Briefing Papers Number 11, January 2011 | Page 3

program focused on law enforcement assistance to Mexican (and, to a lesser extent, Central American) security agencies. Through this program, U.S. assistance to Mexico increased from $65 million in fiscal year 2007 to almost $406 million in fiscal year 2008.16 In 2009, total State Department assistance to Mexico was $786.8 million. Of this total assistance package, $753.8 million—96 percent of U.S. funds to Mexico—was directed toward military and drug enforcement assistance. Although it’s dwarfed by the $10 billion annual border enforcement budget, the Mérida Initiative dominates U.S. foreign assistance to Mexico.17 In 2009, U.S. development assistance that could be directed toward job-creation projects that reduce migration pressures totaled $11.2 million, or .01 percent of total U.S. assistance (see Table 1 on next page). The Mérida Initiative increased total U.S. assistance to Mexico but decreased the importance of economic development in the overall Mexican foreign assistance agenda.18 There are U.S. government agencies other than the United States Agency for International Development (USAID) and the State Department that focus on poverty reduction and rural development in Latin America, but within the entirety of U.S. foreign assistance to Mexico, poverty reduction and economic development remain a low priority.19 USAID’s lack of emphasis on supporting rural Mexico—where poverty and migration are concentrated—is part of a global foreign assistance trend beginning in the 1980s that de-emphasized agricultural development.20 In spite of the growing interest, discussion among U.S. policymakers and practitioners on migration and development has largely been theoretical. Other than remittance projects, there are few models of how to design and implement development projects that seek to reduce migration pressures. In order to translate conceptual discussions into practice, policymakers and practitioners need to know what works in terms of development in migrant-sending communities.21 A Focus on Rural Mexico Mexico’s countryside is one of the most promising environments to invest in rural development to reduce migration pressures. Mexico has the 14th largest economy in the world, but it is also extraordinarily unequal.22 Depending on the measure, between one third and half of Mexicans are www.bread.org The Mérida Initiative Mexico has a long history of producing and supplying drugs for the U.S. market. Today, 90 percent of the cocaine entering the United States passes through Mexico.1 Upon taking office in December 2006—and after a steady increase in drug trafficking violence—Mexican President Felipe Calderón declared his intention to fight the country’s entrenched cartels with unprecedented force. For decades the cartels were protected by Mexico’s long-ruling Institutional Revolutionary Party (PRI by its Spanish acronym), which served as an arbiter and regulator of the drug trade, thereby minimizing conflict among competing trafficking organizations. But when the PRI began to weaken during the 1990s, its ability to control the cartels diminished and drug traffickers began settling conflicts among themselves, through violence. Adding to the escalating intra-cartel violence and in response to Calderón’s crackdown, the cartels started to target Mexican security forces. Since 2006, the conflict has cost an estimated 28,000 lives—more than 10,000 in 2010 alone.2 Viewing the rising violence as a potential threat to national security, the United States government has been a strong supporter of Calderón’s attempt to dismantle the cartels. This support is expressed through the Mérida Initiative. Named after the Mexican city in which Calderón and U.S. President George W. Bush solidified the agreement in October 2007, the three-year $1.8 billion initiative is currently the United States’ largest foreign assistance package for the ]