Diaspora and development:some considerations: Diaspora and development: some considerations Manuel Orozco Inter-American Dialogue June 16th, 2006


I. The Geography of migration and remittances: distant proximities through transnationalism: I. The Geography of migration and remittances: distant proximities through transnationalism Asia Japan Hong Kong Philippines China India Singapore Vietnam Thailand Malaysia Africa South Africa Congo Ghana Morocco Malawi Ethiopia Mozambique Lesotho Swaziland America United States Canada Brazil Mexico El Salvador Dom. Rep. Ecuador Jamaica Cuba Colombia Paraguay Venezuela Haiti Europe France U.K. Germany Italy Belgium Spain Turkey Albania Armenia Greece Portugal Oceania Australia New Zealand Middle East United Arab Em. Saudi Arabia Kuwait Jordan Egypt


Slide3: Immigrant economic practices (annual expenses) Consumption Donations Family remittances Capital investment Household economy (US$270) Community (US$10,000 year) Trade and services retail (US$3,000) Property and other I (US$5,000)


Percent of salvadorans who…: Percent of salvadorans who…


Percent of Ghanaians who . . .: Percent of Ghanaians who . . .


Goods bought by Haitian diaspora: Goods bought by Haitian diaspora


II. Prevailing issues between the intersection between diasporas and development: 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


Relevance of the nexus: 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 2003:10-11). Diasporas are formed in part as a response to changes in the composition of the international system and of underdevelopment


Cues and considerations about diasporas and development. . .: 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)


2. Linking Development to Migrant Economic Practices: 2. Linking Development to Migrant Economic Practices


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;: 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; Economic interactions Productive base demand supply Enabling environment


4. understanding the level of engagement diasporas can have in development is crucial : 4. understanding the level of engagement diasporas can have in development is crucial


Level of engagement: 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 US$350


Level of transnational engagement for Ghanaians in: Level of transnational engagement for Ghanaians in


Level of migrant engagement: 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


5. Communication is important: 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;


III. Current donor practices: 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


List of best practices in remittance transfers, donations and other activities: List of best practices in remittance transfers, donations and other activities


Transnational engagement: Transnational engagement


Factors contributing to diasporization: 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 homeland’s perceptions of emigrants, the outreach policies by governments in the homeland, and the existence of relationships between source and destination countries.


Slide23: 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 (US$10,000); 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.


Mexican ‘clubes de oriundos’: Mexican ‘clubes de oriundos’


Mexican Clubs by State of Origin: 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.


Issue identification: Range of Activities (% of HTAs working on given project): Issue identification: Range of Activities (% of HTAs working on given project)


Resource allocation: Resource allocation


Impact on the community : 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


Impact on the community: Impact on the community


Iniciativa Ciudadana, 3x1: Iniciativa Ciudadana, 3x1 Key trends and issues


Distribution of 3x1 Funds by state in 2002 (in thousands US$) : Distribution of 3x1 Funds by state in 2002 (in thousands US$)


Average amounts budgeted for 3x1 projects and HTA contribution (in US$) : Average amounts budgeted for 3x1 projects and HTA contribution (in US$)


Range of activities performed under 3x1 program : Range of activities performed under 3x1 program


Budget allocation, HTA donations and population (mean values) : 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.


Guyanese community organizations: Guyanese community organizations


Guyanese Associations in Canada and the United States: Guyanese Associations in Canada and the United States


Year association was founded (%): Year association was founded (%)


Activities carried out by HTAs: Activities carried out by HTAs


Size of HTA donation: Size of HTA donation


Projects of interest to participate in a partnership with USAID: Projects of interest to participate in a partnership with USAID


El Salvadoran ‘Comunidades’: El Salvadoran ‘Comunidades’


Salvadoran associations: Salvadoran associations


Partnership HTA and FISDL project: Partnership HTA and FISDL project


HTA-FISDL partnerships: HTA-FISDL partnerships


Ghanaian HTAs: Ghanaian HTAs


Belonging to hometown associations: 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’.


Other characteristics of Ghanaian HTA activism: 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


Are there opportunities for donor partnership with HTAs?: Are there opportunities for donor partnership with HTAs? Are partnerships possible? Should donors become involved and how?


Key questions on the intersection between development and diaspora philanthropy : 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


Slide50: Definition of four criteria for evaluating development potential Three-for-One Program projects and communities in Jerez, Zacatecas Source: SNIM n.d.; SEPLADER 2004.


Some opportunities:: 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.


The realism of the possible: The realism of the possible Politics matter Size and symmetry considerations; Flexibility and creativeness Impact potential


The International Context of Diasporas: The International Context of Diasporas Mobilize on behalf of homeland Outreach for self-interest Seek govt. for protection Influence home country affairs Influence foreign policy Outreach to cultivate goals in home country


Phone calls to selected Latin American countries, (x000): 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.)