Diaspora is the ethnic network resulting from the temporary or permanent move of a population to other countries keeping cultural and economic relationships to their country of origin. Such relationships can be complex and of particular importance for the host and sending countries. Diasporas play an important role for the dynamics of migration, since they can provide network externalities like informational and financial support and through family reunification. Migrants may also foster trade and capital flows, the mobility of talent and may induce innovations in both directions, and hence contribute to growth and economic welfare. Remittances, return and circular migration as investment activities of the diaspora are considered to be very important forces in development and migration economics. Diaspora policies of sending and receiving countries deal with the diverse cultural, political and economic motives. The presentation outlines diaspora economics and its potential for economic development