"A diaspora bond is a debt instrument issued by a country—or even by a sub-sovereign body or a private corporation—to raise financing from its overseas diaspora. This relatively unexploited instrument can raise investments from international migrants for economic development in the home country.
Members of the diaspora are more likely to invest in their country of origin not only for patriotic reasons, but also because their country risk perception is likely to be weaker than that of international investors.
The diaspora from India and Israel have raised $11bn and $25bn respectively in recent decades. The Philippines has announced that it will sell a diaspora bond to overseas Filipino workers this year to raise funds for development projects. Ghana has begun marketing the Golden Jubilee Savings Bond to the Ghanaian diaspora in Europe and the United States."
Saturday, March 28, 2009
An interesting article on "New Ways to Finance Development in Sub-Saharan Africa" reads: