A growing roster of developing states are turning to their compatriots abroad to raise cash by marketing “diaspora bonds”, a funding strategy successfully pioneered by India and Israel but sometimes tricky to imitate.
Some 250 million people, around 3 percent of the world population, live outside their native countries, according to World Bank data from 2013. They are an important source of funding for their homelands: last year they sent home around $440 billion – three times more than global development aid.
Cash raised by governments directly by marketing securities to their overseas citizens represents just a tiny fraction of that, but looks set to grow, judging by a number of recent announcements.
Egypt has announced debt certificates denominated in dollars and euros to ease hard currency shortages.Read more