Financial flows from migrants and their descendants are at the heart of the relationship between migration and development. Policy attention has focused on the largest and most visible of these flows migrants’ remittances and, to a lesser but growing extent, the direct investments that diaspora entrepreneurs make in businesses in their countries of origin. The third major category of private financial resources that originate from diasporas, capital market investments, are much less understood and examined. Capital markets are absolutely fundamental to development, as they are the institutions that mobilize savings for investment, providing the long-term funds that power wealth creation.
