Download Remittances

TODAY
• Migration
Remittances (a consequence of
international emigration from LA)
• Rural to rural migration within LA
• Rural to urban migration within LA
© T. M. Whitmore
LAST TIME
• The urban dual economy
• Migration
International within Latin
America
International to and from Latin
America
© T. M. Whitmore
Remittances: The Human Face of Globalization
Source: © IADB
•
•
•
Remittances
They are monies sent by workers in the US to
their Latin American (and other) homes.
About 10 million Latin American immigrants (of
the 16.5 m total) living in the United States
Send about $50 billion to their families on a
yearly basis.
Each monthly transaction averages
approximately $240
LA & C is now the fastest growing and highest
volume remittance market in the world (> 150
million transfers annually to over 20 million
recipients)
© T. M. Whitmore
Remittance Origins in US
• Top US sending states = CA, NY, FL, IL,
•
NJ (all over $1 billion annually)
N C over $800 million annually
© T. M. Whitmore
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How is money sent?
Most send remesasto to their families through
international money transfer companies.
These are costly: fees can run to 10% or
more
Less than 50% of Latin Americans have bank
accounts here or in home countries
Thus some use professional viajeros
(travelers)
Agencies are now competing
IADB working to reduce fees and
bottlenecks
In Durham, NC the Latino Community Credit
© T. M. Whitmore
Union charges from $6-10
Remittance destinations in LA
• Over $1 billion annually =
Mexico (> 18% of pop receive
remittance $)
Dominican Republic ($300/capita/yr)
El Salvador ( 28% receive $)
Guatemala (> 24% receive $)
Jamaica
Cuba
Ecuador (> 10% receive $)
Columbia
© T. M. Whitmore
Brazil
Remittances to LA & C
• Exceed the combined flows of all
•
Foreign Direct Investment (FDI) and
net Official Development Assistance
(ODA)
Flows substantially exceed tourism
income to each country & almost always
exceed the largest export.
© T. M. Whitmore
Scale of remittance flows
• Remittances to Mexico
•
Greater than the country's total
tourism income
Greater than 2/3 of the value of
petroleum exports
About equal to 180% of the country's
agricultural exports.
The earnings of Salvadorans residing in
the United States
Greater than entire GDP of the
country.
© T. M. Whitmore
Spending Remittances
• Vast majority spent on household
expenses
Investments in real estate (houses)
increasing
Also investments in small business
ventures
© T. M. Whitmore
Consequences & Issues
• Social consequences to the Latin
•
American migrant workers’ families
About 1/3 are undocumented thus
 Visits home are few
 Wages and working conditions may
be poor
Families are divided
Impacts in Latin America
Is this development or dependency?
How many participate, does it
increase or decrease equity?
© T. M. Whitmore
$3.7 b
$1.2 b
$13.2 b
$5.2 b
2006 estimates-note big increases
Source: © IADB
~$22 b (2006 est)
~$2.7 b (2006 est)
~$3 b (2006 est)
~$2.8 b (2006 est)
~$3.3 b (2006 est)
~$3.5 b (2006 est)
Sources:
IADB,
World Bank
Source: © IADB
Source: © IADB
© Thomas Whitmore
Return migrant (remittance funded) housing in Ecuador
© Brad Jokish
© Thomas Whitmore
© Thomas Whitmore
Quiroga, Mexico
© Thomas Whitmore
© Thomas Whitmore
Permanent: rural => rural
• From densely settled highlands to sparsely
•
•
settled lowlands
 Andean to Amazonia
 Andean to coast
 Central American
From densely settled NE Brazil and S
cities to Amazonia
Also temporary r -> r circulation
© T. M. Whitmore
Amazonia
4th type: rural => urban migration
• What is it?
•
rural to urban migration => permanent
change of residence
Why migrate?
“Push” and “Pull” forces
Economic welfare
Social welfare
Other factors
© T. M. Whitmore
Why migrate?
• Economic (pushes & pulls)
Lack of land
Few non-farm opportunities
Little upward mobility
Development => fewer rural jobs &
jobs with less dignity
New jobs have less autonomy
Strategy of family income
diversification
© T. M. Whitmore
Why migrate II?
• Social (pushes & pulls)
Education
Health care access
© T. M. Whitmore
Why migrate III?
• Other (pushes & pulls)
Environmental
Violence
Individual factors
© T. M. Whitmore
Who migrates?
• Age
• Gender
• Marital status
• Education level
• Personal
• Ethnicity
© T. M. Whitmore
How do migrants move?
• Migration patterns
Role of information
Role of social networks
Role of distance
© T. M. Whitmore