Diaspora Handbook en For Web 28may2013 PDF

Developing a Road Map
for Engaging Diasporas

in Development
A H A N D B OOK F OR POL IC YM A K ER S A N D
P R A C T IT ION ER S IN H OM E A N D H OST C OU N T R IES
International Organization for Migration

17 route des Morillons
CH-1211 Geneva 19, Switzerland
Tel.: +41.22.717 91 11 • Fax: +41.22.798 61 50
E-mail: [email protected] • Internet: www.iom.int
Migration Policy Institute
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Washington, DC 20036, United States
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Tel.: +1.202.266 1940 • Internet: www.migrationpolicy.org/store
The opinions expressed in the report are those of the authors and do not necessarily
reflect the views of the International Organization for Migration (IOM). The designations
employed and the presentation of material throughout the report do not imply the
expression of any opinion whatsoever on the part of IOM concerning the legal status
of any country, territory, city or area, or of its authorities, or concerning its frontiers or
boundaries.
IOM is committed to the principle that humane and orderly migration benefits migrants
and society. As an intergovernmental organization, IOM acts with its partners in the
international community to: assist in meeting the operational challenges of migration;
advance understanding of migration issues; encourage social and economic development
through migration; and uphold the human dignity and well-being of migrants.
The Migration Policy Institute (MPI) is guided by the philosophy that international
migration needs active and intelligent management. When such policies are in place
and are responsibly administered, they bring benefits to immigrants and their families,
communities of origin and destination, and sending and receiving countries.
Publisher: International Organization for Migration

1211 Geneva 19
Switzerland
Tel.: +41.22.717 91 11
Fax: +41.22.798 61 50
E-mail: [email protected]
Internet: www.iom.int

Washington, DC 20036
United States
Tel.: +1.202.266 1940
Internet: www.migrationpolicy.org/store
ISBN 978-92-9068-628-6
© 2012 International Organization for Migration (IOM)
© 2012 Migration Policy Institute (MPI)
All rights reserved. No part of this publication may be reproduced, stored in a

retrieval system, or transmitted in any form or by any means, electronic, mechanical,
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publisher.
01_12
in Development
A HANDBOOK FOR POLICYMAKERS AND
PRACTITIONERS IN HOME AND HOST COUNTRIES
Dovelyn Rannveig Agunias and Kathleen Newland

3
Foreword
FOREWORD
Since the first meeting of the Global Forum on Migration and
Development (GFMD) in 2007, participating states and civil society
organizations have given their attention to the ways that diasporas
– communities of emigrants and their descendants – contribute to
development in their countries of origin or ancestry. The multiple roles
of diasporas draw increasing recognition: as senders of remittances,
of course, but also as investors, philanthropists, innovators, and first
movers in the growth of important sectors such as tourism and in the
development of human capital. The power and potential of diasporas are
clear, but many governments perceive that they could accomplish much
more by establishing close and productive partnerships with diaspora
communities. This applies as much to the governments of the countries in
which diasporas have settled as to the governments of countries of origin.
Both of our institutions, the International Organization for Migration

and the Migration Policy Institute, have studied diaspora engagement for
the better part of a decade, in an effort to understand its complexities
and its practical implications for social and economic development – and
to help governments make the most of it. Like many other topics on the
agenda of the GFMD, the subject of diaspora engagement has gained
momentum as it has been addressed repeatedly in GFMD roundtables. By
taking up the topic repeatedly, the GFMD has helped to create voluntary
communities of interest among states, clarify concepts, and share
examples of successful policies and programs. This handbook is one of
the first concrete products of the GFMD’s Platform for Partnerships, and
demonstrates one form that joint activities of states can take within the
GFMD framework.
We are confident that this handbook will give further impetus to

governments’ engagement with their diaspora populations, and vice
versa. It conveys a remarkable amount of information about what actions
governments have tried and which of these have succeeded or failed –
and why. It describes the wide range of institutions that governments
have established to work with diasporas. And it provides governments
with a strategic road map that can help them establish a clear sense of
direction in building a constructive relationship with diasporas.
Developing a Road Map for Engaging Diasporas in Development

A Handbook for Policymakers and Practitioners in Home and Host Countries
The handbook is meant to be not just read but used. Much of
the information in it was provided by practitioners, and they will be the
4 ultimate judges of its usefulness. We hope this unique compilation of
policy, programmatic, and institutional responses across an impressive
number of governments will prove a resource to which practitioners
FOREWORD
return again and again.
Demetrios G. Papademetriou William Lacy Swing

President Director-General
Migration Policy Institute International Organization for Migration

Acknowledgements
5
This handbook was made possible with the generous support of the
ACKNOWLEDGEMENTS
governments of the Netherlands and Switzerland, through the facilitation
of the Global Forum on Migration and Development (GFMD) Platform for
Partnerships.
Frank Laczko, Head of the Migration Research Divison, IOM

Geneva, developed the proposal for the diaspora handbook and together
with Kathleen Newland, Director of the Migration Policy Institute’s
Migrants, Migration, and Development Program, jointly managed the
project through all the stages of its development. The Swiss Development
Cooperation Agency, through the leadership of Beata Godenzi and Thomas
Ruegg, and the Dutch Ministry of Foreign Affairs, through the leadership
of Sander Werrie and Rene Spitz, provided financial support and expert
advice for this project.
The authors also gratefully acknowledge the thoughtful comments

of Chukwu-emeka Chikezie, Dina Ionesco, Federico Soda, JL Sandee, Lukas
Gehrke, Reisle Markus, Sarah Tishler, Susane Melde, Tamara Keating, and
Valeska Onken; the editorial contributions of Michelle Mittelstadt and
Fayre Makeig; the design work of Anna Lyn Constantino and the overall
publication coordination of IOM Publications Unit; and the invaluable
research assistance of Genevieve Gruss, Hiroyuki Tanaka, Mariam Traore,
Orlando Salazaar-Ruiz, Jed Dayang, Serena Yi-Ying Lin, Aaron Terrazas,
Julia Schad, and Lourdes Javinez. They also thank Estrella Lajom, Head
of the GFMD Support Unit, for making this project a GFMD Platform for
Partnerships initiative and promoting the project in the GFMD context.
They give special thanks to the governments of Albania, Armenia,

Australia, Azerbaijan, Bahrain, Belgium, Benin, Bhutan, Bosnia and
Herzegovina, Bulgaria, Burkina Faso, Burundi, Canada, Chile, Colombia,
Comoros, Croatia, Cyprus, Czech Republic, Ecuador, El Salvador, Eritrea,
Estonia, Ethiopia, France, Germany, Ghana, Guatemala, Guyana, Hungary,
India, Iraq, Ireland, Israel, Kenya, Lesotho, Lithuania, the former Yugoslav
Republic of Macedonia, Madagascar, Malawi, Malta, Mexico, Netherlands,
New Zealand, Nicaragua, Nigeria, Paraguay, Philippines, Poland, Portugal,
Qatar, Romania, the Russian Federation, Seychelles, Slovak Republic,

Slovenia, Spain, Switzerland, the United Republic of Tanzania, United
Kingdom of Great Britain and Northern Ireland, Uruguay, and the United
States America for answering the questionnaires and sharing information.
They are also extremely grateful to Sofia Banuelos, Regina Barbosa,

Rebeccah Bardach, Erick Benitez, Felix Birihanyuma, Ann Castillo, Ton
6 de Waal, Javier Diaz de Leon, Christophe Franzetti, Alfred Fritschi, Vicky
Garchitorena, Grazia Goya, Manuel Handal, Jose Hernandez, Lorena
Herrera, Cindy Horst, Christos Karaolis, Soifoni Abdoul Karim, Attila Kocsis,
ACKNOWLEDGEMENTS
Awil Mohamoud, Ousman Nacambo, Imelda Nicolas, Edwin Paraison,

Nicole Paterno, Veronica Pedroza, Alessia Pozzi, Yvon Resplandy, Cécile
Riallant, Hanna Simon, Geza Strammer, Aisa Telalovic, Cesar Vallejo,
Nissanka Wijeratne, and Tesfaye Wolde for providing their time, expertise,
and important referrals.
Finally, they thank the IOM country missions and offices for their
assistance in disseminating the questionnaires to GFMD participant states.

Contents
Foreword.................................................................................... 3
Acknowledgements.................................................................... 5
Executive Summary.................................................................... 9
Introduction............................................................................. 13
1. Why Create a Handbook on Diaspora Engagement?............ 14
2. How to Use this Handbook................................................... 15 7
3. Research Methodology......................................................... 18
CONTENTS
Part 1: Developing A Road Map for Effective
and Sustainable Engagement.........................................................21
Chapter 1: The Elements of a Road Map for
Diaspora Engagement............................................................... 25
1. Identify Goals and Capacities................................................ 25
2. Know Your Diaspora.............................................................. 27
3. Build Trust............................................................................. 29
4. Mobilize the Diaspora for Development............................... 32
Chapter 2: Building Capacity for Effective Implementation........ 37

1. Challenges to Building Capacity............................................ 37
2. Building Capacity: Some Ways Forward................................ 41
Chapter 3: Monitoring Progress and Measuring Impact ............ 55

1. Why Monitor and Evaluate?................................................. 55
2. The M&E Gap........................................................................ 57
3. Closing the M&E Gap: Some Ways Forward......................... 59
Part 2: Building Institutions and Reducing Barriers........................67

Chapter 4: Building Diaspora Institutions: Carving a
Niche in the Inner Workings of Government............................. 71
1. Types of Diaspora Institutions............................................... 72
2. Challenges and Lessons Learned........................................... 90
Chapter 5: Reducing Barriers..................................................... 95

1. Six Actions to Facilitate Diaspora Engagement .................... 96
2. Challenges and Lessons Learned......................................... 104

Part 3: Creating Bridges: Six Focus Areas for
Diaspora Engagement..................................................................109
Chapter 6: Remittances: Making Private Money
Work for the Common Good................................................... 113
1. Program and Policy Options................................................ 114
Chapter 7: Direct Investment: Finding and Attracting

Investors in the Diaspora........................................................ 131
1. Policy and Program Options................................................ 132
8 2. Challenges and Lessons Learned......................................... 152
Chapter 8: From “Return of Talent” to “Brain Circulation”

CONTENTS
to “Virtual Return”: Evolving Ideas on the

Transfer of Human Capital...................................................... 159
1. Programs and Policy Trends................................................ 160
Chapter 9: Philanthropic Contributions................................... 187

2. Challenges and Lessons Learned . ...................................... 200
Chapter 10: Capital Market Investments................................. 205

Chapter 11: Diaspora Tourism................................................. 215

2. Challenges for Diaspora Tourism......................................... 221
Bibliography........................................................................... 225
About the Authors.................................................................. 253

Executive Summary
Governments of countries of migrant origin and migrant destination

recognize the value that diaspora populations may bring to development
efforts in their countries of origin. The Global Forum on Migration and
Development has, since its first meeting in 2007, looked for ways to highlight
the kinds of policies and programs that can magnify the resources, both
human and financial, that emigrants and their descendants contribute to
development. This handbook continues that effort on the basis of earlier
investigations by the collaborating institutions, the academic and policy
9
literature, consultations and in-depth interviews with government officials
EXECUTIVE SUMMARY
and nongovernmental actors, and an original two-part survey that was
designed and administered specifically for this exercise and was answered
by 62 national governments.
The handbook is divided into three major parts. Each part gives
concrete examples of policies and programs that have been effective, and
pulls out both useful lessons and common challenges associated with the
topics at hand.
Part One, in three chapters, outlines a strategy for diaspora

engagement, beginning with an adaptable “road map” that lays out four
major strategic elements: identifying the goals of diaspora engagement,
mapping the location and characteristics of the diaspora, building trust
between diasporas and government institutions, and mobilizing the
diaspora to act as partners in the development of the country of origin.
Chapter 2 focuses on capacity building, an essential component

in every element of engagement strategy. The ability to design policies
and implement programs effectively is fundamental to successful
diaspora relations. For most governments, the two major problems in
capacity building are inadequate funding and lack of technical know-how.
Overcoming these challenges calls for innovation, whether expressed
through the creation of new structures or the use of existing structures
for new purposes relating to the diaspora. Creative partnerships between
governments and the private sector, civil society organizations, other
governments, and international organizations can also be effective in
augmenting the capacity of government institutions. Good communication

with the diaspora, through such means as regular consultations or formal
diaspora councils, also contributes to building the knowledge and technical
skills of government institutions.
Chapter 3 highlights the importance of rigorous monitoring and

evaluation of policies and programs. Resources are often concentrated
at the front end of programs, while neglecting the feedback loops that
allow governments to understand whether resources are being used as
directed and programs are working as intended. Evaluations are essential
to determine whether adjustments are needed to keep policies on track.
Baseline data should be collected at the start of a project to make before-
and-after comparisons possible. State-of-the-art evaluations are costly;
aid donors can help a partner government to build a culture of evaluation,
and to select an appropriate mix of qualitative and quantitative measures
10 of effectiveness.
Part Two of the handbook looks at the legal and institutional

EXECUTIVE SUMMARY
frameworks that governments have established to facilitate diaspora

engagement. Chapter 4 describes and assesses the institutions that
governments use to interact with diaspora populations. The survey
administered to gather information for the handbook identified more
than 400 governmental institutions in 56 countries that directly engage
diasporas through their programs; 77 of them were created specifically
to deal with diasporas on a formal basis. These institutions exist at
various levels of government, from independent ministries to suboffices
within other departments. Many are associated with other government
portfolios, such as foreign relations, regional integration, trade, or labor.
Over one-third of those surveyed have been established since 2005. Their
purposes and effectiveness also vary widely.
Chapter 5 examines the legislative and regulatory frameworks

through which diasporas interact with their countries of origin. Six
mechanisms that encourage diaspora engagement are presented:
Flexible laws governing citizenship, residency, and visa access; political
rights; property rights, tax incentives for investment; portable pension,
insurance, and health care benefits; and formal recognition of diasporas
as part of the nation and integral to national development.
The six chapters of Part Three each examine a key programmatic

area in which diasporas have played positive roles in development of
the country of origin: remittances, direct investment, human capital
transfer, philanthropy, capital market investment, and tourism. These
chapters identify “menus” of policy options and extract lessons from the

experiences governments identified as relevant in their survey responses.
The chapters also spotlight the challenges that policymakers have faced
and continue to face as thinking and practice in these six areas continue
to evolve.
Chapter 6 points to two trends in remittance policy: a focus on

strengthening the financial infrastructure that supports remittance
transfer, and a renewed and more sophisticated emphasis on increasing
the productivity of remittance flows through mechanisms such as
securitization and links between remittances and related financial
products. Transparency and competition in remittance markets have
helped to bring down transfer costs in many corridors, but others remain
expensive and offer limited options.
Direct investment by diaspora entrepreneurs and venture capitalists 11

in their countries of origin strengthens prospects for economic growth by
fostering the formation and growth of businesses, supporting innovation
EXECUTIVE SUMMARY
and developing new sectors of the economy. Chapter 7 points to the
importance of access to information, networks, training, financial capital,
and public infrastructure as issues of public policy. If supported by policies
that create an atmosphere conducive to entrepreneurship, collaboration
between diaspora investors and local business owners can provide a
powerful stimulus to development.
Chapter 8 explores new policy directions relating to the transfer of

human capital through diaspora connections. Members of the diaspora
can help to fill gaps in expertise and skills that handicap developing
countries in the knowledge economy. In recent years, governments and
international organizations have turned away from “return of talent”
programs premised on permanent return of diaspora members and
toward policies to encourage circulation of highly skilled people between
their countries of origin and destinations. Maintaining connections
across borders through informal networks or organized programs allows
countries of origin to expand their access to scientific and technical skills
that might otherwise be lost to them through emigration. A delicate
balance of incentives is required, however, to ensure that local talent
gains from exposure to diaspora networks rather than feeling displaced
by them.
The role of private philanthropy in development is expanding, and

diasporas are sources of social investment ranging from major contributions
by wealthy individuals to the collective donations of middle-income and
even relatively poor migrants. Chapter 9 points out that governments

have taken three broad approaches to encouraging philanthropic
contributions from the diaspora: courting individual philanthropists,
engaging philanthropic institutions established by diasporas, and
encouraging donors to pool their funds through intermediary platforms.
Several governments, both in countries of origin and countries of
destination, have established programs that match diaspora donations
with government funds.
Chapter 10 turns to a relatively neglected dimension of financial

flows from diasporas to countries of origin through capital market
investments — bank deposits, stocks and bonds, loans, asset-backed
securities, and derivatives. Diaspora investors may have valuable
resources of cultural and linguistic knowledge, local networks, long time
horizons, and different risk perceptions in comparison to other foreign
12 investors. This chapter examines four particular vehicles that governments
use to mobilize the wealth of diasporas: special deposit accounts for
nonresidents, transnational loans, government-issued “diaspora bonds,”
EXECUTIVE SUMMARY
and securitization of future remittance flows.
Chapter 11 examines the role of diasporas in one of the main sources

of job creation and foreign exchange earnings in developing countries:
tourism. Diasporas can play a unique and important role in opening
international markets for new tourism destinations. Some governments
encourage tourism by promoting return visits from diaspora members.
Variations on this theme include promotion of medical tourism, business
tourism, and heritage (or “roots”) tourism.

Introduction
Diasporas’ engagement with their countries of origin is not new.

Long before the international community took notice, emigrants and their
descendants have taken part in development efforts at home, working
with both the public and the private sphere. Now, more than ever before,
governments at both ends of the migration cycle recognize the value of
these spontaneous engagements and are seeking ways to cooperate with
them. Countries of origin wish to attract diasporas’ talents and resources,
while countries of destination hope to increase the effectiveness of their
development assistance and immigration and integration policies. Indeed,
policymakers and practitioners in both origin and destination countries
share a common goal: to strengthen diasporas’ role in development. This,
in turn, creates a perfect window of opportunity for engagement.
13
INTRODUCTION
Diasporas have the potential to make many contributions. Most
commonly recognized among these are the remittances they send back to
their homelands — more than $400 billion in 2010 (of which an estimated
$325 billion went to developing countries),1 more than double the total
official development assistance (ODA). Diasporas are also major direct
investors in critical and emerging industries, known patrons of nascent
tourism industries, and generous philanthropists. Preliminary estimates
from the World Bank suggest that annual savings of diasporas from
developing countries could be around $400 billion.2 And terms such as
brain gain, brain bank, brain trust, and brain circulation3 have entered
economists’ lexicon, highlighting the value of diasporas’ transferrable
skills, knowledge, and networks, which are integral to the development of
a modern, knowledge-based economy.
The first four meetings of the Global Forum on Migration and

Development (GFMD) recognized these contributions. The pivotal
question now facing many policymakers is not so much if diasporas can
benefit their countries of origin but how they do so and what kinds of
government policies and programs can foster these relationships.

1 Why Create a Handbook on Diaspora
Engagement?
The widespread recognition of diasporas’ role in development has

led to an increase in policies and programs attempting to leverage the
goodwill and resources of emigrants and their descendants. But it has
been difficult to track the challenges and the successes that emerged
from these experiences. Most discussions have been theoretical or simply
descriptive and have not evaluated whether policies and programs have
achieved their purposes. As a result, they have not offered policymakers
and practitioners lessons and good practices to guide new initiatives. This
handbook is a reference guide, providing a synthesis and analysis of the
results of governments’ efforts to engage their diasporas.
This handbook is designed to fill gaps in the current discourse on

diasporas’ role in development by providing the following:
14 ÂÂA user-friendly, accessible, and practical guide on the state of the
art in governmental diaspora initiatives. Far from being exhaustive,
INTRODUCTION
the handbook presents a carefully selected menu of viable policy

and program options based on actual experiences from around
the world. It aims to highlight good practices, challenges, lessons
learned, and promising cases that can be refined and adapted to
suit local contexts. The handbook focuses more specifically on
policies and programs initiated by and with governments:
■■At various levels (regional, national, and local)

■■In both origin and destination countries
■■In partnership with other governments and stakeholders.
ÂÂA road map toward strategic and sustainable engagement. Beyond
a discussion of actual policies and programs, the handbook also
offers a strategic plan of action for those who are interested in
engaging diasporas more fully. Diaspora engagement is best
approached as a process rather than as one, or even a series, of
one-time actions. The road map is designed to help policymakers
and practitioners fit the many elements of diaspora policy into a
coherent strategy. It outlines the critical steps governments may
take with their partners as they design, implement, and improve
strategic and sustainable diaspora policies and programs.

In short, this handbook is both a source of information and a
practical guide for governments thinking of introducing or improving their
diaspora-focused policies, programs, and/or institutions.
Box 1. Defining “Diaspora”

There is no widely accepted definition of “diaspora,” and in fact the term is used to signify
many different phenomena. In its classical usage, “diaspora” is historically specific to
the forcible expulsion of the Jewish people from Babylon, and as such it carries a tragic
connotation associated with an enduring sense of loss and a longing to return to an ancestral
homeland. Thus, the Merriam-Webster dictionary defines “diaspora” narrowly as “the
settling of scattered colonies of Jews outside Palestine after the Babylonian exile.”
In contemporary social science, the term is often used much more broadly. Oxford scholar
Robin Cohen, in his Global Diasporas: An Introduction, identifies four types of diasporas,
which he labels victim (“scattering of people away from an ancestral or established homeland
after a decisive event”), labor (“movement or migration from a homeland in search of
work”), imperial (“migration from a homeland to further expansionist ambitions”), and
trade (“migration from a homeland in pursuit of trade and development”).4 Other scholars
identify belonging to a diaspora as a state of mind; Jennifer Brinkerhoff, defines it as: “The
psychological belonging to a collective culture, hostland or homeland.”5
The use of the term in policy discussions usually leaves behind the historical roots of the term 15
in favor of an empirical description, as in the definition offered by Gabriel Scheffer: “Modern
diasporas are ethnic minority groups of migrant origin residing and acting in host countries
INTRODUCTION
but maintaining strong sentimental and material links with their countries of origin — their
homelands.”6
At a minimum, “diaspora” implies a distinct identity relating to a community of origin. It is

increasingly common to use the term to refer to migrants who have left their countries only
recently and perhaps temporarily as well as to refer to settled communities.
The term “diaspora” in this handbook is equally broad. It refers to emigrants and their
descendants who live outside the country of their birth or ancestry, either on a temporary or
permanent basis, yet still maintain affective and material ties to their countries of origin. The
common thread among these recent arrivals and members of long-established communities
is that they identify with their country of origin or ancestry and are willing to maintain ties to
it. These ties are, potentially, beneficial to development.
2 How to Use this Handbook
The handbook is divided into three major parts:
Part One (Developing a Road Map for Effective and Sustainable

Engagement) presents a strategic action plan for governments that want
to engage their diasporas more fully. Engaging diasporas is as much a
process as an outcome. How policies, programs, and institutions are
chosen and created and how goals are achieved are critical indicators of
success. A road map outlines the critical elements governments should

consider as they design and implement diaspora-focused policies and
programs.
ÂÂChapter 1 (“The Elements of a Road Map for Diaspora Engagement”)

highlights the importance of taking a strategic approach to the
creation of diaspora institutions, policies, and programs. Many of
the challenges highlighted in other chapters could have been muted
or avoided if policymakers and practitioners had first identified the
goals and capacities of governments and other potential partners;
understood diasporas’ needs, desires, and potential; built trust
between diasporas and the state; and worked carefully to mobilize
diasporas to work toward mutually accepted goals.
ÂÂChapter 2 (“Building Capacity for Effective Implementation”)

spotlights the value of a sustained focus on capacity building.
This chapter emphasizes that diaspora institutions, policies, and
programs are in many ways no different from other development
16 initiatives: they thrive only if there is adequate funding,

appropriate technical know-how, and meaningful partnerships. In
building capacity, the focus should be not only on the governments
and other actors that run diaspora institutions and implement
INTRODUCTION
diaspora-focused initiatives but also on members of the diaspora

themselves and the organizations that represent them.
ÂÂChapter 3 (“Monitoring Progress and Measuring Impact”) recognizes

monitoring, evaluation, and adjustment as prerequisites to more
effective engagement with diasporas. Many of the initiatives
highlighted in Parts 2 and 3 have neglected the feedback loop:
the close monitoring of initiatives and their impact and the use of
these findings for further improvement. This chapter emphasizes
the need to overcome the “fear factor” in monitoring and
evaluation, not only among managers of programs and recipients
of funding but among donors themselves. It also identifies a range
of monitoring and evaluation tools that governments and their
partners have used, from the simple and inexpensive to the most
elaborate and sophisticated.
Part Two (Building Institutions and Reducing Barriers) discusses

the institutional and legal framework for diaspora engagement. It is
divided into two chapters:
ÂÂChapter 4 (“Building Diaspora Institutions: Carving a Niche in the

Inner Workings of Government”) reviews 77 offices, bodies, and

posts that governments in 56 countries created specifically to
formalize their engagement with diasporas. The chapter is divided
into six sections corresponding to the diaspora institution’s
place within the government’s organizational structure: ministry,
subministry, national, local, consular, or quasi-government.
ÂÂChapter 5 (“Reducing Barriers: Six Actions to Facilitate Diaspora

Engagement”) highlights legislation and regulations that
encourage diaspora members to engage spontaneously with
their countries of origin, with little or no additional support from
governments. This chapter identifies the value in reducing barriers
to engagement mainly by eliminating regulatory and legislative
provisions that restrict or discourage mobility between home and
host countries and inhibit diasporas’ participation in the polity,
society, and economy of their countries of origin.
Part Three (Creating Bridges: Six Areas of Focus for Diaspora

Engagement) identifies six program areas in which diasporas have played
a central, positive role: remittances, direct investments, human capital 17
transfers, philanthropic contributions, capital market investments,
and tourism. Chapters 6–11 aim to identify the latest thinking on each
INTRODUCTION
programmatic area by highlighting how various programs have evolved in
recent years, the challenges policymakers and practitioners have faced,
and the lessons that can be drawn from their experiences.
A companion web page hosted by the GFMD Platform for

Partnerships (PfP) website is available. The site provides a soft copy of the
handbook for download and online reading, has active links to resources
available on the Internet, and will be updated as further information
becomes available (www.gfmd.org/diasporahandbook).
In keeping this diaspora handbook true to its purpose, it is written

and formatted so that readers can choose to visit only those sections that
interest them. Each chapter stands alone, which means that there is some
repetition among chapters. Policymakers and practitioners pressed for
time should find it easy to locate the key findings of the handbook in their
areas of greatest interest.

3 Research Methodology
To identify the approaches of promising programs and to extract

lessons from them, this handbook draws heavily from information
collected directly from policymakers and practitioners. It was prepared
within the framework of PfP, a GFMD-sponsored tool to facilitate
knowledge sharing in the migration and development field. Through PfP,
states participating in GFMD were invited to share their own experiences,
needs, and priorities in engaging diasporas for development in four ways:
ÂÂSurvey. The Migration Policy Institute (MPI) and the International

Organization for Migration (IOM) administered a two-part survey
between December 2010 and May 2011 among all states that
participated in GFMD. GFMD national contact points received the
first questionnaire, which built on IOM’s 2005 survey on diaspora
engagement policies and the 2009 Inventory of Institutional
18 Capacities and Practices compiled by IOM and the International
Center for Migration Policy Development (ICMPD). Sixty-two
countries answered the first questionnaire, which identified
more than 400 institutions at various levels of government and
INTRODUCTION
civil society that actively engage the diaspora. IOM and MPI
distributed a second and more detailed questionnaire directly to
the government institutions identified by GFMD focal points, of
which institutions in 30 countries responded. The findings of both
surveys provided many of the examples, insights, and conclusions
found in this handbook.
ÂÂIn-depth interviews. Between February and July 2011, IOM and

MPI also conducted in-depth interviews with officials from 35
government institutions and civil society organizations (CSOs)
that directly manage diaspora engagement programs. The lengthy
interviews — conducted in English, French, and Spanish —
highlighted some of the issues and challenges policymakers and
practitioners face on the ground.
ÂÂConsultations. IOM and MPI also convened a consultative

workshop in July 2011. The workshop, held in Brussels, was jointly
organized with the United Nations (UN) Joint Migration and
Development Initiative (JMDI), which at that time was developing
a complementary handbook focusing mainly on civil society
initiatives. The final draft of the IOM/MPI handbook was distributed
to participating governments in advance of the Concluding Debate

of the 2011 GFMD and was discussed at the PfP session of the
GFMD meeting in December.
ÂÂReview of literature and policy and program documents. The

handbook also benefited from a review of expert literature and
policy and project documents shared by governments and other
actors. This review included evaluations and impact assessments
of programs and policies, where available.
The handbook builds on previous work on diaspora engagement

carried out by MPI and IOM. The relevant MPI materials include a
background paper commissioned by the government of the Netherlands
for Roundtable 1.2 at the 2009 GFMD in Athens, a book exploring
governmental institutions that work with diasporas,7 and a book on
modes of diaspora engagement.8 IOM has produced a number of
publications, including an extensive report outlining results of a 2005
survey on diaspora engagement policies among IOM member states,9 as
well as numerous internal and external evaluations of its various projects
involving diasporas.10 These works have contributed substantially to the 19
framework and content of this handbook.
INTRODUCTION

PART
1
DEVELOPING A
ROAD MAP FOR
EFFECTIVE AND
SUSTAINABLE
ENGAGEMENT
D
iaspora engagement is a process that requires sustained attention
across a broad front. It also requires a strategy. Part One of
this handbook offers a “road map” that lays out some of the
building blocks of diaspora engagement strategy. It recognizes that every
diaspora’s relationship with countries of origin or ancestry and countries
of destination or settlement is unique, but makes the case that certain
fundamental elements are necessary components of almost all successful
strategies of engagement.
A government’s strategy for diaspora engagement needs to include

the following elements: identifying goals, mapping diaspora geography and
skills, creating a relationship of trust between diasporas and governments
of both origin and destination countries, and, ultimately, mobilizing
diasporas to contribute to sustainable development. The “destination”
is arrived at when the diaspora is established as a true partner in the
development of its country of origin. Throughout its implementation, a
diaspora engagement strategy must devote attention to strengthening
the capacity of both government institutions and diaspora communities
to work with one another and with other stakeholders.
Figure 1 summarizes the road map in graphic form. It was developed

by the Migration Policy Institute (MPI) at the request of the government of
the Netherlands for Roundtable 1.2 of the third Global Forum on Migration
and Development (GFMD), held in Athens in 2009, and benefited from
23
input from its participants as well as other stakeholders who took part in
PART 1: DEVELOPING A ROAD MAP FOR

EFFECTIVE AND SUSTAINABLE ENGAGEMENT
prior consultations. The discussion of the road map at GFMD generated
the concept of a handbook on diaspora engagement.
The central boxes in Figure 1 represent the major elements of

the strategy. Although they are presented as a series of stages, in fact
these elements will proceed concurrently, loop back upon one another,
and leap-frog over any orderly progression from one stage to the next.
Above all, there must be constant feedback among the processes. The
arrows show the processes necessary to get from one stage to the next
(remembering that no stage is ever complete but must always remain in a
state of dynamic interaction with the others). The balloons to the side are
representative of the kind of actions associated with each element of the
strategy; they are neither exhaustive nor compulsory. Not all actions will
be relevant for all governments, as some are specific to countries of origin
and others to countries of destination.
Chapter 1 of this handbook breaks down the road map into its
component elements and discusses each of them in greater detail.
Chapter 2 focuses on the encompassing issue of capacity building, which

is important for realizing each stage of the road map and must continue
even after diaspora engagement has become a full-fledged reality. Chapter
3 addresses a key element of sustainability: continuing monitoring and
evaluation to ensure that diaspora engagement makes real progress
and achieves the goals of development of, by, and for diasporas and the
countries to which they are attached.
Figure 1. A Road Map for Diaspora Engagement
Match goals to diaspora Strengthening and

resources (human and Identify goals and capacities inventory of existing
financial) (e.g., investment, diaspora institutions and
programs
knowledge, remittances)
Local
National Regional
Identification of opinion Consultations Research
interlocutors with the
diaspora
Analysis of
census data
Mapping of diaspora
‘Listening exercises’ Know your diaspora organizations
Skills inventory
24
Coordination within gov’t Capacity building
Cultural events,
language promotion Dual
citizenship Services to the diaspora
(documents, classes,
PART 1: DEVELOPING A ROAD MAP FOR
EFFECTIVE AND SUSTAINABLE ENGAGEMENT
Explanation of and feedback on social services)

gov’t diaspora policy
Build trust Privileges to nonresident

Interventions with host expatriates and
governments descendants
Pilot projects Time
Active consular
Flexibility in project networks
Capacity building
implementation
Twinning
High-profile Mobilize stakeholders Creation or adaptation of

events (government, diaspora, government institutions
civil society) (consular networks,
Diaspora ministries, councils)
spokespersons
Adaptation Evaluation Facilitation of investment

Sponsored travel (one-stop centers)
for opinion
leaders, youth
Promoting
partnerships Integrating diasporas
into development
Effective engagement of planning and policy
diaspora in development implementation
Volunteer
corps
Source: © Migration Policy Institute 2009.

Chapter 1:The Elements of a Road Map for
Diaspora Engagement
No road map can be a “one-size-fits-all” model for governments

working to engage their diasporas more effectively. Each diaspora has a
unique set of needs and capabilities based on its historical experience
and the present realities of its countries of origin and destination — and
government approaches must reflect these complexities. Nonetheless,
a strategy for diaspora engagement will almost always include certain
fundamental elements, which are reviewed in this chapter.
Many of the process and action elements related to the four stages
of the road map are relevant to governments of both origin and destination
countries. Most of them are suitable for bilateral or multilateral partnerships
and some, such as twinning arrangements, require partnership.
1 Identify Goals and Capacities
The first step for any government in devising a strategy to facilitate 25

stronger diaspora involvement in development is to identify its own goals
in undertaking this pursuit and to define the internal tools and mechanisms CHAPTER 1: THE ELEMENTS OF A ROAD
MAP FOR DIASPORA ENGAGEMENT
(administrative, financial, etc.) required for the task. For countries of
destination, the strategy may differ according to the characteristics and
origins of the diasporas engaged.
Match goals to diaspora Strengthening and

resources (human and Identify goals and capacities inventory of existing
financial) (e.g., investment, diaspora institutions and
programs
knowledge, remittances)
Local
Consultations Research National Regional
Governments can then ascertain how far their own capacities will
go toward reaching their goals, which capacities reside within the targeted
diasporas, and which must be created or sought from other actors. If, for

example, a country of origin’s goal is to reduce poverty or support the
national balance of payments, its diaspora policy (in terms of both content
and instruments) will likely focus on remittances, business investments,
and, perhaps, capital markets. If, however, its goal is to improve the
country’s competitiveness in economic terms, its diaspora policy is more
likely to emphasize the knowledge and skills that members of the diaspora
can channel to their countries of origin. The country of origin may, for
example, facilitate diaspora members’ personal efforts to transfer skills to
the homeland, or work to connect home-country institutions of learning
and enterprise to advanced institutions in countries of destination in
which diaspora members have ties.
The government of the Philippines, for example, pursues a strategy of

large-scale contract labor deployment overseas to reduce unemployment
and maintain a stream of remittance income. India and China, by contrast,
have in recent years given priority to encouraging diaspora entrepreneurs
and highly skilled professionals to develop activities in their countries of
origin.
Beyond domestic policy considerations, goals may also be

identified as a result of dialogue between the governments of countries
of origin and destination. For a country of origin, partnership with a
country of destination could facilitate the involvement of the diaspora
in spreading information in diaspora communities about opportunities
and programs that enable greater mobility for diaspora members, or
provide financial support for joint projects involving the diaspora. For a
26 country of destination that has decided to work with a specific diaspora,
it is important to ascertain that the corresponding country of origin is
willing to involve its diaspora in development activities, and that the goals
CHAPTER 1: THE ELEMENTS OF A ROAD
defined by the destination country are consistent with the development

priorities of the country of origin.
The goals of diaspora engagement cannot be set in a vacuum. They

should be seen as an integral part of development planning, not as a side-
line or add-on. Diasporas can bring important financial, intellectual, and
social capital to the development process, but they cannot substitute for
the cultivation of domestic resources — although they can contribute
to this cultivation. Similarly, diaspora efforts cannot succeed when the
basic elements of good governance are not integrated into development
planning. The past success of governments such as the Republic of Korea
and Taiwan Province of China in bringing diaspora talent and treasure
to the table were in large part possible because both governments had
sound development strategies in place to invest in education, promote
science and technology, build infrastructure, and foster entrepreneurship.

Governments are also more likely to succeed in setting realistic but
ambitious goals for diaspora engagement if they consult with diaspora
members when setting these goals. Mexico, for example, has established
the Consultative Council of the Institute for Mexicans Abroad (CCIME),
composed mostly of leaders elected by diaspora communities. The
council makes recommendations to the government about its diaspora
policies, and engages in wide-ranging discussions about Institute for
Mexicans Abroad (known by its Spanish acronym IME, for Instituto de
los Mexicanos en el Exterior) programs. Meanwhile, the government of
Switzerland has supported a “structured dialogue” between Kosovars
resident in Switzerland and their municipalities of origin in UNSC resolution
1244-administered Kosovo, which has yielded ideas about the topics of
greatest interest to the diaspora that are also relevant for development.11

2 Know Your Diaspora
With reasonably clear goals articulated, the second crucial step

for a government is to know the diaspora that it hopes to engage. This
involves serious, comprehensive data collection (through a migrant/
diaspora census, for example); mapping the location of the diaspora;
compiling inventories of diaspora skills and experience; and engaging a
wide range of diaspora members in listening exercises to understand what
the diaspora has to offer, what it is willing to offer, and what it expects
from the government in turn. It is crucial to acknowledge the diversity of
diaspora agendas, interests, and strategies. Through the establishment of
27
a continuous dialogue with diasporas, government policies should try to
reconcile — or at least understand — differing and often diverging views. CHAPTER 1: THE ELEMENTS OF A ROAD
Successful government interventions are the result of years of continuous,
open engagement.
Identification of opinion
interlocutors with the
diaspora
Analysis of
census data
Mapping of diaspora
‘Listening exercises’ Know your diaspora organizations
Skills inventory
Coordination within gov’t Capacity building

The Indian government, for example, tasked a High-Level Committee
on the Indian Diaspora to analyze the location, situation, and potential
development role of the estimated 20 million nonresident Indians (NRIs)
and persons of Indian origin (PIOs). The information resulting from this
two-year exercise led to a new direction in diaspora policy, including the
creation of a Ministry of Overseas Indian Affairs (MOIA) in 2004.
For countries of destination, a “know-your-diaspora” exercise will

involve the collection of data in national censuses and surveys to reveal
the birthplace and ancestry of residents in the aggregate, while protecting
the identity of subgroups and individuals. With this aggregate information,
countries of destination can judge where best to invest their efforts to
create partnerships with countries of origin. More detailed information
about diaspora populations can be gathered by both origin and
destination countries through cooperation with diaspora organizations
such as professional associations, hometown clubs, and alumni
associations. Embassies and consular offices can also play an important
role in gathering information about diaspora capacities and interests. The
government of Ghana, for example, is among those directing resources to
the management of migration data — and to creating profiles of diaspora
members in particular.
The lack of reliable data on diasporas is frequently identified by

governments as an obstacle to developing effective diaspora policies
and programs. Census data do not usually capture out-migration very
well, as they offer only a snapshot of people residing in a country at the
28 time of the census. So governments must rely on destination countries
to collect data on the place of birth and ancestry of residents. Several
destination countries have conducted special studies of their resident
diaspora populations, such as the German Agency for Development’s (GIZ,

the German abbreviation for Deutsche Gesellschaft für Internationale
Zusammenarbeit)12 ten-country series on diasporas resident in Germany.13
Consular estimates are often based on analysis of destination-country data
and surveys, but are of variable quality and, often, are limited in scope;
conducting large-scale, detailed surveys is also expensive. Colombia, for
example, conducted a pilot exercise in London to map the characteristics
of Colombians living there, but has so far been unable to extend this
exercise to other locations where its diaspora is concentrated.14
The numbers, distribution, skills, prosperity, and level of integration

of diaspora groups, along with their history, will define the universe of
possibilities for diaspora partnerships. The institutional framework of a
country of origin’s diaspora policy will be quite different, for example, if

it has a large diaspora concentrated in one or a few countries (Mexico)
versus a small and highly dispersed diaspora (Ghana). Similarly, a country
of destination’s policy will differ depending on its historical relationships
with its diasporas’ countries of origin, on how successfully its diaspora
communities are integrated into the destination-country’s society, and of
course on its foreign policy priorities. The US government, for example, has
encouraged the formation of several diaspora foundations to encourage
unified action on the part of diverse immigrant communities: these
include the American Irish Foundation (now merged into The Ireland
Funds), American India Foundation, US-Mexico Foundation, and American
Pakistan Foundation. Such bodies help articulate the goals of diaspora
communities both to the governments of their countries of origin and to
the governments of the countries where they have settled.
3 Build Trust
The long-term project of building partnerships between

governments and diasporas is much more likely to succeed if it has a
strong foundation of good communication and mutual trust. Partnership
is a two-way street. Too often, diasporas have felt that country-of-origin
governments see them simply as cash cows, while some country-of-
destination governments see diaspora groups demanding support on the
basis of weak capabilities to deliver on mutual objectives. All parties must
feel that they are deriving value from the relationship. Building trust is
therefore a necessary third element of the diaspora engagement strategy.
29
Cultural events,
language promotion Dual
citizenship Services to the diaspora
(documents, classes,
Explanation of and feedback on social services)
gov’t diaspora policy
Build trust Privileges to nonresident

Interventions with host expatriates and
governments descendants
Pilot projects Time
Active consular
Flexibility in project networks
implementation Capacity building
For the country-of-origin governments, building trust with diaspora

populations may also involve creating a welcoming environment for
diaspora engagement in development activities. This would include steps

to improve the domestic business climate, such as greater transparency in
regulations and licensing requirements and more consistent application of
property law. Other elements of good governance and rule of law are also
important in attracting diaspora engagement. Countries of destination,
collectively or individually, can support such efforts. The European
Commission (EC), for example, has funded projects in a number of
migrant-origin countries to help their governments develop sound legal,
regulatory, and/or institutional frameworks that promise to encourage
increased diaspora investment.
Few governments have taken the task of gaining the trust of

a diaspora as seriously as the government of Mexico. From the late
1990s, the government has invested in communication with and service
to its diaspora.15 The creation of IME in the Ministry of Foreign Affairs
in 2002 brought coherence to these efforts through a dense network
of over 56 consular offices in North America. IME works with organized
diaspora groups on the well-known Tres por Uno (3x1) program, through
which three levels of government match the contributions of migrant
organizations to infrastructure projects in their communities of origin.
Thousands of projects have been financed — 1,613 in 2007 alone, in
443 municipalities.16 A key trust-building element of Mexico’s diaspora
engagement strategy is CCIME, the consultative council mentioned above.
The council freely criticizes and disagrees with government positions
when it feels called upon to do so, which — paradoxically perhaps —
consolidates the confidence of both parties that disagreement does not
mean alienation.
30
As Mexico’s example shows, the establishment of joint diaspora-
government decisionmaking is extremely important to building trust. At
the institutional level, Israel and its diaspora have taken this process a
step further through the development of an increasingly autonomous,
quasi-governmental Jewish Agency for Israel. Its institutions and programs
are governed jointly by government and diaspora representatives. At a
more local level, Israel’s Partnership 2000 is a prime example of building
trust through twinning between Israeli municipalities and Jewish diaspora
communities around the world. Such programs ideally have organizational
structures that feature representation from both sides, whether on
governing boards or professional committees consulting on program
development and implementation. This allows for the voice and influence
of both diasporas and government representatives in key efforts such as
identifying needs, setting priorities, and allocating resources.

Partnerships of trust with diasporas can be built on many different
kinds of programs. In addition to the kinds of services provided by IME,
which include facilitating access to health care and education, many
governments offer privileges to nonresident citizens (and, in some
cases, their descendants) such as duty-free imports of goods, tax-free
repatriation of foreign-currency income, and the ability to buy assets
or hold jobs normally reserved for resident citizens. Successful diaspora
initiatives, as identified by the EC-United Nations (UN) Joint Migration
and Development Initiative (JMDI), confirm the positive link between
privileges for diasporas (such as a special fiscal regime, or streamlined
processes to set up businesses) and the impact of their engagement.17
Many governments sponsor cultural events in countries that have

a diaspora presence; some, including China, also promote learning the
“mother tongue” by subsidizing lessons and providing teachers. Political
rights are often a high priority for diasporas; governments can both
demonstrate and earn trust by facilitating overseas voting and other
forms of political participation for expatriates. Ghana, for example, passed
a law permitting dual citizenship in 2000 and one giving voting rights to
Ghanaians abroad in 2006. Such actions are designed to instill a sense of
belonging to and engagement with the country of origin.
For the governments of destination countries, building trust with

engaged diaspora populations involves acknowledging that their dual
sense of belonging and their commitment to their homelands is compatible
with thorough integration in the adopted country. Dual citizenship is one
signal that a government can send that it trusts people who have multiple 31
commitments to meet all the obligations of full citizenship.
Destination-country governments can take the message of trust MAP FOR DIASPORA ENGAGEMENT
to a deeper level, and one more specific to development, by accepting
that diasporas have expertise that may be an important input for the
development policies of their countries of origin. The country offices of
the United Kingdom’s Department for International Development (DFID)
are encouraged to consult diaspora groups in formulating DFID country
assistance plans, for example. Furthermore, the United Kingdom supports
a Senior Executive Service drawn from diaspora members to fill senior
positions in governments of postconflict countries.

4 Mobilize the Diaspora for Development
With trust established between governments and diasporas,

the characteristics of diasporas well understood, and the objectives of
diaspora engagement clearly articulated, partnerships for development
involving diasporas can be more successfully mobilized. This may require
the creation of new government institutions or the revitalization of
existing ones.18 Senegal was one of the first countries to pioneer this kind
of arrangement, in 1993, with a landmark initiative that overhauled the
Ministry of Foreign Affairs to include oversight for Senegalese abroad.
As we will see in Chapter 4, ever-increasing numbers of migrant-origin
countries are creating ministries dedicated to diaspora issues, such as
India’s MOIA, Mali’s Ministry of Malians Abroad and African Integration,
Armenia’s Ministry of the Diaspora, and Haiti’s Ministry of Haitians Living
Abroad. Still more have offices at the subministerial level or special
institutions elsewhere in government. Delegates at the 2007 Global
Forum on Migration and Development (GFMD) diaspora roundtable
(Roundtable 1.2) repeatedly made the point that countries of origin need
an institutional framework at the national level to communicate with their
diasporas, coordinate policies, and provide support for and follow-up on
engagement.
Twinning
High-profile Mobilize stakeholders Creation or adaptation of
32
events (government, diaspora, government institutions
civil society) (consular networks,
Diaspora ministries, councils)
spokespersons
Adaptation Evaluation
Facilitation of investment
Sponsored travel (one-stop centers)
for opinion
leaders, youth
Promoting
partnerships Integrating diasporas
into development
planning and policy
implementation
Volunteer
corps
Yet even if it succeeds in building trust, a governmental institution is

not necessarily the most suitable channel for the mobilization of financial
resources from the diaspora. Israel’s experience has demonstrated
the advantages of an independent and accountable mechanism for
the transfer of philanthropic funds from the diaspora to the homeland
— in Israel’s case, the American Jewish Joint Distribution Committee is

governed solely by diaspora members. Diaspora Jews and overseas Israelis
raise well over $1 billion in philanthropic contributions every year,19 which
suggests that formal institutions for diaspora engagement can usefully be
augmented by initiatives from civil society. It is also worth noting that in a
framework of origin-destination country cooperation, a nongovernmental
mechanism for the transfer of funds might enjoy tax benefits or incentives
in some host countries.
Strategies for diaspora mobilization may include high-profile

events, such as India’s annual Pravasi Bharatiya Divas (“nonresident Indian
day”), the first of which brought together more than 2,000 high-profile
Indian diaspora members for a conference attended by most of India’s
senior politicians, alongside Nobel Prize winners of Indian nationality
or descent. Jamaica, too, holds an annual celebratory gathering of
expatriates and descendants of emigrants. In connection with these
events or independent of them, several countries recognize diaspora
members who have made special contributions to their countries of origin,
fostered better understanding between origin and destination countries,
or demonstrated outstanding merit in their professional lives. Among the
many awards given to diaspora members are the Presidential Awards for
Filipino Individuals and Organizations Overseas, India’s Pravasi Bharatiya
Samman, the World Class New Zealand Awards, and the Governor-
General’s Jamaican Diaspora Award for Excellence.
Governments of origin countries also may appoint well-known

members of the diaspora as spokespersons on diaspora issues, sponsor
travel to the country of origin for opinion leaders and youth, or establish 33
diaspora volunteer programs. One striking example of this kind of
interface is the Taglit-Birthright Israel program, initiated in 2001, which
provides free educational trips to Israel for young diaspora adults aged 18 MAP FOR DIASPORA ENGAGEMENT
to 26. Since its inception, over 260,000 diaspora youth from 52 countries
have participated in the program.20 Origin-country governments may
also establish centers or programs to facilitate financial flows from the
diaspora, such as India’s “one-stop shop” for diaspora investors.
Country-of-destination governments, acting alone or in regional

organizations, may partner with country-of-origin governments in
development initiatives, particularly those that would benefit from
technical assistance or financial support. In 2003-05 the European
Commission supported the Return of Qualified Afghans (RQA) program
for Afghan nationals living in EU member states. In cooperation with the
government of Afghanistan, and employing the International Organization
for Migration (IOM) as implementing partner, the program identified

Afghans with relevant qualifications and experience and assisted their
return to Afghanistan for assignments of 6–12 months in both the public
and private sectors. The program was small and relatively high-cost, but
an evaluation found that the participating Afghans provided needed skills
that were appropriately used.21 The Netherlands is implementing a similar
program (Temporary Return of Qualified Nationals, TRQN) in Afghanistan,
Georgia, Ethiopia, Bosnia and Herzegovina, Sudan, and Sierra Leone. It
also cooperates with the IOM Migration for Development in Africa (MIDA)
program in Ghana to support the temporary return of diaspora medical
doctors to Ghana.
The Canadian International Development Agency (CIDA) uses a

number of techniques to mobilize diaspora groups for development in their
countries of origin. It directly funds development projects executed by
diaspora groups with experience in implementing development projects,
such as the Association of Haitian-Canadian Engineers and Scientists. For
diaspora groups without such experience, CIDA has created tripartite
partnerships among diaspora organizations, Canadian development
nongovernmental organizations (NGOs), and NGOs in the countries of
origin. (Such partnerships have the added advantage of avoiding the
impression that a government’s diaspora policy is supporting an organized
political opposition in exile.) Linking diaspora organizations with Canadian
NGOs with solid experience in developing countries has enabled diaspora
organizations to gain the knowledge and expertise needed to seek donor
funds and to work independently. Many Haitian diaspora organizations,
after working with Canadian civil society organizations (CSOs) for several
34 years, now approach CIDA for separate funding to execute development
projects in Haiti on their own.
Several governments that are donors of official development

assistance (ODA, commonly known as foreign assistance) have found
it useful to create and/or support platforms to facilitate diaspora
involvement in development, such as Diasporas for Development in the
Netherlands, the Regroupement des Organismes Canado-Haїtiens pour
le Développement in Canada, and Connections for Development in the
United Kingdom. Such institutions encourage the systematic sharing of
ideas and information while also serving as vehicles for capacity building.
In some cases, they may also evolve into operational partners for national
development agencies.
In working with diaspora partners, a number of donor governments

and consortia have found that the most successful projects and programs
are those that build on existing diaspora initiatives rather than those

started anew at the initiative of governments. The EC-UN JMDI observes
that “policies too strongly driven by governments can act as a deterrent
for diaspora engagement.”22
Government partners in diaspora engagement, whether of

destination or origin countries, are by no means confined to the national
level. Of particular importance is establishing links between diasporas
and local levels of government, given that diasporas’ contributions tend
to be geared toward their places of origin. State/provincial or municipal
governments may establish partnerships with diaspora populations to
assist in development of the countries of origin.
What is novel, however, is local governments’ interest in twinning

with municipalities that are large and/or recent sources of newcomers
to their communities. Dutch municipalities have established relations
with local governments in source countries such as Turkey, Suriname,
and Morocco. At present, there are some 39 diaspora-focused municipal
twinning initiatives in the Netherlands, and their number is increasing.23
City-to-city partnership projects often focus on strengthening local
governance. For instance, the Dutch municipality of Zeist advises its
partner municipality in Berkane, Morocco, on how to improve waste
management.
35

Chapter 2: Building Capacity for Effective
Implementation
Translating promise into reality is more easily said than done. While
many governments acknowledge the importance of diaspora engagement
in development, many still lack the capacity to design effective policies
and implement them on a meaningful scale. This explains the gap
between schemes that look good on paper and truly effective policies and
programs that actually make a difference. Indeed, effective engagement
almost always requires a concerted effort toward capacity building.
For many countries, the main challenges to effective engagement

seem to center on two issues relating to capacity: how best to obtain
adequate funding and how to improve technical know-how. Governments
serious about engaging diasporas have to commit to funding their efforts
as fully as possible (and seeking funds from elsewhere to fill in remaining
gaps) and to obtaining the operational knowledge and skills needed to
pursue goals effectively.
1 Challenges to Building Capacity
A. Amassing Adequate Funding
Analyst Michael Fullilove has noted that most diaspora institutions

37
are underfunded.24 A closer look at the budgets of the Philippines, Mexico,
CHAPTER 2: BUILDING CAPACITY
FOR EFFECTIVE IMPLEMENTATION
India, and Mali — four origin countries that have actively engaged their
diasporas in recent years — seems to support this observation. Institutions
in charge of the diaspora portfolio in these countries have received a
relatively small allocation from the national government.
The responsibility for protecting and engaging the Philippines’ huge

diaspora largely rests on three government agencies: the Departments
of Labor and Employment and Foreign Affairs, and the Commission on
Filipinos Overseas (CFO). In 2009 the three bodies spent a total of 19.7
billion pesos ($437 million), or 1.7 percent of total government expenses
that year.25 CFO, which is the key agency in charge of engaging permanent

emigrants, received the smallest allocation among the three, at only 45
million pesos ($1 million), or 0.004 percent of the national budget.26
Mexico’s spending on its Ministry of Foreign Affairs, as a portion of

the total executive-branch budget, is also quite low, at only 1 percent or
5.3 billion pesos ($397 million) in 2009.27 From this amount, approximately
6 percent ($24 million) was spent on services to Mexicans abroad. This
money funded the Institute for Mexicans Abroad (IME), the key agency
driving Mexico’s diaspora agenda, consular activities, and other related
programs. At approximately $2.8 million, IME’s budget for 2009 was the
smallest portion of the ministry’s total budget for services to Mexicans
abroad.28
India and Mali both created separate ministries whose explicit

purpose is to address the needs of diaspora populations. India’s Ministry
of Overseas Indian Affairs (MOIA) received 80 crores ($17 million) in the
2009–10 budget, or 0.02 percent of the overall central government budget
(416,000 crores or $90 billion) during the same period.29 The Ministry of
External Affairs, which is responsible for maintaining consular presence
abroad, among other things, received an appropriation that was six times
more than that of MOIA (579 crores or $125 million), but still a very small
proportion relative to other government departments. Combined, the
two ministries comprised 0.16 percent of the total Central Plan outlay.30
Similarly, in 2009, the Ministry for Malians Abroad and African

Integration had a total budget of about 1.8 billion CFA francs ($3.9
million).31 Government funding for services to Malians abroad provided
through consulates is budgeted through the Ministry of Foreign Affairs and
International Cooperation, which received 22.7 billion CFA francs ($49.3
million). Both ministries made up 7 percent of the central government
38 budget of 723.9 billion CFA francs ($1.6 billion).32
The amount of money governments should allocate to diaspora

institutions is highly debatable. In general, analysts use overall budget

allocations to assess a country’s spending priorities and values;
examining, for example, how much is spent on defense versus health care
or education. Determining the appropriate level of spending is difficult
when the target audience and main beneficiaries have higher incomes
than their compatriots at home and in some cases are not even citizens.
In the absence of reliable data or standards, one reasonable

measure of spending might be to compare the budget allocation with the
percentage of a country’s population that lives abroad. With that in mind,

Mexico, the Philippines, and Mali, which both have nearly 10 percent
of their respective populations abroad, could arguably increase their
budget allocation on their diaspora efforts.33 Another suggested yardstick
pertains to remittances sent as a percentage of gross domestic product
(GDP). Using this measure, the Philippines, where remittances make up
13 percent of GDP, should be spending a significantly higher proportion
of its budget on diaspora efforts than Mexico, Mali, and India, where
remittances are around 3 percent of GDP.34
However, developing countries with very limited and dwindling

financial resources face real spending and allocation constraints. As the
case of the Philippines shows, the public works and highways and education
departments, respectively, claimed 11 and 5 percent of the 2009 budget.35
The largest budget allocation, at about 252 billion pesos ($6 billion) or 22
percent of the budget, went to paying interest on the national debt — a
problem that plagues many heavily indebted countries.36
Indeed, for many governments, one of the most pressing challenges

to diaspora engagement is how to initiate programs that do not drain the
already limited public coffers while bringing in critical financial resources.
B. Acquiring Technical Know-How
Budgets alone are imperfect measures of state capacity. Spending

more money does not necessarily ensure a higher-quality outcome. For
many countries, technical know-how — the operational knowledge and
skills needed to pursue goals effectively — presents a larger hurdle than
money.
Successful diaspora engagement requires designing smart ways 39

of delivering services and programs to a dispersed and heterogeneous
population. A good case in point is the largest migrant welfare fund
operated by a sending-country government. Faced with the problems

attendant with a rapidly expanding temporary worker population
abroad, the Philippine government established the Overseas Workers
Welfare Administration (OWWA) in 1981 to protect Filipino migrant
workers and provide various services, from repatriation to new-business
loans. In 2005, despite amassing huge reserves, OWWA spent only 0.03
percent of its fund balance on services, in most cases meeting only the
minimum requirements mandated by law.37 OWWA’s limited experience
in administering programs partially explains its conservative spending. For
instance, it has tried to provide livelihood loans for many years but has

always had poor repayment rates. Aware of its service-delivery problems,
OWWA opted to safeguard its funds by placing them in development
banks.38
Even more than lack of money, in some cases lack of knowledge

constrains the efforts of destination-country governments. In the
Netherlands, for example, a 2009 study of twinning projects found that
medium-sized municipalities such as Arnhem, Meppel, and Haarlem,
which host a relatively small number of migrant groups, had successfully
involved migrant organizations in twining programs.39 On the other hand,
large municipalities such as Amsterdam, with a huge migrant population,
had learned that involvement with one migrant group over another
can create tension among groups and between the state and migrants.
Migrant populations abroad are often divided and politicized, which can
make involvement with them difficult. Indeed, some Dutch municipalities
have chosen to disengage with diaspora groups altogether to avoid dealing
with diaspora politics.40
The difficulties of acquiring the operational knowledge and skills

to engage diasporas effectively can be attributed to many factors.
Long-standing programs, such as OWWA in the Philippines, seem to
have been subject to very little monitoring and evaluation. For many
engagement efforts, however, the key problem stems from a lack of
sustained commitment within governments. Critically important technical
know-how is acquired typically through years of trial and error. Many
government initiatives on diasporas, however, tend to be short-lived and
depend on the support of the central government, which can vary across
administrations. For instance, the main government institution in charge
of Moroccans abroad has been alternately promoted and demoted as it
has gained and lost support within the government. Started as a ministry
40 in 1993, it was downgraded to an office under the Ministry of Foreign
Affairs in 1995.41 In 2007 it was promoted to its current position — an
institution headed by a minister-delegate (undersecretary) directly under
the prime minister’s office.42
Similarly, in Yemen, various diaspora institutions have been

created and taken down since the first office, the Department of
Immigration and Expatriates, was set up in 1962. Recent incarnations
include the Ministry of Expatriates Affairs in 1990, the Expatriates
Affairs Council in 1996, the Ministry of Expatriates Affairs in 1997,
and the Ministry of Foreign Affairs and Emigrants in 2005; in 2007
the diaspora institution was promoted back to being the Ministry
of Expatriates Affairs.43 This lack of continuity makes institutional
learning — a factor critical to building expertise — more difficult.

2 Building Capacity: Some Ways Forward
To confront financial and technical constraints head-on, governments

must learn how to successfully build expertise while sharing costs, both
financial and otherwise. Effectively loosening resource constraints
requires adopting both conventional and pioneering approaches. In order
to build capacity, governments have many options, five of which are
outlined below.
A. Create Innovative and Cost-Effective Institutions and

Programs
Squarely addressing resource constraints requires, first and

foremost, innovative thinking. Some governments, for instance, have
taken an atypical route by creating innovative institutions and programs
that utilize private resources to pursue decidedly public goals.
1. Innovative Institutions
Some governments do not want to be seen — for whatever reason

— as spending too much on their diasporas or intervening in the affairs
of destination countries. Others are looking for efficient and feasible
approaches that would maximize engagement activities with minimum
investment. The solution for some governments is to create quasi-
governmental institutions that deliberately blur the distinction between
nongovernmental and governmental bodies.
Foundations. Some governments, such as those of the Republic

of Korea and Morocco, have created foundations to indirectly manage
41
their diaspora activities. In 1997 the government of the Republic of
Korea established the Overseas Koreans Foundation (OKF), a nonprofit

organization affiliated with the Ministry of Foreign Affairs and Trade. The
foundation had a clear development mandate from the outset: to “utilize
the capabilities of overseas Koreans for national development in line with
its globalization policy.”
According to the foundation’s website, the Korean government

recognized the need to establish a government organization for overseas
Koreans; however, “this idea came into conflict with the government’s
policy of keeping the government small, and there was fear that it would

cause some friction with the governments of the nations where the
overseas Koreans were residing.”44
Similarly, in 1990, Morocco created the Hassan II Foundation for

Moroccans Residing Abroad (FHII). Established by royal decree, FHII is
officially described as a “nonprofit institution with a social vocation,
endowed with a moral personality and financial autonomy.” FHII is a private
organization that has an especially close relationship with the Moroccan
government. It is not a government institution, although the government
sets its mandate. Interestingly, at one point in time, the minister in charge
of Moroccans abroad also ran the foundation. Currently, FHII’s president
is Princess Lalla Meryem.45
Welfare Funds. Other countries have chosen to create a government-

managed welfare fund financed by migrants or their employers and/or
recruiters. These funds, which can be found in Bangladesh, Pakistan, the
Philippines, Sri Lanka, and Thailand, among others, provide a range of
services to migrants including predeparture orientation seminars, loans,
emergency repatriation, life and medical insurance, and reintegration
assistance. The setup offers a potentially efficient and feasible solution
for origin governments to share the cost of protecting their temporary
migrants while abroad.
The Philippines manages one of the largest welfare funds in

the developing world, pooled from the mandatory $25 membership
contributions of foreign employers and migrant workers. Entirely self-
funded and receiving no budget allocation from the national government,
the welfare fund has brought in more money than it has spent. This
surplus is added to the fund’s equity. As a result, the fund grew more
than fourfold in 13 years, from 2.2 billion pesos ($47 million) in 1995 to
42 nearly 12 billion pesos ($266 million) in 2008.46 To place the magnitude of
this amount in the Philippine context, the welfare fund’s total assets were
nearly twice the budget of its mother agency, the Department of Labor
and Employment, and almost three times the budget of the Office of the
President during the same period.47
Diaspora Councils. Creating diaspora councils, usually a mix of

community leaders and government officials, can also be an excellent
source of funding and technical know-how. Councils typically advise
the government on diaspora-related matters with very minimal cost to
the government. One of the earliest examples is Mali’s High Council of
Malians Abroad, which serves as the official representative of the Malian
diaspora, both in Mali and in diaspora members’ countries of residence.

Local councils are elected in various countries where Malian expatriates
are concentrated. These national councils then elect representatives to
the High Council.48 As already mentioned, Mexico’s Institute of Mexicans
Abroad (IME) was established in 2003. The 2006-08 Consultative Council
of the Institute of Mexicans Abroad (CCIME) had 100 of its members
elected or appointed by the Mexican communities in the United States
and Canada that were large enough to be served by a Mexican consulate;
15 members were appointed based on merit and achievement.49
Diaspora councils are particularly significant since they bring

invaluable resources to the table: contacts, funding, and ideas to
implement programs. They are also excellent sources of feedback from,
and information about, the diaspora — feedback that IME can use to
justify requests for more funding, among other outcomes. For instance,
in Mexico, due in large measure to the pressure exercised by CCIME
members, funds collected as passport and consular ID fees now remain
within the Ministry of Foreign Affairs to finance the activities of the
consular network.50
2. Creative Programs
Beyond setting up innovative institutions, governments can also

choose to create programs and projects that directly address financial and
technical constraints in novel ways. Although some diaspora programs
are funded via the traditional budget line, many more are funded by
other means. For instance, Colombia Nos Une, a program of the Bureau
of Consular Affairs and Colombian Communities Abroad in the Ministry
of Foreign Affairs, is funded with a traditional budget line like any other
government ministry. However, the program also works with what the
Colombian government describes as “investment projects,” which provide 43
an additional budget line for specific projects. As of this writing, Colombia
Nos Une had two such projects, which provide a total of $2.5 million in
general program support.51
Matching Funds. Among the best-known diaspora programs are

matching funds — schemes wherein different levels of government
allocate a dollar or more for every dollar that migrant organizations invest
in their communities. The most frequently cited examples come from
Mexico (where matching programs were pioneered and popularized),
among which, the state of Zacatecas’s Tres Por Uno or 3x1 program is the
most celebrated (see Box 1).

Box 1: Tres por Uno (3x1) Program: An Innovation
Considered by many observers as a best practice, the 3x1 program has been replicated
across Mexico, throughout Latin America, and around the world. Although much has been
written about its now-popular approach to diaspora engagement, few have focused on the
program’s ground-breaking nature. For instance, when the project started in the Mexican
state of Zacatecas in the 1980s, the inherent lack of trust between the state and the diaspora
was striking. Thus, the Zacatecas government’s motivation was not only to draw migrants’
resources into community projects at home, but also to generate a relationship of trust
between the state government and the migrants. The program was designed to squarely
address both goals at once. Genero Borrego, the Zacatecas governor at the start of the
program, was quoted as saying: “The risk that [the migrants] were running by putting a dollar
into a public project, well, I was running that same risk. I wanted them to know that we were
in it together.”
Source: Natasha Iskander, “Social Learning as a Productive Project” in Development Dimension: Migration, Remittances and
Development (Geneva: Organization for Economic Cooperation and Development Publishing, 2005).
Other governments who look to the 3x1 program as a model

would do well to replicate the innovative spirit that made the program a
success. The key challenge is not just a matter of taking a model to scale or
adapting it to another country or region. Rather, it is about cherry-picking
specific elements of a program’s design and reconfiguring them in light of
particular socioeconomic and political contexts.
For instance, the US Agency for International Development (USAID)

recently awarded 14 diaspora-driven businesses in seven African countries
matching grants ranging from $50,000 to $100,000. The awardees were
chosen through a highly competitive process — a diaspora contest aimed
at identifying the most viable and sustainable start-ups and established
enterprises. USAID collaborated with Western Union, a private remittance
company, to jointly finance the grant.52
Another variation of the 3x1 model is the funders’ collaborative

44 of the US-based organization Hispanics in Philanthropy (HIP). This fund,
considered one of the most successful programs of HIP, has raised more
than $39 million in donations to channel to Hispanic communities as it
tries to link large philanthropic organizations with small-scale, community-

based donors.53 These local donors join together and pool funds toward a
certain goal, to be complemented by matching grants from large national
donors, until HIP’s matching funds are large enough to allow HIP to initiate
calls for project proposals. HIP works closely with the private sector: the
Standard Bank Foundation in Argentina, the Falcondo Foundation and
a network of individual donors in the Dominican Republic, the Western
Union Foundation, and the Mexican Entrepreneur Foundation among
them.54

Combining Topics. Governments may also augment their capacity
to implement diaspora projects by linking them with other projects.
Germany, for instance, does not have a specific budget for migration
and development projects within the German Agency for International
Cooperation (GIZ). However, this limitation does not preclude the agency
from engaging diasporas, mainly by linking diaspora-related projects to
other topics such as climate change and security.55
B. Capitalize on Existing Government Structures and Projects
Another way to augment capacity is for governments to work

within existing structures and projects. Reinventing the wheel, although
necessary in some situations, may be a waste of resources in others. This
is especially true for governments with limited resources at the outset. As
Imelda Nicolas of CFO notes, “we are not reinventing the wheel, we are
not coming up of with new projects, we are just identifying projects and
programs that are already in place that overseas Filipinos can be involved
in . . . So CFO is like a coordinator, giving directions and referrals on where
to go if they need.”56
Governments may also choose to capitalize on existing consular

networks and link with other government offices, both at the national and
local level.
1. Consular Networks
Consulates remain the most important interlocutors for diaspora

populations. A 2004 survey of International Organization for Migration
(IOM) member governments revealed that 76 percent had consular
services interacting with citizens abroad.57 Consulates are in a unique
45
position to gauge diaspora needs and partner with other actors in the
private and public realm. They can play a key role both for countries with
well-established diaspora policies, where consulates are given special
recognition and resources, as well as those with frail policies, where
consulates seem the sole link to diaspora populations.
More than ever, governments are instructing their consulates to

interact with emigrants more systematically. A review of the embassy
and consular websites of 30 origin countries with active diaspora policies
suggests an extensive consular presence in the top destinations of their
respective diasporas. The services offered at consulates vary, ranging from
language instruction to notary services, from issuing identity cards to

organizing discounted tour packages to the homeland, both for business
and leisure. Many consulates provide information on developments at
home, particularly in the business sphere, as well as programs on culture,
education, and economic development.58
Many governments have expanded their diplomatic presence to

places with large diaspora populations. For instance, although Mexico
has maintained an extensive consular network in the United States since
the 1800s, the government beginning in 2000 established new consulates
in various US cities,59 and as of mid-2009 has 50 consulates throughout
the United States.60 Similarly, the Philippines has opened four diplomatic
posts since 2008 to reflect the increasing presence of Filipinos in Ireland,
the Syrian Arab Republic, and China.61 Currently, it maintains 88 offices in
65 countries.62
The composition of diplomatic staff has also evolved to

accommodate diaspora needs and interests. Each Ethiopian embassy
now has a diplomat assigned to handle expatriate issues.63 About 70 to
75 IME representatives in Mexican consulates in the United States are in
charge of implementing IME programs and projects.64 Likewise, given the
government’s focus on protecting Filipino workers abroad, many of the
Philippines’ consular offices have welfare and labor attachés to attend to
distressed and abused workers.
2. Other Government Structures
Governments may also augment their capacity to engage diasporas

by capitalizing on the resources already existing in various government
agencies. Diaspora engagement covers many traditional areas, from
46 finance and trade to arts and culture. Governmental capacity already
exists in these areas; instead of creating new institutions to launch the
diaspora effort, governments may choose to adopt a more decentralized
approach. They may create intergovernmental committees or choose

to support diaspora initiatives at the local government level in order to
create synergy among different parts of the government.
For example, Chile created the Interministerial Committee for

Chilean Communities Abroad to formulate public policies on the diaspora.
The committee is composed of 12 public institutions that in some way
or another are responsible for addressing the needs and demands of
the nearly 1 million Chileans residing abroad. The institutions include,
for instance, the Directorate for Civil Registration and Identity, which
issues ID cards and passports and registers marriages and births, and the

National Health Fund, which provides publicly funded national health care
coverage.65
Local government units are also perfectly positioned to design

diaspora programs in tune with home-country community needs and
opportunities. With proper coordination, they can complement the
activities of the central government and share the cost of engagement.
China, for instance, has created one of the most expansive networks of
local diaspora offices. The competition for talent among local governments
in China is so stiff that cities reportedly send delegations overseas to seek
diaspora talent without notifying officials at Chinese consulates.66 The
Chinese central government has chosen to provide the overall policy
direction on diaspora engagement while giving relative independence
to local offices so that they can adopt innovative methods suiting local
needs.67 Concerted engagement at the local level can be also be found in
some states in India, in particular Kerala and Gujarat, and in 29 of the 32
Mexican states.68
C. Tap into the Available Pool of Resources Afforded by the

Private Sector, Civil Society, and International Community
Problems with funding and technical know-how are among the

reasons governments need to establish meaningful partnerships with
external actors. They can expand their capacities by systematically tapping
into the financial and technical resources made available by the private
sector, other governments, and international organizations.
1. Private-Public Initiatives
Private-public partnerships augment tight government budgets by 47

leveraging community contacts and resources. The quasi-governmental
institutions described in Chapter 4 are good examples in this respect
because they use private resources to pursue decidedly public goals. In the
Philippines, for instance, CFO formed a Business Advisory Circle composed
of government agencies, nongovernmental organizations (NGOs), and
private entities that can give advice and guidance to Filipinos abroad
who are interested in investing in the Philippines.69 Likewise, Colombian
consulates abroad work closely with about 800 migrant associations
dubbed by the government as “multipliers” since they effectively relay
information on consular activities to members of their communities as
well as revert back with the needs of those communities.70 As Box 2 shows,
Mexico has been especially proactive in sharing the costs of engagement.

Box 2: Sharing the Costs of Engagement: The Mexican
Experience
Mexico has forcefully pursued partnerships with various organizations in the United States
to meet its goals on diaspora engagement. One project maintains on-site education centers
that teach English to Hispanic adults. These centers are hosted by sponsoring organizations
that provide the classroom and teachers. The National Institute for Adult Education (Instituto
Nacional Para la Educación de los Adultos, INEA) and the National Council for Workforce
Education (Consejo Nacional de Educación para la Vida y el Trabajo, CONEVyT) provide the
core curriculum, while the Mexican government acts in a coordinating role. The success
of other Mexican programs in areas including health promotion, financial education, and
remittances, depends largely on their partner organizations’ resources and technical ability.
Another project is Ventanillas de Salud, which provides basic health care information to
Mexican migrants in the United States and makes referrals to US hospitals, health centers,
and government programs where patients can get care without fear of being turned over to
immigration authorities. Javier Diaz de Leon, of the Institute for Mexicans Abroad, notes in
an interview for this handbook that the project “is not as expensive as it might be expected
because the government works with consulates and local organizations. Each ventanilla is
an agreement between a Mexican consulate and a local organization. So there are costs
associated with this, but most of the services are provided by these organizations.”
Many of IME’s programs work on sponsorship schemes. One section within IME works on
identifying and promoting sponsorship opportunities. As Diaz de Leon highlights, “there
are a lot of people and companies who want to promote themselves towards the Mexican
diaspora, they are very interested in appearing with IME in some of our programs . . . We rely
a lot on an aggressive strategy to find funds from various sources.”
Sources: Laureen Laglagaron, Protection through Integration: The Mexican Government’s Efforts to Aid Migrants in the United
States (Washington, DC: Migration Policy Institute, 2010), www.migrationpolicy.org/pubs/IME-Jan2010.pdf; Interview of
Javier Diaz de Leon, Director, Institute for Mexicans Abroad, government of Mexico, phone interview by author, May 4, 2011;
see website for more information, www.ime.gob.mx/index.php?option=com_content&view=article&id=51&Itemid=383&la
ng=es.
2. Partnerships among Governments
Government partnerships across nations can also make a difference

by sharing the financial costs of engagement. While many destination
48 countries support their own diasporas abroad as in the case of Australia’s
fellowship initiatives for expatriates, funded by the National Health and
Medical Research Council others have initiated programs supporting the
homeland-development activities of immigrant communities within their

borders. For example, the United Kingdom’s development agency, the
Department for International Development (DFID), initiated a £3 million
($4.7 million) program in March 2008 with Voluntary Service Overseas
(VSO), a UK-based international development charity, to support and help
people from diaspora communities work as volunteers in their countries
of origin.71
Indeed, the “codevelopment” policy that was introduced in France

in the early 1990s is now back in vogue. The concept made its debut as

a theoretical framework for leveraging the resources of African migrant
organizations in France to promote development in Africa. The concept
of codevelopment portrays migration as benefiting both countries of
origin and countries of destination (although some applications of it
have been criticized as placing too much emphasis on migration control).
The approach emphasizes developing local economies and promoting
partnerships among enterprises, local authorities, training institutions,
and associations.72 Countries such as Italy, Spain, and France have seen
an increase in public policy plans and funding schemes to support
codevelopment projects.73 Some developing countries have explored this
shared interest with destination governments and identified projects of
mutual interest.
As the survey conducted to inform this handbook shows, the

majority of diaspora institutions in destination countries are development
agencies.
For instance, in December 2000, Mali and France signed a

codevelopment agreement. From 2003 to 2005, 250 return-and-
reintegration programs, 22 local development projects, and ten projects
for youth of immigrant ancestry (in France) were completed. Of the €3.5
million ($4.8 million)74 raised to finance the projects, about 70 percent
(€2.5 million or $3.4 million) came from the French government.75
As previously noted, the past decade has seen a number of Dutch

municipalities establish relations with local governments in immigrant-
sending countries such as Turkey, Suriname, and Morocco. Twinning
with these so-called “diaspora countries” is relatively new, with most
ties established only after 1999. At present, there are some 39 diaspora-
focused municipal twinning initiatives in the Netherlands, and their
number is increasing.76 49
Box 3: Doing Development Work At Home: Challenges

Facing Development Agencies in Destination Countries
Among destination countries, development agencies are emerging as the key government
actors tasked with engaging diasporas. As Regina Barbosa of Germany’s Deutsche
Gesellschaft für Internationale Zusammenarbeit (GIZ) explains, generally “the goal is to
see how migrants can be partners of development cooperation.” GIZ in particular wants to
“encourage links between integration and development by promoting the engagement of
migrant organizations and linking these activities at the municipality levels.”
Realizing the potential of migrants as development partners is not without its challenges.
One is the reluctance of some in the development industry to work on diaspora-related
projects. In Germany, for instance, a member of GIZ stated that maintaining an “open

dialogue between development cooperation, banks, and migrant organizations” and the
“development of a concrete product (information brochure)” were two of the most difficult
initiatives implemented because of the “reluctance amongst project coordinators to
tackle a new topic which seems to have more relationship with national problems than to
development cooperation.”77
Another problem relates to how agencies are organized. Alfred Fritschi of the Swiss
Agency for Development and Cooperation (SDC) explains that in Switzerland, for example,
“integrating the diaspora perspective means opening a new front of contacts and dialogues
with organizations.” He states:
“Up until now we were organized in a way that our main dialogue is between our
representatives in the country and the local leaders. We are not prepared to have an open
front of work in Switzerland addressing institutions here, the very important issue of dialogue
opens up many doors and we are not organized and prepared enough for this . . . We are
not able to respond to dozens of small initiatives from the diaspora coming directly to our
administration.”
Another related issue is how programs are funded. Fritschi explains that SDC cannot be
financially active within Switzerland because it is mandated by law to focus on supporting
activities in countries where it has programs. For Fritschi, “there is the need for a strong
interministerial common approach if you want to deal with the diaspora, because the
diaspora has a lot of different interests which are in the field of different administrative
bodies.”
Source: Barbosa interview, April 2011; Interview of Alfred Fritschi, Co-head, Division of Western Balkans, Swiss Agency for
Development and Cooperation, phone interview by author, May 10, 2011.
3. Partnerships with the International Community
The international community is an important source of both funding

and technical know-how. A number of origin governments have explored
resources available from international finance institutions. For example,
the Social Development Investment Fund El Salvador (FIDSL) funded its
Subasta de Fondos Program through a $20 million low-interest loan from
50 the World Bank. Under this program, municipalities offered to shoulder
a proportion of the funds for a specific project. For example, if the
World Bank wanted to fund electrification projects, municipalities would
present their proposals and offer to finance a certain amount toward the
completion of the projects. In an auction-like arrangement, municipalities
that offered the most would get a loan for the rest of project. Diasporas
were involved because municipalities asked hometown associations
(HTAs) to contribute to the municipality’s share of the cost. Also, in many
cases diaspora members had projects that they wanted to put forth and
so engaged with municipalities to put these projects in line for funding
through the auction.
Governments have also partnered with international organizations

such as IOM and the United Nations (UN) to initiate permanent return of

highly skilled and well-financed members of their diasporas. As discussed
at length in Chapter 8 of this handbook, IOM, for example, has been
implementing return-of-talent programs in Africa,78 Latin America,79 and,
more recently, in Afghanistan. Between 1983 and 1999, it reported success
in relocating about 2,000 expatriates to 11 African countries.80
Recent years have seen international organizations focus less on

the return and resettlement of emigrants and more on the transfer of
skills and financial resources, regardless of return. A foremost example of
such a project is IOM’s Migration for Development in Africa (MIDA), which
aims to mobilize the skills and financial resources of African diasporas to
support development projects at home. Described as a capacity-building
program, the project focuses on facilitating temporary movement and
does not entail the systematic return of migrants.
D. Build the Capacity of Diaspora Groups
Many diaspora groups are small and underfunded, with entirely

volunteer staff, donated office space (if any), and a minimal operating
budget. Because most members of these groups hold regular jobs, they
may have difficulty finding the time to organize the affairs of the group.
As Cindy Horst and her colleagues have noted, “this can have serious
implications for what such organizations can achieve, as it means the
amount of time and resources they have available may be particularly
limited.”81
To address this problem, some governments, especially in

destination countries, have chosen to help diaspora groups build capacity.
Some governments have provided technical assistance and training
for diaspora groups in financial management, fund raising, project
management, reporting requirements, and other areas. Some government 51
agencies provided the training directly themselves or indirectly through a
contractor.
The Dutch government, for example, held training courses to

strengthen the capacities of diaspora organizations in the Netherlands.
These covered basic skills in areas such as how to set up an organization,
what kind of structure to select, and how to write a good project proposal;
how to identify potential donors; and the working of government
structures. The Ministry of Foreign Affairs did not provide the training
directly but hired another organization to do so. About 30 or 40 people
representing various diaspora organizations were trained at a cost of
€100,000.

Ultimately, the goal of such training programs is to build up a
platform or umbrella organization that represents other organizations. As
Sander Werrie of the Ministry of Foreign Affairs (MFA) explains, “if the
diaspora organizations could group together and come up with a general
agenda, it would be easier for the MFA to interact with them.” Werrie
notes that most organizations lack the capacity to organize as such.82
Other destination countries, such as Norway and Finland, have

provided similar training sessions.
E. Learn from Others
Learning from the experiences of others is another route to

building technical know-how. In the planning and design of a diaspora
policy, governments need not start from scratch. Although many diaspora
initiatives are new, others have a long record. A number of countries, such
as Israel, Taiwan Province of China, Italy, and Greece, have experience that
offers critical lessons for today’s policymakers.
The Indian government, for instance, tasked a high-level committee

with recommending a broad but flexible policy framework and country-
specific plans to engage the estimated 20 million members of the Indian
diaspora. For two years, the five-person committee — composed of two
current members of the Indian parliament, two retired career diplomats,
and an NGO leader — was tasked with studying, among other topics,
various governments’ diaspora efforts in order to extract relevant lessons
for India. In 2004 the committee produced an impressive, publicly available
600-page report that includes 22 country and regional profiles.83 More
recently, the Ministry of Overseas Indian Affairs has signed memorandums
of understanding (MOUs) with a number of think tanks and international
52 organizations both in India and abroad to support research in its areas of
focus.84
Other countries have taken a similar route, but on a much smaller

scale. The Emigrant Support Programme of Ireland’s Department of
Foreign Affairs, for instance, has asked the Worldwide Ireland Funds, an
international charitable network, to outline best practices in diaspora
engagement to identify viable strategies and models for Ireland.85
Likewise, the governments of El Salvador, the Republic of Moldova, and
Serbia have invited the Center for International Migration and Integration,
an organization founded by the American Jewish Joint Distribution
Committee, to conduct a course on diaspora-homeland partnerships. The
course drew upon practical models from the experiences of Israel as well

as other countries. The Salvadoran government sent its top diplomat in
charge of diaspora affairs to visit the Israeli Ministry of Foreign Affairs to
identify practices relevant to the Salvadoran diaspora.86
53

Chapter 3: Monitoring Progress and
Measuring Impact
Ongoing monitoring, evaluation, and frequent adjustments should

be the foundation of any program of diaspora engagement. Many of the
programs highlighted in this handbook appear to have put tremendous
resources at the front end while neglecting the feedback loop. Even if
a government effectively facilitates emigrants’ return or has built up an
active network of diaspora members it is crucial to monitor such programs’
implementation, measure their impact, and use these findings to further
improve diaspora programs and generate more buy-in, especially from
CHAPTER 3: MONITORING PROGRESS AND MEASURING IMPACT

skeptical actors within and outside the government.
Box 1: Monitoring and Evaluation: Important

Definitions
Monitoring - a continuous process that tracks what is happening within a program and uses
the data collected to inform program implementation.
Evaluations - periodic, objective assessments of a planned, ongoing, or completed project,

program, or policy.
Impact Evaluations - seek to answer cause-and-effect questions and the changes in outcome
that are directly attributable to a program or project.
1 Why Monitor and Evaluate?
A renewed focus on monitoring and evaluation (M&E) is important 55

for various reasons, three of which are worth highlighting.
A. Allowing for Program and Policy Adaptation
Setting a robust and meaningful M&E policy allows for frequent

adjustments to programs and policy adaptation. For example, the Tres
por Uno (3x1) program in Zacatecas, Mexico has changed and improved
through the years, from 1x1 in the 1980s to 3x1 more than a decade later.

The Zacatecas case is unusual in that the lessons earned through experience
have been continually incorporated into the program. As Natasha Iskander
points out, changes in the 3x1 program have affected “everything from
project selection criteria to budgeting procedures to auditing mechanisms,
as well as procedural and institutional arrangements. Both the state and
diaspora organizations have not only devoted increasing organizational
and human resources to managing projects and engaging in transnational
negotiations but also to actively exploring different political and economic
visions for Zacatecan communities on both sides of the border.”87
The same can be said of the International Organization for

Migration’s Migration for Development in Africa (MIDA) program. Periodic
reassessments are required for any program, and particularly for multiyear
or complex projects consisting of several distinct but interrelated units.
For example, some MIDA projects are simultaneously implemented in two
or more neighboring countries, both of which contribute to combined
program efforts. In multiphase projects, monitoring allows adjustments

to be made in light of the experiences gained and lessons learned during
previous phases.88 One such example is the MIDA Great Lakes project,
which was appropriately adjusted after an assessment of the first,
12-month phase. Similarly, an assessment of a MIDA women’s project in
Guinea “led to the important observation that the diaspora mobilization
strategy tailored to the needs of other African countries was not applicable
to the Guinean diaspora due to the particular level of development of the
country, among other factors.”89
As IOM has observed, “Timely monitoring, in particular, can reveal

unforeseen obstacles or unexpected opportunities which call for a
rethinking of the project’s underlying assumptions and strategies.”90
B. Avoiding Capture by Vested Interests
M&E is also critical to avoid capture by vested interests and to

56 shore up a program’s credibility. As Armando Rodriguez notes, in the
case of the 3x1 program not all players subscribed to the “working for
the common good” principle. Political or personal agendas were muted
by working with the binational “Eyes-and-Ears Watchdog” team.91 In the
case of the hometown association (HTA) projects in Zacatecas, the team
included organizations such as the Rockefeller Foundation, Oxfam Novib,
and Rostros y Voces Foundation.
In Croatia the government opted to outsource the evaluation of

the Unity through Knowledge Fund (UKF), a program providing grants to

research partnerships between diaspora members and local scientists. As
Alessia Pozzi, the program’s manager, highlights in an interview for this
handbook: “We are completely aware that Croatia is a small community
. . . so if we do the evaluation here in Croatia, there are certain issues
that might arise like conflict of interest which is negative. So to have a fair
evaluation, we need to send it to those who have no interest in selecting
or rejecting the project.”92 At about €150 per project, Rossi finds the
costs of hiring independent experts to evaluate the program and projects
reasonable. She explains: “We have 400 independent experts working on
our project and in total the operational cost of the salaries for those who
do the evaluation is only 9.8 percent. So it is not so much. It’s just around
10 percent of the total cost.”
C. Soliciting Buy-In from Other Stakeholders
Highlighting success helps maintain a project’s momentum and

attract more buy-in. Impact evaluations are especially important because
they provide statistics that can be used as evidence of a policy’s efficacy and
increase funders’ confidence. Even though evaluations may be expensive,
evidence of a project’s success is money well spent. Evaluations can also
make programs more efficient, and can save money when programs found
to be ineffective are shut down.93
2 The M&E Gap
Some governments do monitor their programs regularly. Colombia,

for instance, maintains oversight over all its diaspora programs through
a planning office. An external government agency, the National Planning
Bureau, also monitors diaspora projects and programs and all the
resources used.94
Very few, however, actually evaluate the impact of their programs. 57

The General Directorate for Spanish Citizens Abroad provides “justification
for all expenses and undergoes extensive auditing.” But it does not conduct
external evaluations of programs. As Jose Hernandez of the directorate
explains: “The main indicator for us that a program is working is the
amount of applications we receive and the amount of beneficiaries we
have. For example, our program to promote tourism for the elderly has
received 4,000 applications this year compared with 2,500 applications
two years ago.”95

Indeed, an IOM review of 130 websites of development agencies
and of the labor, foreign affairs, interior, and immigration ministries in
68 countries found that only 70 formal evaluations of migration policies,
projects, and programs were available (excluding situation reviews,
donor reports, ex ante reports, and all IOM evaluations). Almost a third
(28 percent) of the evaluated programs dealt with labor migration
management. Rigorous impact evaluations are extremely rare; the
exploratory review found only six evaluations with an experimental
design.96
The record of international organizations also shows tremendous

room for improvement. In the past five years, for instance, IOM
evaluated 67 projects, of which 14 percent were evaluations of diaspora
engagement projects. The first-ever evaluation published by IOM was of
the implementation of the Return of Qualified Nationals (RQN) program
in Kenya in 1986. With seven reports completed, the most monitored and
evaluated program was the Return of Qualified African Nationals program.
As Laura Chapell and Frank Laczko observe, “everyone agrees

that monitoring is important, but little is actually being done.” As Box 2
outlines, barriers include a “lack of an ‘evaluation culture’: a ‘fear factor’
fuelled primarily by concerns over cost, and the lack of priority among
donors.”97
Box 2: Possible Reasons for the Lack of an “Evaluation

Culture”
• Decisionmakers and project managers may be unwilling to confront the “bad news” that
a particular program or project is not having the desired outcome.
• Impact evaluations may be considered a costly investment, requiring substantial
financial resources and significant time commitments.
• A rigorous evaluation could take three or four years to conduct, whereas many
governments want information immediately.
• Impact evaluations, especially the more rigorous ones, require a level of technical
expertise that isn’t found in-house in every government.
58 • Investment in evaluation has not kept pace with the rapid growth of migration programs
and projects over the past decade.
• Political will is often lacking as migration is a very contentious and, often, politicized
issue.
• Migration data needed for evaluating outcomes is often flawed or missing.
• Migration interventions are not traditionally seen as tools to promote development and
hence not evaluated from that perspective.
Source: Frank Laczko, “Migration, Development and Evaluation: Where We Stand Today and Why” (PowerPoint presented
at Managing Migration for Development: Policymaking, Assessment and Evaluation, Marseille, France, June 13-15, 2011).

3 Closing the M&E Gap: Some Ways
Forward
A. Be Realistic and Select Methodologies and Data Appropriate
for the Context and Budget
Although tremendously useful, integrating M&E into program

management is not free. Governments must be realistic and should
identify suitable evaluation methods based on the local context and
financial constraints. As Chapell and Laczko note,“the aim of an impact
evaluation must always be to get the most accurate possible information
on the effectiveness of a policy. This means being both ambitious and
realistic in defining what the best possible information might be (and
how it might be uncovered) in each case. The issues to be assessed, the
finances available, the skills that can be accessed, the required timelines,
and the political context in which the evaluation is taking place will all help

decide which approach is most suitable.”98
Baseline Data. Ideally, an M&E system will be based on baseline

data collected at the start of the program or project. This requires more
financial resources and time but helps quantify impact and therefore
increases the quality and usefulness of the evaluation.
Counterfactual. Another approach to evaluation is to examine a

counterfactual — an analysis of the cost to the country of not having a
diaspora engagement program. An evaluation may look at the other ways
in which the diaspora might have returned to the country in order to
ascertain whether the program only subsidized return that would have
occurred anyway, even without government intervention. Box 3 highlights
one such approach, which looks at the effect of different savings schemes
for migrants in El Salvador. Considered the Rolls Royce in the evaluation
toolkit, a randomized control trial can provide tremendous insights into
program development, although at a cost.
59

Box 3: Understanding Savings Propensity among El
Salvadoran Migrants in Washington: A Randomized
Control Trial
In partnership with a Salvadoran bank, a group of researchers from Harvard Business School,
Francisco Marroquin University, University of Chile, and University of Michigan offered US-
based migrants from El Salvador bank accounts in their home country into which they could
send remittances. Their goal was to investigate whether increasing migrants’ control over the
use of remittances would also increase their propensity to save.
Migrants in the study were randomly assigned to four groups that provided varying levels of
monitoring and control over savings in El Salvador.
• Treatment 0: The control group, which received no offer of any new financial products.
• Treatment 1: Migrants were offered the opportunity to open an account in El Salvador in
the name of the remittance recipient.
• Treatment 2: Migrants were offered the opportunity to open an account to be held
jointly by the migrant and the recipient.
• Treatment 3: Migrants were offered, in addition to the joint account offered in Treatment 2,
the option to open an account in the migrant’s name only.
The third option (Treatment 3) offered the migrant the greatest degree of monitoring and
control over remittances sent to El Salvador. Data on financial transactions at the partner bank
came from the bank’s administrative records. Baseline and follow-up surveys administered to
both migrants in the United States and their remittance-receiving households in El Salvador
provided data on other outcomes.
The research concluded that migrants’ desire for monitoring and control over remittance
uses is “quantitatively large and has an important influence on financial decision-making by
migrants.” This is especially true over the extent to which remittances are saved in formal
savings accounts. Migrants assigned to the treatment condition (Treatment 3) that offered
the greatest degree of monitoring and control were much more likely to open savings
accounts, and accumulate more savings in El Salvador.
Source: Dean Yang, Nava Ashraf, Claudia Martínez, and Diego Aycinena Francisco, “Remittances and the Problem of Control:
A Field Experiment Among Migrants from El Salvador” (working paper, September 2011), http://www-personal.umich.
edu/~deanyang/papers/aamy_remittancecontrol.pdf.
Although an M&E system would ideally include gathering baseline

data or establishing a counterfactual, governments may choose to adopt
simpler and less expensive systems that do not require specialists or grand
calculations, but still provide critical measures of success that can inform
program implementation.
60
Combination of Quantitative and Qualitative Tools. Most
evaluations use a combination of tools to collect information and feedback
from a wide range of sources and actors associated with a given program.
Basic methods of evaluation include direct observation, interviews, focus
group discussions, questionnaires, and surveys. The experience of IOM
with MIDA strongly suggests that mixed methods that employ “both
qualitative and quantitative tools can be used to compensate for technical
gaps due to the high costs required for some methods.”99 As Box 4 shows, in

the case of MIDA Great Lakes, a number of methods were used, including
a desk review, field visits, a survey, and focus group discussions. A further
insight gained from the MIDA programs implemented to date is the
importance of tracking systems to ensure the effective measurement of
a project over time and an assessment of its longer-term sustainability.100
Box 4: MIDA Grand Lakes, Phase III

MIDA Grand Lakes Phase III (Africa Great Lakes Region) used the following desired outcomes/
impacts and indicators:
Description of desired Description of indicators

outcomes/impacts
Economic, social, and cultural • Number of thematic groups created by the
stability and human development diaspora
favored through intervention of • Number of support projects comprising
diaspora several experts

Diaspora members contribute to • Number of assistants trained
education sector • Shortening of university cycle
• Improvement of pedagogical equipment
and other resources
Diaspora members contribute to • Number of new techniques used in
health sector the absence of an expert thanks to the
provision of equipment
• Improved effectiveness of services (number
of patients treated, number of difficult
cases tended to)
Diaspora members contribute to • Implementation of strategic plans and
rural development reforms
• Implementation of propsed work
An initial desk review analyzed the information from experts in the field. At the same time,
interviews with experts in Brussels who went on missions under MIDA III were conducted.
Field missions followed up with the three partner countries in order to meet with national
authorities, beneficiary institutions, direct beneficiaries, experts, and other stakeholders. A
survey of the physical transfers of remittances was conducted. To finalize the visits, focus
groups were conducted with expert members of the Congolese, Rwandan, and Burundian
diasporas.
Source: Ann Pawliczko, “Inventory of Impact Assessment of International Migration: Projects/Programmes Carried Out by
GMG Agencies, United Nations Population Fund” (paper presented at Managing Migration for Development: Policymaking,
Assessment and Evaluation, Marseille, France, June 13-15, 2011). 61

B. Explore Ways of Sharing the Costs of Evaluation with Other
Stakeholders
The initial costs of conducting an impact study may be considered

too expensive for some countries and smaller programs. For Chapell and
Laczko, however, there are ways to reduce costs primarily by cost sharing.
They write:

Governments can together identify a few key policies and
programs of mutual interest for a “thematic evaluation.” Within
a couple of years there would be a body of evidence available
on how key policies and programs might best be designed. Such
evidence would be an invaluable resource for policymakers
globally. This approach would also encourage countries of
origin, transit, and destination to work together to conduct joint
evaluations to ensure that mobility enhances migration and
development outcomes.101
Chapell and Laczko cite a recent report by the Center for Global
Development asserting governments’ inability to conduct evaluations
in all areas of policy on their own. An efficient and cost-effective way to
address this constraint is for governments to collectively recognize the
most important policy questions and to initiate studies around those
questions.102
C. Donors Can Play an Active Role in Building a “Culture of

Evaluation”
Donors have an important role to play in pushing for the evaluation

of programs and projects. For example, the Inter-American Development
Bank (IDB) commissioned an external evaluation of remittance-related
projects in 2009. At that time, 45 projects had been approved, totaling
more than $45 million in technical assistance and approximately $22
million in loans and equity investments. The review, which took place
between May and September 2009, focused primarily on the portfolio of
remittance projects undertaken by the Multilateral Investment Fund (MIF)
from 2001 to 2009, and second, on MIF’s research and dissemination
activities during that same period.103 The outcome is a 256-page document
that includes an assessment of the models used and a summary of each
individual project’s successes, challenges, and lessons learned. The review
also offers recommendations, both from a design and an operational
62 perspective, on how the MIF and other practitioners can improve the
impact, reach, and sustainability of remittance programs.104
Among donor countries, the Netherlands is planning to do an

assessment of the diaspora programs it has funded over six years in
order to understand their impact on a number of policy areas of key
importance to the government. As Sander Werrie explained in an
interview for this handbook, the Netherlands is “interested in knowing
whether the activities MFA [the Ministry of Foreign Affairs] is financing
do actually contribute to the real-life policy priorities formulated in our

policy memorandum. The assessment is not so much about the six policy
priorities itself and whether the priorities are well chosen but more about
the activities we are financing and whether they contribute to realizing
the policy priorities.” The Netherlands will select one or two independent
organizations or institutions to perform the assessment.105
Werrie hopes that the results of the overall assessment will

contribute to the Ministry of Foreign Affairs’ position on whether or not
it should continue financing temporary return programs, among others.
Werrie explains, “If the assessment shows that the programs do not have
a meaningful impact on the longer term then we might have to decide
that we will not finance temporary return programs anymore. The same
goes for the other activities we are financing.”106
D. Metrics Are Important: Who Are the Question-Makers?

In assessing the progress and benefits of engaging diasporas in
development activities, it is also important to set realistic expectations and
time frames. Metrics are important, but they should not simply borrow
from conventional official development assistance (ODA) frameworks.107
For instance, the biggest challenge facing many programs is how to

maximize their impact on development. Programs work best if they have
direct relevance to the origin country’s national development plan. With
this standard in mind, even the much-lauded 3x1 program falls short in
the eyes of many observers, including the Mexican government itself.
Critics say that the program diverts government development

resources to communities that are not the neediest, since they are already
receiving remittances and charitable contributions from migrant HTAs.
Migrants contributing to the program and their communities back home,
which are the main beneficiaries, may have a different assessment of
the program’s success, as Box 5 highlights. The 3x1 program may be best
understood as a solidarity program rather than a development program
and should be assessed under those terms. 63

Box 5: Mexico’s 3x1 Program: A Best Practice by
Whose Measures?
An assessment conducted by Mexico’s National Council for the Evaluation of Social
Development Policy called into question the impact of the 3x1 program on development. It
found that the program has “performed poorly in terms of design and impact, and its funds
have not increased in real terms in the last 3 years.” More specifically, the assessment noted
that the “program mainly promotes investment in non productive projects, such as sport
courts, churches, plazas and similar infrastructure.”108
Allowing migrant organizations to select the projects seemed to have complicated efforts to
maximize the funds’ antipoverty impacts. As the federal representative for the matching fund
program in Morelia notes in an interview with Xochitl Bada:
“One of the problems that we face in channeling resources to these [poorest] municipalities
is that, for instance, these communities don’t have potable water but migrants say that they
want to fix the village square or they want to fix the church. They have problems of sewage
but the migrants want to build a rodeo ring. We try to encourage them to fund projects that
focus on immediate and basic needs but we can’t obligate them. . . . We let the [state-level]
validation committee choose the projects with the highest merits to support with public
funds.”
Newland and her colleagues argue, however, that the 3x1 program is perhaps best understood
as a solidarity program rather than a development program. The choice of projects follows the
logic of collaboration and interconnection between diaspora and “hometown” communities
rather than an economic logic and therefore should be assessed under those terms. As
Chapters 1 and 2 note, the process of building capacity among diasporas — and building
trust between diaspora groups and governments — is a long-term proposition that requires
flexibility in its implementation and an evaluation system that accounts for intangible
outcomes, such as increased solidarity and trust between the diaspora and the state.
Source: Xochitl Bada interview with a Social Development Ministry official in Morelia, May 2005, quoted in Jonathan Fox and
Xochitl Bada, “Migrant Organization and Hometown Impacts in Rural Mexico” (UC Santa Cruz: Center for Global, International
and Regional Studies, 2008). Retrieved from: http://escholarship.org/uc/item/7jc3t42v.
E. Share Existing Evaluations with Others to Create a Learning

Community
Ultimately, governments should also invest in documenting a

project’s interventions, changes, and impacts and making them available
to the public, preferably in an easily accessible format geared in particular
to diaspora communities and other potential partners. Information on
64 existing evaluations tends to be scattered, with many evaluation studies
available only in local languages or not published. Better sharing of existing
evaluations could enhance the knowledge base. This can be done by
creating a useful website so that stakeholders can see the results, discuss
a given diaspora program’s challenges, and explore and offer potential
solutions.109
For instance, the Unity through Knowledge Fund website (www.ukf.

hr/) provides descriptions of all projects and a complete breakdown of
the funding and results of the evaluations. The Croatian government puts

in €5,000 per year to maintain the website, which is also used for project
application. As Alessia Pozzi explains, “If you work with the diaspora you
cannot expect them to send you the papers, etc. So basically the whole
project application and the evaluation process are done through the
website. It is also important for the statistics part to be shown for them
[potential funders] to see that you have transparency in a way that they
know where we invest the money, etc.”110
65

PART
2 BUILDING
INSTITUTIONS
AND REDUCING
BARRIERS
G
overnments in both origin and destination countries have
introduced a dizzying array of initiatives to engage diasporas in
development. Some are innovative, and many show promise.
Some have been around for decades, while many have been introduced
only recently.
Ideas on the best ways to involve diasporas meaningfully and

effectively have also diversified through time. From “return-of-talent”
programs to remittance-backed financial products to diaspora bonds, the
international community offers many ways of engaging diaspora members
as critical partners in development.
But workable options, although many, are not without limit. A

variety of factors constrain policymakers’ and practitioners’ actual choices.
Development goals, institutional capacities, and diaspora needs, wants,
and potential can narrow the list of truly viable options.
This part of the handbook discusses the two main mechanisms

governments have used to connect with diasporas. Some have created a
legislative or regulatory framework conducive to diaspora engagement.
More recently, an increasing number of countries have started building
diaspora-centered institutions at home and abroad to facilitate their
PART 2: BUILDING INSTITUTIONS AND REDUCING BARRIERS

engagement.
The next two chapters discuss each mechanism, highlighting

key policy and programmatic trends as well as the main challenges
practitioners face on the ground and the lessons their experiences offer.
Initiatives described in this section illustrate not only viable approaches
worthy of replication but also common pitfalls. These experiences present
critical lessons for policymakers and practitioners as they think more
strategically about diasporas and the roles they can play.
69

Chapter 4: Building Diaspora Institutions:
Carving a Niche in the Inner Workings of
Government
An increasing number of countries have established institutions

to facilitate ties with their diasporas more systematically. The number of
countries with diaspora institutions has increased, especially in the past
ten years, and spans multiple continents. From Armenia to Haiti, this
chapter reviews the objectives and activities of 77 diaspora-engaging
institutions in 56 countries.111
Although far from exhaustive, the analysis shows the various ways
governments choose to institutionalize their relations with diasporas. The
institutions they have created occupy different levels of government and
exhibit diverse priorities and degrees of organization. For instance, some
are concerned only with their citizens abroad while others specifically
target permanent residents, naturalized citizens, and second and later
generations. Countries such as Mexico, China, and the Philippines
have multiple institutions and represent diasporas at various levels of
CARVING A NICHE IN THE INNER WORKINGS OF GOVERNMENT

government.
The real reach and effectiveness of these diaspora-centered

institutions are hard to pinpoint, as is their impact on development efforts CHAPTER 4: BUILDING DIASPORA INSTITUTIONS:
at home. Evaluations rarely exist; those that do are typically not available
for public consumption. The limited discussions in both academic and
policy literature usually employ a descriptive, nonevaluative tone. Nearly
a third of the institutions reviewed here are also fairly new, having been
established since 2005.
Even at this nascent stage, however, we can extract some insights

that may be useful for origin governments as they think about, design,
and/or manage diaspora institutions. No matter what kind of diaspora
populations they have — highly educated or not, concentrated in a few
countries or spread all over the world — experiences of countries in this
review point to the importance of preparation and planning, of valuing
the process as much as the outcome, of investing in capacity building, and
of linking institutions to national development priorities. 71
1 Types of Diaspora Institutions
National bodies established to address diaspora issues are found in

both destination countries as well as countries of origin. A survey of states
participating in the Global Forum on Migration and Development (GFMD),
conducted for this handbook, identifies more than 400 institutions in 56
countries that are directly engaging diasporas through various programs
and policies. Of these institutions, 77 were created specifically to engage
diasporas on a formal basis.
These diaspora institutions are of roughly six types, depending

on whether they function at a ministry, subministry, national, or local
level; are part of a consular network; or are a quasi-governmental
institution. Understanding the differences between these types is useful:
an institution’s position within the government hierarchy in many ways
affects its influence within and outside the government, as well as its
mandate and effectiveness.
A. Ministry-Level Institutions
Since 2001 an increasing number of developing countries have

established ministries whose explicit purpose is to address the needs
of diaspora populations. Twenty-six of the countries examined have a
separate diaspora ministry (see Table 1). Twelve of these ministries are
dedicated solely to diasporas.
CHAPTER 4: BUILDING DIASPORA INSTITUTIONS:
72
Table 1: Countries with Ministry-Level Diaspora
Institutions
Stock of
Stock of Top
emigrants
Country Institution emigrants, destination,
as % of total
2010 2010
population 2010
Russian
Armenia* Ministry of Diaspora 870,200 28.2
Federation
Ministry of National Solidarity,
Algeria Family and the National 1,211,100 3.4 France
Community Abroad
State Committee on Affairs of Russian
Azerbaijan* 1,432,600 16
the Diaspora Federation
Ministry of Expatriates’ Welfare
Bangladesh* 5,380,200 3.3 India
and Overseas Employment
Ministry for Foreign Affairs,
African Integration, the
Benin 513,600 5.8 Nigeria
Francophone Community, and
Beninese Abroad
Ministry of External Relations
Comoros 38,600 5.6 France
and Cooperation of the Diaspora
Ministry of Trade, Industry,
Dominica 69,300 104.1%** United States
Consumer, Diaspora Affairs
State Ministry for Diaspora Russian
Georgia* 1,057,700 25.1
Issues Federation
Ministry of Haitians Living
Haiti* 1,009,400 9.9 United States
Abroad
Ministry of Overseas Indian United Arab
India* 11,357,500 0.9

Affairs Emirates
Ministry of Manpower and
Indonesia 2,502,300 1.1 Malaysia
Transmigration
Islamic
Ministry of Migration and
Iraq 1,545,800 4.9 Republic of
Displaced
Iran
Ministry of Information and West Bank
Israel 1,019,900 14
Diaspora and Gaza
Ministry of Foreign Affairs and
Lebanon 664,100 15.6 United States
Emigrants
Former
Yugoslav
Agency for Emigration 447,100 21.9 Italy
Republic of
Macedonia*
Ministry of Malians Abroad and
Mali 1,012,700 7.6 Côte d’Ivoire
African Integration
Ministry Charged with the
Morocco* Moroccan Community Residing 3,106,600 9.3 France
Abroad
Ministry of African Integration
73
Niger 386,900 2.4 Nigeria
and Nigerians Abroad

Pakistan* Ministry of Overseas Pakistanis 4,677,000 2.5 India
Senegal* Ministry of Senegalese Abroad 632,200 4.9 Gambia
Serbia Ministry of Religion and Diaspora 196,000 2 Austria
Government’s Office for
Slovenia* 132,000 6.5 Germany
Slovenians Abroad
Ministry for Diaspora and
Somalia 812,700 8.7 Ethiopia
Community Affairs
Ministry of Foreign Employment
Sri Lanka* 1,847,500 9.1 Saudi Arabia
Promotion and Welfare
Syrian Arab Ministry of Foreign Affairs and
944,600 4.2 Jordan
Republic Expatriates
Ministry of Social Affairs,
Tunisia 651,600 6.3 France
Solidarity, and Tunisians Abroad
*Ministry dedicated to diaspora. ** According to the World Bank, the stock of emigrants as percentage of population is
defined as the ratio of emigrants of a country to the population—not the sum of population and migrants. Because of this
definition, this ratio may exceed 100 percent in certain cases.
Sources: MPI-IOM Questionnaire, Part I, 2011 for Armenia, Azerbaijan, Benin, Comoros, India, Iraq, Israel, the former
Yugoslav Republic of Macedonia, and Slovenia; with author research for the remaining countries; for data on emigrants and
their destinations, see World Bank, Migration and Remittances Factbook 2011 (Washington, DC: World Bank, 2011).
By establishing a separate, ministry-level diaspora institution,

a government recognizes that traditional ministries such as labor
and foreign affairs cannot manage the expatriate portfolio in all its
dimensions. This review suggests that unlike other diaspora institutions
occupying lower positions in the hierarchy, diaspora ministries generally
enjoy more consistent budgetary allocation, more support from the top
of government, and, interestingly, a more explicit development-oriented
mandate. Their existence also signifies that the government accords

diaspora engagement the highest political importance (which may mark
a shift in policy priority, as some of these ministries started out as smaller
offices within other ministries).
An early example of a diaspora ministry established in the developing

world is the Ministry of Haitians Living Abroad.112 Created in 1995, the
ministry aims to encourage the participation of diaspora communities
in technical and professional activities that advance Haiti’s development
efforts. The ministry informs the diaspora of local realities and changes in
Haiti and encourages its members to return to and invest in the country.
A more recent example is India’s Ministry for Overseas Indian

Affairs (MOIA). Established in 2004 to address the lack of government
policy coordination on migration, the ministry has programs that reach
out to the Indian diaspora, in particular to youth. One program, Know
India, is a three-week internship to promote social, economic, and cultural
74 awareness of India among the second and subsequent generations of

emigrants. Another initiative, the Scholarship Program for Diaspora
Children, is designed to assist emigrants in enrolling their children in
Indian institutions of higher education. Other activities range from hosting
an annual diaspora conference to facilitating diaspora investments.113
Similar institutions can be found in Serbia (Ministry of Religion

and Diaspora)114 and Armenia (Ministry of Diaspora).115 Like India,
these countries have large, generally highly educated, and/or well-
financed diaspora populations abroad (either in absolute terms or as a
percentage of the population). As might be expected, the ministries
focus on developing stronger economic links with the diaspora, mainly by
encouraging the transfer of financial and/or human capital. For instance,
the Serbian minister highlighted the return of young experts and the
prevention of further brain drain as the ministry’s most pressing task.116 To
this end, the ministry created an economic council that included experts
from both the homeland and the diaspora. It also has plans to establish
a virtual business network that would publish information on relevant
organizations, individuals, and investment opportunities.117
Bangladesh’s Ministry for Expatriates’ Welfare and Overseas

Employment and Sri Lanka’s Ministry of Foreign Employment, Promotion,
and Welfare are unusual because, unlike many of their counterparts,
they focus mainly on ensuring the welfare of their expatriate workers
and on increasing their ability to find suitable employment abroad.
Both ministries attend to complaints from migrant workers, provide

international job placement services, and conduct training programs.118
The Bangladeshi ministry also operates a Wage Earners’ Welfare Fund
financed by membership fees from migrant workers, interest earned from
the deposits of recruiting agencies’ licenses, and personal and institutional
contributions. The fund covers the cost of providing financial, legal, and
other assistance mainly to distressed migrant workers.119
Hybrid Ministries
Some countries opt for more innovative institutional structures at

the ministry level. Instead of creating a separate diaspora ministry, they
combine diaspora affairs with other areas of focus, such as labor, tourism,
or foreign affairs, to form a hybrid ministry. For instance, in 2000, both
Mali (Ministry of Malians Abroad and African Integration) and Lebanon
(Ministry of Foreign Affairs and Emigrants) created hybrid ministries.120
75
Mali’s ministry aims to protect temporary and permanent emigrants
while they are abroad and to facilitate their return and reintegration into
Malian society. It encourages the transfer of critical skills by participating
in the United Nations’ Transfer of Knowledge through Expatriate Nationals
(TOKTEN) program, which facilitates the temporary return of expatriates
wishing to work in the areas of health, education, agriculture, and the
private sector.121
In 2009 Benin created the Ministry for Foreign Affairs, African

Integration, the Francophone Community, and Beninese Abroad to
manage its relations with the diaspora. The ministry’s objectives, among
others, are to provide humanitarian assistance to Beninese abroad
in the case of mass deportations or expulsions, to inform the diaspora
about government policies, and to propose measures that facilitate the
diaspora’s contribution to Benin’s development.122
Similar hybrid setups can also be found in Tunisia (Ministry of Social

Affairs and Solidarity and Tunisians Abroad), Somalia (Ministry for Diaspora
and Community Affairs), and Dominica (Ministry of Trade, Industry,
Consumer, and Diaspora Affairs). Typically, these hybrid ministries contain
agencies dedicated solely to diasporas, such as Benin’s Directorate for
Relations with Beninese Abroad, Tunisia’s Office for Tunisians Abroad, and
Lebanon’s Department for Diaspora Affairs.
Creating a hybrid ministry can be a cost-effective approach because

it elevates the government’s diaspora portfolio while avoiding the

larger administrative and legislative expense normally associated with
establishing a new and separate institution. Moreover, a hybrid ministry is
positioned to make policies that coherently address the interests of both

the government and the diaspora across the areas of focus (for example,
trade and consumer affairs) over which the hybrid ministry presides.
Ideally, the approach can minimize turf wars that may arise when two or
three ministries deal with the diaspora population in different ways.
B. Institutions at the Subministry Level
Other countries have institutionalized diaspora engagement at the

subministry level by creating special offices, typically under the ministry of
labor and/or foreign affairs. Twenty-one such institutions were identified
in 17 countries.
The Philippines was one of the first countries to create such

76 institutions. Faced with increasing problems brought about by a rapidly

expanding temporary worker population abroad, the government
established the Overseas Workers Welfare Administration (OWWA) in
1981 as an agency under the Department of Labor and Employment.
Tasked with protecting Filipino migrant workers, OWWA provides them
with various services, from repatriation to business loans.123 Another
office, the Philippine Overseas Employment Administration (POEA), was
created a year later. POEA has the sole authority to regulate temporary
overseas employment, including recruitment agencies.124 Another body,
the Office of the Undersecretary for Migrant Workers’ Affairs, was created
in 1995, this time under the Department of Foreign Affairs. Like OWWA,
the office focuses on migrant protection, mainly through providing legal
advice and judicial support to distressed workers.125 It was created as a
response to increasing reports of maltreatment, illegal recruitment, and
even deaths of temporary workers.
As with ministry-level institutions, a number of countries have set

up diaspora offices since 2001. A review of the missions and activities of
17 countries with diaspora offices at the subministry level (see Table 2)
suggests that, like the Philippines, a number focus on protection.
Table 2: Countries with Subministry-Level Diaspora

Institutions
Stock of
Stock of Top
emigrants
Country Institution(s) emigrants, destination,

as % of total
2010 2010
population, 2010
Ministry of Foreign Affairs,
Albania 1,438,300 45.4 Greece
Diaspora Department

United
Brazil Undersecretary General for 1,367,100 0.7
States
Brazilian Communities Abroad
Bosnia and Ministry of Human Rights and
1,461,000 38.9 Croatia
Herzegovina Refugees, Department of Diaspora
United
Burundi 356,000 4.2 Republic of
Directorate of Diaspora
Tanzania
General Office for Consular and
Immigration Services; Office for
Chile Chileans Abroad. 633,600 3.7 Argentina
Ministry of the Interior and
Public Security, Department of
Immigration and Migration
Ministry of Manpower and
Egypt 3,739,100 4.4 Saudi Arabia
Emigration, Emigration Sector
El Salvador
Ministry of Foreign Affairs, Vice
Ministry for Salvadorans Abroad
1,269,100 20.5
United
States
77
Diaspora Affairs Directorate
Ethiopia General; 620,100 0.7 Sudan
Ministry of Capacity Building,
Diaspora Coordinating Office
Eritrea 941,200 18 Sudan
Department of Eritreans Abroad
German Technical Cooperation,
United
Germany Sector Project on Migration and 3,540,600 4.3
States
Development
Ministry of Interior, National
Ghana 824,900 3.4 Nigeria
Migration Unit
Secretariat of Foreign Affairs, Sub
United
Mexico secretariat for North America; 11, 859,200 10.7
States
Institute for Mexicans Abroad
Netherlands International Migration and 993,400 6 Germany
Development Division
United
Peru Undersecretary for Peruvians 1,090,800 3.7
States
Abroad
Department of Labor, Overseas
Workers Welfare Administration;
Department of Labor, Philippine
Overseas Employment United
Philippines 4,275,200 4.6
Administration; States
Department of Foreign Affairs,
Office of the Undersecretary for
Migrant Workers’ Affairs
Romania Department for Relations with the 2,769,400 13.1 Italy

Romanians Abroad
Uruguay Directorate General for Consular 353,400 10.5 Argentina
Affairs and Expatriate Ties
Sources: IOM-MPI Questionnaire, Part I, 2011, except for Brazil, Egypt, and Peru; author research for those countries; for data
on emigrants and their destinations, see World Bank, Migration and Remittances Factbook 2011 (Washington, DC: World
Bank, 2011).
Although migrant protection remains an important facet of

their work, other offices at the subministry level have diversified
their portfolios by adopting initiatives that facilitate their diasporas’
integration into host-country societies and participation in development
activities at home. A good example is Mexico’s Institute for Mexicans
Abroad (IME), a decentralized body of the Ministry of Foreign Affairs
that aims to elevate the standard of living of Mexican communities by
promoting their integration in the destination country. Created in 2003,
IME formalized a long-standing Mexican government policy to gain the
trust and support of an increasingly influential expatriate population
78 who live mainly in Mexico’s most important neighbor, the United States.

IME provides an array of services centered on health, education,
and financial services. In addition, along with the Ministry of Foreign
Affairs, IME has created the Practical Guide for the Mexican Traveler (Guía
Práctica para el Viajero Mexicano), which touches on issues of migration
as well as casual travel.126 IME’s website also provides information about
remittances to Mexico, an overview of the government’s Tres por Uno
(3x1) investment matching program (in which municipal, state, and
national governments together give $3 for every $1 a migrant invests in a
public-improvement project at home), and consular support, among other
issues.127 In the long term, the Mexican government hopes to “create a
strong relationship with the communities” to pursue joint objectives in
both Mexico and the United States.128
Chile’s Office for Chileans Abroad, on the other hand, has a more
explicit development mandate. Established in 2001 as part of the Ministry
of Foreign Affairs’ General Office for Consular and Immigration Services,
its main purpose is not only to attend to the “demands and needs of
communities of Chilean residents abroad” but also to “encourage their
participation in national development.”129 Ethiopia has a similar agency.
Established in 2002 under the Ministry of Foreign Affairs, one of the four
main objectives of the Ethiopian Expatriate Affairs’ office is encouraging
“the active involvement of the Ethiopians in Diaspora in socioeconomic
activities of the country.”130
The activities and general orientation of subministry diaspora

institutions seem to follow the mandate and priorities of their mother
agency, which may or may not include a focus on development at home.
Interestingly, this review found no diaspora institution directly under a
government body or ministry that is mainly responsible for development
planning. CHAPTER 4: BUILDING DIASPORA INSTITUTIONS:
C. Other Government Institutions at the National Level
Some diaspora institutions fall short of full ministry standing but

still report directly to the highest executive body. These institutions enjoy
a fairly influential position within the government. Seventeen countries in
this review had such institutions (see Table 3). For instance, the Philippines’
Commission on Filipinos Overseas (CFO) is directly under the Office of the
President. Established in 1980 as part of an overall government strategy
that included OWWA and POEA, the commission has a dual role of
promoting both economic and cultural ties between the Philippines and
its diaspora. Unlike OWWA and POEA, however, CFO focuses mainly on
Filipinos who have either established permanent residence or acquired
citizenship in the destination country.
79
Table 3: Countries with Other Types of Diaspora
Institutions at the National Level
Stock of
Stock of Top
emigrants
Country Institutions emigrants, destination,
as % of total
2010 2010
population, 2010
State Agency for Bulgarians
Bulgaria 1,200,600 16 Turkey
Abroad
Interministerial Committee for
Chile 633,600 3.7 Argentina
Chilean Communities Abroad
State Council, Overseas Chinese
Affairs Office of the State
China 8,343,600 0.60 United States
Council; Overseas Chinese Affairs
Committee
Egypt Higher Committee on Migration 3,739,100 4.4 Saudi Arabia
National Council for Migrants
Guatemala 871,900 6.1 United States
from Guatemala
The Secretariat of Hungarians
Hungary 462,700 4.6 Germany
Living Abroad
Consultation Framework on
Migration
National Council on Mexican
Mexico 11, 859,200 10.7 United States
Communities Abroad
Morocco Interdepartmental Committees 3,106,600 9.3 France
Niger Committee in Charge of Migration 386,900 2.4 Nigeria
Technical Working Group and
Nigeria Interministerial Committee on 1,000,000 0.6 United Stated
Migration
Office of the President,
Commission on Filipinos Overseas;

Philippines 4,275,200 4.6 United States
Committee on Overseas Workers
Affairs
Interministerial Team on
Poland 3,102,600 8.2 Germany
Migration Questions
Council of Ministers, High
Portugal Commission for Immigration and 2,230,000 20.8 France
Intercultural Dialogue
Sierra Office of the President, Office of
267,000 4.6 Guinea
Leone the Diaspora
Government Office of the Slovak
Czech
Slovakia Republic, Office for the Slovaks 520,100 9.6
Republic
Living Abroad
Switzerland Federal Office for Migration 407,800 5.4 Spain
Sources: MPI-IOM Questionnaire, Part I, 2011, for all countries except China, Egypt, Mali, Morocco, Niger, and Sierra Leone;
author research for those countries; for data on emigrants and their destinations, see World Bank, Migration and Remittances
Factbook 2011 (Washington, DC: World Bank, 2011).
Similarly, Sierra Leone’s Office of the Diaspora is directly under the

Office of the President. It encourages the return of professionals and other
80 experts from the diaspora in order to fill critical human resources gaps

within the country’s government. Specifically, the office provides a list
of jobs in government departments, a list of educational institutions and
professional associations in Sierra Leone, contact details of government
officials, and information on dual citizenship and other acts.131
China’s Overseas Chinese Affairs Office (SCOCAO) is uniquely

positioned within the Chinese central government. SCOCAO is an
administrative office under the State Council, the country’s highest
executive body (which includes the premier and ministers, among others).
A SCOCAO staff of 120 supports the premier and assists in a wide range of
activities. These include establishing databases of information categorized
by city, county, and province (so that overseas Chinese can find their
ancestral roots, homes, and properties), and operating two universities
catering mainly to the Chinese diaspora.132
Other governments have created intergovernmental and

parliamentary committees to coordinate actions on both the executive
and legislative fronts. Created in 2002, the National Council on Mexican
Communities Abroad includes the secretaries of various ministries,
including the interior; foreign affairs; finance and public credit; agriculture,
livestock, and rural development, fisheries and nutrition; public education;
environment and natural resources; health; tourism; and labor and social
welfare.133
In Chile, the Interministerial Committee for Chilean Communities

Abroad formulates public policies on the diaspora and is composed of 12
public institutions that in some way or other are responsible for addressing
the needs and demands of the nearly 1 million Chileans residing abroad.
Committee members include the Directorate for Civil Registration and
Identity, which issues ID cards and passports and registers marriages and CHAPTER 4: BUILDING DIASPORA INSTITUTIONS:
births; the National Health Fund, which provides publicly funded national
health care coverage; the Ministry of the Interior via its Committee for
Human Rights, which is responsible for exiles who were political prisoners
or were tortured during the 1973-89 dictatorship; and the National
Women’s Service, which protects women abroad and helps them to
realize their gender rights as outlined by international agreements.134
Some governments have also established special committees within

their legislative branches. For instance, Poland formed the Polish Diaspora
Commission in the lower house of its parliament to engage on policy
matters pertaining to the diaspora.135 China (Overseas Chinese Affairs
Committee) and the Philippines (Committee on Overseas Workers Affairs)
have similar committees within their legislative bodies. Experience from
these three countries suggests that such committees ease the passage of 81
critical legislation that supports diaspora interests and, in turn, enhances
their contribution to development.
D. Institutions at the Local Level
Diaspora engagement does not stop at the national or federal level.

Studies have shown that diasporas are often inclined to engage at the
local level, usually in their place of origin, where they are familiar with the
context and, in many cases, still have family ties.136 Thus, it is not surprising
that special offices for diasporas have sprung up locally. Five countries in
this review have created institutions at the local level (see Table 4).
Table 4: Countries with Diaspora Institutions at the

Local Level
Stock of Stock of emigrants Top
Country Institutions emigrants, as % of total destination,
2010 population, 2010 2010
National Secretariat for Migrants United
El Salvador 1,269,100 20.5
(various states) States
Government of Kerala,
Department of Non-Resident
United Arab
India Keralites’ Affairs; Government 11,357,500 0.9
Emirates
of Gujarat, Non-Resident Indian
Division
The Overseas Chinese Affairs
United
China Office (SOCAO) of Shanghai 8,343,600 0.60

States
Municipal People’s Government
Office for Development and
Somalia Partnership with the Puntland 812,700 8.7 Ethiopia
Diaspora Community.
National Coordination for State-

United
Mexico level Migrant Affairs Offices 11, 859,200 10.7
States
(various states)
Sources: El Salvador data from IOM-MPI Questionnaire, Part I, 2011; author research for remaining countries; for data on
emigrants and their destinations, World Bank, Migration and Remittances Factbook 2011 (Washington, DC: World Bank,
2011).
China has one of the most expansive networks of local diaspora

offices. SCOCAO, described earlier, is replicated in 30 provinces as well as
in some cities and townships across China. Although local diaspora offices
get their overall policy direction from the central government office, they
function with relative independence and are allowed to adopt innovative
methods to attract diaspora investments. For example, since 2004, the
Economic and Technology Division of the Shanghai government’s Overseas
82 Chinese Office has strengthened alumni associations in the United States

for all of its universities. The goal is to let Chinese graduates living in

the United States know about business and research opportunities in
Shanghai.137 To coordinate its implementation of national diaspora policies,
the central government annually convenes local diaspora offices.138
Some states in India have diaspora offices, the most active of which
can be found in Kerala and Gujarat. The Kerala government created the
Department of Non-Resident Keralites’ Affairs (NORKA) in 1996, primarily
to protect its migrant workers from abuse and exploitation. NORKA
addresses complaints against illegal recruitment agencies, provides
assistance to stranded Keralites, and facilitates the repatriation of bodies.
It also runs an insurance program for unemployed returnees, unskilled
laborers, and domestic workers.139
In Gujarat, the local government created a Non-Resident Indian

(NRI) Division within its administration department. A review of its
objectives suggests a stronger focus on development. Using a database
that identifies migrants’ technical and professional skills, the NRI Division
seeks to strengthen ties with Gujaratis abroad. For a $5 fee, the office also
issues a “Gujarat card” to Gujaratis living in other Indian states and outside
India. Cardholders receive special treatment at Gujarat government offices
and substantial discounts at local hotels and shops.140
Similarly, in Mexico, 29 of the 32 states and the Federal District

have established state-level offices or ministries that address migrant or
expatriate affairs and have a national coordinating secretariat.141 The local

offices aim to strengthen cooperation on migrant protection both within
Mexico and abroad. For instance, the coordinating secretariat has issued
pronouncements to review proposals of Mexico’s bilateral agreements
that affect migrant welfare and to create an office in the United States
that will strengthen Mexican-American grassroots organizations.
Local-level diaspora institutions are perfectly positioned to design

programs in tune with home-country community needs and opportunities.
With proper coordination, they can complement the activities of higher-
level institutions and even share the cost of engagement. Diaspora
members can also more easily monitor their contributions and investments
at the local level and more effectively hold their officials accountable, thus
increasing the likelihood of successful programs.
E. Consular Networks
For some governments, full diaspora engagement requires creating

and developing institutions that function not only at home but also abroad. 83
This approach requires capitalizing on existing structures in consulates,
which remain the most important interlocutors for diaspora populations.
A 2005 survey of IOM member governments revealed that 76

percent of them had consular services interacting with citizens abroad.142
A review of the embassy and consulate websites of countries in this study
suggests that many nations have an active consular presence in the top
destinations of their respective diasporas. More than ever, governments
are instructing their consulates to interact with emigrants systematically,
to provide help in destination countries, and to ensure that migrants
maintain their links to the homeland.
1. Providing Help in Destination Countries
The 1964 Vienna Convention on Consular Affairs outlines the

specific functions of consulates, foremost of which is to protect the
interest of the state and its nationals abroad. One of the primary roles
of consulates is to assist distressed nationals and protect their rights in
receiving states. For example, the network of 50 Mexican consulates in
the United States focuses on assisting and advising Mexicans on US laws
and their legal rights in the United States. A particular concern includes
Mexicans facing capital punishment. Consulates offer legal assistance to
nationals in detention, provide safe repatriation, locate missing persons,
assist hospitalized persons, and protect minors.
Recently, consulates have been providing services to the diaspora

that may not have been contemplated in the drafting of the 1964 Vienna
Convention. These new and expanded consular services and programs

include those that help migrants better integrate or live in destination
countries, whether through education and skills training, health assistance,
the provision of ID cards, community-building events, or counseling for
families experiencing domestic problems.
Of consulates that provide their nationals with education and skill

training, Mexico’s promote adult and children’s education programs,
many of which focus on English language skills. Other programs focus,
for example, on leadership training, financial literacy, and money
management skills. Mexican consulates also distribute Spanish-language
books to various libraries in the United States where there are large
concentrations of Mexican immigrants. Meanwhile, the Ecuadorean
consulate in Milan provides leadership and skill training and facilitates
84 Italian language programs for its nationals to promote their social and
economic integration in Italy.
Some consulates provide health assistance to their nationals. For
example, the Mexican consulate in New York has a Ventanilla de Salud,
or health kiosk, that provides Mexican immigrants with basic medical
advice, vaccinations, and referrals to medical facilities. Mexico started an
annual Binational Health Week in the United States to promote access
to quality health care for underserved immigrants by highlighting health
and education activities such as workshops, insurance and hospital
referrals, vaccinations, and a policy forum for medical practitioners. The
consulates of Guatemala, El Salvador, Honduras, Colombia, Ecuador,
and Peru participate in the health program as well. Paraguay has an
emergency hotline for citizens who are distressed, including those who
are hospitalized. Almost all countries provide medical visitations and
guidance to their nationals.
Consular identification cards for use in destination countries have

become increasingly popular in recent years. For example, Guatemalan
consulates issue a consular identification card alongside passports.
Mexican consulates also issue consular IDs, called matriculas consular,
which are accepted as an official, government-issued form of identification
and can be used to open bank accounts and support other transactions
for which a secure form of personal identification is required.
Some consulates help connect migrant communities through

cultural events and community gatherings. For example, Paraguayan
embassies have hosted organized cultural events — such as the celebration

of Paraguay’s bicentennial — for the Paraguayan diaspora in Buenos Aires
and hosted orchestra performances in Madrid. Mexican consulates engage
with various hometown associations (HTAs) in Mexico to host cultural
events and conferences in the United States, thus helping sometimes
disparate Mexican immigrant groups to interact and strengthen their
cooperation.
A number of consulates have established community houses. For

example, Ecuador’s embassy — through its Ecuador Houses in London,
Madrid, Caracas, and Santiago — provides care and protection for its
emigrants, as well as information on community resources. In Madrid, the
Ecuador House hosts several kinds of community gatherings and provides
information on employment opportunities and student services. Likewise,
the Israeli consulates in Los Angeles and New York and Israel’s embassy in
Paris promote Jewish community interaction by hosting cultural activities
in Israel Houses. Nowadays, such activities may be in-person or virtual.
For example, the Israel House in Los Angeles created an online networking
site known as Citizen Ambassador, which is now connected to Facebook. 85
Many consulates assist migrants in difficult situations. The Embassy
of the Dominican Republic in the United States provides counseling and
information about deportations to prisoners and their relatives.143 In
the United Arab Emirates (UAE), the Indian Embassy offers a hotline for
“women and housemaids in distress” while the Philippines’ consulate there
maintains a safe house for migrants who escape abusive employers.144
Some consulates also assist in migrant disputes, including domestic

ones. For example, the Philippines’ consulate in Seoul mediates personal
disputes between Filipinos, and assists the resolution of marital problems
of, for example, Filipino female spouses and their Korean husbands. In
some cases, the Philippines’ consulate provides a safe house for battered
wives and assists them in returning to the Philippines if they wish to do so.
Many consulates also maintain emergency hotlines that can be accessed
24 hours a day.
2. Links to the Homeland
An important function of consulates, as outlined in the 1964

Vienna Convention, is to promote business, economic, cultural, and
scientific relations between the sending state and the receiving state
through friendly relations. For most consulates in this review, however,
activities focus on linking emigrants — and their descendants — to the
homeland. They do so by providing information on developments at home

and by implementing programs on culture, education, and economic
development. Consular activities, for example, facilitate sponsorship of
cultural shows, language training, and overseas voting.
The Philippine, Chinese, and Sierra Leonean embassies in the United

States post news updates from home on their websites. The Bangladeshi
High Commission in India supports and/or conducts book fairs, cultural
festivals, and celebrations of Independence Day and International Mother
Language Day — a United Nations Educational, Scientific, and Cultural
Organization (UNESCO) event that has been held in Bangladesh (and
East Bengal as it was known before independence in 1972) since the
early 1950s.145 The Embassy of the Dominican Republic in the United
States hosts cultural events for children of Dominican heritage, while the
Moroccan embassy in France promotes language classes.
Aside from cultural events, a number of consulates encourage

86 members of their diasporas to study at home. The Pakistani embassy

in the United States provides links to internships, medical colleges, and
other universities in Pakistan.146 The Moroccan embassy in France offers
an extensive online list of special programs and/or universities where
Moroccan nationals may study in Morocco.147
Although almost all embassies provide information on business

and investment opportunities, most do not specifically target members of
the diaspora. However, governments are increasingly using their consular
networks to sell diaspora bonds, designed to tap into diaspora assets.
Israel and India have raised billions of dollars through their diaspora bond
initiatives.148 The Ethiopian embassy in the United States promoted the
country’s first diaspora bond, the Ethiopian Electric Power Corporation
(EEPCO) Millennium Bond.149
Some governments have expanded their diplomatic presence in

places with large diaspora populations. Although Mexico has maintained
an extensive consular network in the United States since the 1800s, the
government has established new consulates since 2000 to make sure
it could reach the growing number of Mexican citizens in Boise, Idaho;
Indianapolis, Indiana; St. Paul, Minnesota; Kansas City, Missouri; Omaha,
Nebraska; and Raleigh, North Carolina.150 As of mid-2009, Mexico had
50 consulates throughout the United States.151 Similarly, the Philippines
has opened four diplomatic posts since 2008 to reflect the increasing
presence of Filipinos in Ireland, the Syrian Arab Republic, and China.152
The Philippines government maintains 88 offices in 65 countries and plans

to open additional posts in Finland, Portugal, and Poland.153
The composition of diplomatic staff has evolved to accommodate

diaspora needs and interests. For instance, each Ethiopian embassy has
a diplomat assigned to handle expatriate issues.154 About 70 to 75 IME
representatives in Mexican consulates in the United States are in charge
of implementing IME programs and projects.155 Likewise, given the
Philippines’ focus on protecting Filipino workers abroad, many consular
offices of the Philippines have welfare and labor attachés to attend to
distressed and abused workers.
F. Quasi-Governmental Institutions
Some governments have adopted more unconventional ways to

institutionalize their engagement with diasporas. By establishing and/or
maintaining foundations and diaspora councils, a number of developing
countries have essentially created quasi-governmental diaspora institutions
that blur the usual distinction between official and nongovernmental 87
bodies. Such institutions are especially useful to origin governments that
do not want to be seen — for whatever reason — as intervening too much
in the affairs of host countries. Eight countries in this review support quasi-
governmental diaspora institutions (see Table 5).
Table 5: Countries with Quasi-Governmental Diaspora

Institutions
Stock of
Top
Stock of emigrants as % of
Country Institution destination,
emigrants, 2010 total population,
2010
2010
National
Dominican Presidential Council
1,035,800 10.1 United States
Republic for Dominican
Communities Abroad
Jewish Agency for
Israel
West Bank and
Israel American Jewish 1,019,900 14
Gaza
Joint Distribution
Committee
Hassan II Foundation
for Moroccans
Resident Abroad
Morocco 3,106,600 9.3 France
Council on
the Moroccan
Community Abroad
High Council of
Malians Abroad
Malta’s Emigrants’
Malta 107,500 26.2 Australia
Commission
Consultative Council
Mexico of the Institute for 11, 859,200 10.7 United States
Mexicans Abroad
Peru Advisory Council 1,090,800 3.7 United States
Republic of Overseas Koreans
2,078,700 4.3 United States
Korea Foundation
Sources: MPI-IOM Questionnaire, Part I, 2011 for all countries except Dominican Republic, Morocco, Mali, Peru, and Republic
of Korea ; author research for those countries; for data on emigrants and their destinations, see World Bank, Migration and
Remittances Factbook 2011 (Washington, DC: World Bank, 2011).
1. Foundations
In 1990 Morocco created the Hassan II Foundation for Moroccans

Residing Abroad (FHII). Established by royal decree, FHII is officially
described as a “nonprofit institution with a social vocation, endowed
88 with a moral personality and financial autonomy.” It is a private — not

a government — institution, and has an especially close relationship
with the Moroccan government which sets its mandate. Interestingly,
at one point in time, the minister in charge of Moroccans abroad also
ran the foundation; its current president is Princess Lalla Meryem. In an
analysis of FHII, the international relations expert Laurie Brand mentions
an interview with the then director-general of FHII, Abderrahman Zahi, in
which he said (in Brand’s paraphrase) that “a foundation was preferable to
a ministry because if it intervened on behalf of immigrants, it would not
provoke the same sensibilities, but that as more than [an] association or
an NGO [nongovernmental organization], it has a stronger voice with host
governments.”156
FHII works in six areas: education, cultural exchange, sports,

and youth; legal assistance; social assistance; economic development;
cooperation and partnership; and communication. In collaboration with
IOM, the foundation created the Observatory of the Moroccan Community
Residing Abroad (OCMRE) — a network of experts, researchers, academics,
and FHII partners. OCMRE’s main objective is to monitor and analyze
the living conditions of Moroccans abroad through data collection and
maintenance of an information system.
2. Advisory Councils
Another type of quasi-governmental diaspora institution is the

advisory council. Such councils, usually a mix of community leaders and
government officials, advise the government on diaspora-related matters.
One example is Mali’s High Council of Malians Abroad, which serves as the
official representative of the diaspora both in Mali and in the countries of CHAPTER 4: BUILDING DIASPORA INSTITUTIONS:
residence. The council aims to promote solidarity between the diaspora
and Mali, assist consular officials in the protection of Malians abroad,
identify potential diaspora investors, and promote a positive image of
Mali. Local councils, elected in countries where Malian expatriates are
concentrated, elect representatives to the High Council.157
Mexico’s IME collaborates with an advisory and consultative

body, the Consultative Council of IME (CCIME). Created in 2003, CCIME
is composed of Mexican, Mexican American, and Mexican Canadian
community leaders; directors of Latino organizations; and special
advisers and representatives of Mexican state governments. The 2006-
08 CCIME had 100 of its members elected or appointed by the Mexican
communities that each of the consulates in the United States and
Canada serve; 15 members were appointed based on merit and career.158 89
More recently, in 2006 the Dominican Republic created the National
Presidential Council for Dominican Communities Abroad. This council
primarily aims to integrate the diaspora into the Dominican Republic’s
national development efforts. The council makes recommendations to the
Dominican government and supports the implementation of programs,
plans, and projects.159
Government-financed councils are particularly significant since

they can be an excellent conduit of information and feedback between
governments and diasporas. Like local-level institutions, they are ideal
and — in some cases — necessary complements to government bodies
at both the national and local levels. That said, who sits on these councils,
and more importantly, how they were chosen, are crucial factors in
determining whether or not they can fulfill their potential. If a diaspora
sees its council members as unrepresentative or irrelevant, the councils
will at best be ignored and at worst maligned.
2 Challenges and Lessons Learned
In many developing countries, creating effective and viable

government institutions that address the needs of local (and diaspora)
populations continues to present a major challenge. Their main problem,
not surprisingly, is insufficient resources — financial, technical, and
political — which often results in institutions rich in ambition but poorly

able to implement their vision.
Diaspora institutions are in many ways no different from other

institutions in developing countries — a fact that is not surprising,
given that they were created from the same mold. It is difficult to fully
assess the effectiveness of diaspora institutions, not to mention their
impact on development efforts at home. As outlined earlier, there
are few existing evaluations, if any, and only limited discussions in the
academic and policy literature. Moreover, of the 77 institutions included
in this review, an overwhelming majority were established fairly recently,
making assessments of their effectiveness and impact over time difficult.
Yet the experiences of the 56 countries reviewed allow us to make four
recommendations that may be useful to governments: do your homework,
value the process as much as the outcome, invest in state capacity, and
link diaspora institutions to national development priorities (if suited to
the local context).
90
A. Do Your Homework
ÂÂSuccessfully creating formal government institutions requires

serious preparatory work aimed at understanding diasporas’
needs, wants, and potential; appraising the current government
approach to diaspora engagement; and learning from the
experiences of other countries. Diaspora institutions have to
design and adopt practices that address the unique characteristics
of their respective diasporas. For instance, some countries have to
deal with large unauthorized populations (e.g., Mexico, Morocco),
scattered and highly mobile diasporas (e.g., the Philippines), or
persistent intergroup rivalry along political, ethnic, and/or religious
lines (e.g., Bangladesh, Haiti).
ÂÂIt is crucial to ensure that institutions adopt policies based on

skills, capacities, and intentions that complement one another.
The Indian government, for instance, tasked a high-level committee
with recommending a broad but flexible policy framework and
country-specific plans to engage the estimated 20 million NRIs
and persons of Indian origin (PIOs); the latter include emigrants’
descendants up to the fourth generation. For two years, the five-
person committee — composed of two current members of the
Indian parliament, two retired career diplomats, and an NGO leader
— undertook a mapping exercise focused not only on identifying
the size and locations of the diaspora but also its members’ skills,

capacity, and willingness to engage. To extract relevant lessons
from other countries, the committee studied other diasporas and
government efforts to connect with them. It also evaluated existing
Indian government institutions and their effectiveness in dealing CHAPTER 4: BUILDING DIASPORA INSTITUTIONS:
with diasporas. In 2004, the committee produced an impressive,
publicly available 600-page report that included 22 country and
regional profiles, a discussion of issues important to the diaspora,
and policy recommendations on topics ranging from the issuance
of NRI/PIO identification cards to a new government structure for
diaspora engagement.160 The committee’s work proved critical to
the creation of MOIA in 2004.
B. Value the Process as Much as the Outcome
ÂÂHow institutions are created and how their activities are chosen
are critical indicators of success. During the planning phase it is
important to delineate clearly the division of responsibilities inside
and across government agencies and to establish sufficient buy-
91
in from key actors. If an institution does not have legitimacy, it
will become susceptible to political manipulation. For instance, in
2000, the Mexican government nominated an “expatriates’ czar,”
a ministerial-level post attached to the president’s office. In a case
study of Mexico, analysts Agustin Escobar Latapi and Eric Janssen
argued that despite his “charisma,” the new minister “clashed with
the ministries that had traditionally dealt with expatriates (Ministry
of the Interior and Ministry of Foreign Affairs) who successfully
lobbied to oust him.” His removal eventually led to what Latapi
and Janssen described as the more “careful” creation of IME.161
ÂÂCareful planning and communication are particularly important

because some diasporas have little trust in their origin-country
governments. This is especially true of diasporas that originated in
a refugee flow or voluntary exit following a regime change opposed
by groups who then fled into exile — such as Cuba, Viet Nam (until
recently), and the Islamic Republic of Iran. Among diasporas that
emigrated for mainly economic reasons, a perception of pervasive
corruption and ineffective governance at home can also impede
a government’s ability to build trust. The Indian diaspora is an
example of a long-standing and economically driven diaspora
whose trust had to be regained before the institutionalization
process could succeed.
ÂÂDiaspora-engaging institutions should invite diaspora

involvement in setting their agendas. Experience shows that

programs are more likely to succeed if diasporas are involved,
either directly or indirectly, in planning them. Consulting the
diaspora also generates trust and ownership. Governments should

take care, however, to avoid creating a privileged “insider” group
of diaspora partners. To avoid this, the majority of members
of CCIME — which has played an important role in shaping the
Mexican government’s diaspora agenda — are chosen through an
election conducted every three years in Mexican consulates in the
United States and Canada. Moreover, council members can only
serve one term to avoid becoming tools for special interests and
to encourage the participation of more individuals.
ÂÂOperational transparency and effective monitoring also build

trust and legitimacy. Transparency in managing funds is especially
critical. Diaspora institutions should routinely release information
about their financial standing, the services they have offered in a
92 given period, and the outcomes of their operations. Operational

transparency is even more critical in instances where institutions
are suspected or accused of corruption and mismanaging funds.
C. Invest in Capacity Building
ÂÂAn institution’s agenda is only as good as the institutions

implementing it. Building institutional capacity, especially for
institutions with expansive and multiple roles, must be a priority.
Providing adequate funding, improving technical know-how,
and creating partnerships are three elements critical to capacity
building.
ÂÂDiaspora institutions must learn how to effectively share the

cost of diaspora engagement by aggressively tapping into the
available pool of resources from the private sector and civil
society. In particular, developing countries with very limited and
dwindling financial resources face real spending and allocation
constraints, especially when the needs of citizens at home, such as
education and social welfare, are as acute as the needs of migrants
abroad.
ÂÂConfronting financial constraints head-on also means that

governments need to reevaluate what types of institutions are
most cost-effective. For many countries of origin with limited state
capacity, working with existing structures rather than creating a

new institution may be the most realistic approach — and perhaps
the most successful.
ÂÂPrivate-public initiatives could augment the tight budgets CHAPTER 4: BUILDING DIASPORA INSTITUTIONS:
(exacerbated by the global economic crisis) faced by many
countries of origin. The quasi-governmental institutions described
in this chapter are good examples of such initiatives, since they use
private resources to pursue decidedly public goals. Public-private
initiatives also underscore the extent to which migrant-destination
countries can make a difference by sharing the financial costs of
engagement.
93
D. Link Diaspora Institutions to National Development
Priorities (If Suited to the Local Context)
ÂÂMost home governments have not integrated their development

priorities with their diaspora institutions. In an ideal world,
well-funded, capable, and legitimate institutions of diaspora
engagement would engage in activities directly relevant to the
origin country’s national development plans; many already
have such plans, often devised with the support of multilateral
organizations. Diaspora organizer Awil Mohamoud laments that
“many African governments have not yet developed national
strategies and policy instruments specifically intended to involve
the diaspora in the development efforts of their respective
countries.”162
The gap between programs and development planning exists

despite the fact that many diaspora institutions were created with
a development mandate. Programs within diaspora institutions,
such as those that protect migrant workers or support the
integration of citizens abroad, do not often directly complement
short-, medium-, and (especially) long-term development
goals such as the strengthening of critical industries that can
generate jobs and lift people out of poverty. (Exceptions to this
generalization can be found among East Asia’s “developmental
states,” such as China, the Republic of Korea, and Taiwan Province
of China.)
ÂÂIn cases where the current priorities and capacities of a

diaspora do not coincide with national development plans,

governments should consider giving priority to integration
and/or protection services in the destination country. The gap
between diaspora institutions and development policy should
concern governments. But governments should not overlook the
strong, if not immediate, development impact of delivering social
protection and/or promoting integration in the host country. For
some nations — Bangladesh, Peru, and the Philippines among
them — protection seems to be the only priority, while Mexico
has centered on integration at the destination. Since such actions
address diaspora needs, they foster trust between migrants and
their home-country governments, and thus position the diaspora
to play a key development role in the future.
94
95
Chapter 5: Reducing Barriers
CHAPTER 5: REDUCING BARRIERS

Creating a conducive atmosphere is a critical first step toward
diaspora engagement. As already noted, members of diasporas were
instrumental in bringing development closer to home long before the
introduction of formal “diaspora and development” programs. These
connections occur spontaneously and are driven by a wide range of
motivations, from the purely altruistic to the profit oriented, but they
share one thing in common: they happen with little or no government
intervention and even in the face of government resistance.
One option for policymakers, then, is to encourage spontaneous

engagement. But how is this done? Policymakers’ best bet is to put in
place a legislative and regulatory framework that promotes diaspora
involvement. Such a framework should create a web of privileges and
obligations designed for a highly mobile population with multiple affinities.
This chapter focuses on six sets of laws and regulations that

governments have adopted to meet this goal. Many have been introduced
since the year 2000. All aim to eliminate regulatory and legislative
provisions that either restrict or discourage members of diasporas from
traveling between home and host countries or from fully participating in
their origin countries’ polity, society, and economy.
Creating a conducive framework is generally not tied to a specific

development goal. It may, nonetheless, have a significant developmental
impact, in part by gaining diaspora members’ trust and therefore
encouraging their contributions to development.

A Menu of Viable Options: A Checklist
96 1. Flexible citizenship laws and residency and visa requirements

• Allow for dual or multiple citizenship
• Flexible residence and visa requirements
2. Grant political rights

• Allow overseas voting
• Allow diasporas to run for public office while maintaining residence abroad
• Reserve congressional seats for diaspora representatives
3. Special property rights
• Allow diasporas to purchase land and other properties that are off-limits to
foreigners
4. Tax incentives
• Exempt customs duties and fees on the importation of household goods of
returnees
• Reduce income tax rates for returning citizens who have worked abroad for a
certain number of years
• Exempt diaspora investments such as providing lower tariffs on imported raw
materials and equipment
• Offer tax deductions on charitable contributions
5. Portable benefits
• Offer portable benefits, particularly relating to pensions and medical and life
insurance
• Conclude social security agreements bilaterally or as part of regional agreements
6. General laws recognizing the diaspora
• Introduce legislation that officially recognizes members of the diaspora or
emigration in general as integral part of the national development plan.
Lessons Learned and Challenges
1. Elicit local buy-in, first and foremost

2. Identify loopholes and gaps in coverage, since the devil is often in the details.
3. Outreach and information dissemination is key
4. Monitor the implementation of the laws and regulations to correctly identify challenging
areas.
1 Six Actions to Facilitate Diaspora Engagement
A. Flexible Citizenship Laws and Residency and Visa

Requirements
Many countries have passed some form of flexible citizenship law,

enabling emigrants and their descendants to acquire dual or multiple
citizenships. The number of countries allowing most of their citizens to
hold dual citizenship has more than doubled in the past 20 years. For
example, ten countries in Latin America — Brazil, Colombia, Costa Rica,
the Dominican Republic, Ecuador, El Salvador, Mexico, Panama, Peru, and
Uruguay — have such provisions.

Even destination countries that were previously quite strict about
exclusive nationality, such as the United States and Germany, are starting
to show some leniency, mainly in extending naturalization privileges to 97
diasporas within their borders. For instance, Germany adopted a new
nationality law in 2001 that opened up German citizenship to its minority

populations, by introducing a modified version of birthright citizenship.
The United States gives low priority to enforcing the formal requirement
of renunciation of prior citizenship upon naturalization.
Interestingly, some developing countries recognize dual membership

selectively. Guatemala has dual-citizenship agreements with other Central
American countries, and several Latin American countries have them with
Spain. Similarly, India approves dual citizenship to nonresident Indians
living in wealthy, industrialized countries but denies it to Indians working
in poorer or less developed countries.
Several countries — including China, the Islamic Republic of Iran,

and Greece — have no provision for expatriation; thus, persons born in
China are still considered Chinese citizens if they take another nationality,
regardless of whether they desire or claim dual citizenship.
In the Syrian Arab Republic, dual citizenship is not accepted under

the Syrian Nationality Act, but it is a recognized and practiced institution.163
A few other countries are expanding their dual-citizenship

provisions. The Ministry for Haitians Abroad, a ministry-level institution
created to engage members of the Haitian diaspora, successfully lobbied
Haiti’s legislature to approve in March 2011 a constitutional amendment
allowing dual nationality, although it had yet to be implemented at this
writing.164
In Bosnia and Herzegovina, the Constitution and the Law on

Citizenship both have provisions allowing dual citizenship as long as the
host country has signed a bilateral agreement. The government has until
January 2013 to secure a deal with key destination countries. However,
this deadline may be pushed back, or the limitation may be deleted,
depending on the results of an ongoing analysis commissioned by the
government.165
Residence and visa arrangements to facilitate diasporas’ access to

their home countries have also been adopted. For example, the Philippines’
balikbayan program grants former citizens and their immediate families
visa-free entry and stay for a period of one year.166 And an increasing
number of countries are issuing special registration and identification

cards that allow members of the diaspora who are not citizens to enjoy
privileges similar to those of citizens. As Box 1 shows, these registration
98 cards not only provide proof of identity and facilitate data collection but
also reinforce the value of consular services while abroad.
Box 1: Quasi-Citizenship via Registration

A number of origin countries offer special registration and identification cards that offer
diaspora members benefits and privileges that are typically reserved for citizens. Kingsley
Aikins and Nicola White highlighted efforts in India, Poland, Pakistan, Ethiopia, and Ireland.
In 2005 India introduced the Overseas Citizenship of India (OCI) program, targeted to foreign
nationals who have held or been eligible for Indian citizenship in the past (except for citizens
of Pakistan or Bangladesh) and their children or grandchildren. Although OCI holders do not
receive an Indian passport and have no voting rights, they enjoy various benefits such as
multiple-entry, multipurpose, lifelong visas to visit India. The program distributed 168,000
OCI visas in the first three years and over 575,000 since.
Poland offers the “Poles card” (Karta Polska) to individuals abroad with at least a “passive
understanding” of the Polish language and documented proof of Polish roots or “a connection
with Polish culture.” The Karta Polska is distributed at consulates and allows holders to
work in Poland without applying for a work permit; set up a company on the same basis as
citizens of Poland; study, undertake a doctorate, or participate in other forms of education;
and participate in research and development work. Interestingly, the holder also retains the
right to various types of benefits from access to scholarships and health care services to stiff
discounts on public transportation and free admission to state museums.
Likewise, Pakistan’s National Database and Registration Authority issues the Pakistan
Overseas Card (POC)to its diaspora members. POC holders are allowed visa-free entry into
Pakistan, can stay indefinitely in the country, and are exempted from foreigner registration
requirements. They can also purchase and sell property, open and operate bank accounts,
and need not apply for a Computerized National Identity Card (CNIC). The National Identity
Card for Overseas Pakistanis (NICOP), on the other hand, is issued to Pakistani workers,
emigrants, citizens, or Pakistanis holding dual nationality. All nonresident Pakistani nationals
who have lived abroad for more than six months are required to get a NICOP. Holders of
NICOPs are entitled to visa-free entry into Pakistan, protection of the government of Pakistan
in any foreign country or state, and membership in the Overseas Pakistanis Foundation (OPF).
In 2002, in Ethiopia, the government issued a proclamation allowing for “foreign nationals
of Ethiopian origin” to procure special identity cards that entitle them to various rights
and privileges that other foreigners do not. These include visa-free entry, residence and
employment rights, the right to own immovable property in Ethiopia, and the right to
access public services. Under the proclamation a foreign national of Ethiopian origin is
deﬁned broadly as follows: “a foreign national, other than a person who forfeited Ethiopian
nationality and acquired Eritrean nationality, who had been an Ethiopian national before
acquiring a foreign nationality; or at least one of whose parents, grandparents, or great-
grandparents was an Ethiopian national.”

More recently, the Irish government announced plans in 2010 to register 70 million people
of Irish descent around the world who do not qualify for citizenship. A Certiﬁcate of Irish
Heritage will be issued by a third-party business working with the Irish government. The card
may allow discounts on many services in Ireland, including airfare, hotel accommodation, and
a range of other tourism-related amenities although details of how it will be administered
is still unclear.
Source: Kingsley Aikins and Nicola White, Global Diaspora Strategies Toolkit, (Dublin:Diaspora Matters, 2011).

Governments of destination countries have also taken steps to
liberalize some residency requirements. In the United States, the Return
of Talent Act of 2003, sponsored by then-senator Joseph Biden, allowed 99
legal migrant residents coming from countries engaged in postconflict
reconstruction to return temporarily without breaking the five-year

residency requirement needed to apply for US citizenship.167
Policies that make it easy for members of the diaspora to travel

between their country of origin and country of settlement can positively
influence the decision to engage in the homeland. Offering multiple
reentry permits and long-term visas to transnational entrepreneurs
encourages them to actively supervise their investments. Likewise, the
International Organization for Migration (IOM), which has extensive
experience with programs facilitating permanent and temporary return
among the highly skilled, has found in many settings that migrants opt
to take only short-term assignments overseas for fear of losing residence
rights in their country of settlement. IOM finds that return programs,
even those involving temporary stays, chiefly attract migrants who have
acquired citizenship in the host country.168
As Cindy Horst and her colleagues observe, especially among

diasporas arising from postconflict situations, “While temporary return
for professional purposes is often an interesting option for those who have
obtained citizenship and are interested in finding ways of contributing to
their country of origin, this is not necessarily the case for those without
legal security in the country of settlement.”169
B. Political Rights
Many countries grant political rights to citizens while they are

overseas, the foremost of which is the right to vote. A 2007 review by
the International Institute for Democracy and Electoral Assistance (IDEA)
identified 115 states and territories with legal provisions for overseas
voting. As Table 1 shows, external voting provisions are most common in
Europe but are also found in every region of the globe.

Table 1: Countries with External Voting Provisions, by
100 Region
Region
Country/Territory
Algeria, Angola, Benin, Botswana, Cape Verde, Central African Republic,
Chad, Côte d’Ivoire, Djibouti, Equatorial Guinea, Gabon, Ghana, Guinea,
Africa (28) Guinea-Bissau, Lesotho, Mali, Mauritius, Mozambique, Namibia, Niger,

Rwanda, Sao Tome and Principe, Senegal, South Africa, Sudan, Togo,
Tunisia, Zimbabwe
Argentina, Bolivia (Plurinational State of), Brazil, Canada, Colombia,
Dominican Republic, Ecuador, Falkland Islands, Guyana, Honduras,
Americas (16)
Mexico, Nicaragua, Panama, Peru, United States, Venezuela (Bolivarian
Republic of)
Afghanistan, Bangladesh, India, Indonesia, Iran (Islamic Republic of), Iraq,
Israel, Japan, Kazakhstan, Kyrgyzstan, Lao People’s Democratic Republic ,
Asia (20)
Malaysia, Oman, Philippines, Singapore, Syrian Arab Republic, Tajikistan,
Thailand, Uzbekistan, Yemen
Austria, Azerbaijan, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria,
Croatia, Czech Republic, Denmark, Estonia, Finland, France, Georgia,
Germany, Gibraltar, Greece, Guernsey, Hungary, Iceland, Ireland, Italy,
Western, Central and
Jersey, Latvia, Liechtenstein, Lithuania, Luxembourg, Isle of Man, Republic
Eastern Europe (41)
of Moldova, Netherlands, Norway, Poland, Portugal, Romania, Russian
Federation, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United
Kingdom
Australia, Cook Islands, Fiji, Marshall Islands, Micronesia (Federated States
Pacific (10)
of), Nauru, New Zealand, Palau, Pitcairn Islands, Vanuatu
Total 115
Source: International IDEA, Voting from Abroad: The International IDEA Handbook (Stockholm: Trydells Tryckeri, 2006).
Since the IDEA review, a few more countries have adopted overseas
voting rights, including Eritrea, Burundi, and Burkina Faso,170 as well
as Lebanon and Morocco.171 Uruguay may soon join this list since this
provision was being reviewed by its parliament at the time of writing.172
In some countries, such as the Dominican Republic, expatriates can

run for office even if their primary residence is abroad. Some countries
go so far as to reserve congressional seats to represent the diaspora.
Colombia, for example, allows the expatriate community to elect
representatives to the Colombian legislature. International IDEA reports
ten more countries with diaspora representatives in their legislatures:
Algeria, Angola, Cape Verde, Croatia, Ecuador, France, Italy, Mozambique,
Panama, and Portugal.
C. Special Property Rights
According special property rights is another increasingly popular

means to fully engage diasporas, especially in post-Communist countries
where the right to private property was not recognized in the Communist

era and restitution of expropriated property has subsequently been
undertaken. Many countries place limits on foreign nationals’ ownership
of real estate and property. In Mexico, for instance, foreigners cannot 101
directly purchase homes in certain areas — mainly coastal and indigenous
zones of the country. Foreigners are also not allowed to purchase land in

the Philippines, but they can purchase condominium units. In India and
China, resident foreigners can purchase homes but have to get permission
from government authorities.173
These limitations on foreign property ownership curtail the options

that are available to members of the diaspora who have surrendered their
citizenship and to their descendants. In some countries, however, special
laws have been adopted to give privileges to naturalized former citizens
and those in the second and sometimes third generations. In India, for
instance, anyone who has ever held an Indian passport or whose father
or grandfather was a citizen of India can acquire unlimited residential and
commercial land. Individuals born in the Philippines and/or to a parent
who was still a citizen at the time of his/her birth can purchase either
residential or commercial land in the Philippines up to a total of 500
square meters or agricultural land of up to 1,000 square meters.174 Eritrea
similarly offers access to land and housing for expatriates.175
D. Tax Incentives
An increasing number of governments have introduced a tax

exemption on diasporas’ belongings imported from abroad, particularly
for those who want to return on a permanent basis. For instance, Mali
provides exemption of customs duties and fees on the import of household
goods for all Malian migrants who return permanently to Mali, including
students who return after their studies abroad.176 Mexico, Colombia,
Burundi, Ecuador, Guatemala, Comoros, the Philippines, and Uruguay also
offer similar benefits, not only for household goods but also for cars.177
A few governments are offering reduced income tax rates for

returning citizens who have worked abroad for a certain number of years.
For instance, Malaysia’s Talent Corporation hopes to “attract and retain
the necessary skilled human capital” through its Returning Expert Program
(REP). On top of tax exemptions for household and car imports, REP also
guarantees a flat tax rate of 15 percent on employment income for five
years. Returnees, however, have to work within sectors that government
planners consider as national key economic areas (NKEAs).178

Some countries have introduced tax exemptions on investments.
Lowering tariffs on raw materials and equipment imported into the
102 country of origin can help diaspora entrepreneurs begin transnational
businesses. The Malian Investment Code, for instance, offers a number of
initiatives to encourage investments from foreigners and Malians residing
abroad, such as exemption of duties and taxes on the import of equipment

and construction material needed for investment projects, exemption of
company tax and corporate tax, and license and fiscal advantages during
implementation of investment projects.179
Similarly, foreign investors and Senegalese nationals residing abroad

who would like to engage in corporate activity in Senegal enjoy fiscal
advantages in the project setup period (three years) and the exploratory
phase of an enterprise or project (up to a maximum of five to eight
years) and get discounts on or exemptions from certain state taxes. Law
No. 2008-47 includes fiscal incentives relating to the creation of mutual
savings and microcredit, which can be of particular interest to Senegalese
nationals living abroad.180
Other countries that have introduced some form of tax exemptions

on investments include Ethiopia, Colombia, Burundi, Ecuador, and
Burkina Faso.181 A review by the International Center for Migration Policy
Development (ICMPD) and IOM also identified special provisions in
Morocco and Niger.182 In the survey conducted for this handbook, Bosnia
and Herzegovina reported that it has requested tax exemptions for the
diaspora through its newly adopted development strategy, while the
government of Switzerland may adopt similar provisions in the future.183
Some countries also offer tax deductions for charitable contributions

to encourage philanthropy. These include Mexico, the United States,
Ethiopia, Seychelles, and Burundi.184 The United States, where charitable
contributions have been tax deductible since 1917, has been particularly
successful in promoting philanthropy using its tax policy, especially in
the wake of natural disasters. For example, the US Congress approved
legislation that gave special tax treatment for charitable contributions to
relief-and-recovery efforts in Haiti after the 2010 earthquake by extending
the deadline for contributions that could be claimed as tax deductions in
the year of the crisis.
There is a clear consensus that public policy must tread lightly in

promoting specific private causes but rather should establish conditions
that encourage philanthropy in general. A Migration Policy Institute
(MPI) analysis of programs to encourage philanthropy among the
diaspora highlighted tax breaks as “perhaps the most effective policy tool
available.”185

E. Portable Benefits
Recently, countries have also offered portable benefits to their

103
diasporas, particularly those relating to pensions and medical and life

insurance. The majority of migrants face obstacles in carrying their
pension and health care benefits with them when they move, since
bilateral or multilateral social security agreements cover only 20 to 25
percent of international migrants.186 The lack of portability is believed
to discourage more engagement with countries of origin, primarily by
inhibiting temporary and, especially, permanent return. (This is especially
important for migrants contemplating retirement). IOM has also found
that the loss of social and health entitlements discourages migrants from
participating in programs facilitating return.
A few countries have successfully managed to protect their

migrants by negotiating bilateral social security agreements. For example,
the majority of migrants from Morocco (89 percent), Algeria (87 percent),
and Turkey (68 percent) work in destination countries that offer them full
portability of benefits.187
Bosnia and Herzegovina has concluded bilateral agreements with

host countries on social security, pensions, and health care benefits. In
particular, the Department for Diaspora works with other government
institutions directly in charge of pension and health care benefits, primarily
by collecting and sharing information on how to access these rights.188
In Morocco the Mutuelle des Marocains à L’Etranger (MUMADE),

created in 2009, “provides a legal framework that ensures medical
coverage of Moroccans abroad who have returned temporarily and/or
permanently to Morocco from a country of destination with which no
bilateral agreement exists.”189 Mexico’s Health Department also offers
health insurance through the Seguro de Salud para la familia en Mexico
program.190
Similarly, in Burkina Faso, the social security fund has set up

measures to facilitate the collection of overseas nationals’ retirement
money in Burkina Faso. Agreements have been signed with several
countries including France and Côte d’Ivoire; negotiations with Italy are
ongoing.191 Other countries with provisions for social security portability
include the United States, Spain, Burundi, Estonia, Ecuador, Portugal,
Comoros, Uruguay, and Seychelles.192

In addition, there are also regional agreements such as among
members of the Caribbean Community (CARICOM) and Mercado Común
104 del Sur (MERCOSUR), which have made efforts to grant nondiscriminatory
access to social services and make benefits portable for intraregional
migrants. CARICOM has almost 3.4 million migrants, of whom 12 percent
move under arrangements that guarantee complete portability.
F. General Laws
Some governments have officially recognized their diasporas —

and, in some cases, migration in general — as an integral part of their
national development plans. For instance, Mali’s National Population
Policy (Politique Nationale de Population) of 1991, revised in 2004,
discusses the importance of integrating international migration into
the national development strategy.193 Likewise, the Rural Development
Strategy of Niger (Stratégie de développement rural au Niger) elaborates
on the important role migrants’ financial resources can play in local
development. Migrants are also recognized in Niger’s Action Plan of
the Rural Development Strategy and the Accelerated Development and
Poverty Reduction Strategy for 2008 to 2010.194
This official recognition is an important step since it unequivocally

shows to the diaspora that they are regarded as critical actors in the
development of their country of origin. Indeed, for the government
of Uruguay, Migration Law 18.250, a law that officially recognizes the
“inalienable right of migrants and their families” is a “successful initiative”
since “it shows to the diaspora the importance of the migration issue for
the government.”195
Enacting rules and regulations that are conducive to diaspora

engagement is a critical first step but far from the only one. There is often
a disconnect between what government planners envision on paper and
what is implemented on the ground. To maximize the effectiveness of
these rules and regulations, governments should consider the following
lessons of experience.

A. Elicit Local Buy-In, First and Foremost
Although clearly beneficial to members of diasporas, special

105
privileges of the types described in this chapter may be perceived as

unfair to local populations. Local buy-in is important for the political
sustainability of programs. For instance, if overseas voting turnout is
low in countries that have reserved seats in the legislature for external
electoral districts, fewer votes will determine the outcome of the election
for a parliamentary seat compared to internal constituencies. In other
words, overseas voting may give external votes more weight.196
Local buy-in is also important because implementing diaspora

privileges costs taxpayers money, either in forgone income or additional
expenses for implementing programs. Eritrea, for instance, has eliminated
tax exemptions for overseas investors, which were meant to encourage
the import of various materials.197 Similarly, Botswana is considering
abolishing its external voting provisions as a result of the low turnout rates
among external voters and high costs associated with the arrangements.
Indeed, budgetary limitations constrain available options. As

International IDEA highlights in its analysis of implementing overseas
voting, advances in technology have allowed for incorporating tens or
hundreds of thousands of potential voters, but “it is clear that the design
and operation of such a mechanism would be very costly and even beyond
the means of many of the emerging or restored democracies.”198
B. Identify Loopholes and Gaps in Coverage: Often, the Devil Is

in the Details
It is also important to ensure that the regulations and protocols

put in place to implement a law do not have loopholes and gaps that
exclude intended beneficiaries. For instance, International IDEA finds that
countries’ success on implementing external voting can vary greatly and
depends on various factors such as who is eligible to participate, how
eligible electors can register, and what arrangements are made for votes
to be cast.199 As Table 2 shows, some countries require citizens to vote in
person, which may disadvantage some groups, especially the poor who
cannot afford transport, the undocumented who cannot easily move
around, and those who live far from embassies or consulates.

Table 2: External Voting Procedures, By Country
106 Procedures
Number
of Cases
Country/Territory
Afghanistan, Angola, Argentina, Azerbaijan, Belarus, Botswana,

Brazil, Bulgaria, Cape Verde, Central African Republic,
Colombia, Côte d’Ivoire, Croatia, Czech Republic, Djibouti,

Dominican Republic, Ecuador, Equatorial Guinea, Finland,
Georgia, Ghana, Guinea-Bissau, Guyana, Honduras, Hungary,
Iceland, Iran (Islamic Republic of), Iraq, Israel, Kazakhstan,
Personal voting only 54
Kyrgyzstan, Lao People’s Democratic Republic , Republic of
Moldova, Mozambique, Namibia, Niger, Peru, Pitcairn Islands,
Poland, Romania, Russian Federation, Rwanda, Sao Tome
and Principe, Senegal, Singapore, South Africa, Sudan, Syrian
Arab Republic, Tunisia, Turkey, Ukraine, Uzbekistan, Venezuela
(Bolivarian Republic of), Yemen
Austria, Bangladesh, Bosnia and Herzegovina, Canada,
Denmark, Falkland Islands, Fiji, Germany, Gibraltar, Guernsey,
Postal voting only 25 Ireland, Italy, Jersey, Lesotho, Liechtenstein, Luxembourg,
Malaysia, Isle of Man, Marshall Islands, Mexico, Norway,
Panama, Switzerland, Tajikistan, Zimbabwe
Proxy voting only 4 Mauritius, Nauru, Togo, Vanuatu
Algeria, Australia, Belgium, Benin, Chad, Cook Islands, Estonia,
France, Gabon, Guinea, India, Indonesia, Japan, Latvia,
Mixed procedures 27 Lithuania, Mali, Micronesia (Federated States of), Netherlands,
New Zealand, Palau, Philippines, Portugal, Slovenia, Spain,
Sweden, Thailand, United Kingdom
Not yet implemented
4 Bolivia (Plurinational State of), Greece, Nicaragua, Oman
or not available
Total 114
Note: The United States is not included in this table since the procedures for external voting vary by state.
Source: International IDEA, Voting from Abroad: The International IDEA Handbook (Stockholm: Trydells Tryckeri, 2006).
C. Focus on Outreach and Information Dissemination
Making benefits available is only half the battle; making members

aware that such benefits exist is an even bigger challenge. In offering
special privileges, governments need to show that there is demand for
them. Otherwise, it is very difficult to make the case for special provisions.
For instance, in the Philippines, Secretary Mely Nicolas of the

Commission on Filipinos Overseas (CFO) highlights the difficulty of
implementing provisions for dual or multiple citizenship, simply due
to what she sees as “lack of correct information among the Filipino
communities abroad.”200 Providing adequate and correct information is
especially difficult for countries, such as the Philippines, with huge and
dispersed diasporas. Similarly, according to the government of Uruguay,
implementing overseas voting was difficult “because the population did
not have enough information about the elections” in the first place.201

D. Monitor the Implementation of Laws and Regulations to
Identify and Address Challenging Areas
107
It is also important for governments to avoid paper schemes and

ensure that the implementation of laws and regulations are closely
monitored. For example, in countries with external voting provisions,
rates of registration and turnout rates abroad are almost always lower
compared to within the home country. This is true even in countries
like Brazil, where voting is compulsory for citizens who are temporarily
or permanently abroad and yet only about 5 percent of eligible external
voters participate. The same can be said in the case of Mexico. Despite the
large number of Mexicans living in the United States, the registration rate
was unexpectedly low.202
What may be interpreted as diasporas’ lack of interest in participating

in the political process may be, in fact, due to administrative, financial,
or institutional constraints. Lower participation rates may be attributed,
for instance, to the limited number and inaccessibility of polling stations.
Documentation requirements and restrictions or preconditions may
also make participation difficult or cumbersome to overseas voters. For
instance, in the Philippines, regulations require external voters to state
intention to to return to the Philippines within a specified timeframe.203
Some governments have chosen to closely monitor the

implementation of the rules and regulations put in place. Uruguay, for
instance, created a Migration Board to monitor the progress of the law
regulating 18.250.204 Mexico has worked with IDEA, an intergovernmental
organization that supports sustainable democracy worldwide, not only to
understand and better analyze Mexico’s experience with overseas voting
but also to compare it with other countries.205

PART
3
CREATING BRIDGES:
SIX FOCUS AREAS
FOR DIASPORA
ENGAGEMENT
D
iasporas have played an important and positive role in six key
areas: remittances, direct investments, human capital transfers,
philanthropic contributions, capital market investments, and
tourism.
Part Three of the handbook aims to identify the latest thinking

on each programmatic area by highlighting how various programs have 111
evolved in recent years, the challenges policymakers and practitioners
have faced, and the lessons that can be drawn from their experiences.
PART 3: CREATING BRIDGES:

SIX FOCUS AREAS FOR DIASPORA ENGAGMENT

Chapter 6: Remittances:
Making Private Money Work for the
Common Good
Remittances are among the most tangible links between migration

113
and development. According to World Bank estimates, officially recorded
CHAPTER 6: REMITTANCES: MAKING PRIVATE

MONEY WORK FOR THE COMMON GOOD
remittances flows in 2010 totaled over $440 billion worldwide.206 As in the
past, developing countries received the lion’s share of global remittances
($325 billion). In 24 countries, remittances were equal to more than 10
percent of the gross domestic product (GDP) in 2009; in nine countries
they were equal to more than 20 percent of GDP.207
Remittances have also been critical sources of foreign exchange

for national balance of payments accounts and have been found to
promote macroeconomic stability. Various studies have also shown that
remittances facilitate human capital formation, mainly by improving access
to education and health. They also lead to an increase in investments and
the reduction of poverty, particularly within recipient households.
Previously confined to the everyday conversations of migrants and

their families, remittances are now on the minds and agendas of many
governments, members of civil society, the international community at
large, and the private sector.
Remittances: A Menu of Viable Options
1. Strengthen remittance infrastructure

• Inform the diaspora about existing remittance transfer mechanisms
• Create more efficient channels of remittance transfer
• Strengthen the financial institutions that migrants already use
2. Provide opportunities for more productive investment of remittances

• Cross-sell complementary financial services such as remittance-backed mortgages
• Securitize remittance flows

Lessons Learned and Challenges
1. In times of financial crisis, some remittance-linked products and programs may be adversely
affected
2. Regulatory issues are critical to the success of remittance activities
3. Savings-based products are an important supplement to remittance-based financial
products
4. Effective promotion and outreach are key
5. Creating alliances with institutions that add value to a project increases chances of success
6. It is important to innovate and create new institutions and products that cater to migrants’
needs
114
1 Program and Policy Options
In reviewing initiatives associated with remittances, it is clear that

fewer governments are choosing the policy path of control. Countries
such as Brazil, for instance, once controlled remittance flows through rules
governing foreign exchange. All international transfers had to go through
the central bank. Likewise, in Viet Nam, the state used to control all foreign
exchange trade and require temporary migrants to invest 30 percent
of their earnings into a government fund. Such restrictions encouraged
the use of informal channels for money transfers, which meant that
remittances were not easily counted as part of the gross domestic product
and did not bolster the country’s foreign exchange position. Today, an
increasing number of governments realize the advantages of more liberal
remittance regimes.
Now, instead of taxing remittances, some governments have made a

180-degree turn and instituted tax breaks. For instance, in Egypt, migrants
remitting through banks receive tax breaks for up to ten years from the
time of the first formal transfer. Likewise, Colombia has reformed its tax
laws to encourage expatriates to send a larger portion of their earnings to
relatives in Colombia.
Indeed, the focus has shifted away from control to easing obstacles
and providing incentives, especially financial and monetary incentives,
typically with the support of civil society and the private sector.
Generally, two broad policy trends can be noted: (1) an increasing

interest on strengthening the infrastructure supporting remittances, and
(2) a renewed focus on using remittances more productively by cross-
selling products linked to remittances and securitizing remittance flows.

A. Strengthening Remittance Infrastructure
The weaknesses of the infrastructure supporting remittances have

been widely discussed and acknowledged by scholars and practitioners
alike. The transaction costs of transferring remittances remain high in
many corridors, and the challenges faced in distribution (particularly
the so-called “last mile” problem) have yet to be seriously addressed,
especially in remote areas. A transition from informal to formal systems is
desirable for both development and security reasons. Many programs and
policy prescriptions currently on the table are designed to address these
deficiencies. 115

1. Inform the Diaspora about Existing Remittance Transfer
Mechanisms
Many governments recognize that competition can lower costs and

make transfers more rapid and reliable. For example, the cost of sending
money has been more than halved since 1999 in the US-Mexico remittance
corridor, which has many highly competitive money transfer companies
and banks providing remittance services. One of the easiest ways to lower
transaction costs is to encourage the entry of new legitimate operators in
a given corridor, and to inform diaspora members about their ability to
choose among existing remittance-transfer mechanisms. This facilitates
increased competition among banks and money transfer organizations,
thereby lowering costs and improving efficiency.
Competition may also help increase transparency. With the aim

of increasing diaspora members’ trust in formal channels, governments
would do well to support the process.
There are various ways to increase transparency, one of the most

important of which is to make information on transfer fees publicly
available.
Launch a Score Card. The Inter-American Development Bank

(IDB), for instance, in 2006 launched a remittance scorecard that ranks
money transfer operators and banks according to a set of predetermined
criteria.208 A number of governments have since built on this approach by
maintaining and supporting websites that compare the transaction costs
charged by various remittance service providers.

Compare Transfer Fees. Mexico’s Remesamex allows remittance
senders to compare the fees of a wide range of transfer companies. The
website, created by the National Commission for the Protection and
Defense of Users of Financial Services (CONDUSEF), provides information
on fees based on the amount of money, the origin, and the destination of
the transfer.209
Other governments have worked with partners in civil society

and the private sector. For instance, the Netherlands Ministry of Foreign
Affairs has supported the creation of Geld Naar Huis, a website comparing
116 remittance services offered by banks and money transfer organizations,
including the costs charged for various destinations. The website is
maintained by IntEnt, a nongovernmental organization (NGO).210
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), a

federal enterprise of the German government, launched a similar website,
called Geld TransFAIR, in 2007. The site was established by way of a public-
private partnership between GIZ and the Frankfurt School for Finance
and Management, a private consulting firm, which provided information
about legal transfer channels from Germany to 33 countries. In 2010 the
Frankfurt School took over full operation of the website.211
Although potentially useful to increasing transparency of remittance

transactions, maintaining such websites can be difficult. As Box 1 shows,
websites are useful only if migrants actually use them.
Box 1: The Limits of Information: Lessons from

the Netherland’s Geld Naar Huis and German
International Cooperation’s (GIZ’s) Geld TransFAIR
If you build it, they will come. Government websites, however, often go unnoticed. The
governments of Germany and the Netherlands both supported the creation of websites
to provide consumer information on remittances and thus to boost competition between
financial institutions and increase transparency. Both countries have faced challenges in
informing migrants about the websites’ existence and in encouraging them to use the sites
regularly.
In an interview for this handbook, Sander Werrie, of the Netherlands Ministry of Foreign
Affairs, explained: “We don’t have the capacity to let people know that they can compare the
costs. I think that is why there are too few people using the website. There has to be more of
a campaign to improve visibility.” Indeed, the ministry has requested IntEnt, the NGO tasked
with maintaining the site, to allocate 50 percent of its €100,000 annual budget to a publicity
campaign.
In the case of Germany, the problem is deeper than lack of awareness among migrants.
As Regina Barbosa of GIZ, explained: “There have not been many changes in the costs of

transferring money, so the website is not very dynamic because the financial sector is not very
dynamic when it comes to costs and the various possibilities for transferring remittances.”
The lack of information on services offered by various providers may have contributed to
keeping remittance costs high since migrants may not be aware of cheaper alternatives, but
it is not the only reason. Filling the information gap alone would have limited impact on
transaction costs as long as service providers do not compete for customers by lowering their
charges for remittance transfer.
Sources: Interview by the author with Sander Werrie, May 3, 2011; and by Julia Schad with Regina Barboza, April 28, 2011.
2. Create More Efficient Channels of Sending Remittances 117

One way to reduce transaction costs is to create more efficient
remittance channels. Some governments have collaborated to create
such channels themselves, while others have chosen to partner with
nonstate actors such as registered banks, savings and credit cooperatives,
microfinance institutions, and post offices.
Among multigovernment partnerships, an interesting initiative is

Directo a México (see Box 2), which allows remitters to send money from
a bank account in the United States to any bank account in Mexico. The
service, which is a joint initiative of the US Federal Reserve and Banco
de México, offers a safer, cheaper, and more efficient remittance channel
than traditional money transfer operators.
Box 2: Directo a México

In 2001 Banco de México and the US Federal Reserve agreed to study the possibility of linking
payment systems across their border to create an efficient interbank mechanism. By October
2003, the two government institutions had established such a framework, focused initially on
pension payments to recipients in Mexico. By February 2004, this service had been extended
to commercial payments sent from any US financial institution enrolled in Directo a México
to any individual with a bank account in Mexico.
The consumer sending the money pays all fees, and there are no deductions or fees for the
beneficiary in Mexico. The payment is initiated in US dollars and converted into Mexican
pesos using a highly competitive foreign exchange rate based on the FIX, the interbank
reference foreign exchange rate, determined and published by the Banco de México, minus
0.21 percent. Consumers using Directo a México pay one of the lowest fees on the market, at
less than $5 per transaction regardless of amount remitted. Since the central banks in both
countries process the payments, remittances arrive safely and on time.
Source: Directo a México, “About Directo a México,” www.directoamexico.com/en/quees.html.

Governments may also choose to link their postal networks with
those of other countries. Chile, Spain, Uruguay, the United Republic of
Tanzania, and Uganda have taken such an approach to ensuring more
efficient and secure transfers (see Box 3).
Box 3: Post Offices as Remittance Providers

Individuals in Chile and Spain are now able to use the postal network to send and receive
money to and from abroad. The service is currently offered in 110 post offices in Chile, 2,300
in Spain, and 60 in Uruguay. The service is fast and secure; money transfers can be executed
118 and delivered in 15 minutes. The service relies on the International Financial System (IFS)
application developed by the Universal Postal Union’s (UPU’s) Postal Technology Centre. To
help postal operators move toward providing money transfer services by electronic means,
UPU has been making its electronic network more secure and reliable. In 2005 it started a
centralized clearing system, while concentrating additional efforts on key migration corridors.
Using its IFS application, it has opened 150 corridors connecting 36 countries. Some 60 other
countries are currently testing the application and may join the UPU’s international financial
network.
The United Republic of Tanzania and Uganda recently launched a pilot project facilitating
remittances between the two countries. The project, organized by the International
Organization for Migration (IOM) in partnership with UPU and the Pan African Postal Union
(PAPU), assesses the flow of remittances between the two countries, with a focus on
electronic postal money transfers, and trains postal staff, stressing the benefits of remittances
to national development.
Source: H. Bohela Lunogelo, Pilot Study on Supporting an Affordable Electronic Tanzania and Uganda (Geneva: IOM, 2009),
www.migration4development.org/sites/m4d.emakina-eu.net/files/Final_IOM-UPU_Assessment_on_Remittances_btw_UG-
TZ.pdf.
3. Bank the Unbanked
In most developing countries today, financial systems serve a very

small proportion of the population — the social and economic elite. A
number of governments aim to increase the participation of financial
institutions in remittance markets in an effort to attract more remittance
senders and recipients as clients.
Ultimately, having access to the formal financial system confers a

variety of benefits to senders and recipients: lower transfer costs, greater
security of transfers, the possibility of building assets through savings, and
the leveraging of larger amounts of remittance funds via credit. The goal is
to move from the current “cash-to-cash” system to the electronic transfer
system of account to account. To this end, the focus has been on how
to remove the obstacles that are keeping migrants from opening bank
accounts.

Offer Consular Identity Cards. Some governments issue identity
cards to migrants so that they can open bank accounts. Stringent
identification requirements prevent many migrants from opening bank
accounts. Some governments have issued identity cards to their nationals
living abroad, regardless of immigration status. As Box 4 highlights, issuing
consular identity cards presents a simple solution to encourage banking,
especially among the unauthorized.
Box 4: Consular Identity Cards: A Simple Solution to a

Big Problem 119
Unauthorized migrants generally have difficulty accessing many financial services in their
destination countries since they don’t necessarily have the documentation that banks

require. Some origin governments have issued consular identity cards for their citizens
abroad. Most financial institutions in the United States accept consular cards as a valid form
of identification. Such cards may serve to encourage migrants (regardless of immigration
status) to open bank accounts.
• Countries that issue consular cards include: Argentina (matrícula consular

Argentina)
• Brazil (matrícula de cidadão Brasileiro)
• Colombia (tarjeta de registro consular)
• Dominican Republic (localizador archive)
• Ecuador (consular ID)
• Guatemala (tarjeta de identificación consular)
• Guinea (consular ID)
• Mali (carte d’identité consulaire)
• Mexico (matrícula consular)
• Nigeria (citizen’s certificate)
• Pakistan (National Identification Card for Overseas Pakistanis)
• Peru (tarjeta consular)
• Senegal (carte consulaire)
It is important to note, however, that cooperation with the destination government is critical.
It was only after the US Department of Treasury announced in 2002 that consular cards were
valid government-issued identification that these cards were accepted at US banks and
government offices.
Offer Financial Literacy Training. Some governments consider

financial literacy a critical factor encouraging migrants to use banks and
other formal financial institutions. They hold financial literacy campaigns to
promote sending remittances through formal channels and to encourage
migrant workers to use the many other services that banks offer.
In Burkina Faso, the High Council of Burkinabés Abroad, a

government institution created to engage the diaspora, works with
diplomatic missions abroad to conduct information campaigns, not only
on remittances but also on the rights and duties of the diaspora in their
host countries. With an annual budget of 40 million francs (US$82,000),212

the High Council regularly sends a team of about eight individuals to
conduct these information meetings, especially in missions where there
is a large population of nationals of Burkina Faso, such as Senegal and
Togo.213 The campaign typically lasts for ten days and is conducted with
the support of local banks. Similar initiatives can found in the Philippines,
Mexico, and Nicaragua (see Box 5).
Box 5: Teaching Financial Literacy
120
In 2008 the Philippines’ embassy in the Republic of Korea initiated a financial literacy campaign
to maximize the potential benefit of diaspora remittances to national development. Working
with Filipino community groups in Seoul, the embassy conducted more than a dozen seminars
involving 400 participants in a one-year span. Assessments of the seminars’ effectiveness
suggest that participants’ financial literacy and money management skills improved.
Likewise, in 2010, the Institute for Mexicans Abroad (IME), a government institution catering
mainly to overseas Mexicans, reported that 69 percent of Mexico’s consulates in the United
States had an annual program to provide financial education to Mexican migrants; in
addition financial information was displayed in all the consulates’ waiting areas. IME has also
partnered with IDB, a multilateral lending institution, to provide financial education to both
migrants and their families living in Mexico.
It is important to offer financial training to households that receive remittances. IOM, for
instance, has partnered with Grupo Promerica (BANPRO), a Nicaraguan bank, to provide
financial education to remittance-receiving families. Since the project began in October 2010,
more than 3,000 family members with relatives working in the United States, Costa Rica,
and Spain have received training in financial literacy, including creating a budget, increasing
savings, and using the financial products available to migrants and their families.
Sources: Interview of Jed Dayang, Philippines Foreign Service Officer, interview by author, May 23, 2011; Javier de Leon,
answer to Questionnaire, Part II, and de Leon interview; Joan Hall, Ten Years of Innovation in Remittances: Lessons Learned
and Models for the Future (Washington: Inter-American Development Bank, 2010), http://idbdocs.iadb.org/wsdocs/
getdocument.aspx?docnum=35163520.
Make Banks Migrant Friendly. Another method of improving

remittance channels is to help banks become more accessible to migrants.
For instance, GIZ, Germany’s national development agency, conducted a
survey among the Serbian population in Germany and found that many
Serbs do not send remittances through formal channels. Many cited fears
of losing money sent through banks. The survey also revealed that many
Serbian migrants lacked information on ways to remit through Serbian
banks.214
To address the problem, GIZ organized a conference in 2009 that

brought together Serbian banks and several Serbian migrant organizations
from Germany to discuss reasons behind migrants’ reluctance to use formal
remittance channels. The conference effectively facilitated information
sharing between the two groups. After the conference, GIZ created an
information brochure on how the Serbian financial system works.

4. Strengthen the Financial Institutions that Migrants Already Use
Governments also increasingly recognize the enormous challenges

at the distribution stage, or the so-called “last mile” of remittance
transactions. Establishing operations in remote areas involves additional
costs that many banks and money transfer companies are not prepared to
bear. As a result, people in many rural areas face higher transaction costs
and more limited access than their counterparts in cities.
A critical factor in servicing the last mile is to strengthen the financial

institutions that migrants already use, such as post offices, rather than 121
encourage them to use financial institutions that for various reasons —
geographic, cultural, or otherwise — they prefer not to use.

5. Strengthen Rural Savings Banks
In 2002 Mexico created the Banco del Ahorro Nacional y Servicios

Financieros (National Savings and Financial Services Bank, BANSEFI), a
second-tier national credit corporation and development bank that aims
to help rural savings banks adapt to the provisions of new laws and trains
personnel at Mexico’s banking regulatory agency, Comision Nacional
Bancaria y de Valores (CNBV), to supervise them. As Box 6 shows, an
external evaluation highlights BANSEFI’s success in improving regulatory
compliance on the part of rural savings banks, and thus encouraging the
formal transfer of remittances.
Box 6: Strengthening Mexico’s Rural Banks

BANSEFI’s task is monumental: modernize the information systems of the 600 BANSEFI
branches and 400 other bank branches that belong to regulated banks, develop new savings
products within BANSEFI for remittance recipients, and create infrastructure for receiving
and channeling remittances sent by Mexicans residing abroad.
• An external evaluation done within 36 months of the project’s implementation showed

that the initiative had achieved the following: Upgraded the technology of 938 savings
banks and 493 branches of BANSEFI
• Established a new remittance-transfer network that helped increase the number of
monthly remittance transfers serviced by the network to approximately 70,000 (nearly a
50 percent increase over two years)
• Expanded the geographic coverage of the service, with more than 1,000 branches of the
125 savings banks participating in the remittance-transfer network
• Developed new products such as savings instruments, debit cards, credit cards, and
housing savings accounts that attract remittance recipients as clients.
Rural inhabitants in the areas reached by BANSEFI’s 1,431 branches and/or the rural savings
banks now have access to better remittance-transfer services. In the first half of 2007 alone,
620,451 transfers totaling 2.586 billion Mexican pesos (nearly $240 million) were made.
Source: Hall, Ten Years of Innovation in Remittances.

6. Strengthen Cooperatives
Ecuador has taken a similar route by assisting cooperatives. The

Central Bank of Ecuador (BCE) implemented the Alternative Remittance
Distribution Channel for Small Ecuadorean Financial Intermediaries
project in 2007. At that time, rural cooperatives could not access electronic
transfer management systems. The project aims to address this gap by
connecting them into a high-technology interbank payment system called
the Sistema Nacional de Pagos (National Payment System, SNP). Access
122 to the SNP will reduce costs and transfer times increase the use of formal
channels in rural areas. (see Box 7).
Box 7: Linking Cooperatives to the Remittance Market

Most cooperatives in Ecuador do not receive customers’ remittances directly from an SNP
since they are not regulated and do not maintain current accounts with the central bank.
The project created a mechanism to bring these unregulated cooperatives into SNP via a
regulated cooperative acting as a “network hub.”
Although the project is still in its early phases, and final outcomes are not available,
intermediate result so far has been significant. Thirteen unregulated cooperatives have been
incorporated into the SNP. Another 49 unregulated cooperatives have applied to become
participants. BCE is taking a more aggressive approach in marketing its services to the
cooperative sector, and this is showing results, according to an independent review of the
project.
B. Provide Opportunities for More Productive Investment of

Remittances
Although remittances are private money, governments can

encourage the development of investment vehicles and financial services
that allow migrants to invest remittances more productively and thus to
leverage their income stream from abroad to achieve greater financial
security.
1. Cross-Selling Complementary Financial Services to Remittance

Receivers
There has been an emerging interest in cross-selling complementary

financial services and products along with remittance services. The idea
is to design financial products that serve the needs of migrants and their
families while directing them to more productive uses. Germany, for

instance, supported a study in Uzbekistan that analyzed the demand for
special financial products and assisted private banks in developing such
products. The US Agency for International Development (USAID) supports
remittance-backed housing and business loans.215
2. Offer Remittance-Backed Mortgages
The introduction of home loan products that use migrant

remittances as collateral or to establish credit has been among the
most promising innovations in recent years. The idea is to develop legal 123
and financial procedures that permit migrants to purchase a house for
themselves or their families without having to return to their country

of origin. The remittances are used to pay off the loan, while the house
serves as loan collateral.
Governments encourage transnational alliances between financial

institutions in countries of origin and a variety of actors in the countries
to which migrants immigrate, primarily through subsidized lending. For
decades, developing countries have subsidized loans in order to expand
access to mortgage lending for low-income households. Governments in
Mexico, the Philippines, Colombia, and Burkina Faso continue this policy
by subsidizing mortgage programs for their migrants. All four countries
have special procedures to adapt to the unique requirements and needs
of their migrant populations. As Box 8 shows, Colombia and Burkina Faso
built programs from scratch while Mexico and the Philippines expanded
on existing programs for local populations.
Box 8: Remittance-Backed Mortgages: Four Models

Colombia Nos Une offers a housing program for emigrants who are interested in buying
a home in Colombia but require financing. The initiative runs the program Mi Casa con
Remesas (“My House with Remittances”) together with the National Bank of Colombia and
IDB. Cesar Vallejo, adviser at Colombia Nos Une, said he considers the program a success.
10.000 logements. The Ministry of Housing and Urban Development in Burkina Faso began
the project 10.000 Logements (“10,000 Homes”) in 2006 as a housing program fully funded
by the state with the goal of providing people decent housing at reduced cost. The program
is said to be popular among overseas nationals of Burkina Faso who express a strong desire to
benefit from public housing. The project, however, is said to have completed only 25 percent
of its objectives to date.
The Pag-IBIG Overseas Program is a voluntary savings program that aims to provide
Filipinos abroad the opportunity to save and obtain a housing loan of up to 2 million pesos
($50,000).216 The loan is financed using reserves of Pag-IBIG, the largest government pension
fund. To be eligible for a home loan, applicants must be active contributors to the fund for
two years. Loan entitlement is dependent on the amount of monthly contributions to the
fund. The monthly savings contribution can be as little as $5 to obtain a 500,000 peso loan or

as high as $20 to obtain the maximum loan of 2 million pesos. The fund also offers a lump-
sum option, whereby new members can obtain the loan immediately by paying the total of
a two-year contribution.

The program can be used by all Filipinos abroad, including those naturalized in other
countries and those eligible to apply for dual citizenship. In addition, there is a focus on small
and low-income borrowers, given that the program offers preferential repayment terms and
interest rates for smaller loans. For instance, a home loan of 300,000 pesos or less will incur
a 6 percent annual interest rate and is payable in 30 years — about half the interest rate and
10 years longer than the terms commonly offered by private-sector lenders.
Sociedad Hipotecara Federal (SHF), a government financial institution with the mandate
124 to foster the development of primary and secondary mortgage markets, runs Mexico’s
mortgage program. Unlike the Philippines’ Pag-IBIG, SHF is a wholesale mortgage bank and
guarantor; it does not directly lend to the public but rather provides long-term funding to
financial intermediaries and hedges the inherent interest-rate risk.
The program hopes to tap into demand unmet by US- and Canada-based financial institutions,
which are reluctant to take Mexican real estate as collateral, or by Mexican lenders that
do not have a system to offer services in the United States and Canada. The loan program
is a private-public partnership between SHF, IDB (a regional lending institution), BANSEFI,
IME, and four SOFOLES or private financial intermediaries — Su Casita, Hipotecaria Nacional,
Crédito Inmobiliario-Terras, and Hipotecario Crédito y Casa.
Under the partnership, SHF assumes the “full faith and credit” of the federal government
on risks taken through 2013. In other words, SHF offers unconditional commitment to pay
interest and principal on debt in case of default, while IDB shoulders part of the financing
needed and provides critical technical support. The intermediaries operate like any other
mortgage lender. The loan application is started and processed in the United States, funded
in pesos, and serviced in Mexico. Once approved, a remittance provider’s relatives can start
looking for a house in Mexico. When a house is found, the intermediary sends an appraiser to
the location to verify the price before lending money to the applicant. The Mexican immigrant
can then pay off the mortgage — in US dollars — at the intermediaries’ US branches. As of
2009, 2,000 loans have been disbursed to remittance-receiving households (an increase of
approximately 80 percent from baseline data); 7,000 migrants have received information and
training on financial concepts related to mortgages; and more than 10,000 brochures have
been distributed.
Sources: Vallejo interview, May 2011; Ousman Nacambo interview, May 2011; Pag-IBIG Fund, “Pag-IBIG International
Operations,” www.pagibigfund.gov.ph/pop/; Hall, Ten Years of Innovation in Remittances.
3. Securitize Future Remittance Flows
A number of countries have also resorted to the securitization

of future remittance flows in order to raise external financing. Many
developing countries do not have a wide range of external financing
sources and rely solely on official development assistance (ODA) and
foreign direct investment (FDI) to finance public investment. However, both
ODA and FDI have declined as a share of GDP over the past few decades.
Securitization is an alternative method to finance public investment since
workers’ remittances represent a future-flow receivable that financial
institutions can collateralize to access additional capital.

Ngozi Okonjo-Iweala and Dilip Ratha of the World Bank put it
succinctly:
When a migrant transfers foreign currency to a relative’s

creditworthy bank in his home country, the bank pays out the
remittance from its holding of local currency. That transaction
creates a foreign currency asset equivalent to the size of the
remittance, which can be used as collateral for borrowing
cheaply and over the long term in overseas capital markets.
Such borrowing has no effect on the flow of money from
migrants to their beneficiaries. Yet development banks, national 125
banks in developing countries and donor agencies can partner
to harness enough remittances and create enough collateral to

raise significant sums of money to invest in agriculture, roads,
housing and other vital projects.217
In other words, securitization enables banks in developing countries

to raise hard currency by selling bonds. The largely predictable and
sustainable flows of remittances to developing countries make remittances
relatively reliable as collateral for securitization and attractive for investors.
Typically, future remittance securitizations are rated investment grade
BBB- or higher as future flows are heavily overcollateralized.218 According
to Standard and Poor’s, only a slowdown of remittances of greater than
95 percent would lead to a default on remittance securitizations, which
makes securitization an ideal vehicle for raising funds even in times of
recession (see Box 9).
Many countries could potentially issue bonds backed by future

remittances, with amounts ranging from 10 to 20 percent of their annual
remittance flows, depending on the level of overcollateralization required
to implement these transactions.
A number of developing countries have securitized future

remittances and other future receivables.219 Since 2000 they have raised
in excess of $15 billion in international financing with an average maturity
of five to 15 years.220 These countries include, but are not limited to
Brazil, Egypt, El Salvador, Guatemala, Jamaica, Kazakhstan, Lebanon,
Mexico, Peru, and Turkey. Other countries, such as Nepal, are considering
securitizing remittances.221

Box 9: Securitization of Remittances in a Time of
Global Recession
After the financial crisis of 2008, remittances were more stable than ODA and FDI flows.
According to the African Development Bank (AfDB), the flow of ODA and FDI were five and
three times more variable than remittances between 1995 and 2009. Net remittance inflows
to Africa in 2010 amounted to $37 billion. The financial crisis caused a decline in ODA flows to
African countries by almost 50 percent in 2009, but remittance flows were relatively constant.
Due to the reasons behind the 2008 financial crisis, many may be averse to securitization.
However, securitization per se was not the main cause of the financial crisis, but rather the
excessive overvaluation of existing assets (mortgage-backed securities), not future-backed
126 receivables. In fact, unlike the securitization of existing assets, the securitization of future
receivables held up during the financial crisis.222 Given that the securitization of future
remittance flows requires overcollateralization, the risk is very low.223
Moreover, one of the strengths of securitizing future-flow receivables such as remittances

is that institutions are able to withstand liquidity crises. Any negative public reaction to
securitization after the 2008 financial crisis should therefore be seen as short-lived.
In the aftermath of the 2008 financial crisis, the International Finance Corporation (IFC)
provided assistance in helping a credit union in El Salvador securitize future remittance flows
to help provide microloans to micro, small, and medium-sized enterprises (MSMEs). The US
Department of State also launched the BRIDGE program with El Salvador and Honduras to
help their governments securitize future remittance flows to raise lower-cost and longer-
term financing for infrastructure, public works, and other commercial development projects.
Sources: International Finance Corporation (IFC), “FDC Remittance: Summary of Proposed Investment,” www.ifc.org/ifcext/
spiwebsite1.nsf/0/1DDDBD894DD604EB852576BA000E330D; IFC,, “IFC’s First Remittance-secured Financing Enables Credit
for El Salvador’s Microenterprises, Lower-Income People,” June 16, 2010, http://www.syminvest.com/news/ifc’s-first-
remittancesecured-financing-enables-credit-for-el-salvador’s-microenterprises-lowerincome-people/2010/6/16/2410; US
Department of State, “U.S. BRIDGE Initiative Commitments with El Salvador, Honduras,” (media note, September 22, 2010),
www.state.gov/r/pa/prs/ps/2010/09/147549.htm.
Leveraging remittances for development is an important but

difficult goal to achieve. Despite improvements in facilitating remittance
transactions and strengthening diasporas’ links to development, a number
of challenges remain.
A. In Times of Financial Crisis, Remittance-Linked Products

and Programs Can Be Adversely Affected
Experience in Latin America suggests that transnational loan

products linked to remittances can be affected by crisis. During the 2008
crisis, for instance, many Mexican migrants in the United States lost their
jobs and reduced their remittances to Mexico. An assessment by the Inter-
American Development Bank (IDB) found that this led to an increase in
raised the risk level of the SOFOLES’s portfolio of transnational mortgage

products during the 2008 crisis, as migrants lost jobs and their remittances
were reduced. The four SOFOLES continued to disburse transnational
loans at a slower rate than projected. In a global economic downturn,
mortgage-financing companies tend to wait out the crisis since mortgage
loans, relative to other types of loans, entail more risks due to the higher
amounts and longer lending periods.224
As the IDB highlights in its review of SHF’s experience, it is important

to:
225
■■Investigate the possibility of using guarantee funds to 127

encourage continued lending in times of crisis.
■■Develop remittance-backed products that can withstand a

financial crisis, such as housing microfinance (i.e., housing
improvement) models and projects and the securitization
of remittance flows, since these lower the risk for both the
lending institutions and the borrowing institutions.
B. Regulatory Issues Are Critical to the Success of Remittance

Activities
Regulatory issues are especially important if the executing agency

expects to work in foreign countries and navigate their various regulatory
environments. IDB’s experience in the Americas suggests strongly that a
“regulatory environment can constrain or facilitate transnational mortgage
products.” Such environments differ significantly across countries, and
special attention has to be given to state- and local-level regulations.226
For instance, in some destination countries the marketing of

remittance-backed mortgages and loans is made difficult — and, in some
cases, impossible — by laws and regulations that prohibit the selling of
savings products and properties abroad. In the United States, consumer
protection laws prohibit foreign-based lenders from offering savings
products to US residents. At the same time, proof of savings is critical
to establish credit for low-income migrants.227 Regulations regarding the
selling of property abroad also vary by state. For instance, in Washington,
DC, Maryland, and Virginia, a mortgage-broker license is the only
requirement to sell properties abroad, while in California the regulations
are less straightforward. Thus, Su Casita, one of SHF’s intermediaries in the
United States, is headquartered in Ohio even though its biggest market is
in California.228

According to the IDB, it is important to ensure that:229
■■Project design adequately reflects regulatory environments.

■■Regulatory frameworks for remittances, for nonbank financial
institutions, and for other areas that might influence a future
project (such as mobile banking) are sufficiently analyzed
before designing project activities.
■■Project strategies do not depend on the regulatory environment
remaining constant over the course of a project, since this is
beyond control.
128
C. Savings-Based Products Are an Important Supplement to
Remittance-Based Financial Products
Migrants need to save money in order to make a down payment

which ensures that migrant mortgage-holders have a high stake in
continuing to make mortgage payments even in the face of an economic
downturn. Successful programs, such as the Philippines’ Pag-IBIG Overseas
Program (see Box 8), have incorporated a strong savings component into
their mortgage programs. This allows migrants access to financial products
that they would otherwise not have.
D. Effective Promotion and Outreach Are Key
The effective promotion of financial products is a difficult but

extremely important component of the effort to magnify the development
benefits of remittances. In the United States, for instance, IDB’s experiences
suggest that various factors can undermine efforts to promote mortgage
products including but not limited to the following:230
■■large size of the country;

■■overabundance of marketing commercials;
■■number of marketed brands;
■■characteristics of the target group (i.e. level of dispersion,
legal status, geographic stability, and level of trust of financial
institutions and authorities).
The lack of legal status among the target group can be a particularly
challenging impediment, since irregular migrants are less trustful of
marketing initiatives and are unlikely to provide information. To address
this problem, Mexico generally involves various government agencies
when promoting transnational mortgage-finance products and providers
among Mexicans in the United States.231

IDB’s experiences in the Americas also point to the value in ensuring
that:232
■■Project activities include the building of alliances with groups

that can help lower marketing costs (such as hometown
associations [HTAs], church groups, migrant radio stations, and
NGOs working with migrants).
■■Projects contain an activity for branding both a product and an
institution.
■■Publicly available databases are created and maintained to
provide information on the location and profile of migrant 129
populations.
■■Sufficient time in the project timeline is allocated to marketing.

E. Creating Alliances with Institutions that Add Value to a
Project Increases Success
From providing financial support to helping to reach new markets,

creating alliances can bring various benefits. In Mexico, for instance, IME’s
participation in the promotion transnational mortgage products, such as
those offered by SHF, contributed to the success of the products. Indeed,
IDB finds that an alliance among a wide range of partners, from builders
and mortgage brokers to NGOs and migrant associations, is crucial in
developing housing markets. BANSEFI’s and its network of rural savings
banks have is years of experience working in rural areas.233 The ability
of partner agencies to leverage funds is also crucial. Mexico’s SHF and
Philippines’ Pag-IBIG have their own funds and can provide counterpart
funding.
F. Innovate and Create New Institutions and Products that

Cater to Migrants’ Needs
Effectively encouraging migrants to use formal banks may require

adoption of innovative means to identify migrants, such as via the issuance
of consular ID cards. Indeed, US financial institutions’ acceptance of the
Mexican matrícula consular encouraged Mexican migrants to establish
bank accounts there.
One other approach is to create innovative institutions that squarely

address migrants’ mistrust of banks. As IDB highlights, the SOFOL, a
Mexican for-profit structure for credit facilities that is not a bank, is an
entirely new financial entity to disperse loans.234

Chapter 7: Direct Investment: Finding and
Attracting Investors in the Diaspora
Remittance flows unquestionably serve as an important lifeline for

millions of families in developing countries and thus have been the focus
of many policy discussions and interventions. However, remittances are
largely used for short-term, daily consumption rather than productive
investments that can fuel sustainable economic growth. Given the
important size of financial flows originating from diaspora populations,
governments are becoming increasingly interested in how to channel
131
such flows to foster entrepreneurship, support innovation, and develop
CHAPTER 7: DIRECT INVESTMENT: FINDING AND

ATTRACTING INVESTORS IN THE DIASPORA
priority sectors of the economy.
One of the biggest obstacles to achieving sustainable growth

in developing countries is a lack of investment. According to Richard
Cambridge, manager of the African Diaspora Program at the World Bank,
Africa requires $96 billion in investments annually if it is to grow its
economy by 5 percent a year.235 In addition to China’s $20 billion annual
investment in Africa, the World Bank provides $8 billion yearly, but the
total still falls short of the necessary amount for sustainable growth. Much
of the remainder could potentially originate from diasporas, with a small
portion stemming from traditional investors.
Diaspora Investments: A Menu of Viable Options
1. Provide access to information

• Share information on how to invest or obtain business loans
• Create a one-stop shop for investment information
2. Provide access to networks

• Organize business events for diaspora members
• Match local entrepreneurs, business owners, and government leaders with their
diaspora counterparts
• Create exclusive international networks of top business leaders
3. Provide access to business training programs

• Supply training directly
• Support training programs provided by the private sector and international
organizations
4. Provide entrepreneurs access to funds

• Set up matching funds
• Provide loans
5. Channel private funds to finance private businesses or public infrastructure.

Lessons Learned and Key Challenges
1. Obtain commitments from institutions and individuals

2. Ensure coordination across partners
3. Plan for unexpected situations
4. Work with experienced partners
5. Take appropriate actions when there are conflicts of interest
6. Assess and monitor projects
7. Look for innovative solutions to old problems.
1 Policy and Program Options
132 Realizing the significant impact that diaspora direct investment

could have on development is an important first step. However,
governments, multilateral organizations, and private actors must then
offer the necessary frameworks, programs, and opportunities to maximize

its potential. There is no magic formula for maximizing the development
impact of diasporas’ direct investment in developing countries.
Governments have taken different approaches to attract various forms of
investment from their diasporas. This chapter outlines five major areas
—access to information, access to networks, access to training, access to
funds, and investment in public infrastructure — in which governments
and other organizations have engaged diaspora populations to contribute
to sustainable development.
A. Provide Access to Information
International investors are normally averse to investing in risky

environments. Diaspora members, however, typically have a somewhat
different risk profile when it comes to investing in their countries of origin.
They may simply have better access to information, or be less sensitive
to exchange-rate risks because they have financial obligations that can
be satisfied in local currency. Much perceived risk, however, arises from
a lack of transparency about local business opportunities. This can be
a significant obstacle to investment by even the most intrepid diaspora
investor.

1. Provide Information on How to Invest or Obtain Business Loans
Many governments, banks, and other organizations now expressly

offer members of the diaspora privileged information on investment
procedures and requirements in their countries of origin, including
information on how to obtain business loans. Bangkok Bank, the largest
commercial bank in Thailand, for example, offers counseling services
for those interested in local investment opportunities.236 Bosnia and
Herzegovina’s Department for Diaspora maintains an enquiry portal for
local investment opportunities.237
2. Create a One-Stop Shop for Investment Information
Some governments maintain websites that serve as a one-stop

133
shop for learning about investment opportunities, requirements, and

procedures as well as about starting businesses in their countries. Box 1
highlights Ethiopia’s approach.
Box 1: Investing In Ethiopia

In November 2010 the government of Ethiopia launched the website of the Ethiopian
Investment Agency (EIA), a government agency established in 1992 to promote private
investment and foreign direct investment (FDI) in particular. An investment board, chaired by
the Minister of Industry, supervises EIA’s activities. The agency’s services include promoting
the country’s investment opportunities and conditions to investors; issuing investment
permits, work permits, trade registration certificates, and business licenses; negotiating and
signing bilateral investment promotion and protection treaties with other countries; advising
the government on policy measures needed to create an attractive investment climate for
investors; assisting investors in the acquisition of land and utilities; and providing investors
with pre- and postapproval services. Its website serves as a one-stop shop for investment
in Ethiopia. It offers information on, among other things, areas available for investment by
Ethiopian nationals, domestic investors, and foreign investors, as well as capital requirements,
income tax exemptions, and information on tariff and customs.
Sources: Ministry of Foreign Affairs, “Basic Information for Ethiopian in the Diaspora,” September 2011, www.mfa.gov.et/
docs/Basic%20Information%20For%20Diaspora.pdf; Ethiopian Investment Agency (EIA), “About EIA,” www.ethioinvest.org/
about_us.php.
B. Provide Access to Networks
In an effort to channel the skills, strengths, and experiences of

diaspora members toward development, governments and private
organizations have established diaspora network organizations. Network
organizations range in nature from informal to structured.

Network organizations offer a variety of ways in which diaspora
members can contribute to development in their countries of origin.
Their activities include, but are not limited to, business networking
events, educational exchange trips, cross-border partnership programs in
priority economic sectors, seminars, and mentorship programs. Below are
a number of examples of how such organizations can engage diasporas in
development.
1. Organize Business Events for Diaspora Members
A number of network organizations offer educational trips and

convene business events for their members. Some organizations are
134 headquartered in destination countries, often in metropolises where

members of the diaspora work and reside, while others are stationed in
countries of origin. Networks can take many shapes and forms: some are
simply online virtual communities of members worldwide, some consist
only of diaspora entrepreneurs, some focus on spurring development in

specific geographic regions within developing countries, and some operate
through local chapters. Others are composed mainly of government
officials and representatives of diaspora umbrella organizations. While
some network organizations require membership fees, others offer their
services for free.
Such organizations tend to receive some form of financial or in-kind

support, from the government of the country of origin (and occasionally
a destination-country government), although not all of them receive such
support when they are first established. The business events they organize
typically focus on strategic or priority sectors set out by the country of
origin, often in consultation with business experts. In addition to business
events, some organizations also facilitate job opportunities through job
search portals on their websites. Boxes 2 and 3 highlight experiences in
Australia and Morocco, respectively.

Box 2: Advance: Connecting Australians in 80
Countries
Established in May 2002 by a group of Australian professionals, Advance is a nonprofit
global network of over 20,000 Australians living in 80 countries and working as scientists,
researchers, artists, musicians, government officers, entrepreneurs, and employees of
Fortune 500 companies and small business owners. Headquartered in New York — with
offices in London, Hong Kong, China, and San Francisco, and local chapters in Boston, Chicago,
Hong Kong, China, London, Los Angeles, New York, Paris, San Francisco, Shanghai, Toronto,
and Washington, DC — it leverages the strong relationships of Australian diaspora members
with business, government, and academia.
Advance receives government support from the Australian Department of Foreign Affairs and
Trade, Australian state governments, and global corporate partners and donors. Membership
is free, and members have access to events organized by Advance that promote Australian
business, talent, and innovation via live events, video conferences, online programs,
webinars, and podcasts. The organization:
• Connects Australian professionals living overseas in eight key industries: academic 135
and research; the arts; financial services; life sciences; media, communications, and
technology; professional services; public and charitable enterprises; and the green

network.
• Offers a web portal with job opportunities, repatriation information, and seminars for
members of the Australian diaspora who wish to return to Australia or migrate to other
countries.
• Offers job listings online submitted by its partners through its Talent Mobility Partners
program.
Most recently, Advance hosted the Advance Emerging Leaders Summit in New Delhi,
India, that brought together Advance network members and emerging leaders to
strengthen relationships between Australia and India, explore redesigning Indian and
Australian entrepreneurial ecosystems, meet the region’s future energy needs and the
challenges of urbanization, and fulfill demands for high-quality international education.
Sources: Advance, “What is Advance?” www.advance.org/en/cms/?16; Advance, “Talent Mobility Partners,” www.advance.
org/en/cms/?28.
Box 3: Creating Networks among Moroccan Diaspora

The German aid agency GIZ, with a €1.6 million grant from the European Union (EU) and the
German Federal Ministry for Economic Cooperation and Development, supported Morocco
in creating a favorable business environment by harnessing the skills and knowledge of the
Moroccan diaspora. The program, Migrations and Développement Economique dans la
région de l’Oriental (MIDEO), lasted from June 2008 to June 2011 and involved chambers
of commerce, regional investment centers, private service providers, and the Hassan II
Foundation, as well as other partner institutions such as the Agency for the Development of
the Oriental region, diplomatic representations of Morocco in Europe, diaspora organizations
in Europe, and other donors.
Among its accomplishments:
• MIDEO successfully established an association of former members of the Moroccan

diaspora who are entrepreneurs in the region.
• Started a process for establishing a federation of female business owners in Al Hoceima
province.

• Promoted the region as destination for ecotourism by organizing the visit of ten German
travel agencies with ties to Morocco. In November 2010 it established the International
Network of Moroccan Skills and Entrepreneurs in Nador (Réseau International des
Compétences et d’Entrepreneurs Marocains à Nador, RICEM Nador) to encourage and
attract foreign investment to help the growth of small and medium enterprises (SMEs)
in the province of Nador. Its 30 members are former members of the Moroccan diaspora
who had studied in Belgium, Spain, Germany, Great Britain, and the Netherlands. RICEM
Nador has developed additional partnerships to encourage economic development in
Morocco by capitalizing on professional and financial networks.
Sources: MIDEO, “Achievements,” www.migration4development.org/content/mideo-%E2%80%93-migration-et-

d%C3%A9veloppement-economique-r%C3%A9gion-l%E2%80%99oriental; MIDEO, “MIDEO,” www.mideo.ma/index.
php?option=com_content&view=article&id=50%3Amideo&catid=16%3Aintroduction&Itemid=48&lang=en; MIDEO, “Asso-
ciation of Former Diaspora Members Founded,” www.mideo.ma/images/stories/RICEM_Nador_-EN.pdf; MIDEO, “Conven-
tion entre l’association ‘Transferts & Compétences” sises à Paris/France (T&C) et le ‘Réseau International des Compétences
et Entrepreneur Marocains’ Nador (RICEM),” April 9, 2011, www.mideo.ma/images/stories/Contrat_RICEM_-_TC.pdf.
136 2. Match Local Entrepreneurs, Business Owners, and Government

Leaders with their Diaspora Counterparts
Another type of diaspora network organization is one that matches

local entrepreneurs or business owners with those in the diaspora.
Some networks rely on seasoned diaspora experts and business leaders
to offer advice to local entrepreneurs on how to start a business and
how to penetrate the global market, and may introduce them to third
parties through their own networks. Others provide services to help
entrepreneurs connect with leaders in government and business in their
home countries. The overarching goal of such organizations or initiatives
is to increase the flows of international trade and foreign investment to
the countries of origin as well as foster local entrepreneurship and create
long-term, strategic alliances with diaspora-connected entities. Box 4
highlights initiatives in Lebanon and the Philippines.
Box 4: Matching Investors at Home and Abroad

The Lebanese Business Network is a nonprofit organization established jointly by the
Georges N. Frem Foundation and InfoPro, a publishing and market research company, to
identify and create links between Lebanese entrepreneurs, expatriates, and international
businesses through an online marketplace and business-matching database. The network
also has a number of resource partners including IDAL, a public investment promotion
agency, the Federation of Lebanese Chambers of Commerce, the Association of Lebanese
Industrialists, and the Subcontracting and Partnership Exchange-Lebanon. Its services are
free and involve business referrals, increased access to international markets, and knowledge
transfer. The goal is to introduce Lebanese entrepreneurs to international businesses so as
to create strategic alliances, joint ventures, and other partnerships; facilitate international
trade; and increase FDI in Lebanon. However, anyone interested in doing business in Lebanon
can have access to the network.
The Business Advisory Circle (BAC) is a network of individuals and organizations that help
prospective overseas Filipino entrepreneurs set up business partnerships in the Philippines.

BAC has a technical working group comprised of business advisers of many government
agencies and nongovernmental organization s (NGOs) including Go Negosyo, the Philippine
Chamber of Commerce and Industry (PCCI), the Department of Trade and Industry (DTI), the
Philippine Franchising Association (PFA), the Women’s Business Council of the Philippines
(WBCP), and the European and American Chambers of Commerce in the Philippines. These
partners offer advice and support to businesses. The Commission on Filipinos Overseas (CFO)
serves as a coordinator between participating organizations and diaspora entrepreneurs and
businesses, providing the necessary directions and referrals to facilitate communication
and partnerships between public, private, and civil society entities. BAC seeks to increase
the design of innovative partnership models, help identify and link business ideas in key
industries, provide assistance in finding funding partners, and work with policymakers in
trade and finance agencies to create a favorable business environment for overseas Filipinos.
Currently, the main goal of the Filipino government is to make overseas Filipinos aware that
such services are available to them.
Sources: Lebanon Business Network, “About Us,” http://www.lbn.com.lb/About; Commission on Filipinos Overseas (CFO),
“Business Advisory Council,” www.cfo.gov.ph/index.php?option=com_content&view=article&id=1352%3Abusiness-advisory-
circle-bac&catid=142&Itemid=68; CFO, “Diaspora to Development (D2D),” www.cfo.gov.ph/index.php?option=com_content
&view=article&id=1359:diaspora-to-development&catid=144&Itemid=864; CFO, “Diaspora to Development: Global Summit
of Filipinos in the Diaspora,” http://d2dglobalsummit.cfo.gov.ph/pdf/business_advisory_circle_workshop.pdf.
137
3. Create Exclusive International Networks of Top Business
Leaders

A number of diaspora network organizations limit membership to
top business leaders and influential diaspora members. These individuals
offer their time to mentorship programs, networking events, and meetings
with government leaders on how to promote economic development in
strategic sectors and regions in their respective countries of origin. By
selecting and bringing together key diaspora members around the world
who work in important growth sectors, these organizations are able to
create and deploy a potentially influential resource for development.
A commonly shared trait among such exclusive organizations is their
focus on public-private partnerships. Government and business leaders
come together to create strategic plans for how to engage diasporas in
development. Such initiatives are found in Scotland, Chile, and Mexico
(see Boxes 5, 6, and 7, respectively).
Box 5: GlobalScot
GlobalScot is Scotland’s diaspora-based framework for promoting economic development.
In 2001 Scottish Enterprise (Scotland’s main economic enterprise and innovation and
investment agency, largely funded by the Scottish government) launched GlobalScot as an
international network of Scottish business leaders and those interested in supporting the
development of the Scottish economy.
GlobalScot’s mission is to market Scotland as an attractive place for investors through its
members, develop new markets overseas, and mentor Scottish businesses at home and
abroad. Since its creation, GlobalScot has helped generate more than £30 million in gross
value added to Scotland. GlobalScot encourages its over 600 members (or “Global Scots”),
all of whom hold senior positions within their respective organizations, to serve on one
another’s boards and to educate others about business opportunities in Scotland and job
opportunities for Scots in global firms — and encourage them to take part. GlobalScot
membership is by invitation only and confers notable prestige on the select few.

GlobalScot offers its services free of charge. In partnership with Scottish Development
International (SDI), the Scottish government, and other agencies, Global Scot helps
entrepreneurs identify business opportunities abroad and offers advice on how to enter
markets, negotiate and broker business deals, leverage finance, establish contacts, make
strategic business plans, and expand business networks. Every year, the network holds at
least 60 networking events. In 2009 it held “Scotland’s Global Opportunity — Great Minds &
Innovation,” its biggest event to date; 106 Global Scots and 233 representatives from Scottish
organizations attended, resulting in 150 one-to-one connections. Reportedly, 70 percent
of GlobalScot attendees and 60 percent of Scottish company representatives attending
identified new business leads. The first GlobalScot Connect event held in the United States,
in November 2010, offered more than 60 US-based Global Scots the opportunity to meet
with Scotland’s promising growth companies. Global Scots have served as mentors to
Scottish students and are invited to speak at schools and universities, offering guidance on
developing skills that are in demand and providing internship placements and employment
opportunities.
Sources: GlobalScot, “GlobalScot: Building International Business Networks for Scotland,” (brochure, Scottish Enterprise,
2011), www.globalscot.com/web/FILES/GlobalScot_Brochure_Web.pdf; GlobalScot, “Getting involved with GlobalScot,”
www.globalscot.com/BecomingaGlobalScot/getting-involved.aspx; GlobalScot, “GlobalScot — Building a Global Network,”
138 www.globalscot.com/AboutGlobalScot/BuildingAGlobalNetwork.aspx.
Box 6: ChileGlobal
ChileGlobal — the Talent Network for Innovation — promotes and facilitates the development
of key economic clusters in Chile by reinforcing their links with Chileans (and some non-
Chileans) residing abroad who are working to introduce innovative technologies to Chile.
Its mission is to support the development of innovation, highly qualified human capital,
and business creation in Chile through the transfer of knowledge, skills, ideas, contacts, and
technology through members of the diaspora, and to help the country play an important
role in the knowledge economy. Members of the network contribute their time, experience,
contacts, knowledge, and skills to help globalize Chilean companies.
Through its network of about 400 registered influential Chileans living in the United States,
Canada, Mexico, Brazil, Argentina, Australia, China, Spain, Sweden, and England, ChileGlobal
designs and finances business projects that introduce innovations in both the production and
services sectors, boost human capital to augment productivity, and promote technology and
knowledge transfers to and from Chile.
This highly exclusive network was founded in 2005 by Fundación Chile, a small public-private
foundation that helps entrepreneurs launch technically innovative agribusinesses in Chile. A
Technical Secretariat runs its day-to-day operations and helps facilitate connections between
its members with counterparts working in academia and the private and public sectors in
Chile. Until 2009 ChileGlobal was located within Fundación Chile and its activities were
supported by Chilean public funds. In 2010 the organization became part of the Fundación
Imagen de Chile, a public-private institution with a mandate to promote Chile’s image abroad.
Given its own limited resources, ChileGlobal relies on connecting existing resources.
For example, it relies on partners such as ProChile (the Export Promotion Agency of the
Ministry of Foreign Relations) and the Chilean Economic Development Agency (CORFO) to
help identify potential members and support member activities, seminars, and workshops.
ChileGlobal has three focus areas: human capital development, support of public policies on
innovation, and business development. To date, it has helped create 76 companies with more
than 50 domestic and international partners (including private corporations, universities, and
institutes of technology), and currently owns a share in 23 of them.
Source: Molly Pollack, “ChileGlobal — Talent Network for Innovation,” Diaspora Matters, May 12, 2011, http://diasporamatters.
com/chileglobal-%E2%80%93-talent-network-for-innovation/2011/.

Box 7: Red de Talentos Mexicanos
Red de Talentos Mexicanos, or the Mexican Talent Network, was founded in 2005 by the
Secretariat of Foreign Relations in partnership with the Institute of Mexicans Abroad (IME)
and the National Council on Science and Technology (CONACYT) and with the financial
support of the US-Mexico Foundation for Science (FUMEC), which now serves as its Technical
Secretariat. Today, the Ministry of the Economy also supports it. While it is an independent
network, it has strong ties to the Mexican government and nongovernment institutions.
Red de Talentos attempts to leverage the resources of its highly qualified diaspora members
to help Mexico develop a knowledge-driven economy. The network members are organized
in regional or local chapters, which independently define areas of interest. The Silicon Valley
chapter, for example, focuses on information technology (IT) while Houston specializes in
biotechnology, health, and energy. The entire network meets at annual conferences to define
key strategic goals and afford members the opportunity to network and share experiences
within their respective chapters. The network promotes ties between Mexico and its highly
qualified professionals living abroad by supporting high-value-added projects in 39 areas of
business development and education. It currently has 11 projects of strategic importance to
Mexico.
Source: IME and United States-Mexico Foundation for Science (FUMEC), Mexican Talent Network: The Institutional Perspective
of Mexico (Mexico City: IME and FUMEC, n.d.), www.redtalentos.gob.mx/images/docsrt/rtmingles.pdf.
139

4. Challenges in Creating and Keeping Diaspora Business
Networks
While diaspora networks can be a useful resource for both

governments and diaspora members looking to strategically develop
economic sectors, start a business, seek investments, or simply build an
influential network, leaders of diaspora organizations have met challenges
in achieving their intended objectives.
When trying to set up a diaspora network, organizers tend

to consider all members of the diaspora as equal. However, some
organizations have found that cooperation with less educated members
of the diaspora may require different forms of engagement than those
that work well with highly educated members. This perhaps suggests that
membership schemes should be selective and more strategic.
Members of the diaspora who work in developed countries and who

are interested in starting businesses in their countries of origin are less
inclined to return permanently but rather prefer to run their enterprises
from a distance.239 This raises the question of whether permanent physical
presence in the country is of utmost importance or whether members of
the diaspora can be effective from afar or as regular visitors. Many highly
skilled individuals hold dual nationality or permanent residence in two or
more countries and can circulate between them with ease.

According to Molly Pollack, director of ChileGlobal, lessons learned
include:240
ÂÂSustaining network organizations over the long term is a challenge;

ÂÂPolitical support at home is needed to respond quickly to shifting
diaspora interests;
ÂÂDiaspora networks should focus on the quality, not quantity, of
their members to achieve high impact;
ÂÂDeveloping partnerships with public and private bodies that
promote innovation is key.
The level of commitment, areas of interest, and availability of

diaspora members to engage with network organizations often fluctuate.
Network organizations must take into account such potential changes and
140 plan accordingly.
C. Provide Access to Business Training Programs

Some governments and multilateral organizations directly provide

training to potential entrepreneurs who wish to start businesses in their
countries of origin or destination. The goals of such training programs and
services include facilitating diaspora contributions to sustainable economic
development through business and job creation, increasing the standard
of living among diaspora communities, and educating the diaspora on
how to write business plans and start businesses. Some training services
simply provide fact sheets about various aspects of starting a business
while others hands offer hands-on training and customized courses for
potential entrepreneurs. Some private organizations —often with the
financial support of governments or multilateral institutions — offer
similar training programs.
1. Provide Training Directly
Several governments — including those of Colombia, Portugal,

Israel, and Brazil (see Boxes 8, 9, 10, 11) — provide programs that train
diaspora members directly.

Box 8: ProMicro
ProMicro was established in April 2010 as a pilot project by the Colombian consulate in
New York with the support of Colombia Nos Une, a development program of the Colombian
Ministry of External Relations, to offer support to small businesses run by Colombians living
in New York and New Jersey. The program has three main components:
• Offer work-related education via the National Service for Training (SENA), an online
education website
• Provide technical assistance and free legal consultations for starting and growing
businesses in the United States
• Provide microcredit for microenterprises.
ProMicro helps Colombians create successful business plans through a network of over 25
private and public partner organizations that provide training, technical assistance, and
capital to small businesses in the United States. To date, the organization has provided
services to 650 members and offered workshops in Queens, Manhattan, and Harlem in New
York City; and in nearby Hackensack and Elizabeth, New Jersey. It is looking to expand its
services to Colombians living in other regions of the United States. 141
Source: Consulado General Central de Colombia en New York, “Que Es ProMicro?” www.consuladodecolombiany.com/index.
php?option=com_content&view=article&id=85&Itemid=97.

Box 9: Promoção do Empreendedorismo Imigrante (PEI)
The Immigrant Entrepreneurship Promotion (Promoção do Empreendedorismo Imigrante,
PEI) program was set up by the High Commission for Immigration and Intercultural Dialogue
(Alto Comissariado para a Imigração e Diálogo Intercultural, ACIDI IP) in Portugal to help
immigrants in Portugal to start their own businesses by connecting them with executives and
entrepreneurs who can offer advice. Established in 2009 with European Union (EU) funding
involving six countries (Portugal, Spain, Italy, Switzerland, Greece, and the Netherlands) to
address financial management of immigrant households and immigrant entrepreneurs, the
program is in its third phase, which will last from 2011 to 2012.
The purpose of the program is to help immigrants acquire the entrepreneurial skills needed to
create sustainable businesses and to connect potential entrepreneurs with entrepreneurship
support programs. The main components of the program include:
• Creating a team of trainers and agents of intercultural mediation for entrepreneurship

• Mobilizing and building the capacity of institutions to promote entrepreneurship
• Educating and training potential entrepreneurs
• Liaising with institutional partners and mobilizing other relevant actors.
PEI also runs a business Ideas Competition open to participants from non-EU countries who
complete its course on business creation. The best three ideas presented at the Business Ideas
Competition win €5,000, €3,000, and €1,000 in prize money to implement the business idea.
The competition is implemented by the ten National Centers for Assistance to Immigrants in
Lisbon and Porto, along with other organizations including training bodies and the National
Association for the Right to Credit.
Sources: Alto Comissariado para a Imigração e Diálogo Intercultural, “Promoção do Empreendedorismo Imigrante,” www.
acidi.gov.pt/es-imigrante/informacao/promocao-do-empreendedorismo-imigrante.

Box 10: Israeli Ministry of Immigrant Absorption
The Israeli Ministry of Immigrant Absorption offers programs and services to assist former
residents of Israel who wish to start or transfer a business in Israel. The Ministry’s Business
Entrepreneurship Department provides business counseling services, training and guidance
for entrepreneurs, business feasibility checks, preparation of business plans, business
mentoring and guidance, tax counseling, and financial assistance for business investments
through its 12 business counseling centers.
Source: Ministry of Immigrant Absorption, “Business and Tax Concessions,” www.moia.gov.il.
Box 11: CAIXA Econômica Federal (CAIXA)

CAIXA is a government-run bank that acts as the main agent of Brazil’s social policies.
Established in 1861, CAIXA became a state-owned financial institution in 1969 and was
attached to the Ministry of Finance and headquartered in Brasilia. It operates through 17,000
service points nationwide, serving 170 million Brazilians.
142 CAIXA and its partner, the Brazilian Support Service for Micro and Small Businesses (Serviço
Brasileiro de Apoio à Micro e Pequena Empresa, SEBRAE), have been working to ensure that
Brazilian migrants in the United States with entrepreneurial capacity receive business training
through SEBRAE’s online training system so that when they return to Brazil with businesses
ideas, they will be able to tap into their savings. SEBRAE is also taking steps to ensure that
remittance recipients in Brazil receive training to start and strengthen businesses.
CAIXA offers support to migrants and their relatives with financial services tailored to their
needs. To date, the program has established a partnership with a US bank, conducted needs
assessments for migrants and their families living in Massachusetts, and developed six
remittance-linked financial products tailored to the target population.
2. Support Training Programs Provided by the Private Sector and

International Organizations
Instead of providing training directly, some governments opt to

support training initiatives in the nongovernmental sector, such as IntEnt
in the Netherlands and Afford in the United Kingdom. Some governments
have also worked in partnership with international organizations such as
the International Organization for Migration (IOM) through its Migration
for Development in Africa (MIDA) program (see Boxes 12 and 13).

Box 12: IntEnt and AFFORD: Inventing Investors in the
Diaspora
IntEnt. Based in the Netherlands, this organization was created in 1996 by Social-Economical
Entrepreneurship in the Netherlands (SEON), FACET BV, and Triodos Bank, at the request
of the former Dutch Minister of International Development, J. P. Pronk. Its purpose is to
stimulate the kind of entrepreneurship among immigrants that will have a sustainable impact
on development in their home countries. The organization offers fee-based support to
diaspora entrepreneurs seeking assistance in developing business plans for implementation
in Morocco, Turkey, Suriname, Ghana, Ethiopia, Curaçao, and Afghanistan. Its services include
providing information about entrepreneurship, orientation sessions and training courses,
counseling, advisory services, market information, referral and mediation, assistance during
and after starting a business in the program countries, networking, management training,
online services, and supplementary financing.
Between 1996 and the end of 2009, IntEnt helped launch 350 businesses, including 50 new
businesses in 2009 alone. In 2009 the organization began to offer its services to immigrants
residing outside of the Netherlands who wished to start businesses in developing countries,
and opened IntEnt-type sister organizations in Suriname, Morocco, and Ghana. That same
year, it received 1,305 information requests from within the Netherlands, conducted 654
intake interviews, enrolled 210 participants in the support course program and 195 in 143
the in-country market exploratory program, and helped start 46 businesses. An extra 40
participants from abroad enrolled in the support course program, of whom ten participated

in the in-country market exploratory program and six started businesses. Together, these
businesses created sustainable investment worth more than €14.5 million and almost 990
jobs. The average IntEnt entrepreneur invested €62,000.
The African Foundation for Development (AFFORD). AFFORD was founded in 1994 by
Africans living in the United Kingdom to help the African diaspora there create wealth and
jobs in Africa. Its main program, Supporting Entrepreneurs and Enterprise Development in
Africa (SEEDA), uses the skills, knowledge, and wealth of the African diaspora to support
SMEs in Africa. Its efforts thus far have focused on entrepreneurship in Ghana and Sierra
Leone. With the support of the UK Voluntary Services Overseas (VSO) Diaspora Volunteering
Initiative, SEEDA has organized five missions to Africa. As of July 2009, 70 diaspora members
had contributed advisory services worth £200,000, to help 800 businesses in Sierra Leone
and Ghana with business planning, marketing, bookkeeping, and access to financial services.
SEEDA has also contributed to the creation of two new business development centers in
Sierra Leone that provide business advice and advocate for a better business environment in
the country. To date, it has invested about USD$400,000 in 800 companies.
Sources: IntEnt, “Services,” www.intent.eu/wat-doet-intent.aspx?lang=en; IntEnt, “English Summary,” www.intent.eu/

indexuk.htm; IntEnt, Annual Report 2009, www.intent.eu/library/File/IntEnt_annualreport_2010.pdf; Kathleen Newland and
Hiroyuki Tanaka, Mobilizing Diaspora Entrepreneurship for Development (Washington, DC: Migration Policy Institute, 2010),
www.migrationpolicy.org/pubs/diasporas-entrepreneurship.pdf.

Box 13: IOM’s Migration for Development in Africa
(MIDA)
MIDA is a capacity-building program implemented by IOM. Two MIDA initiatives — Diaspora
for Development of Cape Verde (DIAS DE Cabo Verde) and the Guinea Project — have focused
on training members of the diaspora to acquire entrepreneurial skills necessary to establish
their own businesses.
Diaspora for Development of Cape Verde (DIAS DE Cabo Verde). This project, which
lasted from 2008 to December 2009, was cofinanced by the European Commission and the
Portuguese government and jointly implemented by the Instituto das Comunidades de Cabo
Verde (IC) and IOM. DIAS DE Cabo Verde encouraged Cape Verdeans residing in Portugal,
Italy, and the Netherlands to contribute to the development of key sectors of the Cape
Verdean economy and improve its investment climate by transferring their knowledge and
skills to professionals in Cape Verde as well as developing entrepreneurial projects with local
partners. The project also promoted the active participation of Cape Verdean public agencies
through counseling of diaspora members in the areas of business creation and investment
opportunities. Cape Verdean diaspora professionals executed 29 training missions, 19 of
which were conducted by those from Portugal, eight from the Netherlands, and two from
144 Italy. In addition, Cape Verdean entrepreneurs carried out nine network missions, three of
which originated in the Netherlands, to explore investment opportunities in Cape Verde.
During these networking missions, 33 Cape Verdeans living in Portugal, Italy, and the
Netherlands and their business partners received advice on investment opportunities in
strategic sectors and on SME creation and management under the support of the Agency for
Entrepreneurial Development and Innovation (Agência para o Desenvolvimento Empresarial

e Inovação, ADEI).
MIDA Women Guinea Project. This project encouraged the creation of microenterprises by
poor rural women. Members of the Guinean diaspora living in West African countries such as
Senegal provided an eight-day training course in creating and managing microenterprises to
60 Guinean women. A partnership was formed with the microfinance institution Rural Credit
of Guinea (RCG), in the course of which RCG was able to ensure small lines of credit ranging
from 300,000 to 650,000 Guinean francs (approximately $155 to $332) on more favorable
terms than other microcredit institutions. In November 2003, RCG gave 56 microcredit
loans to the trainees to create or expand microenterprises, and a year later had received 55
reimbursements. IOM covered all expenses related to the microcredit grants, including fees for
membership, filing, and participation in the solidarity fund and security funds. Three Guinean
diaspora trainers and RCG trainers provided support and advice to project participants. In due
course these enterprises offered employment and the opportunity to acquire new skills or
crafts for the beneficiaries and local population. Research associated with the project revealed
that the methods used in Europe and North America to set up small businesses were less
applicable to rural project locations in Guinea; this insight resulted in reliance on diaspora
members in neighboring countries instead of those residing in the North.
Sources: IOM, “Diaspora for Development of Cape Verde,”; Ndioro Ndiaye, Susanne Melde, and Rougui Ndiaye-Coïc,
“The Migration for Development in Africa Experience and Beyond,” in Diaspora for Development in Africa, eds. Sonia
Plaza and Dilip Ratha (Washington, DC: World Bank, 2011), http://siteresources.worldbank.org/EXTDECPROSPECTS/
Resources/476882-1157133580628/DfD_FullReport.pdf; IOM, Development of Micro-Enterprises for Guinean Women
(Geneva: IOM, 2004), www.iom.int/jahia/webdav/site/myjahiasite/shared/shared/mainsite/projects/documents/mida.pdf.
D. Provide Entrepreneurs Access to Funds
A number of governments and international and private

organizations provide initial startup funding or subsequent capital infusion
in the form of competitive grants, matching funds, or loans at favorable
rates to help entrepreneurs launch their businesses. Funds are rarely
distributed for free and often have ceilings or require matching funds.

Horst and her colleagues find in their review of diaspora initiatives
in post-conflict situations, that although “most mainstream funding
schemes require entrepreneurs to raise some of their funding themselves,”
counterpart requirements for diaspora projects are generally much higher.
Horts and her colleagues highlight the case of a pilot project in Pakistan,
which required diaspora members to put up 50 percent in matching funds.
Contributions, however, may be provided in other forms than cash such as
in a GIZ pilot project, which allows diaspora members to cover as much as
40 percent of that counterpart requirement with voluntary work.241
Governments also offer avenues through which members of

the diaspora can access loans through local banks. Colombia Nos Une,
for example, has partnered with the Colombian Foreign Trade Bank
(BANCOLDEX) to offer lines of credit to diaspora entrepreneurs looking
to start their own businesses. In addition, Colombia Nos Une offers 145
nonfinancial support to entrepreneurs such as working with local
universities to train individuals on business management.

Box 14: Targeting the “Opportunity Entrepreneur”
The role of diaspora entrepreneurship in development goes beyond remittances sent home.
It has the potential to extend along the whole spectrum of human development as it fosters
business development, job creation, and innovation; creates economic, political, and social
capital through global networks; mobilizes social capital through cultural and linguistic
competence; and positively correlates with economic growth.
According to MPI, there are two types of entrepreneurs:
• The necessity entrepreneur who opens a business for survival (such as a stall in
the open market), is self-employed by default, and concentrates in petty trade
or personal services. He/she doesn’t create many jobs and in many cases barely
makes enough to feed the family.
• The opportunity entrepreneur who is filling a gap in the economy and introducing
new forms of production. He/she contributes substantially to economic growth
and often creates jobs outside the immediate family.
Source: Newland and Tanaka, Mobilizing Diaspora Entrepreneurship for Development.
1. Provide Matching Funds
IntEnt. IntEnt facilitates the creation of new businesses by

entrepreneurial and enterprising migrants and primarily offers services
to migrants who wish to set up businesses in their countries of origin.242
In addition to offering training courses, advisory services, and market
information, IntEnt also offers funding for certain projects from its Friends
and Family Fund (FFF), set up in 2009. IntEnt received financing from an

EU program (a joint Hivos-IntEnt project within the Aeneas program) to
set up the FFF to help private-sector development in developing countries.
IntEnt can invest up to €50,000 in an enterprise if:
ÂÂFriends and family of the entrepreneur provide a guarantee for

half of the investment to the fund;
ÂÂThe entrepreneur’s financial plan is approved;
ÂÂThe entrepreneur accepts guidance during the first year after
start-up of his/her business.
Such services help entrepreneurs to overcome credit limitations

and high interest rates at local banks; time-consuming and complicated
bureaucracy; unfamiliarity with local procedures and market conditions;
unstable political, economic, and security environments; and cultural
146 differences.
African Diaspora Marketplace (ADM). ADM was a pilot project in

the form of a business competition held in 2009 and sponsored by the

US Agency for International Development (USAID) in partnership with
Western Union, the world’s largest remittance services provider.243 During
the competition, US-based members of the African diaspora — either US
citizens or legal permanent residents — presented 733 business plans for
SMEs that would contribute to economic development in sub-Saharan
Africa. Applicants were required to have a partner organization in Africa
to help them execute their projects, and to own at least 25 percent of the
proposed company. The goal of ADM was to spur job creation, generate
income, and produce goods and services by offering matching grants to
African diaspora members living in the United States.
Judges were drawn from USAID, Western Union, businesses,

NGOs, and diaspora, development, and academic groups. They evaluated
applications based on the quality of the business idea as well as its
proposed management plan, sustainability, results orientation, and ability
to capitalize on diaspora resources. In January 2010 ADM announced 14
winners who were awarded matching grants of $50,000 to $100,000 to
help fund businesses in seven countries.244 (Winners were required to
match these grants through financial or in-kind contributions.)
The initiatives included a business aimed at increasing production

of school, hospital, and agricultural supplies in Ethiopia and a franchise
business that would offer health care to populations living in rural areas
in Ghana. Some of the companies that were selected included TAF
Biotechnology (Ethiopia), Aceritas Goat Farm (Ghana), Uganda Solar
Ovens (Uganda), Earthwise Ferries (Uganda), Sproxil, Inc. (Nigeria), and

Global Technology and Investment PLC (Ethiopia). Upon receipt of the
grant, winners were allowed 18 months to fully execute their business
plans, and to date all are still operational.245
In November 2011 USAID and Western Union launched the second

ADM, giving entrepreneurs another chance to compete for funding. Taking
into consideration lessons learned from the first competition, the second
competition will focus grants on high-impact sectors in Africa, including
agribusinesses, renewable energy, and information and communication
technology (ICT). Western Union and USAID also intend to invite small
business investment funds and technical assistance mentors to participate
in the effort to engage with diaspora entrepreneurs.246
Development Marketplace for African Diasporas in Europe

(D-MADE). D-MADE was a 2007 World Bank initiative that awarded cash 147
prizes and technical assistance to innovative entrepreneurial African
diaspora groups for projects implemented in sub-Saharan Africa.247

The program received financial support from the Belgian Development
Cooperation, the Dutch Ministry of Foreign Affairs, the German Federal
Ministry for Economic Cooperation and Development (BMZ), and the
French Development Agency. In 2008 the competition produced 16
awardees who each received a €40,000 grant to implement their ideas in
11 African countries (Mali, Côte d’Ivoire, Benin, Burkina Faso, Cameroon,
the Democratic Republic of the Congo, Ethiopia, Madagascar, Malawi,
Sierra Leone, and Togo).248 These innovative businesses, based in Europe,
all involved local counterparts in Africa. Winners were expected to make
financial contributions of 5 to 25 percent of the D-MADE award. (The
Award Team could waive the contribution requirement under exceptional
circumstances.)249 In addition to grants, winners also received customized
technical assistance for their respective businesses and monitoring of
their activities for one year.
El Cucayo. El Cucayo is a competitive matching fund program

run by Ecuador’s government that supports enterprising Ecuadorean
migrants who wish to start a business or expand an existing one and
make it financially profitable. The program, operated by the National
Secretariat for Migration (Secretaría Nacional del Migrante, SENAMI),
offers information and technical advice, training and coaching, provision
of seed capital, and referrals to public banking institutions for accessing
lines of credit. Applicants must possess Ecuadorean citizenship, have lived
abroad for at least a year, not have spent more than 60 days in Ecuador
during the last year abroad, have returned to Ecuador since 2007, and not
have any legal issues that would impede eligibility for the program.

Applicants have several financing options, which are largely
divided into a 50-50 arrangement (where both the applicant and SENAMI
contribute 50 percent to the project) or a 25-75 percent arrangement
(where the individual covers 75 percent of the project and SENAMI 25
percent). For 50-50 percent arrangements, individuals can apply for up to
$50,000 for community business projects (those that involve at least two
migrants and a community organization) or up to $2,500 for individual/
family business projects. Under the 25-75 percent arrangement, individuals
can apply for up to $15,000 for individual or family business projects or up
to $50,000 for associative business projects (those involving at least five
individuals, at least two of whom are migrants).250
Considered a success, the program between 2008 and 2010

148 funded 502 productive enterprises, created 2,051 jobs in Ecuador, provided
technical assistance for the preparation of 642 business projects, and
trained 4,329 people in productive social investment.
2. Provide Loans
Ministry of Immigrant Absorption (Israel). The ministry offers

programs and services to assist former residents of Israel who wish to
start a business in Israel or transfer one to the country. Two types of loans
are available for opening businesses: the State-Guaranteed Small Business
Assistance Fund (of the Ministry of Trade, Industry, and Labor) and the
Fund for the Self-Employed Immigrant (of the Ministry of Immigrant
Absorption).251 An individual can only apply for a loan from the Fund for
the Self-Employed Immigrant252 one time. The loan approval process is as
follows:253
ÂÂThe business counselor transfers the business plan and his

recommendations to the fund committee;
ÂÂThe committee examines the business and determines the amount
of the loan;
ÂÂThe committee determines the guarantees and securities required
from the entrepreneur;
ÂÂThe committee refers the entrepreneur to a partner bank of the
Ministry of Immigrant Absorption to realize the loan.
Returning citizens as well as immigrants (most of whom are seen

as members of the Jewish diaspora) and, under some circumstances,
children of immigrants, are eligible for these loans.

E. Channel Private Funds to Finance Private Businesses or
Public Infrastructure
A number of private and public-private initiatives channel private

funds into developing both private businesses and public infrastructure
projects. Such programs range from those that offer opportunities to
invest in selected businesses in developing countries to those in which
governments and private corporations match incoming remittance flows
with government and private funds to finance public infrastructure projects
such as building roads, power plants, and schools. Unlike programs that
offer diaspora entrepreneurs direct access to grants, loans, or business
training for their own entrepreneurial activities, these targeted investment
approaches leverage the financial capital of members of the diaspora
by channeling it into the businesses and infrastructure development in
countries of diaspora origin. 149
In recent years, however, public-private partnership programs

— such as Inter-American Development Bank (IDB) efforts to pool
investments from hometown associations (HTAs) and the Mexican Tres
por Uno (3x1) program, which channel pooled investments into public
infrastructure projects — have been criticized for not focusing enough on
creating businesses and jobs but rather investing in things for which the
government should take responsibility. Governments are now realizing
the need to shift their focus to creating SMEs and jobs. Boxes 15 and 16
highlight examples of programs that are attempting to meet this need.
Box 15: Homestrings: Diaspora Investment Platform

Homestrings is an investment platform for diaspora and other investors around the
world. Established in 2011 by US investor Eric-Vincent Guichard (who grew up in Guinea),
Homestrings researches and assembles investment opportunities, all of which have at
least a 66 percent chance of producing positive investment returns for the diaspora. It
offers investors opportunities to invest a minimum of £5,000 in funds, projects, and public/
private partnerships. Its collaborators include financial institutions and private equity funds
(including Actis, the Small Enterprise Assistance Funds [SEAF], the Summit Development
Group, Ecobank, Insparo Asset Management, and TLG Capital) that manage investment
portfolios in developing and emerging markets. Homestrings does not allow individuals who
have a net worth of under $1 million or those who have not had an annual income of at
least $200,000 individually or $300,000 with a spouse for the preceding two years to invest
through its platform.
Sources: Renee Horne, “Investor vs. Entrepreneur — Who Makes the Most Impact? The Case of the Africa Diaspora,” World
Entrepreneur Society, June 28, 2011; Homestrings, “Preferences,” https://www.homestrings.com/Login?ReturnUrl=%2fMe
mber%2fPreferences; AllAfrica.com, “Online Product to Help Diaspora Invest at Home,” July 27, 2011, http://allafrica.com/
stories/201107280606.html.

Box 16: The Liberian Diaspora Fund
The Khana Group and the Liberian Professional Network (LPN) established the Liberian
Diaspora Fund to channel remittances from the diaspora toward investments in SMEs in
Liberia to help fight poverty and create jobs in a sustainable manner. The Liberian Diaspora
Social Investment Fund is owned and managed by Liberians and allows members of the
diaspora to invest in designated businesses and sectors of the economy. The sectors in which
it invests include: agribusiness, fisheries, natural resources, technology, infrastructure, and
health care. Its performance measures are poverty reduction and job creation. To create
a shared-risk arrangement, 75 percent of the fund originates from the diaspora, while the
remaining 25 percent investment comes from multilateral organizations, the US Overseas
Private Investment corporation (OPIC), the World Bank, USAID, and other sources. In addition
to providing investment to entrepreneurs, the fund also offers training in critical business
skills, accounting, and marketing to entrepreneurs and mentorship by pairing entrepreneurs
with experts.
Source: Liberian Diaspora Fund, “Overview,” http://liberiandiasporafund.org/about_us.htm; Liberian Professional Network

Strategic Plan 2011 & Beyond, www.liberianprofessionalnetwork.org/files/LPN_Strategic_Plan_2011_Beyond.pdf.
150
3x1 para Migrantes. Established in 1999 as a new iteration of
its predecessor — the Dos por Uno (2x1) program involving the state
government of Zacatecas and the Mexican federal government — the
Mexican Tres por Uno (3x1) program has made a real difference in
empowering migrants and promoting local community development.
Every dollar contributed by a diaspora member through a dedicated
Mexican HTA abroad is matched by a dollar each from the municipal,
state, and federal governments. As of December 31, 2010, the 3x1
program operated in 28 of the 31 states of Mexico,254 and had approved
2,488 projects including 874 urbanization and paving projects; 571
potable water, drainage, and electricity projects; 359 education, health,
and sports projects; 332 productive projects; and 56 rural road projects.255
In 2010 total financing from migrant associations and local, state, and
federal governments reached over 1,192.8 million pesos (approximately
$100 million).
To focus on social infrastructure projects, the federal government’s

Social Development Secretariat (Secretaría de Desarrollo Social, SEDESOL)
has a financial limit of 800,000 pesos per infrastructure, equipment, or
community service project (25 percent of total project costs), and a 300,000
peso limit for productive (job- and tax-creating) projects (50 percent of total
project costs). For projects concerning the former group, the government
can, after obtaining approval from the Committee on Validation and
Attention toward Migrants (COVAM), increase the limit depending on
the size and social impact of the project. In general, projects are divided
into six main categories: education, health, and sports; potable water,
drainage, and electricity; roads and highways; culture and recreation;
urban improvement; and productive community projects.

Box 17: Cuatro-Por-Uno: Making Public-Private
Partnerships Work
Hoping to build on the success of the 3x1 program, in 2005 money-transfer giant Western
Union announced the 4x1 program — a mechanism through which Western Union (the
first private-sector participant in the program) provides the third layer of matching funds in
addition to local, state, and federal governments in Mexico. Its initial program was launched in
the state of Zacatecas in 2005, where it donated funds for eight projects. It pledged matching
funds of $1.25 million, with $250,000 earmarked for each participating Mexican state. The
types of job-creating projects that qualify for funds include agricultural infrastructure, natural
resources conservation efforts, and community-based economic development projects such
as structural improvements or technical upgrades to existing small businesses, educational
facilities, and health care centers. However, HTAs must apply to Western Union for matching
funds for development projects in Mexico. In 2008 Western Union funded an additional 21
projects in Zacatecas, Veracruz, Guanajuato, Michoacan, and Guerrero.

Some have voiced criticism that the transaction costs charged by money transfer organizations
151
such as Western Union are too high. Giving back to the communities from which they draw
their profits through programs such as the 4x1 program sends a positive message to Mexican
immigrants in the United States and their relatives in Mexico.
Sources: SEDESOL, Subsecretaria de Desarrollo Social y Humano, Dirección General de Seguimiento, Cuarto: Informe

Trimestral 2010 H. Cámara de Diputados: Programas de Subsidios del Ramo Administrativo 20 (Mexico City: SEDESOL, 2011),
www.sedesol.gob.mx/work/models/SEDESOL/Resource/1558/1/images/Cuarto_Informe_Trimestral_2010_Anexos.pdf;
Western Union, “Western Union Expands Initiative to Promote Community, Economic Development in Mexico; Mexican State
of Michoacan the Second State to Benefit from 4x1 Program,” (press release, June 23, 2006), http://ir.westernunion.com/
phoenix.zhtml?c=203395&p=irol-newsArticle_Print&ID=1429994&highlight=.
GIZ Pilot Project. In 2007 the German International Development

Agency (GIZ), on behalf of the German Federal Ministry for Economic
Cooperation and Development (BMZ), created a three-year pilot project
to engage diaspora organizations in Germany in the joint implementation
of social infrastructure programs that contribute to development in their
countries of origin. The project offered cofinancing of investments.256 The
pilot’s goals were to identify preconditions for successful cooperation
with diaspora communities and provide criteria for the practical design
of a cooperation arrangement with these communities for nonprofit
activities.257
Among the joint GIZ-diaspora organization partnership projects

implemented are:
ÂÂThe Afghan Bedmoschk Solar Center, which created solar and wind
plants to provide energy and light to 12 extended households in
Afghanistan. Two men from the village received vocational training
on how to maintain the energy stations.258
ÂÂAfghanisch-Deutscher-Ärzteverein (ADAV) e.V., a migrant
organization in Germany that, with the support of GIZ, has been
training Afghan physicians through the transfer of skills. ADAV
organized an advanced diagnostic sonography course for physicians,

including five women, from the southern and southwestern
provinces of Afghanistan. The course allowed participants to offer
patients diagnostic sonography in their respective localities. ADAV
plans to continue offering such courses.
ÂÂKasser e.V., an immigrant organization in Hamburg that, in
partnership with an Afghan engineering firm and a local
construction company, helped build a girls’ school in the town
of Herat, Afghanistan. The local school authority administers the
school and is responsible for all expenses and salaries. Operational
since 2008, the school has ten classrooms, a faculty room,
and a library serving more than 200 girls from disadvantaged
families. Kasser e.V. is equipping the library and offering teaching
materials.259
152
Governments, multilateral institutions, private corporations, state-

owned and commercial banks, nonprofit organizations, and diaspora
institutions, each with their comparative advantages and areas of
expertise, play an important role in leveraging diaspora contributions to
development. This chapter discussed five ways in which governments and
other organizations have engaged diasporas in development: by providing
access to information, access to networks, access to training, access to
funds, and by directing investment to public infrastructure.
While the highlighted initiatives have all made valuable contributions

to engaging diasporas in development, they have also faced their fair
share of challenges. This section lays out a few of the key challenges and
lessons learned from their experiences.
A. Obtain Commitments from Institutions and Individuals
ÂÂFind partners whose social mission is to help disadvantaged

or inexperienced individuals. Many organizations, particularly
private for-profit corporations (including commercial banks),
can be reluctant to participate in development-related projects
involving the diaspora. Banks, for example, might consider low-
income individuals with little business background or financial
capital as a risk not worth taking and thus refuse to offer them
loans and other banking services. However, as IDB finds in the
case of Brazil’s CAIXA , some banks and organizations have a social

mission of working with the “base of the pyramid” and believe
in training migrants to be future business leaders. Without buy-
in from institutions, projects that aim to help members of the
diaspora start businesses or invest in development could prove
unsustainable.260
ÂÂBuild strong institutions with a long-term perspective. According

to Molly Pollack, director of ChileGlobal, some of the key lessons
learned in building a diaspora network organization include: (1)
the need to think long-term about how to sustain a network
organization; (2) the need to obtain political support at home to
be able to respond quickly to shifting diaspora interests; and (3)
the relative advantages of having a select membership rather than
open membership for achieving high impact.261 Competitions for
business grants hosted by the World Bank and other organizations 153
have been successful in producing a number of promising
businesses run by members of the diaspora that can contribute

to sustainable development in their countries of origin. However,
these competitions tend to have high overhead costs, and seem
to be limited in their reach; those who do not win funding must
look for opportunities elsewhere. Governments and international
organizations should first determine whether such funding
schemes effectively create sustainable businesses that contribute
to development at a reasonable cost and, if so, determine how
best to sustain such programs.
B. Ensure Coordination among Partners
ÂÂCreate a one-stop shop for diaspora entrepreneurs. Many

organizations offer information or services about investment
opportunities, entrepreneurship, and business partnerships.
However, they tend to act in an individual capacity, lacking overall
policy coherence, vision, or strategy. Governments, through
their respective diaspora affairs departments, could establish a
one-stop web portal that provides the information the diaspora
needs to know about business start-up, investment opportunities,
available business consultations, average remittances fees, taxes,
permits, capital requirements, loans, and the like. Other useful
information could include links to diaspora network organizations,
training institutes, banks, or international organizations with which
governments have partnerships.

ÂÂDefine the government strategy and policy framework for
engaging the diaspora. Such a policy, for example, might clarify
whether it is promoting and supporting entrepreneurship among
members of the diaspora abroad or trying to attract investments
and current or future entrepreneurs to their countries of origin.
One way of ensuring that potential businesses will meet the
priorities and objectives of national development is to define
key industry sectors in which to promote diaspora investment.
Setting such parameters can help governments communicate
their economic priorities to members of the diaspora, and thus
stimulate entrepreneurial activity in the areas where it is needed
most.
ÂÂDefine partners’ tasks before and while implementing projects.

154 When implementing projects that involve multiple institutions,
coordination across partners is paramount. The alternative is
duplication of efforts, wasted resources, and slow or even failed
implementation of programs. All parties involved in an initiative

should clearly outline and understand their individual roles and
expectations during both the planning and project implementation
phases.
ÂÂMobilize relevant resources from both the public and private

sectors. Governments in countries of origin and destination,
multilateral agencies, diaspora communities, private businesses,
and a wide range of civil society organizations all have resources
to contribute to development efforts. An emphasis on building
partnerships among the many stakeholders is good practice for
development generally, and diaspora engagement in particular.
C. Plan for Unexpected Situations
ÂÂPlan for unfavorable circumstances. Unexpected external factors,

such as a financial crisis or a natural disaster, can influence the
scale and effectiveness of any project. When CAIXA was looking for
partners in US banking institutions, it faced difficulty in getting buy-
in from US banks impacted by the global financial crisis; after many
failed efforts it finally succeeded in establishing a partnership with
a US bank, but its intended timetable was disrupted.
ÂÂThink strategically about what segments of the diaspora

population to engage first, and how. Quality may be more
important than quantity when trying to create an influential

network able to gain the ear of a policymaker and inform policy
decisions. On the other hand, political credibility and broad
commitment may require a grassroots mobilization effort among
diaspora members.
D. Work with Experienced Partners
ÂÂKnow your partners well. One of the key lessons that GIZ learned
while carrying out its projects with various diaspora organizations
was that government agencies and other institutions that
offer support to such groups should know their partners well
prior to establishing any cooperation agreement. For example,
governments should first understand the skills and capacities
of diaspora organizations, and establish whether members
have enough time and organizational resources for effective
155
engagement. They would do well to grasp underlying political

relationships and diasporas’ level of communication with origin-
country governments and local actors in the private and nonprofit
sectors. They must assess claims of various diaspora organizations
to represent the broader diaspora community and make difficult
trade-offs between inclusiveness and manageability of interaction
with diasporas. In addition, destination-country governments
should also find and engage appropriate public-sector partners in
countries of origin and agree on mutual objectives. Importantly,
governments and other institutions that offer support should
ensure that diaspora organizations have a sense of ownership of
any projects that are implemented.
ÂÂWork with partners that have a proven track record and good
knowledge of the local business environment. While many
organizations may wish to play a part in projects aimed at leveraging
diaspora resources and energies, not all of them are in a position
to offer high-quality, beneficial support. Institutions chosen for
projects under competitive funding schemes, for example, should
have a proven track record in providing services such as quality
business counseling, training, or organizing and sustaining diaspora
networks. At the same time, however, governments should find
ways to build the capacity of less experienced organizations so
that they can become capable partners.
ÂÂWork with partners that understand the specific needs of local

and diaspora communities. While many organizations may be
willing and able to offer generic business training or conduct skill-

transfer projects, not all of them may understand local needs.
For example, the MIDA Women Guinea Project invited diaspora
members from West African countries instead of those living in
Europe and North America to train local women on how to start
SMEs, which allowed for the transfer of more relevant information.
Finding the right partners can make the difference between
success and failure in creating sustainable businesses. Multilateral
institutions, for example, can use their relationships with local
organizations to help facilitate access to credit for local banks that
offer microloans to small and medium-sized enterprises.
ÂÂOutsource tasks to optimize costs and efficiency. It is unrealistic

for a single organization to provide comprehensive resources and
services to members of the diaspora. Offering targeted, high-quality
156 services often requires governments and other large institutions
to find appropriate partners that can do a better job of offering
programs tailored to meet the needs of particular partners. This
makes sense both from a practical and financial point of view.
E. Take Appropriate Actions When Conflicts of Interest Exist
ÂÂMake informed decisions where there are conflicts of interest.

Donors should make informed decisions about whether to
provide support for projects that involve conflicts of interest.
For example, for-profit financial institutions have a vested
interest in providing business and financial literacy training;
unrepresentative diaspora organizations may try to capture
the benefits of a project for a narrow group. In such cases,
governments can rely on due diligence information-gathering
and negotiation with partner organizations to make the best
judgments they can about a fair disposition of resources.
F. Assess and Monitor Projects
ÂÂPublic and private organizations should closely monitor

outcomes. Organizations that offer competitive grants or loans
to service providers should continually assess and evaluate their
programs. Service providers also have an incentive to closely
monitor results and use a variety of indicators to measure
the impact of programs: effective services lead to sustainable
businesses, and, in some cases, to funding from government
institutions. Private and public institutions providing business and
entrepreneurship training should also consistently monitor and

evaluate outcomes to learn how to strengthen their programs and
improve services. Some useful indicators to evaluate outcomes
include: data on the nationality, gender, age, and educational
background of those benefiting from projects or programs; the
number of businesses created as a result of the program; the
longevity of businesses created or strengthened, the number of
new businesses that received financing; the number of business
clubs or networks created; and the number of advisers and trainers
active locally.
ÂÂAdjust services according to evaluations. Monitoring and

evaluation can provide important insight on the types of courses
(online, in-person, workshops, technical assistance, skill transfers
through professional exchanges or reintegration schemes, etc.)
that are most effective in supporting aspiring entrepreneurs to 157
realize their business goals. Programs that have had minimal impact
on creating sustainable businesses could be reconsidered while

those that have produced positive results could be reinforced.
Institutions that offer services in more than one country should
ensure that local partner institutions meet their standards and
offer the same content and level of service as they do.
G. Look for Innovative Solutions to Old Problems
ÂÂUse innovative financial instruments to fuel sustainable

development. In addition to providing business training
and investment opportunities to members of the diaspora,
governments, multilateral institutions, and private entities should
think creatively about how to further leverage the resources that
diasporas have to offer. A variety of innovative funding mechanisms
can channel investment to basic public infrastructure projects and
social services. These include diaspora bonds, securitization of
future remittance flows, public grants, and public-private matching
fund programs.
ÂÂAdopt a whole-of-government approach to engage diaspora

resources. Dedicated cofinancing development programs have
a proven track record of directing resources toward public
infrastructure projects and social services. One strength is that
these programs adopt a whole-of-government approach involving
multiple ministries and levels of government to inform migration
and development policies and identify synergies. However, one
challenge they have yet to overcome is how to encourage more

investment in productive areas, such as the creation of small
and medium-sized enterprises that can stimulate job growth.
Meanwhile, some criticize programs that use remittances to invest
in public infrastructure because they see provision of infrastructure
as a government responsibility. In response, some policymakers
are shifting their focus to the use of remittances and matching
funds toward job creation and entrepreneurship.
ÂÂInformation technology (IT) is a key factor of success, and projects

that built capacity in this area are more likely to be successful.
Securing the appropriate hardware and software is essential for
businesses to be able to track client preferences; secure real-
time information about market prices; analyze the risk factors of
loans; communicate between branches, across borders, and up
158 and down the value chain; demonstrate products to potential
clients tracking loan application processes; accept payments on
loans; allow clients to access information about their accounts,
and perform countless other business processes. This is an area

where experienced consultants add great value, given how quickly
information technology evolves.
ÂÂIn choosing businesses to support, knowledge of the local

context is important, not just a business plan. In the EU Return
of Qualified Afghans (RQA) program, IOM indicated that beyond
an assessment of the merits of the applicants’ business plan,
IOM sought out applicants who presented themselves as adept
in anticipating and solving problems that they might encounter
in Afghanistan. Most beneficiaries selected for grants were well-
prepared and resourceful. But in one instance, a grant recipient
apparently assumed that reliable city electricity would be available
by the time his computer courses commenced, and budgeted
nothing for a stable generator; his business failed. But examples
like this, where EU-RQA grant recipients were clearly unaware of
existing market conditions, were rare.262 Based on the low rate
of business closures per business surveyed (2 out of 8), IOM’s
strategy of choosing candidates with good qualifications to run a
business was a success.

Chapter 8: From “Return of Talent” to
“Brain Circulation” to “Virtual Return”:
Evolving Ideas on the Transfer of Human
Capital
In today’s world, a country’s competitiveness in the global economy,

its productivity, and economic growth depend on a workforce whose skills
and knowledge are constantly upgraded. But many countries do not have
educational systems capable of meeting this challenge and many others
see their most highly skilled workers emigrate to modern innovation hubs
where practitioners, engineers, scientists, and inventors come together
and work both collaboratively and competitively. Indeed, many countries
159
are isolated not only from global flows of trade and capital but from the
CHAPTER 8: FROM “RETURN OF TALENT” TO “BRAIN CIRCULATION” TO

“VIRTUAL RETURN”: EVOLVING IDEAS ON THE TRANSFER OF HUMAN CAPITAL
knowledge and technology that make these possible.
Recently, however, concepts such as “brain gain,” “brain bank,”

“brain trust,” and “brain circulation”263 have gained currency, signaling a
growing interest in finding ways to use the skills and experience of the
diaspora to fill knowledge and skills gaps in their countries of origin.
Backed by forward-thinking policies, these concepts are helping to attract
skilled emigrants and their descendants to endeavors in their countries of
origin — where they deploy their professional skills as teachers, mentors,
research directors, or simply practitioners who perform services in return
visits.
Transferring Human Capital: A Menu of Viable Options
1. Engage diasporas as practitioners to fill resource and knowledge gaps

• Ask diasporas to volunteer their time and expertise
• Offer material and nonmaterial incentives in exchange for services
• Administer “return” programs in partnership with private actors
2. Engage diasporas as partners

• Support collaborative research between diasporas and local actors
• Connect communities across national borders through twinning arrangements
3. Engage diasporas as members and leaders of scientific and technical networks.

Lessons Learned and Key Challenges
1. Adopt a demand-driven approach

2. Map the pool of potential participants at the outset
3. Offer adequate incentives to attract the targeted diaspora population
4. Prepare for the fact that diasporas may not always be fully aware of or up to date with
the prevailing local context in their countries of origin
5. Create special bodies or posts to facilitate implementation
6. Invest in an appropriate timeframe
7. Ensure meaningful participation of key stakeholders
8. Invest in an effective, multiprong outreach strategy
9. Monitor the implementation of projects
10. Engage the private sector
11. Ensure efficient infrastructure at destination to make innovative programs effective.
1 Programs and Policy Trends
Ideas on the best means to transfer human capital have evolved

160 through time. They generally fall into three broad categories. Governments
have engaged members of diasporas as:
ÂÂPractitioners who fill critical resource and knowledge gaps directly

via permanent, temporary, or even virtual return of migrants.
ÂÂPartners who support local individuals in a long-term exchange of

resources and knowledge.
ÂÂMembers of scientific, technical, and business networks with

whom potential research, business, and investment opportunities
in the origin country can be developed.
A. Engage Diasporas as Practitioners
Many of the earliest programs to engage diasporas attracted

members back to their countries of origin as practitioners who would
directly fill critical resource and knowledge gaps via permanent, temporary,
and even “virtual” return.
1. Ask Diasporas to Volunteer their Time and Expertise
Some programs appeal to the altruism of the diaspora and provide

few, if any, incentives. Dominica, for instance, asked members of its

diaspora to help set up Dominica State College, a tertiary education
institution. US-based Dominicans who held management positions at US
universities were tapped to develop the university’s curriculum, build its
structure, and orchestrate its launch.264 All offered their services free of
charge.
Similarly, in 2007, the Canadian University Service Overseas and

Voluntary Service Overseas Canada (CUSO-VSO) started a volunteer
program to engage the Guyanese diaspora in Canada. The program is
designed to build on the work of the Canada-Guyana Teacher Education
Project (CGTEP), an association of retired teachers of Guyanese origin.265
Since the 1980s, CGTEP has been organizing teachers of Guyanese origin
residing in Canada for summer volunteer work in rural areas of Guyana to
train teachers and expand educational opportunities.
Eritrea encourages diaspora members to come back and provide

medical services ranging from developing medical schools to providing
treatment and conducting surgery. According to Hanna Simon of the
Department of Eritreans Abroad, returnees typically have already worked 161
for several years in Eritrea. They return, usually in groups in the case of
doctors, and stay for several years. Eritrea works closely with the Eritrean

Mission in Germany and, with the help of diaspora associations in the
United States and Cuba, recently opened a medical school.266
2. Offer Material and Nonmaterial Incentives in Exchange for

Services
While countries of origin can harness the power of volunteers,

most “return-of-talent” initiatives, however, include both material
and nonmaterial incentives. Governments typically identify successful
individuals and then try to persuade them to return to conduct research
or establish their own firms by offering to cover their moving costs, top
up their salary, subsidize their mortgage if they purchase a new house,
provide start-up funds or subsequent capital infusions for their businesses,
and the like.267 The approach is not new. The Taiwan Province of China
pioneered this approach as early as the 1960s (see Box 1).

Box 1: Engaging the Taiwanese Diaspora
Since 1960, Taiwan Province of China has recruited scholars in the diaspora by providing them
various incentives such as a travel subsidy (which can cover airfare and related allowances
to returning scholars and their dependents) and job placement assistance. Such incentives
are offered through its National Youth Commission (NYC), a cabinet-level government office.
The efforts intensified over time, and by the 1980s the authorities were offering significant
incentives to persuade experienced diaspora members to start second careers in Taiwan
Province of China. These included salaries on par with those abroad, subsidies for housing
and children’s education, and a working environment with state-of-the-art facilities,
instruments, and equipment.
In 1980 the Taiwanese authorities also opened the Hsinchu Science-Based Industrial Park,
whose goal was to replicate the dense concentration of creative expertise found in California’s
Silicon Valley, where many experts of Taiwanese origin work. The authorities provided a
planned infrastructure for companies, including incentives such as subsidized Western-
style housing, schools, and commercial services. More important, Taiwan Province of China
offered venture capital funding to innovative diaspora-owned businesses. The complex has
been extremely successful. An attractive destination for both foreign and diaspora-owned
high-tech companies, by 2000, Hsinchu employed 102,000 people and generated $28
billion in sales. US-based Taiwanese owned 113 of the park’s 289 companies that year; 70
maintained companies in Silicon Valley as well. Returnees were highly educated, with nearly
500 of them holding PhDs.
162 Sources: Kevin O’Neil, “Brain Drain and Gain: The Case of Taiwan,” Migration Information Source, September 2003,
www.migrationinformation.org/Feature/display.cfm?ID=155; AnnaLee Saxenian, The New Argonauts (Cambridge: Harvard
University Press, 2006); AnnaLee and Jinn-Yuh Hsu, “The Silicon Valley- Hsinchu Connection: Technical Communities and
Industrial Upgrading,” Industrial and Corporate Change, 10 (4); Shirley L. Chang, “Causes of Brain Drain and Solutions: The
Taiwan Experience,” Studies in Comparative International Development, 27 (1): 27-43.
Others followed suit. In China, a service center for returnees was

set up in 1989, providing allocations for housing, duty-free purchases
of computers and automobiles, and offers of return airfare for self-
financed students.268 Since the 1990s a number of science parks, special
development zones, and high-tech complexes have been established in
China’s capital city, Beijing, as well as in most Chinese provincial cities.
Between 1994 and 1998, Jamaica implemented the Return of Talent

Programme, which offers an array of generous financial incentives to lure
returnees. These include a one-time reentry subsidy, a monthly salary
subsidy, one-way airfare for the candidate and his or her immediate family,
up to 50 percent of the cost of shipping of household goods, two years of
medical and accident insurance, and even provision of the instruments
and literature needed for the candidate’s work.269
Likewise, in Uruguay, the Sectoral Commission of Scientific Research

(CSIC) was founded in 1990 at the University of the Republic. Specific
initiatives included a program for hiring scientists that gave preference to
returnees, as well as an economic support program to facilitate returnees’
adjustment to the university environment.270

Following the end of dictatorship in Argentina in 1983, the
government spearheaded measures to encourage the return of exiles and
build links with expatriates who could help in the country’s development
efforts. In addition to this general policy, the National Council of Scientific
and Technological Research (CONICET) implemented specific return-
related efforts for the diaspora such as subsidizing airfare as well as the
moving and setup costs of returnees and their immediate families.271
Other origin countries, such as Croatia and Thailand, have also

recognized the importance of offering attractive benefits to lure back
their diasporas. According to Alessia Pozzi, although Croatia has what she
considered a “good scientific community,” it is not on par with those in
Germany and other developed countries in Europe.272 Croatia is therefore
offering attractive financial instruments to encourage local research
institutions to upgrade their facilities. Likewise, the Thai government is
aware that its current incentive package under the Reverse Brain Drain
program is not competitive enough for many prospective participants.
According to Noppawan Tanpipat, the government is working to improve
the program in order to recruit the talent the country needs.273 163

3. Find the Best Mix of Incentives
How do countries come up with the best mix of incentives — that

is, a package that can attract the targeted diaspora without incurring
the resentment of local actors? As the International Organization for
Migration (IOM) inspector general put it in the context of the Migration
for Development in Africa (MIDA) program, “migrants are to a certain
extent already privileged and ... should not be the beneficiaries, but rather
the investors.”274 Most practitioners now believe that paying diaspora
members three to four times as much as locals is unfair.275 From the very
beginning of the MIDA Great Lakes program (2009–12), for instance,
experts have undertaken assignments on a voluntary basis and receive a
subsistence allowance to cover their daily expenses.276
As Box 2 shows, it is important to devise an incentive package that

is appropriate to the local situation. What works in one place will not work
in another. In some locations, members of the diaspora may be “viewed as
having fled from a difficult regime or hard economic conditions to live an
easy life.” Thus, as University of Sussex migration expert Ronald Skeldon
puts it, those who stayed behind may not necessarily welcome them back
“with open arms.”

Box 2: When Are Incentives Appropriate?
When China started courting its diasporas in the early part of the 1990s, observers noted that
the country created a great deal of bad blood between returnees, called the “returning sea
turtles faction,” and those who never left, or the “land turtles faction.” In 2006 David Zweig
wrote, “The decision of units to favor ‘outsiders’ who have studied overseas over long-term
members of their unit who have not been abroad has been criticized as ‘giving up a son to
get a son-in-law’.
Luo Keren, Fei Guo, and Huang Ping also noted this problem in China, arguing that the special
treatment returnees enjoyed, while a useful way to entice them back home, also created
tensions between returnees and their local counterparts.
In-depth interviews conducted by Dovelyn Agunias with scholars in China suggest, however,
that locals have changed their view of returnees of late.
Henry Wang, president of the largest government-sponsored Chinese returnee organization,

and Biao Xiang and Hongxing Cai, both academic researchers, have found that tensions eased
for various reasons. For one, the quality of returnees has improved in recent years. Local
researchers see the diaspora members less as competitors and more as partners who can
bring financial resources and knowledge to the table. The distinction between land and sea
turtles is also beginning to blur as local talent can now leave China more easily to attend
international conferences, seminars, and short-term exchange programs. Finally, more
164 returnees are deciding to stay in China, especially in the business sector. As can be expected,
these new arrivals are more receptive to diasporas than those who never left.
The aggressive and competitive packages discussed in length later (See Box 4) that the
Chinese government currently provides must therefore be seen in the context of a rapidly
changing China. Other countries may choose to take a different route. Croatia, for instance,
found that tensions between local and diaspora scientists are limited if parallel programs
exist that help local scientists compete for national and international funding. Interestingly,
an increasing number of local Croatian scientists are finding that collaborating with well-
respected diaspora members has increased their chances of getting additional funding,
especially from private sources.
Further, governments must ensure, at the very least, that returnees are qualified for their
jobs and do not displace local workers or existing businesses.
Sources: Interviews of Henry Wang, Biao Xiang, and Hongxing Cai by Dovelyn Agunias, cited in Agunias, “Engaging the
Mauritian Diaspora: Lessons from the International Community” in Skills and Technology Absorption in Mauritius, ed.,
Giuseppi Iarossi (Washington, DC: The World Bank, forthcoming); Luo Keren, Fei Guo, and Huang Ping, “China: Government
Policies and Emerging Trends of Reversal of the Brain Drain” in Return Migration in the Asia Pacific, eds. Robyn Iredale, Fei
Guo, and Santi Rozario (Cheltenham, UK and Northampton, MA : Edward Elgar Publishing, 2003).
Governments must be ready to tap into the financial and technical

resources of the private sector, other governments, and international
organizations to effectively and aggressively share the cost of engagement.
For instance, MIDA Great Lakes found that collaboration between
universities in host and home countries minimizes returnees’ integration
problems.

4. Administer “Return” Programs in Partnership with Private
Actors
Instead of starting from scratch, some governments have chosen to

partner with international organizations and build on existing programs
with proven capacity for human capital transfer.
Initially, governments sought to foster the permanent return of the

diaspora. But in recent years they have reevaluated this approach. Instead
of focusing on the resettlement of migrants in their countries of origin
as a measure of success, governments now recognize that diasporas
can directly fill human resource and knowledge gaps when they return
temporarily or even virtually. Three such projects administered by IOM
are described below.
Return of Qualified Afghans (RQA). Following the ouster of the

Taliban government in 2001, the Afghan Islamic Transitional Administration
(later the Administration of the Islamic Republic of Afghanistan) paved
the way for Afghans abroad to return to their homeland. IOM, in
165
cooperation with the new government, helped facilitate the return of

educated and highly skilled Afghans from around the world. The goal was
to identify Afghan nationals living abroad with relevant qualifications and
backgrounds and facilitate their employment in different sectors of the
Afghan economy.277
With cofunding from the European Commission (EC), the Return of

Qualified Afghans from the European Union (EU) Countries Program (EU-
RQA) began in March 2003 and lasted for 28 months. Eligible participants
had to be residents of a European member state and meet predetermined
educational and professional criteria. Although participants were allowed
to stay in Afghanistan permanently, RQA was designed primarily to
facilitate a voluntary, temporary return lasting between six months and
a year.
The EU-RQA program offered an assistance package to cover

participants’ expenses and basic needs and to attract a strong pool of
talent. Participants employed in both the public and private sectors
received a round-trip ticket from their EU host country to Afghanistan, a
one-time settlement allowance of €600 (or equivalent in dollars), and a
monthly salary of €300. Women received an additional €50 per month as
an extra inducement.

Participants establishing their own businesses received a plane
ticket, settlement allowance, and up to €5,000 toward the purchase of
equipment or supplies.278 IOM’s role was to facilitate the process with the
help of both Afghan and European governments.
An external evaluation commissioned at program’s end reported

promising results. Field evaluation revealed that almost all participants
were given important positions due to their high qualifications. Many
headed departments, some supervised technical processes, and others
were assigned critical managerial and administrative duties such as
procurement or accounting. Beneficiaries employed in private firms were
usually exposed to many aspects of the company rather than a single
department or suboffice.279
Most participants were well matched to their position and

possessed the needed skills, which were typically acquired at previous
jobs. They introduced new skills, techniques, methods, and technologies
to the workplace and were observed to have “brought professionalism
166 and exactitude” to tasks such as accounting and recordkeeping.280
Migration for Development in Africa (MIDA). Similar to RQA,

the MIDA program aims to mobilize the skills and financial resources of
African diasporas to support development projects at home. Described
as a capacity-building program, MIDA is focused on facilitating temporary
movement and does not entail the permanent return of migrants.281
MIDA supports the short-term, longer-term, or virtual return of

expatriate skills to key sectors. The project has more developmental
potential built into its design than earlier iterations of the return of
qualified nationals (RQN) programs. In the Democratic Republic of the
Congo, Rwanda, and Burundi, for instance, MIDA is being incorporated
into the national Poverty Reduction Strategy Papers (PRSPs) or their
equivalent.282
Although MIDA has a generic strategy, IOM designs specific MIDA

projects according to the country, region, and/or sector of activity. In each
country, a multisectoral MIDA steering committee is set up with the aim of
fostering greater coordination and policy coherence within governments.
The networks of participants strengthen interactions between origin and
destination countries, which in turn stimulate additional return visits as
well as development projects involving the diaspora and/or the productive
use of remittances.283

MIDA operates in 11 African countries — Benin, Burundi, the
Democratic Republic of the Congo, Ethiopia, Ghana, Guinea, Kenya,
Rwanda, Senegal, United Republic of Tanzania, and Uganda. Evaluations
of three of these projects revealed cautiously optimistic results.
ÂÂThe MIDA Great Lakes Program, funded by the Belgian

Development Cooperation, supports capacity building in health
care, education, and rural development by finding experts from
the Great Lakes diaspora in Europe to fill skills shortages in these
countries. The program in its various phases has supported local
partner institutions; distance learning using new information
technologies (such as an e-learning course in medicine at the
University of Lubumbashi); safe, effective, and low-cost remittance
channels; and investments in the region. In less than three years,
more than 250 Congolese, Rwandan, and Burundian expatriates
have taken part in this program.284 Currently in Phase 4, the
program has adopted a multi-annual project approach based on
a call for proposals for capacity-building projects developed with
the help of diaspora experts; these are implemented on the basis 167
of their expert missions – in the fields of health, education, and
rural development. Twenty-four such multiannual projects were

ongoing at this writing in the three participating countries.285
ÂÂThe MIDA Ghana Health Project targets migrants from Europe

(mainly the United Kingdom and Netherlands) to strengthen
hospitals and other public and private health sector institutions.
Often presented as a concrete example of migration and
development implementation in ministerial and EU discussions
and policy documents, MIDA Ghana facilitates the temporary
return of health professionals from the diaspora. An evaluation
of the program suggests that, though small, the project has
broadened collaboration among individuals and institutions in
Ghana and migrants’ destination countries. Unlike other MIDA
programs, MIDA Ghana also facilitates short-term training in
Europe of Ghana-based health professionals.286
ÂÂMIDA Italy was a pilot project supported by the Italian Ministry of

Foreign Affairs. Implemented between 2003 and 2004, the project
tested the level of interest among sub-Saharan African immigrants
to engage in socioeconomic development in their countries of
origin. Ethiopia and Ghana were selected for the implementation of
its pilot activities. MIDA Italy registered 200 migrant associations,
created a website for and a national database of Ethiopian

migrants interested in participating in development activities,
and assessed more than 150 small and medium enterprise (SME)
project proposals from African migrant organizations.287
Temporary Return of Qualified Nationals (TRQN) — Netherlands.

IOM provides qualified migrants in the Netherlands the opportunity to
help with the reconstruction of their countries of origin. This involves the
temporary outsourcing of migrants to their country of origin to execute
work for which there is no local expertise. In the framework of this
project, temporary placements have been realized in Afghanistan, Bosnia
and Herzegovina, Ethiopia, Georgia, Sierra Leone, and Sudan.
Migrants in the Netherlands who want to help with the

reconstruction of their countries of origin can sign up with IOM for a paid
temporary placement varying from a few weeks to three months. Host
institutions with job openings in the countries concerned can also sign
up with IOM, which will help them find qualified candidates. Besides
facilitating the physical return of workers to their country of origin, IOM
168 also arranges virtual return assignments, in which participants work via
Internet or videoconferencing. As of this writing, TRQN has facilitated
around 300 temporary return assignments to six countries.288
Box 3: IOM: 50 Years of the Return of Talent Program

IOM has been implementing return-of-talent programs in Latin America for nearly 50 years,
and in Africa and Asia for nearly 30.
In the 1960s, Latin American governments realized that significant numbers of their
professionals and skilled workers were migrating to developed countries and felt the need
to attract qualified migrants to return and help to respond to the prevailing development
challenges. In 1964, IOM, then called the Intergovernmental Committee for European Migration
(ICEM), launched the Selective Migration Programme (SELMIG), which involved the movement
of professionals, technicians, and migrant workers of European nationality to Latin America.
IOM continued facilitating the return of migrants to Latin America into the 1970s with the
RQN program. The absence of language barriers and the very low integration and cultural
adaptation efforts needed made expatriate experts a superior alternative, given the high
cost of settling experts of European origin in Latin America. In other words, the permanent
return of expatriate experts was seen as a more effective approach to countering brain drain,
compared to shorter deployment of foreign experts.
The return-of-talent approach was expanded in the 1980s to include Africa and Asia and has
continued to the present day. Programs identify suitable candidates for predetermined key
posts in the public and private sectors in the country of origin, whose profiles then have to
be screened and accepted by their employers. The professions involved are wide-ranging
and include medicine, engineering, sciences, education, economics, and computer science.
Source: International Organization for Migration (IOM), The MIDA Experience and Beyond.

The United Nations Development Programme (UNDP) Transfer
of Knowledge through Expatriate Nationals (TOKTEN). This program
facilitates short-term volunteer consultancies, typically ranging from
three weeks to six months. Launched in 1977 in Turkey with a focus on
scientists, technology experts, and managers of Turkish origin residing
abroad, TOKTEN has since expanded to at least 50 other developing
countries.289 TOKTEN allows professionals with at least a master’s degree
or equivalent and a significant amount of professional work experience to
return to their countries for a short period of time to impart skills acquired
while abroad. Typically, TOKTEN consultants engage in tasks international
consultants might otherwise perform. In lieu of professional fees, TOKTEN
consultants collect daily allowances, are reimbursed for travel expenses,
and receive medical insurance.
TOKTEN is especially active in the West Bank and Gaza. Since 1994
the program has placed more than 400 Palestinian expatriate professionals
in senior advisory and planning positions in leading Palestinian institutions,
including key Palestinian Authority ministries, nongovernmental
organizations (NGOs), and private-sector institutions. Moreover, about 18 169
percent of TOKTEN consultants have decided to return to the Occupied
Palestinian Territory permanently.

As Migration Policy Institute (MPI) analyst Aaron Terrazas notes
in a review of TOKTEN, it is “arguably the oldest formal program aimed
at facilitating diaspora volunteerism” and initially had four principal
objectives:290
ÂÂTo lower the cost of technical advice;

ÂÂTo allow developing countries to gain access to consultants with
desirable linguistic or cultural competencies;
ÂÂTo seed potential return of skilled expatriates or their long-term
engagement with their country of origin;
ÂÂTo depoliticize development-oriented volunteer work, as the aegis
of UNDP allows political autonomy.
UNDP offices in participating countries administer the program

with support from the United Nations Volunteers (UNV) program and the
governments of participating countries, as well as third-party donors and,
in some cases, the private sector.
Returning Experts Programme. The Centre for International

Migration and Development (CIM), a joint operation of Gesellschaft für
Internationale Zusammenarbeit (GIZ) and the International Placement

Services (ZAV) of the German Federal Employment Agency (BA), is the
human resources placement organization for the German Agency for
Development Cooperation. CIM began the Integrated Experts Programme
more than 25 years ago, linking partner-country organizations that
needed qualified employees with highly qualified experts from Germany
and other EU countries.
CIM has evolved to recognize the diaspora as a valuable resource.

Its Returning Experts Programme supports individuals from developing,
emergent, and transition countries who live and work in Germany or
have completed their education or training there to return to their home
country to use their skills and knowledge. CIM provides advisory and
placement services as well as financial support for positions important to
development policy.
The Returning Experts Programme enables diaspora experts to

be as effective as possible by applying their knowledge, experiences,
and contacts in the right places. Its goals are to promote international
170 migration as a positive factor in development and to encourage the
transfer of knowledge through the professional integration of returning
experts. It also aims to establish returning experts as bridge-builders for
international economic and development cooperation.291
Since 2004 the Returning Experts Programme has assisted more

than 10,000 persons with career planning, return to their home countries,
and the search for appropriate positions there. Financial support can be
offered to experts returning to the following countries in partnership
with CIM: Afghanistan, Bolivia (Plurinational State of), Brazil, Cameroon,
Chile, China, Colombia, Egypt, Ethiopia, Georgia, Ghana, India, Indonesia,
Jordan, Mongolia, Morocco, Pakistan, Peru, Syrian Arab Republic, Tunisia,
Turkey, and Viet Nam, as well as the Occupied Palestinian Territory.292
B. Engaging Diasporas as Partners
More recent initiatives acknowledge that members of diasporas

are helpful not only as practitioners who can fill human resource and
knowledge gaps in their home countries but as sources of knowledge,
influence, and job prospects regardless of whether they actually return.
Some countries have chosen to build partnerships between actors at home
and the diaspora by initiating a new wave of programs that go beyond the
return-of-talent model and aim to establish a more sustainable two-way
exchange of resources and knowledge.

1. Collaborative Research between Diasporas and Local Actors
Partnership projects typically target individuals and involve

collaborative research.
Program of Introducing Discipline-Based Talent to Universities.

One of China’s recent initiatives, more commonly known as the 111
Project, allows for top scholars in the diaspora to team up with domestic
researchers working in one of the 126 innovation bases located throughout
China (see Box 4).293
Box 4: The 111 Project: Attracting the Best and the

Brightest
In an effort to attract the best and brightest among its diaspora, the Chinese government
has stepped up funding of its ambitious diaspora programs. For the 111 Project, for instance,
China allocated RMB 600 million ($88 million) or about RMB 1.8 million ($265,000) to each
171
designated “innovation base” every year for five years. This grant could only be used to
directly finance the innovation bases’ recruitment-related efforts, such as the payment of
stipends to diaspora scholars during their short-term stay in China, airfare costs, and other
benefits. On top of the 111 Project funding, innovation bases get additional support from
the federal government to finance actual collaborative activities and provide for and upgrade

facilities and equipment as needed.
This substantial and long-term funding allows each innovation base to recruit from the
diaspora’s cream of the crop, including Nobel Prize winners and other well-known and highly
respected scientists and academics working in top universities and companies worldwide.
Hongxing Cai, a Chinese scholar based in Australia, who is currently studying the 111 Project,
found that at the beginning of the program, many innovation bases “didn’t know how to
use the money.” As Cai noted in an interview, for many innovation bases, the funding was so
generous that it felt like it “came from the heavens” and was “simply out of their imagination.”
Source: Interview of Hongxing Cai by Dovelyn Agunias, cited in Agunias, “Engaging the Mauritian Diaspora: Lessons from the
International Community.”
Unity through Knowledge Fund (UKF). Another recent project

focusing on strengthening collaborative research is Croatia’s Unity through
Knowledge Fund (UKF). Established in 2007 by the Croatian Ministry
of Science, Education and Sports (MSES), and with substantial funding
from the World Bank, UKF provides grants of up to €200,000 to projects
involving individuals in the scientific and professional communities in
Croatia and abroad.294
Thailand’s Reverse Brain Drain Project. This project was established

within the National Science and Technology Development Agency
(NSTDA) in 1997 with the goal of using the intelligence and connections

of Thai professionals living overseas to help in Thailand’s development,
particularly in the science and technology sectors.
Within this project, the Reverse Brain Drain Network has the
objective of disseminating and exchanging information about Thailand’s
needs to NSTDA’s alliance and networks both inside and outside Thailand.
A Special Projects Program allows a diaspora member to team up with
a Thai counterpart, propose a joint project, and receive funding. The
project has to: (1) be pioneering and innovative; (2) have the potential to
help Thailand improve its competitiveness; (3) lead to usable outcome or
products; and (4) use the knowledge and expertise of Thai professionals
overseas and their professional colleagues.
The Reverse Brain Drain Project also supports short-term visits

of overseas Thai professionals to conduct lectures and workshops in
Thailand on topics of special interest. The Thai counterparts (universities
and government agencies) who have connections with overseas Thai
professionals and want to organize the workshops can also send a request
172 for partial funding.
2. Connect Communities across National Borders through

Twinning Arrangements
Communities can also be connected via organized contacts

between municipalities across national borders, a practice called
municipal twinning. Communities benefit, ideally in equal terms, from the
partnership, which is based on common or complementary interests and
goals. Local governments in origin and destination countries assume the
leading roles.
Far from being new, municipal twinning has been around since
World War II and can be found in many municipalities, especially within
Western Europe. What is novel is the interest on the part of communities
with substantial immigrant populations in twinning with municipalities
that are large and/or recent sources of immigrants.
Municipal Twinning in the Netherlands. Recent years have

seen a number of Dutch municipalities establishing relations with local
governments in countries such as Turkey, Suriname, and Morocco, all
of which are major sources of migrants to the Netherlands. Twinning
with these so-called diaspora countries is relatively new, with most ties
established only after 1999. At present, there are 39 diaspora-focused

municipal twinning initiatives in the Netherlands, and more are in the
works.295
Central to most city-to-city partnerships are projects focusing

on strengthening local governance, especially with regard to waste
management and education. An analysis by Edith van Ewijk and Isa
Baud found that 11 of the 39 ties in the Netherlands focus on waste
management.296 For instance, the municipality of Zeist advises its
partner municipality in Berkane, Morocco, on how to improve waste
management. Interestingly, many municipalities work through public-
private partnerships involving private companies.
To stimulate economic development, a number of municipalities

link their chambers of commerce and/or specific industries to those of
another city. For instance, Rotterdam established economic partnerships
with Nador, Morocco, and Istanbul, Turkey, and tapped into the Rotterdam
Development Corporation (Ontwikkelingsbedrijf Rotterdam) and the
chamber of commerce to support economic development in both partner
municipalities.297 173
In an evaluation of these initiatives, van Ewijk and Baud identified

four main types of projects: those that: (1) strengthen local governance
in such fields as service delivery, public administration, and citizen
participation; (2) stimulate economic development; (3) promote
transnational linkages and mobility; and (4) promote the integration of
migrants in Dutch society.298
Van Ewijk and Baud’s study found that involving migrants as

policy officers can positively influence cooperation because they provide
local knowledge and context and facilitate communication — critical
contributions given that most of the exchanges include both tacit
knowledge as well as contextual or embedded knowledge. The authors
observed that migrants generally have “a strong commitment to contribute
to development in their country of origin.”299
Partnership Together. A similar initiative is Partnership Together

(P2G) (formally Partnership 2000, P2K), a program run by the Jewish
Agency for Israel that twins diaspora Jewish communities abroad with 27
regions throughout Israel.300
The platform connects some 550 communities around the world

in 45 partnerships and has an annual budget of $25 million. More than
300,000 participants from Israel and the overseas communities take part

in roughly 500 programs each year. Described as a local endeavor with
national impact, the platform aims to share ideas, strengths, challenges,
and models of success and empower both communities to generate
change. Through a joint committee process between the partnered
communities, more than 10,000 volunteers each year work together to
examine issues and responses and to determine projects and budgets.
The individual partnership regions focus their efforts mainly on education
and economic development.301
C. Diasporas as Members of Scientific and Technical Networks
Some countries support the creation of scientific, technical, and

business networks composed of local experts and the diaspora. A number
of countries rely on virtual connections through web-based media. Eritrea,
for instance, has been engaging the diaspora through its various websites,
while Germany maintains an alumni portal. Virtual exchanges with skilled
diasporas are also supported by the Philippines, Uruguay (via its consular
174 posts), Bulgaria, Colombia, Burundi, Estonia, Hungary, Switzerland, and
Ecuador.302 Still other countries combine Internet-based networks with
opportunities for face-to-face encounters.
Ideally, these networks offer opportunities for leading diaspora

and local experts, engineers, academics, government officials, and other
professionals to meet one another and discuss research, business, and
investment opportunities in their homeland.
Colombia’s Red Caldas. One of the pioneers of this approach was

Colombia’s Red Caldas, which was established in 1991 by the Colombian
Institute for the Development of Science and Technology (better known
by its Spanish abbreviation, Colciencias), a government body. As Kristof
Tamas notes in his review of diaspora networks, Red Caldas was “one
of the first initiatives to link the members of a scientific diaspora with
scientific and technological projects in their country of origin.” During its
lifetime, the network had many accomplishments, including the set-up
and implementation of public policies and the development of human
resources in science and technology. Its conferences, scholarships, and
projects helped to mobilize researchers and fostered communication
among them, and even encouraged researchers to return to Colombia.
Tamas further notes that many members of Red Caldas were involved in
economic and cultural development activities that benefited Colombia.303
Having dual scientific leaders in collaborative research projects

— in Colombia and in partner countries — was key to the program’s

success. These leaders were instrumental in capacity building, enabling
the exchange of researchers, and training graduate students. They could
also link research outcomes to development needs, although industrial
development and production were not generally within the mandate of
the network.304
After gaining momentum in its first few years, however, the program
lost steam in the 1990s and ceased operations by 2000. As Box 5 below
highlights, keeping networks active maybe more difficult than creating
them in the first place.
Box 5: The Challenges in Keeping Networks

Many members abandoned Red Caldas for more specialized research networks. This is a
common problem among diaspora networks: they are often too heterogeneous. Scientists
and technology developers are often too caught up with their own institution’s or employers’
work schedules to have extra time to network with partners in distant countries.305 Therefore,
organizers must work to keep these networks professionally relevant to their members and
175
offer rewards for continued involvement.
South Africa, like Colombia, has attempted to establish its own diaspora networks and failed.
South Africa tried twice: first in 1998 through the South African Network of Skills Abroad
(SANSA) and again in 2003 through the South African Diaspora Network (SADN). Both

networks atrophied due to lack of funding and sustained interest among members.
SANSA aimed to connect expatriates with local experts and projects. It was maintained by the
National Research Foundation, the government’s national agency responsible for promoting
and supporting basic and applied research as well as innovation. The network was built on
a database containing information on the location, qualifications, and other characteristics
of highly qualified South Africans living abroad. Participants took part in the network by
receiving South African graduate students in laboratories or training programs, participating
in training or research with South African counterparts, facilitating business contacts, or
initiating research and commercial projects. There were other initiatives focused on specific
sectors such as health and law, as well as databases of diaspora members maintained by
particular countries, including Nigeria, Benin, and Burkina Faso, as well as South Africa.306
SADN linked approximately 40 well-established business leaders living in the greater London
area with South Africa–based business people looking for assistance, guidance, and support
in expanding their businesses to the overseas market. The members of the diaspora who
participated in the network were connected with the South African Business Club in London
and the University of Cape Town’s Graduate School of Business.
Sources: Kristof Tamas, Diaspora Relations and Return, Unpublished Manuscript submitted to International Organization for
Migration, 2007; Dovelyn Rannveig Agunias, Remittances and Development: Trends, Impacts, and Policy Options: A Review of
the Literature (Washington, DC: MPI, 2006).
RedEsColombia. Most recently, the Ministry of Foreign Affairs

of Colombia with support from IOM, created another networking
platform called RedEsColomba. The goal of the website is to increase
interactions among members of the diaspora and encourage new ideas
for development. Increasing social capital, RedEsColombia argues, will

lead to greater development. The Colombian government considers the
website to be one of its most successful initiatives to date.307
The website can be navigated by thematic areas: the Knowledge

Network promotes networks between scholars (scientists and researchers,
students, and teachers) and academic institutions (universities, research
institutes); the Trade Network builds contacts and facilitates knowledge
exchange for the benefit of Colombians engaged in commercial
endeavors; the Cultural Network opens channels of communication,
exchange, socialization, and cooperation among artists and others active
in Colombian cultural activities; and the Community Network creates new
venues for the inclusion and civic participation of vulnerable social groups
and associations of Colombians inside and outside the country.
“Who Is Who in BiH” Diaspora Project. The Department for

Diaspora of Bosnia and Herzegovina’s Ministry for Human Rights and
Refugees started this directory project in 2006 with the aim of establishing
contact with professionally successful members of the diaspora. The first
176 edition was published in 2009 and contained entire biographies of 142
PhD holders and researchers of Bosnian origin. The second edition of
Who Is Who in BiH Diaspora: PhD Holders and Researchers was published
in 2010 and contained information on 242 diaspora members. These

publications fostered cooperation between the local academic and
professional community in Bosnia and Herzegovina and those members
of the diaspora highlighted in the publication.
The Department for Diaspora received positive feedback from

diaspora members who participated in the project and sent their
information. Because the staff of the Diaspora Department reached out
to the diaspora members online and as part of their regular duties, the
project cost only about €2,500, the price of printing the publications.
Compilation of the database is ongoing.308
The Philippines Brain Gain Network (BGN). This network of talented

professionals and organizations in the Philippines and abroad focuses on
increasing the competitiveness of the Philippine economy. Funded by
Narra Venture Capital, the private organization encourages cooperation
between highly skilled expatriate Filipino professionals and students and
Philippine-based professionals, students, and corporations.
BGN currently holds information on 2,240 members in its database,

most of whom are based in the United States and Singapore. Members
can access profiles of people in the database and use the search engine to

look for a professional within a specific skill set, educational background,
or industry.309
The goal of the project is to provide a convenient platform for the

diaspora to network and start new companies in the Philippines, provide
consultancy services for Filipino organizations, or form foreign-based
companies to do business in the Philippines. BGN also partners with
headhunter organizations to help members of the diaspora find jobs in
business, academic, governmental, and nongovernmental organizations
in the Philippines; potential employers are given access to the database
as well.
A. Adopt a Demand-Driven Approach
Many programs start with an unclear understanding of what the

beneficiary country needs. This lack of clarity creates problems and greatly
177
undermines the programs’ impact and, ultimately, their sustainability. For
instance, evaluators of the discontinued RQN program in Africa reported

a “lack of in-depth analysis of the special characteristics and needs of the
country to match programme objectives with those of national objectives,
and assessment of priority sectors and specific requirements of human
resources.”310 This was confirmed by an evaluation of the third phase of
the RQN program in Africa commissioned by the European Union, which
revealed that the program was not sufficiently linked to sectors prioritized
in origin countries’ development plans, was too resource-intensive
compared to the low number of actual returns (that is, the cost per
returnee was too high), lacked country ownership and cooperation with
other agencies and donors,311 and did not achieve long-term retention
levels. In addition, the program was largely driven by the skills that
diaspora participants had to offer rather than the skills the participating
countries needed, which made it difficult to ascertain whether these
African qualified nationals would have returned in any case.312
Implementation of programs can be delayed when participants do

not have clear roles when they begin their jobs in government institutions.
In the case of EU-RQA, the Afghan return program, evaluators noted
that “institutions were unprepared to received or utilize an EU-RQA as
an employee.” Although all government agencies had to develop job
descriptions, evaluators found the “job descriptions were ignored, not
respected or lost by the employer or employee.”313 Similarly, in the case of

the TRQN program sponsored by the Netherlands, there is a concern that
too few institutions or organizations in Ethiopia have been selected to
receive participants, which decreases the “chances that the right people
are placed in the right spot.”314
An unclear understanding of the specific needs at home makes

programs more vulnerable to abuse by dishonest and corrupt actors. For
instance, there are cases where diaspora members who are primarily
looking to minimize their vacation costs have arranged to take part in
a diaspora program. As the evaluator of TOKTEN–Sri Lanka noted in his
report, for example:
The demand for the consultancy is generated by the consultant

himself while the receiving organization merely accommodates
his visit. In essence the consultant creates the consultancy and
the expressed demand for it, identifying himself and often
developing his own TOR (terms of reference) in collusion with
his “contact” in the receiving agency.315
178
Similarly, in IOM’s RQA, evaluators highlighted that in some cases,
“a beneficiary in Europe would register for the program” knowing that
the “acquaintance working in the ministry” would conduct the hiring. The
converse can also happen, where a “functionary at the ministry would
hear about the program, advise his relative in the EU to register with
the program, and then request that IOM sponsor his friend or relative to
work at the same ministry.”316 It can be argued that this kind of informal
matching between individuals in the local economy and the diaspora is
a cost-effective way to bring in the needed skills in the shortest amount
of time possible, but programs must guard against manipulation by
unscrupulous actors.
A clear focus on the origin country’s demand is necessary for

attracting the right partners in the diaspora. Commenting on Mexico’s
experience with creating its diaspora talent network, Carlos González
Gutiérrez, former director of the Institute for Mexicans Abroad (IME),
found, for instance, that it can be challenging for members of the talent
network to identify specific areas for collaboration. According to Gutiérrez,
the country of origin should actively “define and generate ideas, take
initiative and originate the transaction with the diaspora, not the other
way around. It is up for the country of origin to say ‘yes, this is good’ or
‘yes, this is great, but unfortunately we can’t work on that right now’.”317

B. Map the Pool of Potential Participants at the Outset
Mapping networks, interests, expectations, and available resources

among expatriate communities is an important first step in developing
viable projects. Through sending out surveys and questionnaires and
creating databases — all of which can be done online — it is possible
to obtain detailed community profiles covering skills, qualifications,
experience, social and demographic information, employment patterns,
location, and length of stay in the host country. Such data can then be
analyzed and matched against identified needs.318
During the MIDA Italy project, conducted between 2006 and 2007,
the Centro Studi di Politica Internazionale (CeSPI, an Italian research
institute) set out to ascertain the tools best suited to identify the skills,
expertise, and resources present among the African diaspora community in
Italy, and determined that focus group discussions and thematic interviews
would be most effective.319 The focus groups, in particular, allowed the
researchers to take stock of the migrants’ points of view, priorities, and
expectations. As part of the second phase of the TRQN project, a similar
179
mapping exercise was conducted for migrant groups in the Netherlands
originating from Afghanistan, Bosnia and Herzegovina, Georgia, Ethiopia,

Sierra Leone, and Sudan. In some projects, mapping exercises have been
conducted as part of a project, rather than as preparation for a project.
It is during the resource-mapping stage that the suitability of

potential target groups can be assessed. For instance, a survey of African
expatriates residing in Italy, conducted in 2005, established that Nigerians
constituted one of the largest African diaspora groups.320 Despite this
large presence, the preliminary analysis conducted between 2006 and
2007 revealed that most of them seemed to be victims of trafficking
and, hence, it was appropriate to give priority to protection and support
activities rather than migration and development initiatives.321 This was an
important outcome of the pre-assessment phase and allowed migration
and development activities to focus on the Ghanaian and Senegalese
communities. Both quantitatively and qualitatively, these two groups
offered the necessary presence, as well as organizational, financial,
and entrepreneurial resources and skills. Moreover, their numerous
associations provided sociocultural support and, in particular, fostered
transnational links with the host community at both the local and national
levels.322

C. Offer Adequate Incentives to Attract the Targeted Diaspora
Population
Programs that offer what the diaspora perceives as inadequate

incentives may be unable to attract the skills and resources necessary
to operate effectively. In Jamaica, for instance, the relatively low level
of remuneration offered within the public sector made it difficult for
employers to attract and retain competent and qualified personnel
in high-level positions.323 Indeed, the experience gained during the
implementation of RQNs in many countries in Africa confirms that without
adequate incentives, well-established diaspora members, especially
those with children born in the destination country, are less like to return
permanently or even temporarily to contribute to the development of
their country of origin.324
Programs also must attend to other personal needs, such as

housing, schooling for children, transportation, and health insurance.
180 One of the biggest problems diaspora members face, regardless of the
duration of return, is finding affordable and appropriate accommodation.
An evaluation of the EU-RQA program concluded that although the
“salary offered as part of the assistance package was not a deciding factor
or obstacle to participation in the program, the availability of affordable

housing was a substantial problem for beneficiaries.”325 Diaspora members
contemplating a longer-term stay in Afghanistan were also concerned
about problems of access to high-quality schools for their children.326 Aside
from rent, other expenses included transportation, communication (such
as mobile phone credit to call home), and food. The EU-RQA participants
felt that the cost of housing made living on a €300 monthly stipend
very precarious. Suggestions were made that the program incorporate
a housing subsidy or that IOM help arrange for cheap housing through
bulk deals with local agents.327 Health care is another issue, especially in
postconflict destinations. In the EU-RQA program, evaluators found that
“because death or illness in Afghanistan could leave the family in Europe
without a primary earner, some participants thought that the lack of basic
insurance for program participants constituted unreasonable risk for
some potential candidates.”328
Additional benefits that improve the workplace, such as updated

and adequate facilities and equipment, are also critical to successful
implementation of diaspora programs. Capital infrastructure (such
as advanced science and engineering colleges and state-of-the-art
research labs) that promotes professional growth and offers a dynamic
and transformative environment is an important factor in the decision

to engage back home. For example, the general lack of resources at
many host institutions and organizations hampered the effectiveness of
TOKTEN volunteers. In Rwanda, in particular, evaluators noted that “many
complained of lack of computer facilities and Internet access,” which made
it difficult for the diaspora to do their work.329 Program managers typically
find that diaspora members, having lived and worked in countries where
resources and facilities are more abundant, may find it hard to adjust to
an antiquated working environment in time to accomplish the program’s
goals. Indeed, many diaspora members who felt they were not very
effective in transferring knowledge, technology, and experience to others
blame the inadequate or inappropriate tools, equipment, and research
facilities that they encountered during their stint in the country of origin.
Frustrations over the workplace have also kept many participants from
taking part in the program again or from encouraging colleagues to join
future programs.330
For Tamara Keating,331 Head of Unit at IOM, it is critical to have a

thorough needs assessment and description of the necessary equipment
for each mission. IOM´s MIDA Great Lakes program has tried to overcome 181
this problem by opting for a project approach with structured systematic
implementation planning, including delivery of equipment as part of the

overall knowledge transfer. However, similar problems can still arise when
equipment is not ordered and/or delivered in time.
D. Educate Diasporas about the Local Context in their

Country of Origin
Despite the cultural and linguistic affinities of experts from the

diaspora and migrant communities, it is important to note that many
emigrants may have lost track of the current local context. The longer
migrants have been out of the country, the more difficult it will be for
them to readjust to the local context. This is especially true when the level
of development in the country of origin varies greatly from that in the
country of residence.
Lack of infrastructure, different working and living conditions, and

levels of (in)security can also influence the success of short-term returns
of qualified nationals.332 For these reasons, the MIDA Ghana Health Project
follows the good practice of offering preparatory courses and orientation
sessions to participants. Furthermore, diaspora professionals can assist by
informing other diaspora members of the prevailing situation.333

E. Create Special Bodies or Posts to Facilitate Implementation
Apart from their symbolic value, special bodies and posts have
practical value in day-to-day operations of diaspora projects. The RQN
program in Jamaica, for example, had a steering committee to “insure
the smooth running of the program, mainly with regard to the selection
and recruitment criteria of the candidates and the level of reintegration
support.” The committee was also advised on operational problems
encountered in project execution so it could lend support in resolving
them.334 Ethiopia has a support group consisting mostly of representatives
of government ministries and other establishments at the federal level.335
Mexico’s talent network has designated a National Point of Contact to
serve as a liaison with some sectors.336 To further appeal to participants,
programs may also consider hiring local staff who speak the language
of the target population. In the case of EU-RQA, the program hired an
employee of Afghan origin who, an evaluation later found, made it easier
for candidates to understand the program and application process.337
182 Coordinators or focal points working in target institutions in the
beneficiary countries and nationals engaged in project management can
also help to strengthen country ownership. Without a focal point in the
beneficiary institution, there is an increased risk that the activities are

not carried out and supported, as well as a lack of potential for buy-in
and ownership of the results. In its fifth phase, IOM´s MIDA Great Lakes
program asked all applicants to identify focal points in the beneficiary
institutions for the duration of each project.338 Although potentially critical,
however, policymakers need to make sure that they are situated in a way
that solves problems and does not exacerbate them. For instance, MIDA’s
Ghana Health Project formed a task force consisting of representatives
from government agencies, professional organizations, and the Dutch
embassy to provide direction. Evaluators, however, found that “the task
force is ‘stretched thin and overbooked,’ [which] added additional strain
on human resources and created unnecessary bureaucracy and time, as
demonstrated by [the] difficulty in convening meetings.”339 As Keating
notes, “The challenge is to keep these focal points motivated from
a distance, and to ensure a smooth handover when they leave to new
positions, as is often the case.”340
F. Establish an Appropriate Time Frame for Investment
Perhaps the greatest challenge in program implementation is

the brevity of most assignments and, indeed, of programs themselves.
Many government initiatives on diasporas tend to be short-lived and are

dependent on support from the central government, which can vary from
one regime to another, and from donors. Since the technical know-how
that is critical for handling programs is typically acquired through years of
trial and error, it is important for governments to provide adequate time
for their diaspora programs to develop. Most of the programs highlighted
in this handbook run on two-year cycles, which program managers found
to be exceedingly short. Given the average duration of stay for short-term
engagement — less than two months — and the variety of tasks that
volunteers were assigned in most cases, little time was left to develop
professional bonds with and transfer more knowledge and skills to their
counterparts in host institutions. Indeed, a survey of China’s 111 Project
found that 70 percent of domestic scholars needed more time to work
with diaspora scholars.341 Evaluators of programs in Ghana, Afghanistan,
and Rwanda expressed similar concerns. For the EU-RQA program, in
particular, “former beneficiaries and their supervisors and colleagues
think that 6–12 months is an insufficient period to effect meaningful
changes on the efficiency of a company or institutional department.”342
The duration of assignments should depend on a thorough analysis 183

of activities involved in each assignment. It is clear that some activities,
especially those that involve a great deal of practical expertise, would

require more time than others. Special terms for some longer assignments
(three to six months), depending on the nature of activities to be
undertaken, should be considered. Repeated return visits and follow-up
virtual contacts are other viable options.
G. Ensure Meaningful Participation of Key Stakeholders
Diaspora initiatives almost always benefit from the solid commitment

of all actors. This was not the case in the pilot phase of the MIDA Italy
project; despite its success in meeting many of its goals, it was clear the
IOM and the Italian government did most of the work.343 As IOM noted in
its evaluation of the program: “There was no concrete commitment from
the Governments or private sectors of the countries of origin to support
pilot project implementation and play a pivotal role in integrating MIDA
Italy into national policies for using the diasporas’ skills and resources.
Ownership of MIDA Italy did not rest with the African countries, as also
recommended, but with the Italian Government.”344
Ownership is critical because, without it, the sustainability of a

program is threatened. The website created by IOM to raise interest among
the Ethiopian diaspora to invest in its country of origin was not made with
the active cooperation of the Ethiopian government. Its sustainability,

therefore, was not guaranteed.345 The MIDA Great Lakes program suffered
from a similar lack of ownership. The three countries selected — Rwanda,
Burundi, and the Democratic Republic of the Congo — provided far less
support than the diasporas’ countries of residence (in this case Belgium
and Italy) and the donors.346
The active engagement of governments is an essential condition

of the success of diaspora programs. One of the most valuable lessons
learned from past and present MIDA projects is that cooperation among
all relevant stakeholders is of the utmost importance. Close collaboration
among the respective ministries and other actors in the targeted sector(s)
has proven to be of enormous benefit. For example, the MIDA Ghana
Health Project could not have been realized without the help of partners
in the Netherlands, the United Kingdom, and Germany, on the one hand,
and Ghanaian experts on the other. In the MIDA Great Lakes Program,
IOM has a memorandum of understanding with relevant ministries in all
three partner governments, on the basis of which the governments make
ministerial officials available on a full-time basis. These officials are not
184 IOM staff but work in the ministries.347
The failure of talent networks such as Red Caldas, SANSA, and

SADN has been attributed to overcentralization of the networks. The

governments’ overarching control of the network activities seems to have
alienated some members and raised suspicions among others.
H. Invest in an Effective, Multipronged Outreach Strategy
Websites and word of mouth are two of the most effective tools
for advertising projects. In the EU-RQA program, Internet searches as well
as informal social networks and community organizations were the most
commonly cited sources of information about the Afghan return program.
Many community leaders were directly contacted by IOM and took it
upon themselves to tell colleagues and relatives about the program.348
It is important to go beyond traditional migrant organizations to

reach young people and, in some cases, women. In the EU-RQA program,
for instance, younger beneficiaries often stated that the Afghan community
organizations were divisive, as some were allied with certain political
beliefs and factions. Afghans under the age of 40 living in Europe also had
less contact with community organizations than their elders. Attracting
the younger generation and women to diaspora programs is critical to
their success.349 Targeted publicity can help to reach the widest possible
audience and achieve the important objective of attaining a higher level
of female registration.350

Outreach and promotional campaigns should be conducted in both
origin and destination countries. This was a significant lesson learned
during Phase I of the MIDA Great Lakes program, which started in 2001.
Some diaspora experts encountered mistrust and even jealousy on the
part of local staff during Phase I. However, during the second phase,
which started three years later, the general knowledge about and public
perception of the program was better, and therefore the acceptance of the
diaspora members was generally much higher — an important condition
for effective capacity building.351
I. Monitor the Implementation of Projects
Checks should be installed to make sure that grants are used as

intended. In the EU-RQA program, evaluators found that IOM was
“particularly vigilant about monitoring the self-employed business projects
and making sure that the grant money was used to buy tangible assets.”
The €5,000 grant was disbursed in kind and participants made purchase
requests for equipment and supplies, which were then purchased by
IOM.352
185
Rules must be strictly respected and enforced to avoid suspicion

of corruption. In some of IOM’s return programs, although rules and
procedures were observed most of the time, exceptions were made and
extra support was given to some employers. These few cases, unfortunately,
“lowered many beneficiaries’ opinions of the program, as beneficiaries
sometimes felt that others received special treatment at their expense.”
To placate would-be critics, administrators should publish procedures and
clarify the motivations for such exceptions and extra support.353
J. Engage the Private Sector
The private sector has an important role in diaspora programs

since it is usually the actor with the greatest capacity to absorb the skills
that diaspora members offer. In the EU-RQA program, evaluators found
that “private sector companies were much more prepared and adept
than their public sector counterparts. Beneficiaries [that is, the diaspora
participants] in private companies very rarely stated that their employers
were unprepared for their arrivals or that they felt that their skills were not
utilized.”354 An analysis of interviews with colleagues and supervisors of
diaspora participants who worked in the private sector reveals that most
EU-RQA beneficiaries were well matched to their positions and possessed
the necessary skills, which they had learned in similar positions in the
past. In the technical fields, beneficiaries were credited with introducing

new techniques, methods, and technologies. Among management
and administrative professions, participants were usually said to have
brought professionalism and exactitude to tasks such as accounting and
recordkeeping.355
Salaries in the private sector also tend to be higher than in the

public sector, which led to less discontent among returnees, as in the case
of the EU-RQA program.356
K. Ensure Efficient Infrastructure in Destination Countries to

Support the Effectiveness of Innovative Programs
By using new communications technology for the virtual transfer

of expertise and skills, highly skilled expatriates can share their expertise
with colleagues in their country of origin without having to be physically
present. One constraint, however, is the quality of available equipment.
Experience has shown that some host institutions — for instance, hospitals
186 in the MIDA Ghana project or in the TRQN projects of the Netherlands —
do not have appropriate electronic communication facilities. In the case of
Sudan, even Skype was difficult to use.357

Chapter 9: Philanthropic Contributions
Private philanthropy plays an increasingly important role in

development efforts. In 2005 approximately 2.2 percent of all giving from
US philanthropic foundations, or roughly $800 million, went to recipients
in developing countries.358 It is harder to measure the size of the smaller
and often less organized donations of the millions of private individuals
who send money back to their countries of origin for altruistic purposes,
not directly benefiting their own families and friends, not for commercial
gain, and not primarily intended to achieve political power. The growth
of transnational communities interacting across borders and the vast
sums of money that flow from diaspora communities to their countries of
origin have produced a growing interest in the development potential of
diaspora philanthropy.
Diaspora philanthropy refers to the private donations of diaspora

populations to a wide range of causes in their countries of origin. Their
motivations, objectives, capacities, and impacts vary. Individual donors
187
include industrial magnates, entrepreneurs, celebrities, and international
CHAPTER 9: PHILANTHROPIC CONTRIBUTIONS

sports stars as well as a growing body of middle-income and even
relatively poor non-elite philanthropists who combine their contributions
into powerful streams of social investment. Some diaspora philanthropists
have the necessary knowledge and connections to select their causes
and give independently. Others choose to donate via intermediaries,
either for convenience or to achieve greater impact than their individual
donations might achieve. Intermediaries include such organizations as
hometown and community-based associations, faith-based organizations,
professional networks, diaspora foundations, and Internet-based
philanthropic platforms.359
The public and private sectors, nongovernmental organizations

(NGOs), and diasporas all bring unique strengths to the development
process. Coordination among these actors can lead to successful and
sustainable development efforts. However, each type of actor also
has its weaknesses. Official development agencies, for example, must
often deal with bureaucracy and are subject to political whims and
budget cuts. The private sector, and private enterprise in particular,
can leverage large amounts of private funds but are most concerned

with their responsibilities to bring profit to shareholders and investors.
Private voluntary organizations, which are also able to raise funds from
a variety of sources, face barriers to coordination and collective action.
Private philanthropists, even the wealthiest, have limited resources they
can (or are willing to) commit to development. Given such circumstances,
official international development agencies find it attractive to coordinate
their efforts with those of private donors and migrants. The development
of a strong for-profit sector makes aid agencies’ interventions more
productive and sustainable in the long term. However, in the short to
medium term, private philanthropic institutions often undertake high-risk
policy innovation and demonstration projects that are neither attractive
to business nor feasible for government agencies.
While in the past philanthropic undertakings were typically

associated with wealthy industrialists, many middle-income and
even relatively poor individuals now make meaningful donations to
philanthropic causes. Today’s philanthropists — spanning a wide range
188 of actors — are increasingly focused on strategic giving to bring about
social change and influence policy rather than simply to provide stopgap
measures to plug chronic problems.
Governments have taken three broad approaches to leveraging

philanthropic contributions among the diaspora: engaging individuals,
engaging organizations, and pooling funds via donor aggregators.
A. Engaging Individuals
Today, a generation of globally aware entrepreneurs and

industrialists engage in a variety of efforts to influence policy on issues such
as health care, education, democracy, press freedom, poverty reduction,
and economic competitiveness. Many, because of their successes, have
come to question the status quo and are inclined to donate their wealth
for causes that they support. Billionaire philanthropists Bill Gates and
Warren Buffett have recruited 69 wealthy American individuals and
families, at least four of whom are immigrants and three of whom are
second-generation immigrants, to commit to donating the majority of
their wealth to charitable causes.360 However, relatively poor and middle-
income individuals also make important contributions to charities to
effect change in their communities. Research highlighted in The Economist

suggests that the poor are more likely to make charitable donations than
the wealthy; and those born into poverty but who have achieved financial
wealth are also more likely to donate.361
Individual donors have more flexibility in setting priorities and

rapidly identifying issues or opportunities than group donors, which
typically have to negotiate their giving in advance. Individual diaspora
donors include those who are able to make small donations to specific
causes in their communities of origin as well as financially successful
migrants who have the means to donate larger sums.
A number of very successful diaspora philanthropists have made

important contributions to their countries of origin, some to promote
political or socioeconomic change. Andrew Carnegie, born into a poor
weaver’s family in Scotland in 1835, made a lasting impact during his
lifetime in Scotland and the wider world by establishing a number
of educational institutions, foundations, and organizations that play
important roles in the world today. His first donations established a
public swimming pool and library in his home town of Dumferline; so-
called Carnegie libraries soon were found throughout the English-
speaking world. He went on to support the establishment of universities,
international organizations (including the League of Nations and
Organization of American States), social welfare institutions and peace- 189
building organizations during his lifetime, and to leave a private foundation
legacy that continues his philanthropic tradition today. George Soros, a

Hungarian-born US financier, established the Open Society Institute (now
the Open Society Foundations) to promote democracy in the developing
world and the former Soviet bloc. Mo Ibrahim, the Sudanese-born British
telecommunications magnate, established the Mo Ibrahim Foundation,
which sponsors an annual $5million prize to promote good governance
throughout Africa.
Others focus on humanitarian and community relief efforts.

Popular entertainers and professional athletes in the Haitian-American
community raised funds for relief and recovery efforts in the aftermath of
the devastating earthquake that struck Haiti in January 2010. Others direct
their energies toward community development initiatives. International
pop star Shakira Isabel Mebarak Ripoll established the US-based Barefoot
Foundation (Fundación Pies Descalzos) to promote expanded access to
childhood education in her native Colombia. A group of Nigerian-origin
National Football League (NFL) athletes in the United States established
a nonprofit group, Athletes in Diaspora Community Interventions (ADCI),
to promote the establishment of an athletics-based youth development

program in Nigeria. Brazilian-born international soccer star Ronaldo de
Assis Moreira (better known as Ronaldhino) established the Ronaldhino
Institute in his hometown of Porto Alegre, Brazil, as a youth development
organization.
Diosdado (Dado) Banatao, a Filipino entrepreneur and electrical

engineer, established three high-tech companies that made him a
multimillionaire. He has made philanthropic contributions through
the Banatao Family Filipino American Education Fund, which assists
Northern Californian high school students of Filipino heritage pursue a
college education in science and engineering. Banatao, who stresses
the importance of education, particularly in the fields of science and
engineering, as the foundation of technological development and
economic growth, returned to his hometown of Iguig in Cagayan province
in the 1990s and built a computer center equipped with modern computers
at the public school he attended as a child.362 During 2011, as chair of
the Philippine Development Foundation (PhilDev), he worked in concert
with other Filipino Americans and the government of the Philippines to
promote science and technology education, starting at the elementary
school level, across the Philippines.
B. Engaging Organizations
190
Aside from individual contributions, organizations have also
played important roles in developing countries and regions. Given a
lack of resources, time, or expertise, many diaspora members rely on

philanthropic intermediaries to channel their donations to specific
community projects in their countries of origin.
1. Diaspora-Focused Foundations
In the United States, for example, US-registered nonprofit groups

are able to raise tax-deductible funds to channel to diasporas’ homelands.
Examples of such groups include the American Indian Foundation (AIF),
Brazil Foundation, Give2Asia, PhilDev, and the Rafik Hariri Foundation.
The American Indian Foundation (AIF). Established to support relief

efforts in India following the Gujarat earthquake in 2001, AIF has served
over 1.5 million people by implementing programs through over 115
Indian NGOs. It has held annual fundraisers in New York, San Francisco,
Los Angeles, Boston, Chicago, Dallas, Washington, DC, and Seattle.363

The Brazil Foundation. Established in 2000, the foundation
allows donors to choose and recommend a specific Brazilian nonprofit
organization or project in the fields of education, public health, human
rights, citizenship, and culture in which they would like to invest. After
screening the organization, the Brazil Foundation disperses funds and
offers donors project monitoring and evaluation services.364
Give2Asia. Founded in 2001, Give2Asia has experience and a

presence in over 20 countries and helps small and large companies as well
as foundations with their work. Give2Asia has made investments with the
Skoll Foundation, the Omidyar Group, the Asia Foundation, the Caterpillar
Foundation, and Johnson & Johnson among others. Its work has produced
more than $177 million as of 2011.365
The Philippine Development Foundation (PhilDev). Formerly

known as the Ayala Foundation USA (AF-USA) when it was set up in
2000, PhilDev was established in 2009 to strengthen and encourage
philanthropy among Filipino Americans and to connect them to well-
run nonprofit organizations in the Philippines that work on finding
strategic solutions to poverty. Its main focus is to build an ecosystem
of science- and technology-based entrepreneurship and innovation for
social and economic development in the Philippines. The foundation
uses tax-deductible donations to fund its activities with an eye toward 191
accomplishing the following goals:366

ÂÂStrengthening education and training programs for youth in
science and engineering;
ÂÂProducing a higher number of qualified science and engineering
experts and practitioners among the Filipino population;
ÂÂFostering innovation by directing science and technology research
toward the development of viable products and businesses that
can compete in global markets;
ÂÂSupporting training and networking programs to encourage more
entrepreneurship and company and job creation;
ÂÂHelping build legal, financial, and support infrastructure conducive
to entrepreneurship in the Philippines;
ÂÂSupporting the credible measurement of global competitive
indices;
ÂÂEstablishing a global network of relationships that will create and
sustain innovation and entrepreneurship in the Philippines.
In 2005 it established a program called the Gearing up Internet

Literacy and Access for Students (GILAS) to provide Internet access to more

than 6,000 public high schools in the Philippines. The project has provided
Internet access to more than 3,000 public high schools (44 percent of
the country’s total) as of 2010.367 Since its inception as AF-USA in 2000,
PhilDev has raised more than $10 million, supported over 200 projects in
five focus areas (agriculture, health, information technology, energy, and
infrastructure), and entered into partnerships with 161 organizations.368
Hariri Foundation-USA. In 1985 Rafik Hariri, former Lebanese

prime minister and businessman, established the Hariri Foundation with
the mission of providing education opportunities for Lebanese youth.
The foundation offers loans as well as scholarship opportunities for
Lebanese students studying in the United States. Interest-free loans that
are repaid by former loan recipients are recycled to fund the education
of other students. Among its programs are the Boston University–Hariri
Foundation Scholarship Program, which covers two years of full tuition
for graduate study in master’s degree programs; scholarships for the
Research Science Institute, a six-week long summer program held jointly
by the Massachusetts Institute of Technology and Center for Excellence
in Education, where 80 of the world’s most accomplished high school
students gather to conduct scientific research; and the Gebran G. Tueni
Human Rights Fellowship Program at the Carr Center for Human Rights
Policy at the Kennedy School of Government at Harvard University.369
192
2. Joint Grant Programs
A number of governments, private corporations, and migrant

associations have established their own or joint grant programs to help
funnel wealth toward development projects in countries and communities
of diaspora origin. The US government, for example, offers grants to
private philanthropic organizations to fund development projects in
developing countries, but such programs are nascent and data on them
are scarce or nonexistent.
Some grant programs are based on a sectoral approach. The Institute

for Mexicans Abroad (IME), for example, operates a grant program for
adult education called BECAS. Since 2005 IME has offered grants of up to
$15,000 annually to organizations offering adult education for Mexican
migrants. In an effort to promote access to higher education among
Mexican immigrants in the United States, IME grants (IME Becas) are
awarded to organizations offering English language classes and workforce
training to Mexican migrants, as well as to educational institutions
that offer scholarships to individual migrants.370 IME’s grant program is

administered through the University of California’s Office of the President.
As a subgrantor, this office receives approximately $685,000 from the
Mexican government and determines the recipient and size of each
IME grant. Between 2005 and 2007, IME provided 210 grants, helping
approximately 14,482 students and teachers. Beneficiaries help Mexican
and non-Mexican migrants alike, but must be nonprofit organizations to
qualify for the grant.371
3. Providing Matching Funds
The best-known programs involving diaspora philanthropy are

matching fund schemes in which the collective contributions sent by
migrant organizations abroad are matched by public or private funds.
Various levels of government might, for example, allocate a dollar or more
for every dollar that migrant organizations invest in their communities. A
hometown association (HTA), which centers on a common place of origin
in the home country, is the best-known vehicle for this kind of contribution.
Tres-por-Uno para Migrantes (3x1) Program. Perhaps the most

frequently cited example of a matching fund scheme is the Mexican
Tres por Uno (3x1) program. Established in 1999 as an evolution from
its predecessor — the Dos por Uno (2x1) program, involving the state 193
government of Zacatecas and the Mexican federal government — the
3x1 program has made a real difference in empowering migrants and

promoting local community development. Every dollar of remittance
money sent by a diaspora member through a dedicated Mexican HTA
abroad is matched by a dollar from the municipal, state, and federal
government in Mexico.
From 1992 to 2001, the 3x1 program carried out 400 projects,
in which migrants invested $5 million (out of a total investment of $15
million). In 2003 alone the federal government invested $10 million in 898
projects, out of a total investment of $40 million.372 As of December 31,
2010, the 3x1 program operated in 28 of the 31 states of Mexico373 and had
approved 2,488 projects including 874 urbanization and paving projects;
571 potable water, drainage, and electricity projects; 359 education,
health, and sports projects; 332 productive projects; and 56 rural road
projects.374 In 2010 the government’s allocation to beneficiaries under
the 3x1 program amounted to over 550 million pesos (approximately 39
million US dollars).375 To focus on social infrastructure projects, the federal
government (Social Development Secretariat, SEDESOL) has a financial
limit of 800,000 pesos for infrastructure, equipment, or community service

projects (25 percent of the total project costs), and a 300,000 pesos limit for
productive (job- and tax-creating) projects (50 percent of the total project
costs). For projects concerning the former group, the government can,
after obtaining approval from the Committee on Validation and Attention
toward Migrants (COVAM), increase the limit depending on magnitude
and social impact. Given the high impact on social infrastructure, the
annual budget allocated in 2010 for the 3x1 program was more than
five times as large as the budget in 2003.376 In 2010 total financing from
migrant associations and local, state, and federal governments reached
over 1,192.8 million pesos (approximately $100 million).
In general, projects are divided into six main categories:
■■education, health, and sports

■■potable water, drainage, and electricity
■■roads and highways
■■culture and recreation
■■urban improvement
■■productive community projects.
Table 1: Mexico’s 3x1 Program: Number of

194 Participating Entities and Funds Allocated, by Actor,
2002–07
Concept 2002 2003 2004 2005 2006 2007

Participating states 20 18 23 26 26 27
Projects 942 899 1,436 1,691 1,274 1,613
Supported municipalities 247 257 383 425 417 443
Participating migrant
20 200 527 815 723 857
groups
States of residence in
8 17 31 35 34 37
United States
Budget (in millions of Mexican pesos)
Federal/allocated to
113.7 99.9 175.9 232.1 192.0 257.7
projects
State, municipal and
266.5 277.7 461.8 619.7 556.9 690.8
migrants
Source: Secretaría de Desarrollo Social (SEDESOL): Programa 3x1 para Migrantes, 2008.

Table 2: The 3x1 Program: Number of Projects
Supported between 2002 and 2007
Budget
2002 2003 2004 2005 2006 2007 Total
(millions of pesos)
Potable water,
226 274 547 440 236 376 2,099
drainage, electricity
Roads and highways 67 57 83 100 58 77 442
Health, education,
190 113 114 151 122 186 876
and sports
Urbanization and
276 282 477 591 452 623 2,701
paving
3x1 scholarships 0 0 0 15 25 66 106
Community centers 127 143 160 298 317 220 1,265
Productive projects 40 22 53 77 45 50 287
Other 16 8 2 19 19 15 79
Total 942 899 1,436 1,691 1,274 1,613 7,855
Source: Secretaría de Desarrollo Social, Programa 3x1 para Migrantes, 2008.
Table 3: 3x1 Program: Government Budget

Allocations, 2003–10
195
Budget (in millions of pesos)
Year
Original Modified Spent
2003 110.00 100.00 99.64

2004 220.00 191.32 187.69
2005 160.00 237.06 233.47
2006 119.50 197.35 191.92
2007 220.00 255.26 244.85
2008 503.47 493.92 491.80
2009 562.38 524.10 518.12
2010 557.50 553.70 546.30
Source: Secretaría de Desarrollo Social, Programa 3x1 para Migrantes, 2008.
Social Investment Fund for Local Development. The Salvadoran

government established the Social Investment Fund for Local Development
(Fondo de Iversión Social para el Desarrollo Local, FIDSL) in 1990 to funnel
diaspora remittances toward development projects. At the time, the
government launched the program as a temporary institution to direct
social investment and reconstruction efforts in the postwar period. In
1996 FIDSL became a permanent institution focusing on the fight against
poverty and on investment in human capital and social infrastructure.

A matching grant program under FIDSL, called United for
Solidarity (Unidos por la Solidaridad), encourages local governments,
NGOs, Salvadoran organizations, and HTAs abroad to jointly support
development in three major areas: basic social infrastructure, business
investments and public-private partnerships, and the Programa de
Apoyo Temporal al Ingreso (PATI).377 The program helps finance and
build schools, roads, bridges, communal recreation facilities, and health
centers in El Salvador. Its model is based on Mexico’s 3x1 program. Public-
private partnerships involve projects such as building hotels and other
businesses in municipalities through diaspora contributions and FISDL in-
kind support such as facilitation and coordination of projects. Finally, the
Salvadoran government, with financing in part from USAID, also supports
PATI, a program in which young people are remunerated for carrying out
community-service projects. Through this program, the government helps
young entrepreneurs set up small businesses, showcases them online, and
attract Salvadoran diaspora associations to invest in them. The program
benefits over 25,000 young Salvadorans, but is looking for further funding
to expand its capacity and reach. By July 2007 the United for Solidarity
program had held 14 grant competitions and channeled over $11 million
to 45 projects in 27 municipalities throughout El Salvador. Sixty percent
of these funds originated from FIDSL, while 19 percent or roughly $2.13
million came from HTAs and 20 percent from municipal governments.
196
Between 2009 and 2011, the program spent $11 million assisting
11 municipalities and 16,000 individuals most affected after Hurricane
Ida struck in November 2009. In addition, the World Bank and other
international organizations and national governments provided a two-
year budget of $37.7 million to support local and institutional capacity
building.378 The bulk of activities center around offering men and women
aged 16 to 25 from urban slums the opportunity to engage in community
service and job training through the Salvadoran Vocational Training
Institute. Participants receive $100 a month for a six-month period. The
program, first piloted in 11 municipalities hit by Hurricane Ida, benefited
3,829 participants there, as well as another 9,404 participants in an
additional 25 poor municipalities.379
In addition to this program, FISDL administers another successful

program, financed by a $20 million loan from the World Bank, in which
municipalities ask diaspora HTAs to donate to a fund and in addition
receive a certain percentage of funds for a development project.
The GIZ Pilot Project. In 2007 the German International

Assistance (GTZ) agency (later renamed GIZ, or Deutsche Gesellschaft

für Internationale Zusammenarbeit), on behalf of the German Federal
Ministry for Economic Cooperation and Development (BMZ), created a
three-year pilot project on engaging diaspora organizations in Germany
to jointly implement programs that contribute to development in their
countries of origin and offer cofinancing of investments for these social
infrastructure projects.380 The goals of the project were to identify
preconditions for successful cooperation with diaspora communities and
to provide criteria for the practical design of a cooperation arrangement
with diaspora communities for their nonprofit activities.381
In addition to the initiatives supported by GIZ (explained in Box 3 of

Chapter 7 on direct investments), GIZ also supported the German-Moroccan
Competencies Network (Deutsch-Marrokanisches Kompetenznetzwerk,
DMK). DMK, a nonprofit organization headquartered in Munich, brings
together an interdisciplinary network of 460 high-skilled Moroccan
experts and German residents of Moroccan descent (born or residing long
term in Germany) to promote the transfer of technology and knowledge
from Germany to Morocco, support investments in Morocco, and help the
integration of Moroccan immigrants in Germany. DMK’s projects include,
among others, improving IT literacy in Moroccan schools; providing
training in industry at Moroccan universities; promoting scientific
cooperation (including the donation of medical equipment and training)
between the University of Cady Ayyad Marrakech and the University 197
Hospital of Ibn Tofail; offering dual master’s degrees in computer science
between the Technical University of Munich and Al Akhawayn University

in Ifrane, Morocco; offering a mentorship program for Moroccan students
at German universities; and supporting Araganarie cooperatives to market
their products, such as Argan oil, in Germany and other countries.382
C. Pooling Funds via Donor Aggregators
Some organizations rely on their extensive philanthropic networks,

which sometimes transcend national borders, to pool funds together
to offer grants for a variety of local development projects. One of the
strengths of such organizations or initiatives is the relatively active
involvement of local NGOs, diaspora members, and organizations, as well
as foundations and international organizations such as the Inter-American
Development Bank (IDB) that have the capacity to offer matching grants.
Hispanics in Philanthropy (HIP) is a transnational organization,

established in 1983 and headquartered in San Francisco with offices in
New York, Florida, Minnesota, North Carolina, and Mexico, comprised
of over 600 grantmakers representing corporate, public, and private

philanthropies from across the Americas.383 Through its programs,
HIP aims to strengthen relationships, connections, and collaborative
efforts among civil society leaders in a variety of countries and increase
resources for the civil sector in Latin America.384 HIP seeks to increase
resources for the Latino civil sector by leading a funding collaborative,
the Funders’ Collaborative for Strong Latino Communities, which has
raised more than $39 million and has made grants to more than 500
Latino-led nonprofit organizations across the Americas to date.385 HIP’s
commitment to supporting philanthropic activities transnationally lies
in its conviction that members of Latino communities live transnational
lives, sending remittances back home and helping foster development in
their home communities. In the mid-1990s HIP established a program for
staff mentoring and internship exchanges between US and Latin American
foundations and sponsored research on strengthening links between
transnational communities.

HIP’s comparative advantage lies in its ability to aggregate funds
and knowledge from local and US-based funders. HIP partnered with IDB’s
Multilateral Investment Fund (MIF) to establish the Promoting Diaspora
Support for Local Productive Initiatives in Latin America program, a fund
that supports income-generating local economic development projects
backed by Latin American diaspora organizations from Argentina, Mexico,
198 and the Dominican Republic. In addition to MIF and HIP, local in-country
funders also pool their resources to provide matching funds. The general
objective of the project was to improve the economic conditions of
low-income communities affected by migration in Argentina, Mexico,

Dominican Republic, El Salvador, Nicaragua, and Guatemala. The program
has helped support a number of initiatives. Trade for Export Made by
Argentinians, carried out by the Associación Mutual de Empleo y Gestión
Solidarios (Mutual GESOL), was aimed to facilitate and raise the volume
of exported goods produced by over 600 entrepreneurs in Buenos Aires
by connecting them to relevant members of the Argentina diaspora who
could help incubate their products. Other examples include the Marzano
Fammi Olio project that helped 26 small olive producers in Mendoza,
Argentina, improve their social and economic status and the Centro
Humanitario para las Obras y el Intercambio Cultural project that helped
farmers in the mountain regions of Irapuato and Salamanca, Mexico,
establish better production processes for goat breeding.386 Overall, the
project offered grants to six entities (two each in Mexico, Dominican
Republic, and Argentina); raised over $1 million in local counterpart funds;
helped establish local funder networks including the business community;
and conducted capacity-building workshops, informational sessions, and
meetings to share experiences and lessons learned with grantees.

National Financiera (Nafin) is a development banking institution
established by the Mexican government that seeks to promote overall
development and modernization of the industrial sector through a
regional approach by providing credit and technical assistance to micro,
small, and medium businesses in all states in Mexico. The primary sources
of funding are loans from international development institutions (such as
the International Bank for Reconstruction and Development (IBRD), IDB,
and foreign banks) and the placement of securities in international and
domestic markets.
Nafin’s Department of Entrepreneurial Services and Government

Agencies implemented a pilot project in 2002 that channeled remittances
from Mexican migrants in the United States to productive activities in
Mexico. Nafin linked with three sets of partners: Mexican state governments
(Jalisco, Zacatecas, and Hidalgo), the private sector (business advisors and
potential investors), and Mexican HTAs in the United States.387
The projects ultimate goal was two-fold: create a civil association

composed of state representatives, business advisors, and entrepreneurs
and establish a trust fund that would channel remittances and other
grants toward productive investments. More specifically, the project
aimed to help finance 60 new businesses, or expand existing ones. The
project began in 2002, lasted over four years and met most of its goals. 199
Nafin led the creation of:388

ÂÂThree state-level subcommittees composed of state
representatives, business advisors, and Nafi state coordinators
who together identified and vetted feasible project ideas and
communicated with HTAs about these investment opportunities;
ÂÂThree state-level trust funds that channeled investments from
HTAs to 14 businesses (out of 225 proposals received).
According to the project’s final evaluation, more than $3.5 million

was raised from migrants for investment, mostly from individual investors;
56 groups of potential entrepreneurs received technical assistance
in business skills; and three successful businesses are reportedly still
operating.389
Online Donor Aggregators. In recent years, a number of social

entrepreneurs have created online platforms that allow individuals to
pool resources and fund development projects as a group. Two of the
largest and most well-known organizations that fit this category are the
US-based Kiva and GlobalGiving, but each has a different approach toward

philanthropic giving. Kiva allows individuals to lend money for microloans
through microfinance institutions (MFIs) in developing countries.
However, unlike typical loan schemes, loans are interest free — Kiva’s
lenders or investors do not earn any interest on their loans. GlobalGiving
allows people to donate directly to a specific project and aggregates their
contributions. Given the recent establishment of both platforms, their
impact is still relatively unknown. While the founders of both websites
did not create their respective platforms for diasporas, they nevertheless
have the potential to attract diaspora donors. A couple of similar online
platforms — JustGiving and MyCharityPage — allow individuals to create
online pages for fundraising for particular charities or causes. Since 2000
JustGiving has raised over $712 million for 6,300 charities from 6.5 million
donors. Another organization, Wokai, provides microloans to rural Chinese
borrowers.390
Box 1: Turning Philanthropists into Development

Agents: The Challenges
Moving beyond palliative charitable contributions to actions that address the sources of
deprivation, for example, are likely to draw philanthropists into contentious political debates.
Collective action also presents challenges. For example, when migrant organizations pool the
200 donations of many individuals, it is often difficult to identify priorities.
It can also be difficult for philanthropists to find partners in the home country, as many
diaspora members mistrust the established social-service institutions in their countries of
origin.
Diaspora philanthropists make invaluable contributions to their

countries of origin through a variety of means: by providing individual
financial contributions, setting up intermediary institutions and online
platforms that pool funds to finance local development projects, fostering
entrepreneurship and innovation, and creating businesses and jobs.
Such efforts are rooted in diasporas’ long-term interest in helping their
countries develop, enter, and lead the knowledge economy. However,
diaspora philanthropists also face a number of challenges in making their
contributions as effective as they would wish them to be.
Some of these challenges, such as issues of accountability, effective

deployment of resources, agenda setting, structural limits on the impact

of private philanthropy, and representation and achieving scale and
sustainability are common among all philanthropists. In addition to such
challenges, diaspora philanthropists also face particularly difficult issues
in setting agendas and identifying priorities, clearly articulating their
objectives and outcomes, and overcoming a lack of trust in the nonprofit
sector.
A. Set a Clear Agenda and Priorities
Diaspora philanthropists’ objectives may not always align with

those of their origin-country governments. Moreover, some governments
may view identity-based diaspora organizations with suspicion or even
hostility and refuse to support their proposed activities, undermining
cooperation or the execution of projects.
Avoid Ambiguous Objectives
While many foundations or NGOs that fund projects in countries

of diaspora origin are keen to illustrate the concrete impacts that their
donations and programs have on communities, such impacts may not be
sustainable in the long term. Diaspora donors, too, may find it difficult
to effect change and economic development in the long term if they
201
are focused solely on short-term humanitarian actions. HIP has learned,

for example, that funders in Latin America tend to donate to classically
charitable purposes, and most designate funds for projects of their own
interest. A lack of interest in collaborative models that focus on economic
development has limited the amount of counterpart funding HIP has been
able to raise. Nafin has also found that pooling funds from migrant HTA
associations is extremely challenging. Migrants typically use remittances
for basic needs rather than for business investments. As such, they hold
different expectations about returns on investment, where to invest, and
terms of investment, and have difficulties in reaching consensus. Given
their relative lack of expertise on social investments, migrants are hesitant
to invest in such causes.391
B. Address Lack of Trust in the Nonprofit Sector and

Institutions
A general lack of trust in the nonprofit sector and charitable

institutions in countries of diaspora origin may lead migrants to focus
their contributions on family members and established institutions. While

such contributions may produce effective outcomes, they may not be the
most optimal social investments for sustainable development outcomes.
For example, one difficulty faced by El Salvador’s United for Solidarity
Program is generating enough interest among the Salvadoran diaspora
to contribute to development projects in El Salvador. Salvadorans have
had bad experiences in the past and mistrust public institutions due
to their lack of transparency. To mobilize remittances from diaspora
groups, public and private philanthropic institutions should increase and
improve communication with HTAs and educate them on organization,
entrepreneurship, and investment opportunities in their home countries.
C. Find the Right Public and Private Partners
Governments and multilateral institutions must be prudent when

finding partners within diaspora communities to fund and implement
development projects. Not all diaspora organizations are able to represent
the interests of their communities as some have divisive political or
religious affiliations with political parties, religious sects, clans, or tribes in
their countries of origin. Other donors should ensure that, while diaspora
partners play an integral role in philanthropic development efforts,
they do not cause a backlash within the diaspora community or in the
202 countries to which they hope to provide aid. Nafin, for example, has found
it challenging to find the right partners for development projects. It points
out that the project should have a broader outreach and coordinates its
efforts with IME so that migrants interested in investing in any Mexican
state are able to connect with local partners and financial institutions in
that state.
Some organizations have also discovered that in some diaspora

communities, the younger the migrant, the less he/she identifies with the
community of origin, and the more stable the migrant, the more likely he/
she is to be interested in investing. Understanding the target population
is an important first step before implementing any philanthropy-based
development initiative.
D. Choose Implementing Agencies and Partners with Expertise

and Experience
Expertise and experience in carrying out philanthropy-driven

development projects are key to the success of any initiative. HIP, for
example, has expertise in capacity building and fundraising, while local
NGOs to whom it offers funds have experience in executing projects.
Nafin’s pilot project ran into several obstacles, one of which was that its

employees working on the project lacked experience in starting businesses
or investing. One of the lessons learned from the experience was that
successful business investments involve more than simply training
entrepreneurs. Executing agencies must also possess business expertise
or otherwise form partnerships with institutions that do, such as private
sector entities or nonprofits that run social enterprises.392
IDB’s experience in the Americas also suggests that many diaspora

groups have “traditionally focused their efforts on advocacy, public policy,
community development, and other social aspects,” and “have limited
knowledge and experience with microenterprises.” IDB finds that this can
slow down program implementation. In the implementation of it project
with HIP, for example, IDB highlights three sets of lessons:393
ÂÂSome of the most successful diaspora linkages have occurred

through close family and friendship ties to individuals living
abroad who can make in-kind donations, such as land donations
or volunteering their time, to projects.
ÂÂThe culture and level of engagement with the home country vary
among diaspora groups with the Mexican diaspora as the most
organized due to its relatively longer history with social investment
programs such as the 3x1 program.
ÂÂGenerally, NGOs in Latin America require more training in business
management and leadership to be able to support cooperatives or
203
community enterprises on a larger scale.

E. Expect the Unexpected
The economic and financial crisis that has hit markets around the
world has also had an impact on social investment. HIP, for example, which
works on developing local philanthropy in Latin America by conducting
joint ventures with the diaspora, has found it difficult to implement its
projects in recent years. Low-income migrants have suffered higher
unemployment rates in the recession than other groups, and have less left
over to contribute to collective causes after sending family remittances.
Many middle-income and even wealthy individuals, including diaspora
members, have seen their net worth reduced sharply with the declines
in real estate and financial markets, and may thus reduce their charitable
giving. But growing inequality has seen a continuing rise in the ranks of the
extremely wealthy, and their philanthropic contributions may continue to
increase. The first generation of diaspora billionaires, many of whom are
deeply involved in philanthropic activities, may fuel a boom in diaspora
philanthropy when the international economy finally emerges from the
period of low growth following the Great Recession.

Chapter 10: Capital Market Investments
Financial flows from migrants and their descendants are at the

heart of the relationship between migration and development. Policy
attention has focused on the largest and most visible of these flows
migrants’ remittances and, to a lesser but growing extent, the direct
investments that diaspora entrepreneurs make in businesses in their
countries of origin. The third major category of private financial resources
that originate from diasporas, capital market investments, are much less
understood and examined. Capital markets are absolutely fundamental
to development, as they are the institutions that mobilize savings for
investment, providing the long-term funds that power wealth creation
(and, in financial crises, wealth destruction). They include markets for
stocks (equities), bonds, loans, asset-backed securities (as in commodity
markets), and a complex array of instruments derived from one or more
of these (derivatives). Collectively, this kind of investment is known as
indirect, or portfolio, investment.
Diaspora members have substantial financial assets beyond their

current income, including savings and retirement accounts, real property,
and investments in stocks, bonds, and other financial instruments.394
Governments, banks, and businesses in countries of origin have a strong
205
interest in creating financial instruments that can attract these diaspora
savings into investments that contribute to sustainable development. CHAPTER 10: CAPITAL MARKET INVESTMENTS
Diaspora investors tend to have different perceptions of risk than

non-diaspora investors. Given their homeland connections, diaspora
members may have better information about investment opportunities
in their countries of origin and are less sensitive to exchange-rate risks
than other investors, because they have domestic-currency obligations in
their country of origin such as support payments to family members or
running costs of domestic businesses, mortgages, or returns to domestic
share-holders. They also may have a different time horizon. While most
investors in emerging markets have a fairly short timeframe for profit
expectations, many diaspora investors are willing to capture return on
their investments over a longer period. They may even be willing to accept
lower returns than they might otherwise secure, as a ‘patriotic discount,”
on investments in the homeland.

It should be noted, however, that it is difficult, if not impossible,
given available data, to identify mainstream capital market participation
by diasporas. Investments made by diaspora members in conventional
investment vehicles open to all investors are indistinguishable from other
foreign investments. But governments and businesses in some countries
of origin have created financial instruments especially designed to tap into
the wealth of diaspora populations. While some are aimed at high-net-
worth individuals, some are accessible to small-scale savers. Policymakers
have not yet tapped the potential of devising reliable and investor-friendly
mechanisms and instruments that allow migrants (and other small-scale
savers) to invest in capital markets without undue exposure to risk.
There are a variety of vehicles that governments use to mobilize

diaspora wealth via capital markets. These include:
ÂÂSpecial deposit accounts denominated in local and foreign

currencies;
ÂÂTransnational loans that allow diasporas to purchase real estate
and housing in their countries of origin;
ÂÂDiaspora bonds allowing governments to borrow long-term funds
from diasporas;
ÂÂThe securitization of future remittance flows that allow banks
206 to leverage remittance receipts for greater borrowing at lower
interest rates.
CHAPTER 10: CAPITAL MARKET INVESTMENTS
This section discusses three of the above instruments, namely

special deposit accounts, diaspora bonds, and transnational loans.
Securitization of remittance flows is discussed in Chapter 6.
A. Creating a Special Category of Deposit Accounts
A number of countries, such as Bangladesh, India, and Tunisia, have

introduced a special category of deposit accounts at commercial banks
in countries of origin, where members of the diaspora can deposit their
savings. Holders of such special accounts are given preferential interest
rates as well as the option of having accounts denominated in a foreign
currency. In some cases, interest from such accounts is fully or partly tax
exempt. Economists Christian Dustmann and Josep Mestres estimate

that between 1992 and 1994, approximately 48 percent of immigrant
households in Germany maintained savings in their countries of origin.395
Allowing diaspora members to set up savings accounts in their

countries of origin not only allows banks to expand bank capitalization for
lending and onward investment, but also offers diasporas the opportunity
to participate in capital markets in their countries of origin. (In many
countries, holding a bank account in a country is often a prerequisite for
investing in capital markets.)
Bank accounts that are denominated in foreign currencies can offer

some advantages to diasporas. First, in offering such foreign-currency
denominated bank accounts, banks are the ones that shoulder the risk of
foreign exchange. If account holders hold currency in local denomination,
they are the ones who bear foreign currency risks. Foreign currency
deposit (FCD) accounts have often been used by domestic savers to
maintain the real value of their savings during times of macroeconomic
instability. Some banks may also offer two types of FCD accounts: current
and fixed-term deposit accounts. Current deposit accounts allow account
holders to withdraw funds whenever they choose, while fixed-term
deposit accounts, in return for higher rates, impose some time restrictions
on when account holders can withdraw their principal without paying a
penalty.
In recent years, a number of developing and emerging economies

— including Albania, Ethiopia, India, Kenya, Nigeria, Sri Lanka, and Turkey
— have liberalized their banking regulations to attract diaspora savers to 207
FCD accounts.396
National Bank of Ethiopia. In 2004 the National Bank of Ethiopia
created FCD accounts specifically targeting members of the Ethiopian
diaspora to invest domestically. National Bank of Ethiopia Directive
No. FXD/31/2006 created a foreign currency account that nonresident
Ethiopians and nonresident foreign nationals of Ethiopian origin (and
their respective businesses) could open. These accounts are denominated
in three currencies — the US dollar, British pound, or euro — but banks
can also accept deposits in other convertible currencies, including the
Canadian dollar, Saudi riyal, Japanese yen, Australian dollar, and United
Arab Emirates (UAE) dirham.397 Those residing abroad can open accounts
either in person or by post. The minimum amount required to open an FCD
account is $5,000 or its equivalent in any of the accepted currencies, and
the maximum deposit amount is $50,000. Among other things, holders of
FCD accounts can use them as collateral or a guarantee for loans or bids

and to make local payments in Birr. According to the directive, interest
is not paid to nonresident foreign currency current accounts, but banks
have the freedom to set their own interest rates for nonresident foreign
currency fixed accounts.
Central Bank of the Republic of Turkey. The Central Bank of the

Republic of Turkey also offers foreign-currency-denominated fixed-term
deposit accounts and “Super FX” accounts for Turkish passport holders
residing abroad. FCD fixed-term accounts can be denominated in euros,
US dollars, British pounds, or Swiss francs; require a minimum deposit of
the equivalent of $1,000 for at least two years; and pay an annual interest
rate of 0.25 percent for all currencies. Super FX accounts are available in
euros and US dollars; require a minimum deposit of €5,000; must be held
for one, two, or three years; and earn annual interest rates of 1 percent
for accounts denominated in euros and 0.25 percent for those held in US
dollars.398 Eligible individuals can open accounts at the bank’s branches
in Turkey and at partner banks in the Netherlands, the United Kingdom,
Germany, France, and the United States.
India’s NRI Deposit Accounts. Nonresident Indians (NRIs) have

the option of holding their savings in foreign currency or in rupee-
denominated accounts in India. As of March 2010, NRIs held an estimated
$14.3 million in foreign-currency-denominated accounts and $33.6 million
in rupee-denominated accounts.399 The Foreign Currency (Non-Resident)
Account (Banks) scheme can be denominated in British pounds, US dollars,
Japanese yen, euros, Canadian dollars, and Australian dollars. The accounts
208 are available for fixed terms of not less than one year and not more than
five years. The accounts can also be used to obtain loans in India and
abroad, both in domestic and foreign currencies. Loans made in India to
the account holder must be used for personal purposes or for carrying out
business activities; direct investment in India on a nonrepatriation basis by
way of contribution to the capital of Indian companies; and acquisition of
real estate in India for personal residential use. However, loans cannot be
used for on-lending, for carrying out agricultural or plantation activities,
or for investment in real estate businesses.
B. Offering Diaspora Bonds
In recent years, governments have been increasingly using their

consular networks to sell diaspora bonds, designed to tap into diaspora
assets. The issuance of diaspora bonds is a form of innovative financing
that can help developing countries support infrastructure projects.
Issuers of diaspora bonds gain access to fixed-term funding, often at

discounted interest rates due to a “patriotic discount,” or the difference
between the market interest rate for government debt and the interest
rate that diasporas are willing to accept given their attachment to their
country. However, Israel, India, and other countries learned that this
“patriotic discount” is often small in reality and sometimes does not
materialize. The larger advantage of issuing diaspora bonds is that they
can mobilize relatively small amount of funds from the diaspora into
substantial resources for development.400 Importantly, the default risk
normally associated with international sovereign-debt holdings may be
reduced for diasporas. Diasporas view the country’s ability to pay interest
and principal in local currency as relatively strong and thus find diaspora
bonds attractive.
A number of governments have issued bonds to raise capital among

their diasporas. Israel has issued diaspora bonds annually since 1951
through the Development Corporation to raise long-term infrastructure
investment capital. Egypt reportedly issued bonds to Egyptian workers in
the Middle East in the late 1970s. India issued diaspora bonds in 1991,
1998, and 2000 to avoid balance-of-payments crises and to shore up
international confidence in India’s financial system during times of financial
sanctions or special needs. Sri Lanka has offered Sri Lanka Development
Bonds since 2001 to a number of investor categories including nonresident
Sri Lankans, while Ghana offered Golden Jubilee savings bonds in 2007.
Finally, Ethiopia issued the Millennium Corporate Bond in 2008 to raise
capital for the state-owned Ethiopian Electric Power Corporation (EEPCO)
in an effort to expand its distribution grid.401
209
A number of other governments, including a rather desperate
Greek government, have tried to raise money through the issuance of
diaspora bonds. In March 2011 Greece announced that it was looking
to raise $3 billion in a series of quarterly sales, primarily from wealthy
members of its diaspora population, and began bond sales to investors
in the United States. Credit rating agencies, including Moody’s, have
downgraded Greece, giving it a junk rating. Though members of the Greek
diaspora, which numbers 11 million, may have emotional attachment to
their homeland, more is required to draw substantive investment. The
government needs to market its bonds with care and wisdom, enticing
members of the diaspora with long-term visions of development and
economic growth.
Further, the World Bank is advising a number of countries, such as

Kenya, Nigeria, and the Philippines, on the issuance of diaspora bonds.
Despite improvements in credit ratings among a number of developing

and emerging economies, governments must still face the challenge of
convincing members of their diaspora to purchase government bonds. It
is particularly difficult to get individuals who have fled countries due to
oppressive governments to invest in their countries of origin. Ethiopia,
for example, has failed to raise enough money through its issuance of
diaspora bonds.402
Golden Jubilee Savings Bonds. In 2007 the Ghanaian government

issued $50 million worth of five-year “Golden Jubilee” savings bonds,
available for purchase at approved financial institutions until June 2008,
to both Ghanaians living in Ghana and abroad. Its objective was to raise
money for infrastructural development projects in all ten regions of
the country, raise awareness of the importance of saving, and diversify
financial instruments on offer to the market. Holders of the accrual
bonds do not receive the fixed 15 to 15.5 percent interest, compounded
semiannually, until redemption.403 Unfortunately, according to Strategic
African Securities Limited (SAS), the lead advisors of the bond, Ghana’s
efforts, such as Ethiopia’s in 2008, failed to produce substantive results
as it managed to raise only 20 million of the expected 50 million Ghana
cedis.404
State of Israel Bonds. State of Israel bonds are securities issued by

the Israeli government through the Development Corporation of Israel
that are marketed to the Israeli diaspora in particular to help build the
nation’s infrastructure. Sixty years after David Ben-Gurion established
the program in 1951, State of Israel bonds have raised over $33 billion.405
210 Today, Israel considers the issuance of these bonds as a stable source of
overseas borrowing and an important mechanism for maintaining ties
with its diaspora. Investors have a number of options including multiple
maturity and minimum subscription options that sell for as low as $100
and as high as $100,000. With capital inflow generated through the
issuance of these bonds, the government has spent over $26 billion for
transportation, energy, telecommunications, water resources, and other
essential infrastructure projects.406
Grand Ethiopian Renaissance Dam Bond. In 2011 Ethiopia

launched its second diaspora bond, the Renaissance Dam Bond, to fund
the construction of the Great Renaissance Dam, designed to be Africa’s
largest hydroelectric power plant. The issuance of its second diaspora
bond, which looks to raise $4.8 billion, follows on its initial effort to raise
money for EEPCO through its Millennium Corporate Bond. However,
the first bond did not reach its financial targets due to risk perceptions
among investors with respect to EEPCO, the government, and the political

environment in Ethiopia. The Renaissance Dam Bond is available in
minimum denominations of $50 and transferrable to up to three people.
Buyers are given the option of purchasing bonds with a five-year or a five-
to-ten-year maturity as well as choosing between bonds with or without
interest. Bonds issued in the local birr currency are available in five-year
and over-five-year maturities. Five-year bonds have a 5.5 percent yield
while over-five-year bonds yield 6 percent interest.407 Moreover, the
government is covering any remittance fees associated with the purchase
of these bonds. The bonds are available in foreign currencies as well as in
the local birr. The Commercial Bank of Ethiopia (through its branches), the
Ethiopian embassies and consulates, and other representative offices are
responsible for selling the bonds in foreign currencies. It remains to be
seen how the diaspora bond fares, but this does not change the fact that it
is an innovative mechanism for diverting investment toward public social
service and infrastructure projects.408
C. Offering Transnational Loans to Diasporas and their Families
Members of the diaspora residing abroad are able to apply for and
obtain small transnational loans in their countries of origin from banks or
microfinance lenders. Financial institutions issue transnational loans for
business expansion, home improvement, home purchase, and education
expenses, but have found mortgage lending to be most successful. By
obtaining transnational loans, migrants living abroad are able to provide
credit to family members back home. In general, migrants cannot use
assets that they possess abroad as collateral for transnational loans due
to differences in bankruptcy laws and enforcement between countries. 211
Pag-IBIG Overseas Program. Several public and private entities offer CHAPTER 10: CAPITAL MARKET INVESTMENTS
transnational loans for a variety of purposes. The Philippine government’s
Pag-IBIG Overseas Program, for example, allows overseas Filipino workers
to access short-term loans under the Multi-Purpose Loan Program (to
help finance members’ immediate medical, educational, or livelihood
needs; minor home improvements including the purchase of furniture and
appliances; and other related needs) and the Calamity Loan Program (for
those in need of financing due a recent calamity). In addition, overseas
Filipino workers can also access a housing loan under the End-User
Financing Program or the Magaang Pabahay, Disenteng Buhay Program.
To be eligible for a housing loan, overseas Filipino workers must be a
member of the Pag-IBIG and have made remittance contributions to the
Pag-IBIG Fund for at least 24 months at the time of the loan application.409

Microfinance International Corporation (MFIC). Since 2006
MFIC, a US-based financial services corporation, has partnered with
microfinance lenders and remittance transaction operators in El Salvador,
Guatemala, and the Plurinational State of Bolivia to provide transnational
mortgage loans to immigrants in the United States and Spain. MFIC links
remittances to housing microfinance. Partnering with two microfinance
institutions (MFIs) — Apoyo Integral de S.V. and Sociedad Cooperativa de
Ahorro y Crédito (AMC) — MFIC launched a pilot program in El Salvador
in September 2006. Under the program, the MFIs and MFIC shared
50 percent of all risk and revenues for each transnational loan made
to unbanked Salvadorans living in the Washington, DC metropolitan
region for the purpose of home and land purchases, construction or
home improvement, investment in existing businesses, or educational
expenses. MFIC conducted loan interviews and credit analyses, verified
and processed loans, and administered and collected loan payments.
MFIs, on the other hand, appraised properties, evaluated business plans
and any co-borrowers, dealt with loan documentation, and disbursed the
loan. In general, loans ranged from $8,000 to $40,000, had terms of 10
to 15 years, used property or business assets in El Salvador as collateral,
and charged interest rates of between 12 to 16 percent. The program
brokered seven transnational loans with an outstanding loan portfolio of
$132,000, but received 118 applications —29 of which were denied and
82 of which were ineligible.410
In 2010 MFIC secured a strategic partnership with Fedecredito, the

largest federation of credit associations and workers’ banks in El Salvador,
212 to establish a transnational mortgage loan program that would allow
Salvadorans residing in the United States to finance purchase of a house
in El Salvador.411 Under the program, clients could apply and repay the
mortgage loan at Alante Financial, an MFIC-owned financial institution

targeting immigrants in the United States.
A number of financial instruments, including special deposit

accounts, diaspora bonds, securitization of future remittances, and
transnational loans, can help countries tap into the wealth of the diaspora.
Such approaches enable governments to not only rely on migrants’
current income but also on their savings and to focus more on long-term
investments and capitalization of their markets. With the right mix of
instruments and appropriate marketing, countries can potentially attract

more investment, which fosters the growth of domestic capital markets,
raises sovereign creditworthiness, and creates a virtuous cycle leading to
sustainable development. However, governments face a number of key
challenges in promoting such instruments and making investment work
for their national development.
A. Help Improve Transparency and Increase Faith in Local

Financial Institutions and Businesses
Special category deposit accounts, diaspora bonds, the securitization

of future remittances, and transnational loans are among the financial
instruments whose potential have yet to be fully exploited. Multilateral
institutions as well as public and private institutions can help developing
countries improve their banking sector and raise credit ratings. One of the
fundamental challenges for many countries that lack foreign investment
is the perception of economic, political, or social risk among the diaspora
and general investors. While members of the diaspora may have a desire
to contribute to development in their countries of origin given their home
bias, inherent political risks can hinder their contributions. Therefore,
there is a need to address fundamental governance issues in parallel with
encouraging investment in countries of diaspora origin.
B. Increase Knowledge and Expertise about Financing Vehicles

Targeting the Diaspora
While debt instruments such as diaspora bonds can have a positive 213
impact on a country’s development (as Israel has experienced, for example),
the majority of policymakers and diaspora communities have limited
awareness about this financial instrument.412 Moreover, governments are
often deterred by complex regulatory requirements for issuing diaspora
bonds abroad. For example, if a country wishes to issue diaspora bonds in
the US retail market, it must register its product with the US Securities and
Exchange Commission (SEC), whose disclosure requirements are relatively
rigorous. In addition, governments must pay a relatively high fee to issue
a diaspora bond in certain markets. In the United States, for example, fees
can exceed $500,000. Governments should therefore strategically select
countries whose regulatory requirements are less stringent than the
United States, whose issuance fees are lower, and where large diaspora
populations are present.413

C. Promote International Agreements on Regulation and
Enforcement
The divergence of national bankruptcy laws can hinder the

implementation of transnational loan programs and other financing
vehicles. Governments should strengthen international cooperation to
facilitate the transnational mobilization of assets, for instance, by agreeing
on mutual enforcement of bankruptcy laws (which would enable banks to
accept assets held abroad as collateral for lending) and harmonizing and
sharing credit scores.414
D. Move Away from Stopgap Measures and Toward Long-Term

Capitalization of Markets
If governments maintain attitudes and policies that favor short-

term gain over sustainable long-term growth, they are unlikely to attract
diasporas to invest in their countries. For example, when issuing diaspora
bonds, governments cannot solely rely on “patriotic discounts” to raise
sufficient capital to fuel development. Rather, they must assure and
convince potential diaspora investors that their investments will produce
positive returns and outcomes over the long term. Other possible options
to attract investors would be to offer tax advantages for purchasers of
diaspora bonds.415
E. Overcome Legal and Technical Issues in Issuing Financing

214 Instruments
While transnational loan schemes can help migrant families

purchase homes or start businesses in their countries of origin, there are

a number of challenges that must be addressed. For example, MFIC found
that the 50-50 percent risk-sharing arrangement between MFIC and MFIs
was difficult to implement. It also found that if a client were to default on
his/her loan, MFIC could take no legal action in the United States. Different
institutions underwriting the policy also produced varying assessments
on the level of credit risk of loan clients. Many clients also lacked key
information on the valuation of property or businesses. Further, MFIC also
faced other legal questions such as whether or not it was appropriate to
offer a loan to an undocumented immigrant who otherwise qualified for
one.416

Chapter 11: Diaspora Tourism
Global tourism is a dominant economic sector in many developing

countries. In 2010 international tourist arrivals numbered 940 million and
tourism receipts generated $919 billion.417 While France remained the
world’s number-one tourist destination, China became the world’s third-
biggest tourism spender. In the first four months of 2011, international
tourist arrivals grew by 4.5 percent despite turmoil in certain regions of
the world, notably the Middle East and North Africa, which experienced
7 percent and 11 percent decreases in tourist arrivals respectively.
Some regions achieved double-digit growth in tourism; South America
experienced a 17 percent increase, South Asia a 14 percent increase, and
South-East Asia a 10 percent increase.418
For many developing countries, tourism serves as a primary

source of foreign exchange earnings, fuels job creation, and stimulates
other sectors, such as natural resource conservation, that are important
for development. In fact, the share of international tourist arrivals in
emerging and developing countries has risen over the past two decades,
from 31 percent in 1990 to 47 percent in 2010.419 The average annual
growth in international tourist arrivals between 2000 and 2010 was 5.6
percent among emerging economies, a much higher growth rate than the
annual 1.8 percent among industrialized economies.420 In 1990 emerging
economies had 139 million tourist arrivals compared to 296 million among
industrialized economies, but by 2010 the gap had decreased dramatically:
emerging economies and advanced economies had 442 million and 498
215
million tourist arrivals, respectively.421
CHAPTER 11: DIASPORA TOURISM
Diaspora populations can play a unique and important role in

opening markets for new tourism destinations as well as markets for
goods produced in and associated with the cultures of their countries of
origin. Tourists from the diaspora are more likely than other international
travelers to have or make connections with the local economy. They may,
for example, opt to stay in small, locally owned accommodations (or with
relatives), eat in local restaurants, and shop in locally owned shops rather
than go to enclave tourist destinations that are isolated from the local
culture and economy.

Given the unique role that diaspora populations can play in helping
developing countries expand their tourism sectors, some governments
and organizations have already begun to encourage and promote tourist
visits from diaspora communities. The National Union of Eritrean Youth
and Students, for example, has for the past ten years organized a yearly
“visit your country” trip to Eritrea to foster long-lasting ties between the
home country and the diaspora. Many Eritreans abroad have purchased
homes in Eritrea with a view to retiring in their homeland.422
At least three major types of tourism attract diaspora visitors:

medical tourism, business tourism, and above all heritage tourism.
A. Promoting Medical Tourism
A number of countries and regions market themselves as

destinations for medical tourism by offering high-quality medical
infrastructure, expertise, and services at competitive prices. The
Philippines, India, Taiwan Province of China, and Cuba, for example, all
have strong medical tourism campaigns that raise awareness among and
seek support from diaspora members regarding their medical services.
As a result, many diaspora members have invested, volunteered, or
made philanthropic contributions to the medical sectors of their home
countries. In general, however, it is difficult to grasp the scale of diaspora
investment and participation in medical tourism, since investments are
not disaggregated by population. Countries including the Philippines,
Colombia, and Estonia have also made medical tourism a focus of their
216 overall strategy for attracting tourists but could do more to connect to
their diasporas.
B. Promoting Business Tourism
When diaspora groups or individuals visit countries for business,

including for occasions such as corporate retreats, they inevitably utilize
conference facilities and hotels. Governments, in partnership with private
companies, market such conference facilities and accommodations to
business leaders and professional associations through websites. To
court high net-worth members of the diaspora, governments and local
companies can work in tandem to actively promote and introduce
business opportunities to potential investors or entrepreneurs, combining

information sessions and site visits to local businesses with tourist
excursions to local attractions. Establishing good relationships with
potential business partners can serve as a key strategy in attracting long-
term investments to fuel sustainable growth in the tourism sector.
C. Promoting Heritage Tourism
Heritage tourism centers on history, culture, and identity. The term

is often used to refer to visits to cultural heritage sites, such as those
designated as World Heritage Sites by the United Nations Economic, Social
and Cultural Organization (UNESCO). In 2011, 48 percent of all UNESCO
World Heritage Sites were located across 50 European and North American
countries, while 9 percent were found in 30 African states, 7 percent in 16
Arab states, 22 percent in 31 Asia-Pacific states, and 14 percent in 26 Latin
American and Caribbean states.423 Such sites attract many international
tourists every year and serve as an important development resource for
poor countries as they attract international funds for their restoration and
preservation in addition to regular tourist revenue.
1. Genealogy Tourism
Heritage tourism also takes other forms that specifically involve

diasporas. Genealogy tourism, for example, enables members of the
diaspora to research their family trees and ancestry in their countries
of origin. A few public-private initiatives have helped diasporas locate
documentation on and the graves of their ancestors. “Discover Ireland,”
organized by the National Tourism Development Authority of Ireland,
for example, has a “Tracing Your Ancestors” section on its website that
suggests relevant background information that diaspora members
can gather to make their next trip to Ireland even more worthwhile.424
217
Similarly, Visit Scotland’s AncestralScotland also offers a Research Your
Roots service through its website and helps diaspora Scots to retrace their
ancestry.425
In an effort to boost philanthropy and tourism in India, the Indian

government offers a program through its Ministry of Overseas Indian
Affairs (MOIA) that allows persons of Indian origin, particularly those
who are descendants of slaves or indentured servants in the Caribbean,
Mauritius, and Fiji, to apply to have their roots traced in the states of Uttar
Pradesh and Bihar.426 Finally, African diaspora tourism or “Roots” tourism
is a subset of genealogy tourism targeting African Americans who wish
to discover more about their ancestry in Africa. UNESCO, for example,

supports the development of the African Diaspora Heritage Trail (ADHT),
an initiative launched by the government of Bermuda in 2002 to preserve
and explain the artifacts of slave life and the slave trade.427
2. Cultural Celebration
Governments can also attract attention from both within and

outside their countries when they support and celebrate national
anniversaries or cultural heritage through annual celebrations or festivals.
The Scottish government, for example, organized Homecoming 2009, an
event that attracted 72,000 visitors from outside Scotland to assemble
in the country to celebrate Scottish culture, heritage, and contributions
to the world. Of the 72,000 visitors, 23,000 cited the Homecoming event
as one of their reasons for traveling to Scotland. Total expenditures for
the event were £53.7 million, and the return on investment was 1:9.8,
exceeding original expectations of 1:8.
According to a survey of event organizers, 67 percent highlighted

new marketing activities as a benefit of the event, while 84 percent
pointed to being able to target new audiences as a plus.428 While a March
2010 government review of the event stated that Homecoming 2009 had
a positive impact on local tourist initiatives, others pointed out that the
campaign did not generate as much money as organizers had expected, and
many vendors and service providers went unpaid. From the perspective of
engaging the Scottish diaspora, the share of diaspora visitors was relatively
low. Only 8.6 percent of visitors to Homecoming 2009’s funded events
and 4 percent of all visitors came from overseas, while the remainder
came from local areas elsewhere in Scotland or elsewhere in the United
218 Kingdom.429 Homecoming 2014 has been confirmed and will coincide with
the Commonwealth Games, Ryder Cup, and the 700th anniversary of the
Battle of Bannockburn.430
3. Religious or Faith Tourism
The number of individuals visiting destinations around the world

for religious or spiritual reasons is on the rise. North Americans alone
spend over $10 billion annually on religious tourism, traveling as groups or
individuals for pilgrimage, missionary, volunteer, or fellowship purposes.
Every year, approximately 2 million Muslims visit Mecca in Saudi Arabia
for the Hajj, an estimated 70 million Hindus visit the Ganges River each
year in January and February,431 and many migrants visit the shrines of

local Sufi saints. Other tours involve visiting birthplaces of major religious
figures, such as Pope John Paul II’s home country, Poland.
4. Birthright Programs
Birthright programs aim to deepen the ties between diaspora

communities and their ancestral homelands. Most countries with such
programs tend to have a strong sense of national identity that transcends
territory, a closely knit transnational community, and a firm commitment
to perpetuating their identity, especially among second and subsequent
generations. Exposure programs offer study tours for youth, academic
exchange programs, and VIP tours for business travelers and government
officials. Such tourism programs are usually offered under public-private
partnerships and offer intense emotional engagement with the country
of origin.
Taglit-Birthright Israel. Since 1999, Israel has invited hundreds of

thousands of Jews aged 18 to 26 from all around the world, who have
neither traveled to Israel on a peer educational trip or study program nor
lived in Israel past the age of 12, to visit Israel on an all-expenses-paid ten-
day tour to deepen their political and ethnic attachment to Israel. The cost
of each individual trip is about $3,000. Taglit-Birthright trips, sponsored
by the Birthright Israel Foundation, the government of Israel, and Jewish
communities around the world are organized by 20 accredited organizers
in North America, Central and South America, Europe, Asia, South Africa,
India, and Australasia two times a year (one in summer and another
in winter).432 The program received over 22,000 applications for trips
organized between November 2011 and March 2012, but due to funding
limitations accepted only 15,000 participants from over 50 countries,
11,300 of whom come from North America.433 By 2013 Taglit-Birthright 219
Israel aims to increase its capacity to 51,000 participants annually. The
organization estimates that at the current rate, within a decade one
out of every two Jewish youth worldwide will have participated in one
of its trips. In January 2011 the government of Israel pledged a $100
million contribution over the next three years, contingent on other funds
raised in North America and worldwide.434 According to a recent study
by Brandeis University’s Maurice and Marilyn Cohen Center for Modern
Jewish Studies, participants on the ten-day Israel trips are more confident
advocates for Israel, more likely to feel connected to Israel, and 51 percent
more likely to marry a Jewish person than their peers who applied for but
did not go on a Birthright trip.435

Birthright Armenia. Birthright Armenia, inspired by Taglit-Birthright
Israel, is a program that offers young diaspora members internships and
community service placements that last from eight weeks to a year in
Armenia. Its vision is to make service to and experiences in Armenia an
essential rite of passage for Armenians living all around the world and to
educate Armenian diaspora youth about the social, cultural, economic,
and political issues and needs of Armenia so as to contribute to its
development. Eligible participants are those who agree to take on at least
four weeks of volunteer work for a sponsoring organization in Armenia, are
of Armenian heritage (have at least one grandparent from Armenia), have
graduated from high school, and are between the ages of 20 and 32. The
volunteer program promotes leadership, a shared Armenian identity, and
cultural ambassadorship. Upon completion of their experiences, program
alumni return to their countries of residence and participate in alumni
and networking programs, acting as informal advocates of Armenia.
Volunteers who participate in the program come from all over the world:
68 percent from the United States, 12 percent from Canada, 11 percent
from Europe, 5 percent from the Middle East, 3 percent from South
America, and 1 percent from Australia.436 These volunteers participate in a
variety of sectors: 44 percent in nongovernmental organizations (NGOs),
26 percent in government organizations, 16 percent in the private sector,
and 14 percent in international organizations. The program offers travel
fellowships to those eligible, makes host family living arrangements,
organizes unique excursions across the country, and prepares language
classes and forums. Prior to arrival in Armenia, participants undergo online
Eastern Armenian language training to achieve a basic level of proficiency
in the language.
Lakbay-Aral Program. Translatable into English as “travel study,”

this two-week cultural immersion program in the Philippines is offered to
220 young Filipinos over 15 years of age living overseas. Since the Commission
on Filipinos Overseas (CFO) established the program in 1983, it has
enabled Filipino youth overseas to appreciate their Filipino roots through
lectures on Philippine history and language and guided tours to scenic

and historical landmarks. Program participants also have opportunities to
meet and interact with Filipino students, public officials, and members of
indigenous communities as well as to participate in local festivities. CFO
has conducted trips over 15 trips and selected a total of 180 participants
from France, Spain, Switzerland, and the United States. In addition, in
September 2011 CFO organized a nine-day YouLeaD Experience program
that involved 100 young Filipino leaders aged 16 to 34 who assembled
in Manila and Palawan. Selected young leaders also participated in the
three-day Global Summit of Filipinos in the Diaspora in Manila.437

Nepomak Discover Cyprus Program. In 2004 the government of
Cyprus, in partnership with the University of Cyprus and the Youth Board
of Cyprus, developed the Nepomak Discover Cyprus Program (NDCP) in
response to the demands of young Cypriots who wanted to connect with
their roots. Every July, roughly 50 successful Cypriot applicants, aged 18
to 22, from eight participating countries undertake a three-week intensive
language course at the University of Cyprus’s School of Modern Greek in
addition to a series of excursions to museums, monasteries, and the Green
Line that separates Northern Cyprus from the rest of the island. During
the selection process, priority is given to individuals from disadvantaged
socioeconomic backgrounds who may have fewer opportunities to visit
Cyprus and/or are unable to interact with diaspora communities. To date
over 400 individuals have participated in NDCP. As a voluntary international
NGO, NDCP relies on the support of its sponsors to fund scholarships that
cover the cost of excursions, airfare, accommodation, and course fees.438
2 Challenges for Diaspora Tourism
The many forms of diaspora tourism provide a wide range of

opportunities for developing countries to grow their tourism sectors and
thus contribute to their economic development. However, nations must
take into consideration a number of important factors that may influence
the level of diaspora tourism (and tourism in general) in their countries.
A. Ensure Fundamental Safety and Security
Diaspora members are as sensitive as any tourists to the threats

posed by armed conflict, lawlessness, pervasive corruption, and dangerous 221
transport infrastructure. Governments should ensure that they are able to
satisfy basic safety and security standards if they seriously wish to increase
tourism levels in their nations.
B. Keep Benefits in the Target Communities/Nations
While tourism is a fun, educational, and sometimes emotional

activity for visitors, it is also a lifeline and way of life for many locals.
To maximize the development potential of tourism, governments and
other organizations should promote programs and trips that deepen
connections and relationships between tourists and host populations.
Diaspora tourists bring unique benefits to the tourism industry as they are

more likely to have the linguistic skills, contacts, and general knowledge
necessary to actively engage with local people and businesses.
C. Respect Visiting Diasporas
Governments and tourist industry leaders should be extremely

sensitive to any trends of hostility or unwelcoming attitudes toward
tourists, including those from the diaspora. For all their connections
and even family members, diaspora members are perceived differently
from locals; some members of the community may even resent diaspora
members with whom they feel socioeconomic, ethnic, religious, or
political differences. Keeping these issues in mind, governments would do
well to make special efforts to court diaspora tourists, since they are likely
to be involved with their homelands over the long run.
D. Address Visa and Mobility Limitations
Governments should know that limitations on mobility can affect

the number of tourists in any given year. While revenues from visa fees
are important, liberating and lifting travel restrictions by implementing
visa-free travel regimes can encourage individuals to travel to their
countries,439 consume local products, and use local services.
E. Cater to Generational Differences
Government and tourism industry leaders should be attentive to

the different tastes and interests among tourists of different generations.
First-generation members of the diaspora who fled their countries as
refugees due to conflict may be averse to returning to their countries of
222 origin. Second- and third-generation diaspora populations, however, may
be more curious to discover and learn about their roots. In other cases,
the opposite is true: first-generation diaspora populations maintain close
contact with their countries of origin, while subsequent generations have

little interest in their ancestral roots. The key for growing the tourism
sector is to promote and advertise suitable tourism campaigns directed
at specific populations.
F. Avoid Overreliance on the Tourism Sector
Tourism is an essential industry in many developing countries as

it creates jobs, promotes infrastructure development, and provides vital

foreign exchange. However, governments should be cautious in relying
too heavily on the tourism industry for spurring national development.
Many commercial banks, for example, are reluctant to offer loans to
countries that do not have other more stable sources of income such as
heavy industries. When recessions, conflicts, financial crises, or natural
disasters occur, tourism receipts and tourist visits can drop dramatically.
Without other forms of steady revenue, governments can find themselves
in an unsustainable situation.440
223

Bibliography
Note: All instances in the handbook where the $ is mentioned refers to US

dollars, unless otherwise indicated.
1. 2010 estimates of recorded remittances by the World Bank

(including informal remittances would result in a much higher
total). See World Bank, Migration and Remittances Factbook
2011 (Washington, DC: World Bank, Migration and Remittances
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5. Jennifer Brinkerhoff, Digital Diasporas: Identity and Transnational
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7. Dovelyn Rannveig Agunias, ed., Closing the Distance: How
Governments Strengthen Ties with Their Diasporas (Washington, DC:
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8. Kathleen Newland, ed., Diasporas: New Partners in Global Develop-
ment Policy (Washington, DC: Migration Policy Institute, 2010). 225
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11. Alfred Fritschi, Swiss Agency for Development and Cooperation,
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GIZ designation, except where otherwise noted.
13. Stephen Bethe, German Federal Ministry for Economic Cooperation
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14. Ibid.
15. See Carlos González Gutiérrez, “The Institute of Mexicans Abroad:
An Effort to Empower the Diaspora,” in Agunias, ed., Closing the
Distance: How Governments Strengthen Ties with Their Diasporas.
16. The 3x1 program is best understood as a solidarity program rather
than a development program, however, as the choice of projects
follows the logic of collaboration and demonstration of ties between
diaspora and “hometown” communities rather than an economic
logic. Some critics charge that it diverts government development
resources to communities that are not the neediest, since they are
already in receipt of remittances and charitable contributions from
migrant hometown associations (HTAs).
17. This global and multiannual initiative is funded by the European
Commission (EC) and implemented by the United Nations Development
Programme (UNDP) in partnership with IOM, the International
Labour Organization (ILO), the United Nations Population Fund
(UNFPA), and the United Nations High Commissioner for Refugees
(UNHCR). It is engaged in the provision of direct financial support to
concrete projects in the field of migration and development, and the
identification and analysis of good practices with a view to drawing
lessons learned to ultimately feed into policymaking at national and
international levels.
18. See Dovelyn Rannveig Agunias, “Institutionalizing Diaspora
226 Engagement within Governments,” in Agunias, ed., Closing the
Distance: How Governments Strengthen Ties with Their Diasporas.
19. Global Forum on Migration and Development (GFMD), “How to
make the migration-development nexus work for the achievement
BIBLIOGRAPHY
of the Millennium Development Goals (MDGs)” (background paper,

Roundtable 1, Athens, November 2009), www.gfmdathens2009.org/
fileadmin/material/docs/workp/working_paper_1_2.pdf.
20. Taglit-Birthright Israel, “FAQs,” http://www.birthrightisrael.com/
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21. Altai Consulting, An Evaluation of the EU-RQA Program for the
International Organization for Migration and the European
Commission (Kabul, Afghanistan: IOM, 2006).
22. EC-UN Joint Migration and Development Initiative (JMDI) contribution
to the GFMD paper, “Mainstreaming Migration in Development
Planning — Key Actors, Key Strategies, Key Actions” (background
paper, session 1.2, Athens, November 2009).
23. Ben Hoetjes “Trends and Issues in Municipal Twinning from the
Netherlands,” Habitat International 2009: 157–64.
24. Michael Fullilove, World Wide Web: Diasporas and the International
System (Sydney: Lowy Institute for International Policy, 2008), http://
lowyinstitute.richmedia-server.com/docs/Fullilove-Diasporas-
International-System.pdf.
25. Dovelyn Rannveig Agunias, “The Future of Diaspora Policy”
(Background Paper WMR 2010, IOM, 2010), http://publications.iom.
int/bookstore/free/WMR2010_future_diaspora_policy.pdf.
26. Ibid. Exchange rate used is $1 = 45 Philippine pesos; Republic of the
Philippines, Republic Act No. 9524 General Appropriations Act Fiscal
Year 2009.
27. Exchange rate used is $1 = 13.52 Mexican pesos; total budget of
the Mexican Ministry of Foreign Affairs (Secretaría de Relaciones
Exteriores) compared to the sum of all executive-branch agency
budgets. See Ministry of Finance and Public Credit, “Presupuestos de
Egresos de la Federación 2009, por Sectores o Ramos Administrativos,
Análisis Funcional Programático Económico,” January 1, 2009, www.
apartados.hacienda.gob.mx/presupuesto/temas/pef/2009/index.
html.
28. Laureen Laglagaron, Protection through Integration: The Mexican
Government’s Efforts to Aid Migrants in the United States (Washington,
DC: Migration Policy Institute, 2010), www.migrationpolicy.org/
pubs/IME-Jan2010.pdf.
29. Exchange rate used is $1 million = 4.6 crores; Central Plan Outlay by
Ministries/Departments, http://indiabudget.nic.in/ub2009-10(I)/
bag/bag4-2.htm.
30. Ibid.
31. Ministère de l’Économie et des Finances, Rapport sur la situation 227
d’exécution provisoire du budget d’Etat au 31 décembre 2009
(Bamako, Mali: Ministère de l’Économie et des Finances, December
BIBLIOGRAPHY
2009), http://www.finances.gouv.ml/documentation/doc7.pdf.
32. Ibid.
33. World Bank, “Mexico Factsheet,” in Migration and Remit-
tances Factbook 2008 (Washington, DC: World Bank, 2008),
http://siteresources.worldbank.org/INTPROSPECTS/Resourc-
es/334934-1199807908806/Mexico.pdf; World Bank, “Mali

Factsheet,” in Migration and Remittances Factbook 2008 (Washing-
ton, DC: World Bank, 2008), http://siteresources.worldbank.org/
INTPROSPECTS/Resources/334934-1199807908806/Mali.pdf; Com-
mission on Filipinos Overseas (CFO), “Stock Estimate of Overseas
Filipinos as of December 2007,” www.cfo.gov.ph/Stock%202007.pdf.
34. Both remittance and GDP figures are from 2006. See World
Bank, “Mexico Factsheet;” World Bank, “Philippines Factsheet,”
es/334934-1199807908806/Philippines.pdf; World Bank, “Mali
Factsheet;” World Bank, “India Factsheet,” in Migration and Re-
mittances Factbook 2008 (Washington, DC: World Bank, 2008),
es/334934-1199807908806/India.pdf.
35. Agunias, “The Future of Diaspora Policy.”
36. Republic of the Philippines, “Summary of 2009 Appropriations,”
http://www.dbm.gov.ph/?page_id=677.
38. For an analysis of the Overseas Workers Welfare Administration
(OWWA), see Dovelyn Rannveig Agunias and Neil Ruiz, Protecting
Overseas Workers: Lessons and Cautions from the Philippines
(Washington, DC: Migration Policy Institute, 2007), www.
migrationpolicy.org/pubs/MigDevInsight_091807.pdf.
39. Edith van Ewijk and Isa Baud, “Partnerships between Dutch
Municipalities and Municipalities in Countries of Migration to
the Netherlands: Knowledge Exchange and Mutuality,” Habitat
International Vol. 33, No. 2 (2009): 218–26.
40. Ibid.
41. Agunias, “The Future of Diaspora Policy”; Laurie A. Brand, “States
and Their Expatriates: Explaining the Development of Tunisian
and Moroccan Emigration-Related Institutions.” (Working Paper
52, Center for Comparative Immigration Studies, University of
California, San Diego, May 2002), http://ccis.ucsd.edu/wp-content/
uploads/2012/07/wrkg52.pdf.
228 43.
44.
Agunias, “Institutionalizing Diaspora Engagement.”
Overseas Koreans Foundation, “Founding Background”.
45. Brand, “States and Their Expatriates.”
46. OWWA, “Combined Statement in Changes in Equity, for the Year
BIBLIOGRAPHY
Ended December 31, 2008;” Agunias and Ruiz, Protecting Overseas

Workers.
47. Republic of the Philippines Republic Act No. 9498, General
Appropriations Act Fiscal Year 2008, www.dbm.gov.ph/index.
php?pid=8&xid=28&id=461.
48. Agunias, “Institutionalizing Diaspora Engagement.”

49. Institute for Mexicans Abroad (IME), “CCIME 2006-2008,” www.ime.
gob.mx/ccime/ccime_06_08.htm.
50. González Gutiérrez, “The Institute of Mexicans Abroad: An Effort to
Empower the Diaspora.”
51. Interview of Cesar Vallejo, Advisor, Colombia Nos Une, government
of Colombia, phone interview by Orlando Salazaar-Ruiz, May 25,
52. African Diaspora Marketplace, “About ADM,” accessed November 15,
2011, www.diasporamarketplace.org/about-adm; African Diaspora
Marketplace, “ADM 2009 Awardees,” www.diasporamarketplace.
org/awardees.
53. Hispanics in Philanthropy, “Funders’ Collaborative for Strong Latino
Partnerships,” www.hiponline.org.
54. Interview of Grazia Goya, Program Manager, Hispanics in Philanthropy,
phone interview by Orlando Salazaar-Ruiz, May 26, 2011. On file with
authors.
55. Interview of Regina Barbosa, Head of Project, Migration and
Development, Economic Development and Employment, Deutsche
Gesellschaft für Internationale Zusammenarbeit (GIZ), government
of Germany, phone interview by Julia Schad, April 28, 2011. On file
with authors.
56. Interview of Imelda Nicolas, Secretary, Commission of Filipinos
Overseas, Office of the President, government of the Philippines,
phone interview by author, August 8, 2011. On file with authors.
57. IOM, Results of the Survey “Engaging Diasporas as Agents of
Development” (Geneva: IOM, n.d.), www.iom.int/jahia/webdav/
site/myjahiasite/shared/shared/mainsite/policy_and_research/
research/Diaspora%20questionnaire%20analysis.pdf.
58. Agunias,“Institutionalizing Diaspora Engagement.”
59. Randal C. Archibold, “Mexico’s Vital Link to the United States:
47 Consulates,” New York Times, May 23, 2007, www.nytimes.
com/2007/05/23/world/americas/23iht-mexico.4.5843057.html;
Idaho Statesman, “Public Invited to Open House for Idaho’s First
Mexican Consulate,” February 11, 2009.
61. GMA News TV, “DFA Opens Consulate in Macau,” September 16, 229
2008; Author interview of Robert Borje, Third Secretary, Philippine
Embassy in Washington, DC, July 17, 2009. On file with authors.
BIBLIOGRAPHY
62. Republic of the Philippines, Department of Foreign Affairs, “Philippine

Embassies and Consulates General,” http://dfa.gov.ph/main/index.
php/about-the-dfa/rp-embassies-consulates-a-rcos/phl-embassies-
and-consulates-general.
63. Ministry of Foreign Affairs of Ethiopia, “Achievements,” www.mfa.
gov.et/.

64. Gustavo Cano and Alexandra Délano, “The Institute of Mexicans
Abroad: The Day after . . . After 156 Years,” (presentation prepared
for the 2004 Annual Meeting of the American Political Science
Association, September 2-5, 2004), http://www.escholarship.org/
uc/item/9dd518xt.
65. Olivia Mora, Director of Communications, Directorate for Chilean
Communities Abroad, Ministry of Foreign Affairs of Chile, e-mail
correspondence with Aaron Terrazas of the Migration Policy Institute,
August 10, 2009.
66. Dovelyn Rannveig Agunias, From Zero-Sum to a Win-Win Scenario:
Literature Review on Circular Migration (Washington, DC:
Migration Policy Institute, 2006), www.migrationpolicy.org/pubs/
CircularMigrationLitReview_9.06_DAgunias.pdf.
68. Mexican states include Aguascalientes, Michoacán, Baja California,
Morelos, Campeche, Nayarit Chiapas, Nuevo León, Chihuahua,
Oaxaca, Coahuila, Puebla, Colima, Queretaro, Distrito Federal, San
Luis Potosí, Durango, Sonora, Estado de México, Tabasco, Guerrero,
Tamaulipas, Guanajuato, Tlaxcala, Hidalgo, Veracruz, Jalisco, Yucatán,
and Zacatecas.
69. Imelda Nicolas, Commission on Filipinos Overseas, answer to
Questionnaire, Part II, MPI and IOM, 2011. On file with authors.
70. Vallejo interview, May 2011.
71. Exchange rate used is £1= $1.56012; Voluntary Service Overseas,
“Diaspora Volunteering,” http://www.vso.org.uk/about/working-in-
partnership/diaspora-volunteering.
72. Dovelyn Rannveig Agunias, “Transnational Cooperation for
Development: Lessons from Good Practices in the International
Community,” in Capacity Building of Government Institutions in
Promoting Development: Training Module (Manila: Scalabrini
Migration Center and the European Union, August 2009).
73. Eva Ostergaard-Nielsen, “The Nexus between Local and Transnational
Citizenship: Policies of Co-development in Spain” (paper presented
at Diversity, Civic Participation and Sustainability in Europe: SUS.DIV
230 and CINEFOGO Joint Seminar, Copenhagen, March 10, 2008).
74. Exchange rate used €1 = $1.36549.
75. H.E. Dr. Badara Aliou Macalou, “Creating Partnerships with Diasporas:
The Malian Experience” in Agunias, ed., Closing the Distance: How
BIBLIOGRAPHY
Governments Strengthen Ties with Their Diasporas.

76. Hoetjes, “Trends and Issues in Municipal Twinning from the
Netherlands.”
77. Barbosa interview, April 2011; Bethe, answer to Questionnaire, Part
II.

78. Piyasiri Wickramasekara, “Policy Responses to Skilled Migration:
Retention, Return and Circulation” (Perspectives on Migration Paper
5, International Labour Organization, Geneva, 2002), 11-2.
79. Ibid.
80. Mohamed A. El-Khawas, “Brain Drain: Putting Africa between a Rock
and a Hard Place,” Mediterranean Quarterly 15, No. 4 (2004): 48.
81. Cindy Horst, Rojan Ezzati, Matteo Guglielmo, Petra Mezzetti, Päivi
Pirkkalainen, Valeria Saggiomo, Giulia Sinatti, and Andrea Warnecke,
Participation of Diasporas in Peacebuilding and Development:
A Handbook for Practitioners and Policymakers (Oslo: Peace
Research Institute Oslo, 2010), http://prio.no/Publications/
Publication/?x=4685.
82. Interview of Sander Werrie, International Migration and Development
Division, Netherlands Ministry of Foreign Affairs, phone interview by
author, May 3, 2011. On file with authors.
83. Indian Ministry of External Affairs, Non-Resident Indians and Persons
of Indian Origin Division, Report of the High-Level Committee on the
Indian Diaspora, Other Diasporas (New Delhi: Ministry of External
Affairs, 2004).
84. Among the MOU signers with the Indian government are IOM and
MPI.
85. Kingsley Aikins, Anita Sands, and Nicola White, A Comparative
Review of International Diaspora Strategies: The Global Irish Making
a Difference Together (Dublin: The Ireland Funds, 2009), www.
irelandfunds.org/pdf/globalIrish.pdf.
86. Center for International Migration and Integration (CIMI), “Diaspora-
Homeland Partnerships for Development,” www.cimiglobal.
org/?catid=%7b19BAD080-8ABA-42EC-A325-E5EB0F91A98D%7d.
87. Natasha Iskander, “Social Learning as a Productive Project,” in
Development Dimension: Migration, Remittances and Development
(Geneva: Organization for Economic Cooperation and Development
Publishing, 2005).
88. International Organization for Migration (IOM), The MIDA Experience
and Beyond (Geneva: IOM, 2009): 80.
89. Ibid.
90. Ibid. 231
91. Armando Rodriguez, “The Three-for-One (3x1) Program: Migrant
HTA’s Leveraging Collective Remittances and Governmental
BIBLIOGRAPHY
Resources.” PowerPoint presentation at the EC-EU Knowledge Fair,

December 1-4, 2008, Brussels.
92. Interview of Alessia Pozzi, Program Manager, Unity through
Knowledge Fund, phone interview by author, August 4, 2011. On file
with authors.

93. Laura Chappell and Frank Laczko, “What Are We Really Achieving?
Building an Evaluation Culture in Migration and Development”,
Migration Information Source, June 2011, (Washington, DC:
Migration Policy Institute, 2011), www.migrationinformation.org/
Feature/display.cfm?ID=842.
94. Interview of Cesar Vallejo, Colombia Nos Une, May 25, 2011.
95. Interview of Jose Hernandez, Deputy Director, General Directorate
for Spanish Citizens Abroad, government of Spain, phone interview
by Orlando Salazaar-Ruiz, April 27, 2011. On file with authors.
96. Laura Chappell, Orlando Salazaar-Ruiz, and Frank Laczko, “How
to Evaluate Migration and Development Projects, Programmes
and Policies: Lessons from Current Approaches,” Migration Policy
Practice Vol. 1, No.1, http://publications.iom.int/bookstore/free/
MigrationPolicyPracticeJournal_11311.pdf.
97. Chappell and Laczko, “What Are We Really Achieving?”
98. Ibid.
99. IOM, The MIDA Experience and Beyond, 81.
100. Ibid, 82.
101. Chappell and Laczko, “What Are We Really Achieving?”.
102. Center for Global Development, The Evaluation Gap Working
Group, When Will We Ever Learn? Improving Lives Through Impact
Evaluation (Washington, DC: Center for Global Development, 2006),
www.cgdev.org/content/publications/detail/7973.
103. Joan Hall, Ten Years of Innovation in Remittances: Lessons Learned
and Models for the Future (Washington: Inter-American Development
Bank, 2010), http://idbdocs.iadb.org/wsdocs/getdocument.
aspx?docnum=35163520.
104. Ibid.
105. Werrie interview, May 2011.
106. Ibid.
107. Newland, Diasporas: New Partners in Global Development Policy.
108. Liliana Gonzales, “Migration Policy in Mexico: Evaluation Efforts,”
(PowerPoint presentation at Managing Migration for Development:
Policymaking, Assessment and Evaluation, Marseille, June 13-15,
232 2011).
109. Solon Ardittis and Frank Laczko, eds., Assessing the Costs and Impacts
of Migration Policy: An International Comparison (Geneva: Eurasylum
and IOM, 2008).
BIBLIOGRAPHY
110. Pozzi interview, August 2011.

111. The 56 countries are Albania, Algeria, Armenia, Azerbaijan,
Bangladesh, Benin, Bosnia and Herzegovina, Brazil, Bulgaria, Burundi,
Chile, China, Comoros, Dominica, Dominican Republic, Egypt, El
Salvador, Eritrea, Ethiopia, Georgia, Germany, Ghana, Guatemala,
Haiti, Hungary, India, Indonesia, Iraq, Israel, Lebanon, former Yugoslav

Republic of Macedonia, Mali, Malta, Mexico, Morocco, Netherlands,
Niger, Nigeria, Pakistan, Peru, Philippines, Poland, Portugal, Romania,
Senegal, Serbia, Sierra Leone, Slovakia, Slovenia, Somalia, Republic
of Korea, Sri Lanka, Switzerland, Syrian Arab Republic, Tunisia, and
Uruguay.
112. Ministry of Haitians Living Abroad, “Bienvenue sur le site du MHAVE!”
http://mhave.gouv.ht/.
113. Ministry of Overseas Indian Affairs (MOIA), Annual Report 2007–08
(New Delhi: MOIA, 2008), http://moia.gov.in/writereaddata/pdf/
Annual_Report_2007-08.pdf.
114. Government of the Republic of Serbia, “Ministry for Diaspora”.
115. Armenia Now, “Dealing with Diaspora: Armenia to Set Up New
Ministry for Compatriots Abroad,” June 20, 2008.
116. B92 News, “Diaspora Ministry to Launch “Brain Gain” Project,”
September 2, 2008, www.b92.net//eng/news/society-article.
php?yyyy=2008&mm=09&dd=02&nav_id=53177.
118. Government of the People’s Republic of Bangladesh, Ministry
of Expatriates’ Welfare and Overseas Employment (MEWOE),
“Introduction,” www.probashi.gov.bd/introduction; Interview of
Nissanka N. Wijeratne, Secretary, Ministry of Foreign Employment
Promotion and Welfare, government of Sri Lanka, phone interview
by author, August 29, 2011. On file with authors.
119. South Asia Migration Research Network, “Bangladesh: Wage Earners’
Welfare Fund,” www.samren.net/Govt_Programmes/bangladesh/
B1.htm.
120. Republic of Benin, Ministry for Institutional Relations, Civil Society,
and Beninois Abroad, National Agency for Beninois Abroad,
“Presentation”; Ministry of Malians Abroad and African Integration,
“La Délégation Générale des Maliens de l’Extérieur,” www.maliens-
exterieur.gouv.ml; Republic of Lebanon, Ministry of Foreign Affairs
and Emigrants, “General Directorate of Emigrants,” http://emigrants.
gov.lb/eng/.
122. Republic of Benin, Ministry for Institutional Relations, Civil Society,
and Beninois Abroad, National Agency for Beninois Abroad, “Mot de 233
Bienvenue”.
123. For an analysis of OWWA, see Agunias and Ruiz, Protecting Overseas
BIBLIOGRAPHY
Workers: Lessons and Cautions from the Philippines.

124. For an analysis of the Philippine Overseas Employment Administration
(POEA), see Dovelyn Rannveig Agunias, Managing Temporary
Migration: Lessons from the Philippine Model (Washington, DC:
Migration Policy Institute, 2008), www.migrationpolicy.org/pubs/
Insight_POEA_Oct07.pdf.

125. Philippine Department of Foreign Affairs, “Office of the Undersecretary
for Migrant Workers’ Affairs,” www.dfa.gov.ph.
126. Mexican Ministry of Foreign Affairs, “Guía Práctica para el Viajero
Mexicano,” http://guiadelviajero.sre.gob.mx/.
127. Mexican Ministry of Foreign Affairs, Institute for Mexicans Abroad,
“Qué es el IME?” www.ime.gob.mx/index.php?option=com_conten
t&view=article&id=1&Itemid=353&lang=es.
128. Cano and Délano, “The Institute of Mexicans Abroad: The Day After
. . . After 156 Years.”
129. Government of Chile, Ministry of Government, Office of Chileans
Abroad, “Chilenos en el Exterior,” www.gobiernodechile.cl/chilenos_
exterior/index.asp.
130. Ethiopian Ministry of Foreign Affairs, General Directorate Responsible
for Ethiopian Expatriate Affairs, “About Us,” www.mfa.gov.et.
131. Government of Sierra Leone, Office of the Diaspora, “About Us,”
www.diasporaaffairs.gov.sl/index.php?option=com_content&view=
article&id=12&Itemid=2.
132. Indian Ministry of External Affairs, Non-Resident Indians and Per-
sons of Indian Origin Division, Report of the High-Level Committee
on the Indian Diaspora, Other Diasporas, 313; the Central People’s
Government of the People’s Republic of China, “The State Council”;
the Central People’s Government of the People’s Republic of China,
“Administrative Offices under the State Council”.
133. Institute for Mexicans Abroad (IME), “¿Qué es el Consejo Nacional?”
www.ime.gob.mx/.
134. Olivia Mora, Director of Communications, Directorate for Chilean
Communities Abroad, Ministry of Foreign Affairs of Chile, e-mail
correspondence with Aaron Terrazas of the Migration Policy Institute,
August 10, 2009. On file with authors.
135. Indian Ministry of External Affairs, Report of the High-Level Committee
on the Indian Diaspora, 352.
136. See for example Rodolfo O. de la Garza and Briant Lindsay Lowell,
eds., Sending Money Home: Hispanic Remittances and Community
Development (Lanham, MD: Rowman and Littlefield, 2002).
137. David Zweig and Chung Siu Fung, “Redefining the Brain Drain:
234 China’s ‘Diaspora Option” (working Paper no. 1, Center on
China’s Transnational Relations, Hong Kong University of Science
and Technology), www.cctr.ust.hk/materials/working_papers/
BIBLIOGRAPHY
WorkingPaper1.pdf.
on the Indian Diaspora, 314.
139. Non-Resident Keralites’ Affairs Department, “Schemes,” www.norka.
gov.in/index.php?option=com_content&view=category&id=40&Ite
mid=29.

140. Government of Gujarat, NRI Division, “Activities,” www.nri.gujarat.
gov.in/activities-nri-division-1.htm.
141. Government of Mexico, Coordinación Nacional de Oficinas Estatales
de Atención a Migrantes (National Coordination for State-level
Offices for Migrant Affairs), “Quiénes Somos?” www.conofam.org.
mx/. States include Aguascalientes, Michoacán, Baja California ,
Morelos, Campeche, Nayarit Chiapas, Nuevo León, Chihuahua,
Oaxaca, Coahuila, Puebla, Colima, Queretaro, Distrito Federal, San
Luis Potosí, Durango, Sonora, Estado de México, Tabasco, Guerrero,
Tamaulipas, Guanajuato, Tlaxcala, Hidalgo, Veracruz, Jalisco, Yucatán,
and Zacatecas.
142. IOM, Results of the Survey “Engaging Diasporas as Agents of
Development” (Geneva: IOM, n.d.), www.iom.int/jahia/webdav/
site/myjahiasite/shared/shared/mainsite/policy_and_research/
research/Diaspora%20questionnaire%20analysis.pdf.
143. Embassy of the Dominican Republic in the United States, “Other
Consular Services,” www.domrep.org/other_c.html.
144. Embassy of India Abu Dhabi, “Home,” www.indembassyuae.org;
Benito Valeriano, Philippine Consul-General, Dubai, United Arab
Emirates, interview by author, June 23, 2009.
145. Bangladesh High Commission in India, “Events in the High
Commission,” www.bhcdelhi.org.
146. Pakistan Embassy in the United States, “Education,” www.
embassyofpakistanusa.org/Education_1.php.
147. Embassy of Morocco in France, “Etudier en France,” http://www.
amb-maroc.fr/.
148. Suhas L. Ketkar and Dilip Ratha, “Development Finance via
Diaspora Bonds: Track Record and Potential” (paper presented
at Migration and Development Conference, World Bank, May
23, 2007), http://siteresources.worldbank.org/INTPROSPECTS/
Resources/334934-1100792545130/Diasporabonds.pdf.
149. Embassy of Ethiopia in the United States, “EEPCO Millennium Bond,”
www.ethiopianembassy.org/PDF/MillenniumBond.pdf.
150. Archibold, “Mexico’s Vital Link to the United States: 47 Consulates”;
Idaho Statesman, “Public Invited to Open House for Idaho’s First
Mexican Consulate.” 235
151. Secretaría de Relaciones Exteriores, “Consulados de México
en el Exterior,” www.sre.gob.mx/index.php/representaciones/
BIBLIOGRAPHY
consulados-de-mexico-en-el-exterior.
152. GMA News TV, “DFA Opens Consulate in Macau,” September 16,
2008; Borje interview, July 17, 2009.
153. Republic of the Philippines, Department of Foreign Affairs, “Philippine
Embassies and Consulates General,” http://dfa.gov.ph/main/index.
php/about-the-dfa/rp-embassies-consulates-a-rcos/phl-embassies-
and-consulates-general.

154. Ministry of Foreign Affairs of Ethiopia, “Achievements,” www.mfa.
gov.et.
155. Cano and Délano, “The Institute of Mexicans Abroad,” 26.
156. Laurie A. Brand, “States and Their Expatriates: Explaining the
Development of Tunisian and Moroccan Emigration-Related
Institutions” (working Paper 52, Center for Comparative Immigration
Studies, University of California, San Diego, May 2002): 14−5, http://
ccis.ucsd.edu/wp-content/uploads/2012/07/wrkg52.pdf.
157. Ministry of Malians Abroad and African Integration, “Haut Conseil
des Maliens de l’Extérieur (HCME),” www.maliens-exterieur.gouv.ml.
158. IME, “CCIME 2006-2008,” www.ime.gob.mx/ccime/ccime_06_08.
htm.
159. National Presidential Council for Dominican Communities Abroad,
“Objetivos,” www.condex.gob.do/condex.
on the Indian Diaspora.
161. Agustín Escobar Latapí and Eric Janssen, “Migration, the Diaspora and
Development: The Case of Mexico” (discussion paper DP/167/2006,
Decent Work Research Programme, International Institute for Labour
Studies, Geneva, 2006), 19, www.ilo.org/public/english/bureau/inst/
publications/discussion/dp16706.pdf.
162. A. A. Mohamoud, The Contribution of African Diaspora to Policy
Dialogue (Amsterdam: African Diaspora Policy Center, 2007): 40,
www.diaspora-centre.org/DOCS/Migration_Developm.pdf.
163. International Centre for Migration Policy Development (ICMPD) and
IOM, Inventory of Institutional Capacities and Practices (Geneva:
ICMPD and IOM, 2010), http://publications.iom.int/bookstore/index.
php?main_page=product_info&cPath=41_7&products_id=582.
164. Interview of Edwin Paraison, Ministry for Haitians Living Abroad,
phone interview by Aaron Terrazas, August 19, 2011. On file with
authors.
165. Aisa Telalovic, Senior Expert Associate, Department for Diaspora,
Ministry for Human Rights and Refugees, Bosnia and Herzogovina,
answer to Questionnaire, Part II, MPI and IOM, 2011.
236 166. Nicolas, Answer to Questionnaire, Part II.
167. Dovelyn Rannveig Agunias, “Engaging Diasporas for Development”
(discussion paper, Migration Policy Institute, Washington, DC, 2008).
168. IOM, The MIDA Experience and Beyond.
BIBLIOGRAPHY
169. Horst, Ezzati, Guglielmo, Mezzetti, Pirkkalainen, Saggiomo, Sinatti,

and Warnecke, Participation of Diasporas in Peacebuilding and
Development.
170. Felix Birihanyuma, Diaspora Directorate, Burundi, answer to
Questionnaire, Part II, MPI and IOM, 2011; Hanna Simon, Department
of Eritreans Abroad, answer to Questionnaire, Part II, MPI and IOM,
2011.
171. ICMPD and IOM, Inventory of Institutional Capacities and Practices.
172. Maria Machado, Consulate of Uruguay, answer to Questionnaire,
Part II, MPI and IOM, 2011.
173. Global Property Guide, “Country Profiles,” www.globalpropertyguide.
com/.
175. Simon, Answer to Questionnaire, Part II.
177. Javier de Leon, Mexico’s Institute for Mexicans Abroad, answer to
Questionnaire, Part II, MPI and IOM 2011; Cesar Vallejo, Colombia
Nos Une, answer to Questionnaire, Part II, MPI and IOM 2011;
Birihanyuma, answer to Questionnaire, Part II; Lorena Herrera,
National Secretariat for Migrants, Ecuador, answer to Questionnaire,
Part II, MPI and IOM 2011; Sylvia Wohlers De Meie, Guatemalan
Ministry of Foreign Affairs, answer to Questionnaire, Part II, MPI
and IOM 2011; Soifoni Abdoul Karim, Comoros’ Ministry of External
Relations and Cooperation of the Diaspora, answer to Questionnaire,
Part II, MPI and IOM 2011; Imelda Nicolas, Philippines’ Commission
on Filipinos Overseas, answer to Questionnaire, Part II, MPI and
IOM 2011; Machado, answer to Questionnaire, Part II, MPI and IOM,
2011.
178. See Talent Corp Malaysia website, www.talentcorp.com.my/.
180. Ibid.
181. Tesfaye Wolde, Ethiopia’s Diaspora Engagement Affairs Directorate-
General, answer to Questionnaire, Part II, MPI and IOM 2011; Vallejo,
answer to Questionnaire Part II, MPI and IOM 2011; Birihanyuma,
answer to Questionnaire, Part II, MPI and IOM 2011; Herrera, answer
to Questionnaire Part II, MPI and IOM 2011; and Ousman Nacambo,
Council of Burkinabés Abroad, answer to Questionnaire, Part II, MPI
and IOM 2011.
183. Telalovic and Fritschi answers to Questionnaire, Part II, MPI and IOM,
2011.
184. De Leon, answer to Questionnaire, Part II; Yvon Resplandy, United
States Agency for International Development, answer to Questionnaire 237
Part II, MPI and IOM, 2011;, Wolde, answer to Questionnaire, Part II;
Ronald Tave, Immigration and Civil Status Department, government
BIBLIOGRAPHY
of Seychelles, answer to Questionnaire Part II, MPI and IOM, 2011and

Birihanyuma, answer to Questionnaire, Part II.
185. Newland, Diasporas: New Partners in Global Development Policy.
186. Johanna Avato, Johannes Koettl, and Rachel Sabates-Wheeler,
“Definitions, Good Practices, and Global Estimates on the Status

of Social Protection for International Migrants” (Social Protection
Discussion Paper No. 0909, the World Bank, Washington, May 2009).
187. Ibid.
188. Interview of Aisa Telalovic, Department for Diaspora, Ministry
for Human Rights and Refugees, Bosnia and Herzegovina, phone
interview by author, April 26, 2011. On file with authors.
190. De Leon, answer to Questionnaire, Part II, MPI and IOM, 2011.
191. Interview of Ousman Nacambo, Permanent Secretary, Council of
Burkinabés Abroad, phone interview by Mariam Traore, May 30,
192. Resplandy, answer to Questionnaire Part II; Jose Hernandez, General
Directorate for Spanish Citizens Abroad, answer to Questionnaire Part
II; Birihanyuma, answer to Questionnaire, Part II; Aho Rebas, Estonian
Ministry for Education and Research, answer to Questionnaire Part
II; Herrera, anser to Questionnaire, Part II, MPI and IOM 2011; High
Commission for Immigration and Intercultural Dialogue, answer
to Questionnaire Part II, MPI and IOM, 2011; Karim, answer to
Questionnaire, Part II; Machado, answer to Questionnare Part II; and
Tave, answer to Questionnare Part II.
194. Ibid.
195. Machado, answer to Questionnare Part II.
196. International IDEA, Voting from Abroad: The International IDEA
Handbook (Stockholm: Trydells Tryckeri, 2006).
197. Simon, answer to Questionnaire Part II.
Handbook.
199. International IDEA , A Preview of the Forthcoming International IDEA
Handbook on External Voting (Stockholm: Trydells Tryckeri, 2006).
200. Nicolas interview, August 8, 2011.
Handbook.
238 203. Ibid.
Handbook.
BIBLIOGRAPHY
206. Sanket Mohapatra, Dilip Ratha, and Ani Silwal, “Outlook for Remittance
Flows 2011-13” (Migration and Development Brief 16, World Bank
Migration and Remittances Unit, 2011), http://siteresources.world-
bank.org/EXTDECPROSPECTS/Resources/476882-1157133580628/
MigrationandDevelopmentBrief16.pdf.

207. Migration Policy Institute (MPI), “Global Remittances Guide” (based
on information provided by the World Bank Development Prospects
Group), www.migrationinformation.org/datahub/remittances.cfm.
208. Inter-American Development Bank (IDB), “Sending Money Home: A
Scorecard For the Remittance Industry” (mimeo, Washington, DC,
May 12, 2006), www.iadb.org/news/docs/BoletinRemesas_e.pdf.
209. Remesamex, “Calculadora de Envios de Dinero,” http://portalif.
condusef.gob.mx:8060/Remesamex/home.jsp; Javier de Leon,
Mexico’s Institute for Mexicans Abroad, answer to Questionnaire,
Part II, MPI and IOM 2011.
210. IntEnt, “Geld overmaken naar het buitenland,” www.geldnaarhuis.nl/;
Sander Werrie, International Migration and Development Division,
Netherlands Ministry of Foreign Affairs, answer to Questionnaire
Part II, MPI and IOM, 2011.
211. GeldtransFair.de, “Über GeldtransFAIR.de,” www.geldtransfair.de/.
212. Exchange rate used: 1 franc = 0.00205026 US dollar.
213. Interview of Ousman Nacambo by Mariam Traore, May 30, 2011.
214. Karolina Novinscak, “Demand for Financial Services from Banks in
Serbia among Serbian Migrants in Germany” (discussion paper,
Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ), 2009),
http://www.giz.de/Themen/en/dokumente/en-demand-financial-
services-from-serbian-migrants-2009.pdf.
215. Yvon Resplandy, Senior Diaspora/Remittances Advisor, US Agency for
International Development (USAID), answer to Questionnaire Part II,
MPI and IOM, 2011.
216. Exchange rate: 1 US dollar = 40 Philippine pesos.
217. Ngozi Okonjo-Iweala and Dilip Ratha, “Homeward Bound,” The
New York Times, March 11, 2011, www.nytimes.com/2011/03/12/
opinion/12ratha.html?_r=1.
218. Overcollaterization is a form of internal credit enhancement in which
the total value of the reference portfolio assets (such as bonds,
loans, or remittances) is greater than the total value of the securities
issued to investors. A 2 percent collateralization would mean that 2
percent of the credit-sensitive assets must default before even the
equity (lowest tranche) level of the securities is breached, which is
protection in addition to the subordination of securities. 239
219. For examples of a variety of securitizations transactions, see
International Financial Corporation (IFC), “Structured and Securitized
BIBLIOGRAPHY
Products: A Pioneer in Structured Transactions,” www.ifc.org/ifcext/

treasury.nsf/AttachmentsByTitle/SF_A+pioneer+in+structured+trans
actions/$FILE/Pioneer.pdf.
220. Dilip Ratha and Suhas Ketkar, “New Paths to Funding: When Financing
is Scarce, Developing Countries May Try Innovative Approaches to
Raise Capital,” Finance and Development, June 2009; Dilip Ratha

and Sanket Mohapatra, “Increasing the Macroeconomic Impact of
Remittances on Development” (note prepared for the G8 Outreach
Event on Remittances, Berlin, November 28-30, 2007), www.
dilipratha.com/index_files/G8Berlin.pdf.
221. Government of Nepal Ministry of Finance and the Asian Development
Bank, Final Report: Channeling Remittance through Diaspora Bonds:
Opportunities for Development Financing (New Delhi: Infrastructure
Professionals Enterprise [P] Ltd., 2010), www.mof.gov.np/economic_
policy/pdf_2/Diaspora_Bonds.pdf.
222. Ratha and Ketkar, “New Paths to Funding.”
223. Ibid.
224. Hall, Ten Years of Innovation in Remittances: Lessons Learned and
Models for the Future.
225. Ibid.
226. Ibid.
227. Juan Bucheanu, Senior Financial Sector Specialist, World Bank,
interview with MPI, Washington, DC, January 24, 2008; Javier
Gavito, Managing Director, Sociedad Hipotecaria Federal, telephonic
interview with MPI, January 14, 2008.
228. Notes of author while attending the CGAP Working Group on Housing
Finance and Remittances meeting at IDB, February 14, 2008.
230. Ibid.
231. Ibid.
232. Ibid.
233. Ibid.
234. Ibid.
235. Richard Cambridge, “Diaspora Investments in Developing Countries”
(presentation at Fostering Diaspora Investment in Developing
Countries USAID Mini Series on Diasporas, Washington DC, August
18, 2011).
236. Bangkok Bank, “Supporting Your Business,” www.bangkokbank.com/
Bangkok%20Bank/Business%20Banking/SMEs/Pages/default.aspx.
240 237. Aisa Telalovic, Bosnia and Herzogovina Department for Diaspora,
answer to Questionnaire, Part II, MPI and IOM, 2011.
238. MIDEO, “Migration et Développement Economique dans la Région
l’Oriental.”
BIBLIOGRAPHY
239. Ibid.
240. Pollack, “ChileGlobal — Talent Network for Innovation.”
241. Horst, Ezzati, Guglielmo, Mezzetti, Pirkkalainen, Saggiomo, Sinatti,
and Warnecke, Participation of Diasporas in Peacebuilding and
Development.
242. IntEnt, “IntEnt, a bridging programme for SME’s”.

243. Another similar competition-based funding opportunity was the US
Agency for International Development (USAID)-sponsored Haitian
Diaspora Investment Challenge Facility in 2008 that offered grants of
up to $100,000 to members of the Haitian diaspora for sustainable
business activities in Haiti. For more information, see USAID, “USAID
Sponsored Haitian Diaspora Investment Challenge Facility,” (fact
sheet, September 26, 2008).
244. For a list of winners and their respective business concepts, see
USAID, “About ADM,” www.diasporamarketplace.org/about-adm.
245. Newland and Tanaka, Mobilizing Diaspora Entrepreneurship for
Development; IntEnt, Annual Report 2009.
246. USAID, “USAID and Western Union to Launch Second African Diaspora
Marketplace,” (press release, May 17, 2011).
247. Development Marketplace for African Diasporas in Europe (D-MADE),
“Promoting Development Investment Projects and Innovative
Entrepreneurial Activities in Africa”.
248. D-MADE, “Bank and Development Partners Support Europe-based
African Diaspora Business Ventures,” (press release, June 24, 2008).
249. D-MADE, “Frequently Asked Questions about D-MADE”.
250. El Cucayo, “Fondo Concursable ‘El Cucayo’: Convocatoria 2011”.
251. Ministry of Immigrant Absorption, “Business and Tax Concessions”.
252. The maximum loan amount for the State-Guaranteed Small Business
Assistance Fund is NIS 500,000 (US$ 134,000) and for the Fund for
the Self-Employed Immigrant is NIS 100,000 (US$268,000). Exchange
rate used: 1 NIS= 0.267183 USD.
253. Ministry of Immigrant Absorption, “Fund for the Self-Employed Im-
migrant”.
254. Secretaría de Desarrollo Social, Subsecretaria de Desarrollo Social
y Humano, Dirección General de Seguimiento, Cuarto: Informe
Trimestral 2010 H. Cámara de Diputados: Programas de Subsidios del
Ramo Administrativo 20 Desarrollo Social, January 2011.
255. Ibid.
256. Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ; later
renamed GIZ), The Ghanaian Diaspora in Germany: Its Contribution
to Development in Ghana (Bonn, Germany: GTZ, 2009), http://www.
giz.de/Themen/en/dokumente/en-ghanaian-diaspora-2009.pdf. 241
257. GTZ, Cooperating with Diaspora Communities: Guidelines for
Practice (Bonn, Germany: GTZ, 2010), http://www.giz.de/Themen/
BIBLIOGRAPHY
de/dokumente/giz2011-en-leitfaden-diasporagemeinschaften.pdf.
258. GTZ, Shedding a Little Light (Bonn, Germany: GTZ, 2010), http://
www.giz.de/Themen/en/dokumente/gtz2010-en-diaspora.pdf.
259. GTZ, Girls with An Education (Bonn, Germany: GTZ, 2010).

261. Pollack, “ChileGlobal — Talent Network for Innovation.”
262. Altai Consulting, An Evaluation of the EU-RQA Program for
International Organization for Migration and the European
Commission, 33.
263. Devesh Kapur, “Diasporas and Technology Transfer,” Journal of
Human Development 2, No. 2 (2001): 265.
264. Newland and Tanaka, Mobilizing Diaspora Entrepreneurship for
Development.
265. Canadian University Service Overseas and Voluntary Service Overseas
Canada (CUSO-VSO), “Diaspora Volunteering”.
266. Interview of Hanna Simon, Director General, Department of Eritreans
Abroad, interview by Mariam Traore on April 28, 2011.
267. Dovelyn Rannveig Agunias, “Engaging Diasporas for Development;”
Robert Wade, “A New-Old Approach to Industrial-cum-Immigration
Policy” (Institute for Development Studies Working Paper no. 13,
2001): 15-6.
268. Luo Keren, Fei Guo, and Huang Ping, “China: Government Policies and
Emerging Trends of Reversal of the Brain Drain,” in Return Migration
in the Asia Pacific, eds. Robyn Iredale, Fei Guo, and Santi Rozario
(Cheltenham, UK and Northampton, MA: Edward Elgar Publishing,
2003).
269. Elizabeth Thomas‐Hope, Return Migration to Jamaica and its
Development Potential, International Migration 37, No. 1 (1999):
199.
270. Adela Pellegrino, Skilled Labour Migration from Developing Countries:
Study on Argentina and Uruguay.”
271. Ibid.
273. Interview of Noppawan Tanpipat, Director, Reverse Brain Drain,
by Dovelyn Agunias, cited in Dovelyn Agunias, “Engaging the
Mauritian Diaspora: Lessons from the International Community,” in
Skills and Technology Absorption in Mauritius, ed., Giuseppi Iarossi
(Washington, DC: The World Bank, forthcoming).
274. IOM Office of the Inspector General, Evaluation of the MIDA Italy
242 Project (Geneva: IOM, 2005).
275. Interview of Frantz S. Celestin, Project Officer, IOM, by Dovelyn
Agunias, cited in Agunias, “Engaging the Mauritian Diaspora: Lessons
BIBLIOGRAPHY
from the International Community.”

276. IOM, The MIDA Experience and Beyond; Tamara Keating, Head of
Unit, IOM, email correspondence with author, October 25, 2011. On
file with author.
277. Altai Consulting, An Evaluation of the EU-RQA Program.
278. Ibid.

279. Ibid.
280. Ibid.
281. IOM Office of the Inspector General, Evaluation of the MIDA Italy
Project.
283. Ibid.
284. Ibid.
285. Tamara Keating, IOM, email correspondence with author, October
2011.
286. L. Long and K. Mensah, MIDA Ghana Health Project Evaluation:
London, Netherlands and Accra (Accra: IOM, 2007).
288. Interview of Sander Werrie, Netherlands Ministry of Foreign Affairs,
May 2011.
289. M.K.D. Rao, “Gauging success of a project: a case study of the TOKTEN-
India Umbrella Project,” Research Evaluation 15 (3), 175-86; Aaron
Terrazas, Connected through Service: Diaspora Volunteers and Global
Development (Washington, DC: MPI, 2010), www.migrationpolicy.
org/pubs/diasporas-volunteers.pdf.
290. Terrazas, Connected through Service.
291. German Federal Ministry for Economic Cooperation and Development,
“Returning Experts Programme,” www.zav-reintegration.de/default.
asp?lng_main=en.
292. Centre for International Migration and Development, “It’s People
that Make a Difference,” (flyer, January 2011), www.cimonline.de/
documents/CIM-Flyer-prf-en.pdf.
293. Hongxing Cai, “The Chinese Knowledge DIaspora in the Development
of Chinese Research Universities,” (PowerPoint presentation at the
International Conference on Diaspora for Development, July 13-14,
2009, Washington, DC).
295. Hoetjes, “Trends and Issues in Municipal Twinning from the
Netherlands.”
296. Edith van Ewijk and Isa Baud, “Partnerships between Dutch
Municipalities and Municipalities in Countries of Migration to
the Netherlands: Knowledge Exchange and Mutuality,” Habitat 243
International, Volume 33 (2): 218-26.
297. Ibid.
BIBLIOGRAPHY
298. Ibid.
299. Ibid.
300. Interview of Rebeccah Bardach by Dovelyn Agunias, cited in Agunias,
“Engaging the Mauritian Diaspora: Lessons from the International
Community.”
301. The Jewish Agency, “About Us,” www.jewishagency.org/
JewishAgency/English/About.

302. Nicolas, Commission of Filipinos Overseas, answer to Questionnaire,
Part II; Machado, Consulate of Uruguay, answer to Questionnaire,
Part II; Lyubomir Dryanovsky, Bulgarian National Employment Agency,
answer to Questionnaire, Part II, MPI and IOM, 2011; Vallejo, Colombia
Nos Unes, answer to Questionnaire, Part II; Birihanyuma, Burundi
diaspora directorate, answer to Questionnaire; Rebas, Estonian
Ministry for Education and Research, answer to Questionnaire Part
II; Attila Kocsis, State Secretary for Hungarian Communities Abroad
answer to Questionnaire, Part II, MPI and IOM 2011; Fritschi, Swiss
Agency for Development and Cooperation, answer to Questionnaire,
Part II; Hererra, National Secretariat for Migrants, Ecuador, answer to
Questionnaire, Part II.
303. Kristof Tamas, Diaspora Relations and Return, Unpublished
Manuscript submitted to International Organization for Migration,
2007. See also Gabriela Tejada Guerrero and Jean Claude Bolay,
“Enhancing Development through Knowledge Circulation: A Different
View of the Migration of Highly Skilled Mexicans,” Global Migration
Perspectives No. 51, Global Commission on International Migration,
November 2005; Jean-Baptiste Meyer and Mercy Brown, “Scientific
Diasporas: A New Approach to the Brain Drain” (paper prepared for
the World Conference on Science, UNESCO-ICSU, Budapest, Hungary,
June 26-July 1, 1999).
304. F. Chaparro, H. Jaramillo, and V. Quintero, “Role of Diaspora in
Facilitating Participation in Global Knowledge Networks: Lessons
of Red Caldas in Colombia” (report prepared for the Knowledge
for Development Program of the World Bank, Bogotá, Colombia,
December 2004).
305. Kristian Thorn and Lauritz B. Holm-Nielsen, “International Mobility of
Researchers and Scientists: Policy Options for Turning a Drain into a
Gain” (UNU-WIDER Research Paper No. 2006/83, Helsinki, Finland),
http://www.wider.unu.edu/publications/working-papers/research-
papers/2006/en_GB/rp2006-83/; Chaparro, Jaramillo, and Quintero,
“Role of Diaspora in Facilitating Participation in Global Knowledge
Networks: Lessons of Red Caldas in Colombia.”
244 306. Dovelyn Rannveig Agunias, Remittances and Development:
Trends, Impacts, and Policy Options: A Review of the Literature
(Washington, DC: MPI, 2006), www.migrationpolicy.org/pubs/mig_
dev_lit_review_091406.pdf.
BIBLIOGRAPHY
307. Vallejo, answer to Questionnaire, Part II.

308. Telalovic interview, April 2011.
309. Interview of Nicole Paterno, Brain Gain Network, phone interview by
author on August 5, 2011. On file with authors.
310. B & M Development Consultants, Terminal Evaluation of Return of
Qualified African Nationals (RQAN) (evaluation report submitted to

the Ministry of Economic Development and Cooperation and IOM,
Addis Ababa, 2000).
311. TRANSTEC, Final External Evaluation of the Return of Qualified African
Nationals, Phase 3, submitted to the European Commission in 2000,
cited in IOM, The MIDA Experience and Beyond.
312. Ibid.
314. Interview of Sander Werrie, Netherlands Ministry of Foreign Affairs,
May 2011.
315. R. D. Wanigaratne, An Evaluation of Transfer of Technology through
Expatriate National (TOKTEN) Program (Colombo, Sri Lanka: United
Nations Development Programme, 2006), http://erc.undp.org/
evaluationadmin/downloaddocument.html?docid=1863.
317. Interview of Carlos González Gutiérrez by Dovelyn Agunias, cited
in Agunias, “Engaging the Mauritian Diaspora: Lessons from the
International Community.”
319. Sebastiano Ceschi and Andrea Stocchiero, “Partnership Initiatives for
Co-development: Ghanaian and Senegalese immigrants and CeSPI-
IOM research-action” (strategy paper for Ghana-Senegal MIDA
Project, IOM and Centro Studi di Politica Internazionale, 2006), www.
cespi.it/Prog%20MIDA/strategy%20paper%20English.pdf.
320. Ibid.
321. Ibid.
322. Ibid.
323. IOM, Final Report and Evaluation of the “Return and Reintegration of
Qualified Jamaican Nationals, Phase II” Project (Washington : IOM,
2000).
324. IOM, Office of the Inspector General, Evaluation of the Migration for
Development in Africa (MIDA) Initiative as an Illustration of IOM’s
Approach to Making Migration Work for Development (Geneva:
IOM, 2007).
326. Ibid.
327. Ibid. 245
328. Ibid.
329. Katim S. Touray, Final Evaluation of the Support Project to the
BIBLIOGRAPHY
Implementation of the Rwanda TOKTEN Volunteer Program (Kigali,

Rwanda: United Nations Development Programme, 2008), http://erc.
undp.org/evaluationadmin/downloaddocument.html?docid=1814.
Qualified Jamaican Nationals, Phase II” Project; Celestin interview,
cited in Agunias, “Engaging the Mauritian Diaspora: Lessons from the

International Community;” IOM, Division of Programme Evaluation,
Final Internal Evaluation of the Project “Retorno y Reintegracion de
Personal Calificado para Promover la Reconstruccion Economica y el
Desarollo de Nicaragua (Managua, Nicaragua: IOM, 1995).
331. Keating, email correspondence with author, October 2011.
333. Ibid.
Qualified Jamaican Nationals, Phase II” Project.
335. B & M Development Consultants, Terminal Evaluation of Return of
Qualified African Nationals (RQAN).
336. Interview of Ana Carillo by Dovelyn Agunias, cited in Agunias,
“Engaging the Mauritian Diaspora: Lessons from the International
Community.”
339. Long and Mensah, MIDA Ghana Health Project Evaluation: London,
Netherlands and Accra.
341. Cai, “The Chinese Knowledge Diaspora in the Development of
Chinese Research Universities.”
342. Long and Mensah, MIDA Ghana Health Project Evaluation: London,
Netherlands and Accra; Altai Consulting, An Evaluation of the EU-
RQA Program; Touray, Final Evaluation of the Support Project to the
Implementation of the Rwanda TOKTEN Volunteer Program.
343. IOM, Office of the Inspector General, Evaluation of the MIDA Italy
Project.
344. Ibid.
345. Ibid.
346. Ibid.
349. Ibid.
351. Ibid; Keating, email correspondence with author, October 2011.
246 352. Altai Consulting, An Evaluation of the EU-RQA Program.
353. Ibid., 25.
354. Ibid.
BIBLIOGRAPHY
355. Ibid.
356. Ibid.
358. Olga Sulla, “Philanthropic Foundations and their Role in International
Development Assistance” (World Bank International Finance Briefing
Note No. 3, February 27, 2007), http://siteresources.worldbank.org/
INTRAD/Resources/BackgrounderFoundations).pdf.

359. Kathleen Newland, Aaron Terrazas, and Roberto Munster, Diaspora
Philanthropy: Private Giving and Public Policy (Washington, DC: MPI,
2010), www.migrationpolicy.org/pubs/diasporas-philanthropy.pdf.
360. The Giving Pledge, http://givingpledge.org/.
361. Paul K. Piff, Michael W. Kraus, Stéphane Côté, Bonnie Hayden Cheng,
and Dacher Keltner, “Having Less, Giving More: The Influence of
Social Class on Prosocial Behavior,” Journal of Personality and Social
Psychology 99, no. 2 (August 2010) cited in The Economist, “The Rich
are Different from You and Me,” July 29, 2010.
362. “Dado Banatao Success Story,” www.millionaireacts.com/1258/
dado-banatao-success-story.html.
363. Diaspora Matters, “Examples of Global Diaspora Philanthropy
Organizations”.
364. Brazil Foundation, “Overview,” www.brazilfoundation.org/english/
about-us/overview.php.
365. Give2Asia, “Our History,” http://give2asia.org/history.
366. PhilDev, “About Us”.
367. PhilDev, “GILAS Celebrates 3,000 Schools Connection!” (press
release, December 13, 2010).
368. Philippine Development Foundation, Annual Report 2010.
369. Hariri Foundation, “Education,” www.hfusa.org/?page_id=21.
370. Institute of Mexicans Abroad (IME), “El Programa IME Becas,”
(Mexicans en el Exterior newsletter, June 2008), www.ime.gob.mx/
noticias/boletines_tematicos/ime_becas.pdf.
371. Laglagaron, Protection through Integration: The Mexican
Government’s Efforts to Aid Migrants in the United States.
372. Mina Mashayekhi, “Contribution of Migrants to Development: Trade,
Investment and Development Linkages,” (PowerPoint presentation
made at UNCTAD Ad-Hoc Expert Meeting on Contribution of Migrants
to Development: Trade, Investment and Development held in Geneva,
July 29, 2009), www.unctad.org/en/docs/emditctncd_01_en.pdf.
373. Secretaría de Desarrollo Social (SEDESOL), Subsecretaria de Desarrollo
Social y Humano, Dirección General de Seguimiento, Cuarto: Informe
Trimestral 2010 H. Cámara de Diputados: Programas de Subsidios del
Ramo Administrativo 20 Desarrollo Social, January 2011. 247
374. Ibid.
375. Ibid.
BIBLIOGRAPHY
376. Consejo Nacional de Evaluación de la Política de Desarrollo Social,

“Informe de la evaluación específica de desempeño: Programa 3
x 1 para Migrantes”; SEDESOL, Subsecretaria de Desarrollo Social
y Humano, Dirección General de Seguimiento, Cuarto: Informe
Trimestral 2010 H. Cámara.

377. Fondo de Inversión Social para el Desarrollo Local (FISDL), “Programa
de Apoyo Temporal al Ingreso, PATI,” September 21, 2010, www.fisdl.
gob.sv/temas/programa-de-apoyo-temporal-al-ingreso-pati.html;
Sarah Gammage, “El Salvador, Despite End to Civil War, Emigration
Continues,” Migration Information Source, July 2007, www.
migrationinformation.org/Profiles/display.cfm?ID=636.
378. International Labour Organization (ILO), Pacto Mundial para el
Empleo Estudio nacional (El Salvador) (Geneva: ILO, 2011) www.ilo.
org/wcmsp5/groups/public/---dgreports/---integration/documents/
publication/wcms_152198.pdf.
379. Ibid; FISDL, Memoría de Labores 2010 (San Salvador, El Salvador: FISDL,
2010), www.fisdl.gob.sv/especiales/memorias_de_labores/2010/.
380. GTZ, The Ghanaian Diaspora in Germany: Its Contribution to
Development in Ghana, 2009, http://www.giz.de/Themen/en/
dokumente/en-ghanaian-diaspora-2009.pdf.
381. Ibid.
382. Deutsch-Marrokanisches Kompetenznetzwerk (DMK), “Platform
for Technology Transfer and Capacity Building,” (Powerpoint
presentation, delivered in Brussels on February 25-26, 2010).
383. Armando Guadarrama, Develop Your World: Case Studies (New York:
Hispanics in Philanthropy, 2011), http://www.hiponline.org/storage/
documents/transnational_diaspora_casestudies_en.pdf.
384. Hispanics in Philanthropy (HIP), “Transnational,” www.hiponline.org.
385. HIP, “About the Program,” http://hiponline.org.
386. For a more detailed explanations of these and other projects
supported by the Promoting Diaspora Support for Local Productive
Initiatives in Latin America program, see Guadarrama, Develop
Your World; David Myhre, Opportunities and Challenges Facing
Diaspora-Inclusive Productive Initiatives in Latin America: A Report
for the Multilateral Investment Fund Inter-American Development
Bank (San Francisco: HIP, 2011), http://www.hiponline.org/storage/
documents/Myhre_HIP_Report_June2011.pdf.
248 388. Ibid.
389. Ibid.
390. Newland, Terrazas, and Munster, Diaspora Philanthropy.
BIBLIOGRAPHY

392. Ibid.
393. Ibid.
394. Aaron Terrazas, Diaspora Investment in Developing and Emerging
Country Capital Markets: Patterns and Prospects (Washington, DC:
MPI, 2010), www.migrationpolicy.org/pubs/diasporas-markets.pdf.

395. Christian Dustmann and Josep Mestres, “Savings, Asset Holdings,
and Temporary Migration” (discussion Paper No.05/10, Centre for
Research and Analysis of Migration, 2010), www.cream-migration.
org/publ_uploads/CDP_05_10.pdf.
396. Terrazas, Diaspora Investment in Developing and Emerging Country
Capital Markets.
397. National Bank of Ethiopia, “Directive No. FXD/31/2006 Amendment
to Directive No. FXD/25/2004 Establishment and Operation of
Foreign Currency Account for Non-Resident Ethiopians and Non-
Resident Ethiopian Origin,” www.mfa.gov.et.
398. Central Bank of the Republic of Turkey, “Information on the Foreign
Currency Deposit Accounts with Credit Letter and Super FX Accounts
Opened with Our Bank,” www.tcmb.gov.tr/iscidvz/iscidozengyeni.htm.
399. Terrazas, Diaspora Investment in Emerging and Developing Country
Capital Markets.
400. Ibid.
401. J.S. Birks and C.A. Sinclair, “Human Capital on the Nile: Development and
Migration in the Arab Republic of Egypt and the Democratic Republic
of the Sudan” (ILO World Employment Program, Working Paper 2–26/
WP 27, May 1978); Ghana Ministry of Finance and Economic Planning,
“Golden Jubilee Savings Bond,” www.mofep.gov.gh/gj_bond.htm;
Suhas L. Ketkar and Dilip Ratha, “Diaspora Bonds: Tapping the
Diaspora During Difficult Times,” Journal of International Commerce,
Economics, and Policy, Vol. 1, No. 2 (2010) 251-63, http://siteresources.
worldbank.org/TOPICS/Resources/214970-1288877981391/Ketkar-
Ratha.pdf; Suhas Ketkar and Dilip Ratha, Development Finance via
Diaspora Bonds: Track Record and Potential (paper presented at
the Migration and Development Conference at the World Bank,
Washington, DC, May 23, 2007), http://siteresources.worldbank.org/
INTPROSPECTS/Resources/334934-1100792545130/Diasporabonds.
pdf; Ministry of Foreign Affairs, Diaspora Engagement Affairs General
Directorate, Basic Information for Ethiopian in the Diaspora (Addis
Ababa, Ethiopia: Ministry of Foreign Affairs, 2011), www.mfa.gov.et;
Terrazas, Diaspora Investment in Developing and Emerging Country
Capital Markets.
402. The Economist, “Milking Migrants: How Poor Countries Can Tap 249
Emigrants’ Savings,” The Economist, August 20, 2011, www.
economist.com/node/21526324.
BIBLIOGRAPHY
403. Ghanaian Ministry of Finance and Economic Planning, “Golden

Jubilee Savings Bond (Summary).”
404. Ghana News Agency, “Jubilee Bond offer fails to meet target,”
September 14, 2011, http://business.myjoyonline.com/pages/
news/200808/19417.php.

405. Development Corporation for Israel, “Building a Modern Nation”.
406. Diaspora Matters, “What Countries Have Done This Well?” May 16,
2011.
407. Daily Ethiopia, “Forex Bonds Floated for Diaspora,” August 18, 2011,
www.dailyethiopia.com/index.php?aid=1012.
408. Sonia Plaza, “Ethiopia’s New Diaspora Bond: Will It Be Successful This
Time?” World Bank People Move blog, August 23, 2011, http://blogs.
worldbank.org/peoplemove/node/1387.
409. Home Development Mutual Fund, “Who Should Register with the
Pag-IBIG Fund as Members?”.
410. Romi Bhatia, “Linking Remittances to Housing Microfinance,”
(PowerPoint presentation delivered in Washington, DC, in February
2008).
411. Microfinance International Corporation (MFIC), “MFIC Enters in
Strategic Relationship with Fedecredito to Jointly Serve Salvadoran
Transnational Families,” April 19, 2010, www.mfi-corp.com/index.
php/en/fedecredito-2010.html.
412. Diaspora Matters, “Key factors for success”.
413. Suhas Ketkar and Dilip Ratha, eds. 2009. Innovative Finance for
Development (Washington DC: World Bank, 2009).
414. Aaron Terrazas, Diaspora Investment in Developing and Emerging
Country Capital Markets: Patterns and Prospects (Washington DC:
Migration Policy Institute, 2010).
415. Dilip Ratha, “Diaspora bonds for development financing during a
crisis,” The World Bank, October 25, 2010, http://blogs.worldbank.
org/peoplemove/node/1303.
416. Bhatia, “Linking Remittances to Housing Microfinance.”
417. World Tourism Organization (UNWTO), “UNWTO Presents Overview
of International Tourism in 2010,” June 2011, http://media.unwto.
org/en/news/2011-06-29/unwto-presents-overview-international-
tourism-2010.
418. UNWTO, “International Tourism Maintains Momentum Despite
Challenges” (press release, June 30, 2011), http://media.unwto.
org/en/press-release/2011-06-30/international-tourism-maintains-
250 momentum-despite-challenges.
419. UNWTO, UNWTO Tourism Highlights 2011 Edition (Madrid:
UNWTO, 2011), http://mkt.unwto.org/sites/all/files/docpdf/
unwtohighlights11enhr_1.pdf.
BIBLIOGRAPHY
420. Ibid.
421. Ibid.
422. Interview of Hanna Simon, Department of Eritreans Abroad, April
2011.
423. United Nations Educational, Scientific, and Cultural Organization
(UNESCO), “Tables: Number of World Heritage Properties by region,”
http://whc.unesco.org/en/list/stat#s1.
424. Discover Ireland, “Tracing Your Ancestry: Go back to your roots with
an exceptional voyage of self-discovery,” www.discoverireland.com/
us/ireland-things-to-see-and-do/culture-and-sights/trace-your-
ancestry/.
425. Ancestral Scotland, “Research Your Roots,” www.ancestralscotland.
com/research-your-roots/.
426. The Ministry of Overseas Indian Affairs, “Tracing the Roots,”
http://moia.gov.in; Bihar Foundation “Trace Your Roots,” http://
biharfoundation.in; Jayanth Jacob, “With Bihar & UP, MOIA sets
out to trace PIO roots,” The Indian Express, April 2006, www.
overseasindian.in.
427. UNESCO, “Cultural Tourism and the African Diaspora Heritage Trail,”
http://portal.unesco.org/en/ev.php-URL_ID=43075&URL_DO=DO_
TOPIC&URL_SECTION=201.html; UNESCO, “African Diaspora Heritage
Trail Conference 2006: Linking our Futures,” http://portal.unesco.
org/culture/en/ev.php-URL_ID=31848&URL_DO=DO_TOPIC&URL_
SECTION=201.html.
428. Economic and Social Development, Homecoming Scotland 2009
Economic Impact: Report for Homecoming Scotland (Glasgow,
Scotland:Ekos Ltd., 2010), www.homecomingscotland2009.com/
Repository/review/Homecoming_Scotland_2009_-_Economic_
Impact.pdf.
429. Economic and Social Development, Homecoming Scotland 2009
Economic Impact: Report for Homecoming Scotland, March 2010,
http://www.homecomingscotland2009.com/Repository/review/
Homecoming_Scotland_2009_-_Economic_Impact.pdf.
430. The Scottish Government. “Second Homecoming in 2014,”
May 25, 2010, http://www.scotland.gov.uk/News/Releas-
es/2010/05/25113855.
431. Kathleen Newland and Carylanna Taylor, Heritage Tourism and
Nostalgia Trade: A Diaspora Niche in the Development Landscape
(Washington, DC: MPI, 2010), www.migrationpolicy.org/pubs/
diasporas-tradetourism.pdf; Mary Jordan, “Seeking Answers
With Field Trips in Faith,” The Washington Post, June 25, 2007,
www.washingtonpost.com/wp-dyn/content/article/2007/06/24/
AR2007062401422.html. 251
432. Taglit-Birthright Israel, “About Us,” www.birthrightisrael.com/site/
PageServer?pagename=about_main.
BIBLIOGRAPHY
433. Taglit-Birthright Israel, “Over 22,000 Register for Taglit-Birthright

Israel Trips This Winter” (press release, September 25, 2011), www.
birthrightisrael.com.
434. Ibid.
435. Leonard Saxe, Theodore Sasson, Shahar Hecht, Benjamin Phillips,
Michelle Shain, Graham Wright, and Charles Kadushin, Jewish

Futures Project: The Impact of Taglit-Birthright Israel: 2010 Update
(Waltham, MA: Maurice and Marilyn Cohen Center for Modern
Jewish Studies, Brandeis University, 2011), www.brandeis.edu/cmjs/
pdfs/jewish%20futures/Jewish.Futures.02.08.11.pdf.
436. Birthright Armenia, “Statistics,” www.birthrightarmenia.org/pages.
php?al=statistics.
437. CFO, “Lakbay-Aral Program,” www.cfo.gov.ph/index.php?option=com_
content&view=article&id=1332&Itemid=896.
438. Nepomak, “NDCP: Basic Info,” www.nepomak.org; Christos Karaolis,
“NEPOMAK Diaspora engagement model,” May 12, 2011.
439. US Government Accountability Office, Visa Waiver Program: DHS
Has Implemented the Electronic System for Travel Authorization, but
Further Steps Needed to Address Potential Program Risks GAO-11-
335, http://www.gao.gov/new.items/d11335.pdf.
440. Inter-Parliamentary Union, Tourism and the Imperatives of
Sustainable Development: Statement of the Committee for
Sustainable Development endorsed by the Inter-Parliamentary
Council at its 164th session (Brussels, 16 April 1999), http://www.
ipu.org/cnl-e/164-trsm.htm; John Lyman, “Second EU/IMF Economic
Bailout Likely for Athens,” Journal of Foreign Relations, June 7, 2011;
Corthwright Marshall “The Challenges facing the Tourism Industry in
Antigua and Barbuda” (PowerPoint presentation made by Director
General of Tourism of Antigua, Ministry of Tourism & Civil Aviation).
252
BIBLIOGRAPHY

About the Authors
Dovelyn Rannveig Agunias is a Policy Analyst at the Migration Policy

Institute (MPI) and a Regional Research Officer at the International
Organization for Migration (IOM) based in Bangkok, focusing on Asia-
Pacific policy. Her areas of expertise include temporary and circular
migration, particularly between Asia and the Middle East; diaspora policy;
and the migration-development nexus.
Her most recent publications include Running in Circles: Progress and

Challenges in Regulating Recruitment of Filipino and Sri Lankan Labor
Migrants to Jordan, Labor Migration from the Colombo Process Countries
(co-author), Migration’s Middlemen: Regulating Recruitment Agencies
in the Philippines-UAE Corridor, Closing the Distance: How Governments
Strengthen Ties with their Diasporas, and Guiding the Invisible Hand:
Making Migration Intermediaries Work for Development.
Before joining MPI and IOM, Ms. Agunias was an Edward Weintal Scholar
at the Institute for the Study of Diplomacy in Washington, DC and a factory
worker and part-time domestic worker in Reykjavik, Iceland.
She holds a master’s degree in foreign service with honors from Georgetown
University, where she concentrated in international development, and a
bachelor’s degree in political science, cum laude, from the University of
the Philippines.
ABOUT THE AUTHORS
253

Kathleen Newland is Co-Founder of the Migration Policy Institute
and directs MPI’s programs on Migrants, Migration, and Development
and Comprehensive Protection for Refugees. Her work focuses on
the relationship between migration and development, governance of
international migration, and refugee protection.
Previously, at the Carnegie Endowment for International Peace, she was

a Senior Associate and then Co-Director of the International Migration
Policy Program (1994-2001). She sits on the Board of the International
Rescue Committee, and is a Chair Emerita of the Women’s Commission for
Refugee Women and Children. She is also on the Boards of the Foundation
“The Hague Process on Migrants and Refugees” and of Kids in Need of
Defense (KIND).
Prior to joining the Migration Program at the Carnegie Endowment in

1994, Ms. Newland worked as an independent consultant for such clients
as the UN High Commissioner for Refugees, the World Bank, and the office
of the United Nations Secretary-General. From 1988-92, Ms. Newland
was on the faculty of the London School of Economics. During that time,
she also co-founded (with Lord David Owen) and directed Humanitas,
an educational trust dedicated to increasing awareness of international
humanitarian issues. From 1982-88, she worked at the United Nations
University in Tokyo. She began her career at Worldwatch Institute in 1974.
Ms. Newland is a graduate of Harvard University and the Woodrow Wilson
School at Princeton University. She did additional graduate work at the
London School of Economics.
ABOUT THE AUTHORS
For more MPI research on diaspora engagement, visit

www.migrationpolicy.org/research/migration_development.php.
254

The opinions expressed in the report are those of the authors and do not necessarily
reflect the views of the International Organization for Migration (IOM). The designations
employed and the presentation of material throughout the report do not imply the
expression of any opinion whatsoever on the part of IOM concerning the legal status
of any country, territory, city or area, or of its authorities, or concerning its frontiers or
boundaries.
IOM is committed to the principle that humane and orderly migration benefits migrants
and society. As an intergovernmental organization, IOM acts with its partners in the
international community to: assist in meeting the operational challenges of migration;
advance understanding of migration issues; encourage social and economic development
through migration; and uphold the human dignity and well-being of migrants.
The Migration Policy Institute (MPI) is guided by the philosophy that international
migration needs active and intelligent management. When such policies are in place
and are responsibly administered, they bring benefits to immigrants and their families,
communities of origin and destination, and sending and receiving countries.
Publisher: International Organization for Migration

1211 Geneva 19
Switzerland
Tel.: +41.22.717 91 11
Fax: +41.22.798 61 50
E-mail: [email protected]
Internet: www.iom.int

Washington, DC 20036
United States
Tel.: +1.202.266 1940
Internet: www.migrationpolicy.org/store
ISBN 978-92-9068-628-6
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A H A N D B OOK F OR POL IC YM A K ER S A N D
P R A C T IT ION ER S IN H OM E A N D H OST C OU N T R IES
International Organization for Migration

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Developing a Road Map

for Engaging Diasporas

International Organization for Migration

Publisher: International Organization for Migration

Migration Policy Institute

All rights reserved. No part of this publication may be reproduced, stored in a

Dovelyn Rannveig Agunias and Kathleen Newland

Both of our institutions, the International Organization for Migration

We are confident that this handbook will give further impetus to

Developing a Road Map for Engaging Diasporas in Development

return again and again.

Demetrios G. Papademetriou William Lacy Swing

Developing a Road Map for Engaging Diasporas in Development

Frank Laczko, Head of the Migration Research Divison, IOM

The authors also gratefully acknowledge the thoughtful comments

They give special thanks to the governments of Albania, Armenia,

Developing a Road Map for Engaging Diasporas in Development

They are also extremely grateful to Sofia Banuelos, Regina Barbosa,

Awil Mohamoud, Ousman Nacambo, Imelda Nicolas, Edwin Paraison,

Developing a Road Map for Engaging Diasporas in Development

Chapter 2: Building Capacity for Effective Implementation........ 37

Chapter 3: Monitoring Progress and Measuring Impact ............ 55

Part 2: Building Institutions and Reducing Barriers........................67

Chapter 5: Reducing Barriers..................................................... 95

Developing a Road Map for Engaging Diasporas in Development

Chapter 7: Direct Investment: Finding and Attracting

Chapter 8: From “Return of Talent” to “Brain Circulation”

to “Virtual Return”: Evolving Ideas on the

Chapter 9: Philanthropic Contributions................................... 187

Chapter 10: Capital Market Investments................................. 205

Chapter 11: Diaspora Tourism................................................. 215

About the Authors.................................................................. 253

Developing a Road Map for Engaging Diasporas in Development

Governments of countries of migrant origin and migrant destination

Part One, in three chapters, outlines a strategy for diaspora

Chapter 2 focuses on capacity building, an essential component

Developing a Road Map for Engaging Diasporas in Development

Chapter 3 highlights the importance of rigorous monitoring and

Part Two of the handbook looks at the legal and institutional

frameworks that governments have established to facilitate diaspora

Chapter 5 examines the legislative and regulatory frameworks

The six chapters of Part Three each examine a key programmatic

Developing a Road Map for Engaging Diasporas in Development

Chapter 6 points to two trends in remittance policy: a focus on

Direct investment by diaspora entrepreneurs and venture capitalists 11

Chapter 8 explores new policy directions relating to the transfer of

The role of private philanthropy in development is expanding, and

Developing a Road Map for Engaging Diasporas in Development

Chapter 10 turns to a relatively neglected dimension of financial

and securitization of future remittance flows.

Chapter 11 examines the role of diasporas in one of the main sources

Developing a Road Map for Engaging Diasporas in Development

Diasporas’ engagement with their countries of origin is not new.

The first four meetings of the Global Forum on Migration and

Developing a Road Map for Engaging Diasporas in Development

The widespread recognition of diasporas’ role in development has

This handbook is designed to fill gaps in the current discourse on

the handbook presents a carefully selected menu of viable policy

■■At various levels (regional, national, and local)