The paper analyzes the impact of established Diaspora on the reduction of poverty, and identifies ways in which policy interventions, especially from donors of official development assistance, might strengthen that impact. It examines the role of Diaspora in poverty reduction through four main areas: policy and practice towards Diaspora on the part of countries of origin; Diaspora engagement in countries of origin; Donor engagement with Diaspora; and recommendations for future activity to maximize the contribution of Diaspora to development and poverty reduction.