Monday, December 3, 2012

Entrepreneurial Role of Diaspora in Economical Development

For the last decades there has in the topic of development been a great deal of discussion regarding the effectiveness of aid going to Africa. This has, to some extent, been caused by the apparent lack of long lasting improvements in the region despite a large amount of inflow of charity from the rest of the world.

Although the reasons for which the effects of this charity can be seen as small is still discussed, one clear outcome of this discussion has been that more emphasis is being put on alternative ways through which the countries in the region can develop.

The alternative that has gained most traction in this discussion is the preference of trade focused solutions to ones focusing on aid. Many people believe that trade based on production within the region will lead to a positive spiral of inflow and accumulation of capital and knowledge which will result in an improved standard of living.

In this context, a movement which is gaining force is manifested by an increasing number of Africans living outside their countries of origin, in brief the diaspora, are seen to create businesses in their countries of origin. Many of these are purely doing it for the purpose of making a profit, while others have more altruistic motives in mind. Regardless of which their motive is, this group of people is being welcomed and in several cases even invited by African nations, as they are seen to be a possibly important factor in future development.

As the diaspora has a unique position living in one country yet coming from another "they contribute to development in which ever society they live in" says Klaas Molenaar, an expert in the field, in his book Enterprising Migrants In The Drivers's Seat. Mr Molenaar has worked with diasporic entrepreneurs since the 90s as a consultant and through his different foundations and is frequently consulted on the topic from many industrialised and developing nations.

In the Horn of Africa, Ethiopia been at the forefront of working actively with Ethiopians abroad who want to create business in their country of origin. For several years, government officials have worked with representatives of the diaspora, devising methods and policy aimed at attracting this group for the sake of development and growth. Also Eritrea, despite its great differences with its neighbouring country, are pursuing a similar path by initiating discussions with its diaspora regarding ways that they can invest and activate themselves in Eritrea's economic activities.

Do you know of any individuals or organisations working with these issues? What do you think the role of diaspora should be?