The Diaspora as a Change Agent in Entrepreneurship-Related Institutions in Sub-Saharan Africa

Abstract

Diaspora networks' role in supporting and stimulating entrepreneurial activities in Sub-Saharan African (SSA) economies need hardly be elaborated. For instance, some SSA countries have established government agencies to encourage diasporas to help local communities and provide policy advice. At the 2003 Extra-Ordinary Summit of the Assembly of Heads of State and Governments, the African Union (AU) amended Article Three of its Constitutive Act to invite and encourage African diaspora's active participation. However, institutional changes associated with diaspora networks are a phenomenon that has been noted but poorly understood. This paper addresses a little examined intersection between the diaspora literature and the institutions literature. We examine the contexts, mechanisms and processes associated with diaspora networks' roles as institutional change agents in the context of entrepreneurial behaviors in SSA economies. Our dependent variables are measures of changes in institutions associated with diaspora network. We have related our analysis mainly to the nature of the diaspora networks compared to other networks, characteristics of the environments in which diaspora networks are embedded in and operate, and some activities, mechanisms and modes that serve to transmit institutions from the host country to the homeland.

Policies for promoting diaspora investment in countries of origin

“…However, involving the diaspora in policymaking can be beneficial as they have the potential to act as change agents in their country of origin (Riddle and Brinkerhoff, 2011) and are considered emerging agents of development (Weinar, 2010). Kshetri (2013) examined the influence of diaspora communities on implementing institutional changes across economies and political systems and found "top-down" approaches. For example, China, a country with a strong state and weak civil society, imposed limitations on the political and social influences of diasporas.…”

Moving beyond financial remittances: The evolution of diaspora policy in post-conflict economies

“…As formal institutions improve, more entrepreneurial activity and investment can be created, and this then provides opportunity for policy makers to make further institutional changes to harness higher levels of economic activity. In less developed and post-conflict economies, policy makers are seeking to involve diaspora in policy making more so that positive changes can be made, and to ensure that there is an effective feedback loop between the diaspora and institutional change (Riddle and Brinkerhoff, 2011;Kshetri, 2013). The changes in formal institutions create a feedback loop (C1) which fosters further entrepreneurial activity through improvements in perceptions of risk.…”

Diaspora Marketing Revisited: The nexus of entrepreneurs and consumers

“…Diaspora entrepreneurship, like diasporas, are naturally transnational since their experience consists of a mixture of what they gained in both the COO and COR (Kshetri, 2013;Williams, 2018). Also, across trans-national spaces, multiple, circular and return migrations are seen (Vemuri, 2014).…”