International trade and exports drive national economic growth. When coupled with appropriate supporting policies they accelerate progress in achieving the sustainable development goals (SDGs). Specifically, export improves productivity, promotes specialisation and generates employment & decent work, particularly for women. It has the potential to expand women’s economic role, decrease inequality, and expand their access to skills & education.
Although the diaspora is not a traditional partner for SMEs like national institutions or private organisations, it can facilitate export and address challenges to export, thanks to insider advantages languages, affinities and information.
Through research, dialogue and capacity development activities, EUDiF has built theoretical and practical knowledge on the different ways diaspora boost export. This page is based on the “Learning by doing” dossier in which we explore the roles of diaspora in catalysing export in two EUDiF actions in Armenia and Lebanon.
Read on for a précis, or download the publication for the complete reflection.
Economic and social issues that may not encourage private sector development.
Limited information about destination market.
Limited awareness of sectoral consumer demand.
Lack of connections and leverage.
Lower credibility of products and services in foreign markets.
Challenging tariff and non-tariff regulatory frameworks that impact the ability to compete in global market.
Diaspora perform many roles to assist businesses in their country of heritage to engage in international trade, in particular small and medium enterprises (SMEs). The table below is a non-exhaustive list of these roles, three of which have featured prominently in EUDiF’s capacity development work: brokers, promoters and mentors.
Role
Description
Broker
With insider advantages in the destination market, diaspora can design and transfer knowledge to entrepreneurs back home.
Promoter
Diaspora can act as ambassadors of domestic brands and contributors to economic diplomacy and national identity.
Mentor
Diaspora can contribute as strategic mentors, role models and inspirational leaders for entrepreneurs back home.
Consumer
Diaspora identities influence consumption and can create a demand for products made in their countries of heritage.
Trader
They can trade factors of production and end products in both directions.
Investor
Diaspora may be more likely to invest in local and grassroots businesses compared to international investors.
Lobbyist
Strong and organised groups of diaspora members can advocate and lobby for policies that support SMEs to export to international markets.
Two EUDiF actions stand out for exploring the roles diaspora play in facilitating export: our work with the Armenian General Benevolent Union Europe (AGBU Europe), and with the Association Franco-Libanaise des Professionnels de l’Informatique (AFPI).
In these two actions, diaspora acted as mentors, brokers and promoters which had a great impact in achieving the following: