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Would diaspora bonds work for Ireland’s finances?
By Noreen Bowden | July 20, 2009
Could diaspora bonds be the overlooked solution to Ireland’s fiscal woes? The financial instrument was discussed at last week’s World Bank conference on diaspora for development. While they are typically discussed in connection with developing nations, the concept is reminiscent both of the centuries-old tradition of emigrant remittances and also of the Irish sweepstakes. Diaspora bonds are generally bonds sold in small denominations to members of the diaspora in order to fund projects at home or help the home nation’s bottom line.
The Crisis Talk blog notes that, “From a policy perspective, diaspora bonds are an excellent means of channeling remittances for investment by directly tapping into the wealth of the diaspora. Much of modern Israel was built with funds from bonds sold to the Jewish diaspora in the United States.”
The blog also points out that diaspora bonds may be most effective when used to fund particular projects.
Much fundraising for Ireland, of course, has been channeled through the American Ireland Funds, which has a particular expertise at targeting particularly wealthy members of the diaspora. Is there an untapped reservoir of good will and cash among less affluent members of the diaspora? One suspects that after a decade of highly publicised economic boom, it might be a hard sell to the global Irish community.
Crisistalk.worldbank.org: Diaspora bonds: an innovative source of finance
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March 9th, 2010 at 11:09 am
[...] of these ideas might be a hard sell (diaspora bonds, anyone?), but even more important than the new initiatives are the enhanced desire for engagement by the [...]