Transnationalism - El SalvadorPresentation Transcript
Transnationalism: El Salvador – Los Angeles UCLA June 5, 2010
Introduction L.A/CA – U.S. & E.S. Economy Where are the Salvadorians? Vicious Cycle - Current Situation Banking the Unbanked Exploitation Enforcement Policies Policies Implication - Scenarios Legalization VS Deportation Empowering the Diasporas via New Technologies
El Salvador foreign born population in the US
Salvadoran Immigrants in Los Angeles
Downtown Los Angeles
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
Comparison of the El Salvador, Global, United States, and California According to Population, GDP and Remittances
Dutch Disease Lack of financial institutions and legalization for immigrants Increase poverty for Migrant’s family in the US and In El Salvador The Vicious Cycle
Banking the Unbanked
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).
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.
“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 salary Pastor, Manuel. “Banking on LA” (University of Southern California) March 2009.
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 )
The Exploitation of immigrants – Financial Services 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.
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.
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. Hinojosa-Ojeda, Raul. “Raising the Floor for American Workers: The Economic Benefits of Comprehensive Reform.” January 2010.
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.
Immigration Reform Vs. Deportation
Comprehensive Immigration Reform: Legalizing the nation’s unauthorized workers Benefits: Raise Wages Create Jobs Generate Additional Tax Revenue Transfers Vast Wealth Opportunity for Economic Development
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)
Huge economic boom does result from legalization Wages grew by 20% Spending on their own education rose by 200% “Sweat Shops” Undocumented crossings
Mass Deportation 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.
Legalization Can help lay the foundation for robust, just,and widespread economic growth.