously assimilated very well into the US but many of them kept close connections to their homeland and, in some cases, were instrumental in developing business links with them.21. Professor Anne Marie Slaughter
The Princeton University Professor who spent two years working in the US State Department has written extensively on the role of Diasporas and their power in networking. She believes that the measurement of power is connectedness and the countries and regions with the most power can set the agenda. It is all about connected clusters of creative people. Where you are from, she says, means where you can, and, do go back and whom you trust and network with.22. Returning Diasporas
Although the US was always seen as the great migrant country the last decade has seen a change as other countries are catchng up and the US advantage is declining. Fewer foreigners are opening new businesses in the US. Canada and Australia have higher percentages of foreign born citizens as does Ireland. H1B visas have dropped in half and foreign students, who have received half of doctorates in science, are heading home. This was recently described as ‘national suicide’ by Mayor Bloomberg of New York. 500,000 western educated Chinese have gone back to China. Known as ‘sea turtles’ they have brought back what they have learnt overseas and played an important role in China’s recent growth.The great thing about migrants is that they allow host countries to tap into a vast web of global contacts and networks where ties of kin, clan, and, sometimes, dialect, help build trust.23. US State Department
It was former US Secretary of State Hillary Clinton who recognised the power and potential of Diasporas and made it central to her approach to “21st Century Statecraft”. She made it part of her Global Partnership Initiative which she placed at the heart of the State Department and the US diplomatic missions around the world. Partnering with the private sector and civil society was key to this approach and the Secretary referred to it as ‘Smart Power’. It was a ‘whole of Government’ approach that that was about creating action orientated partnerships. She identified eight priority areas that required new partnerships as follows:- Global economic recovery and growth
- Food and water security
- Engaging Diaspora communities
- Outreach to Muslim communities
- Increasing energy security
- Democracy and human rights
- Nuclear non-proliferation
- Global Heath
What was significant about this was that, for the first time ever, Diaspora was recognized as important and substantial and made a priority. The objective was to
‘engage Diaspora communities by focusing on creative mechanisms through which they can contribute to political, economic and social growth in their homelands through Diaspora philanthropy, Diaspora Volunteer Corps, Diaspora Direct Investment, Diaspora Capital Markets, Diaspora Tourism, and nostalgic trade and Diaspora advocacy and diplomacy’.
‘engage Diaspora communities by focusing on creative mechanisms through which they can contribute to political, economic and social growth in their homelands through Diaspora philanthropy, Diaspora Volunteer Corps, Diaspora Direct Investment, Diaspora Capital Markets, Diaspora Tourism, and nostalgic trade and Diaspora advocacy and diplomacy’.
24. Global Diaspora Forum – US
In 2011 and 2012 the US State Department hosted two ‘Secretary’s Global Diaspora Forum’ in Washington which attracted hundreds of delegates representing over 70 countries. This was a very public and international recognition and realization of looking at Diaspora groups in different ways. The key messages of this Forum revolved around a number of themes:- Diaspora groups can play active roles in building bridges between the US and their countries of origin
- Diaspora groups have unique expertise, insights and personal commitment to development in their countries of origin
- Diaspora groups have local knowledge and contacts that diplomats sometimes don’t have.
- Diaspora groups offer an opportunity to reorient ties with developing and emerging economies
At the Global Diaspora Forum in 2011 Hillary Clinton announced the creation of IdEA – International Diaspora Engagement Aliance. It was set up as a non-partisan, non profit organization managed via a public private partnership between the US Department of State, the US Agency for International Development (USAID) and the Migration Policy Institute (MPI). IdEA’s primary functions are to:
- Convene the global diaspora community and its partners
- Facilitate the development of diaspora-centric public private partnerships
- Raise global awareness of the importance and value of diaspora engagement
- Provide capacity building for diaspora groups and organisations
- Foster further research to enhance the understanding of the nexus between diasporas and diplomacy/development
- Disseminate best practices in diaspora engagement and encourage intra-diaspora learning
There is also a growing realization that Diaspora groups are intensely and constantly connected with their home countries and are a valuable source of accurate information as to what exactly is going on in those countries. Diasporas also have knowledge and expertise to offer as inputs to development strategies that are being designed by their host countries for their home countries.
25. Global Diaspora Forum – Dun Laoghaire
Following a request from the US State Department the EU leg of the Global Diaspora Forum will be held on May 14 and 15 in Killiney Castle in Dublin. It will cover a wide range of Diaspora related topics including Diaspora and Jobs, Diaspora and the role of Government, Diaspora and voting rights, Diaspora and Tourism, Next Generation Diaspora and Diaspora and culture. It has attracted over 50 recognised experts in this field from Ireland, Europe and
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