Building Bridges – Diaspora for Business and Development

Transcription

FINAL REPORT
April 2012
1. Contents
2.
Acronyms ______________________________________________________________ 4
3.
Background ____________________________________________________________ 5
4.
Objectives of the conference_______________________________________________ 6
5.
The conference _________________________________________________________ 7
a.
Target Audience ____________________________________________________________ 7
b.
Expected Outcomes _________________________________________________________ 7
c.
Meeting Format ____________________________________________________________ 7
6.
Outcomes ______________________________________________________________ 8
7.
Conclusion and Follow-Up ________________________________________________ 18
8.
Annex ________________________________________________________________ 20
a.
Agenda __________________________________________________________________ 20
b.
List of Participants _________________________________________________________ 22
c.
List of Speakers ____________________________________________________________ 27
d.
Keynote Speech Ronald Lucardie ______________________________________________ 29
BUILDING BRIDGES. DIASPORA FOR BUSINESS AND DEVELOPMENT
2
3
2. Acronyms
CAA
Club des Amis d‟Allemagne
BMZ
Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (Federal
Ministry for Economic Cooperation and Development)
BMWi
Bundesministerium für Wirtschaft und Technologie (Federal Ministry for Economic
Affairs and Technology
CSR
Corporate Social Responsibility
4
DÄSAV
DBC
DCMO
Deutsch-Äthiopischer Studenten und Akademiker Verein (German-Ethiopian
Students and Academics Association)
Diaspora Business Centre
Dutch Consortium for Migrants Organizations
DDI
Diaspora Direct Investment
FDI
Foreign Direct Investment
GIZ
Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH
IHK
Industrie- und Handelskammer (Chamber of Commerce and Industry)
MO
migrant organization
Pasali
PT KPM
ROI
SME
UETD
Philippine Association of Sea-based Workers for Savings, Loans and Initiatives
PT Kamboti Pusaka Maluku
return on investment
small and medium enterprise
Union of European-Turkish Democrats
3. Background
Business, migration and development: These topics have recently gained importance; not
only as separate issues, but especially when perceived as three interlinked areas. The
business potential of migrants and the development potential within this cooperation deserve
a closer examination.
Migrants not only contribute to the private sector development in their countries of origin by
sending remittances, but also by direct investments and knowledge transfer – eventually, a
strong and growing private sector creates jobs, generates income, and hence contributes to
poverty alleviation.
Many migrants are active practitioners and experts in the field of development cooperation
and in the business sectors of their countries of origin and of destination. Their intercultural
competences, specific knowledge about business customs, markets and products in their
country of origin as well as in the country of destination, and their distinctive know-how in
development project management make them valuable resource persons for both
development cooperation and the business sector.
Numerous developing countries have experienced spectacular economic growth over the last
couple of years. Countries like Ghana, Ethiopia, Angola, Indonesia and the Philippines
denote GDP growth rates of 10% per year or more. Especially since the recent global
economic and financial crises, many economies of the North have been facing a phase of
stagnation or even depression. However, one thing has become clear globally: small and
medium enterprises (SMEs) are the most popular type of enterprises and the backbone of
the economy - e.g. 99.8% of all enterprises in the European Union are SMEs; in Germany
alone, SMEs contribute 12.1 million jobs to the labour market.
Against this background the hesitation of European SMEs to get engaged in growing
economic regions of the South is striking. However, SMEs often lack knowledge about
specificities of the markets, business and investment climate and local etiquette as well as
contacts and language skills. In this context, Diaspora groups represent a valuable pool of
knowledge for European SMEs who might wish to establish business relations in countries of
the South. Moreover, migrants can play an important role in not only establishing these
business links, but to ensure that both business and social goals are pursued. Be it
investment, the internationalization of value chains, or trade relations – the Diaspora‟s
specific know-how has the potential to build bridges and thereby overcome constraints, and
link markets.
Still, today both Diaspora organizations themselves and SMEs are not necessarily aware of
this potential which is ready for use.
5
These facts are leading to the following core issues:
What are the reasons for the hesitation of European SMEs to invest in growing market
places of the South?
•How could investment be fostered with support from the Diaspora?
•Which specific role can Diaspora organizations play in this context?
Which role can the Diaspora play in business development and which are the specific
development potentials in the cooperation between Diaspora and business?
•Which specific forms of cooperation of Diaspora organisations/experts with the private sector in the
North can be envisaged?
•How can the cooperation with Diaspora organisations/experts look like from the South’s private
sector point of view?
•How can development cooperation programs dealing with private sector development involve the
Diaspora?
•How can experiences of well-established South-South partnerships be shared with other Diaspora
actors?
•How could remittances be used or channelled as investments in a more productive, effective and
innovative way in order to develop business and to create jobs?
Where are the strong and weak points of development cooperation programs in the field of
private sector promotion in terms of involving the Diaspora and tapping into its potential?
•Which are specific recommendations to give to development cooperation programs based on
lessons learnt so far?
The Conference “Building Bridges - Diaspora for Business and Development” which
took place on April 14th, 2012 in Frankfurt (Germany) tried to find answers to these questions.
4. Objectives of the conference
Raise awareness among European SMEs on how to tap into the Diaspora’s potential for establishing
business relations with the South and thereby eventually lowering concerns about getting engaged in
Southern economies
Raise awareness among Diaspora organisations about their potential as business development
consultants and matchmakers, who at the same time can contribute to their country of origin’s private
sector development
Put the focus on the development potential arising from the cooperation between Diaspora
organisations and the private sector
Offer a platform for Diaspora organisations to exchange ideas, experiences, and best practice examples
in getting professionally engaged with the business sector whilst pursuing development goals. A special
focus shall be placed on exchange of South-South experiences and on the question of investment and
project funding.
Offer a platform for business representatives to get in touch with Diaspora organisations (match
making)
Discuss and agree on a concrete pilot project which aims at highlighting the potential of the Diaspora’s
“bridge-building-potential” to enhance business and development
Set the stage for further cooperation of all stakeholders working on issues related to Diaspora in NorthSouth business relations while pursuing development and social goals (i.e. CORDAID, GIZ, DCMO)
6
5. The conference
a. Target Audience
The topic was discussed by representatives of Diaspora organizations from different
European countries (Germany, Netherlands, France, Switzerland, UK); business people from
both Europe and migrants‟ countries of origin (German chamber of commerce and industry,
business associations and SMEs); practitioners from donor and implementing organizations.
For further information on participants please refer to ANNEX b List of Participants.
b. Expected Outcomes
1
2
•Establishing contacts among Diaspora organisations and business representatives
•Identifying potential on how the Diaspora can actively be engaged by SMEs for
establishing business relations with the migrants’ countries of origin
3
•Determining success factors for the Diaspora on how to serve as veritable “bridge
builders“ between markets and create added value for Diaspora practitioners in the
development and business sector
4
•Ensuring follow-up activities by interested participants, e.g. in form of a written
declaration of intent by participants to collaborate on concrete projects and specific
topics and questions in the field of action of business and development cooperation
c. Meeting Format
The conference consisted of three modules containing speeches, presentations of examples,
panel discussions and working groups:
a. OPPORTUNITIES AND CHANCES (Introduction of the topic)
Regions of the South: Challenges and opportunities for business and
development
Why are regions of the South interesting for European SMEs?
Which challenges face SMEs by venturing into Southern markets?
The role of Diaspora and SMEs in business and development cooperation
Potentials of private sector engagement in development cooperation
The role of Diaspora organizations in North-South (and South-South) business relations.
7
b. DIASPORA BUILDING BRIDGES FOR BUSINESS AND DEVELOPMENT (presentation of
best practice examples followed by panel discussion)
Diaspora as business facilitator
Three examples showing how the contribution of the Diaspora facilitates the progress and
success in North-South business cooperation
Diaspora linking business and development
Four examples showing how the involvement of Diaspora organizations in business relations
can at the same time contribute to development goals
c. NEW PARTNERSHIPS AND SUSTAINABLE ALLIANCE BUILDING (4 Working groups;
determining concrete results):
1. Potential fields and forms of cooperation of the Diaspora and the private
sector
Where and how can Diaspora organizations and SMEs work together?
2. Success factors for a mutually beneficial cooperation of the Diaspora and
the private sector
Which prerequisites are necessary from the private sector’s and the Diaspora organizations’
side in order to make this cooperation beneficial for all stakeholders involved?
3. Contributions to development through the cooperation of the Diaspora with
the private sector and civil society
Where is the development potential in this cooperation?
4. The contribution of governmental organizations both from North and South
to business development of the Diaspora
6. Outcomes
Speeches, presentations, panel discussions and workshops – the informative yet interactive
format of the conference gave participants and speakers an opportunity to establish networks
between the private sector and Diaspora representatives.
To begin with, Ronald Lucardie (advisor to DCMO) presented the Dutch decade long
experience in private sector engagement of Migrants organizations (see annex). According to
the Dutch experience, the link of migrants‟ organizations (MOs) and the private sector
evolved gradually. In the early „00s, Dutch donor organizations and MOs teamed up for
development projects. However, as donor organizations‟ funds were decreasing later the
8
same decade, MOs were looking for new allies in their development efforts: the private
sector. Within this relationship, four lessons learnt have been identified for the Dutch
context, which are applicable in a broader international context as well:
1. Eligibility and vision: MOs ought to consciously make a choice for working with a
certain target group. This choice should be based on a vision or ideology – by
teaming up with a donor organization, their own vision/ideology should not be
forgotten.
2. Effectiveness and wider context: MOs ought to make sure to relate their activities
9
with the wider social, political, economic and regional context in their country of origin
or the country they are engaging in. Activities need to be coordinated with other
stakeholders.
3. Market, competition, sustainability, ethics: MOs play a crucial role in respecting
sustainability and ethics as SMEs are players in competitive markets and do not
necessarily respect these aspects. The ideal case is for MOs to conduct a “Do No
Harm”-analysis before venturing with SMEs.
4. Ethic, motivation, mobilization: MOs ought to make sure to keep the human quality
to development projects alive. Without motivation, SME development becomes a
mere technical activity lacking human value.
Following the general insights based on the Dutch experience, two international
examples showed how the Diaspora can be actively engaged in corporate
a) Opportunities
and Chances
activities and at the same time contribute to development goals:
www.misterseed.com is a business- and politics-related website, connecting
Regions of the South:
Challenges and
opportunities for business
and development
Kenyans worldwide (MOs, politicians, banks and business) and offering
opportunities for charity work, establishing connections with politics in
Kenya and for business creation. The rationale behind is that everybody
has something to offer and contribute, regardless of one‟s occupation
and means. The adaptation and integration of migrants in the host countries is a vital
precondition for realizing their development potential. One very important lesson learnt from
this project is that the Diaspora should not just pour money into their country, region or
village of origin but involve the target group, work together as a team, support them in
defining their own development goals and support them in realizing projects accordingly.
Tricomp International is an international company funded in Poland by Mr. James
Ofwona, a Kenyan migrant. His lessons learnt are the following:
o
Develop your business following market demand.
o
The markets of the South offer vast potential.
o
There is strong development potential in Diaspora businesses if one:

creates jobs and on-the-job qualification possibilities for skilled and unskilled
workers.

brings in the technology and know-how s/he has acquired abroad.
German SMEs had their say as well, represented by the Chamber of Commerce and
Industry (IHK) Mittleres Ruhrgebiet and the Afrika-Verein der Deutschen Wirtschaft
(Business association of German SMEs engaging on the African market).
IHK Mittleres Ruhrgebiet had previously conducted a study on internationalization
strategies of German SMEs – one aspect of the study was which role Diasporas and
10
returnees can possibly play in this context. As intercultural competences, language skills and
local know how are becoming ever more important success factors, German SMEs are
increasingly getting aware of the Diaspora‟s and returnees‟ potential in business relations.
The Diaspora can provide access to markets, which have been
unattractive or difficult for German SMEs so far.
The role of Diaspora and
SMEs in business and
development cooperation
The Afrika-Verein confirms these findings and supports the idea to
create stronger linkages between European and Southern SMEs with the Diaspora as
intercultural brokers. Specific forms of cooperation envisaged by the Afrika-Verein could be
1) start-up programs, 2) studies in specific fields (e.g. training/exchange of experts in the field
of health care as a circular model), 3) cooperation with Pro Afrika e.V. (African entrepreneurs
Association in Berlin), 4) support of local start-ups that can act as future partners, 5) pilot
project of matching African start-ups with German companies for cooperation and mutual
support in CSR activities, 6) cooperation of German and local business associations, 7)
exchange
and
training
of
professionals.
One important lesson learnt for MOs is that they need to enhance their visibility and actively
approach SMEs. Businesses are reluctant to ask for help; hence, Diaspora organizations
need to actively promote their assets.
Diaspora involvement in corporate activities is a rather new concept; however, there are
already some best practice examples:
One possibility of how the Diaspora can use its knowledge of two cultures and two
markets for sustainable business development in the South shows the Diaspora Business
Centre (DBC) in Kenya. The center understands itself as a one-stop-shop for the Diaspora
with the overall objective of creating economic livelihood opportunities in the countries of
origin (Kenya, Somalia, Ghana). The argument behind the focus on business development is
that people should rather be enabled to become financially viable by running their own
business instead of constantly being dependent on external funding while enrolled in donor
projects. The DBC is not acting as entrepreneur or development agency, but focuses on
matchmaking: linking public and private partners as well as North-South and South-South
business partners. Its objectives are to 1) facilitate the creation of social enterprises and jobs
and enhance responsible entrepreneurship and social return on investment (ROI) 2) promote
financial literacy and access to financial services, 3) promote women‟s role in decision
making, and 4) enhance human and financial investment of the Diaspora into their countries
of origin.
The second example was a private medium-sized German company (MC
Bauchemie), actively engaged as investor on the African market (Guinea, Angola, Uganda,
11
Nigeria). Despite important risks European SMEs are facing when venturing
Part 1: Diaspora as
business facilitator
into markets of the South, the additional ROI that can be achieved still
makes these markets attractive. Trade and business links of
MC Bauchemie to the African market are facilitated by a member of the
Guinean Diaspora in Germany, who has the advantage of specific
b) Diaspora building
Bridges for Business
and Development
knowledge of both the European and African market.
The Ethiopian Diaspora in Germany presented an interesting example of
networking activities. The Ethiopian-German Forum organizes a Business conference, runs
a financial literacy project, plans an African Business Plan Contest among many other
activities. Ethiopian students and alumni are organized in the German-Ethiopian Students
and Academics Association (Deutsch-Äthiopischer Studenten und Akademiker Verein,
DÄSAV), which regularly organizes meetings and conferences for networking purposes.
PT Kamboti Pusaka Maluku (PT KPM) is an Indonesian nutmeg export company,
organized as a cooperation of nutmeg farmers, a local Moluccan non-governmental
organization (NGO), a local university and a migrants NGO in the Netherlands. The main
clients of PT KPM are importers in the North. The Diaspora‟s role was to bring into this
cooperation European expertise, knowledge about rules and standards and trade contacts.
PT KPM aims at facilitating the export of nutmeg and thereby to strengthen the farmers‟
market position, while at the same time pursuing social responsibility. The initial step was to
support the farmers in organizing themselves within an association in order to strengthen
their market power by sharing experience and information.
In addition to the already mentioned assets of the Diaspora, several points were raised
during the discussions, which should be noted as potential success factors for European
SMEs:
Language skills
A different approach to democracy and human rights: the Diaspora should not try to
copy some of the corporate ideals of the West about being politically neutral or
indifferent to democracy and human rights. There must be a way to find a balance
between entrepreneurship (profit orientation) and the motivation to help other people
(charity), even if it is difficult. Every action is political, so of course every private
sector engagement is in some way political. Real social entrepreneurship would be to
achieve this delicate balance between profits and human rights. The Diaspora has
the opportunity to reinvent a new way of social entrepreneurship.
The Diaspora not only transfers money, but also ideas; hence, not only “typical”
corporate ideas should be brought to countries of origin, but at the same time ideas of
a just society.
12
The Diaspora can emphasize a bottom-up approach (respect local needs and
demands through their contacts) in order to ensure the social aspect to be brought in.
This will contribute to enhanced social business.
With its specific (cultural and market) knowledge and contacts, the Diaspora can
serve as a catalyst for European SMEs to overcome their hesitation to engage in
markets of the South.
As the social responsibility of Diaspora engagement in business affairs was already
mentioned before, the next examples put a focus on this important issue and present
different ways of how the Diaspora- business-cooperation can address social issues:
The Nedsom Foundation – based in the Netherlands - supports
private sector focused activities in Somalia. The most important aspects
Part 2: Diaspora linking
business and development
in their activities are local ownership and a bottom-up approach. Nedsom also supports
South-South knowledge exchange as presented in an example of a shipyard project in
Puntland, where young Somalis are getting trained in Sri Lanka in boatbuilding, in order to
support the Somali fishing industry with Sri Lankan knowledge.
The Union of European Turkish Democrats (UETD) aims at finding common
solutions to common problems between Europe and Turkey. Knowledge-transfer has proved
to play a crucial role in the development of the country; more so than pure financial
contributions.
Returnees from Germany founded the Club des Amis d’Allemagne (CAA) in 2001.
The association focuses on networking, reintegration, the facilitation of cultural, academic
and economic exchange between the countries, support of development projects and advice
for international companies willing to do business in Cameroon. Within this scope of
activities, the CAA aims at job creation (which should also facilitate the reintegration of
returnees), enhanced knowledge transfer and the strengthening of economic relations
between Germany and Cameroon.
The Philippine Association of Sea-based Workers for Savings, Loans and Initiatives
(PASALI) has undergone several changes of activities since its foundation in 1994. After
short lived remittance business, PASALI started investing in micro and small scale
businesses in the Philippines. This venture proved challenging as it was conducted with a
local NGO, and the NGO‟s goals differed from PASALI‟s. The main challenge for MOs to
engage in a sustainable manner in the Philippines is to get more Filipinos to invest in social
enterprises in order to sustainably address social issues such as poverty, food security,
conflict, climate change among others.
One important finding of the discussions was that actors need to think “out of the box” in
order to come up with new ways of cooperation which ultimately address social problems in
13
the South. Moreover, “think globally, act locally” was mentioned; i.e. that the Diaspora is
often times more open towards South-South cooperation than people in the countries of
origin. Cooperation with neighboring countries is very often much more efficient than pure
North-South focus and the Diaspora can play a crucial role in promoting this idea.
Again, the importance of promotion of the Diaspora‟s assets was mentioned as crucial for
future cooperation of MOs, private sector actors, countries of origin, and development
cooperation actors. In this context a structured dialogue is needed in terms of further defining
potential forms of cooperation. In any way, it became clear that MOs, donor or
implementing agencies and countries of origin pursue similar goals and the
private sector can play a central role in reaching those.
The questions and concerns raised during the first parts of the conference
c) New Partnerships
and Sustainable
Alliance Building
were further worked on during four interactive workshops:
Workshop 1
•Potential fields and forms of cooperation of the Diaspora and the private sector
Workshop 2
•Success factors for a mutually beneficial cooperation of the Diaspora and the private sector
Workshop 3
•Contributions to development through the cooperation of the Diaspora, the private sector and civil
society.
Workshop 4
•The contribution of governmental organisations both from North and South to business development of
the Diaspora
Workshop 1
•Potential fields and forms of cooperation of the Diaspora and the private sector
Several potential fields of cooperation were identified, such as livestock, infrastructure,
agriculture, fishery, tourism, and education. The main difficulties mentioned are poor
infrastructure, funding for co-financing projects, lack of government support, bureaucracy,
lack of trust and information, policies and laws and difficult investment and business climate.
The most promising potential forms of cooperation between the Diaspora and the private
sector are social entrepreneurship, joint ventures, public-private partnerships, franchising,
contract manufacturing and Diaspora direct investment (DDI – as opposed to foreign direct
investment (FDI)). One important issue raised was the fact that it needs clear definitions of
who is Diaspora and who is private sector as very often, both groups are overlapping and
clear distinctions are difficult to make.
Possible modes of cooperation were discussed as well:
With regard to the degree of institutionalization, the group found that actors need to be easily
identifiable, e.g. entrepreneurial Diaspora, business consultants or in form of a (newly
created) Diaspora fund.
Also the goals of the cooperation are clear: job creation, knowledge-transfer and
development in a broader sense. There is already a number of mutual interests, benefits and
goals of the Diaspora and actors of the private sector. The ideal case would be a
combination of development- and profit-orientation.
External support could be envisaged on the one hand by governments, e.g. long-term
financial support from both the country of origin‟s and the host country‟s government. The
main role of governments in this cooperation is seen in the improvement of investment and
business climate. On the other hand, development agencies could e.g. support the creation
of Diaspora funds or joint funds of the Diaspora and other development actors; give soft
loans; stimulate Diaspora engagement; build capacity among MOs; or support network
building among MOs.
Potential benefits envisaged are e.g. brain gain, improved infrastructure, improved position
of the Diaspora in the host country (in terms of integration), higher acceptance of the
Diaspora in the country of origin, higher visibility and new markets for the European private
sector.
Potential risks resulting from this cooperation are conflicts of interest of the different actors;
increased external competition for the local market (which – at the same time – might also be
14
a benefit); unfair competition in the country of origin; environmental degradation and social
conflicts.
Workshop 2
•Success factors for a mutually beneficial cooperation of the Diaspora and the
private sector
Workshop 2 tried to define the prerequisites to make this cooperation successful for all
stakeholders involved.
First of all, it needs “bridges” – e.g. development cooperation - to bring the Diaspora and the
corporate world together. The private sector needs to be convinced that the potential profit is
high enough in order to make it worth the risks (which are substantially higher in developing
countries). Professionalism from all actors is a must; i.e. a visible business plan has to be
made and the financial sector should get involved, thereby ensuring sustainability and
financial independence. Policy makers in partner countries should get involved, as it also
needs policy support for sustainable private sector development. From an intercultural point
of view, members of the Diaspora need to make sure to “relearn” the cultural background of
the country of origin.
Several main obstacles to successful Diaspora – business - cooperation were identified:
1) lack of visibility of the Diaspora so that the corporate sector is not even aware of its
untapped potential; 2) corruption; 3) misunderstanding of local needs; 4) fading links to the
country of origin due to assimilation in the host country; 5) practical factors such as
differences in the cultural context, the organizational culture, different business costumes,
exchange rate fluctuations etc.
Which next steps could be envisaged?
A definition to distinguish European SMEs, Diaspora and local SMEs would be
helpful.
Setting up a community dialogue could support those MOs who want to actively get
engaged with business actors and thereby aiming at development in the country of
origin.
As at the moment, there is a lack of trust between MOs and the corporate sector in
both the country of origin and destination, this trust needs to be built up in order to
make relationships with the South more sustainable. This will also contribute to an
enhanced understanding regarding strengths and weaknesses of the different actors
in host countries and countries of origin.
15
Workshop 3
•Contributions to development through the cooperation of the Diaspora, the
private sector and civil society.
As a first step, the potential development contribution in the Diaspora-businesscooperation was defined as follows (non-exhaustive list):
Poverty reduction
Food security
Empowerment of local (South) private sector actors in general; focus on women
economic empowerment in particular
Development of the local (South) private sector and thereby offer the local population
economic alternatives
Strengthen brain gain; stop brain drain
Foster knowledge and technology transfer
The Diaspora brings in a focus on social business and corporate social responsibility
(CSR)
What are the prerequisites for this cooperation to have any development impacts?
MOs need a (social) business idea, which can contribute to the development of their
country of origin. It not only needs financial capital, but also professional staff.
MOs contribute intercultural competences and networks to this cooperation.
Due to their specific knowledge and contacts, MOs can mediate and facilitate with
local actors.
Corporate actors need to show willingness to get engaged with the Diaspora and in
new forms of cooperation which are not purely profit-oriented.
Openness for new experiences (in terms of objectives, partners, markets, clients etc.)
is a must.
An additional success factor is patience – for business results, even more so for any
development impacts.
In order to establish this Diaspora-business-cooperation, all potential actors should get to
know each other better; i.e. business actors (chambers of commerce, business association)
should collect information on Diaspora Organizations and provide this information to
multipliers; at the same time, MOs can obtain information about foreign trade and business in
general at above mentioned business representatives.
The match-making between MOs and SMEs can be supported by multipliers, chambers of
commerce, business associations, federations, regional associations and development
16
cooperation. In the German context, the institutional framework for support might be provided
by the Federal Ministry of Economic Cooperation and Development (Bundesministerium für
wirtschaftliche Zusammenarbeit und Entwicklung, BMZ) and the Federal Ministry of
Economic Affairs and Technology (Bundesministerium für Wirtschaft und Technologie,
BMWi).
Workshop 4
•The contribution of governmental organizations both from North and South to
business development of the Diaspora
The initial question raised in this workshop was if governments should offer additional
support to involve the Diaspora into business at all, or whether Diaspora members should
just use the structures already in place.
Assuming that governmental support is needed for a successful Diaspora-businesscooperation, one of the findings was that both the country of origin and destination should
offer support measures. Of course, this will not be sufficient – Diaspora actors need to show
initiative and personal will at the first place. Well-integrated migrants could for example
create independent and transparent platforms for exchange of ideas and knowledge on the
practical implementation of business ideas. The Diaspora needs to get organized and offer
one communication interface to the government. Policies are not made for individuals, so the
Diaspora needs a proper representation towards the government. Coordination, cooperation,
and homogenous grouping are needed. Visibility and recognition will at the same time
increase as well. The money generated by the Diaspora and its influence in both the country
of origin and destination makes the Diaspora an interesting party for development
cooperation, the private sector and also the respective governments.
Moreover, Diaspora members have to keep a link to the language and culture of their country
of origin if they want to get engaged with government actors there.
Governmental support from country of origin‟s side is especially needed for returnees
who eventually might become important business actors if they manage to settle back in
again. Governments of countries of origin should also ensure to provide structures and
policies promoting South-South mobility of capital and labor in the first place. This should
enhance circular migration and also investment abroad.
When putting new policies in place, governments need to think long-term and consider
sustainability and continuity in order to achieve any development impacts. Furthermore, a
bottom-up approach should be followed.
17
Government policies should acknowledge the fact that Diaspora members very often have
experience and expertise also in other countries than just the country of origin and
destination. This is especially relevant when it comes to residence permits and multiple
citizenships. Diaspora engagement in the country of origin or third countries is often times
hindered by the potential loss of residency when one is longer than e.g. 6 months abroad.
Hence, in order to foster rather than discourage transnational Diaspora engagement, it needs
respective policy and legislative changes.
If a host country‟s government works with Diaspora organizations, this might at the same
time improve the Diaspora‟s visibility in the country of origin.
One question that remained unanswered is how to deal with governments who do not
perceive their Diaspora as an asset but rather as unwanted or even dangerous. Does private
sector engagement of these Diaspora groups in their country of origin make sense and if so,
what could or should it look like?
7. Conclusion and Follow-Up
Intense discussions proved that there is huge interest in the topic of “Diaspora as bridge
builders for North-South business and development”. The most important messages from
the conference “Building Bridges. Diaspora for Business and Development” are:
… the private sector recognizes the potential of Diaspora members for venturing into
new markets of the South. There is potential for Diaspora-business cooperation!
… however, the knowledge about the Diaspora‟s assets is not very widespread yet in
both the corporate sector and among development cooperation actors. Migrants
organizations need to enhance their visibility!
… the Diaspora members‟ knowledge about the corporate world is not very deep, either.
All actors need to get to know each other better!
… actors of countries of origin – both on government and private sector level – are not
always actively involved in business development projects. Ensure ownership!
…
when
dealing
with
the
private
sector
and
government
professionalism is required.
representatives,
18
Some of the initially defined questions were answered and a number of important
questions arose during the conference. These should provide a basis for further joint work
on the topic:
•How can the transition from charity to business-oriented projects be facilitated?
•How can countries of origin - government, private sector and civil society alike - be more
actively involved in business development activities?
•Which role can or should development cooperation play in this Diaspora-business-cooperation?
Is there a need for specific capacity building for MOs in terms of getting more professional for
business relations?
•Can business activities by Diaspora members contribute to a stronger recognition of migrants in
their host country?
•How can best practice examples and lessons learnt in the field of Diaspora-businesscooperation be more effectively shared with a broader public?
•How can networking between Migrants organizations, the corporate sector from both the
North and South and relevant public actors be improved in order to not only pursue business
goals, but at the same time reach for development impacts?
•How shall MOs, private companies and development actors deal with governments who
perceive their Diaspora as a threat? Does private sector engagement of these Diaspora groups
in their country of origin make sense and if so, what could or should it look like.
The next Building Bridges-Conference will be hosted by DCMO in the Netherlands in 2013.
Further information as well as all presentations held at the conference can be found at
www.diasporabusinessdev.com .
19
8. Annex
a. Agenda
Agenda
Building Bridges – Diaspora for Business and Development
th
19:00
8:30
9:00
9:15
9:25
9:45
10:45
11:15
Friday, April 13 , 2012
Reception at Türkisches Volkshaus e.V.
Werrastraße 29 (courtyard, entrance on the left hand side, 2nd floor), 60486 Frankfurt a.M.
casual
th
Saturday, April 14 , 2012
Opening of the “Business Fair”
Companies and Organizations present themselves in the Lounge
Opening Speech
Dr. Uwe Kievelitz – CIM (Centre for International Migration and Development)
Good morning! Introduction of the moderators
Presentation of the agenda and general instructions
Keynote Speeches
Ronald Lucardie (DCMO)
Peter Kiruthi (Mr. Seed)
Opportunities and chances:
Regions of the South: Challenges and opportunities for business and development
James Ofwona – Founder, CEO Tricomp International:
Why regions of the South are interesting for European SMEs
Dr. Hans-Peter Merz - IHK Mittleres Ruhrgebiet:
The challenges SMEs are facing by venturing into Southern markets
The role of Diaspora and SMEs in business and development cooperation
Judith Helfmann-Hundack – Afrika-Verein der deutschen Wirtschaft e.V.:
Potentials of private sector engagement in development cooperation
Millicent Odongo – Partner, Diaspora Business Center Kenya:
The role of Diaspora organizations in North-South (and South-South) business relations
COFFEE BREAK
Diaspora building Bridges for Business and Development
PART 1: Diaspora as business facilitator
Three best practice examples showing how the contribution of the Diaspora facilitates the progress and
success in North-South business cooperation
Cheick Diallo - MC-Bauchemie, Germany
Estifanos Samuel - ESM / EGF / DÄSAV, Ethiopia / Germany
Frank Palyama - TitanE, Indonesia / Netherlands
Panel discussion
11:45
12:15
Cheick Diallo
Estifanos Samuel
James Ofwona
Dr. Hans-Peter Merz
Frank Palyama
Lunch with traditional African Music
20
13:30
PART 2: Diaspora linking business and development
Four examples showing how the involvement of Diaspora organizations in business relations can at the
same time contribute to development goals
Guled Yusuf Ahmed – Nedsom Foundation, Somalia / Netherlands
Dr. Hüseyin Kurt – UETD Hessen, Turkey / Germany
Jutta Steinmann – CIM integrated expert, Club des Amis d’Allemagne, Cameroon / Germany
Maya Butalid – Pasali, Philippines / Netherlands
Panel discussion
14:15
15:00
15:20
15:30
Guled Yusuf Ahmed
Dr. Hüseyin Kurt
Jutta Steinmann
Judith Helfmann-Hundack
Millicent Odongo
21
COFFEE BREAK
Introduction to the Workshops
New Partnerships and Sustainable Alliance Building
4 parallel working groups
WORKSHOP 1
Potential fields and forms of cooperation of the Diaspora and the private sector
Where and how can Diaspora organizations and SMEs work together?
Moderator: Ahmed Omar (Habo Tuna Factory, Somalia)
WORKSHOP 2
Success factors for a mutually beneficial cooperation of the Diaspora and the private sector
Which prerequisites are necessary from the private sector’s and the Diaspora organizations’ side
in order to make this cooperation beneficial for all stakeholders involved?
Moderator: Mohammed Abdullah (Managing Director – Dayax Islamic Bank)
WORKSHOP 3
Contributions to development through the cooperation of the Diaspora with the private sector and civil
society
Where is the development potential in this cooperation?
Moderator: Judith Helfmann Hundack (Afrika-Verein der deutschen Wirtschaft e.V.)
WORKSHOP 4
The contribution of governmental organisations both from North and South to business development of
the Diaspora
Moderator: Birame Diouf (Norway’s Contact Committee for Immigrants and the Authorities)
17:30
COFFEE BREAK
17:50
Presentation of the outcomes of the working groups (10 min/work group)
Final questions and statements, conclusion
18:30
19:00
- 20:00
Evaluation and outlook into the future:
Evaluation and final summary of the results of the conference
o Declarations of intent
o Vision of pilot projects
o Thematic clusters
Next steps, upcoming activities
Business Fair, Get Together
b. List of Participants
Surname
First name
Organization / Company
Email
1
Abdullah
Mohammed
Dayax Islamic Bank
2
Adjamah
Usha
CIM
u.adjamah@gmail.com
3
Aklilu
Edena
DÄSAV e.V.
e.aklilu@daesav.de
4
Amadou
Hamani
Gakassiney e. V.
gakassiney@gakassiney.de
5
Amiani
sylvia
AGGN
s_litula@yahoo.com
6
Ayertey
Bliss Larkwor
Uni Duisburg-Essen
bliss.ayertey@gmail.com
7
Bagnack
Olivier
8
Bakker
Sjoerd
D&D Advies en dienstverlening
sjoerd.bakker@gmail.com
Ballé Moudoumbou
Marianne
Zentralrat der Afrikanischen Gemeinde Afrikanisches Wirtschaftsforum
mandoballe@aol.com
10
Bergold
Eva
APD
eva.bergold@giz.de
11
Berhane
Vivian
vbConsulting / Business Development
vivian.berhane@vb-c.com
12
Bonin
Peter
GIZ/CIM
peter.bonin@giz.de
13
Bönnemann
Ingo
private
meinipod@yahoo.de
14
Butalid
Maya
Pasali, member of DCMO
mayabutalid@gmail.com
15
Chodota
Lucy
C-Through Productions
lucy@cthroughproductions.com
16
de Rasilly
Claire
ADER
claire.derasilly@ader.eu
9
olivier.bagnack@yahoo.de
22
17
Demsash
Miraf
DÄSAV e.V.
m.demsash@daesav.de
18
Deubler
Stephanie
GIZ / CIM
stephanie.deubler@giz.de
19
Diallo
Abdou Rahime
African Diaspora Policy Centre
rahime.diallo@diaspora-centre.org
20
Diallo
Cheick
MC-Bauchemie GmbH & Co.KG
cheick.diallo@mc-bauchemie.com
Diouf
Birame
Norway's Contact Committee for
Immigrants and Authorities
bdi@kim.no
22
Djoumessi
Didier T.
GIZ/CIM
didier.djoumessi@giz.de
23
Elsen
Catherine
Sajiloni
cathykayo@yahoo.com
24
Endeshaw
Victoria
DÄSAV e.V.
v.endeshaw@daesav.de
25
Gerhard
Katrin
GIZ
katrin.gerhard@giz.de
26
Ghebreslasie
Temesgen
IT-Beratung
tg@bsnsm.com
27
Gnofame
Antoine
Gnofame Partnership Management
antoine.gnofame@gpm-business.com
28
Guèye
Ibrahim
Jàppoo NRW e.V.
ibrahimgueye@hotmail.com
29
Hagos
Habtemariam
KPMG AG
HHagos@kpmg.com
30
Hagos
Terhas
African Youth Foundation
terhasina@hotmail.co.uk
31
Hahr
Mareike
GIZ
mareike.hahr@giz.de
Helfmann-Hundack
Judith
Afrika-Verein der deutschen Wirtschaft
e.V.
judith.helfmann-hundack@giz.de
33
Hukom
Nuel
TitanE
34
Kamali
Sanaz
MEPa e.V.
sanaz.kamali@gmail.com
35
Kannenworff
Anna
ABK training / coaching / consultancy
annakanneworff@gmail.com
21
32
23
36
Kievelitz
Uwe
CIM
Uwe.kievelitz@giz.de
37
Kiruthi
Peter
Mr. Seed
misterseed@hotmail.co.uk
38
Koutouan
François
DAKO e.V.
info@dako-ev.de
39
Krause
Cassandra
GIZ/ CIM
cassandra.krause@giz.de
40
Kunz
Bianca
CIM
bianca.kunz@zav-cimonline.de
Kurt
Hüseyin
UETD (United European Turkish
Democratics)-Hessen
hueseyin_kurt@yahoo.de
Liwag Kotte
Emmalyn
Philippinisches Diaspora Netzwerk für
Integration und
Entwicklungszusammenarbeit (Philnetz
e.V.) / journalist
emmalyn320@hotmail.com
43
Lucardie
Ronald
DCMO
ronald@lucardie.nl
44
Maaroufi
Azzedine
DMK
maaroufi@dmk-online.org
Mamay
Freweini
Deutsch-Äthiopischer Studenten- und
Akademikerverein e.V. (DÄSAV e.V.)
fr.mamay@googlemail.com
Marchand
Katrin
UNU-MERIT – Maastricht Graduate
School of Governance
marchand@merit.unu.edu
47
Melde
Susanne
ACP Observatory on Migration
smelde@iom.int
48
Merz
Hans-Peter
IHK Mittleres Ruhrgebiet
49
Mogos
Kiflemariam
Finance
Segen1965@yahoo.de
50
Muhuthia
Wangui
Talking Drum
wangui.muhuthia@yahoo.com
51
Naganuma
Isabelle
GIZ / CIM
isabelle.naganuma@giz.de
52
Nebane
Humphrey
Cameroon Anglophone Association
caahamburg_ev@yahoo.com
41
42
45
46
24
Hamburg eV
53
Nenkova
Yana
Consultant
nenkova_yana@yahoo.de
54
Ngalamo
Stephane
NALDO
stengal11@hotmail.com
55
Odongo
Millicent
Diaspora Business Center Kenya
modongo@hotmail.com
56
Ofwona
James
CEO Tricomp International
ofwona@tricomp.com.pl
57
Omar
Ahmed
Habo Tuna Factory
58
Otieno Ong'ayo
Antony
Utrecht University
A.O.Ongayo@uu.nl
59
Palasie
Serge
Forum für soziale Innovation
s.palasie@fsi-forum.de
60
Palyama
Frans
TitanE
fpalyama@casema.nl
61
Punt
Laura
DCMO/St. M-Projecten
mprojecten@gmail.com
62
Samuel
Estifanos
ESM
e.samuel@esm-online.com
63
Schilling
Johannes
CIM
johannes.schilling@giz.de
64
Schrems
Hannah
CIM
hannah.schrems@giz.de
65
Singhe
Arron
VKII
asinghe@yahoo.com
Spitz
Rene
Dutch Ministry of Foreign Affairs - Cluster
International Migration and Development
rene.spitz@minbuza.nl
67
Steinmann
Jutta
Club des Amis d'Allemagne
Jutta.steinmann1@cimonline.de
68
Thiam
Magueye
MIGRAF
magueye@gmail.com
69
van der Sluijs
Irina
Berenschot Groep B.V.
info@irinavandersluijs.nl
70
van Dillen
Bob
Cordaid
bob.van.dillen@cordaid.nl
66
25
71
Volarevic
Jurica
CIM
Jurica.volarevic@giz.de
72
Wiranatakusuma
(Pak) Arief
TitanE
73
Yildirim
Ali Can
Türkisches Volkshaus e.V.
alicanyildirim@gmail.com
74
Yogarajah
Balasingam
Development Fund
rajah@utviklingsfondet.no
75
Yusuf
Guled
Nedsom
guled@nedsom.com
26
c. List of Speakers
Input
9:00
Opening speech
9:25
Key note speeches
9:45
Why are regions of the South
interesting for European SMEs?
Challenges SMEs are facing by
venturing into Southern markets
Potentials
of
private
sector
engagement
in
development
cooperation
11:15
11:45
13:30
Role of Diaspora organizations in
North-South (and South-South)
business relations (example of
Diaspora Business Center)
Two best practice examples
showing how the contribution of the
Diaspora facilitates the progress
and success in North-South
business cooperation
Example 1 (Diaspora
representative)
Example 2 (SME representative
from the North)
Example 3
1st Panel discussion and interviews
with the presenters
Speaker
Dr. Uwe Kievelitz (CIM – Centrum
für Internationale Migration und
Entwicklung)
Peter Kiruthi (Mr. Seed)
James Ofwona (Founder, CEO –
Tricomp International)
Dr. Hans-Peter Merz (IHK Mittleres
Ruhrgebiet (chamber of commerce
Mittleres Ruhrgebiet))
Judith Helfmann-Hundack (AfrikaVerein der deutschen Wirtschaft
e.V. (German-African Business
Association))
Millicent Odongo (Partner,
Diaspora Business Center Kenya)
Cheick Diallo (MC Bauchemie)
Estifanos Samuel (ESM / DÄSAV /
EGF)
Arief Wiranatakusuma (TitanE)
Panel participants
- Cheick Diallo
- Estifanos Samuel
- James Ofwona
- Dr. Hans-Peter Merz
- Arief Wiranatakusuma
Three examples showing how the
involvement of Diaspora
organizations in business relations
can at the same time contribute to
development goals
Example 1(Diaspora representative)
Example 2 (SME from the South)
Example 3 (representative from dev.
Organization)
Guled Yusuf (Nedsom Foundation
Shipyard project)
Dr. Hüseyin Kurt (UETD Hessen)
Jutta Steinmann (Club des Amis
d‟Allemagne, Cameroon)
27
14:15
15:30
18:30
Example 4
2nd Panel discussion and
interviews with the presenters
Maya Butalid (Pasali)
Panel participants
- Guled Yusuf
- Dr. Hüseyin Kurt
- Jutta Steinmann
- Judith Helfmann-Hundack
- Millicent Odongo
Workshop 1: Potential fields and
Ahmed Omar (Habo Tuna Factory,
forms of cooperation of the Diaspora Somalia)
and the private sector
Workshop 2: Success factors for a Abdullah Mohammed (Managing
mutually beneficial cooperation of
Director – Dayax Islamic Bank)
the Diaspora and the private sector
Workshop 3: Contributions to
development through the
cooperation of the Diaspora with the
private sector and civil society
Judith Helfmann-Hundack (AfrikaVerein der deutschen Wirtschaft
e.V. (German-African Business
Association))
Workshop 4: The contribution of
governmental organisations both
from North and South to business
development of the Diaspora
Final questions and statements,
conclusion
Birame Diouf (Norway‟s Contact
Committee for Immigrants and the
Authorities)
Peter Bonin (GIZ)
28
d. Keynote Speech Ronald Lucardie
MIGRANT ORGANIZATIONS AND SMALL AND MEDIUM SIZE ENTERPRISES (SMES) FOR
DEVELOPMENT
– THE CASE OF THE NETHERLANDS: NEW OPPORTUNITIES AND OLD CAVEATS
(LESSONS LEARNED)
The field of Small and Medium Size Enterprises (SMEs) and development (including
development aid) is vast and very diverse.
Please allow me to restrict my input to picturing new opportunities as well as old caveats
(based upon lessons learned) for a certain type of migrant organizations in the Netherlands
when they venture into the field of SME development.
New opportunities
The type of migrant organizations I will talk about here is of the NGO kind, which implements
development aid projects in the South (mainly in the country of origin), either directly and / or
through partner organizations in the South.
Most of these migrant organizations started their activities around the year 2003 when
migrant organizations in the Netherlands got access to the co-financing subsidy system for
development aid of the Dutch government.
Some of these migrant organizations already existed before 2003 as so-called self-help
organizations to facilitate the integration of their members into the Dutch society, and
changed the focus of their activities to development aid, because of the opportunity to join
the co-financing system.
Others were already for many years supporting their home countries by sending remittances
to relatives back home, for example the Moluccan (East Indonesian) migrant organizations,
like TitaNe .
The majority of these migrant organizations got this access indirectly via partnerships with
the lager established donor organizations in the Netherlands, such as Cordaid (Caritas
Netherlands).
Only a few migrant organizations were ready to receive subsidies directly from the Dutch
government, such as of the organizations participating in this conference:
Nedsom
(Somalia), and Sankofa (Ghana).
The partnership with the established donor organizations had tremendous advantages for
both the migrant organizations, and the donor community.
29
The donor organizations not only acted as a service window for the government subsidies,
but also helped the migrant organizations to build capacity and track records for future direct
access to government subsidies and other programs.
The donor community was offered the possibility to widen its range of social support with a
growing and vital group of new citizens, which could bring “new blood” into development aid,
in particular with their local and tacit knowledge, and networks in the countries of origin.
At the end, of course, the benefit was for the target groups of both the donor community and
the migrant organizations, viz. the poor, marginalized, and excluded people in the South.
More than forty years ago the co-financing subsidy system was the joint political
achievement of Dutch civil society and the government.
Such a subsidy system for development aid is a social-political construction which never
operates in splendid isolation, so it is only natural that the system had to be adjusted in the
course of time, because of new insights, lessons learned, and changes in the economic and
political climate.
About two years ago the system changed in such a way, that the above-mentioned
partnership between the donor and migration organizations has to be stopped.
Among the migrant organizations this triggered different, and in some cases extreme
reactions, such as disappointment, and blaming of politics and the donor community for the
situation.
Of course, as we may expect in a democracy as the Netherlands, this situation is now part of
the political discourse, not only with regard to the position of the migrant organizations, but
concerning the whole idea of development aid as a paradigm for international cooperation.
A number of migrant organizations
did take up the situation in a more positive way,
considering it as an extra challenge or stimulus to find new and alternative ways to make
their activities financially sustainable.
Some of them even called the situation a “blessing in disguise” because it prevented them in
an early stage from becoming too addicted to subsidy systems.
One of the alternative ways to make the activities financially sustainable was to shift the
focus of the activities to a more business oriented approach, and to find new allies in the
corporate sector.
This shift came not suddenly, as it was to a great extent indebted to the support of the donor
organizations.
30
The past years this shift in orientation was already initiated with the support of various donor
programs, such as microfinance and small enterprise development.
For example, most of the SME activities of the DCMO (Dutch Consortium of Migrant
Organizations) members, participating in this conference (Nedsom, Pasali, Sankofa, TitanE),
have been made possible by earlier partnership support of Cordaid.
The ongoing cooperation between DCMO, its associates, and Cordaid may offer new
opportunities and good prospects for the future development of SME activities as a possible
new paradigm for development aid and international cooperation.
New opportunities may be identified for finding resources to sustain development activities,
but also to enhance quality and innovation in the field of development aid.
I will leave it to the DCMO members, participating in this conference, to elaborate on these
new opportunities, and to share their ideas and experiences with their German colleagues.
Old caveats (Lessons Learned)
To venture into SME development seems to become the panacea for many migrant
organizations in the Netherlands which are now facing diminishing funding from the usual
sources.
“Business for development” is more and more hailed as the ultimate paradigm shift for
development aid.
However nothing comes easy in development aid, and every development intervention –
including SME development – may also have disadvantages.
Those who are coming from the aid traditions with a focus on just and humane development
cannot blindly step into SME development, whilst simply forgetting the original motivation of
their endeavors.
There are many lessons learned from the past, which may serve as “old caveats” to prevent
a too hasty change of both operations and orientation.
I will mention here four clusters of old caveats and lessons learned, hoping that this may
contribute structuring the discussions in the workshops and panels today.
Eligibility and vision
A number of lessons learned and old caveats relates to the basic question: which SME for
development activities can be eligible for support within the field of development aid, and
which not?
From the early beginnings of the development aid for SMEs we have asked this question.
31
In development aid this is not only a question about the feasibility or quality of the SMEs to
be supported, but also a question related to the vision and ideological orientation of donor
organizations and their partners.
Many private donor agencies want to work in different niches for development aid, and for
different target groups than the niches and target groups of the public sector Enterprise
Development Organizations (EDOs), and the for-profit private sector EDOs.
Most private donor agencies have a clear ideological option for the poor, the marginalized
32
and the excluded.
These are usually not the most easy target groups to work with in the field of SME
development.
Among private donor agencies there seems to exist an almost “traditional” reluctance to
engage in what Is often judged disapprovingly as “betting on the strong” or “trickle down”
strategies for development.
This reluctance echoes old (post)colonial discourses on dual and informal sector economies,
which nowadays may have gained new momentum in the light of the present discourse on
the pros and cons of neo-liberalism.
In this respect challenging questions to the migrant organizations participating in this
conference could be:
In your programs and projects for SME development, did you consciously made a
choice for working with certain target groups?
Is this choice based on any vision or ideology?
For example, the choice of DCMO member Pasali to work with indigenous people and
Muslim minority groups in Mindanao seems to be ideologically self-evident, but what is the
vision or ideology behind the choice for the target group in the case of the shipyard project of
DCMO member Nedsom?
Effectiveness and the wider context
Related to the question of eligibility of groups for SME support, is the matter of how the SME
support is embedded in the wider social, political, economic or regional context.
The programs and projects of private donors and their partner migrant organizations are
mostly but small-scale interventions if compared to the magnitude of problems of poverty and
unemployment in the wider context.
Effectiveness of such interventions can only be guaranteed if there is any coordination with
other stakeholders in the wider context, e.g. local or regional planning boards, or other
groups which have an interest in the wider economy like cooperatives, farmers unions, or
already existing local enterprises.
There are many lessons learned from the recent past, showing that forgetting the wider
context, and not coordinating with other actors, cannot only diminish the effectiveness of
SME support, but can also become a threat to real development.
An example is the donor-supported extreme proliferation of the number of rice mills and
small shops in some rural areas of the Philippines, shortly after liberalization and
deregulation of cooperative and entrepreneurial laws in the nineties of the last century.
In your programs and projects for SME development, did you try to relate your
activities to the wider social, political, economic or regional context?
Did you try to coordinate your activities with other stakeholders?
For example, how does TitanE‟s support for small nutmeg producers in East Indonesia relate
to the wider context, and is there any coordination with other stakeholders in the region (e.g.
local Chinese middlemen)?
Market, competition, sustainability and ethics
SMEs are part of the Market, and competition is part and parcel of the Market.
Market competition is not automatically accountable to modern requirements of sustainability
(in particular environmental sustainability) or ethical behavior (respect for both producers and
consumers).
Some cynics would even say that Market competition by definition will always try to avoid
sustainable and ethical responsibilities.
Anyhow, sustainable and ethical behavior cannot be taken for granted if we support SME
development.
A “do no harm” analysis before starting to support SME development, would be highly
recommendable.
33
In your programs and projects for SME development, did you take care of
requirements of sustainability and ethics?
Did you try to make a “do no harm” analysis before starting the SME activities?
For example, what measures are taken to prevent pollution in the production lines of the
shipyard activities of Nedsom, and how are workers‟ rights guaranteed?
Ethics, motivation, and mobilization
In the modern world we tend to forget that in most cases the motivation to help other people
is rooted in ethics and moral values, often related to religion (e.g. caritas, zakat, sadakah,
sewa, etc.).
Without this motivation, SME support will remain a mere technical activity without any human
significance in the end.
Furthermore, this motivation is also indispensable for mobilizing other people, e.g. European
SMEs to join the support of SME development in the South.
A lesson learned from the migrant organizations in the Netherlands is, that the mobilizing
power of this kind of motivation should not be underestimated.
For example, an associate of DCMO with a Hindu background (Seva network foundation) is
able to mobilize many SMEs owned by Hindu people from Surinam for development aid
projects in the West Indies and the Indian subcontinent.
Another example is the Turkish DCMO member SMHO, which is able to mobilize Turkish
entrepreneurs in the Netherlands to join development aid activities for people in the South
through the “Ahilik” system, which is an ancient system of social entrepreneurship.
The representative of the German UETD (Union of European Turkish Democrats), an
associate of SMHO, is asked to explain how the “Ahilik” system works.
A similar motivating and mobilizing power can be found in elements and principles of Sharia
banking (commonly referred to in the Western world as “Islamic banking”).
The representative of the Dayax bank in Kuala Lumpur (founded by migrants from Somalia)
is invited to tell more about this.
Maybe the ethical foundation is the most valuable contribution of the migrant organization to
development aid in the Netherlands, as it brings back human meaningfulness and
significance into the core of “Development of business”, and “Business for Development”.
Ronald Lucardie (Advisor for DCMO), The Hague, 4th of April 2012
34

Building Bridges – Diaspora for Business and Development

Transcription

Similar documents

HER WORD AS WITNESS:

Diaspora for Development – the Western Balkans Experience

Balloon Diaspora - Cardboard Computer

Global Diaspora and Development Forum

beauty - College of Liberal Arts

Indian content sold outside

By CHIKA ONYEANI - Africa Travel Association

Remittances, Diaspora and Microfinance

success stories of cooperation in local communities