Emerging Markets and their Returning Diaspora

There was once a time when the best prospects for a talented, bright young person from a developing or emerging economy inevitably lay in the west. Most of the world’s leading universities were (and still are) to be found in the United States and Europe, while the earning potential, whether you were in a profession or even a lower-skilled area such as catering or construction, was far greater in the west than you could hope to make in your home country, even if you were highly experienced and educated. And yet the past couple of years have seen an unprecedented number of skilled workers from emerging markets returning home. ‘

In Africa, many of the continent’s economic powerhouses like Nigeria, Ghana and South Africa are now witnessing unprecedented ‘brain gains’, fuelled largely by returning diaspora keen to be a part of their countries’ success stories and economic growth. A recent survey commissioned by Reconnect Africa (an online business news portal aimed at Africans overseas) showed that a third of professionals of African origin currently working in the west see better opportunities for career progression in Africa.

Meanwhile, in Europe, the massive east-west migration spurred by the 2004 EU enlargement is now showing signs of reversing as tens (and some estimate hundreds) of thousands of expats from Poland and other Central & Eastern European countries are leaving Western Europe to return home and pursue career opportunities more in line with their qualifications and experience (many had taken jobs in the UK and Western Europe for which they were overqualified). Nevertheless, in many cases, their international experience and exposure to new languages will put them at a significant advantage when seeking employment back home.

Both the African and Eastern European examples of returning talent display a sense of optimism these people have in their countries’ futures; an optimism which will in turn – it is hoped – lead to increasing levels of foreign investor confidence.

This piece is based on a blog post I wrote for my previous employer, OCO.