The minimum size of the Caribbean diaspora is estimated at around 3.5 million people, or more than one-fifth of the region’s population, whose annual savings amount to over 15 per cent of the region’s GDP. The Caribbean’s diaspora pool therefore represents a potential alternative source of long-term funding. Diaspora bonds are viable instruments which enable the region to borrow from its diaspora community.
For diaspora investors, these bonds offer the opportunity to help their country of origin while also providing an investment opportunity. Finally, we need to consider a regional approach to managing risks arising from financial integration in the Caribbean.