Humanities and Social Sciences

2017; 5(1): 14-25

[Link]
doi: 10.11648/[Link].20170501.14
ISSN: 2330-8176 (Print); ISSN: 2330-8184 (Online)

The Potential Contribution of Ethiopian Diaspora in

Development: The Presenting Absent Partners
Tariku Raga Lencho
Department of Political Science and International Relations, Dire Dawa University, Dire Dawa, Ethiopia

Email address:
tarikuraga@[Link]

To cite this article:

Tariku Raga Lencho. The Potential Contribution of Ethiopian Diaspora in Development: The Presenting Absent Partners. Humanities and
Social Sciences. Vol. 5, No. 1, 2017, pp. 14-25. doi: 10.11648/[Link].20170501.14

Received: December 22, 2016; Accepted: January 3, 2017; Published: February 21, 2017

Abstract: This day, it seems that there is a general consensus among scholars and policy makers that Diaspora could play
paramount roles in enhancing development processes to alleviate poverty in developing countries like Ethiopia. This study
aimed to elicit the potential roles of Ethiopian diaspora in promoting the country’s development. Eventhough numerous
scholarly works exist on Diaspora related issue, there were no literatures concerning the potential roles of Ethiopian diaspora in
accelerating the country’s development efforts. This paper attempts to highlight: (i) the potential roles of Ethiopian Diaspora in
the promotion of the country’s development (ii) important initiatives taken by the government to draw the Diaspora to
participate in enhancing the development endeavors of the nation and (iii) the factors hindering the diaspora not to participate
in the country’s development. The study uses different government proclamations/official documents/, other literatures and
personal reflections to examine the potential roles of Ethiopian diaspora in enhancing country’s development. Overall, despite
the fact that the government has made some initiatives and/or efforts to attract the diaspora to the country, there are factors
which obstruct their return to the country such as lack of political and economic environments like execution capacity,
inefficient government bureaucracy, weak institutions and corruption, lack of good governance at the grass root level and
strong political commitment to democratize the state on behalf of the government. More than any other issue, building a
democratic political culture at home is an important prerequisite for the return of Diaspora. In this regard, Ethiopia needs to
create an enabling environment and establish strategic collaborations and partnerships with all its Diasporas.
Keywords: Development, Diaspora, Ethiopia, Poverty Alleviation

1. Introduction
1.1. Background of the Study between Diasporas and development were rarely recognized
(Bakewell, 2009:1). Until late 1990s, Africans emigrants
This day, most countries in the world have recognized the were seen as embodying the brain drain and carrying away
important role that their respective Diasporas could play in the skills of the continent. Their remittances were received by
economic growth and development. In Africa and Europe, for their relatives, but many argued that this flow of money was
example, the roles of migrants and Diasporas in development used for ‘conspicuous consumption’- rather than investment-
processes have been increasingly highlighted. This include and increased inequality between households (ibid). There
transfer to their country of origin- especially through were also concerns about the political influence of Diasporas,
remittances-financial support for development projects, the which were sometimes seen as contributing to conflict and
formation of Diasporas led development organizations and corruption (Lyons, 2009:2).
direct personal involvement of diasporas members in The emigration from Ethiopia is a recent phenomenon that
development initiatives. As a result, this has led to a search began in the 1970s with the outbreak of Ethiopian revolution
for policy initiatives to maximize their contribution. of 1974, which led to two decades of conflict and large
The emergence of such development oriented Diasporas is refugee out flows from the country. In the 1980s, refugee
a recent phenomenon. Previously such positive relationship crisis in the horn of Africa was the largest in the world with
 Humanities and Social Sciences 2017; 5(1): 14-25 15

over one million Ethiopian refugees residing in the and Lyons (2009) tried to discuss the role of Ethiopian
neighbouring countries of Sudan and Kenya (Kuschminder Diaspora from different aspects.
and Siegel, 2010:2). The majority of these refugees were got In her study entitled “the Role of the Diaspora in
asylum in the United States and Europe though Some of them Knowledge Exchange Network for National Growth and
returned to Ethiopia in the 1990s. Currently, emigration from Social Change in Ethiopia” Tewabech Bishaw (2011)
Ethiopia has continued with both low and high skilled explained Diaspora’s role in knowledge exchange. Her study
migrants because of political and economic reasons was limited only to the role of Diaspora in knowledge
(Tewabech, 2011). Opposition party members, bloggers and exchange and didn’t address the overall potential contribution
journalists have migrated to different developed countries of the Diaspora in development of the country.
because of unfavorable political environment in the country Under the title “Diaspora engagement policies in Ethiopia”
and young Ethiopian women have also migrating to Arab Kuschminder (2010) on his part briefly discussed the
countries in search of better employment opportunities. attempts made by the government to formulate the Diaspora
Though much of the Ethiopian Diaspora is concentrated in policy. The study mentions nothing about the potential
the European countries and USA, it is not uncommon to find contribution of the Diaspora in the development of Ethiopia.
Ethiopians or Ethiopian origin of other country’s citizens in Kuschminder and Siegel (2010) in their study entitled
almost every countries of the world. Ethiopian Diaspora left “Understanding Ethiopian Diaspora engagement policy” also
the country for varieties of reasons including political, social stated about the institutional and policy arrangements
and economic and others. developed in Ethiopia and their effects on the Diaspora.
Several developing countries, including Ethiopia, are Nothing stated about Ethiopian Diaspora in relation to
making coordinated effort to attract their Diasporas. However, development. This study largely attempts to fill this gap.
there could be multi-faceted problems affecting their return Furthermore, Chacko and Price (2009) in their study entitled
back home like lack of conducive political and economic “the Role of the diaspora in Development: the case of
environment such as execution capacity, inefficient Ethiopian and Bolivian immigrants in the United States”
government bureaucracies, weak institutions and chocking briefly discussed the roles of the Ethiopian and Bolivian
corruption. These are probable constraints, which deter the Diaspora in the USA. In their comparative study of the two
Diaspora from participating in their countries development countries, they did not focus on efforts made by government to
effort. engage them in the development process nor the challenges the
Even though the government of Ethiopia developed policy diaspora faced in participating in the poverty reduction which
regarding investment, housing and citizenship, most of the this study takes into consideration. Their comparison was only
Diaspora’s political orientation and inclination appears not go in terms of remittance contribution only.
along with these policies and laws. Thus, their contribution to Terrence Lyons (2009), in his study entitled “The
the country’s economic development might be unsatisfactory. Ethiopian Diaspora and Homeland Conflict” discussed the
role of Ethiopian Diaspora in the May 2005 elections of
1.2. Statement of the Problem Ethiopia. He argued that the influence of Ethiopian Diaspora
The Ethiopian government has officially acknowledged the was explicitly visible in the decision of the opposition parties
important roles of the Diaspora to the countries development (mainly CUD) to participate in the elections and whether to
over the past decades. However, the progress observed in stay or leave the parliament after the election. His study was
engaging the Diaspora in the development process seems not limited to explaining the role of the Diaspora in that
good enough. This could be largely attributed to the absence particular election and their participation in home land
of comprehensive national Diaspora policy and unfavorable conflict in the aftermath of the election and he did not
political and economic environment prevailing in the country. mention the overall potential contribution of the Diaspora in
Thus, the objective of this study is to identify the potential the country’s development. Generally, this study fills the
contributions of Ethiopian Diaspora in the country’s existing gap in literature in the area of Diaspora and
development and the factors hindering them from development which lacks strong consideration in
participating in the development process. No study has contemporary Ethiopian Political Economy by the country’s
conducted regarding the potential contributions of Ethiopian policy makers and politicians.
Diaspora in development of the country in a broader context. 1.3. Objectives of the Study
Despite the fact that Ethiopian Diaspora has been engaging in
the politics and development of the country since the last two The general objective of the study is to identify the
decades, little or no attention has been given to the area of potential roles of Ethiopian Diaspora in promoting the
development. Even if the issue is sensitive, it lacks the development of the country. The Study has the following
attention of scholars and policy makers. But, this does not specific objectives:
mean that there is no any literature concerning Diaspora and To explore the potential contributions of Ethiopian
development. It is important to mention few literatures on the diaspora in the promotion of the country’ development.
Ethiopian Diaspora and development. For instance, To identify the initiatives taken by the government to
Tewabech Bishaw (2011), Kuschminder (2010), attract the diaspora to participate in the development
Kuschminder and Siegel (2010), Chacko and Price (2009) endeavors of the country.
16 Tariku Raga Lencho: The Potential Contribution of Ethiopian Diaspora in Development: The Presenting Absent Partners

To find out the factors hindering the Diaspora’s 2. Conceptual Clarifications and
participation in the country’s development.
Theories on Migrations
1.4. Methodology and Sources of Data
2.1. The Concept of Diaspora and Transnationalism, and
Methodology in a research is a way to systematically Development
solve the research problem and it may be understood as a
science of studying how research is done scientifically During the last twenty five years, the term Diaspora and
(Kothari, 2004). This study is based on extensive library transnationalism have gained increased acceptance in
work. In the course of doing this research, the researcher migrations studies, being widely used in shaping the research
has used secondary sources of data such as books, journal agendas. Yet, while diaspora is a very old concept, even
articles, magazines, relevant government documents going to back to historic experiences of Jewish people,
(proclamations), as well as internet sources. The study also transnationalism is relatively new notion appearing on
used personal reflections to examine the challenges facing academic literature in the 1990’s (Faist, 2010).
Ethiopian Diaspora in promoting country’s development. The term ‘Diaspora’ is a long standing term and it has
However, it will be challenging to obtain sufficient data that historically been associated with the notion of dispersion of
will specifically be a high-quality input for analyzing the an ethnic population outside their traditional homeland
issue due to the sensitive nature of the topic and a highly (Proctor, 2003:151). Etymologically, the word ‘diaspora’ is
politicized part in the current politics of the country. derived from the two Greek words ‘dia’ and ‘sperien’
Because of this, the study becomes declarative in nature. meaning ‘over’ and ‘sow’ or ‘scatter’ respectively as in the
Due to the nature of the topic and the theoretical tool scattering of seed. For them it meant the ‘seeding’ of Greek
employed to analyze the issue under discussion, colonies in distant lands (ibid). Originally, it was used to
methodologically the relevant information from secondary refer to the exiles of Jews from Palestine and more recently
sources through the above methods are described and the term has been adopted and adapted by post colonial
analyzed qualitatively. scholars and artists to refer to the forced and voluntary
migrations set in motion by empire.
1.5. Significance of the Study Scheffer, defined the concept Diaspora as “a modern
Diasporas are ethnic minority groups of migrants origins
The researcher believes that the participation of the residing and acting in host countries but maintaining strong
Diaspora in the development process enables the country to sentimental and material links with their countries of origin-
reduce poverty or promotes the development efforts the their home lands”(2006:4). This definition asserts that
country has already started. This study attempts to assess the Diaspora is a small section of minority migrants living in the
potential contributions of Ethiopian Diaspora in the receiving state and has strong emotional and material contact
development of the country and the challenges they with their countries of origin. However, nothing stated
encounter as there is no such research conducted on the issue through which channel they have arrived (legal or illegal) in
previously. their migration.
Since there were no researches conducted on the potential Another useful definition is provided by the UK House of
contribution of Diaspora in the development of the country, Commons: “Diasporas are international migrants who are
this study is intends to pave the way to academic and dispersed from their home lands, but remain in some way
research communities in order to conduct further research on part of their community of origins” (Sixth Report of Session,
the issue under discussion. In addition, this study could be an 2003-4, Volume1 as cited in Ionescu, 2007:13). This
important input for policy makers since it discern out the definition captures the following points: individuals are
potential contributions of the diaspora in enhancing the dispersed, possibly across several countries, but they
country’s development and the factors impeding them not to maintain an interest and affiliation to their home country,
actively involve. either, ‘real’ or ‘imagined’. There is no fundamental
1.6. Scope of the Study difference the above two definitions.
The African Union convened an expert meeting for
The study mainly focuses on examining the potential member states in April, 2005 to prepare a definition for the
contributions of Ethiopian Diaspora in the development of “African Diaspora.” The adopted definition is: “The African
the country, the attempts made by the government to attract Diaspora consisted of peoples of African origin living outside
them and challenges facing the Diaspora not to actively the continent, irrespective of their citizenship and nationality
participate in the development efforts of the country. This and who are willing to contribute to the development of the
study does not delve into the whole analysis of the Diaspora continent and the building of African Union”(Ionescu, 2007:
related issue and their role in the country’s politics. Issue like 15). This broad definition calls attention to a number of
their involvement in influencing foreign policy orientation of significant policy points: a continental instead of national
the country and their contribution in fostering Ethiopian belonging (i.e. a non- national Diaspora definition) and a
democracy is beyond the scope of this study. highly symbolic and political facet. Voluntary belonging to
the African Diaspora is intrinsically related to the willingness
 Humanities and Social Sciences 2017; 5(1): 14-25 17

to contribute to the development and support for African Stage, Take-off Stage, Drive to Maturity, Stage of High Mass
Union. This definition, therefore, relates voluntary Consumption (ibid).
contributions belonging to a collective entity. Walter Rodney (1972), a prominent African scholar,
Generally, there is no single accepted definition of the defined development as “a many-sided process implying for
term; “Diaspora”, neither is there a legal recognition of the the individual skills and capacity, greater freedom,
term, which consequently has given rise to many different creativity, self discipline, responsibility and material well-
meanings and interpretations. For the purpose of this study, a being. The process involves the development of tools, skills
broad definition of “Diasporas” is proposed as “a member of and the mobilization of required resources for development
ethnic and national communities, who have left, but maintain purpose.”
links with their home lands and willing to contribute to the To V. I. Lenin (1968) development is a progressive
development of their homeland.” movement, ascension from lower to higher stages and from
On the other hand, transnationalism is the process whereby simple to complex situations- the simple/lower stage(s) refers
people establish and maintain socio-cultural connections to the state of nature in which society finds itself in the
across geopolitical borders (IOM, 2008). It centered on process of social evolution.
exchanges, connections and practices across borders, thus The World Bank in World Development Report (1991)
transcending the national space as the primary reference believes that the concept of development has economic,
point for activities and identities. social and political attributes such as sustainable increase in
Other scholars like (Smith, 2006 as cited in Levitt and living standards including consumption, education, health
Jaworsky, 2007) defined transnationalism as a practices and and environmental protection, equality of opportunity and
relationships that link migrants and their children with the liberties and political freedom.
home country, where such practices have significant This study, therefore, uses a more comprehensive
meaning and are regularly observed. Transnationalism definition of development produced by Todaro and Smith
creates a greater degree of connection between individuals, (2014:18) which conceived development as “a
communities, and societies across borders bringing about multidimensional process involving major changes in social
changes in the social, cultural, economic and political structures, popular attitudes, and national institutions, as well
landscapes of societies of origin and destination (IOM, as the acceleration of economic growth, the reduction of
2010). Sometimes, diaspora and transnationalism can be inequality, and the eradication of poverty.” In more practical
considered the same and used interchangeably. However, terms, economic development is a condition by which
the two concepts reflect different intellectual genealogies individuals and society at large enjoy a good quality of life,
having some similarities and differences as clearly are free, have opportunities for upward mobility and are able
mentioned by Thomas Faist (2010). For Faist, both to improve their material circumstances. Three areas that
Diaspora and transnationalism deal with homeland ties and enable these conditions are health, education and material
the incorporation of persons living ‘abroad’ into the regions asset accumulation.
of destination. However, Diaspora approaches usually focus
on the relationship between homelands, dispersed people 2.2. The Dimensions of Diasporas’ Links to Development
and destination countries (2010:20). He further stated that Little theoretical analysis exists regarding the link between
as the Diaspora relates most often to religious, ethnic and Diasporas and development. It can be argued that this link
national groups and communities, while transnational lies at a point where the economic activities of migrants
approaches connect to all sorts of social formations. Thus, intersect in a way that transforms the material base of
transnationalism is broader than Diaspora. A more clear migrants, their relatives, and their societies. This
elaboration of the difference between the two terms was transformation takes place along various dimensional spaces.
given by Cheran (2003) as ‘Diasporas are the result of Robinson (2002) speaks of the relationship between
forced migration whereas transnational communities are the Diasporas and development as being three-pronged: a)
result of voluntary migration’. However, to avoid development in the diaspora, b) development through the
confusions the longstanding term ‘Diaspora’ is used in the diaspora, and c) development by the diaspora. The first refers
entire paper. to the use of networks in the host country, which includes the
Like the Diaspora and transnationalism, development is a formation of ethnic businesses, cultural ties, and social
complex and highly contested concept since it lacks a mobilization. Development through the diaspora refers to
generally accepted definition due to the multidimensional “how diasporic communities utilize their diffused global
nature and multidisciplinary approach to it. That is why it has connections beyond the locality to facilitate economic and
attracted several of definitions from various scholars of social well being” (ibid). The third applies to the
different orientations. Here are some of their definitions: ramifications of “the flows of ideas, money, and political
According to Rostow (1960: 8), development is the support to the migrant’s home country” (ibid). Understanding
progressive movement from traditional society to the stage of the Diaspora’s link to development help us to know how the
high mass consumption of goods and services. For any Diaspora could contribute to the economic development and
human society that wishes to develop, it must go through five poverty reduction.
stages of development i.e. Traditional Stage, Transitional
18 Tariku Raga Lencho: The Potential Contribution of Ethiopian Diaspora in Development: The Presenting Absent Partners

2.3. Major Theories on Migration historical and static (Kurekova, 2011:7). It generally ignores
the effects of home and host countries and leaves out the
After the Second World War, there was a scholarly debate importance of politics and policies, which are only
on the issue of international skilled labor migration focusing considered as distortion factors or additional migration costs.
on the economic implications for home and host countries. In Hence, Neo-classical migration theory tends to view migrants
other words, the impact of migration on development in as atomistic, utility maximizing individuals, and tends to
migrant sending communities and countries has been the disregard other migration motives as well as migrants’
subject of continuous and sometimes heated debate between belonging to social groups such as households, families and
opposing (often contradictory) views of the “migration communities.
optimists” and “migration pessimists” (de Haas, 2010:3). For According to dominant views of the 1950s and 1960s in
the purpose of this study, I want to focus on two opposing developmentalist theory, return migrants were seen as
perspectives of neo-classical and developmentalist theory, important agents of change and innovation. Migrants were
and the world systems theory or the historical-structuralist expected to bring back not only money, but also new ideas,
theory. knowledge, and entrepreneurial attitudes (Tewabech, 2011).
2.3.1. The Neo-Classical and Developmentalist In this way, migrants were, thus, expected to play positive
Perspectives: The Optimistic Views role in development and contribute to the accelerated spatial
Neo-classical migration theory considers migration as a diffusion of modernization in developing countries. Also
form of optimal allocation of production factors to the benefit remittances have been given an important role in stimulating
of both sending and receiving countries. It recognizes the economic growth. De Haas (2010) explains this optimism
presence of both winners and losers on migrant receiving and (expectations) as follows:
sending countries, but argues that migration from low to high Such optimistic views reflected ‘developmentalist’ views
wage countries ensures a more efficient use of labor and which dominated development theory in the first two decades
narrows inter-country wage disparities (de Haas, 2007:11). following the Second World War. Rooted in evolutionary
According to this theory, migration is driven by geographic views on development, freshly decolonialized countries were
differences in labor supply and demand and the resulting expected to quickly follow the same path of modernization,
differentials in wages between labor-rich versus capital-rich industrialization, and rapid economic growth as many
countries (Kurekova, 2011:5). The central argument of the Western countries had gone through. Assuming that capital
neoclassical approach thus concentrates on wages. constraints formed the major problem these countries faced,
The theory emphasizes that the process is not the developmentalist model postulated that through large-
disadvantageous for developing countries, but it could even scale capital transfer (e.g., through loans, aid and
lower unemployment, raising wages, boost economic growth remittances) poor countries would be able to jump on the
and house hold welfare in developing countries through great bandwagon of rapid economic development and
access to resources like remittances and skills of potential industrialization. Internal and international labor migration
returnees. The theory opposes the concept of brain drain and was seen as integral parts of this process contributing to a
replaces it with “brain overflow” (Gosh and Gosh, 1982: 15). more optimal spatial allocation of production factors and,
For them, migration is a process of free movement of labour hence, better aggregate outcomes (de Haas, 2010: 5).
from low to high wage countries and “brain overflow” is the 2.3.2. The Historical-Structuralist Theory: The Pessimistic
result of over production of brain and inability to be absorbed Views
by the system (de Haas, 2007). A radically different interpretation of migration was
At the micro-level, neo-classical migration theory views provided as of the early 1960s by the historical structural
migrants as individual, rational actors, who decide to move paradigm on development, which has its intellectual roots in
on the basis of a cost-benefit calculation. Assuming free Marxist political economy and in world systems theory
choice and full access to information, they are expected to go (Castles and Miller, 2003 as cited in de Haas, 2007: 15).
where they can be the most productive, that is, are able to Historical-structuralism has dominated migration research in
earn the highest wages. This capacity obviously depends on the 1970s and the 1980s. It considers migration as a natural
the specific skills a person possesses and the specific outgrowth of disruptions and dislocations that are intrinsic to
structure of labour markets (ibid). the process of capitalist accumulation. Optimistic views were
At the macro-level, neo-classical theory explains migration increasingly challenged under the influence of a paradigm
by geographical differences in the supply and demand of shift in social and development theory towards historical-
labour. The resulting differentials in wages cause workers to structuralist views. Of course, these new views turned the
move from low-wage, labour-surplus regions to high-wage, argument of neo-classical and developmentalist approaches
labour-scarce regions ((Kurekova, 2011). completely upside down: instead of decreasing, migration
The neo-classical theory of migration has been subject to was now seen as increasing spatial (interregional and
conceptual critique and rich empirical testing. While international) disparities in development levels (Wallerstein,
rigorous, it has been viewed as mechanically reducing 1979).
migration determinants, ignoring market imperfections, The Historical-Structuralist paradigm sees migration as a
homogenizing migrants and migrant societies and being a
 Humanities and Social Sciences 2017; 5(1): 14-25 19

‘flight from misery’ caused by global capitalist expansion, potential contributions of the Ethiopian Diaspora once
which is inherently unable to resolve the structural conditions arrived in host country. How then, Diaspora once they
that cause migration (de Haas, 2010:7). On the contrary, arrived in specific host country staying there for a long
migration is seen as aggravating problems of period of time accumulating wealth and knowledge, can
underdevelopment. Hence, migration undermines regional share their resources and knowledge to their country of
and local economies by depriving communities of their origin, Ethiopia. The theories stated above said nothing about
valuable labor force, increasing dependence on core countries conflict and politics driven migrants. Said in other words,
(of which remittances are but one manifestation) and most contemporary migration in developing countries is
stimulating subsequent out-migration. caused by lack of inclusive and participatory political system.
Historical-structuralists postulate that economic and A political system which was/is often channeled through one
political power is unequally distributed among developed and state sanctioned party with opposition groups banned. Such
underdeveloped countries, that people have unequal access to system leaves no room for differences of ideas and opinion
resources, and that capitalist expansion has the tendency to and restricts the participation of oppositions to political
reinforce these inequalities. Instead of modernizing and system may leads to serious human right violations, which
gradually progressing towards economic development, would again opens the door for the citizens to migrate or
underdeveloped countries are trapped by their disadvantaged leave their country. Such modus operandi has also been the
position within the global geopolitical structure (Kurekova, feature of modern Ethiopian polity. Thus, the majority of the
2011: 8). They view migration as one of the manifestations of Ethiopian Diasporas are those who were dissatisfied with the
capitalist penetration and the increasingly unequal terms of political systems of the last two Ethiopian regimes of Derg
trade between developed and underdeveloped countries. and EPRDF and preferred to migrate leaving their families
Historical structuralists have criticized neo-classical and relatives back home. To this end, they left the country
migration theory, stating that individuals have no a free fearing persecution and imprisonment (HRW, 2009).
choice since they are fundamentally constrained by structural Therefore, Despite the fact that all these theories of
forces (de Haas, 2010:16). Rather than a free choice, people migrations have their own weaknesses and strengths, this
are forced to move because traditional economic structures study takes up the developmentalist (the optimists) outlook
have been undermined as a result of their incorporation into and recognizes the positive impact of the Diaspora on home
the global capitalist system (ibid). Historical structuralists and host countries. The arguments of the developmentalist
have also been criticized for being too deterministic and rigid theory best fit for this study since it considers return
in their thinking in viewing individuals as victims or “pawns” migrants (Diasporas) were seen as important agents of
that passively adapt to macro-forces, thereby largely ruling change and innovation. It was expected that migrants not
out individual agency (ibid). only bring back money, but also new ideas, knowledge, and
World systems theory, on the other hand, is one variant of entrepreneurial attitudes. In this way, migrants (Diasporas)
the historical-structuralists theory which emerged in the wake were expected to play positive role in development and
of dependency theory and constructed a more complete and contribute to the accelerated spatial diffusion of
sophisticated historical analysis of the development and modernization in developing countries. Also remittances have
expansion of the global capitalist system from the sixteenth been attributed as important role in stimulating economic
century on (Wallerstein, 1979: 27). Building on Wallerstein, growth. Therefore, the emphasis of this study is on the
the world system theory relates the determinants of migration adoption of possible strategy options by which the country
to structural change in world markets and views migration as benefits from the process of migration by formulating
a function of globalization (Kurekova, 2011:8), the increased conducive policies so as to effectively mobilize, network and
interdependence of economies and the emergence of new engage the diaspora in the country’s development endeavors
forms of production. The expansion of both export by “reversing brain drain to brain gain”, the approach which
manufacturing and agriculture linked strongly to foreign is emphasized by victor Oduba (2003:3).
direct investment flows from advanced economies to semi-
developed or emerging economies has led to the disruption of 3. Ethiopian Diaspora: An Over View
traditional work structures and mobilized new groups of
population into regional as well as long distance migration There is no official record of the size of the Ethiopian
(ibid: 8-9). Capital mobility is, hence a crucial factor for the diasporas, though commonly cited government estimation
world system theorists. The theory presents capital and labor and figures indicates that between one and two million
mobility as interconnected and the two sides of the same coin Ethiopians are living abroad with large populations in the
(ibid). Middle East, North America and Europe (Kuschminder,
These two theories of migration wether the “optimists or 2010:7).)In the broadest sense of Diaspora, as a dispersion of
“pessimists” pay attention to the determinants, causes of members of a population from their homeland to a number of
migration, the factors which leads individuals to leave their host countries, the Ethiopian Diaspora is said to have its
country of origin and the potential impacts of migration on origin in the Middle Eastern countries particularly the during
home and host countries. However, the aim of this study is Red Sea and India Ocean slave trade. Although the Ethiopian
not to investigate those things, rather its aim is to identify the Diaspora in the Indian Ocean is not solely the result of slave
20 Tariku Raga Lencho: The Potential Contribution of Ethiopian Diaspora in Development: The Presenting Absent Partners

trade, it was argued that the slave trade was the dominant 1990s more than 50,000 Ethiopians also reached the United
factor that removed Ethiopians from the country that period States through the Diversity Visa lottery (DV) program
in history (Pankhurst and et al 2003:7-18). (Easter and et al 2010 at www. [Link]
The modern Ethiopian Diaspora differs from its ancient accessed 27/08/2016).
and medieval predecessors in virtually every respect when The Ethiopian Diasporas can and should be important
judged according to the criteria set by Butler: circumstance partners in the country’s development process. They are
of departure, relation with home land, relations with host numerous and many of them are highly skilled. There are
country and interrelationship with other Diaspora many possible advantages that could be gained by engaging
communities (2001). Thus, the modern Ethiopian Diaspora the Diasporas in the country’s development. One of this
seems differ markedly from its predecessors on all of the advantages entails financial supports mainly remittance
variables suggested by Butler. However, one should not flows.
consider the past thirty five years as one homogenous period. Remittance is becoming source of huge capital transfer
If one wants to see the difference in the three consecutive from the developed to developing countries. Its size is
regimes in the past forty years (since Ethiopian Revolution of surpassing twice as that of Official Development Assistance
1974), each of the variables Butler pointed out must also be and even comparable with the foreign exchange gains of
viewed historically. The relationship, and even the reasons some developing countries from their major export items.
for dispersal, may change over time. The reasons Ethiopians Remittance by Diaspora can be tapped better for the
chose to leave the country have varied over the period from development of a country through organized banking systems
the 1974 Ethiopian Revolution to the present. The Diaspora to ease transfer and by encouraging effective legal transfers
“consciousness” develops at different rates under different (Kassahun and Birhanu et al. 2004:8).
circumstances and patterns of resettlement and integration According to the annual report of the National Bank of
(Pankhurst and et al 2003:7-10). Their relationships with Ethiopia (NBE), excluding other areas of contribution,
both Ethiopia and host countries have also evolved over time official remittance regained amounted over 387 million
varying not only from place to place, but also within a single USD during fiscal year (2009/10) and the figure is
location over the years (Solomon, 2008:08). increasing yearly (NBE, 2011). This amount excludes the
Prior to 1974 and during the Ethiopian Revolution which informal remittance transfer which a large portion of
over threw Haile Sillassie I, only a handful of Ethiopians Diaspora uses. Most of money flow through unofficial
had lived outside Ethiopia. In the wake of the over throw of channel to avoid exchange rate restrictions, high taxes and
the emperor, however, many of those studying in the United tariffs and bureaucratic requirements. Remittances have a
States were “forced” to remain abroad. They were a highly direct impact on poverty reductions since they flow directly
homogeneous group, drawn from the then monarchical to poor households and are used for basic needs such as
families. Most had attended Ethiopia’s elite schools. They food, shelter, education and health care and startup capital
were sent abroad with the expectation that they would form for new businesses (New land, 2004:2). The common
the country’s next generation of educated leaders in all argument that remittances are not used for “productive”
fields and would shape the country’s future (Abye, investments misses the point that poor households
2004:141). rationally give priority to these basic needs, which represent
As many authors have pointed out, this first generation of an investment in human capital as well as basic
supposedly Ethiopian immigrants viewed themselves as consumption. Spending on basic needs also has a multiplier
“exiles”, displaced from their country by circumstances. effect in the community.
They expected to return when “normal” conditions were Diaspora is also a source of investment. The Diaspora, if
restored. Many didn’t accept American citizenship even recognized as an asset could invest huge capital in the home
when it was offered, because they viewed themselves as country. While these individuals live abroad for a long
Ethiopian citizens temporarily forced to live outside their period of time they have a potential to accumulate capital to
country (Solomon, 2008:141-142). In contrast to the first be invested returning back to their home country. Attractive
generation of “exiles,” the second wave of migration was far government policies that encourage the Diaspora to invest
more heterogeneous in its composition. While some are of course, the pre-requisite. Bureaucratic bottlenecks
represented urban elites who had served in the imperial and long procedures are important factors to be considered
regime, other was peasants with limited education of few to facilitate investment (Shinn, 2002:14). According to the
marketable skills (Getachew and Maigenet, 1991). 2009/10 report of Ethiopian Investment Agency (EIA),
With the down fall of the Derg regime in 1991, a new more than 4.12 billion birr has been invested in various
wave of Ethiopian refugees was generated. The third wave projects by Ethiopians in the Diaspora in the last six years
of Ethiopian Diaspora can be characterized by the post 1991 (EIA, 2011). The Ministry of Foreign Affairs (MoFA) also
flows, that continuous to these days. Border conflict reported that 640 Ethiopians Diasporas have been engaged
between Ethiopia and Eritrea, internal political repression in Agriculture, construction, health, education and
by EPRDF government added to the crisis in the region, development activities in the last six years (MoFA,2011).
have kept many expatriates away from the country while This is a good start, but quite small number of Diaspora
encouraging others to emigrate. In addition, since the mid investing in the country. They have been invested more than
 Humanities and Social Sciences 2017; 5(1): 14-25 21

this if the issue of the Diaspora were handled properly 4.1. Proclamations No-270/2002- Provision of
through positive national policy formulation is Identification Card for Foreign Nationals of Ethiopian
accompanied like the Indian and Chinese government did. Origin
Although the Ethiopian Diaspora is divided because of the
traumatic experiences many of its member have under gone According to this proclamation, an individuals who even
and unable to come together to form a united front for acquired other country’s citizenship, his /her origin being
constructive development purposes, they are among the Ethiopia, has a right to gain special Identification Card,
most successful of the African Diasporas in Western which gives special privileges for foreign nationals of
countries (Lyons, 2009). Ethiopian origin. The holder of the Identification Card is
Moreover, Diaspora can transfer of knowledge and entitled to privileges and rights like entering the country
technology to home country. For transfer of knowledge and without entry visa, to live without residence permit, the right
technology, government initiative to form linkages with to work in Ethiopia without a work permit and be considered
groups of Diaspora working in academic and research as domestic investor and invest in areas allowed to Ethiopian
institutes and scientific fields are crucial. Individuals will investors without discrimination (Federal Negarit Gazeta,
most likely agree to use their sabbatical leaves and spare No. 270/2002:5). The service charge for the Identification
times to help their country without necessary returning home card is 500 USD and 200 USD to renew on the bases of two
or in short term visits. This is a double blessing to the years interval. This is criticized as expensive and not
country since they best know the country’s situation and their considering the long term gains from the Diaspora.
relative cooperation to work in low pays than foreign 4.2. Proclamation No. 378/2003, the New Citizen Ship Law
expertise. But, little or no participation of Ethiopian Diaspora
in technology and knowledge transfer. The first citizenship law of Ethiopia, which was issued in
Furthermore, Promotion, public relation and Lobby work 1930, existed for the last eight decades without amendment.
is another potential contribution from the Diaspora. Citizens The changing socio political conditions were not considered
in overseas can act as ‘ambassadors’ by forming constituency for about 80 years (Derara, 2003:23). The New Proclamation
of community in different occasions. For instance, they can No.378/2003 seems a timely response to some important
promote culture, tourist sites, cooperate investment schemes, changes in the country. For instance, to be admitted as the
promotes the positive images of their country, and act on Ethiopian citizen according to the 1930 citizenship law, the
public diplomacy as lobby groups to influence other applicant was expected to speak and read Amharic. But, in
government (institutions) for national advantage(Seyoum, the current proclamation that was changed. So long as the
2000). The opposite is true of Ethiopian Diaspora. For individual speaks and writes the language of any nation and
example, after 2005 election, they become engaged in new nationality of Ethiopia, he/she can be considered Ethiopian
ways in homeland politics through fundraising, lobbying and (Federal Negarit Gazeta, No. 378/2003:4). But, the basic
engaging in political debates. Particularly the Diaspora essence of the two proclamations does not change. Both do
moved away from support for electoral politics towards not allow dual citizenship and hence an immediate
lobbying for International Financial Institutions of IMF and withdrawal is taken when acquiring another citizenship.
World Bank in order to stop financial aid and loans to
Ethiopia which might affect the countries development effort. 4.3. Custom Regulation of the Ministry of Revenue for
Thus, they can change the image of the country negatively by Returnees
exposing/magnifying the weak side of the government on Since November, 2001, the Ministry of Revenue issued
power to the developed world which reduces the country’s regulations aimed at giving duty and tax free entitlements for
representation at world stage. Ethiopians returning to their country permanently. Its basic
rational is to ease and encourage the Diaspora to return to
4. Overview of Initiatives of the Ethiopia. The positive aspects of the regulation are its non-
discrimination with regard to means of migration out of the
Ethiopian Government to Attract and country, legally or illegally (Solomon, 2008). The regulation
Use the Potential of Diaspora takes into consideration the fact of illegal migration specially
fearing political persecution. But, in 2006, (one year after the
Though short of detailed description, EPRDF has its own controversial elections of 2005), the provision was lifted as
strategies towards the Ethiopian Diaspora. Until the 2005 the government suspected that vehicles were being singed
elections, EPRDF does not take the diaspora as enemy of the over to third parties without paying duty which violated the
state. Even though there was a frosty relation between the law.
Diaspora and the EPRDF, the government has taken actions
to encourage them to return home and take part in the socio- 4.4. Provision of Residential Houses for the Diaspora
economic development endeavors that the country has
embarked on. Because of lack of access to the official Residential house provision is a crucial question raised by
Ethiopian Diaspora policy, I am forced to use the following almost all expatriates planning or intending to return.
declarations and laws enacted by the EPRDF government. According to Proclamation No. 270/2002, the government of
22 Tariku Raga Lencho: The Potential Contribution of Ethiopian Diaspora in Development: The Presenting Absent Partners

Ethiopia has granted the right to construct a house in any part 5. Factors Hindering the Engagement of
of the country for the holders of the Identification Card and
persons of Ethiopian origin. The first offer granted was Ethiopian Diasporas in the
175m2 of land free and beyond that with lease payments. Development of the Country
However, the offer of 175m2 of land is reduced to 50m2 lands
currently. In the first grant, it was possible for an individual Even though Ethiopia is making a coordinated effort to
to build villas but currently it is decided to be a condominium attract its Diasporas to participate in the development effort
construction, that is, group buildings with shared walls and of the country, there are multi-faceted problems which the
premises. Making land available for the Diaspora is a wise Diasporas argue hinders their participation such as lack of
decision as it provides a possible returning of the Diaspora. conducive political and economic environment including
But the irregularities seen in offer are not encouraging. implementation capacity, inefficient government
bureaucracies, weak institutions and corruption (Seyoum,
4.5. Diaspora Bond 2000). During the discussion with the Diasporas at Sheraton
Addis on January 21, 2011 for the realization of the
This was initiated so as to raise investment capital for the governments five years Growth and Transformation Plan
Ethiopian Electric Power Corporation (EEPCo) and in away (GTP), some of the participants stated that even though they
to accustom the diaspora of the opportunities they have. The are ready to participate for the success of the GTP, lack of
minimum amount is 500 USD and the interest rates are 4%, justice and good governance at the grass roots (Kebele and
4.5% and 5% for five, seven and ten year’s maturity (MoFA, Woreda) levels they have witnessed in the country so far, will
2011). The bonds are tax free in Ethiopia and the interest is be a major obstacles ([Link])
paid annually. The bond can also be used as collateral for accessed on June 6, 2011 at 5:30 pm. Without justice, good
borrowing from local banks in local currency. This is a governance and competent civil servants at Kebele and
rational policy to engage the Diaspora in the development Woreda level, whatever attractive plans the government
activities. However, very few members of Ethiopian designs, it does not work.
Diaspora become a part of this bond because of the Between 2002 and 2006, the Ethiopian government had
uncompromising political out looks of the majority of the encouraged the Diasporas to engage in economic
Diaspora. development by allowing easy movement of capital, goods
4.6. Institutions Responsible for Diaspora Engagement and persons into the country and offering the expatriates
economic incentives to return or invest in the country.
The existence or absence of institutions to address an issue However, in 2006 most of these special privileges were
shows the emphasis given to it. Institutional management suspended. The suspension of these special privileges created
with efficient and effective professionals is a crucial for disappointment among the Diasporas (Chacko and Marie,
successful achievement of goals. Any plan or objective to 2009:12).
work with Diaspora definitely needs a body to take care of it In addition, some of the Diasporas (particularly Amhara
(Joseph, 2004). elites) opposed and rejected the EPRDF’s plan to structure
Ethiopia, however, does not have a specific ministry that is Ethiopia on the basis of ethnically defined regions. They
responsible for Diaspora engagement [as in the case of argued that EPRDF’s plan to build Ethiopia on ethnically
Ghana, Nigeria and India] that is charged with multiple based regions (ethnic federalism) prepares the country for
objectives but has several departments [in different disintegration by creating ethnic cleansing among ethnic
ministries] working on different aspects of Diaspora groups of the country (Lyons, 2009). As a result, the EPRDF
engagement (Kuschminder and Siegel, 2010:11). At the government faced opposition from the leading members of
national level, the Ethiopian government has three different the Amhara elites from the very beginning. On the other, the
bodies dealing with Diaspora. The General Directorate for concern of Oromo Diaspora was/is not with the government’s
Ethiopian Expatriates (Ministry of Foreign Affairs), The plan of structuring the country along ethnic lines; rather the
Ethiopian Diaspora Coordinating Office (Ministry of nations and nationalities right to self determination enshrined
Capacity Building) and the Diaspora Desk in the Addis in constitution should be practically put into effect. It is
Ababa City Government Investment Authority. At regional obvious that the issue of self-determination is highly
level, there are branches of Diaspora coordinating offices that contested issue in the current Ethiopian politics and the
also engaged directly with the Diaspora abroad. Finally, the Oromo diaspora believe that the position of Oromo people in
Ethiopian Investment Agency and the Development Bank of the Ethiopian state is not at par with its resource and
Ethiopia are financial institutions under the Ethiopian contributions. Thus, the Oromo people is not benefitting from
National Bank that are involved in Diaspora engagement. its resource rather the ruling class are exploiting it and
This institutions, however, lacks competent man power for therefore, Ethiopian federalism is not a federalism based on
rendering effective delivery of services for their customers. mutual benefit and equality, but in which one benefitted and
One can easily observe bureaucratic difficulties and the others exploited. Thus, the hierarchical relationship between
prevalence of corruption as another challenge in these regions/ethnic groups/ should be solved first to be a
institutions. development partners in the country (Human Rights Watch,
 Humanities and Social Sciences 2017; 5(1): 14-25 23

2009). is not engaging in the development efforts of the country as

Moreover, most of the Ethiopian Diasporas criticize the expected like Chinese and Indian diaspora, because of
new Charities and Societies Proclamation of 2009 multifaceted problems of corruptions, bureaucratic
(Proclamation No.652/2009) and Anti-Terrorism Law bottlenecks, lack of good governance, and absence of
arguing that EPRDF uses these laws to suppress or eliminate participatory and inclusive political culture in the country’s
Ethiopian human rights NGOs and the opposition groups politics. Therefore, Ethiopian Diaspora has not been
respectively. The charities and Societies Proclamation effectively mobilized, networked and engaged in the
restricts organizations that receive more than 10% of funding country’s development endeavors.
from foreign sources from working in the areas of human and B. Recommendations
democratic rights, conflict resolution, promotion of children’s The number and potential of the Ethiopian Diasporas are
and disabled rights, and promotion of gender and religious incredible. This potential is become useful to those countries
equality. According to Amnesty International (2012), the where they reside. It is also valuable for the country to come
Anti-terrorism law could “restrict freedom of expression, back home. Considering their number and potential, the
peaceful assembly, and the right to fair trial, with serious Ethiopian Diasporas can do much more. One can even say
implications in the run up to Ethiopia’s 2010 election.” Of that they have ethical and moral responsibility to contribute
course, as of most observers noted, the conditions of human to the socio-economic development of their country despite
rights in the country are deteriorating from time to time since differences of political opinion.
that proclamation was declared. To this end, Human Rights Many countries Diasporas have done much better than the
Watch (2013) also warned that one of this law’s more Ethiopian Diasporas. Important lessons from, Nigerian,
alarming features is how broadly and ambiguously terrorism Ghanian, Indians and Chinese Diaspora are important in this
is defined. The Diaspora sees these two laws as an “allergic” regard. Although, it may not be bad to be politicized if it is
to the consolidation of immature Ethiopian democracy by for a common cause, it is also much fruitful to think beyond
weakening opposition parties and the civil societies working politics and involved in development endeavors of the
in the areas of human and democratic rights. The reason was country.
that they already accustomed to the democratic values of the The need for consensus building is the other necessary
Western countries since lived there for a long period of time. issues that the government and opposition leaders should feel
Therefore, many of the Ethiopian Diasporas are not happy responsible to address their political motives. Otherwise,
with human right conditions in the country during the last opposition of destructive nature could hinder the
two decades and they argued that EPRDF government is development of the country. These create a sense of doubt on
formulating suppressive laws to systematically eliminate the political system for the Diasporas living abroad. They may
opposition and opposition leaders. not be motivated to invest their knowledge, capital and skills
The issue of freedom of press and the imprisonment and in hostile political environment. On the parts of the
exile of journalists, bloggers are also some of the issues that Diasporas, there is a need to consider the general condition of
the Ethiopian Diasporas repeatedly criticize. Because of these the country and shape their expectations accordingly.
and other problems, Ethiopian Diasporas were not fully Committed individuals can win in helping their country in
participating in the development effort of the country. any condition, not only on the steps taken by the government.
In the realm of political participation and membership,
6. Conclusion and Recommendation there are many ways to facilitate positive and productive
diaspora engagement by incumbent government: In the first
A. Conclusions place, the questions of citizenship and the possibility of
Diasporas can influence political processes and events in a holding dual or multiple citizenship should be considered. In
significant ways. They also have a potential to influence order to enhance the political participations of the Diaspora,
economies and the process of wealth creation in home and the country may consider strengthening political ties to
host countries to much greater degree. In particular, migrant populations, for instance, through out-of-country
Ethiopian Diasporas since they have lived for a long period voting. This may perhaps strengthen their sense of
of time in developed countries grasping modern education of belongingness to their country of Origin, Ethiopia.
science and technology; they are a powerful catalyst for Lastly, the government should also formulate a clear cut
innovation, economic growth and poverty reduction. They Diaspora policy and strategy which is comprehensive
are the major sources of Foreign Direct Investment (FDI) and enough to accommodate all the Diasporas in order to
market development including out sourcing of production, enhance their participation in the development efforts of the
technology transfer, philanthropy, tourism, political country rather than temporarily flying to Europe and
contributions and more intangible flows of knowledge, new America for begging their dollar and knowledge on ad hoc
attitudes and cultural influence. basis. More than any other, this needs a commitment of the
The Ethiopian Diaspora, including its second and third government on power, which is a sin quo non for the
generation, is among the country’s critical intellectual genuine return and involvement of the Diaspora in their
resource whose maximum mobilization and engagement is country’s development.
indispensible. However, the majority of Ethiopian Diaspora
24 Tariku Raga Lencho: The Potential Contribution of Ethiopian Diaspora in Development: The Presenting Absent Partners

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