© t. m. whitmore today migration continued mexico – us example remittances rural to rural...

© T. M. Whitmore

TODAY

•Migration continued

•Mexico – US example

•Remittances

•Rural to rural migrationRural to urban migration

•Social GeographiesWealth & incomeSocial 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 & EuropeSend ~ 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 b

© 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• Immigrants in US have total incomes

~ US$ 500 bAbout 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 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•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

billionGreater than the country's total

tourism incomeGreater than 2/3 of the value of

petroleum exportsAbout equal to 180% of the

country's agricultural exports.

© T. M. Whitmore

Spending Remittances

•Vast majority spent on household expensesRural residents get ~ 1/3 of all

remittancesInvestments 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?

Global Totals:~$US 301 billion

Source: © IADB

Remittances: The Human Face of Globalization

Quiroga, Mexico

© Thomas Whitmore

Source: © IADB

$1.2 b

$13.2 b

$5.2 b

$3.7 b

2006 estimates-note big increases

© 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

© T. M. Whitmore

Migration: 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

•Myriad of interacting factors “driving” migration

Amazonia

© David Carr

Sugar mill in S coastal Guatemala

© 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

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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 networksRole of “steps”Role of distance and costs

© T. M. Whitmore

Social Geography & Development: Wealth

•Average wealth in GDP (in PPP)/capita

•World ~ $9,940Lesser 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, MexicoArgentina, 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 averageCosta Rica, MexicoArgentina, Brazil, Uruguay Chile

GDP/capita

© T. M. Whitmore

Wealth distribution I•USA

Richest 20% have 40% of all incomePoorest 20% have 5% 65% in middle class

•GINI coefficientsUSA ~ 41Mexico ~46Bolivia ~60Brazil ~56Guatemala ~60

© T. M. Whitmore

Wealth distribution II•Latin America

Richest 20% have 50-65% of all income

Poorest 20% have 2-5%30% in the middleCountries with top 20% with more

than 50% of all incomeBrazil, Panama, Costa Rica, Argentina, Mexico, Peru, Venezuela

•Changing over time

•Varies within countries

GINI coefficients

© T. M. Whitmore

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 developmentBolivia; Ecuador; Paraguay; PeruEl Salvador; Guatemala; Honduras;

NicaraguaDominican Republic; Haiti