Illegal Immigration-the view from Nimasac Guatemala
13 March 2009
It’s almost impossible to find a family in this little town of Nimasac (in the western highlands of Guatemala) who has not had a son or husband go to the U.S. to find work.
Boys often leave when they are teenagers (16 or so) and take the perilous route to the U.S. through Mexico, by enlisting the services of a “coyote” (immigrant smuggler)—which is a very risky proposition. If they do make it to the U.S. alive, they arrive in large cities (Houston and New York seem to be the favorites here) where they connect with acquaintances or friends who are already there. Many leave wives and young children behind. Many stay for years before they return……..some never come back to Guatemala.
In the U.S. they find work in restaurants, construction, landscaping and, most of them, faithfully send money back to their families in Nimasac twice a month. It is hard to imagine the impact of these bi-monthly “remesas” (remittances) on the families and the local economy. In fact, annual remittances from the U.S. to Guatemala are the second biggest driver in Guatemala’s economy—second only to exports, totaling $ 4.3 billion in 2008 (Sources: MIF, IMF, US Census International DataBase, Latin America Monitor).
You can look around this village and clearly distinguish between the houses that were built with American money and those that were built with Guatemalan money. (see photos below)
Families with sons or husbands in the U.S. can often afford to feed and clothe their families, send their children to school, have cement block homes with running water and maybe even have electricity. It is estimated that 43 percent of Guatemalan households receiving remittances have been lifted out of extreme poverty. (Source: Economic Commission for Latin America and the Caribbean (ECLAC)). So, these families are still poor (especially by American standards) but no longer among the poorest of the poor.
Remittances are projected to decline by 8% or more in 2009. In data just released by Banco de Guatemala, remittances for the first two months of 2009 are down 9.6 % compared to 2008. The impact of the decrease in remittances is profound and widespread and likely to get worse. Construction on many homes has simply “stopped” (putting those who were building the house out of work). Families can no longer afford to buy things, significantly impacting demand across the board, and especially the weaving, sewing and shoemaking cottage industries in Nimasac.
One Kiva borrower I spoke with said she used to have 35 individuals sewing/making parts for her shoes and now she is down to 15, with prospects looming of further declines. (She used her Kiva loan to pay her employees for work produced, but not yet sold due to lack of demand.) Another Kiva borrower had originally taken out a loan for leather and other shoe making materials, but the market for his product has all but disappeared. So he bought a loom instead—hoping the market for traditional fabrics “cortes” is more dependable. This is a young, industrious, positive young man with a wife and a toddler to provide for. But, demand is down, across the board, in almost every area of the economy here.
On one hand, I understand the associated “hidden” costs of illegal immigration in the U.S. I know that some illegal immigrants do not pay taxes and often times avail themselves of the education and medical care and, with the economic downturn, may be taking jobs from Americans who need the work. I also realize that, since some illegal immigrants are paid under the table and do not pay into Medicare or social security or income tax, we all “pay the price” for their use of our services.
On the other hand, I can also understand the desire of these young men to provide for their families, to improve their lives by immigrating to the U.S. (legally or illegally) where they can find jobs and opportunity. It reminds me of the situation that Jean Valjean finds himself in Les Miserables, when he steals a loaf of bread to feed his daughter.
As with most things, there are definitely several dimensions to this illegal immigration issue. And it is apparent from the Guatemalan side, that many families who had been able to escape extreme poverty are about to be thrust right back into it as remittances from the U.S. continue to decline. And, in the absence of “demand” for products and services, the ability for micro credit to make a meaningful difference in the lives of these people may be compromised.
built with $$$
built with quetzales
Entry Filed under: ASDIR, Guatemala, KF7 (Kiva Fellows 7th Class). Tags: decline in remittances from u.s. to guatemala, illegal immigration, illegal immigration guatemala, nimasac guatemala, remittances impact microcredit, remittances to guatemala, totonicapan guatemala.
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1. montgomerymjt | 13 March 2009 at 12:35
Thanks for the interesting post. It’s easy to forget all the many, many ways the economic downturn in the U.S. is impacting the rest of the world. And it’s interesting and sad to consider the impact of economic downturn on those receiving microcredit. While you clearly recognize the complexity of immigration issues, one thing I must mention is that I think you would be surprised how many illegal immigrants in the U.S. do indeed pay taxes. In my experience working with immigrants in Mississippi, fake papers to get a job in the formal sector are not that hard to come by. And despite the fact that illegal immigrants are breaking the law by entering the country illegally, I’ve known many, many immigrants that have a great deal of respect for laws in the U.S. Accordingly, they are more than happy to comply with those that they can, including paying taxes when they have jobs that enable them to do so. Certainly many don’t, but be careful to assume that all work performed by illegal immigrants is under the table.
2. Lori Gibson Banducci | 13 March 2009 at 12:45
great point megan. i changed my article to be more accurate….that “some” illegal immigrants do not pay taxes……….
3. Huiqin | 13 March 2009 at 20:08
But at the same time, what about all the legal immigrants who have waited years to be able to enter the US?
4. Ron Andrade | 14 March 2009 at 20:10
I read this itme and can see both sides of the issue here. I am a Kiva memeber and lender so I do care about the plight of people in other countries. I can certainly understand the motives that cause these people to venture far from home in an effort to help their families.
On the other hand, I see my taxes continously climb, health care costs escalate and jobs here in the U.S. become more scarce.
I am seeing millions of jobs disappear and with them, the incomes of Americans that have the same concerns as these people. I have many friends losing their jobs and unable to feed their families. Watch the news as Americans in various parts of the country are living in tents in the middle of no where.
I see Americans with no health care and no access to education side stepped as immigrants (many illegal) avail themselves of services that U.S, citizen are denied and yet the money for these services comes directly out of our pockets.
I have spoken to many immigrants that believe that America is an endless supply of cash and we will never miss the money. I also have a great issue with illegal immigrants that disrespect those immigrants that play by the rules and enter the US through proper channels. It is an insult to those who come here honestly and seek to better themselves economically.
I have personally seen many immigrants laugh at us as tell us they are going to the doctor for free and joke at how we Americans have to pay but they don’t. All these components strain the system to a point where an illegal gets more consideration at times than the American citizen.
It feels wonderful to be mocked by those who disrespect American and legal immigrants in the US. We call their attitude the “bandito mentality” and it is sometimes disheartening to observe such attitude in the US.
Again, as I have said, I have compassion for those in need. I would not have become a member if I did not believe that the fix is in building the local economies and not just illegally entering the US to find an answer to their problems.
5. Cara Gutterman | 14 March 2009 at 21:25
As a health care provider working in a community clinic where 80% of my patients are Latino immigrants (most undocumented), I can say I’ve never met any one who “laughs” at their reduced health care costs. To the contrary, these are some of the hardest working individuals I have ever met, with incredibly high rates of untreated chronic disease and stress-related conditions such as anxiety and depression. As Lori discussed, many immigrants come to the U.S. with the intent of sending remittances back to their families in their home country. Imagine making less than minimum wage, sending half of your earnings to your family, and then trying to live on the rest. Anything but the essentials are eliminated, which usually includes health care.
I do not believe that microcredit is good because it keeps immigrants from relocating to the U.S., but because it allows families to stay together in their home country. Many of the immigrants I know are very isolated (physically, culturally, and linguistically), living in over-crowded living conditions, apart from their families, and in constant fear of deportation. Immigration is a complicated issue, and we won’t all agree. I appreciated Lori’s post for bringing to light the perspective of a local Guatemalan community. Personally, I am involved in Kiva because I believe that we are all part of the greater global community.
6. Guide Me Green | 15 March 2009 at 07:59
They are talking an amnesty in the UK for certain immigrants that have been here for a long time. I worked with asylum seekers and refugees in the UK for years but I am against the Amnesty unless it is contains certain controls which might be illegal such as restricting the right to social/goverment housing.
Due to the credit crunch the waiting lists for social housing are growing to a scary level which would only be made worse and increase nationally by thousands if an amnesty was sanctioned.
There are hundreds of immigrants in France waiting to come to the UK – they have been told of the recession and lack of jobs but think its a ploy to put them off according to todays paper!
Crazy world…
7. Andrea | 16 March 2009 at 08:31
Great post Lori. My recent thoughts around this issue (spurred by meeting with Guatemalan borrower) have been more around the affects on the family. Many of the aldeas (villages) I’ve visited have an eery absence of men and you see the women working 3 times as hard to work, pay the bills, and raise their children alone. Tension seems to have increased recently as the money coming in has lessened.
On a happier note, one client told me that her husband has been in the US for 3 years and asked if there was any way she could send a picture of her and the children. Since she doesn’t use the Internet, it’s not so easy, but the loan officer heard her mention this and told the woman to tell her husband about Kiva. She did, he went on the site and found her picture! I thought it was a pretty sweet story.
8. Lori Gibson Banducci | 22 March 2009 at 07:38
this was in today’s new york times:
http://www.nytimes.com/interactive/2009/03/21/us/20090321_immig_hispanics.html