Transnationalism - El Salvador

27
Transnationalism: El Salvador – Los Angeles UCLA June 5, 2010

description

 

Transcript of Transnationalism - El Salvador

Page 1: Transnationalism - El Salvador

Transnationalism: El Salvador – Los Angeles

UCLA June 5, 2010

Page 2: Transnationalism - El Salvador

Introduction • L.A/CA – U.S. & E.S. Economy 

Where are the Salvadorians?

• Vicious Cycle - Current Situation

Banking the UnbankedExploitation Enforcement Policies

• Policies Implication - Scenarios 

Legalization VS Deportation Empowering the Diasporas via New

Technologies

Page 3: Transnationalism - El Salvador

El Salvador foreign born population in the US

Page 4: Transnationalism - El Salvador

Salvadoran Immigrants in Los Angeles

Page 5: Transnationalism - El Salvador
Page 6: Transnationalism - El Salvador

.-, 10

90019

90018

90010

90038

90028

90016

(/10 1

9 0 0 2 5

R = 2 .5 M ile s

R = 5 .0 M ile s

.-,40 5

90404

90402

90405

90291

90066

90292

90230

90034

90064

90024

90077

90049

90272

90232

90034

90035

90210

90401

90403

90230 90302

90043

90048

9021190212

90067

90066

N

2 0 2 4 M ile s

F o re ig n B o rn in E l S a lv a d o r b y C e n s u s T ra c t01 - 1 0 01 0 1 - 5 0 05 0 1 - 1 0 0 01 0 0 1 o r m o re

M a jo r H ig h w a ys a n d In te rs ta te s

.-, 10

90019

90018

90010

90038

90028

90016

(/10 1

9 0 0 2 5

R = 2 .5 M ile s

R = 5 .0 M ile s

.-,40 5

90404

90402

90405

90291

90066

90292

90230

90034

90064

90024

90077

90049

90272

90232

90034

90035

90210

90401

90403

90230 90302

90043

90048

9021190212

90067

90066

N

2 0 2 4 M ile s

F o re ig n B o rn in E l S a lv a d o r b y C e n s u s T ra c t01 - 1 0 01 0 1 - 5 0 05 0 1 - 1 0 0 01 0 0 1 o r m o re

M a jo r H ig h w a ys a n d In te rs ta te s

.-, 10

90019

90018

90010

90038

90028

90016

(/10 1

9 0 0 2 5

R = 2 .5 M ile s

R = 5 .0 M ile s

.-,40 5

90404

90402

90405

90291

90066

90292

90230

90034

90064

90024

90077

90049

90272

90232

90034

90035

90210

90401

90403

90230 90302

90043

90048

9021190212

90067

90066

N

2 0 2 4 M ile s

F o re ig n B o rn in E l S a lv a d o r b y C e n s u s T ra c t01 - 1 0 01 0 1 - 5 0 05 0 1 - 1 0 0 01 0 0 1 o r m o re

M a jo r H ig h w a ys a n d In te rs ta te s

UCLA

Page 7: Transnationalism - El Salvador

.-, 10

.-, 110

.-, 5

.-, 5

.-, 5

.-, 10

"!110

(/10 1

9 0 0 1 7

R = 2 .5 M ile s

R = 5 .0 M ile s

9 0 0 0 4

9 0 0 2 9

9 0 0 2 7

9 0 0 2 0

9 0 0 1 9

9 0 0 1 8

9 0 0 1 1

9 0 0 2 1

9 0 0 1 5

9 0 0 0 6

9 0 0 5 79 0 0 0 5

9 0 0 2 6

9 0 0 1 2

9 0 0 6 3

9 0 0 3 1

9 0 0 6 5

9 0 0 3 9

9 0 0 5 8

9 0 0 2 3

9 0 0 3 79 0 0 6 2

9 0 0 1 0

9 0 0 3 8

9 0 0 2 8

9 0 0 1 6

9 0 0 7 1

9 0 0 1 4

9 0 0 0 7

N

2 0 2 4 M ile s

F o re ig n B o rn in E l S a lv a d o r b y C e n s u s T ra c t01 - 1 0 01 0 1 - 5 0 05 0 1 - 1 0 0 01 0 0 1 o r m o re

M a jo r H ig h w a y s a n d In te rs ta te s

.-, 10

.-, 110

.-, 5

.-, 5

.-, 5

.-, 10

"!110

(/10 1

9 0 0 1 7

R = 2 .5 M ile s

R = 5 .0 M ile s

9 0 0 0 4

9 0 0 2 9

9 0 0 2 7

9 0 0 2 0

9 0 0 1 9

9 0 0 1 8

9 0 0 1 1

9 0 0 2 1

9 0 0 1 5

9 0 0 0 6

9 0 0 5 79 0 0 0 5

9 0 0 2 6

9 0 0 1 2

9 0 0 6 3

9 0 0 3 1

9 0 0 6 5

9 0 0 3 9

9 0 0 5 8

9 0 0 2 3

9 0 0 3 79 0 0 6 2

9 0 0 1 0

9 0 0 3 8

9 0 0 2 8

9 0 0 1 6

9 0 0 7 1

9 0 0 1 4

9 0 0 0 7

N

2 0 2 4 M ile s

F o re ig n B o rn in E l S a lv a d o r b y C e n s u s T ra c t01 - 1 0 01 0 1 - 5 0 05 0 1 - 1 0 0 01 0 0 1 o r m o re

M a jo r H ig h w a y s a n d In te rs ta te s

.-, 10

.-, 110

.-, 5

.-, 5

.-, 5

.-, 10

"!110

(/10 1

9 0 0 1 7

R = 2 .5 M ile s

R = 5 .0 M ile s

9 0 0 0 4

9 0 0 2 9

9 0 0 2 7

9 0 0 2 0

9 0 0 1 9

9 0 0 1 8

9 0 0 1 1

9 0 0 2 1

9 0 0 1 5

9 0 0 0 6

9 0 0 5 79 0 0 0 5

9 0 0 2 6

9 0 0 1 2

9 0 0 6 3

9 0 0 3 1

9 0 0 6 5

9 0 0 3 9

9 0 0 5 8

9 0 0 2 3

9 0 0 3 79 0 0 6 2

9 0 0 1 0

9 0 0 3 8

9 0 0 2 8

9 0 0 1 6

9 0 0 7 1

9 0 0 1 4

9 0 0 0 7

N

2 0 2 4 M ile s

F o re ig n B o rn in E l S a lv a d o r b y C e n s u s T ra c t01 - 1 0 01 0 1 - 5 0 05 0 1 - 1 0 0 01 0 0 1 o r m o re

M a jo r H ig h w a y s a n d In te rs ta te s

Downtown Los Angeles

Page 8: Transnationalism - El Salvador

  United States California Los Angeles El SalvadorSalvadorians in U.S.

Salvadorians in

California

Salvadorians in Los

Angeles

Population (m) 307.374 37 9.86 7.2 2.5 1.4 1.0

GDP(bn) 14,256.275 1,847 339 22.3 72.5 44.94 32.0

GDP per capita (us) 46,380.912 38,956 48,610 3,547 29,567 32,050 32,050

Remittances (m) 4.6 2.6 2.0

Comparison of the United States, California,

Los Angeles and El Salvador According to GDP and Population

Sources: U.S. Department of State (2007-2009), International Monetary Fund (2009), Econpost.com (2008), bea.gov (2006), U.S. Census Bureau, Population Division (2008), citymayors.com/statistics (2008). Hinojosa, Empowering Globalization from below: New Technologies, Remittances and Micro-Finance, March 25, 2009

Page 9: Transnationalism - El Salvador

Population GDP (VA) GDP/ per capita

Remittances

El Salvador 7.2 m 22.3 bn 3,547 us + 2.83 bn

ROW Salvadorians

3.3 86.13 26,100 35

U.S. Salvadorians

2.5 72.5 29,567 15

California Salvadorians

1.4 44.94 32050 10

Source: IMF, WB, El Salvador Ministry of Foreign Relations. Data estimated for year 2005

Comparison of the El Salvador, Global, United States, and California According to

Population, GDP and Remittances

Page 10: Transnationalism - El Salvador

Dutch Disease

Increase poverty for Migrant’s family in

the US and In El

Salvador

Lack of financial

institutions and

legalization for

immigrants

The Vicious Cycle

Page 11: Transnationalism - El Salvador

Banking the Unbanked

Page 12: Transnationalism - El Salvador

Background: The Unbanked Population

Hinojosa-Ojeda, Raul. “Reforming Financial Services for the Under-banked: Moving from a High-Cost/Cash-Based Limited Services Model to Low-Cost/Electronic Payments Multi-Service Empowerment” (UCLA: North American Integration and Development Center).

Page 13: Transnationalism - El Salvador

Identifying the Problem

-

Too many Americans lack the resources to build a stable foundation for financial success, where three-fourths of the unbanked are Latinos.

Pastor, Manuel. “Banking on LA” (University of Southern California) March 2009.

Page 14: Transnationalism - El Salvador

“It's expensive to be poor”

The unbanked resort to high cost financial alternatives, such as:

-pawnshops-payday lenders: charge 25-30 times the

average rate of credit cards-check cashing outlets: a regular user

loses $1,000/year from their salaryPastor, Manuel. “Banking on LA” (University of Southern California) March 2009.

Page 15: Transnationalism - El Salvador

The exploitation of immigrants in the work force.

•Undocumented workers are facing- Low wages- Harsh working conditions- Negative living conditions

• Income. The median annual personal earnings for Salvadorans ages 16 and older were $20,368 in 2008

•15.4% of Salvadorans in America live in Poverty.( From: Hispanics of Salvadoran Origin in the United States, 2008 )

Page 16: Transnationalism - El Salvador

• High financial service fees cause- A strain on the family sending remittance- A dependency on remittance for the

Salvadorian side.

• The lack of banking for Salvadorians in both America and El Salvador has caused - The poor to get poorer- A dependency on high cost financial services.

The Exploitation of immigrants – Financial Services

Page 17: Transnationalism - El Salvador

Temporary Protected Status (TPS)

• Salvadoran migration to U.S. mainly began during their civil war from 1979-1992.

• Salvadoran Population seen as “illegal” immigrants that needed work not refugees.

• Salvadorans who were granted “TPS” were allowed to stay temporarily to work legally.

• Reasons for the grant of TPS: 1990 Immigration Act (1st nationality granted TPS, TPS members can apply for DED (Deferred Enforced Departure) similar to TPS.

• 2nd reason: American Baptist Church (ABC) class action suit against Attorney General Thornburgh.

Gammage, Sarah. “Exporting People and Recruiting Remittances: A Development Strategy for El Salvador?.” Sage Publication, Inc. Latin American Perspectives, Vol. 33, No, 6 Migration, the Global Economy, and Latin American Cities (Nov. 2006), pp. 75-100. 26 Feb 2010.Bailey, J. Adrian, Wright, A. Richard, Mountz Alison, Miyares, M. Ines. “(Re)producing Salvadoran Transnational Geographies.” Taylor & Francis, Ltd.: Association of American Geographers. Annals of the Association of American Geographers, Vol 92, No. 1 (Mar. 2002), pp. 125-144. 26 Feb 2010.

Page 18: Transnationalism - El Salvador

ENFORCEMENT-ONLY POLICY

Today U.S. also enforces the “Enforcement-Only Policy,” but it failed it not only raised the “wage floor for U.S. economy, is also costly i.e. border patrol expenditures and still immigrant population of the United States has roughly tripled in size over the past two decades, from an estimated 3.5 million in 1990 to 11.9 million in 2008.

Figure 5: Unauthorized Immigrants in the United States,1990, 2000 & 2008

11.9

8.5

3.5

0

1

2

3

4

5

6

7

8

9

10

11

12

13

1990 2000 2008

Mil

lion

s

Source: Estimates by the Pew Hispanic Center; Office of Immigration Statistics (U.S. Department of Homeland Security); U.S. Immigration & Naturalization Service.

Hinojosa-Ojeda, Raul. “Raising the Floor for American Workers: The Economic Benefits of Comprehensive Reform.” January 2010.

Page 19: Transnationalism - El Salvador

El Salvadoran Contributions to the U.S.

Salvadorans are transnational's: ferrying goods, serving as couriers of money, and making purchases and investments that span national borders, even Salvadoran government reach out to U.S. Salvadoran communities through embassies and consular services to stimulate interests in investments.Remittances – Household survey data revealed that more than 20% of households in El Salvador have at least one family member overseas; In 2004, remittances to Latin America reached a little over $40 Billion U.S.2001 El Salvador was granted Dollarization of money : the International Monetary Fund and the World Bank helped.

Gammage, Sarah. “Exporting People and Recruiting Remittances: A Development Strategy for El Salvador?.” Sage Publication, Inc. Latin American Perspectives, Vol. 33, No, 6 Migration, the Global Economy, and Latin American Cities (Nov. 2006), pp. 75-100. 26 Feb 2010.

Page 20: Transnationalism - El Salvador

Immigration Reform Vs. Deportation

Page 21: Transnationalism - El Salvador

•Legalizing the nation’s unauthorized workers

Benefits:• Raise Wages

• Create Jobs

• Generate Additional Tax Revenue

• Transfers Vast Wealth

• Opportunity for Economic Development

Comprehensive Immigration Reform:

Page 22: Transnationalism - El Salvador

More Benefits:

• Increase in U.S. Gross Domestic Product .84%

•A cumulative $1.5 trillion in additional GDP.

•Help meet U.S. labor market needs◦24.7 million jobs ◦85% of the gap in the labor force.

-(U.S. Bureau of Labor Statistics, 2002)

Page 23: Transnationalism - El Salvador

Huge economic boom does result from legalization

Wages grew by 20%

Spending on their own education rose by 200%

“Sweat Shops”

Undocumented crossings

Page 24: Transnationalism - El Salvador

•Reduces U.S. GDP by 1.46 percent

•Deport over 4 million immigrant workers and their dependents

• ≙ cost to deport = between $206 billion and $230 billion over five years.

Mass Deportation

Page 25: Transnationalism - El Salvador

Legalization Can help lay the foundation for robust, just,

and widespread economic growth.

Page 26: Transnationalism - El Salvador

Virtuous Cycle

Micro- Credits

Global Capital Markets

E- Mobile Transfers

Receiving Remittance

s

Productive Investment

s

Growth

Global income

Widening Middle

Shrinking Bottom

Widening Middle

Page 27: Transnationalism - El Salvador

Questions

THANK YOU