Babken DerGrigorian is Armenia’s Deputy Minister of Diaspora
BY AMY LIEBERMAN
From Devex
NEW YORK””Armenia’s vast diaspora, estimated at 7-10 million people worldwide, is far larger than the resident population of this small, post-Soviet nation. The new Armenian government is now planning to leverage the support of its diaspora community for long-term, sustainable development work.
The government came to power earlier this year following a nonviolent protest movement, which saw opposition leader Nikol Pashinyan established as the country’s new interim prime minister. The change in leadership has been accompanied by a shift in how the government is approaching implementation of the Sustainable Development Goals.
Three months after a peaceful revolution, observers are asking whether a change of leadership will translate into more responsive and accountable governance in Armenia, supporting the next stage of its development.
Babken DerGrigorian, an economic adviser and deputy minister of diaspora for Armenia, joined the government in May. A native Californian of Armenian descent, he has an idea to fund development investment: Diaspora bonds. It’s a model that Israel and India have both used effectively, but it has been less successful in other places, such as Ethiopia.
The establishment of government-issued diaspora bonds ”” which Armenians outside the country could invest in, instead of funneling money into charities, as many of them currently do ”” is now underway. The government expects to release a formal strategy by the end of the year.
DerGrigorian spoke with Devex about how diaspora bonds function and why he believes this development strategy could work for Armenia. The conversation has been edited for length and clarity.
How did you develop the concept of a diaspora bond for Armenians?
We have a diaspora that is already very involved in charity, but the point is to leverage a small amount of charity intention for a much greater financial impact. These government bonds generally will be lower than the market rate of return, but still better than putting your money in a bank account. It is a win-win situation, in the sense that the government also gets access to cheaper credit on the international market, usually local currency.
The proposition you make to the diaspora is that instead of giving away money to charity as a donation, [you can] use your charity intention to take on the risk associated with local currency bonds.
“The diaspora’s financial contributions to Armenia should not only be based on some emotional attachment. It should rationally make sense for both parties to be sustainable in the long run.”
