The idea of the Diaspora contributing to a bond for development purposes was stillborn due in part to the additional debt burden that would saddle the already indebted island.

A solution involves setting up a private company to raise and manage the bond rather than the Government, reasoned the Jamaica Stock Exchange (JSE) who will push the issue at the upcoming Diaspora conference.

“I believe the objectives of having Diaspora investments flow into Jamaica could be realised through the creation of a Diaspora Investment Company that is listed on the JSE and which would provide perpetual capital for growth,” stated Marlene Street Forrest, general manager at the JSE, in a phone and mail interview with the Jamaica Observer on Thursday.

The benefit would include removing the additional debt burden from the Government of Jamaica. The company would be established as a for-profit entity with specific educational and health services that meet the objectives of the Diaspora while generating revenue and providing some return on investment, she explained.

The recommendation for floating a bond came out of the first Biennial Diaspora Conference held in Kingston in 2004. It was seen as an attractive option for the Jamaican Government in sourcing capital to fund development initiatives. The bond aimed to tap into two flows of income including the more than US$2 billion in annual remittances sent to the island and the approximately US$5 billion saved annually by nationals and persons of Jamaican descent living abroad.

Last October Minister of State in the Ministry of Foreign Affairs and Foreign Trade Arnaldo Brown said the bond was still being considered, but that ‘timing’ was critical.

Street Forrest indicated that the private sector needs to lead the effort with the support of Government.

“[They] should look at an alternate approach to amassing Diaspora investment rather than through the Diaspora bond which has been stillborn because the bond adds to the government’s debt stock as well as possibly the dedicated focus on this,” she said.

The sixth Biennial Jamaica Diaspora Conference 2015 under the theme “Jamaica and the Diaspora: Linking for Growth and Prosperity” takes place between June 13 to 18 in Montego Bay.

The Conference, convened by the Ministry of Foreign Affairs and Foreign Trade, connects Jamaicans from all over the world with Jamaicans in the home country every two years. The event seeks to strengthen existing linkages and networks, and to build alliances for Jamaica’s development and standing in the world.

Over 1500 persons attended the Conference in 2013, which featured a capacity Marketplace Expo, fast-tracked Government services, targeted discussions stimulating hospitality and other events, and concluded with an enriching Diaspora Day of Service programme. More than 200 business meetings were facilitated between Diaspora investors and local businesses.