Professional Documents
Culture Documents
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Mexican migrants have travelled north to the United States in search of employment for over
100 years, it is estimated that around 11.5 million currently reside there (Pew Hispanic
centre, 2009). This migration has had many impacts on both Mexican and North American
society. One of the greatest of these impacts for Mexico is the remittances that Mexican
immigrants send back home to their families. Statistics tell us that Mexicans received 21,132
figures give us an overview of the magnitude of this phenomenon but tell little if anything
about the impact this money can have on the lives of the Mexican people.
In recent decades the high increase in remittance flows has sparked huge interest in their
potential for development. Development in itself is a complex concept and its sheer meaning
is debated widely among academics of all disciplines, for the purpose of this assignment I
will look at Amartya Sen¶s notion of development as freedom. Sen (1999) approaches
development µas a process of expanding freedoms that people enjoy¶ (3). For Sen, freedom is
the expansion of the capabilities of people to control their own lives. Sen¶s approach
contrasts with views on development that associate it with growth of gross domestic product
expansion of freedoms, but notes that income indicators alone are inadequate to measure the
quality of people¶s lives. Sen measures development through 5 different types of freedom in
his book, however he notes there are more. This assignment will address three of these;
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Families and households are direct beneficiaries of remittances; early studies in the 1980¶s
explored the direct effects of remittances and argued that these groups are more likely to
spend remittances on current consumption than for productive uses and that in turn
In the early 1980¶s Reichert looked at the impact of remittances on Guadelupe, a poor
farming community that had 80 years¶ experience of migration. He divided the community¶s
population into three groups; legal migrants, illegal migrants and non-migrants. Reichert
carried out a survey of housing stock and access to consumer goods, and found inequalities
among these groups µlegal migrants occupied the highest economic stratum in Guadalupe
(Binford, 2003: 307). He found that legal migrants invested in the improvement of the
community but at the same time, they were the ones that mostly benefited from these. In
Guadelupe, legal migrants were also investing in land, which provoked a hike in land prices
putting land beyond the reach of the most non-migrants. Reichert noted that this growing
inequality had an effect on the younger generations who came to see migration as a positive
with their education in Mexico. These observations led Reichard to see migration to the U.S
as a syndrome µhouseholds had become dependent on the income from migration, and
trapped, perhaps unknowingly, in a vicious circle in which only migration provided the
means for sustaining the very materially improved lifestyles that the remittances had made
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Similar studies were carried out by Wiest (1979) in the rural town of Acuizio, Michoacán and
Mines (1981) in the community of Las Animas, Zaxateca, both observations came to similar
conclusions to those made by Reihert. Wiest came to view migration from Mexico to U.S as
an addiction, his study demonstrates that µ migration from Acuzio was accompanied by
inflated land prices and declining corporate kin group control over resources¶ (Binford, 2003:
308). Mine¶s study concluded that migration was as a µdouble edged sword¶ that allows
migrants to achieve higher living standards but has become solely dependent on continued
migration to the U.S (Binford, 2003: 309). All of these studies agreed that remittances were
spent most frequently on current consumption rather than productive investment and
demonstrated that remittances caused social and economic inequalities. They all viewed the
impact of remittances on development as negative, but more recent studies have explored
these assumptions in different ways and have more positive views on this phenomenon.
Durand and Massey (1992: 27-29) argue that instead of making generalisations regarding the
occurs in some communities and not in others. Their analysis of four different Mexican
communities demonstrates that the community, to which one belongs, is one of the strongest
production due to factors such as isolation from natural markets and unsuitable land or lack
of water for agriculture. Their analysis also found that at certain stages of people¶s lives they
tend to prioritize their income on certain things. It showed that while young adults are more
inclined to spend on µfamily maintenance, housing and medical care¶ as migrants get older
they are more µlikely to invest in agricultural inputs that raise productivity, such as
machinery¶. Their final finding shows that different eras present different opportunities for
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investment. Durand and Massey give us an insight into some of determinants of productive
investment however they fail to give us a full picture of all the determinants that affect a
Zárate- Hoyos (2005: 166) shows some of the characteristics of remittance receiving
households found in the National Survey of Demographic Dynamics (ENADID). This survey
found that 23 percent of households that receive remittances are benefactors of remittances
from migrants that do not belong to their households and that in 44 percent of these
households the head was over 64 years old. Zárate- Hoyos suggests that this indicates that
these households might not use remittances for productive investment, because they lack
working age adults with the ability to invest. Further data from this study indicates that
approximately one third of remittance receiving households have at least one other relative
living with them and four in ten households that receive remittances do not receive any
income from other members of the household (167). Further analysis by Zárate- Hoyos (168)
looks at the data from the National Income and Expenditure Survey (ENIGH), this data
informs that migrant households are more likely to house their extended family than non
migrant households and that remittance receiving households have a higher inactive part of
the population than non-remittance receiving households. This data would suggest a certain
dependency on remittances but more data would be required to evaluate whether these
for the survival of the household. Age of the non active µdependents¶ and employment
opportunities in the local area, are things to keep in mind when assessing how dependent
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repeated surveys of the same households or long-term ethnographic studies would be needed.
He suggests that in lack of such studies it would be advisable to use a µconservative approach
to investment¶. Such an approach however would lead to an incomplete vision of the impact
that remittances can have on development. Consider the following statement by Zárate-
investments, we could miss the importance they have on the development at household level
It is important not to over -generalize when talking about the phenomenon of remittances in
business, but there are also many success stories. The migrants in San Francisco del Rincón,
Guanajuato invested their remittances in workshops that produce trainers and shoes that have
now become the leading local product. The migrants of Ario de Rayón, Michoacán have
invested amongst other things in the manufacture of wedding decorations made with orange
blossoms and are now selling these both in Mexico and the United States (Durand, Parrado
and Massey, 1996: 426) in both of these cases direct investment has had a positive impact on
households, communities and the Mexican economy. Furthermore even households that
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spend all their remittances on current consumption can produce an indirect positive effect on
Remittances allow households to spend more on food and clothing, most of these items
have been produced or manufactured in Mexico, more demand allows for more
production which in turn allows Mexican entrepreneurs to expand business and therefore
create more jobs. Spending on education, health and housing creates a demand for more
teachers, nurses, doctors, architects and builders as well as a demand for housing
materials which are largely produced in Mexico (Durand, Parrado and Massey, 1996:
425).
Although this demonstrates a positive and promising vision of how remittances can
benefit others and not just those who receive remittances, one must question if these
indirect effects really benefit communities or if money created by these direct effects
bypasses communities and goes straight into the pockets of wealthy entrepreneurs in
urban cities. Durand, Parrado and Massey, (1996) studied the indirect effects of
Ario all situated in the state of Michoacán. In Yerbabuena they estimated that $499,000
in remittances from the U.S, raised the village income by $877,000, this in turn meant
that 51% of Yerbabuena¶s income came directly or indirectly from remittances (437).
The other communities gave similar results, in Chavinda it was estimated that $1,841 in
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remittances raised the village income by $3,271 while in Ario $2,091 raised the income
by $3,716. Once the indirect and direct effects of remittances were considered it showed
that they accounted for 93% of local income of Chavinda, and 62 % of the total local
income of Ario (38). Although this study was on a small sample of Mexican remittance
receiving communities, it demonstrates that U.S migration has the potential to stimulate
and improve economy at community level, not just at regional and national levels.
While addressing the potential that remittances possess for boosting local economies, it
findings. I have already discussed that early research in the 1980¶s like Reichard¶s
showed that remittances increased inequality. More recent studies have looked at the
A study by Taylor and Yitzhaki (1989 and 1988) looked at the impact of remittances on
inequality in two villages in Mexico, one with a long history of migration and another
that was newer to the migration scene. Their findings show that the effect of remittances
on inequalities can change over time and is dependent upon how accessible migration
information and contacts become to the village population. If migration contacts and
information are spread freely among households, migration and receipt of remittances in
poorer households is likely to happen and can reverse the effects on remittances on the
and Rapaport (2004) in which they looked at two different sets of data, one which
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consisted of data from 57 rural Mexican communities and another which gave a
representative sample of 97 rural Mexican communities. From this data they found that
the presence of migration networks increased the chances of migration, and that
communities with a higher level of migration experienced less inequality. They also
noted that migration can increase inequality in communities with lower rates of
migration; however the inequality reduces as the migration levels increase. (Rapoport
Binford (2003) argues that discussions that show remittances as reducing inequality are
flawed, he believes that as the sending of remittances increase so will the inequalities
(Cohen, Jones and Conway, 2005: 90). This on-going debate has yet to be resolved but
Cohen, Jones and Conway (2005) shed a positive light on the argument as they note that
many current studies have demonstrated that class differences in Mexico are decreasing.
They also point one simple but important piece of information µrural Mexican
communities were stratified socially and economically long before the onset of
migration¶ (90).
The arguments surrounding the positives and negatives of the impacts of remittances
upon devoplment and the increase or decrease of inequality they may cause, sometimes
overshadows the real potential they can have for improving the life of many people. In a
Oaxaca, they inform us of the living conditions of some of the Mexican population. This
demonstrates how migration becomes a necessity, rather than a luxury for some
Mexican households. They report that0 in the state of Oaxaca µover 46 percent of the
municipalities have a high degree of poverty, only 59% of households have a sewer
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system, about 35% of households lack portable water, and more than 10% of households
have no electricity¶ (11). It is therefore understandable that Oaxaca has a high rate of
Oaxaca is just one example of how bad situations can be in rural Mexico. Other reports
estimate that µmore than half of rural Mexican lives in poverty and 25 percent live in extreme
poverty¶ (Wainer, 2011). So it really comes as no surprise that these people choose to migrate
and send back remittances to provide the basic needs to their families. It is evident that for
some Mexicans, migration is a key factor to their household¶s well-being and survival. One
must question how these people would survive without the option of migration.
Scholarly discussions surrounding remittances while failing to show the real necessity of
survival for some households also tend to fail to take into consideration some of the lengths
people go to, to survive and some of the dangers they are faced with. The decision to migrate
is no easy one and crossing the border is no simple task as migrants become victims of rape,
theft, murder and accidental death in the process. (Binford, 2003: 323). In 2005, 465 people
trying to cross the border from Mexico into the U.S died of cold, heat, thirst, hunger, or were
shot (Hall, A: 308). This can leave families faced with devastating consequences and having
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The practice of using remittances as a tool for survival may work well as a palliative for the
immediate needs of some households, but this is by no means a cure to the real problem.
With the strengthening or borders controls, growing insecurity in the economy of the U.S and
the growing pressure from U.S nationals on the government to curb immigration we are left
to wonder what lies in the future for Mexican immigrant households and their communities.
The increase in Home Town Associations (HTAs) and government matching schemes
appears to be having positive impacts on some communities, the next part of this assignment
will explore these and ask the question of just how capable they are of channelling some
remittances, to aid a more sustainable development that creates new opportunities and
In recent years some scholars have turned their attention towards the growing phenomenon of
HTAs. Home Town Associations are organisations formed by Mexican migrants in the U. S
to raise funds and organize projects in their hometowns in Mexico. HTA¶s raise money
through private donations and fundraising activities such as raffles, dances and rodeos, some
of the HTAs also have membership funds that contribute to the donations they send back
home. These funds are sent back to their hometown in the form of collective remittances to
invest in projects in their local community, such as the construction or renovation of schools,
streets and health care facilities, funding of schools, old people¶s homes and nurseries,
donations of supplies for hospitals and schools and the setting up of local businesses. To
assist the HTA¶s in their projects the government has set up fund matching programmes such
as the 3x1 Program for Migrants, a program implemented in 2002 to match the funds from
The purpose of the programme is to increase the coverage and the quality of
basic social infrastructure in localities with a high proportion of population
living in poverty, social backwardness or high migration, following the
investment initiatives of migrants abroad. It also aims to strengthen links
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The different levels of government act foremost as financial sponsors and have no
involvement in the decisions made by HTAs and their hometowns. All projects are decided
by the migrants, however different HTAs have different organising structures. Some HTAs
will make the decision of what projects to implement back in U.S and just have a contact
person in the hometown; this set-up can be criticized as migrants in the U.S might lack
awareness of the real need of their hometowns. Other HTAs choose to work with counterpart
associations in their hometown, giving them an increased knowledge of the needs of their
communities. The final part of this assignment will focus on the impact that HTAs can have
on community development and some of the scholarly arguments this has provoked
Orozco and Welle (2006) conducted a study in four rural communities in Jerez, Zacateca to
find the extent to which HTA matching grant projects were enhancing community
development. For the study they created a scorecard in which they intended to rank each
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adjoining primary and secondary school that had been in a bad condition for over a
decade. This project also enabled the school to now offer adult education and
computer classes This project was overseen by students¶ parents who later went on to
join the school board and still play a part in the decision making of the school. The
members of the community also assist by donating a small fee for computer classes
and the school continues to receive funds from the HTA to keep up the repairs and
for seven ladies who had set up a sowing cooperative. The women oversaw the
construction of this project and then applied for a government loan to assist with the
jobs for women are very scarce. So opportunities like this are really capable of
ap Sauz de los García: Potable Water Project. After 25 years of trying to bring potable
water to the community, a project funded by HTAs and the 3X1 program made this a
reality. This installation is very sustainable due to its simple maintenance and a long
life span. More importantly it serves a basic need that all the community can benefit
from.
nine residents of the community to produce lambs for the market, they purchased 200
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lambs, corrals and feed with their initial funding. Since this project was launched it
has raised enough income to sustain itself and now has a livestock of 1000 lambs.
These projects provide an insight of how collective remittances and government matching
programs can enhance communities and everyday people¶s lives. After analysing the projects
with their ownership, correspondence, sustainability criteria, Orozco and Welle concluded
that HTAs were increasingly playing a part in the development of Mexican communities. All
these projects had involved and enhanced the lives of some members of the community;
however the degree of participation and ownership is dependent on the dynamics of the
project. They gave good scores for correspondence on all of these projects, but although they
found that these projects met the basic needs of the people, one must question if projects
based on 7 ± 9 people really benefit the basic needs of all the community. They note that the
lamb producing and water producing projects show great hopes of being sustainable, but the
micro enterprise has yet to be able to sustain itself which causes some worry, as other people
could be benefitting from the money invested in this and putting it to better uses. Also the up
keeping of the school is dependent on donations, so if this ceases the school could face
returning to its original state. The score card below demonstrates how these projects measure
up against the criteria used for this research. Orozco and Welle suggest using these
scorecards to measure future projects. It is clear that some research into the potential of these
projects should be done before projects are given investment to ensure that some long term
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Although it is questionable if some of these projects were putting the basic needs of the
community first, they have all enhanced the life of their participants in some ways. I have yet
to address however if these projects are really enhancing the lives of the most needed in
society.
Aparicio and Meseguer (2008) undertook a study to evaluate the capacity of the 3x1 program
to target the poorest municipalities as they were concerned that the program was favouring
municipalities with long histories and high levels of migration which were therefore better
organized. Analysing data of municipal participation in the 3x1 program they discovered that
µvery poor municipalities receive lower amounts and fewer projects than wealthier localities
with similar levels of migration¶ (3). They note that even though the most likely to participate
in the 3x1 program were the poor, they received fewer projects and less quantities of money
than better off municipalities, indicating that those with real need were not the main
benefactors of these projects. Aparicio and Meseguer were also concerned that clientelistic
practices were occurring within the program, as previous research had found that local
politicians in Jalisco had used the 3x1 programme to try and buy votes and that in Moreal¶s
election in Zacatecas migrants had been given positions in cabinet in acknowledgement to the
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electoral support he had received from HTAs. They found that states and municipalities ruled
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(PAN), the governing political party in Mexico µwere more
likely to participate and to receive more projects¶ (25). It is important to acknowledge that it
is the better off municipalities that tend to vote for PAN, which places a doubt on the 3x1
Villacrés (2008) suggests that scholars should move beyond arguments of political influence
on HTAs and instead consider their ability to deepen democracy. She argues that µHTAs
have the potential to deepen democracy in four significant ways¶. Firstly by nurturing civil
society through the creation of strong networks of civic engagement between migrants,
community residents and local government in which they are all working together towards a
same objective. µthis nurtures civic consciousness and fosters a sense of community¶ (9), This
in turn promotes inclusion and gives a sense of citizenship that is crucial to the deepening of
democracy. Secondly she notes that HTAs foster the active practice of politics. Political
democracy. HTA¶s encourage citizens to practice politics enabling them to make claims for
development needs in their communities and proposing solutions for these, this opens up
spaces that facilitate communication and engagement between actors at all levels in which
hierarchal hegemonic power structures become relaxed, opening up spaces for more parallel
power relations. Villacrés¶s third argument is that HTA state partnerships increase state
accountability and transparency. Like in most Latin American countries, Mexico¶s state-
civil society relations have been characterised by patronage and populism in which citizens
become clients and lack means of holding the government accountable for their actions.
µHTAs facilitate consultation between the local state and civil society through constant
feedback and negotiation... allow migrants and hometown residents to break clientelistic
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chains and effectively engage the state as autonomous but equal actors¶ (11) These new
relationships have the potential to increase accountability and transparency however there is a
risk of state becoming more accountable to the HTA but not the community at large, again
this demonstrates that community members must play a bigger part in these projects
especially if a deepening of democracy is to be achieved. The final point that Villacrés raises
is that HTAs can reduce inequality and social exclusion by promoting popular participation
through institutions that allow migrants and community members to play an active and equal
role in their own futures. However HTAs must take responsibility and encourage avoiding
use of their new found positions for personal benefit. Villacrés provides a good argument of
how HTAs can deepen democracy and enhance citizenship in rural communities but this is
completely dependent on HTAs becoming more involved with people in their hometowns,
creating spaces of equal deliberation and therefore promoting participation of all members of
society.
This assignment has provided an insight into how individual and collective remittances can
as freedom it will now assess the weaknesses and strengths of remittances as a means of
Sen (1999: 39) categorizes economic facilities as µopportunities that individuals respectively
exchange¶. Remittances are primarily an economic resource that allows its benefactors to
enhance their lives; the level of enhancement however is dependent upon many factors, like
the number of dependents, age of household members and investment opportunities in the
community. For a household with very limited resources remittances become a great source
of freedom and even though their chances to invest productively are limited, the impact of
development on these households has been positive just as it has been to those who have had
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the ability to invest productively and embark on projects that will bring extra benefits for
become over dependent on these and members of some households choose not to continue in
or look for employment. Increased inequality would also constrict the positive impact that
remittances can have on household and community development but considering that
Sen refers to social opportunities as µthe arrangements that society makes for education,
healthcare and so on, which influence the individual¶s substantive freedom to live better¶.
Remittances show great potential for enhancing development in this way. Many remittance
receiving households invest in education, healthcare and improved housing which in turn also
creates more opportunities for employment of teachers, doctors, builders and so on. HTAs
can potentially have a huge impact on development in this sense investing in schools,
ambulances, churches etc. However they must engage fully with the community to ensure
that the basic needs of these are taken into consideration and ensure the main benefactors
become those who are most in need. Governments could assist by creating a structure of
allocation of matching funds in which the worst off and most in need receive the most
investment, it appears unfair that small groups are receiving funds to set up small businesses
when other members of the population are struggling with basic resources and infrastructure.
A score card similar to that used by Orozco and Welle (2006) in their study would help to
assess the potential strengths and weaknesses of future projects. Sustainability and
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HTAs show great potential as a means of enhancing political freedom. They have allowed
migrants and their benefactors to become political agents of their communities and they
provide immense opportunities for enhanced citizenship and the deepening of democracy.
However, this is dependent on them promoting political pluralism and creating stronger ties
and enhanced communication with their home communities. They must aim to empower
there communities as a whole as not utilize their new found power in self interest. It is also
important that they are actively involved in discussion with their communities to assess the
Remittances show the potential to have a positive long lasting impact on rural communities in
Mexico, and for many Mexicans are tools for survival. As HTAs grow in numbers one can
envisage huge developmental change in rural communities, however HTAs must take
responsibility along with the government to ensure that projects are worthwhile and benefit
importance to remember that remittances to Mexico are heavily dependent on the U.S, and
that the period of economic instability we live in is full of uncertainties. It seems that the U. S
will continue to need immigration to sustain their economy but the Mexican Government and
HTAs need to promote sustainable development to improve and secure the livelihoods of
migrant communities.
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Aparicio, F.J and Meseguer, C. (2008) µCollective Remittances and the State: The 3x1
programme in Mexican Municipalities¶ Visiting Resource Professor papers. The University
of Texas at Austin. September 15th 2008. http://repositories.lib.utexas.edu/handle/2152/4059
Accessed 29th December 2010.
Cohen, J., Jones, R. and Conway, D (2005) µWhy Remittances Shouldn¶t Be Blamed for
Rural Underdevelopment in Mexico: A Collective Response to Leigh Binford¶ Critique of
Anthropology, Vol. 25, No. 1, 87-96.
Durand, J. and Massey, D.S (1992) µMexican Migration to the United States: A Critical
Review¶ Latin American Research Review, Vol. 27, No.2, 3-42.
Durand, J., Parrado, E.A and Massey, D.S. (1996) µMigradollars and Development: A
Reconsideration of the Mexican Case¶ International Migration Review, Vol. 30, No. 2, 423-
444.
Hall, A.L. (2007) Moving Away from Poverty: Migrant Remittances, Livelihoods, and
Development, in Narayan, D. and Petesch, P. O
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OPalgrave Macmillan: Hampshire.
Inter-American Development Bank (2010) Remittances to the Latin America and the
Caribbean in 2009: The impact of the global financial crisis.
http://www.iadb.org/document.cfm?id=35101526 Accessed 5th Jan 2011.
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Pew Hispanic Centre. (2009) Mexican Immigrants: How Many Come? How Many Leave?
http://pewhispanic.org/reports/report.php?ReportID=112 Accessed 5th Jan 2011.
Wainer, A.(2011) µDevelopment and Migration in Rural Mexico¶ Bread for the World
Institute Briefing Paper, No. 11, January 2011. www.bread.org Accessed 13th January 2011.
Zaráte- Hoyos, G.A. (2005) The Development Impact of Migrant Remittances in Mexico, in
D. Terry and S.R. Wilson
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American Development Bank: Washington D.C .