As the immigration debate rages on, hardly enough attention is given to the underlying causes of human flight.
People in underdeveloped countries relocate primarily to improve their economic condition and provide for their families. Today, approximately 200 million migrants scattered around the globe support a population in their home countries that is at least as big. Mexican migrants alone sent home an estimated $24 billion in 2006, a figure that represents roughly 3 percent of the country’s gross domestic product, and exceeds income from petroleum exports. From supplying basic subsistence to covering household expenses, these monies are essential to the livelihood of thousands of families across Mexico.
Individual remittances remain a critical resource for economic development. However, growing awareness of their potential to raise living standards has encouraged efforts to raise collective remittances toward community development projects. The most successful of these efforts is a “resource multiplier” program that evolved out of initiatives undertaken by Mexican immigrants in the U.S. through local hometown associations. Essentially, resource multiplication involves non-profit organizations raising funds for a particular cause and getting public and private-sector donors to contribute equally.
The results have been remarkable.
What began in the early 1990s as a small project focused on the central-west state of Zacatecas now comprises initiatives in all 32 Mexican states. It was originally sponsored entirely by Mexican hometown associations, but has evolved into a joint effort involving these groups and all three levels of the Mexican government, each matching hometown contributions dollar for dollar.
In 2001, the 3×1 Program, as it was called, further expanded under the federal-level Secretariat for Social Development. Recently, the program took on an exciting new dimension when Western Union became the first private-sector entity to join the innovative partnership in the states of Zacatecas and Michoacán.
Since the 4+1 Program was announced in October 2005, hundreds of thousands of dollars have been spent on projects to improve basic infrastructure and city services as well as generate jobs and revenue for the community. Among other things, they have helped finance agricultural businesses lacking proper equipment, a computer assembly workshop, a greenhouse for local farmers, a pig farm, and an ecological park to attract tourists.
Though small-scale, these projects not only stimulate job creation, economic development and improve standards of living, they also heighten community morale and civic pride. Furthermore, they strengthen the connections between Mexican communities and family members who have made the difficult choice to emigrate to the U.S.
The success of this program demonstrates that given the proper resources, even the most underdeveloped areas can thrive. Most encouraging is the cycle of progress we have witnessed in some of the most impoverished regions. As one family begins to emerge from poverty, others often follow suit, and eventually an entire community can feel the positive impact.
While mindful of the enormity of the migration issue, we are confident that the ripple effects of these and other development projects will gradually permeate the entire country. To accelerate the process and broaden this flourishing initiative, we recently signed an agreement to expand the 4+1 Program into the state of Mexico.
We hope other companies and organizations will take part in these efforts or similar ones.
Christina Gold is president and CEO of Western Union. Contributing to this article were Beatriz Zavala, Mexico’s social development secretary, and Amalia García, governor of Zacatecas, Mexico.
