Journal of International Business and Economy

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Fiscal Policy and Alternative Sources of Public Capital in Transition Economies: Diaspora Bond
Aleksandr V. Gevorkyan
Volume 9, Number 2, Fall 2008, pp. 33~61

State-sponsored projects in the transition economies often lack reliable finance sources as governments deal with orthodox policy limitations. At the same time reliance on relatively inconsistent natural resources export revenues, migrant remittances or conditional loans and foreign aid may not be adequate for long run development projects. One alternative is a Diaspora-sovereign bond program with a patriotic discount. Implied independent decision-making and fiscal responsibility will allow for strategic funds allocation, with an incentive for infrastructure and social initiatives investment with strong feedback into a productive economy stimulating effective demand. Ultimately these components define modern fiscal policy and are fundamental to economic growth and development. Regulated via ¡ªState.Diaspora Supervisory Board,. a Diaspora bond may also serve as the initial or renewed access to the international capital markets, especially for smaller economies and those with low sovereign ratings.      

Key Words: fiscal policy, development, Diaspora bond, patriotic discount

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Sources and Use of Market Information: An Analysis of Successful Small and Medium Sized Exporters
Mark Burridge and Robert Bradshaw
Volume 9, Number 2, Fall 2008, pp. 63~79
Export Subsidies and Customs Unions
Jose Mendez-Naya and J. Tomas Gomez-Arias
Volume 9, Number 2, Fall 2008, pp. 23~31