Diaspora And The Global Economic Crisis Presentation

National Indaba on the Global Economic Crisis, A Wake-up Call for Transformation Mulungushi International Conference Centre 4-5th April 2009

“Zambia’s Diaspora and Development” Chasaya Sichilima (Zambia Diaspora Connect)

Presentation Outline  International context of Diaspora value  Some basic statistics on Zambia’s Diaspora  Zambia’s Diaspora and the current global economic crisis  Human Capital;  Investments;  Housing; and  Culture and Identity.  Diaspora - Government opportunities: in view of the Global Economic Crisis

Understanding Diaspora Value in an International Context  Some working definitions:  Diaspora: Nationals that have emigrated, yet still attached to their country of origin.  Brain Drain: Migration of trained and talented individuals from one institution, or from one country or part of a country, to another in search of better working conditions, a higher quality of life and/or a less hostile environment.  Source: Henry Kyambalesa, 2009

Diaspora value in an International Context (Contd) Country of origin benefits:  Worker rise in real wages  Worker remittances  Investor capital  Technological transfer  Growing human capital  Development of trade net works  Source Ratha and Maimbo 2005

Diaspora Value in an International Context (Contd)  If benefits are neglected/not actively managed net results are:  Skill shortages  Reduction in productivity  Tax Short falls

 ‘One third of individuals with tertiary education from Africa, the Carribean, and Central America emigrated to the US or OECD countries’ Carrington & Detragiache, (1998) estimate.

Diaspora Value in an International Context (Contd.)  Case examples  China: Support integrated package with focus on Research & Development  India: Bangalore, the Worlds Call Centre, and Worlds largest software exporter are returnees from Silicon Valley.  Ghana: Ministry of the Diaspora; Remittances trends have grown geometrically  South Africa: Skills Network, transferring technology, disseminating culture  Nigeria: Housing and the bilateral arrangement with the British  Ethiopia: Restaurants, Diaspora Bonds  Source UNDP

Some Basic statistics on Zambia’s Diaspora  Emigrant stock: 150,281 For the period 2003-2006 Remittances were  2003 2004 2005 2006  Inward 36 48 53 58  Source WB

Zambia Diaspora Advocacy  Dual Citizenship Petition – 2003 and 2008  2003 petition started in UK, went to US, Canada and went global  Submitted to Constitutional Review Commission  2008 petition started in Australia, went global and within 6 days had over 1000 petitioners submitted to National Constitutional Conference.  Leaving the question of, how do we move on while waiting for NCC?

Zambia Diaspora Advocacy  Project Diaspora Citizenry – 2007/2008  A Ministry of Finance initiative which required:  -Measures of Diaspora Demand  -Stakeholder Institutional Capacity, amongst Diaspora as well as in Government  -Statistical information on demography of Diaspora  These needs led to: 2008 Zambia Diaspora EConference by Zambia Diaspora Connect

Zambia Diaspora e-conference 2008: Objectives  The primary objective was to assess diaspora demand for government intervention in four thematic areas by answering the questions: 1. How can Zambians living abroad participate in Zambia’s development in the areas of commercial investment, land and housing, and the development of human-capital? 2. How can government facilitate investment in commerce, land and housing development, and humancapital transfer to Zambia, by Zambians living abroad? 3. How can government and Zambian’s living abroad, together strengthen the diaspora’s sense of identity, citizenry and commitment to Zambia?

Zambia Diaspora e-conference 2008: Process  A conference was called for Diaspora members to convene by Internet  Invitations were sent through the Embassies and Zambia Associations Abroad  The Conference was organized under four themes -

Human Capital Housing Investment Culture and Identity

 Running from 14th October to 24th October 2008

Zambia Diaspora e-conference 2008: Principal Findings  Human Capital: Potentials and Constraints  There are mutual benefits for Zambia and her Diaspora collaborating including  Institutional Networking,  Marketing Exports; &  Promoting volunteerism  Constraints: Diaspora , often viewed with an evil eye, lack collective organization and hesitation based on the passage of dual nationality clause into the constitution.

Zambia Diaspora e-conference 2008: Principal Findings  Investments: Potentials and constraints  Investments from Zambians abroad was viewed as good from the perspective of; investor capital, higher technology transfer, relatively higher levels of human capital and trade net works  Communicative distances were cited as a primary constraint; coupled with  Risk from lack of market information, transaction control, and third party arrangements

Zambia Diaspora e-conference 2008: Principal Findings  Housing: Potentials and constraints  -With respect to potentials building new houses in Zambia would create additional housing stock, with international designs.  -Constraints predominantly are those of risk associated with security, market price fluctuations of building materials, scarcity, further affecting financial risk

Zambia Diaspora e-conference 2008: Principal Findings  Culture and Identity: Potentials and constraints  -Potentials for culture include use of literature, music, food, spoken languages and Internet media to enhance community/social capital, as well as market Zambia’s tourist abroad.  Constraints arise over the important matters of Identity in the lack of:  -Passport renewal mechanisms/information.  -Constitutional Provision for Dual Citizenship

Zambia Diaspora e-conference 2008: Some Key Solutions Human Capital: Widening the scope of opportunities for volunteering Creating government supported skills networks linked to universities and other institutions. Investments  Availing investment information more easily through egovernment  Develop a Diaspora chamber of commerce to provide spring boards for any consortium arrangements as well as to lobby.

Zambia Diaspora e-conference 2008: Some Key Solutions Housing  Avail information on land, housing, risks and supply of building materials.

Culture and Identity  Government should recognise focal persons among Zambians abroad as honorary envoys.  An e-governance system developed to manage the administration of diaspora identities  Use of the Diaspora to promote tourism

Diaspora - Government Opportunities: in View of the Global Economic Crisis  Passport renewal and dual citizenship: Expedite these     

processes to provide prospective Zambians abroad assurances of their future. Macro economic level: Consider the issuance of Diaspora bonds, by Bank of Zambia, with secondary trading potential on LuSE. Administrative Mgt: Reduce costs, out-contract consular services to Diaspora, and reduce consular process to a unit in the Ministry of Foreign Affairs. Diaspora policy: Should be developed to outline government regard for Diaspora initiatives – Diaspora Act Policy Contestation: Create policy space for formulation and reviews to receive input from Diaspora. Sectoral Targeting: Open up the Tourism sector for expressions of interest across the board for Diaspora investment.

Thank-you