Diaspora engagement: need for paradigm shift – Indian perspective

Abstract

ABSTRACTContribution by overseas compatriots (diaspora) has gained much attention, and the diasporas are no longer considered as prodigals. Developing countries are looking forward to financial support from their overseas settlers which definitely helps the home country to tide over the balance of payment crisis, build foreign exchange reserves, pay for the import bills, invest in the home country’s economic development, philanthropic support for social projects that help ameliorate living conditions, assist and develop the country’s human resources and also look forward to tap their potential in areas of technical and managerial expertise, and thereby improve local manufacturing and services industries, promote overseas trade, develop the local homeland market and foster entrepreneurship. Diasporas these days have gained voice in the host land. They have earned economic powers and political clout in their country of residence, and are instrumental in shaping host land’ policies towards their country of origin. Studies reveal that for every dollar of overseas remittance or investment, the multiplier effect on the local economy is almost two to three times the invested dollar; till about two and half decades ago, developing and under-developed countries depended on Overseas Development Assistance and Loans, that had strings attached, quite unlike diaspora support without strings attached, but emanates from the diaspora’s desire to remain connected with the homeland – in other words, to ‘belong’ and to create a network that helps the diaspora to do something worthwhile for their countries of origin.