Diaspora and development: some considerations

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Diaspora and developmentsome considerations

• Manuel Orozco
• Inter-American Dialogue
• June 16th, 2006

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I. The Geography of migration and remittances
distant proximities through transnationalism
Africa South Africa Congo Ghana Morocco Malawi E
thiopia Mozambique Lesotho Swaziland
America United States Canada Brazil Mexico El
Salvador Dom. Rep. Ecuador Jamaica Cuba Colombia P
araguay Venezuela Haiti
Europe France U.K. Germany Italy Belgium Spain Tu
rkey Albania Armenia Greece Portugal
Asia Japan Hong Kong Philippines China India Sing
apore Vietnam Thailand Malaysia
Oceania Australia New Zealand
Middle East United Arab Em. Saudi
Arabia Kuwait Jordan Egypt
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Immigrant economic practices (annual expenses)
Capital investment
Consumption
Donations
Family remittances
Trade and services retail (US3,000)
Community (US10,000 year)
Household economy (US270)
Property and other I (US5,000)
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Percent of salvadorans who
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Percent of Ghanaians who . . .
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Goods bought by Haitian diaspora
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II. Prevailing issues between the intersection
between diasporas and development

• What role for donors and diasporas?
• Coexistence between experimentation and
  reluctance
• Development experts disbelief about migrants
  role in development
• Limited knowledge about diasporas and their
  presence, work and quality
• Lack of expertise and focus by diasporas
• Academic reluctance to jump into policy or frame
  policy issues
• Relationship to migration makes subject matter
  political
• No communication or outreach to the diaspora

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Relevance of the nexus

• The sheer number of diasporas and their impact
  justify the link with development
• socio-political formation, created as a result
  of either voluntary or forced migration, whose
  members regard themselves as of the same
  ethno-national origin and who permanently reside
  as minorities in one or several host countries.
  Members of such entities maintain regular or
  occasional contacts with what they regard as
  their homeland and with individuals and groups of
  the same background residing in other host
  countries (Sheffer 200310-11).
• Diasporas are formed in part as a response to
  changes in the composition of the international
  system and of underdevelopment

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Cues and considerations about diasporas and
development. . .

• Identify the dimensions from which the is a link
  with development
• Development in the diaspora
• Development through the diasspora
• Development by the diaspora (Robinson 2002)

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2. Linking Development to Migrant Economic
Practices
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3. The Limits of the Economic Activities in
Promoting Development The impact however is not
a solution to the challenges of development
Structural problems of poverty and inequality are
beyond migration and remittances and the broader
effect depends on the productive base of local
economy to absorb foreign savings
demand
Productive base
Economic interactions
supply
Enabling environment
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4. understanding the level of engagement
diasporas can have in development is crucial
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Level of engagement

• Index for extent of engagement
• At least traveling once a year
• At least calling once a week
• Buying home country goods
• Helping family with other economic obligations
• Has bank account in home country
• Has a mortgage loan in home country
• Sends over US350

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Level of transnational engagement for Ghanaians in
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Level of migrant engagement

• Migrants in home country who
• Have a bank account,
• Have a Mortgage,
• Have a small family or commercial business,
• Have a loan to maintain personal business
• Have a student loan
• Have a pension plan
• Lends money for family investments
• Stays in regular contact with families
• Leaves with the family half the cash it brought
  in the last visit
• Support or contribute to hometown associations or
  clubs that help your home country

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5. Communication is important

• Donors and diasporas need a mechanism by which
  communication and information about each others
  exist
• Both parties need to take the risk to find
  opportunities to work together

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III. Current donor practices

• i. Diaspora Outreach Policy
• ii. Business competition
• iii. Financial democracy Banking the unbanked
• iv. Investment and Micro-enterprise Incentives
• v. Hometown Associations as Agents of Development
• vi. Tourism
• vii. Nostalgic Trade
• viii. Macroeconomic policy
• ix. Knowledge exchange

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List of best practices in remittance transfers,
donations and other activities
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Transnational engagement
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Factors contributing to diasporization

• The level of community and particularly elite
  and activist consciousness about the need or
  desire for link with the homeland (ie, HTAs),
• the homelands perceptions of emigrants,
• the outreach policies by governments in the
  homeland, and
• the existence of relationships between source and
  destination countries.

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• Latin American hometown associations

• HTAs are small voluntary philanthropic
  organizations
• Their organizational structure is commensurate to
  the groups proposed goals
• The activities focus on basic health, education
  and public infrastructure
• The resources raised are relatively small in
  volume (US10,000)
• Donations are significant however in rural
  recipient localities
• Partnership with governments enhance development
  goals.

Source Orozco, Manuel (2003), Hometown
Associations and their Present and Future
Partnerships New Development Opportunities?
Inter-American Dialogue, Report commissioned by
the U.S. Agency for International Development.
Washington, DC. September.
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Mexican clubes de oriundos
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Mexican Clubs by State of Origin
Source Orozco, Manuel (2003), Hometown
Associations and their Present and Future
Partnerships New Development Opportunities?
Inter-American Dialogue, Report commissioned by
the U.S. Agency for International Development.
Washington, DC. September.
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Issue identification Range of Activities ( of
HTAs working on given project)
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Resource allocation
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Impact on the community

• the aggregate volume of donations goes mostly to
  rural Mexico
• the allocation of goods normally unavailable
• the impact on civic participation
• the effect on the localities vis a vis local
  government resources allocated for public works

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Impact on the community
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Iniciativa Ciudadana, 3x1

• Key trends and issues

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Distribution of 3x1 Funds by state in 2002 (in
thousands US)
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Average amounts budgeted for 3x1 projects and HTA
contribution (in US)
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Range of activities performed under 3x1 program
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Budget allocation, HTA donations and population
(mean values)
Source Orozco, Manuel (2003), Hometown
Associations and their Present and Future
Partnerships New Development Opportunities?
Inter-American Dialogue, Report commissioned by
the U.S. Agency for International Development.
Washington, DC. September.
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Guyanese community organizations
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Guyanese Associations in Canada and the United
States
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Year association was founded ()
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Activities carried out by HTAs
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Size of HTA donation
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Projects of interest to participate in a
partnership with USAID
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El Salvadoran Comunidades
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Salvadoran associations
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Partnership HTA and FISDL project
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HTA-FISDL partnerships
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Ghanaian HTAs
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Belonging to hometown associations
Belonging to an HTA is positively associated with
the length of time living outside of the
homeland. The longer the time away the more
likely a person is to join a group. The case of
the U.S. suggests that newest arrivals often seek
homeland identity shelter.
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Other characteristics of Ghanaian HTA activism

• 65 have less than 100 active members (36 have
  less than 50)
• Most activities concentrate on health, education
  and infrastructure. These activities include
• Scholarship fund
• Hospital equipment, including wheelchairs and
  beds
• Build a library
• Send computers to an orphanage
• Backpack project with school supplies
• 68 raises up to 10,000 (43 less than 5,000)
• All HTAs believe that their contribution is well
  appreciated by the community

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Are there opportunities for donor partnership
with HTAs?

• Are partnerships possible?
• Should donors become involved and how?

?
Development
HTAs
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Key questions on the intersection between
development and diaspora philanthropy

• Do the attributes and properties of an HTA
  intersect with those of development players and
  work?
• Understanding their development capacity
• Organizational role
• Ability to identify issues, allocate resources,
  oversee projects
• Partnering and Collaborative role
• Duration and
• Measuring Impact
• Effectiveness of existing partnerships

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Definition of four criteria for evaluating
development potential
Three-for-One Program projects and communities in
Jerez, Zacatecas
Source SNIM n.d. SEPLADER 2004.
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Some opportunities

• Donor relationship with HTA federations
• Social development
• Donor technical assistance for project
  identification
• Donor support on governance and democratic
  participation
• Donor partnerships in social (health and
  education) and infrastructural projects
• Economic development
• Government incentives to attract private sector
  involvement
• Government support in investment feasibility
  analysis
• Financial infrastructure
• Support education on financial services
• Support to link technology to education,
  communication and remittances in the rural areas.

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The realism of the possible

• Politics matter
• Size and symmetry considerations
• Flexibility and creativeness
• Impact potential

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The International Context of Diasporas
diaspora
Seek govt. for protection
Outreach to cultivate goals in home country
Influence home country affairs
Influence foreign policy
Outreach for self-interest
host country
Mobilize on behalf of homeland
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Phone calls to selected Latin American countries,
(x000)
Source Encuesta de inmigrantes en New York US
Census Bureau 2000 and 2001 International
Telecommunications Data, Linda Blake and Jim
Lande. Washington, FCC, December 2001, and
January 2003. calculo basedo en un promedio de
4 llamadas al mes por 5, 8, 15, 25 y 30 minutos
por llamada Formula utilizada es ? de llamadas
minutos anuales Porciento que llama
Porcentaje inmigrantes que remiten (Censo 2000 de
pobl.)