Transnational Immigrant Innovation Network

Alvaro Lima & Peter Plastrik

Innovation Network for Communities

(April 2008)

2

What if… (scenario 1)

Diaspora Capital

financial entity-driven investment in immigrant communities

community financial fitness centers

remittance-based philanthropy for immigrant communities

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Savings & Loans

Deposit Accounts

Mainstream Financial Institutions

Small Savings

Borrowing ( short term loans, e.g. payday loans)

Sending Money to Families

Paying Bills

Cashing Checks

Financial Needs of Low-income Immigrant

Bills Payment

Check Cashing

Money Transfer

Non- Financial Institutions

Low-income Immigrant Needs Versus Financial Offerings

Source: Alvaro Lima and Peter Plastrik, 2005.

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BUILD AND

GROW

Insurance and Investments

ATTRACT AND

ACQUIRE

Transactions & Payments

INCOME

WEALTH!!

CONVERT

Savings & Other Asset-building Products

RETAIN

Credit and Loans

• Check cashing• Bills payment• Money transfer (remittances)• Value cards• Low/No minimum balance deposit accounts

• Traditional savings accounts with some non-traditional features• IDA-like accounts with more flexibility• Children’s savings accounts• Credit history building

• Deposit secured emergency loans• Education Loans• Flexible small business and home financing • Enhancing credit history

• Health, life, auto, and home insurance• Savings bonds, pensions, other investment options• Pension plans• Equity investments & Asset management• Philanthropic investments

SAVINGS

CREDIT

Fin

an

cia

l E

du

ca

tio

n o

ffe

red

th

rou

gh

ou

t th

e L

ife

Cy

cle

Full-service Portfolio Structured to Serve the Life-cycle Needs of Immigrants

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What if… (scenario 2)

Digaai.com

4 million Brazilians around the world:

communicate home with each other (social networking)

register their experience/build unique archives through video, photos, etc.

search newspapers, magazines, websites, etc. contribute to Brazilian diaspora wiki store personal information using private web space

6

7

What if… (scenario 3)

Transnational Index

What: Data and survey-based ranking of communities by their

degree of transnationalism Published annually in partnership with national media

Why: create awareness among policy makers of transnational

phenomena identify social and commercial innovation opportunities for

transnational immigrant communities build consciousness among transnational immigrants of

unique potential

8

Designing the Index

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The Transnational LensTraditional Lenses:

immigration conceptualized as a bipolar relation between sending and receiving countries (moving from there to here)

emigration is the result of individual search for economic opportunity, political freedom, etc.

migrants are assumed to be the poorest of the poor

immigrants occupy low-skilled jobs in agriculture, construction, and manufacturing

Immigrants steadily shift their contextual focus, economic and social activities to receiving country

immigration should not bring about significant change in the receiving society

Transnational Lenses:

immigration conceptualized as flows of cross-border economic, political and social-cultural activities (being here and there)

emigration is the result of geopolitical interests, global linkages, and economic globalization

migrants are not the poorest of the poor nor do they come from the poorest nations

growth in the service and technology-based jobs create opportunities for low as well as high skilled migrants

After the initial movement, migrants continue to maintain ties with their country of origin

immigration creates hybrid societies with a richer cultural milieu

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A Transnational Immigrant Innovation Network

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1st Generation Innovation Portfolio

Digaai.com

 Transnational Index

Diaspora Capital Services

English for Speakers of Other Languages (ESOL)

Transnational Fellows

Research Projects (transnational immigrant organizations)

Publications