Globalization has brought about a new paradigm where socio-cultural, political, and economic landscapes get exposed to unexpected dynamics of challenges and change. It thus becomes a matter of both challenge and opportunity for the home and host countries.

On the one hand, the economic changes over the past hundred years that includes close integration, opening of trade, ideas and information, have resulted in benefitting the industrially developed economies. On the other hand, for the developing economies, the challenges remain though of different level and kind. However, the changed circumstances globally also bring along opportunities for these states to help them overcome the challenges.The increased movement of people has resulted in theglobal development of new ideas, intercultural linkages, democratisation of global space etc. In this scenario, diaspora has emerged as an important player in the transnational sphere for both thehome and host countries.

The actual process of engaging diaspora in the development process remains a challenge for the home countries. Policies result from a complex interplay of local and global conditions, including the role of lobby groups, socio-economic and political conditions of the country, level of institutional development, technological progress. This engagement process is also mediated by the social and cultural identities of the diaspora that are not just diverse but also contested. The challenge faced by the developing countries in this regard is very different from that of the industrially advanced states.

In recent years, the policies related to human and financial capital have been gaining serious attention. Contrary to the idea of brain drain that dominated the development debate in the 60s and 70s among the scholars and policy makers of developing countries, diasporas in the age of internet are viewed as instruments of human, financial and social development of both the host and the home state. Many developing countries in the recent past have been playing a significant role in channelizing the resources through various institutional mechanisms by engaging both the government and non-governmental institutions. Developing countries have managed to channelise financial resources from their diaspora quite effectively. India has emerged as the largest recipient of remittances in the world surpassing China in the last few years. Financial capital accumulated by diaspora abroad is often repatriated to the country of origin in the form of remittances or direct investments. Human capital plays an important role in this regard and is effectively transferred across borders with the use of ICT, creating opportunities in several sectors such as higher education, training, research and development, etc. There are evidences of successful diasporic knowledge transfer in areas such as IT and Healthcare. For instance, the success of Bangalore IT boom and corporate healthcare may be attributed to the contribution of the high skilled Indian diaspora in the US.

The multidirectional engagement between diaspora and homeland is more intensive with the help of virtual platforms. There are multiple dynamics involved in shaping the contour of the diaspora and engaging them with region, nations and transnational spheres.

Conflicts and engagement in the development are simultaneous with many diasporas. However, there is a need to engage positively with all dynamics rather than ignoring the force that is so important in the globalised world.

Globalization has brought about a new paradigm where socio-cultural, political, and economic landscapes get exposed to unexpected dynamics of challenges and change. It thus becomes a matter of both challenge and opportunity for the home and host countries.

On the one hand, the economic changes over the past hundred years that includes close integration, opening of trade, ideas and information, have resulted in benefitting the industrially developed economies. On the other hand, for the developing economies, the challenges remain though of different level and kind. However, the changed circumstances globally also bring along opportunities for these states to help them overcome the challenges.The increased movement of people has resulted in theglobal development of new ideas, intercultural linkages, democratisation of global space etc. In this scenario, diaspora has emerged as an important player in the transnational sphere for both thehome and host countries.

The actual process of engaging diaspora in the development process remains a challenge for the home countries. Policies result from a complex interplay of local and global conditions, including the role of lobby groups, socio-economic and political conditions of the country, level of institutional development, technological progress. This engagement process is also mediated by the social and cultural identities of the diaspora that are not just diverse but also contested. The challenge faced by the developing countries in this regard is very different from that of the industrially advanced states.

In recent years, the policies related to human and financial capital have been gaining serious attention. Contrary to the idea of brain drain that dominated the development debate in the 60s and 70s among the scholars and policy makers of developing countries, diasporas in the age of internet are viewed as instruments of human, financial and social development of both the host and the home state. Many developing countries in the recent past have been playing a significant role in channelizing the resources through various institutional mechanisms by engaging both the government and non-governmental institutions. Developing countries have managed to channelise financial resources from their diaspora quite effectively. India has emerged as the largest recipient of remittances in the world surpassing China in the last few years. Financial capital accumulated by diaspora abroad is often repatriated to the country of origin in the form of remittances or direct investments. Human capital plays an important role in this regard and is effectively transferred across borders with the use of ICT, creating opportunities in several sectors such as higher education, training, research and development, etc. There are evidences of successful diasporic knowledge transfer in areas such as IT and Healthcare. For instance, the success of Bangalore IT boom and corporate healthcare may be attributed to the contribution of the high skilled Indian diaspora in the US.

The multidirectional engagement between diaspora and homeland is more intensive with the help of virtual platforms. There are multiple dynamics involved in shaping the contour of the diaspora and engaging them with region, nations and transnational spheres.

Conflicts and engagement in the development are simultaneous with many diasporas. However, there is a need to engage positively with all dynamics rather than ignoring the force that is so important in the globalised world.