Recipients in Mexico Favor Receiving US-Sent Remittances Through Companies that Contribute to Local Economic Development and Job Creation Projects

The inhabitants of the communities in Mexico from which most of the migrant workers leave for the United States are strongly in favor of programs that channel part of the remittances their relatives send back home to projects that build up infrastructure and provide economic development programs with job creation potential in their regions of origin.

94% favor programs such as the 3×1, through which the Mexican Government, via the Ministry of Social Development (SEDESOL), state and local governments each contributes one dollar for every dollar that reaches the community through the Clubes de Migrantes in the United States.

92% expressed support for a Program (4+1) by which another participant, in this case a private company, also contributes an amount equal to the contribution of the other participants for productive projects.

This information comes from a survey conducted in ten Mexican states by The Tomas Rivera Policy Institute – TRPI, one of the most prestigious institutions in the US dedicated to the research of key issues related to the Latino community. The survey constitutes the first of a two-part study that will be produced by the TRPI regarding the sending of remittances to Mexico. The survey was conducted in March 2008 with more than 1,000 questionnaires.

The TRPI, long committed to better understanding the dynamics associated with remittances, has been one of the first institutions to examine the potential for job and entrepreneurship creation through the involvement of Diaspora, governments and the private sector. This study represents a groundbreaking exploration of Mexican families’ attitudes regarding remittances and multiplier programs designed to extend their local productive impact.

Harry Pachon, President of TRPI, notes: “This study shows the migrant community is in favor of more projects favoring economic development and job creation.”

Mike Baselice, a consultant for the TRPI, presented the results of the survey in Mexico City and underlined some of its most important findings:

- Remittances are part of the fabric of life for many families in Mexico:
32% of the respondents have received one to two remittances in the past year, 35% have received three to five remittances and another third
(33%) have received six or more.

- Economic considerations dominate concerns of the Mexico-based respondents and their friends and families in the US: jobs and the economy was mentioned at the top concern by 48% of respondents and by every respondent (100%) by the third mention; 54% of respondents said jobs and salaries was the most important issue facing friends and family members living in the US.

- Around one-third of respondents are aware of groups and programs working to extend the productive impact of remittances: 34% indicate some awareness of Clubes de Migrantes in the US that send money back to communities in their region; 32% indicates awareness of programs where
Clubes de Migrantes send money to Mexico that is matched by dollars from SEDESOL and state and local governments for infrastructure or economic
development (the 3×1 Program).

- 94% said they are in favor of the 3×1 Program.

- When asked if they were in favor of a program than includes one dollar from SEDESOL, one dollar from the state government, one dollar from the
local government and one dollar from the Clubes de Migrantes with one more dollar from private companies, 92% of the respondents said they
were in favor of such a program (the 4+1 Program).

- Concerns surrounding the remittance industry are evolving: 51% of respondents said that the most important factor when receiving money
from the US is that it arrives securely. For 17%, the most important thing is that it arrives on time while 16% said it was to be able to
collect the money easily. 13% cited the cost of the transaction and only 4% the exchange rate.

- 95% said that there are more choices now than five years ago regarding the number of companies available to receive a remittance.

- 93% would be more likely to tell family and friends in the United States to use a certain company upon learning that such a company contributed one of the five dollars given by the 4+1 Program.

The Tomas Rivera Policy Institute is a nonprofit, independent institution founded in 1985 specialized in the key issues that affect the Latino community, including education, political participation, access to healthcare, economic well-being, mass media, and immigration. The Institute is based at the University of Southern California in Los Angeles with an office at Columbia University in New York.

For more information on the survey or questions related to it, please contact Mauricio Reyes at (55) 5511-2496 or at mauricioreyes@asuntospublicos.com.mx “*

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