The Latvian diaspora is one of Latvia’s most significant resources for sustainable development, yet its potential has not been fully and structurally harnessed to date, conclude researchers from the Faculty of Economics and Social Sciences (FESS) of the University of Latvia (UL). The study proposes the establishment of a network of diaspora investment funds as well as a state-run digital platform that would serve as a single access point for investments, skills engagement, and trust-building. The research was conducted in cooperation with the Ministry of Foreign Affairs.
The study “Diaspora Investments in Latvia” was carried out by UL FESS researchers in collaboration with the Ministry of Foreign Affairs of the Republic of Latvia under the leadership of Tenured Professor Inta Mieriņa. The research team also included researcher Līga Brasliņa, Professor Anda Batraga, expert Katrīna Kellerte, and master’s student of cultural and social anthropology Ieva Švarca. The aim of the study was to provide an empirical foundation for a modern diaspora investment policy.
According to the study’s data, the diaspora transfers between EUR 0.94 and 1 billion to Latvia annually in remittances, accounting for approximately 3% of Latvia’s GDP—one of the highest figures in the European Union. While these financial flows are significant, the researchers conclude that they are underutilised. The study finds that remittances largely function as a consumption buffer rather than as a tool for creating a productive investment environment, due to the lack of mechanisms that would help transform transfers into long-term capital.
“Diaspora capital already exists in Latvia—it is large, multidimensional, and motivated,” emphasises the study’s scientific lead, Tenured Professor Inta Mieriņa. “Our main challenge is not to convince the diaspora that Latvia matters. The challenge is to create a defined, professional, and trustworthy pathway that allows this capital to be transformed into systematic investment in the country’s growth.”
The study reveals that diaspora contributions to Latvia extend beyond financial transfers. They also include human capital (knowledge and professional experience), social capital (networks and reputation), and cultural/symbolic capital. As highlighted in the study, Latvia’s challenge is not the absence of diaspora capital, but rather the structural insufficiency of trust infrastructure and governance, which hinders the transformation of this potential into sustainable investments for national development.
At the same time, private diaspora investments in company equity are cyclical and fragile—the number of investors has declined significantly in recent years, indicating high sensitivity to risk and trust in the investment environment, the researchers note. The diaspora does invest, but seeks clear pathways and reliable instruments.
Survey results show that the diaspora is highly educated, professionally strong, and has a high potential for engagement. Of particular importance is the economically active segment aged 35–54, which represents a “golden window” for diaspora investment policy. The study finds that diaspora members often seek a “double return”—financial profitability combined with meaningful impact on Latvia’s development, whether in a specific sector, region, society, or culture.
The study proposes an action architecture consisting of funds, partnerships, and a digital platform. Researchers recommend creating a concrete, integrated framework to move from fragmented diaspora engagement to a structured investment ecosystem. The key recommendation is to establish a decentralised network of diaspora investment funds based on trust, transparency, and regional accountability, involving recognised diaspora professionals as reputational anchors.
The researchers also recommend establishing an institutionalised state–diaspora partnership mechanism to coordinate the activities of responsible institutions and diaspora investment structures, as well as developing a unified digital environment—the platform “Global Latvian Invests”—to serve as a single access point for investments, skills engagement, and trust-building.
In the near future, the researchers propose that responsible institutions, together with diaspora investment leaders, establish pilot funds in specific regions, with clearly defined design, mandates, and performance indicators.
The study “Diaspora Investments in Latvia” is based on a mixed-methods approach, including a diaspora survey, expert surveys, interviews, and statistical data analysis.
