Transnationalism - El Salvador
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Transnationalism - El Salvador

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  • (2) Earn legal status and eventually U.S. citizenship=full labor rights => higher wages & higher worker productivity => (3) Demand for new immigrant workers will decline over timeas the market shrinks for easily exploited, low-wage, low-productivity workers. (intro) historical experience of legalization under the 1986 Immigration Reform and Control Act, or IRCAindicates that comprehensive immigration reform would (1) for both native-born and newly legalized immigrant workers=>increase consumption(4) Ex: CA-Mexican Labor Migration has contributed over 100% of Employment Growth since 1990 (5)Creates more savings and reinvestment in communities and financial institutions(5)Faster movement to credit histories for cleaner cars, home ownership, education and small business investment.
  • (1) generates/of at least 0.84 percent. (2) Over 10 years, this amounts to (3)Labor Department reports by 2010, this yr, some24.7 million jobs will be created for people with low levels of education(4) Given the rising educational levels among native-born workers,immigrant workers are needed to fill over 85% of the gap in the labor force
  • US Immigration policy-IRCA(1)for recently legalized…in the first 2 years/rose by 200%, /worst sweat shops ClOsEd/fell by largest amounts in U.S. history(After 2) Legalized workers earn more and move on to better jobs = Higher wages translate into more tax revenue and increased consumer purchasing power, which benefits the public treasury and the U.S. economy as a whole. (3) higher value added firms grew!
  • (1)$2.6 trillion in cumulative lost GDP over 10 years.(2) Not a realistic policy option(3) According Center for American Progress the estimated…(After 3 ) As opposed to an increase in U.S. GDP of at least .84%(4) job loss(5) wages-↑ less-skilled native-born workers But ↓higher-skilled natives

Transnationalism - El Salvador Transnationalism - El Salvador Presentation 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
  • UCLA
  • 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.
  • Virtuous Cycle
  • Questions
    THANK YOU