Diaspora Remittances for Development
African Diasporas are best known for the high remittances they send to their countries of origin. However, they are not best known as higher investors in their communities. The African Social Development Aid (ASDA) had been meditating over this issue until 15 November when the Foundation, with the assistance of the Oxfam-Novib invited the public to discuss the issue.

Questions discussed included: How can African Diasporas benefit from their huge cash remittances? How many jobs can the African Diaspora remittances create? There are no data and even if there is, the result will be minor in an attempt to reduce poverty. These questions raise concerns to critical debates even among the African Diasporas themselves.

Diasporas remittances are gaining higher momentum and attention globally. Remittances, the portion of migrant workers’ earnings sent back to their home countries have been a critical means of financial support. Several researchers and scholars from IMF, World Bank, Foreign department ministries and academic institutions have produced resource documents and continue to increase their search.

Sums of money transmitted home are growing fast, while richer countries - whatever the rhetoric about jobs for those at home - will continue to suck in migrants.

Billions of dollars have been measured on Diasporas cash remittances. In 2006, it was recorded that 150 million migrants worldwide sent $300 billion to their families.   In 2007 there was an increase of 11% on worldwide remittances resulting in $337 billion. $251 billion of the $337 billion was remitted to developing countries where Sub-Sahara Africa has grown consistently. Nigeria and Ghana are the largest players in West Africa. In 2007, the Bank of Ghana reported $1.2 billion and indicated an increase of 17.1 % over the same period in 2006.  It has been forecasted that in 2008, remittances will increase dramatically.


 
Sources: The World Bank remittance data

Diasporas' remittances have become a major source of foreign income for developing countries. Remittances, which are a stable, private transfer, have a direct poverty mitigating effect, and promote financial development to recipients.

"I am sending this money to my brother to support his children at school," she says. "I have been doing this regularly for the past 2 years”.

Some policy makers, development agencies, economists, and researchers have however shown little interest in the role of remittances in economic development, arguing that remittances are used for consumption, and not for productive investment.

"I realised that the money had been wasted; my uncle was married to 3 women and had 7 children" he says. "I have nothing back home to look forward to." Just like the many stories we hear daily.

In an appeal, Mr Samuel Ackah, the Chairman of A.S.D.A. asked Diasporas to rethink and invest in sustainable development projects. Five persons in a community sending money to a family in the same area could invest in a joint community venture which will create job opportunities whilst serving the same purpose of supporting the beneficiaries. This system will not only kee p the folks at home busy, it will ease the burden of the Diasporas and encourage them to visit families back home regularly without the thought of being exiled forever.

Mr Bikash Chowdhury Barua, the Chairman of BASUG (the Bangladesh Support Group) and vice president of the Diaspora Forum for Development (DFD) gave examples of how investments were being encouraged among the Bangladeshi society. He related to savings – remittances - micro-credit system and of course development. It is relevant to mention here that Mr Bikash and his organisation are an inspiration to many upcoming NGO’s.
Among the personalities present were Mr Mohammed Mamoud of HIRDA, and Mr Vincent Gambrah of AfroEuro. They are among ASDA’s strongest allies.