Co-authored by Katherine Fitzpatrick (People Make Places) & Dr. Martin Russell (The Diaspora Institute)

“The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday's logic.” (Peter Drucker)

Drucker’s sage advice on turbulence seems ever more timely. Places are staring down an age of volatile change driven by tanks and tariffs. Geopolitical upheaval, digital transformation, economic disruption, social unrest and other outcomes of change are bringing new dawns for places.

This is shaping a world which is becoming more protectionist, isolationist, and transactional. In this world, the organisations and leaders empowered to help places make their mark, whether it be from a branding, investment, tourism, or talent perspective, are faced with the challenge to be perpetually innovating. This can feel daunting.

However, it is also a remarkable opportunity for places to reimagine themselves and reengage the world in creative ways. The places and organisations that will succeed on the road ahead will be the ones that enhance their influence, reputation, networks and capital flows.

The assets that will equip places with the capacity to deliver on this are rare. Places have very few strategic “capitals of consistency” at their disposal in this era. They need their global friends around the world now more than ever before, and the ‘capital’ that these networks possess.

They need their diasporas.

Diaspora engagement: The impact for place development

The value propositions of diaspora engagement for places are compelling, multifaceted, and based on hard data. In 1990, 150 million people lived outside the country they were born in. Today, that figure stands at 304 million.

These figures are estimates for first-generation migrants. The global diaspora is much bigger than this, extending to include groups characterised by multiple senses of ‘belonging’, such as generational, affinity, and reverse diaspora.

Put simply, diaspora is a growing market, with deep repositories of capital for places. This has not gone unnoticed.

Over a decade ago, The Economist ran a cover on the Magic of Diasporas (exploring how such business networks were reshaping the world). A few years back, The Harvard Business Review sparked awareness on the potential of Diaspora Marketing.

Technology, of course, is the great enabler of increasing diaspora connectivity. Industry is also taking notice with a proliferation of activity to attract diaspora talent, networks, and investment. This is reshaping relationships between corporations, industries, and places.

Just a few weeks ago, the Mayor of London launched the “London to Accra Economic Growth Campaign” - positioned as a “bold series of activities aimed at strengthening economic ties between the UK and Ghana, by leveraging the two countries’ greatest shared asset, the British Ghanaian diaspora.” Diaspora capital is now a must-have for place development.

Energising diaspora capital

Cities, nations, and places are now thinking more strategically on how to position this phenomenon as a driver of their ‘place identity’. The growing importance of how places communicate this identity has driven an international boom in the disciplines of place branding and marketing.

However, the hard work only starts once the brand has been established. How do you then sell your newly honed message far and wide? How do you garner international interest in your place, for investment, talent attraction or tourism?

Diaspora engagement is providing a solution for those ‘next steps’, helping places and place-based organisations to promote their brand and begin to build bridges across the globe. Places are beginning to realise the power of their diaspora capital.

The Diaspora Institute defines diaspora capital as the resources available to places and organisations, consisting of networks, finance, ideas, attitudes, and concerns, from those with a connection or affinity to those places and organisations. It comes in three flows of networked capital – flows of people, knowledge, and finance.

National and local governments, trade and investment agencies, global corporate entities, philanthropic entities, tourism agencies, universities, and other actors driving how places are seen and shaped are now actively energising diverse forms of diaspora capital to generate impact for their places across industry and society.

To unlock the power of the diaspora, places first need to invest time in developing their diaspora data and a strategy for engagement, based on their specific priorities and regional needs, through active and intentional segmentation.

While there is huge goodwill among diaspora communities to share their knowledge and expertise, they do not always know how to offer support, and often they simply are not asked. Direct engagement and strong communication with the diaspora are key, to give them the tools to be able to support their homeplaces.

Co-ordinated campaigns that have a clear ‘ask’ and purpose allow for more impactful results. For example, in 2013, Ireland launched ‘The Gathering’, a year-long tourism initiative targeting the diaspora which delivered over 5,000 events across the country and is estimated to have delivered at least 250,000 to 275,000 additional tourists that year.

Diaspora diplomacy and reputational impact

By energising the ‘soft power’ of the diaspora to complement their official foreign policies, nations and places can utilise diaspora diplomacy as a powerful strategic tool. Places are doing this by building networks of influential individuals who can have those important sidebar conversations and informal meetings that are vital in negotiating compromises. Diasporas can become exceptional lead generators for a place, being global ambassadors that will help places to spread their message with an authentic voice. Copenhagen, for example, has built a network of influential diaspora leaders across industries advocating for its development.

Furthermore, diasporas are increasingly being recognised not simply as a source of financial investment, but also as ideally placed to support the flows of ideas and people, thereby contributing to solutions that help in the development of more attractive and sustainable places. Indiaspora is one successful example of a non-profit organisation that unites global leaders of Indian origin who are committed to inspiring their diaspora (numbering 32 million globally) to be a force for good, by providing a platform to collaborate, build community engagement, and catalyse social change.

Place development: The impact for diasporas

Diasporas stand to gain equally as much from place development. This can be emotive and economic.

Belonging: The meaning of success

“A crisis of belonging is destroying us…a sense of belonging isn’t just a by-product of success; it’s a condition for success.” (Cohen, 2023)

The world is facing a crisis of belonging. This is a complex reality for many diasporas due to their hybrid identities. An interesting trend that is emerging, based on our work with diasporas in over 50 countries, is that the deepest sense of belonging that diaspora members feel works on a hierarchy of engagement.

Whilst diaspora members are passionate about their nations, they may also be passionate about the city, region, or locality that they come from within that nation. This makes the connections between place development and diaspora engagement even more potent.

As Kim Samuel notes, “belonging is not just a connection to other people, but also to place, power, and purpose. The experience of belonging is about connectedness through community, as well as rootedness in a place, a feeling of ownership in shared outcomes, and a sense of mission with others.”

A prime example of this in action would be the recent development of the Global Cornish movement. Cornwall, a place with a strong and distinct place identity based on historical and contemporary realities, is embracing the potential of building a global network of the Cornish diaspora.

They recently launched their first ever diaspora strategy. This works to unlock diaspora capital for the development of Cornwall across academia, the arts and creative industries, export promotion, philanthropy, trade and investment, talent and youth development, along with other areas.

Access, networks, and opportunities: The tools for success

Finally, it is essential not to underestimate the importance of self-interest in diaspora engagement. For example, the recent Diaspora Invest programme in Bosnia and Herzegovina (BiH), which worked with over 30 local government entities, created tools through which the diaspora could engage with these places. They were able to mentor entrepreneurs, invest in SMEs, help situate their companies in BiH, intern in key institutions, help promote exports, and adopt other roles.

It gave access to different layers of the diaspora that had different levels of capacity and propensity to engage. The project raised tens of millions of USD in investment and created sustainable jobs in localities often ignored for such opportunities.

These engagements not only add material economic and network value for the diaspora, but provide them with deeper access, networks, and opportunities with communities of importance to them.

Togetherness through turbulence

Places and societies must find ways of building togetherness through this turbulent age. The emerging relationship between place development and diaspora engagement can help us do this. It gives the opportunity to truly build places for all. It opens an ability to truly build great societies which are “built when people plant trees in whose shade they know they shall never sit.” Diasporas are one of our great assets to build these places and societies together on so many levels. Cities, nations, and places ignore it at their peril.

We'll be continuing this conversation at City Nation Place Global to explore how cities identify, engage, and leverage their diaspora to support brand building, trade and investment, talent attraction, and visitor attraction around the world. Nina Amin, UK Country Head for Indiaspora, and Nicola Lloyd, Director of Global Cornish, will be sharing their expertise, alongside Irina Tolstousov, Deputy Director at Invest Moldova Agency. Join us in London this November 5-6 to learn more.