Skip to main navigation menu Skip to main content Skip to site footer
Migraciones Internacionales e-ISSN: 2594-0279

Papers

Vol. 5 No. 17 (2009): enero-junio, 2009

A View from the Inside: Grounding the Remittance-Development Link

DOI
https://doi.org/10.17428/rmi.v5i17.1089
Published
2017-05-23

Abstract

Research on the remittance-development link and policies for leveraging remittances for development have led to polarization and have obscured vital nuances in the relationship. One school of thought has adopted an overly optimistic view, placing an exaggerated emphasis on maximizing remittances as viable development tools. The other has assumed an overly pessimistic position, dismissing remittances as economic crutches and ephemeral solutions to poverty. Researchers have typically utilized quantitative methods that provide detached analyses. Against that backdrop, this article uses evidence from one Salvadoran municipality to provide an in-depth view of the remittance-development link at the local level, and it proposes four scenarios in which it manifests. Findings counter overly simplistic and polarized depictions in the literature and expose how those who live the remittance-development link perceive and experience it first hand in their households and communities. This article draws conclusions about the development potential of family versus collective remittances, as well as the importance of a balanced understanding of remittance-driven development that must be considered when furthering research and formulating policy.ResumenLa investigación y las políticas en torno al vínculo entre remesas y desarrollo han polarizado esta relación y, por ende, oscurecido importantes matices. Una corriente de opinión ha adoptado una posición optimista que destaca el potencial de las remesas como herramientas viables para el desarrollo. La otra, sin embargo, ha asumido una posición demasiado pesimista que rechaza las remesas por considerarlas un paliativo temporal a la pobreza y un impedimento para el desarrollo económico y social a largo plazo. Este artículo utiliza evidencia obtenida a través de estudios etnográficos y entrevistas en una municipalidad de El Salvador. Estos hallazgos contrarrestan las representaciones polarizadas y nos ofrecen un panorama detallado de los vínculos entre remesas y desarrollo local desde el punto de vista de quienes viven esta realidad en sus hogares y comunidades. Las conclusiones destacan el potencial de las remesas familiares versus las remesas colectivas en el contexto del desarrollo local, así como la importancia de contar con un entendimiento equilibrado al realizar investigaciones y formular políticas en esta materia.

Cover image

Keywords

  • local development
  • remittances
  • hometown associations
  • remittance- development link
  • El Salvador

How to Cite

Villacrés, D. N. (2017). A View from the Inside: Grounding the Remittance-Development Link. Migraciones Internacionales, 5(17), 39–73. https://doi.org/10.17428/rmi.v5i17.1089
Copyright Notice

References

  1. Acosta, Pablo, Cesar et al., What is the Impact of International Remittances on Poverty and Inequality in Latin America?, Washington, D. C., World Bank Policy Research, June 2007 (Working Paper, 4249). Available at<http://www-wds.worldbank.org/external/default/WDSContentServer/IW3P/IB/2007/06/08/000016406_20070608122322/Rendered/PDF/wps4249. pdf> (last accessed on April 15, 2009).
  2. Adams, Richard, “Worker Remittances and Inequality in Rural Egypt,” Economic Development and Cultural Change, vol. 38, num. 1, October 1989, pp. 45-71.
  3. Adams, Richard, Remittances and Poverty in Guatemala, Washington, D. C., World Bank Policy Research, September 2004 (Working Paper, 3418). Available at <http://www-wds.worldbank.org/external/default/WDSContentServer/IW3P/ IB/2004/10/19/000012009_20041019140801/Rendered/ PDF/3418WPS.pdf> (last accessed on April 12, 2009).
  4. Adams, Richard and John Page, International Migration, Remittances, and Poverty in Developing Countries, Washington, D. C., World Bank Policy Research, December 2003 (Working Paper, 3179). Available at <http://www-wds.worldbank.org/servlet/
  5. WDSContentServer/WDSP/IB/2004/01/21/000160016_20040121175547/Rendered/PDF/wps3179.pdf> (last accessed onApril 12, 2009).
  6. Adams, Richard and John Page, “The Impact of International Migration and Remittances on Poverty,” in Samuel Munzele Maimbo and Dilip Ratha (eds.), Development Impact and Future Prospects, Washington, D. C., World Bank, 2005.
  7. Aizenman, Nurith, “Money Earned in U.S. Pushes Up Prices in El Salvador,” Washington Post, May 14, 2006. Available at (last accessed on April 12, 2009).
  9. Andrade-Ekhoff, Katherine and Claudia Marina Silva-Avalos, Globalization of the Periphery: The Challenges of Transnational Migration for Local Development in Central America, San Salvador, El Salvador, Facultad Latinoamericana de Ciencias Sociales (Programa El Salvador), April 2003 (Working Paper).Available at <http://www.enlacesamerica.org/Final%20document%20globalization%20of%20the%20periphery1.pdf> (last accessed on April 12, 2009).
  10. Barham, Bradford L. and Stephen Boucher, “Migration, Remittances and Inequality: Estimating the Net Effects of Migration on Income Distribution,” Journal of Development Economics, vol. 55, num. 2, 1998, pp. 307-331.
  11. Bendixen, Sergio and Erin St. Onge, “Remittances from the United States and Japan to Latin America: An In-Depth Look Using Public Opinion Research,” in Donald F. Terry and Steven R. Wilson (eds.), Beyond Small Change: Making Migrant Remittances Count, Washington, D. C., Inter-American Development Bank, 2005.
  12. Brown, Stuart, “Can Remittances Spur Development? A Critical Survey,” International Studies Review, vol. 8, num. 1, 2006, pp. 55-75.
  13. Chami, Ralph, Connel Fullenkamp and Samir Jahjah, Are Immigrant Remittance Flows a Source of Capital for Development?, Washington, D. C., International Monetary Fund, 2005 (imfStaff Paper, vol. 52, num. 1). Available at <http://www.imf.org/external/pubs/ft/wp/2003/wp03189.pdf> (last accessed onApril 12, 2009).
  14. Cortés, Salvador, “El Salvador: Uso productivo de las remesas,” Uso productivo de las remesas en Centroamérica, Mexico, Economic Commission for Latin America (eclac), Subregional Headquarters, December 17, 1999 (LC/MEX/L.415).
  15. Cox Edwards, Alejandra and Manuelita Ureta, “International Migration, Remittances, and Schooling: Evidence from El Salvador,” paper presented at the Inter-American Seminar in Economicsorganized by National Bureau of Economic Research and the Monterrey University System, February 2003.
  16. De Haas, Hein, “International Migration, Remittances and Development: Myths and Facts,” Third World Quarterly, vol. 26, num. 8, December 2005, pp. 1243-1258.
  17. De Haas, Hein, Turning the Tide? Why ‘Development Instead of Migration’ Policies Are Bound to Fail, International Migration Institute, University of Oxford, 2006 (Working Paper, 2). Available at <http://www.imi.ox.ac.uk/pdfs/wp2-development-insteadof-migration-policies.pdf> (last accessed on April 12, 2009).
  18. Easterly, William, The Elusive Quest for Growth: Economist’s Adventures and Misadventures in the Tropics, Cambridge, mit Press, 2002.
  19. Fox, Jonathan and Xóchitl Bada, “Migrant Organization and Hometown Impacts in Rural Mexico,” Journal of Agrarian Change, vol. 8, num. 2 and 3, April and July 2008, pp. 435-461.
  20. Funkhouser, Edward, “Migration from Nicaragua: Some Recent Evidence,” World Development, vol. 20, num. 8, 1992, pp. 1209-1218.
  21. Gammage, Sarah, “Exporting People and Recruiting Remittances:
  22. A Development Strategy for El Salvador?,” Latin American Perspectives, issue 151, vol. 33, num. 6, November 2006, pp.75-100.
  23. Goldring, Luin, “The Mexican State and Transmigrant Organizations: Negotiating the Boundaries of Membership and Participation,” Latin American Research Review, vol. 37, num. 3, 2002, pp. 55-99.
  24. Goldring, Luin, “Individual and Collective Remittances to Mexico: A Multi-dimensional Typology of Remittances,” Development and Change, vol. 35, num. 4, 2004, pp. 799-840.
  25. González, David, “Gaining Dollars, Town is Losing Its Folkways,” New York Times, January 1, 2001, late ed., A-4. Available at <http://www.nytimes.com/2001/01/01/world/intipuca-journal-gaining-dollars-town-is-losing-its-folkways.html?pagewanted=all> (last accessed on April 12, 2009).
  26. Hanson, Gordon, Emigration, Remittances, and Labor Force Participation in Mexico, Washington, D. C., paper commissionedby the Inter-American Development Bank, Integration and Regional Programs Department, February 2007 (Working Paper, 28). Available at <http://www.iadb.org/Intal/aplicaciones/uploads/publicaciones/i_INTALITD_WP_28_2007_Hanson.pdf> (last accessed on April 12, 2009).
  27. Hildebrant, Nicole and David McKenzie, “The Effects of Migration on Child Health in Mexico,” Washington, D. C., World Bank Policy Research, April 2005 (Working Paper, 3573).
  28. IADB, “Sending Money Home: Remittance to Latin America and the Caribbean,” paper prepared for a conference in Lima, Peru, Washington, D. C., Inter-American Development Bank and Multilateral Investment Fund, March 2004. Available at (last accessed on April 12, 2009).
  29. IADB, “Pooling Resources through Hometown Associations,” Web Story, 31 May 2006. Available at <http://www.iadb.org/NEWS/articledetail.cfm?Language=En&parid=4&artType=WS&artid=3077> (last accessed on April 15, 2009).
  30. IMF, World Economic Outlook: Globalization and External Imbalances, Washington, D. C., International Monetary Fund, April 2005.
  31. Kapur, Devesh, “Remittances: The New Development Mantra?,” paper prepared for the G-24 Technical Group Meeting, August 2003. Available at <http://www.unctad.org/en/docs/gdsmdpbg2420045_en.pdf>
  32. (last accessed on April 12, 2009).
  33. Landolt, Patricia, Lilian Autler, and Sonia Baires, “From Hermano Lejano to Hermano Mayor: The Dialectics of Salvadoran Transnationalism,” Ethnic and Racial Studies, vol. 22, num. 2, 1999, pp. 290-315.
  34. Levitt, Peggy, The Transnational Villagers, Berkeley, University of California Press, 2001.
  35. López-Córdova, Ernesto, Globalization, Migration, and Development: The Role of Mexican Migrant Remittances, Buenos Aires, Inter-American Development Bank, Institute for the Integration of Latin American and the Caribbean (intal) and Integration Trade, and Hemispheric Issues Division (itd), 2006 (WorkingPaper, 20). Available at <http://www.iadb.org/intal/aplicaciones/uploads/publicaciones/i_INTALITD_WP_20_2006_LopezCordova.pdf> (last accessed on April 12, 2009).
  36. López-Córdova, Ernesto and Alexandra Olmedo, International Remittances and Development: Existing Evidence, Policies and Recommendations, Washington, D. C., Inter-American Development Bank, Institute for the Integration of Latin American and the Caribbean (intal) and Integration Trade, and Hemispheric Issues Division (itd), August 2006 (Occasional Paper, 41). Available at <http://www.iadb.org/Intal/aplicaciones/uploads/
  37. publicaciones/i_INTALITD_OP_41_2006_LopezCordova_Olmedo.pdf> (last accessed on April 12, 2009).
  38. Lowell, B. Lindsay and Rodolfo O. de la Garza, The Development Role of Remittances in US Latino Communities and in Latin American Countries, Washington, D. C. and Los Angeles, Inter-American Dialogue and Tomas Rivera Policy Institute, 2000.
  39. Maier, Thomas, “Tragedy Lies Behind a Village’s Prosperity,” Newday.com, July 22, 2001. Available at <http://www.chicagotribune.com/topic/ny-series-deathonjob9,0,5437345.sto y> (last accessed on April 4, 2009).
  40. Massey, Douglas and Emilio Parrado, “International Migration and Business Formation in Mexico,” Social Science Quarterly, vol. 79, num. 1, March 1998, pp. 1-34.
  41. Monografía de Intipucá, Intipucá, El Salvador, Casa de la Cultura de Intipucá, December 1999.
  42. Orozco, Manuel, Latino Hometown Associations as Agents of Development in Latin America, Washington, D. C., Inter-American Dialogue, June 2000. Available at <http://www.thedialogue.org/PublicationFiles/Orozco%20Assoc%20-%20htas.pdf>(last accessed on April 12, 2009).
  43. Orozco, Manuel, Hometown Associations and their Present and Future Partnerships: New Development Opportunities?, Washington, D. C., Inter-American Dialogue, September 2003. Available at <http://meme.phpwebhosting.com/~migracion/modules/documentos/manuel_orozcohome.pdf> (last accessed on April 12, 2009).
  44. Orozco, Manuel, “The Salvadoran Diaspora: Remittances, Transnationalism, and Government Responses,” Washington, D. C., report commissioned by the Tomas Rivera Policy Institute, 2004a.
  45. Orozco, Manuel, “Remittances to Latin America and the Caribbean: Issues and Perspectives on Development,” Washington, D. C., report commissioned by the Organization of American States, Office for the Summit Process, September 2004b. Available at <http://www.frbatlanta.org/news/CONFEREN/ payments04/orozco.pdf> (last accessed on April 14, 2009).
  46. Parrado, Emilio, “U.S. Migration, Home Ownership and Housing Quality,” in Jorge Durand and Douglas S. Massey (eds.), Crossing the Border: Research from the Mexican Migration Project, New York, Russell Sage Foundation, 2004.
  47. Paul, Alison, and Sarah Gammage, “Hometown Associations and Development: The Case of El Salvador,” in Destination D. C., Washington, D. C., George Washington University (Women’s Studies Department) and The State University of New Jersey (Center for Women and Work, Rutgers), December 2004 (Working Paper, 3).
  48. Portes, Alejandro and Patricia Landolt, “Social Capital: Promises and Pitfalls of its Role in Development,” Journal of Latin American Studies, vol. 32, 2000, pp 529-547.
  49. Portes, Alejandro, Cristina Escobar and Alexandria Walton Radford, “Immigrant Transnational Organizations and Development: A Comparative Study,” International Migration Review, vol. 41, num. 1, Spring 2007, pp. 242-281.
  50. Programa de Fiestas Patronales de Intipucá, en honor a San Nicolás de Tolentino, February 28 to March 10, 2003.
  51. Ratha, Dilip, “Leveraging Remittances for Development,” paper presented at the Second Plenary Meeting of the Leading Group on Solidarity Levies to Fund Development, Oslo, Norway, February 6-7, 2007. Available at <http://siteresources.worldbank.org/INTPROSPECTS/Resources/334934-1110315015165/LeveragingRemittancesForDevelopment.pdf> (last accessed on
  52. April 12, 2009).
  53. Salinas, Hugo, Monografía de Intipucá: Antesala al siglo xxi, ejemplar de colección, num. 1, 1991.
  54. Solimano, Andrés, Remittances by Emigrants: Issues and Evidence, Santiago, Chile, Economic Commission for Latin and America and the Caribbean (eclac), Economic Development Division, October 2003 (Serie Macroeconomía del Desarrollo, 26). Available at (last accessed on April 15, 2009).
  55. Stark, Oded, J. Edward Taylor, and Shlomo Yitzhaki, “Remittances and Inequality,” The Economic Journal, vol. 96, September 1986, pp. 722-740.
  56. Suro, Roberto, Remittance Senders and Receivers: Tracking the Transnational Channels, Washington, D. C., Pew Hispanic Center (phc) and Multilateral Investment Fund (mif), November 2003. Available at <http://pewhispanic.org/files/reports/23.pdf> (last accessed on April 12, 2009).
  57. Taylor, J. Edward, “Remittances and Inequality Reconsidered: Direct, Indirect and Intertemporal Effects,” Journal of Policy Modeling, vol. 14, num. 2, 1992, pp. 187-208.
  58. Taylor, J. Edward et al., Remittances, Inequality, and Poverty: Evidence from Rural Mexico, Davis, CA, University of California, Davis, Department of Agricultural and Resource Economics, July 2005 (Working Paper, 05-003). Available at <http://arelibrary.ucdavis.edu/working_papers/files/05-003. pdf> (last accessed on April 12, 2009).
  59. Terry, Donald F., Steven Wilson and Pedro de Vasconcelos, “Improving the Development Impact of Remittances”, paper prepared for the United Nations Expert Group Meeting on International Migration and Development, New York, July 5, 2005. Available at <http://www.un.org/esa/population/meetings/ittmigdev2005/P10_DeVasconcelos.pdf> (last accessed on April 12, 2009).
  60. Torres A., Federico, “Productive Use of Remittances in Central
  61. America, the Dominican Republic, and Mexico: Recent Experiences,” Symposium on International Migration in the Americas, San José, Costa Rica, Economic Commission for Latin America and the Caribbean (eclac) and Latin American and Caribbean Demographic Centre (Celade), September
  62. (Series in International Migration and Development in the Americas).
  63. UNDP (United Nations Development Program), Human Development
  64. Report for El Salvador 2005, A Look at the New “Us”: The Impact of Migration, Overview, San Salvador, El Salvador, National Council for Sustainable Development, 2005a.
  65. UNDP, Informe sobre desarrollo humano, El Salvador 2005: Una
  66. mirada al nuevo nosotros, el impacto de las migraciones, San Salvador, El Salvador, Consejo Nacional para el Desarrollo Sostenible, 2005b. Available at <http://hdr.undp.org/en/reports/nationalreports/latinamericathecaribbean/elsalvador/el_salvador_2005_sp.pdf> (last accessed on April 12, 2009).
  67. Williams, Krissah, “Immigrants Sending $45 Billion Home,”
  68. The Washington Post, October 19, 2006, A09. Available at <http://www.washingtonpost.com/wp-dyn/content/article/2006/10/18/AR2006101801756.html> (last accessed on April12, 2009).
  69. Woodruff, Christopher and René Zenteno, “Migration Networks and Microenterprise in Mexico,” Journal of Development Economics, vol. 82, num. 2, 2007, pp. 509-528.
  70. Date of receipt: October 16, 2008.
  71. Date of acceptance: March 19, 2009.