Diaspora contributions to development and reconstruction in fragile situations

Migrants send remittances three times worth official development aid to developing countries, reaching an estimated 325 USD Billion in 2012. Transnational migrant and diaspora organizations support social service, infrastructural and reconstruction projects- such as schools and hospitals- in their erstwhile home regions. Finally diaspora professionals contribute to reconstruction and development processes through temporary or long-term return. How can donors partner with them and support their contributions?

Nauja Kleist and Ida Vammen examine this question in a DIIS Report, commissioned by Danida as part of the Research and Communication Programme (ReCom) on Foreign Aid. The findings are summarized in a DIIS Policy Brief by Kleist. Focusing on remittances, diaspora organizations, and return, the study analyses lessons learnt and dilemmas in recent migration-development aid programmes. It shows that programme experiences are mixed and highly contextual but nevertheless identifies the following overall policy recommendations:

- Remittances are private flows but donors can enhance their development effect through reducing transfer costs and providing effective and cheap formal transfer channels. Donors should consider the local effects of tightening remittance transfer regulations, and encourage a risk-weighted approach to regulation.

- Diaspora organizations with local knowledge and transnational activities are potential partners for donors. They can be supported through partnerships, matching funds, and capacity-building, based policy consultation, a participatory, flexible and long-term approach, and in collaboration with local institutions.

- Temporary return of diaspora professionals can facilitate knowledge and resource transfer. Ownership and commitment among the receiving institutions and at the political level must be ensured through involving and upgrading local staff and institutions. Avoid permanent return conditionality and support transnational mobility and rights of migrants and returnees.

- Donors should work for increased policy coherence from a migration-development perspective and consider the division between humanitarian assistance and development aid through flexible programme design and demands.

- Set realistic objectives and time frames. Individual migrants are unlikely to change structural constraints.