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How does the diaspora impact the economic development of countries in Asia and Africa?

Gidget Scrammage

The diaspora has become a significant factor in the economic development of countries in Asia and Africa. Diaspora refers to people who have migrated or moved from their original country of birth to another country as a result of social, economic, or political reasons.

One of the most significant impacts of the diaspora in Asia and Africa is remittances. Remittances refer to the money that diaspora members send back to their home countries. According to the World Bank, in 2019, global remittances were estimated to be around $555 billion, and in 2020, it is said to have decreased to $548 billion.

Diaspora members from Asia and Africa contribute significantly to the remittance value by sending money to their respective home countries. These remittances are a significant source of income for many families in developing countries and have contributed significantly to poverty reduction. In some countries, remittances have helped to support education, health, and housing, which further fuels economic growth.

The diaspora impact also affects the development of small and medium enterprises (SMEs). Diaspora members have significant economic influence in their host countries and often operate SMEs that provide employment opportunities, entrepreneurial skills, and export markets. These SMEs help create jobs and generate revenues in the home country and support local economic growth. Diaspora entrepreneurs with expertise, networks, and investment capital are often sought for their partnerships and investment.

Additionally, the diaspora can support economic development by sharing knowledge, skills, and expertise that are not always available within the home country. For example, the diaspora can provide training, mentorship, and business advice to SMEs.

Furthermore, the diaspora can act as cultural ambassadors in their countries of settlement, promoting their home country's goods and services. This can lead to increased trade and investment opportunities for their home country, particularly in the form of tourism, which can provide jobs and generate income.

Notably, the diaspora also plays an essential role in advancing development by advocating for and supporting policies and initiatives that benefit their home country. Through their networks and influence, diaspora members can lobby governments, mobilize resources and support programs that generate economic growth and alleviate poverty.

To conclude, the diaspora has a significant impact on the economic development of countries in Asia and Africa. Their remittances, support for SMEs, knowledge-sharing, cultural advocacy, and policy advocacy contribute significantly to economic growth and help to alleviate poverty. Governments can support the diaspora and leverage their skills, knowledge, and resources to foster sustainable economic development in their home countries.