Diaspora bonds are a clever idea that has rarely worked in practice. But Israel has bucked this trend, which should encourage other countries to rethink what’s possible in crisis financing. Development economists have long urged governments to tap into the largesse of their diasporas during crisis times by issuing so-called diaspora bonds, opens new tab, which are debt instruments that seek to raise financing from countries’ diaspora communities.
Citation
Michael Bradley, Irving De Lira Salvatierra & G. Mitu Gulati, Israel shows diaspora bonds can work as advertised, Reuters (December 5, 2024).