The U.S. Department of State estimates that the global diaspora sent over $500 billion to their friends and families in developing countries in 2012. Over the span of the last 45 years, the number of people living outside their country of origin tripled to 215 million.
The United States is home to the largest number of diaspora members of any country in the world. Given these strong social ties, community development financial institution Calvert Foundation today announced the desire to create a new initiative that would allow diaspora communities in the U.S. to invest in their countries of origin.
The Diaspora Initiative will aim to raise capital from diaspora populations.
“Diaspora populations represent roughly $400 billion in savings, and want to invest in the social and economic development of their countries of origin,” said Calvert Foundation Chief Strategy Officer Jennifer Pryce.
“But many don’t have access to the tools to do that. With support from the Kellogg Foundation, we will explore U.S. diaspora populations’ potential to invest in their home countries through our Community Investment Note.”
The W.K. Kellogg Foundation has provided a $200,000 grant to support a feasibility study.
The idea is that diaspora communities can go online to purchase Community Investment Notes targeted to a specific country or region for as little as $20. These funds will be used to support small businesses, healthcare, education, sustainable agriculture, and other critical services.
“As international aid from donor countries declines, investors are playing an increasingly important role in economic development around the world,” said Pryce.
“Investment opportunities tailored to a specific cause, like the Diaspora Initiative, can help individuals support the causes that inspire them. We see great potential in harnessing the energy, passion, and resources of diaspora communities for development.”