Financial and Economic Perspectives of Cooperation between Ukraine and Diaspora

Abstract

The paper describes financial and economic prospects of Ukrainian cooperation with the Diaspora. The author analyses the experience of other countries and points out the following financial perspectives: a) labour migrant associations which implement projects based on sharing migrants’ capital; b) Diaspora deposits which are mostly used by Ethiopia, India, Turkey; c) Diaspora Bonds, i. e. debt instruments applied by Israel, Egypt, India; d) Diaspora mutual funds. The author emphasises that Ukrainian migrants’ remittances do not promote economic development and that the mechanism of attracting financial inflows to Ukraine from the Diaspora exists due to the World Council of Ukrainian Cooperatives. Using statistical data, the author shows that the representatives of the Ukrainian Diaspora do not promote trade with the countries of their residence, even though it has been empirically proved for other diasporas, e.g. African, Indian, etc. As a result, in the following article the critical analysis of Ukrainian political documents concerning cooperation with the Diaspora is made and the improvement proposals are formulated.