In the "good old days" it was Mexico who kept Spain alive with silver remissions. So much wealth was
produced that Spain never had to get off its behind and do an honest days work. When the silver
petered out, Spain converted into the economic basket case of Europe for the next several centuries.
Mexico is in similar shoes now. It´s economy is heavily subsidized by remissions from Mexican nationals
abroad, to the tune of an estimated 20 billion US dollars in 2005.
produced that Spain never had to get off its behind and do an honest days work. When the silver
petered out, Spain converted into the economic basket case of Europe for the next several centuries.
Mexico is in similar shoes now. It´s economy is heavily subsidized by remissions from Mexican nationals
abroad, to the tune of an estimated 20 billion US dollars in 2005.
Released 04 June 2005 By Frontera NorteSur (FNS): U.S.-Mexico border news
More evidence has emerged that remittances from migrants working in the
United States are one of big engines driving today's Mexican economy. Recent
projections from the Bank of Mexico estimate that dollar remittances for 2005
will reach at least $20 billion dollars, an amount double the earnings from
the vegetable export sector of the economy promoted under the North American
Free Trade Agreement. An earlier study by the U.S.-based Pew Hispanic Center
calculated that one-fourth of Mexico's 24 million households receive
remittances from the United States.
The Pew study credited remittance income for fueling consumer demand in Mexico
and boosting the domestic construction industry. Many migrants and their
families use their U.S dollars to build homes or complete existing ones. Clued
by the dollar flow, the Mexican government has launched a new mortgage program
that will be financed with remittances.
According to the Bank of Mexico, 51 million money transfer operations from the
United States to Mexico are realized each year, with each transaction
averaging $326 dollars. The business has been very profitable for U.S. banks
and other firms which charge fees for the money transfers. A report by the
Washington-based National Council of La Raza estimated that from mid 2002 to
early 2004, about 400,000 new bank accounts were opened in the United States
at branches which offer remittance services.
Banorte, the only bank left in Mexico which is still 100 percent Mexican-
owned, ts taking note of the trend and planning to open a bank and money
transfer business in the United States, according to Luis Pena Kegel, the
company's general director. Ultimately, many of the remittance dollars are
recycled in border cities like El Paso and Laredo by Mexican shoppers who
prefer buying on the U.S. side.
Source: La Jornada, June 1, 2005. Article by Roberto Gonzalez Amador
http://www.immigrantsolidarity.org/cgi-bin/datacgi/database.cgi?file=Issues&report=SingleArticle
&ArticleID=0248
More evidence has emerged that remittances from migrants working in the
United States are one of big engines driving today's Mexican economy. Recent
projections from the Bank of Mexico estimate that dollar remittances for 2005
will reach at least $20 billion dollars, an amount double the earnings from
the vegetable export sector of the economy promoted under the North American
Free Trade Agreement. An earlier study by the U.S.-based Pew Hispanic Center
calculated that one-fourth of Mexico's 24 million households receive
remittances from the United States.
The Pew study credited remittance income for fueling consumer demand in Mexico
and boosting the domestic construction industry. Many migrants and their
families use their U.S dollars to build homes or complete existing ones. Clued
by the dollar flow, the Mexican government has launched a new mortgage program
that will be financed with remittances.
According to the Bank of Mexico, 51 million money transfer operations from the
United States to Mexico are realized each year, with each transaction
averaging $326 dollars. The business has been very profitable for U.S. banks
and other firms which charge fees for the money transfers. A report by the
Washington-based National Council of La Raza estimated that from mid 2002 to
early 2004, about 400,000 new bank accounts were opened in the United States
at branches which offer remittance services.
Banorte, the only bank left in Mexico which is still 100 percent Mexican-
owned, ts taking note of the trend and planning to open a bank and money
transfer business in the United States, according to Luis Pena Kegel, the
company's general director. Ultimately, many of the remittance dollars are
recycled in border cities like El Paso and Laredo by Mexican shoppers who
prefer buying on the U.S. side.
Source: La Jornada, June 1, 2005. Article by Roberto Gonzalez Amador
http://www.immigrantsolidarity.org/cgi-bin/datacgi/database.cgi?file=Issues&report=SingleArticle
&ArticleID=0248
References
La Jornada - Mexico Dangerously Dependent On Flight of Migrant Workers to America
Where did the silver go
La Jornada - Mexico Dangerously Dependent On Flight of Migrant Workers to America
Where did the silver go
These are 2 personal anecdotes reflecting on this indirect welfare program.
1. A friend of mine, once one of Mexico´s largest foliage & orchid exporters in Atlixco (near Puebla), said he
had to cut down production because he could not find employees, because too many were receiving
remittances from the US, and were not willing to work full weeks.
2. The owner of the Tuxtlas´s largest building supply chain, tells me his stores could not survive without the
remittance dollars spent locally.
1. A friend of mine, once one of Mexico´s largest foliage & orchid exporters in Atlixco (near Puebla), said he
had to cut down production because he could not find employees, because too many were receiving
remittances from the US, and were not willing to work full weeks.
2. The owner of the Tuxtlas´s largest building supply chain, tells me his stores could not survive without the
remittance dollars spent locally.
Economy of Los Tuxtlas
Remissions
Remissions
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