Transnational Entrepreneurs: Presentation to IDRC Unleashing Entrepreneurship Conference April 8, 2005 Carlo Dade, Senior Advisor Canadian Foundation for the Americas (FOCAL)

Transnationalism a profound shift in development Migration as the Human Face of Globalisation Hyper-migration Difference today is 1.Trade 2.Travel 3.Telecommunications 4.Transfers

Evidence of Shift Jamaica % Haiti % Guyana % Mexico % Domestic Population Diaspora Population%

Evidence of the Shift “Particularly in the case of South Asia, there is a striking disjuncture between huge migration flows and very limited economic links.” “Asian Canadians and Canada’s Foreign Policy”. Asia Pacific Foundation

Evidence of the Shift

Beyond Remittances 1.Remittances are more than money. 2.Indication of deeper, wider, more dynamic exchange within communities. 3.These exchanges and actors are crucial to effective, relevant development work. 4.Redefine communities in which we work and how we work in/with them. 5.How to respond to new reality, new demands, new possibilities, new partners.

Transnationalism a profound shift in development As a result: Transnational communities dispersed geographically but united by culture, language, economics. Resources, knowledge and ideas are shared within community at speed of modern business geography and national borders close to irrelevant. Leads to Transnational Markets, Entrepreneurs

The Response Transnational Enterprises 1.Response to new opportunities of globalization 2.Response to lower cost and greater availability of technologies of trade 3.Response to existence of multi-stranded and deep cultural, national, ethnic ties. Old and New phenomenon?

Types of Transnational Enterprise Ethnic enterprises Circuit firms Cultural enterprises Return migrant enterprises : –Also includes franchises

Importance for PSD Destination Country – Canada, US, UK Economic prospects of immigrants depend on host- country labour market AND self-employment opportunities Immigrant entrepreneurs do better economically than their waged co-ethnics (Portes and Zhou 1999; Logan, Alba, and McNulty 1994; Wilson and Martin 1982).

Importance for PSD Home Country – China, India, Philippines, Jamaica, Haiti Access to new capital Access to new (more profitable) markets –Which is larger, population of Canada or population of Mexicans in US? Access to new technologies/ideas

Importance for PSD Some sectors of economy increasingly dependent on Diaspora – home construction, DR – investment, China – services, everywhere Requires re-thinking PSD development strategies in areas of high emigration or migration and especially in these sectors.

Activities Linking Immigrants to Home Country Source: Portes, Haller and Guarnizo 2001.

US vs. Canada “Particularly in the case of South Asia, there is a striking disjuncture between huge migration flows and very limited economic links.” “Asian Canadians and Canada’s Foreign Policy”. Asia Pacific Foundation

Research Issues –US-Canada immigration and trade linkage discrepancy. –Survey transnational economic activity by immigrants in Canada. –Map ICT usage by transnational entrepreneurs. –Catalogue Diaspora projects receiving and sending countries.

Policy Issues –Rationalize domestic and foreign business support services to reflect transnational reality. –Examine aid and trade agreements to find hindrances and missed opportunities. –International cooperation.

MDGs References to Diaspora linkages in Martin- Zedillo report Problematic Too brief and general, need focused research and best practice recommendations Recommendation in Chapter 5, Bad Idea “Innovative schemes are also needed to transform financial flows from the many diasporas into long-term productive investment in their home countries.” But report hints at importance of Diaspora linkages –Discussion of PSD incomplete without this –Success of PSD programmes doubtful without this