It is no secret that Diasporas have grown to play an impactful role when it comes to developing

many attributes of a country on multiple fronts that include economic, social, and political. And

it is no secret that throughout this growth, diasporic people have more than often kept in close

contact with their native and cultural ways of living in a way where it bleeds into the host

countries environment. In doing so, these diasporas have caused a sort of beneficial exposure

towards their native countries, in ways that relate back to the varying types of new skills and new

working hand developed from being in these host countries as well as the economic benefit that

comes from the steadily increased action of remittances and exchanging profit in and out of the

countries. This essay will cover these two major points and how diasporic communities benefit

their home countries.

When it comes to the point of remittances, it can be clearly stated that it is one of the most

significant and palpable benefits that diasporas contribute to their home countries; the continuous

sending of funds back to their countries of origin to support their families. These constant

remittances contribute a big chunk of many developing countries’ national earnings. $685 billion

dollars’ worth of remittance funds in 2024, were transferred across lower- and middle-income

countries, according to the World Bank, which was a 5.8% increase in transferred funds since

2023 and 2024 and amassed a number larger than FDI and ODA combined. (Ratha et al., 2025)

These funds sent play a huge contributing role in putting food on the table for an average family,

fulfilling education opportunities, improving living conditions, and opening resources such as

improved healthcare. In short meaning improved way of living and one that could make a

difference have massive impact. An example of that would be the fact that according to the

World Bank, it was estimated that in Haiti remittance funds represented about 12 percent of GDP

in 2011, while in some areas of Somalia, they accounted for more than 70 percent of GDP in

2006, essentially making it a more important part of a lower middle countries’ financial income.
(Remittances: Funds for the Folks Back Home, 2019) Also, it should be noted that remittances

can sometimes be a counter-cyclical providing stability in times of distress or disaster in the

home countries whether its an economic crisis, a war, or an impactful hit to the country. This

briefly covers the positive effects made by the continuous remittances being transferred between

the host and home countries from diasporic communities to their families and home countries.

The second point to be discussed is the effect that diasporic communities generate by amassing

and developing a set of skills and abilities in their countries and acquiring that skill and pushing

it towards their home countries in beneficial ways. Diasporas in many communities tend to

develop and go through educational and professional experiences abroad in their host countries,

that are then sometimes implemented in the home countries. The diasporas basically discover

and learn how to accomplish a certain skill or potentially even network their skills to investors

and authoritative figures in the host country who would later help in steps made to improve the

diaspora’s home country. An example of this would be the IT industry in Bangalore and

Hyderabad, in India and how this IT industry got a large part of its financial support from

investors from Silicon Valley, after Indian diaspora worked there and harnessed their skill sets

and improving with investors in that area. (Saxenian, 2005.) There are also initiatives that aim to

boost and encourage diasporas living abroad to contribute to the national development by taking

workshops, training in certain areas of work, and delving into business ventures. An example of

that would be the “Diaspora Engagement Affairs Directorate” which is a developmental program

in Ethiopia. (Terrazas, 2010).

A point that needs to be mentioned is the fact that both benefits mentioned are not driven and

exclusive to top tier high skilled labor, some diasporic communities can also act as cultural

ambassadors meaning that when they keep their cultural traditions abroad and be proud of them,

diasporas will show their cultural understanding and their ability and willingness to be
collaborative on an international scale. By doing all of that, diasporas here play the social game

where the host countries see their culture and have exposure and in doing so, diasporas from

countries in extreme conditions can benefit from promoting their culture and could have their

problems and national issues voiced socially.

To wrap up this essay, the value and benefit that diaspora communities instill on their home

countries are valuable in several aspects. Diasporas can aid and help their communities

financially through financial remittances and the constant flow of budget back and forth as it

increases the economic support and help in long term events and developmental benefits.

Secondly, the importance for diasporas to hone their skills and expose them in their host

countries to transfer to the best of their capabilities those skills back to their communities in any

way seen beneficial. As the world is slowly turning into what it is with constant economic,

financial, political, and humanitarian struggle, maintaining a strong and proper support for

diasporic communities and populations will continuously benefit and boost host countries

culturally and socially.

References:

1- Ratha, D., Plaza, S., & Kim, E. J. (2025, January 28). In 2024, remittance flows to low-

and middle-income countries are expected to reach $685 billion, larger than FDI and

ODA combined. World Bank Blogs. https://blogs.worldbank.org/en/peoplemove/in-2024-

-remittance-flows-to-low--and-middle-income-countries-

ar#:~:text=The%20growth%20rate%20of%20remittances,in%202023%20(table%201).&

text=Source%3A%20Authors'%20estimates.

2- Remittances: funds for the folks back home. (2019, February 5). IMF.

https://www.imf.org/en/Publications/fandd/issues/Series/Back-to-Basics/Remittances
3- Saxenian, A. (2005). From brain drain to brain circulation: transnational communities and

regional upgrading in India and China. Studies in Comparative International

Development, 40(2), 35–61. https://doi.org/10.1007/bf02686293

4- Terrazas, A. (2010). Diaspora investment in developing and emerging country capital

markets: Patterns and prospects. Migration Policy Institute.