Presentation to the Second Committee:
Findings of ad-hoc expert group meeting
on “Strengthening business sector &
entrepreneurship in developing countries:
potential of diasporas”
Friday 6 October 2006
United Nations, New York
Chukwu-Emeka Chikezie
African Foundation for Development (AFFORD)
Overview
• Engaging diaspora is a means to an end:
Define focused, clear & specific public
policy goals in relation to business’s
contribution to development
• Engage your (not the) diaspora in the
challenge: Possess & communicate a
clear vision of how your diaspora can
contribute
Overview cont’d
• One size does not fit all: Tailor your
policies to your individual needs,
circumstances, & diaspora characteristics
• Find your champions & winners… & ACT!
Public policy
• MDGs: halve poverty
• How? Create more jobs
• Eg Africa: UNECA: sub-Saharan Africa
must create 8 million jobs each year
• Who? Private sector with enabling public
policy environment
• 4Es – entrepreneurship, employment,
employability, equal opportunity already
cornerstone of fight against poverty
Public policy
• India, China, Taiwan
– Different conditions & circumstances
– Policy shifts created climate for diaspora to
engage
– Policies set off chain of events
– Some similarities? Investment in education,
strong state capacity to formulate &
implement policy, effective structures to utilize
resources from diaspora or other sources
Engage your diaspora
• Make “home” warm & welcoming
• Find ways to make your diaspora feel valued & special
• But find ways to make everyone feel included, otherwise
you create divisions between them & us – diaspora are
only part of the picture
• Set challenges, give recognition
• Maintain regular dialogue
• Think beyond first generation – communicate with
second & subsequent generations using their language
• Be inclusive – eg African Americans
• Offer dual citizenship
• Use embassies & “cultural diplomacy”
• Improve investment climate for all
investors/entrepreneurs
One size?
High finance capital, low non-finance capital
Cash rich, time poor, long-term settled individuals with few links
with “home” but some emotional connection (ie potential investors)
Policy options:
Stock exchange
Low finance capital, low non-finance capital
Marginalized, trapped in low-skilled/low-paying jobs
Undocumented migrants (cannot travel back & forth)
Asylum seekers barred from working
Refugees unable to secure jobs commensurate with their skills &
experience
People remitting significant portions of even meagre income to
relatives at home
Policy options (limited for business impact):
Research to understand investment portions of remittances
Channel remittances via formal channels
Small-scale business development initiatives, eg microfranchising
Seek stronger linkages between remittances expenditure & local
economy
Tax relief on remittances for development
Negotiate for recognition of rights for migrants in host
countries
High finance capital, high non-finance capital
Highly skilled individuals in senior positions in management,
corporate finance, etc
Successful owners of well-established medium/large businesses
Policy options:
Venture Capital instruments
High-profile, focused networks
Low finance capital, high non-finance capital
Owners of small enterprises
Young/female entrepreneurs
Members of hometown & other associations
Highly skilled individuals in paid employment
Policy options:
Match diaspora entrepreneurs to SME partners
Business development support & networks
Trade initiatives linking home & host countries
Business plan competitions
Virtual business mentoring
Act now!
• Action-research beyond case studies but
not more pure research – learn by doing
• Focus on tangible results with
demonstration effects – success breeds
success
• Identify champions in government,
domestic private sector, & diaspora –
leadership across the board is key
• Start small but look for scaleable initiatives
• Go!
Thank you!
Contact us for more information
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Chukwu-Emeka Chikezie
E: chukwu-emeka@afford-uk.org
W: www.afford-uk.org
T: +44 (0) 20 7587 3900
F: +44 (0) 20 7587 3919
AFFORD’s mission is to expand &
enhance the contribution that Africans in
the diaspora make to Africa’s development