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India strategically issued diaspora bonds during crises. Notable examples include the Indian Development Bonds in 1991, which raised $1.6 billion, and subsequent bonds that capitalized on financial distress with competitive interest rates and patriotic marketing. While effective during emergencies, India's program lacked the consistency and transparency essential for long-term appeal.
Cautionary Tales: Ethiopia and Greece
Not all attempts at issuing diaspora bonds have been successful. Ethiopia's initiatives in 2008 and 2011 failed due to low investor trust and a lack of transparency regarding fund allocation. Similarly, Greece’s attempt to raise $3 billion during its debt crisis faltered due to economic instability and insufficient diaspora confidence.