Hispanics send home $30B from U.S. in '03
A survey estimates 6 million in the United States are regularly dispatching remittances to relatives in Latin America and the Caribbean.
SERGIO BUSTOS
Gannett News Service
Every payday Martha Padilla heads to her local money wiring station
in Tucson to send a
good chunk of her check south of the border to her sick parents
in Sonora.
"They need it bad, that's why I'm here working," the 52-year-old housekeeper said.
She has been sending the money for 12 or 13 years, she said.
The money sent by Padilla and other Hispanics here to relatives
in Latin America and the
Caribbean could top $30 billion this year and encourage more
Hispanics, especially
Mexicans, to immigrate to the United States to lift their families
from poverty, a new
exhaustive survey re-leased yesterday shows.
The survey estimates that 6 million Hispanics in the United States
were regularly sending
money home, called remittances, and that millions of families
rely on the dollars to pay for
food, rent and other basic needs.
The United States is home to about 39 million Hispanics.
The survey also revealed a significant percentage of Hispanics
were interested in moving
to the United States. That was certainly true with Mexicans.
It found 19 percent of
Mexican adults, which translates into roughly 13.5 million people,
said they were
"thinking" of migrating here.
The survey, with a margin of error of plus or minus 2.41 percentage
points, was based
on interviews conducted this year with more than 11,000 Hispanics
in the United States,
Ecuador, Honduras, El Salvador, Guatemala and Mexico.
The amount of money flowing across borders is so high it will
likely surpass total foreign
direct investment this year to Latin America and the Caribbean.
And it far exceeds the
annual amount of U.S. foreign aid sent to the region, the authors
said.
"This is a river of gold coming from the United States that could
dramatically help
improve the economic development of this region," said Sergio
Bendixen, a Florida-based
pollster who carried out the survey along with other groups.
But Bendixen and others said that Latin American and Caribbean
countries are paying
little attention to remittances, ignoring the positive impact
on their economies.
"The numbers are staggering under any scenario," said Multilateral
Investment Fund
Manager Donald Terry.
The Fund is part of the Washington-based Inter-American Development
Bank, which is
pushing U.S. financial institutions to enter the remittance
business to help drive down
the high transactions costs of sending money abroad.
Such fees range from $10 to $30 to send $200.
Padilla said she sent $150 to Mexico two weeks ago and it cost
her about $10, which
she said is fair.
Wire transfer companies, including Western Union or Money Gram,
dominate the
remittance market, according to the survey, which found about
70 percent reported
using such companies to send money home. About 11 percent use
banks; 17 percent
use informal means like the mail or having someone deliver the
money by hand.
The bank released the survey at a conference on remittances held
here yesterday with
top U.S. and Latin American and Caribbean officials.
The percentage of people who receive remittances from relatives
in the U.S. was
especially high in Central America. Twenty-eight percent of
adults surveyed in El Salvador
reported receiving remittances; 24 percent of Guatemalans, the
survey found.
In Mexico, 18 percent of those interviewed said they received
money from family
members in the United States. Families in five Mexican states
- Guanajuato, Jalisco,
Michoacan, San Luis Potosi and Zacatecas - receive a disproportionate
share of the
remittances. Those five states have long been the primary source
of immigrants to the
United States and have received the most in remittances.
But that trend is beginning to change, the survey's authors said.
They found 56 percent
of those receiving remittances in Mexico lived in other parts
of the country.
"These remittances represent a new kind of integration among
nations undertaken not
by trade negotiators but by ordinary folk to assuage their economic
woes," said Roberto
Suro, director of the Pew Hispanic Center, which also helped
carry out the survey.
"Migration is now not only an escape valve; it is also a fuel
pump" for Latin American
economies, Suro said.
Doris Meissner, the former commissioner of the former Immigration
and Naturalization
Service during the Clinton administration, said the high number
of Mexicans wanting to
emigrate raise serious questions about the debate in Congress
over pending immigration
legislation that would legalize illegal immigrants and create
guestworker programs.
"Should we go down the path of a (migration) agreement that again
may not work?"
asked Meissner, who said a formal migration agreement with Mexico
was needed to help
cope with the issue of legal and illegal immigration.
Tucson Citizen Staff Writer Luke Turf contributed to this report.