Migration and development

Business activities

In the United States, and more recently in Europe, the trend is for migrants to become independent entrepreneurs. Today, one in twelve entrepreneurs in the western parts of Germany has a foreign passport. While in other international circles the significance of "ethnic entrepreneurship" is reflected in research, this phenomenon attracts relatively little attention in Europe. It has been found that the receiving countries benefit from this trend, but several questions remain unanswered: Can the sending countries benefit as well? Can the entrepreneurial activities of the diaspora community stimulate economic exchange and know-how transfer to countries of origin? How can international development cooperation encourage such activities? Might they be linked to public private partnership (PPP) projects?

Labour migration not only encourages self-employment and innovation: it also affects international trade. Recent studies show that a 10% increase in Latin American immigrants to the United States was accompanied by an 8% increase in exports from their countries of origin. The United States benefited as well, with an increase in exports of 5%.

Labour migration and the creation of diaspora communities thus have the potential for positive economic impact on receiving countries. For example, the Indian IT diaspora in Silicon Valley has contributed very significantly to the economic boom in the United States. Presumably, the Eastern European diaspora communities in Germany have also had their share in boosting economic exchange with their home countries.

How can international cooperation contribute to a better use of diaspora resources for both sending and receiving countries?

Top