Tuesday, November 18, 2008

African Governments Need to Mobilize the Diaspora

The mobilization of diasporic communities has been one aspect of development generally unexplored in the context of Africa. As is the case with other diasporas, the African diaspora has the potential to serve a niche in the development of the continent. Case studies from other countries and regions have demonstrated how diasporic communities can be utilized to promote development.

In the case of China, the Chinese government was able to increase foreign direct investments by sponsoring conferences, delegation visits, and providing preferential treatment to overseas Chinese investors. The Indian government has also implemented similar programs making it easier for diasporic communities in the United States to invest in the country. Within the Indian government’s Ministry of External Affairs a Special High Level Committee on the Indian Diaspora was established to encourage Indians in America to invest in Indian companies through the creation of an “India Fund”, deposit savings accounts in Indian banks, and ease the process of attaining dual citizenship. In the case of South Korea, the Korean Export Bank saw an opportunity in the wig industry and orchestrated a strategic plan to provide South Korean wig manufacturers and immigrant wholesales and retailers, with subsidized loans. The implementation of this plan led to a take over of the industry, increasing South Korea’s share of the US wig market from 5 percent in 1965 to 89 percent in 1972.

Using similar models, African countries could experiment with various kinds of development programs. Incentives are some of the best means of promoting repatriation although they can be costly. Temporary tax exemptions for diaspora start up businesses could promote more direct investment. Additionally, African governments could provide higher salaries or honorary posts for exceptional members of the diaspora contributing to development. However, lack of opportunity, corruption and weak institutions are some of the biggest deterrents to repatriation worldwide (not just in Africa), therefore governments have to strive to promote transparency and intellectual freedom.

The establishment of a Department or Office of Diaspora Affairs could also facilitate a prolific dialogue between the diaspora and homeland. This department could help:

1. Link diaspora and homeland entrepreneurs
2. Negotiate business and legal transactions between diasporic entrepreneurs and government officials
3. Solicit the diaspora for special aid projects (disaster relief)
4. Provide supportive services for citizens intending to live overseas (free language classes, assistance in locating housing, and/or assistance with basic business acumen such as writing grants or business proposals)

The African diaspora is a largely untapped resource in terms of continental development and, properly mobilized, has the ability to provide much needed support toward reaching development goals.

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