his report has been initiated by the International Organization for Migration (IOM) – Mission in Armenia to analyze some practical opportunities for enhancing Armenia’s development

through an enhanced engagement with its diaspora. Three economic areas are of specific interest: agriculture, tourism, and science and education in the framework of economic development towards achieving Sustainable Development Goals (SDGs). Assessing the current state of diaspora engagement, this report develops a set of inclusive and forward-looking policy recommendations geared for Armenia.

Recent economic development literature and policy efforts have been focusing on exploring the role of national diasporas and diaspora engagement initiatives as novel sustainable mechanisms for economic development across less-developed economies. The abundant literature on diaspora engagement case studies offers important lessons for new policy designs, as reviewed in the present report. Aiding this research has been a rise over past three decades of a range of diaspora engagement frameworks evolving across emerging markets and advanced economies (e.g., Greece, India, Ireland, Israel, Mexico, New Zealand, Philippines, Scotland, Spain, and others).

Analysis of diaspora literature and empirical evidence suggest that while diasporas are by definition a product of human migration, not all migration often leads to a formation of an active and home-country connected diaspora. It is important to account for the multilayering of diaspora’s transnational identities over time and varieties of experience and other formative stages. This happens at both individual and group levels. Complicating rapprochement among individuals sharing similar ethnic, cultural, religious or other characteristics are the problems of mutual trust, which are also projected on relations with and expectations from the ancestral country. That in turn raises the demand for transparency and effectiveness on a state-led diaspora engagement infrastructure design. Hence, the triangular framework of identity, trust, and engagement infrastructure is argued to be at the foundation of a sustainable diaspora operational model, accounting for varying modalities in the case of Armenia’s relations with its diaspora.

Despite Armenian diaspora being historically one of the oldest and active, as well as widely spread diasporas, its full potential in relation to Armenia’s economy is yet to be fully realized. This conclusion became evident from the fact-finding mission conducted in 2022 as background research for this project. Lacking systemic framework of cooperation between Armenia and its diaspora has been one of the key hindering factors in enacting more robust diaspora engagement. This is in contrast to the abundant track-record of initiative- or individual-specific projects characterizing diaspora-Armenia engagement of the past three decades.

The analysis in this report relied on mixed methods approach. There is limited statistical data on the diaspora involvement in Armenia. The study relied on generally available data from national statistics and multilateral development agencies. Some data support came from various public and private entities based in Armenia and in the Armenian diaspora. The report offers a comprehensive review of diaspora literature and analysis of existing practices internationally and in Armenia. Much of the primary information on diaspora engagement on the ground was sourced through in person or electronic (virtual or email communications) interviews with key stakeholders from public and private sectors. The interviews offered a wide variety of perspectives, mainly confirming the thesis that Armenian diaspora’s potential is yet to be fully utilized towards country’s development. However, it is also important to understand the need for Armenia, as a nation-state, to support dispersed communities abroad through its active outreach campaigns, cultural, and more practical connections. Concerns over trust and effectiveness of engagement appeared throughout the interviews.

The proposed policy recommendations are grouped in four categories: general diaspora engagement and three sector specific outcomes – agriculture, tourism, science and education. While the general set of recommendations sets the overarching operational model, the sector-based proposals are designed to tackle specific questions in each sector. Organized in sector groups, each concrete proposed measure is linked to a corresponding SDG consistent with the development target of this study. Collectively, these proposals may have a broad positive institutional and capacity building impact for Armenia’s economy, while helping diaspora connect within the expatriate groups and linking to the Republic of Armenia, which for a large share of the Armenia diaspora is not a historical homeland.

The burden rests upon Armenia in stimulating a productive diaspora-country relationship. It is expected that a more proactive and systematic development of diaspora-linking programs across all sectors, offering a transparent and stable framework for loosely connected diaspora is an essential step forward. Expanding functions and scope of the Office of the High Commissioner for Diaspora Affairs and developing a strategic diaspora

engagement plan would be the first initiatives towards creating more comprehensive systematic relationship. The proposed policy options should be viewed in a holistic context of macroeconomic development. Design and implementation of these proposals would also require undivided attention to the effects the policies may have on any types of inequalities in the society and across diaspora groups. For Armenia, as elsewhere, enthusiasm, commitment, sustained cultural connection, and funding in diaspora relations are essential building blocks.

Finally, the conceptual structuring and findings of this project, specifically the systematic view to diaspora relations, can be insightful for other small economies with large diasporas. Armenia’s engagement experience with its diaspora may be quite instructive. And it is from this example of Armenia, that the international community may realize and anticipate in an informed way more subtle nuances of diaspora engagement.