The Latvian diaspora annually transfers about one billion euros to Latvia; however, these financial flows still primarily serve as a consumption buffer rather than a tool for long-term capital accumulation, according to the study by the Faculty of Economics and Social Sciences at the University of Latvia (LU) "Diaspora Investments in Latvia," which was presented to the members of the Saeima Commission on Citizenship, Migration, and Social Cohesion on Wednesday.
Researchers indicate that the volume of remittances from the diaspora abroad amounts to about 3% of Latvia's gross domestic product (GDP) — one of the highest figures in the European Union. However, the diaspora lacks clear, professionally managed, and reliable mechanisms that would allow these flows to be transformed into productive investments. The head of the study, tenured professor Inta Miere, emphasizes that "the diaspora's capital in Latvia already exists — it is significant, multidimensional, and motivated," but the main challenge for the state is the lack of trust infrastructure.
The study establishes that the diaspora's contribution is not limited to remittances — it also includes human capital, professional skills, social networks, and reputation. At the same time, private investments in the equity of enterprises have become cyclical and vulnerable in recent years, and the number of investors has significantly decreased, indicating a high sensitivity to risks and insufficient trust in the investment environment.
Researchers from the University of Latvia emphasize that the segment of the diaspora aged 35–54 is particularly significant — economically active, highly educated, and with a pronounced desire to invest in Latvia, including in search of "double returns" — both financial profitability and a positive impact on the country's development.
To fully utilize this potential, scientists propose creating a decentralized network of diaspora investment funds that would operate on the principles of transparency, trust, and regional accountability, attracting diaspora professionals as reputation leaders. It is also recommended to establish a partnership mechanism between the state and the diaspora to coordinate the work of institutions.
The study also envisions the creation of a unified digital environment — the platform "Global Latvian Invests," which will serve as a point of access to investments, knowledge acquisition, and trust building. Researchers recommend establishing several pilot funds with clearly defined designs and goals in the near future.
The study was conducted in collaboration with the Ministry of Foreign Affairs and utilized a mixed methodology — surveys of the diaspora and experts, interviews, and statistical analysis.
