Transforming Guyana, Season III, Episode XI: Diaspora Bonds: Trust, Identity & Infrastructure in Guyana’s Development Journey
Terrence R. Blackman | June 11, 2025 | Guyana Business Journal
Can diaspora bonds work for Guyana? This deceptively simple question anchored the latest episode of our Transforming Guyana webinar series, where we welcomed Dr. Aleksandr V. Gevorkyan, the Henry George Chair in Economics at St. John’s University and a leading authority on diaspora finance. Dr. Gevorkyan’s response was both enlightening and sobering, drawing from case studies spanning Israel, India, Nigeria, Armenia, and Ghana to illuminate the promise and perils of diaspora bonds as development finance tools. His central thesis was unambiguous: diaspora bonds transcend mere financial instruments—they represent contracts built on trust, identity, and infrastructure.
Many governments mistakenly view diaspora bonds as a straightforward mechanism to convert remittance flows into national development capital. This fundamental misunderstanding has doomed numerous initiatives from the outset. Unlike remittances, which flow through personal and familial channels, diaspora bonds are sovereign debt instruments that demand rigorous legal frameworks, particularly in major markets like the United States. They require transparent governance structures, clear articulation of purpose, and demonstrated financial credibility.
Dr. Gevorkyan identified three essential pillars for successful diaspora bonds. First, identity requires genuine emotional and cultural connections between diaspora communities and their homeland that must be actively cultivated. Second, trust operates on multiple levels within diaspora networks, between diaspora groups, and critically, between diaspora communities and the issuing government. Third, infrastructure encompasses both technical systems for bond issuance and repayment, as well as institutional frameworks for transparent governance and impact reporting.
Israel’s diaspora bond program stands as the gold standard. Launched in 1951, it has raised over $53 billion while maintaining an impeccable repayment record. These weren’t mere patriotic appeals—they were strategically designed instruments backed by government guarantees, transparent fund allocation, and sophisticated marketing campaigns. India’s approach, though structured differently, has similarly leveraged diaspora networks during periods of macroeconomic vulnerability, demonstrating how these bonds can serve as crucial financial lifelines.
The failures are equally instructive. Pakistan’s 2019 diaspora bond raised a mere $26 million, falling short of its $1 billion target. Ghana’s initiative fell dramatically short, with most so-called diaspora investors actually being domestic. These shortfalls weren’t due to a lack of patriotism or financial capacity—they reflected inadequate preparation, unclear purpose, and insufficient engagement with the diaspora.
Guyana presents compelling fundamentals: a substantial global diaspora, growing oil revenues, and favorable economic projections. Yet as Dr. Gevorkyan emphasized, strong macroeconomic indicators are necessary but insufficient conditions for diaspora bond success. Before launching any bond instrument, Guyana must first develop a comprehensive diaspora strategy that establishes a unified, non-partisan commitment to diaspora engagement, one that transcends political cycles and builds long-term credibility.
This strategy demands systematic research to understand diaspora demographics, generational differences, regional variations, and cultural nuances across major diaspora centers. Any bond instruments must be designed with specific, tangible objectives—whether education infrastructure, renewable energy projects, or healthcare systems—that align with the values and priorities of the diaspora. Equally important is implementing robust mechanisms for fund tracking, progress reporting, and measurable development outcomes that demonstrate genuine impact.
The conversation also addressed Guyana’s unique challenge: ethnic segmentation within diaspora communities across New York, Toronto, and London. Any successful strategy must be culturally sensitive, politically inclusive, and capable of bridging historical divisions that have long characterized Guyanese society both at home and abroad.
Diaspora bonds are not financial magic bullets. They demand meticulous preparation, political consensus, and credible state capacity. However, when executed properly, they can transform emotional attachment into developmental capital. As Dr. Gevorkyan reminded us, “A diaspora bond is not just a loan. It is a promise.” That promise encompasses not only financial returns but also genuine development impact, transparent governance, and inclusive national progress.
For Guyana to harness the potential of its diaspora, diaspora bonds must form part of a broader, systematic engagement strategy. The technical aspects—legal frameworks, financial structures, marketing approaches—are well understood. The harder work lies in building trust, fostering inclusion, and demonstrating the political will necessary for long-term success. This conversation marks the beginning, not the conclusion, of Guyana’s diaspora finance journey. The real work starts now—at home, in communities, and in the patient construction of relationships that can sustain both financial instruments and national development.
Watch the full webinar replay here:
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Dr. Terrence Richard Blackman
Guyana Business Journal
