Wednesday, 31 August 2016

Boosting the Diaspora involvement




                                                                                                        Taye Kebede
Recently the second nationwide Diaspora day was held at Bahir Dar under the theme “Ethiopian renaissance by its citizens”. And at regional level, it was held for the 3rd time also at Bahir Dar. The FDRE government has given attention to Ethiopian born and Ethiopians that are living abroad outside of their country. And, it has been some years since foreign affairs ministry formulated a Diaspora affairs policy and started to implement them.
The FDRE government needed to give attention to the Diaspora because it is impossible to separate the Diaspora community (including those that have changed their nationality) from their home country. It is to benefit the Diaspora from the country they love, while enabling their country benefit from them.
Previously, citizen that migrated to foreign lands from developing countries used to be seen as a loss. Especially, migration of academics was seen as a heavy loss. This is from the thinking that it will cost the home country its productive citizens. Of course a country will be harmed if its productive and able citizens leave for foreign lands in large number. However, recent times has show a shift in seeing citizens that live in developed and civilized countries as potential resource rather than a loss.
Considering citizens that live in foreign countries are for the most part sources for trade links, foreign direct investment and for technological and knowledge transfer, they are given huge attention. As studies show, direct link is created between citizens living in foreign countries and foreign trade. The trade link between country with large number of its citizen living in a foreign country, and the host country is familiar trait.
They create link between manufacturers and consumers of their birth country to the counterparts based at the country they are based in. As they will be users of their country’s products, they create a foreign destination for their country’s products. In addition to this, they create market for products of their home country by promoting it in the country they live in. There is a chance where the Diaspora becomes source of direct foreign investment. In addition to investing in the country of their origin, they also encourage investors of the country of their host to invest by providing them with information. And the government bind countries prepare for their diaspora community will be source of capital. They are also additional source of foreign currency when they send in remittance money to their families and relative back home.
Technological and knowledge transfer is another contribution Diaspora community brings to their country of origin. Citizens that live in developed countries are equipped with the knowledge and skill of their host country. They can transfer these knowledge and skill to their home country through investment and direct training.
In this regard, China and India are the front runners. Although the two countries are mentioned because they have large contingent of Diaspora community abroad, the number of countries that have benefited from such thing are many.
In order to understand the facts in this regard, let us look into the experience of China. The history of Chinese going abroad is long one. Large contingent of Chinese live especially in nearby south east Asia countries like Taiwan, South Korea, Singapore, Thailand, Malaysia, Philippines. Also huge number of Chinese live in north America.
No matter how long this Chinese Diaspora live away from their country, they never stop thinking about their home country. They don’t let go of their culture and tradition in countries they live. And the Chines don’t look those that left their country for abroad as migrants that are gone for good. 
Information shows that the Chinese Diaspora community for the most part is successful in the countries they live in. And following the improvement in China’s economic policy at the end of 70s, their Diaspora community has played huge role in helping grow China’s economy in short span of time. Especially since the beginning of the 90s, the direct investments they make to their country have grown tremendously. 70% out of the 40 billion US dollar that used to enter into China as direct foreign investment during these years was from Chinese born living abroad.
The type of investment the Chinese Diaspora made in their country accounts for the cheap labor found at their country and focused at manufacturing export goods. Information shows that the type of goods the investment of the first wave of Chinese Diaspora focused on goods that are in demand in foreign markets like Shoe, electronics, textile, Christmas acquisitions, toys etc… Then, the investment of the Chinese Diaspora upgraded to big technological industry, real estate etc …From 1990-97, the FDI from Chines Diaspora was growing by 44% annually.
This flood of FDI from Chinese diaspora into China has played huge role in growing the country’s economy at fast rate. This was one basic reason that made the Chinese Diaspora to go back to their countries in drove while holding the wealth, knowledge and companies they have accumulated while living abroad. The Chinese government has put a provision that would put special security to the Diaspora returnees.
Of course the aim of this article is not talk about the Chines Diaspora community, but to look into way how Ethiopia’s diaspora can help their country. As mentioned at the introductory part of the article, the FDRE government has formulated a policy that would allow for the Diaspora community to help their home country, and benefit from their country, and it is implementing it. This is the reason why the need to celebrate Diaspora day in various regions, at regional and national level.
As a result, Diaspora day was celebrated for the second time this year at Bahir Dar city under the theme, “Ethiopian renaissance by its citizens”. Since the FDRE Diaspora policy was enacted and the Diaspora community started to become aware of the things in their country by celebrating Diaspora day, the contribution they pour in the country’s economy and development is increasing. And this can be seen from the foreign remittance money they send in to their families legally, foreign direct investment and technological and knowledge transfer.
As information show, the remittance money Ethiopians and Ethiopian born living abroad sent into their home country has reached 4 billion dollar. This is huge amount of money. It is more than the country gets from the tourism sector and export earnings. The remittance money used to be 1.78 billion dollar in 2011, 1.85 billion dollar in 2012, 1.95 billion birr 2013, 3.4 billion birr in 2014, 3.8 billion birr in 2015. This shows how much the celebration of the Diaspora day has stimulated the Diaspora community.
When looking at the Diaspora investment, 6 thousand Diasporas have gotten investment by getting consulted through ministry of foreign affairs. And out of these, more than 3 thousand have invested. And if we look at the investment sectors the Ethiopia Diaspora members are involved in, 1458 are involved in manufacturing industry, 1100 in agriculture, 400 in service, and 4 in mining sector.  The Diaspora community is also contributing their part in knowledge transfer. In addition to the knowledge and technology they directly bring together with investment, the Diaspora have been given health service and treatment by bringing in modern medical equipment in cooperation with other foreigners. Not only this; they have given training in cooperation with colleges and universities. And this will continue strongly for the future.
Things have been facilitated for the Diaspora to open up foreign currency saving account in local banks in order for them to support their country with foreign currency. So far, the number of members that have become beneficiaries of this account system has reached 5 thousand. And the money they have saved up is close to 37 million dollar. And their contribution in the procurement of the grand Renaissance Dam bond has also increased. In the ten months of 2016 alone, members of the Ethiopian diaspora have bought 5 million dollar worth of the bond.
From the above illustration, we can see the Diaspora community are helping themselves and their country in the process by getting involved in the economy. It is projected that the number of population of the Diaspora community is close to 3 million. These Diasporas have emotional ties with their home country. And this ties should transfer from loving the country and people to benefiting each other.

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