Mexico and the Mexican Community in the United States

Remittances

by Editors

Mexican migrants collectively send over $20 billion annually in remittances to Mexico from the United States, which greatly improves living standards and influences the Mexican economy, especially in regions where remittances are concentrated. These articles address the effect of remittances, including the 3×1 program designed to maximize the local development impact of remittance flows. 

The Development and Fiscal Effects of Emigration on Mexico

This report, published by the Migration Policy Institute, examines the impact of the diaspora on the economic development of Mexico. It begins by determining the demographic of those who emigrate from Mexico, including patterns in age, gender, and socioeconomic standing. This profile is then used to determine further effects within Mexico, both from remittances and the labor markets across various industries. Remittances have a varying importance across different regions in Mexico, and this report highlights which areas are reliant more heavily on remittances, and the impact on social welfare due to remittances in these regions. Finally, the report introduces very intriguing and powerful statistics about the overall fiscal impact of emigration on Mexico.

Please click on the following link to download The Development and Fiscal Effects of Emigration on Mexico, written by Raymundo Campos-Vasquez and Horacio Sorbazo. 

 

Collective Remittances and the State: The 3×1 Program in Mexican Municipalities

This academic paper details the 3 x 1 Program in which federal, state, and municipal governments match the remittances sent to localities in Mexico by hometown associations (HTAs) to finance local public works and development projects. Begun in the state of Zacatecas, this program now includes 27 Mexican states and more than 1,000 HTAs abroad. The authors delve into the origins of the Program in Zacatecas and the economic and political biases that may affect the program.  The authors’ findings cast doubt on the Program’s promise to reduce poverty since poorer municipalities are less likely to participate in the program than those with medium poverty levels.  In their conclusion, they reflect on government intervention in remittances management and suggest changes to the Program to improve its effectiveness, including a poverty threshold communities must fall below to utilize the program.

Please click on the following link to read Collective Remittances and the State: The 3×1 Program in Mexican Municipalities by Francisco Javier Aparicio and Covadonga Meseguer. 

ABOUT THIS PROJECT

The U.S.-Mexico Network’s Imagining 2024 project is designed to provide readers a quick overview of key issues in US-Mexico relations – the background of the issue, its current state, where we ought to be by 2024, and how to get there.

 

Each short essay is coupled with suggested background readings for those interested in a more detailed understanding of the issue at hand.  And as an electronic publication, both the essays and their associated resource pages are updated as needed to keep the information and analysis fresh.
 

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LATEST NEWS

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Latest News: The Mexican Diaspora

by Editors
Domestic developments in both Mexico and the United States are spurring changes in Mexican communities, particularly in regards to remittances and Hometown Associations. Find here the latest publ...more.