Why Would Countries Want to Befriend Their Diasporas Abroad?

Conventionally, emigration of the skilled, especially from developing to developed countries, is considered to be a brain drain and seen as problematic. That is especially relevant for countries with high emigration numbers, such as India and China, who work on luring back their talents. Also Ireland, considered as a nation of emigrants, has recently launched a program that encourages highly skilled young emigrants to return. According to the World Bank data, about 250m people live outside their country of origin, and global mobility of people is thought only to increase in the future. As such, in spite of all the repatriation initiatives, many will remain abroad and many more will still go abroad, adding to an already large diaspora.

So, what do governments do about this drain? Are these people considered lost resources for the country?

A recent Economist article suggests that although people are gone, they are not to be forgotten. Indeed, the alternative to complaining over brain drain may lie in celebrating the diaspora abroad, which is something many countries already do. These days governments seem to acknowledge the beneficial potential of their diaspora, although the emotional ties of its members towards their country of origin is a resource that remains largely untapped. As noted in one relevant McKinsey & Company publication, ’the yearning for home and the desire to maintain an attachment, even after decades or centuries away from a homeland, is a powerful emotion that nations can marshal to great benefit’.

 

So, how could diaspora populations be an asset to their countries of origin?

Broadly speaking, members of the diaspora can support and enhance the development of their homelands. First and foremost, this happens directly through remittances, which constitute a substantial amount of money inflow for many developing and poorer countries. For example, in Tajikistan, remittances make up more than half of the gross national product, making it a remittances-dependent economy. Yet, as highlighted in the McKinsey article, these money inflows mainly serve to support existential needs of the family, rather than being motivated by national ties and coordinated at a national level. The latter is only the case when diaspora members make direct investments in business or government bonds back in their homelands out of patriotism and care about their home countries. According to the article, India and Israel seem to be the most prominent examples of countries that successfully manage to gain access to the savings of their emigrant populations.

More indirectly, engaged diaspora members can benefit the development of their homelands through sharing knowledge and skills they gained abroad, creating business ties, making philanthropic contributions, advancing geopolitical interests and popularizing new attitudes (e.g. towards gender roles). Bringing some good examples, The Economist article argues that the Turkish government counts on its diaspora in Europe to push for closer relations with the EU, while Ireland started in 2009 to initiate a bi-annual Global Irish Economic Forum that brings together the most influential and innovative Irish business people from around the world.

Naturally, all these potential benefits and cooperation would not emerge unless governments build relationships and engage their diaspora members.

 

So, how to befriend the diaspora?

The McKinsey contributor suggests that diaspora populations should be treated ‘as returning customers rather than fair-weather friends’.

A good example comes from Ireland, which issued the “Global Irish: Ireland’s Diaspora Policy” paper in early 2015. The policy aims ‘to nurture and develop the unique relationship the country has with its emigrants, those of Irish descent and those with an affinity to Ireland’. Moreover, alongside the policy the country launched a Global Irish website containing information on support services, living abroad, staying in touch and returning home to Ireland. There are also several volunteer organizations, such as Ireland XO, which aim to build ‘vibrant, lasting links between the global Irish Diaspora and parishes of origin in Ireland’. Finally, the new Irish passport features a constitutions statement running through its pages, which says ‘the Irish nation cherishes its special affinity with people of Irish ancestry living abroad who share its cultural identity and heritage’.

Appealing to the diaspora is not as easy as it may seem, though. The Economist article highlights that emigrant populations tend to be quite a demanding, picky, unbiddable bunch, who expect representation, good business climate and decent investment returns. For instance, Irish diasporas request for emigrant voting rights (e.g., the We’re Coming Back group), which due to severe pressure from their side are already under consideration by the Irish government. Most probably the efforts of Ireland in engaging their diaspora are worth it. The McKinsey article reports that India and Israel have raised $32 billion and $11.3 billion, respectively, through forms of diaspora bonds, which seems like a huge payback in case the government succeeds.