© T. M. Whitmore

TODAY

•MigrationRemittances (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

Source: © IADB

Remittances: The Human Face of Globalization

© T. M. Whitmore

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

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 countriesThus 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•Over $1 billion annually =

Mexico (> 18% of pop receive remittance $)

Dominican Republic ($300/capita/yr)El Salvador ( 28% receive $)Guatemala (> 24% receive $)JamaicaCubaEcuador (> 10% receive $)ColumbiaBrazil

© T. M. Whitmore

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 StatesGreater than entire GDP of the

country.

© T. M. Whitmore

Spending Remittances

•Vast majority spent on household expensesInvestments in real estate (houses)

increasing Also investments in small business

ventures

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Consequences & Issues•Social consequences to the Latin

American migrant workers’ familiesAbout 1/3 are undocumented thus

Visits home are fewWages 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?

Source: © IADB

$1.2 b

$13.2 b

$5.2 b

$3.7 b

2006 estimates-note big increases

Sources: IADB, World Bank

~$22 b (2006 est)

~$3 b (2006 est)

~$3.3 b (2006 est)

~$3.5 b (2006 est)

~$2.8 b (2006 est)

~$2.7 b (2006 est)

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

© T. M. Whitmore

Permanent: rural => rural

•From densely settled highlands to sparsely settled lowlands

Andean to AmazoniaAndean to coastCentral American

•From densely settled NE Brazil and S cities to Amazonia

•Also temporary r -> r circulation

Amazonia

© T. M. Whitmore

4th type: rural => urban migration

•What is it? rural to urban migration =>

permanent change of residence•Why migrate?

“Push” and “Pull” forcesEconomic welfareSocial welfare Other factors

© T. M. Whitmore

Why migrate?•Economic (pushes & pulls)

Lack of landFew non-farm opportunitiesLittle upward mobilityDevelopment => fewer rural jobs &

jobs with less dignityNew jobs have less autonomyStrategy of family income

diversification

© T. M. Whitmore

Why migrate II?

•Social (pushes & pulls)EducationHealth care access

© T. M. Whitmore

Why migrate III?

•Other (pushes & pulls)EnvironmentalViolenceIndividual 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 networksRole of distance