In the current environment of a crisis of confidence in debt markets, many countries are encountering difficulty in obtaining private financing using traditional financial instruments. The scarcity of capital threatens to jeopardize long-term growth and employment generation in developing countries, which tend to have limited access to capital even in the best of times. Official aid alone will not be adequate to bridge nearor long-term financing gaps. Ultimately, it will be necessary to adopt innovative financing approaches to target previously untapped investors. Diaspora bonds are one such mechanism that can enable developing countries to borrow from their expatriate (diaspora) communities
