4th theme for discussion: Diasporas drive development

Migrants play a key role in driving sustainable development in their home communities. In fact in recent years, remittances from migrant workers have been outpacing official aid flows and even foreign direct investment (FDI) as a source of external finance for many developing countries. In 2008 alone, remittance flows to developing countries reached $328 billion. At a micro-level, remittances between individuals and their families are significant in covering everyday life needs; at the macro-level, collective pooling of remittances has enabled investments into longer term development and infrastructure projects (see the Asia Remittance Study).

The global economic crisis is expected to cause a 7-9% decline in overall remittance flows to all the developing regions in 2009. This is a source of much concern. But, given that other resource flows (private debt, equity, FDI) are expected to contract by as much as 50%, the relative importance of remittances may become even more vital for the external financing position of developing countries.

So, as the financial crisis continues, how can diasporas continue work as a strong force for development for their countries of origin, through remittances, and also through promotion of trade, investments, knowledge and technology transfers? What policies and initiatives are necessary to sustain the lifeline of remittances to developing countries from which migrants come? What may be the implications of more restrictive migration policies on behalf of destination countries? How can diaspora networks be involved in projects in their home communities? What partnerships can provide critical support and help identify and implement viable projects? Are there best practice examples of partnerships involving diasporas in driving development in their countries of origin and in promoting exchange of capacity, knowledge and technology between their host and home countries?

For further reading see:

World Bank: Migration & Remittances

Economist Intelligence Unit

Western Union Global Migration