Mexicans Send Less Cash Home, Bad News For Mexico

[mawilson 2,133]

Editor’s Note: Remittances are the second biggest source of foreign exchange for Mexico

after oil exports, but in the first six months of 2007, the rate of growth for remittances

slowed to a trickle compared to previous years. A new study of remittances to Mexico,

Latin and Central America conducted by Bendixen and Associates for Inter-American

Development Bank tries to uncover the reasons for the decline.

Spanish language newspapers report that money being sent back to Mexico has decreased

in the last few months. This news concerns many, considering that remittances to Latin America

account for more aid than the combined amount of foreign direct investment, and Mexico

is the number one recipient.

Al Dia, a Spanish language daily in Dallas, Texas, reported that economic analysts are citing

several factors as the explanation for this decrease, including less migration from Mexico

to the United States, lack of jobs in the construction industry, and other troubles in the U.S.

economy. However, Bendixen and Associates just released a study commissioned by the

Inter-American Development Bank that links the drop in remittances to the combination

of mounting economic difficulty and the crackdown on immigrants in specific states.

In the last few years, rate increases for remittances to Mexico have been around 20 percent.

Based on the newly released study, compiled from 900 interviews in June 2007 with immigrants

from Mexico and Central America, it is estimated that the increase for 2007 will be only 1 percent.

Sergio Bendixen, president of Bendixen and Associates, attributes this drastic change to the

hostile environment that immigrants in “new destination states” are facing. New destination

states have a lower percentage of immigrants compared to “traditional” states such as California,

New York, Florida, and Texas. The survey found that there has been no significant change in the

remittance patterns of Mexican immigrants in traditional states. The study also noted that there

has been no change in remittance patterns among Central-American immigrants, as the majority

reside in traditional states.

“In the destination states, life is a lot more difficult for immigrants than in Los Angeles, San Francisco,

or Phoenix,” Bendixen said. “When people aren’t treating you well and you feel threatened and

afraid, you hang on to your money because you never know when you will have to leave.”

Anti-immigration sentiment in the United States appears to be on the rise as local governments,

frustrated with Congress’ inability to address the issue of undocumented immigrants, have begun

to implement their own enforcement measures. These legislative measures, such as the ones

passed in Hazleton, Pa., Green Bay, Wis., and Beaufort County, S.C., are making it difficult for

immigrants to find good paying jobs by threatening businesses that hire undocumented immigrants

with fines and suspension of licenses.

These laws have a serious impact on the Latino immigrant community, whose members usually

come to the United States seeking better job conditions and salaries in order to better help their

families back home.

According to the Bendixen and Associates study, when asked whether it was easier, or more

difficult now, compared to a year ago, for a Latin-American immigrant to get a good paying job

in the United States, 82 percent of Mexican immigrants responded that it was more difficult. When

asked why they thought it was more difficult, 45 percent of respondents said immigration laws

(documents required) was the problem, while 21 percent said there were not enough jobs.

When asked what was currently the biggest problem for them and their families in the United

States, 30 percent of Mexican respondents said it was discrimination against immigrants and

24 percent said it was low salaries.

This major decrease in the amount of remittances to Mexico means that households in Mexico

that are in serious need of economic aid will lose billions of dollars they would normally receive.

“The feelings between U.S. and Mexico are already strained because of the rhetoric of the

immigration debate," Bendixen said. "Now it is clear that this immigration policy, and especially

the anti-Mexican climate created by the immigration debate, has resulted in billions of billions

of dollars that are no longer coming into Mexico.”

Bendixen also notes that the anti-immigrant sentiment is a problem for many U.S. communities.

“In many of these cities where immigrants feel unwelcomed and are beginning to leave in large

numbers, their economies have collapsed," Bendixen said. "They are living very difficult times

because immigrants provided so much of the labor.”

Although the prospect for comprehensive immigration reform seems dim in Congress, for now,

findings such as this indicate that immigration remains a critical issue not only to Americans and

immigrants, but also to families of immigrants living on the other side of the border. Commenting

on the importance of remittances for the immigration debate Bendixen said, “Anything that takes

the debate about immigration away from prejudices and brings it to the economic reality is a

good thing.”

A Conversation with Sergio Bendixen on Remittances

Listen to Sergio Bendixen discuss the decline in remittances and its implications. He spoke with

New America Media editor Sandip Roy on the radio show UpFront.

MP3

Source

[mawilson 2,133]

What, no-one is going to cry a river for Mexico?

[Mr. Big Dog 10,747]

What, no-one is going to cry a river for Mexico?

First things first. I was busy wiring some money to Mexico. You know, if less money is going there, more will come here. Trying to stem the tide there, buddy.

[mawilson 2,133]

What, no-one is going to cry a river for Mexico?

First things first. I was busy wiring some money to Mexico. You know, if less money is going there, more will come here. Trying to stem the tide there, buddy.

I find it interesting that to stop illegal immigration, all the government has to do

is place a tax on all the billions that are transferred out of the country, and many

illegal immigrants would find it unprofitable to come here in the first place.

(US citizens, legal residents and corporations would be exempt.)

[Mr. Big Dog 10,747]

What, no-one is going to cry a river for Mexico?

First things first. I was busy wiring some money to Mexico. You know, if less money is going there, more will come here. Trying to stem the tide there, buddy.

I find it interesting that to stop illegal immigration, all the government has to do is place a tax on all the billions that are transferred out of the country, and many illegal immigrants would find it unprofitable to come here in the first place.

(US citizens, legal residents and corporations would be exempt.)

You might be on to something. Can you just see the marches of illegals demanding their right to transfer funds out of the US not be touched? On the other hand, that would leave more money here to be taken to the ####### fights that seem to be quite popular with certain crowds...

Edited August 9, 2007 by Mr. Big Dog

[peejay 327]

Yes, another "woe is me" I can't understand why crooks hire us with open arms while the American public doesn't welcome us with open arms. If they really think long and hard about it they will eventually figure it out.

[mawilson 2,133]

Yes, another "woe is me" I can't understand why crooks hire us with open arms while the American public doesn't welcome us with open arms. If they really think long and hard about it they will eventually figure it out.

I don't know about you, but the term "new destination states" leaves an unpleasant

taste in my mouth.

It sounds as if the Mexican army has successfully invaded the "traditional states" and

now is moving on to other states, facing resistance from the civilian population.

I can just see Mexican war generals preparing their plan of attack - drawing maps and

locating enemy forces.

[buckeye6976 0]

[mawilson 2,133]

You might be on to something. Can you just see the marches of illegals demanding their right to transfer funds out of the US not be touched?

They are already blaming Western Union and other companies for the high remittance transaction fees.

Apparently, the poor in Mexico stay poor due to the price of sending money to Mexico.

"Studies show that if money-transfer fees were cut in half, 33 million people could be

lifted out of poverty in the developing world. Immigrant workers spend up to a week's

wages to pay these monthly fees; for families in their home countries, the fee represents

almost two months’ worth of wages."

Source

[peejay 327]

Yes, another "woe is me" I can't understand why crooks hire us with open arms while the American public doesn't welcome us with open arms. If they really think long and hard about it they will eventually figure it out.

I don't know about you, but the term "new destination states" leaves an unpleasant

taste in my mouth.

It sounds as if the Mexican army has successfully invaded the "traditional states" and

now is moving on to other states, facing resistance from the civilian population.

I can just see Mexican war generals preparing their plan of attack - drawing maps and

locating enemy forces.

By jove...I think you've got it! Here is the map that goes with your map and proves your theory. It's the 800 pound gorilla in the room that some people choose to ignore. Where do 12 to 20+ million illegal aliens live? Look at the maps. Where do they come from? Look at the maps. Except for the Indian reservations in the northwestern USA and Alaska I think most can figure it out. Jeez...this isn't rocket science or brain surgery folks. And it will be in your county soon if you don't wake up!

[Mirorgate 0]

I never got any billions sent to me.. sheesh... i'm gettin the short end of the stick here.

[Cassandra+Yuibi 0]

Yes, another "woe is me" I can't understand why crooks hire us with open arms while the American public doesn't welcome us with open arms. If they really think long and hard about it they will eventually figure it out.

I don't know about you, but the term "new destination states" leaves an unpleasant

taste in my mouth.

It sounds as if the Mexican army has successfully invaded the "traditional states" and

now is moving on to other states, facing resistance from the civilian population.

I can just see Mexican war generals preparing their plan of attack - drawing maps and

locating enemy forces.

I live in one of those West Texas counties on that map. The army has invaded.

I assure you that half the shops in my city are spanish with no english speaking

shop keepers. And I happen to work on a side of town which is almost all mexican

and it seriously p!sses me off that I get people coming in on a daily basis

DEMANDING I speak Spanish because they can't speak English. I've actually started

speaking to some of these people in German as a response when they say that because

I find their rage amusing.

[pedroh 21]

quiero mis billones!

lol