Development Finance via Diaspora Bonds: Track Record and Potential

In this paper, the authors examine the Israeli and Indian track records to draw generalized conclusions about the viability of diaspora bonds as a development financing instrument. The rise of various diasporas and their economic status in their adopted countries are fast becoming a source of pride as well as financial resources for developing countries. If seeking remittances is a way of tapping into diaspora income flows on a regular basis, issuance of hard-currency-denominated bonds to the diaspora is a way of tapping into the latter’s wealth accumulated abroad.