Tuesday, December 6, 2011

Spreading the World: Diaspora Networks

The advance of technology over the last few decades has led to quite a few things, both positive and negative. One specific phenomenon it has had a huge impact on is the ability of diasporas to form globally intertwined networks. These networks have had a huge influence on many facets of our culture, especially science and business. These networks can have profound positive influence on both their home and host country in terms of economic success and technological advancement. However, there are government agents and policies which act against these people. Many people throughout the US and Europe are trying to increase border security and would rather keep illegal immigrants out than educate their children. The United States educates foreign individuals in its universities then kicks them out of the country. A move some have called ‘National Suicide.’ This negative attitude toward foreigners is drawn from a low point in the cyclical economy and pressures to secure the border. However, attitudes like this can turn away a potent economic force for one’s country.

First, consider the sheer size of these networks and their endless possibilities. There are 215 million first generation migrants living around the world, around 40 percent more than there were in 1990 (Migration and Business). A disproportionate part of this number comes from those individuals hailing from China and India. More Chinese people live outside China than French people in France, while there are about 22 million Indians spread across the globe. In addition to their size, because of the new technology, they can keep in touch much easier. There is a constant flow of information and money from country to country. Unlike a country, its people do not have borders and are able to flow fluidly across country borders (assuming immigration is permitted).

There are three main reasons that these individuals are so influential on societies. First, they speed the flow of information across borders. A business man in Africa will quickly inform his uncle in China of the growing demand for a specific product. Second, these relationships foster trust, which are an integral part of business dealings. You and I may be willing to buy a product from someone who may seem dishonest as long as the product functions. However, when investing hundreds of thousands in foreign machinery, it is important to trust your supplier. That business man in China will trust his nephew in Africa and agree to a huge deal selling the products in demand. The last reason is that diasporas create connections that allow collaboration within and across ethnicities. As one Chines business man put it, “networking is not just supportive of the business strategy; networking is the business strategy” (Migration and Business). These connections allow for easier foreign direct investment since the diasporas understand the local business culture, an important and often overlooked fragment of business.

As previously mentioned, two countries that are succeeding particularly well with these diaspora networks and globalization is China and India. Indian computer scientists constantly bounce ideas off their counterparts in Silicon Valley, using a new perspective to foster innovation. China’s technology industry is dominated by ‘sea turtles’ (Chinese citizens who have lived or studied abroad and have returned) (The Magic of Diasporas). Recently, Mary Weidenbaum has determined that the economic output of Chinese overseas amounts to about $500 billion per year (India, China Diaspora). China has a much larger and older, therefore more established diaspora network, but China is now trying to bring back those overseas from sectors such as scholars and professionals. Strategies they are using, such as incentives and patriotic rhetoric could prove to be useful for India as well. Due in large part to these diaspora, China has won the race to become the world’s factory and if India stays on this track, it could soon become the world’s tech lab (India, China Diaspora).

Going forward, because of increasing technology and increasing globalization, we will most likely see an increase in diaspora networks power and ability. When international decisions are made, we must not only consider those inside a country’s mainland, but also those around the world who call that country home. The ability for a country to practice isolationism is becoming increasingly difficult. This also counters the theory of a brain drain, that when citizens go overseas to study and stay there, they are robbing your country of valuable assets. However, because of the information age, one does not have to choose between countries, and can still be valuable economically and socially even from half way across the globe. Diasporas allow for the free flow of ideas across borders. Scientists alert each other of interesting experiments going on in their labs and collaborate on new ideas. Individuals who return from abroad bring a new perspective to their field. Perhaps this will let certain countries enforce their beliefs onto others, and perhaps that is not so bad. Additionally, diasporas spread money. Migrants not only help their host country by simply producing output and consumption, but also send money back home to their families. Also, the diversity among management makes for easier entry into foreign market, creating a true global market. We are moving to an age where everything is outsourced and globalized, largely in part to these diaspora networks. In the long run they will help the world economy grow and increase everyone’s slice. They will help raise innovations by bringing the world’s best minds to a similar focus. Soon enough, the world will not act as many separate entities competing with each other for economic and social power, but as one huge platform for the exchange of ideas and wealth.

Works Cited:

“Migration and Business: Weaving the World Together.” The Economist. Nov 19, 2011.

“The World Economy: The Magic of Diaspors.” The Economist. Nov 19, 2011.

“India, China diaspora: Winning the World’s Foactory and Tech Lab Race.” The Economic Times. 20 December 2009

5 comments:

  1. In a country like the U.S., one that attracts many types of diaspora communities from all over the world(in D.C. most notably the Ethiopian, El Salvadorian, and Korean communities) do you think it is helpful to the U.S. economy for these communities to exist. It is a growing debate in D.C. for a Little Ethiopia to exist and be designated officially on D.C. maps as a neighborhood just like Chinatown, Foggy Bottom, etc. However, is it beneficial for the government to advertise and commercialize areas in which the money that is being spent on goods does not stay within U.S. soil. Interviews that I have gathered for my college writing class on Little Ethiopia had some Ethiopian immigrants estimating that they invest 1/4 of their profits in their families/cities back in Ethiopia.

    Should the D.C. encourage an influx of diaspora communities even though the money is being invested in outside countries, potentially ones that we are not allied with? What do you think the pros/cons of the situation are and do you think the benefits the U.S. gets from these communities outweigh the negatives.

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  2. Dylan,

    Would there be a way to stop people from transmitting back technological and business secrets back home?

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  3. Hey Dylan,
    This is an interesting concept. I had never thought about the business side of diaspora communities.
    Do you think that international education is making a difference in the business world. Many foreigners, especially from China and India, come to the United States for their college education where they are exposed to Western teaching styles and are taught Western views of the world. What kind of impact does this have on our Capitalist society? And do you think this could be one reason why China is losing some of its population to foreign countries?

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  4. Ryan, i do think it is good for the United States to foster these diaspora networks. As the world economy becomes more globalized, we will benefit from having a variety of cultures inside our country. I do think it is good to promote these areas within the US. While 1/4 of the profits are sent back to Ethiopia, 3/4 are still here in the US, which would not be if these people were not here. Additionally, with that money sent back to Ethiopia, they are sending good impressions of the US and confidence for more investors and diaspora to come into the US.
    Tony, I do not think it is necessarily a bad thing that ideas are being exchanged with home countries. While piracy of specific products is a problem, using counterparts in other countries to gain new perspectives on future innovations can only be good for the US in the long run since we are becoming a truly globalized world and economy. And Emma, yes, I do believe education is a major factor in this whole procedure. People who come here from China are taught our style of thinking, which is obviously an objective of the US. I believe we benefit from more people in the capitalist population because it widens the consumer base and the pool from which ideas can be formed. And yes, China is definitely loosing people to the US because of their prestigious educational institutions but I don't think China is too concerned about loosing a small portion of its population, considering its enormous size. However, if they are concerned about 'brain drain,' it is still beneficial for home countries to loose some of their citizens because of the collaboration effect between diasporas, which I mentioned before. On that point, it was stated in one of my cited sources that unless a home country looses more than about 25% of citizens to brain drain, the country still benefits from the process.

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  5. First of all, I think the US did great job attracting the people to its country. Even if some of the people were not that smart as people from "brain drain", it still a big labor addition.
    It is not a secret, that some of diasporas are pretty influantial and corrupted in the country. I read that some Americans find that relationships between immigrants and their homelands have bad influence on the American community and its foreign policy. Especially, new generation of immigrants has a very good connection to their homelands. This phenomena is called Transnationalism, Is there threat to the American nationalism, sovereinty or identity? Some scientists predict dewesternization and deamericanization in 50 years, maybe democratization and liberalization are not good things?

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