Diaspora as The Instrument of Humane Capital

Abstract

By means of the free movements of production factors in the world economy, countries can easily reach the production factors which their economies lack. Having aroused as an additional factor besides the production factors especially in today’s age, and being regarded as an important production factor by many academics, information has been an important factor for increasing the growth rate of both developing and developed countries. This enables countries to develop without being dependent on their own production factors. However, developing countries have difficulties in sustaining their growth acceleration because of the problems they have in both finding qualified labor power and accessing technology and capital. For this reason, many developing countries search alternative ways for solving this problem and sustaining their growth trend.

When the countries which have reached high growth rates and sustain these rates despite the economical crises are analyzed, it can be observed that many of these countries have based their growth economies on information technologies, and benefit from their Diasporas for developing these technologies. It can easily be seen from the studies that while the countries, especially China and India, which have made important economical progresses in the last 10-15 years, they have get fundamental befits from their diasporas.

Many developing countries need humane capital as much as they do capital. While these countries benefit from foreign investors for the capital they need, they cannot find a foreign resource that can provide them with labor power necessary for humane capital. Within this respect, the countries (China, India and South Korea etc.) having Diasporas with qualified labor power, try to provide the humane capital they need from these groups. Many Asian and European countries such as China, India and Israel, have tried to meet their humane capital need by getting benefit from Diaspora members who have developed themselves at engineering, R&D and information technology areas aroused in developed countries.

The aim of this study is to show developing countries who have Diasporas in developed countries but cannot make use of this power or are unaware of it such as Turkey and Bosnia and Herzegovina that their Diasporas are alternative resources for humane capital necessary for them to sustain the reached growth trend.