The Reinforcing Loop between Digital Nomads and Soft Power

Digital nomads may positively contribute to a country's soft power by showcasing its appeal as a welcoming destination with a higher or at least comparably more affordable quality of life.

What is the nexus between modern ‘nomadic’ workers and a country’s international appeal and how could the interaction between the two result in a beneficial loop?

In the ever-evolving landscape of international relations, the concept of soft power has gained prominence as a tool for countries to enhance their attractiveness and influence on the global stage. According to Joseph Nye, the scholar who coined the term, soft power is a country’s “ability to obtain preferred outcomes by attraction rather than coercion or payment.” In recent years, the rise of digital nomads – individuals “who perform their occupation entirely over the Internet while traveling,” has transformed the traditional understanding of workforce mobility. This was further spurred by the Covid-19 pandemic and more recently even by people escaping regional conflicts. Governments all across the world have noticed.

This article explores the intersection of soft power and the digital nomad phenomenon, investigating beneficial and concerning developments that could inform strategies for countries to harness these trends to their advantage, such as through targeted public diplomacy initiatives.

To begin with, digital nomads may positively contribute to a country’s soft power by showcasing its appeal as a welcoming destination with a higher or at least comparably more affordable quality of life. The lifestyle of digital nomads embodies the freedom and (inter)cultural immersion that many individuals aspire to, making it a powerful tool for countries seeking to enhance their global image.

From a sociocultural perspective, hosting a community of digital nomads fosters cultural exchange and diversity. As these individuals move across borders, they bring with them diverse perspectives, ideas, and skills, contributing to a rich tapestry of innovation and creativity within a country.

Financially, digital nomads inject money into local economies by spending on accommodation, food, transportation, and other goods and services. This influx of capital can stimulate economic growth in regions that actively attract and support remote workers. Digital nomads can be seen as long-term tourists and although their spending power may vary considerably, it is generally greater than the average backpacker or budget traveler.

Linking the social and economic realms, digital nomads often work in industries that rely heavily on networking and collaboration. By attracting these professionals, countries can create opportunities for local businesses to connect with global markets, fostering international partnerships, trade, and investments.

With that said, there are also obstacles and drawbacks to targeting and hosting digital nomads. To begin with, there may be technical deficiencies as not all locations are equipped to handle the needs of digital nomads, such as reliable internet connectivity and co-working spaces. Insufficient infrastructure can hinder the ability of a destination to attract and retain this workforce and even result in negative publicity if expectations and standards are not met.

Different countries have varying regulations regarding visa requirements, taxation, and work permits. Navigating these regulatory hurdles can be a challenge for digital nomads and the countries aiming to attract them. Countries are increasingly aware of these hurdles, but not many are able to move swiftly to address them, and concerns linger.

More broadly, the transient nature of digital nomads may lead to challenges in community integration as constant turnover can disrupt local communities and strain resources, leading to potential social tensions.

Solutions can range from developing digital nomad-friendly policies, such as proposing streamlined visa procedures; investing in digital and physical infrastructure, such as providing reliable and fast internet connection as much as suitable working spaces; promoting the country while emphasizing a work-leisure balance; and engaging the community of nomads both to attract and to retain them. Public diplomacy campaigns can be devised to showcase (and reinforce) any of these efforts to the target audience.

Referring to the beginning of this article: what is therefore the nexus between digital nomads and a country’s soft power? If a destination manages to attract a ‘fitting’ demographic – respectful and wealthy enough to contribute to the local economy and overall development ­– it can create a beneficial loop of attraction sustained by an influx of like-minded nomads welcomed and accepted by governments and local communities alike. The national image and reputation will greatly benefit from such a self-reinforcing process.

However, pitfalls are present at every step of the attractive process. Countries could fail to develop enticing promotional strategies if their offer does not align with the evolving needs of nomads, ultimately nullifying their efforts. Either (or both) governments or nomads may end up in the news for the wrong reasons, and this can further lead to intolerance or outright rejection from local communities.

Important questions need to be thoroughly investigated and weighed by leaders and policymakers, such as the extent to which digital nomadism promotes positive ideas of cosmopolitanism, whether it fosters intercultural understanding and mutual respect or it leads to privileged expatriate ‘bubbles’, gentrification, and even cultural homogenization.

That said, the outlook needs not to be gloomy. Digital nomads are just a more recent manifestation of migration. Existing strategies to attract foreign audiences could be adapted to this phenomenon. After all, the supporting trend – remote and flexible working – is expected to keep growing.

Overall, the intersection of soft power and digital nomadism presents an exciting opportunity for countries to enhance their global influence. By understanding the pros and cons associated with attracting digital nomads, governments can develop strategies that harness the benefits while mitigating potential challenges. Embracing a digital nomad-friendly approach could provide a competitive advantage as it not only contributes to economic growth but also enriches cultural diversity and fosters global collaboration, ultimately strengthening a country’s soft power on the world stage.

Considering the steady stream of articles showcasing the latest ‘digital nomad visas and perks’, countries seem well aware and eager to compete to attract them, but not everyone can be on top. For the time being, may the most attractive win, others can always learn and hope to become the next sought-after destination. If anything, this blend of soft-economic international competition should be favored over harder, more destructive forms.

Daniele Carminati
Daniele Carminati
Daniele Carminati is a lecturer in International Relations at Mahidol University International College and holds a PhD in Asian and International Studies from the City University of Hong Kong. His research interest revolves around the sociocultural, economic, and political implications of globalization in East and Southeast Asia with a particular focus on soft power dynamics.