The Least Developed Countries Report 2012

Harnessing Remittances and Diaspora Knowledge for Productive Capacities

image of The Least Developed Countries Report 2012
This Report reviews the LDCs' recent economic performance and examines how to enhance developmental impact of remittances and tap into the knowledge pool of its citizens abroad. Given the increasing magnitude of remittances in LDCs, the Report explores both the beneficial as well as possible adverse impacts of this type of private external flow. While remittances are the most visible effect of migration, there are other forms of Diaspora engagement within the home country such as Diaspora knowledge networks that can facilitate technological catch-up in LDCs and therefore enhance development of productive capacities. Through innovative forms of network-based industrial policy, LDCs could offset some of the adverse impacts of brain drain on their economies. The Report concludes with a policy review section containing lessons from international experiences in this area of interest to LDCs.

English French, Spanish


Mobilizing the diaspora: From brain drain to brain gain

The present chapter analyses two aspects of international migration in the LDCs not yet discussed in this Report. First, it studies the flows of knowledge and technology stemming from the international movement of labour — particularly from the migration of so-called high-skilled persons — , their impact on the human capital endowment and technological accumulation of LDCs, and the emergence of diaspora knowledge networks. Second, the chapter examines the impact of international migration on the business activities of these countries through two mechanisms: international trade and investment flows between home and host countries; and returnee entrepreneurship.

English Spanish, French

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