Diaspora Engagement Policy in South Asia

Abstract

Modern diasporic communities — which live outside but maintain links with their country of origin — are getting larger and stronger and influencing both domestic politics and foreign relations of a state. In an era of accelerated globalization, the relationship between diaspora and economic and social development of many countries is increasingly relevant. Globalization has greatly expanded the means through which people in one country can remain actively involved in another country’s cultural, economic and political life. Governments of many developing countries and other international agencies are acknowledging diasporas’ potential contribution to economic development. A diaspora can be a direct source of advantage to the country of origin when its members have the desire and ability to trade with, invest in and outsource to domestic businesses (Kapur, 2010: 186). The persistence of ‘home bias’ indirectly explains the behaviour of diasporas and their social proximity (Kapur, 2010: 186). A diaspora can also be an indirect source of advantage to the country of origin when its members act as intermediaries — matching trading partners, supporting contracting by leveraging long-term relationship with people from the new and former homes and most importantly overcoming negative national stereotypes through demonstrations of their capabilities abroad (Kapur, 2010: 186).