Developing countries have long realized the value of
migration. The government of the Philippines, for example,
actively seeks opportunities for its nationals to live and work
abroad. An Office of Foreign Workers provides a range of
different services to facilitate migration, including education
and training, job placement, overseas housing assistance,
legal services, and even medical insurance. The government
has also designed savings and loan products specifically for
overseas workers and has streamlined processes to make
it easier for people working abroad to send money home.
These remittances—money sent home by people working
in other countries—play a vital role in helping families cope
with poverty and build social and economic opportunities.
In 2007, migrant workers sent approximately $17 billion
in remittances home to the Philippines, equal to about 17
percent of the country’s GDP.17
For the United States, migration presents both a challenge
and an opportunity. Famously described as a “nation of
immigrants,” the United States has benefited tremendously
from the hard work, creativity, and entrepreneurship that
immigrants bring. The challenge is to find a balance in our
immigration policies that accommodates those who wish to
come to the United States in a way that does not compromise
national security and protects the rights of current U.S.
residents.
Restrictive yearly quotas on the number of skilled and
unskilled workers who can enter the United States leave too
few opportunities for people to enter the country legally.
Without a formal path to enter the United States, each year
tens of thousands of people undertake difficult, even deadly
journeys to enter illegally. In 2005, there were 1.3 million
apprehensions of individuals trying to cross into the United
States.18 That same year, some 470 people died crossing the
U.S.-Mexico border.19
Striking a better balance that promotes legal migration can
yield tremendous returns, experts suggest. A recent model
looked at the impact of increasing migration flows by 14
million people over 25 years. Using 2001 as a baseline for their
study, the researchers found that by 2025, individuals who
had the opportunity to migrate from developing countries
would generate $624 billion in annual income.20 While much
of this money would be spent in the developed country where
the immigrant resides, some would undoubtedly be sent
home to support family and friends through remittances.
The World Bank estimates that remittances topped $240
billion in 2007, twice the amount of official development
assistance provided by the 30 member countries of the
Organization for Economic Cooperation and Development
(OECD).21 In the home country, remittances help pay for
a wide array of goods and services, including food and
clothing, home improvement, education expenses, and
business development. In the current environment of high
4 Briefing Paper, August 2008
food prices, remittances are a lifeline that helps families
maintain access to food and avoid malnutrition.
The U.S. Agency for International Development
(USAID) is working to encourage the use of remittances
for development. In Jamaica, this approach has led to a
partnership between USAID and the Jamaica National Bank
(JNB) to develop the Jamaica National Remittance Program.
The initiative encourages Jamaicans living in the United
States to open bank accounts with JNB. As an alternative
to costly third-party wire transfer services, these accounts
facilitate the efficient transfer of remittance dollars.
Migration at the U.S. Southern Border:
Development, Desperation or Both?
The United States is home to more than 35 million
documented immigrants, nearly 11 million of them
from Mexico,22 but the official Census estimates miss
immigrants who came to the United States without
proper authorization or whose documentation has
expired. There are at least 12 million undocumented
immigrants living in the United States, approximately
half of them from Mexico and another quarter from
other countries in Central and South America.23
In no other region of the world do living conditions
and economic and social opportunities differ as
markedly as they do between the United States and
its southern neighbors, so it is little wonder that so
many people from these countries seek to better their
economic fortunes through migration. In Mexico, 17.6
percent of the population lives on less than $2 a day
and cannot afford to purchase a minimally nutritious
diet.24 Conditions are even worse in Central America.
More than 80 percent of the population in Nicaragua
and a third of the population in El Salvador, Guatemala,
and Honduras live on less than $2 per day.25
For most immigrant workers, migration is not
their first choice or even their best option—but it is
used when other opportunities to earn a living are
exhausted. In 2007, immigrants living in the United
States sent $47 billion back to friends and family
in their home countries.26 More than half of these
remittances, $25 billion, went to Mexico. The flow of
large amounts of remittance dollars can be used for
wider community development purposes. Through
Home Town Associations, for example, remittance
dollars to Mexico are matched 3 to 1 by the Mexican
government. A recent study of Hometown Associations
found that its funds helped pay for improvements to
public spaces and supported business development
for local entrepreneurs.27