The African Diaspora

There was an lively debate and dialogue this week among World Bank staff. What role do the African diaspora play in the development of the African continent? Huge question, and not surprisingly myriad different positions on the subject. I will also say that there were very few non-African staff participating in the discussion, but this was a first discussion of its kind for the WB. I still don't see an issue with inviting others to at least observe the proceedings.

A range of data was presented that informed participants, particularly in regards to Sub Saharan Africa, that socio-economic challenges such as fighting HIV/AIDS and Malaria is becoming more and more difficult with record numbers of skilled workers leaving the continent. In the health care sectors there are numerous shortages of trained nurses + doctors. So, given that Africa faces the gravest health threats with records numbers of new outbreaks of HIV/AIDS, TB and Malaria what impact are labour shortages having on properly addressing these socio-economic burdens? The question on the minds of African WB staff: if all the highly trained depart for greener pastures and bigger paycheques, who is left behind to fight the good fight?

I don't propose this is an easy issue to solve. On the Mali Project I am involved in, Malian teachers that are trained in Kalabankoro community to work for our community organization Ecole Privee Youchaou, are enticed away by others who offer higher salaries (of course, it is easier to offer these high salaries if you don't spend $ on teacher training, and instead focus on recruitment!). The lure of greener pastures is not restricted to developing states, just look at Canadian doctors opting to work in the USA for a fatter paycheque. However, I wouldn't dare compare the impact of this on the Canadian healthcare system to say, a Doctor from Burkina Faso leaving to work in France!

The African diaspora feels responsible towards family and friends "back home." Many Africans have plans to go home, and it is through remittances that they send money home to prepare for their eventual return. Ideally on their return new skills + ideas are passed on, to the benefit of local African communities.

Looking at the remittance figures that are sent by migrants to their home countries, money sent through formal channels (W. Union, Commercial banks, etc.) was a record USD $276 billion in 2006. Counting formal and informal channels this number could be twice as high! Often a young person will be chosen for higher education, and every village member will provide money to support their education, with the hope they reach greener pastures and then send money home regularly.

But there are two main problems I have with remittances. The first and most obvious, is that Western-based companies are the real beneficiaries. Financial telecommunication literally costs pennies (ok, add on another 25 cents/transaction for compliance costs) and the profit margin for a company such as Western Union is astronomical! Minute expenses and huge revenues gained from super high price structures = big big profit margin!!!!

The second argument is that in the long-run, remittances are not sustainable, though I do agree remittance flows are more sustainable (right now at least) than FDI and ODA. African villages (or any community in a developing countriy for that matter) that remain dependent on remittances as their primary means to sustain livelihoods will never climb out of the 'poverty trap.' Remittances should be viewed as but one part of the overall solution. These funds must eventually be channelled towards education, health care and new infrastructure to name but a few productive investments.

That doesn't mean that governments should write policies directing or taxing remittances, these are private flows afterall! People should be allowed to spend remittances how they want, and government's must ensure the right environment is created for their better use - ie, promoting mobile phone banking so rural communities can receive remittances electronically, and not as cash which is spent immediately and in many instances, still kept under the bed mattress.

Let's look at the experience of many recent immigrants:

Skilled migrants from, say Ethiopia make their way North America, and yet they can't find a job in their chosen profession. Their credentials are either not recognized or worse, there is massive bureaucratic delay. They end up driving taxis. You know, those jobs that 99% of North Americans wouldn't touch. But they refuse to go home. The hope they clung to is now transferred to their children, who begin studies at Western elementary schools. I have nothing but admiration for recent immigrants who choose to leave, and are unceremoniously let down in their adopted homes.

The Diapspora has a fundamental role to play in African development. But how best to adopt policies in this regard? Should more funding be put into educational facilties in Africa to rival the Harvards and Oxford's of the world? If African Universities are viewed as prestigious by Africans, the allure of the Ivey league institutions diminishes. Could work. But highly skilled people will continue to be headhunted (look at Canadian Doctors) as long as the promise of a higher salary remains. It is amazing the extent to which human beings will go to, with only the faintest of hopes or at the greatest of personal risk. Indonesians piling into boats bound for Australia or Fijians working as security guards on the most dangerous roads in the World - those leaving Baghdad.

What if there were greater employment prospects? The Clinton Foundation believes the African Nursing/Doctor shortage can (partly) be addressed by offering a competitive wage to healthcare workers. Certainly makes a lot of sense and why not? Less numbers of people would leave the African continent if they were assured a competitive, timely salary. "Assuring" is the most difficult part though - donor fatigue, weak administrative capacity typically hinder any hope for program longevity. But it's a good start, and more development organizations should look at providing competitive wages to avoid mass African exodus. The Clinton Foundation has begun to experiment with salary levels to address labour shortages in several African countries, thereby reducing people's desire to chase down a VISA.