How Lebanon could raise $1 billion per year

In the past five years, Lebanon has attracted an average of $4.5 billion per year in foreign direct investments (FDI). But as the uncertain political environment causes FDI levels to decline and economic growth to plummet, Lebanon could tap into a new source of financing called “diaspora bonds”, financial instruments sold only to expatriate communities.  In 2012, Lebanese emigrants sent more than $7.6 billion to their families, for the purpose of supporting their parents, putting relatives through school and other personal investments. Their impact on Lebanon’s development can be significantly increased if parts of their funds are mobilized for local investments, such as infrastructure, schools and hospitals. Between roughly 4 and 15 million Lebanese live abroad, so if one in every 10 members could be persuaded to invest only $1,000, Lebanon could raise on average more than $1 billion a year. Diaspora bonds raise capital by providing emigrants advantageous interest