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TODAY • Migration continued • Mexico – US example • Remittances • Rural to rural migration Rural to urban migration • Social Geographies Wealth & income Social development indicators © T. M. Whitmore Example of International migration: Mexicans to US • Spatial patterns of migration • Issue of remittances © T. M. Whitmore © T. M. Whitmore Remittances-a global phenomena • They are monies sent by workers in the • more industrial countries to their homes in the global “south” ~ 150 million migrants sent > US$ 300 billion globally in 2006 © T. M. Whitmore Remittances to LA • About 30 million Latin American • • migrants living in the United States & Europe Send ~ US$68 billion to their families annually! Average remittance per migrant ~ US$2,100 Average per capita remittance ~ 20% of average per capita GDP 15 of 38 in LA countries receive > US$ 1 © T. M. Whitmore b Remittance Origins in US • Top US sending states = CA, NY, FL, IL, • • • NJ (all over $1 billion annually) N C over $800 million annually Immigrants in US have total incomes ~ US$ 500 b About 10% of that is sent home but 90% is spent in the US locality ~ 60 of remittance senders are “working poor” or lower middle class (incomes < $30k) – but most think economic life in US is good © T. M. Whitmore • • • How is money sent? Most send to their families through international money transfer companies. These are costly: fees can run to 6-7% or more (but these are low by global standards) Fewer 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 Union charges from $6-10 © T. M. Whitmore Remittance destinations in LA • Countries where remittances ~ 10% of total country GDP Grenada ~31% Honduras ~25% El Salvador ~24% Haiti ~21% Dominican Republic ~18% Jamaica ~18% Nicaragua ~15% Belize ~11% Guatemala ~10% © T. M. Whitmore Remittances to LA & C • Exceed the combined flows of all • • • Foreign Direct Investment and net Official Development Assistance Flows substantially exceed tourism income to each country & almost always exceed the largest export Overall remittances ~13% of the value of all exports Large percentages (> 15%) of the adult population in many countries receive remittances © T. M. Whitmore Scale of remittance flows • Remittances to Mexico ~US$24 billion Greater than the country's total tourism income Greater than 2/3 of the value of petroleum exports About equal to 180% of the country's agricultural exports. © T. M. Whitmore Spending Remittances • Vast majority spent on household expenses Rural residents get ~ 1/3 of all remittances Investments in real estate (houses) increasing Also investments in small business ventures © T. M. Whitmore Consequences & Issues • Social consequences to the Latin • American migrant workers’ families About 1/3 are undocumented thus Visits home are few Wages and working conditions may be poor Families are divided Impacts in Latin America Is this development or dependency? How many participate, does it increase or decrease equity? © T. M. Whitmore Global Totals: ~$US 301 billion Remittances: The Human Face of Globalization Source: © IADB Quiroga, Mexico © Thomas Whitmore $3.7 b $1.2 b $13.2 b $5.2 b 2006 estimates-note big increases Source: © IADB © Thomas Whitmore Source: © IADB Source: © IADB © Thomas Whitmore Return migrant (remittance funded) housing in Ecuador © Brad Jokish © Thomas Whitmore © Thomas Whitmore © Thomas Whitmore © Thomas Whitmore Migration: 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 Myriad of interacting factors “driving” migration © T. M. Whitmore Amazonia © David Carr Sugar mill in S coastal Guatemala 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 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 Social (pushes & pulls) • Education • Health care access © T. M. Whitmore 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 “steps” Role of distance and costs © T. M. Whitmore Social Geography & Development: Wealth • Average wealth in GDP (in PPP)/capita • World ~ $9,940 • Lesser developed ~ $4,760-5,480 USA ~ $44,260 © T. M. Whitmore Social Geography & Development: Wealth II • LA ~ $8,630 • Extremes of GDP/capita in LA (< $5,000) Low Honduras, Nicaragua, Guatemala Jamaica, Haiti (<$1,500!) Ecuador, Bolivia, Paraguay > LA average GDP/capita (> $8,500) Costa Rica, Mexico Argentina, Brazil, Chile, Uruguay © T. M. Whitmore Percent population living on <$2/day • World average > 50% • Latin American average ~ 24% Countries with > 30% Honduras, Nicaragua, Guatemala, El Salvador, Jamaica, Haiti, Bolivia, Ecuador, Paraguay Countries with fewer than LA average Costa Rica, Mexico Argentina, Brazil, Uruguay Chile © T. M. Whitmore GDP/capita • USA • Wealth distribution I Richest 20% have 40% of all income Poorest 20% have 5% 65% in middle class GINI coefficients USA ~ 41 Mexico ~46 Bolivia ~60 Brazil ~56 © T. M. Whitmore Guatemala ~60 Wealth distribution II • Latin America • • Richest 20% have 50-65% of all income Poorest 20% have 2-5% 30% in the middle Countries with top 20% with more than 50% of all income Brazil, Panama, Costa Rica, Argentina, Mexico, Peru, Venezuela Changing over time Varies within countries © T. M. Whitmore GINI coefficients Social development indicators • The Human Development Index • Safe water access • Population to hospital bed ratio • % of children < age 5 underweight • Overall worst levels of human development Bolivia; Ecuador; Paraguay; Peru El Salvador; Guatemala; Honduras; Nicaragua Dominican Republic; Haiti © T. M. Whitmore