Pardee-CFLP-Remittances-TF-Report

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6. Transnational Remittances and Development inPost-Conflict Societies: The Case of El SalvadorRaúl Hinojosa-OjedaIn analyzing remittances in post-conflict societies, one must begin with theconflicts themselves. How did the conflicts originate, including the associatedmigration and remittance flows? What were the roles of the migrant sendingand receiving countries in the conflicts and in the post-conflict remittance anddevelopment dynamics? In the case of El Salvador’s civil war in the 1980s, thesubsequent mass migrations to the U.S. and the rise of major remittance flowsin the last 30 years exemplify the importance of this transnational process overtime; that process continues to shape the future of remittance sending andreceiving communities long after the armed conflict has ended.This transnational analysis also holds critical lessons for perhaps the mostimportant global challenge and opportunity in the 21st century: peacefully andsuccessfully managing integration and development between rich and poorcountries. The massive inequalities that will need to be overcome, both withinand across countries, create a world ripe for conflict. Associated with theseinequalities, the largest mass migrations in human history will occur in the nextfew decades, both rural-to-urban as well as international migrations, generatingbillions in remittances, most of it currently in cash without the advantageof financial intermediations via savings and investment for development. Whiletrade and investment reformhave been extensively pursuedas the orthodox policiesof choice in pre- and post-conflictenvironments, the nextfew decades will see the risingimportance of migration andremittance policy reform.This reform movement willbe much more significant inIn the case of El Salvador’s civil war in the1980s, the subsequent mass migrations tothe U.S. and the rise of major remittanceflows in the last 30 years exemplify the importanceof this transnational process overtime; that process continues to shape thefuture of remittance sending and receivingcommunities long after the armed conflicthas ended.determining the quality of human development and sustainable livelihoods inboth sending and receiving countries, empowered by links to the world’s vastdiaspora communities (Hinojosa-Ojeda et al. 2013).Remittance Flows to Post-Conflict States: Perspectives on Human Security and Development 95
Transnational Post-conflict Societies: El Salvador andthe U.S.The case of El Salvador and the U.S. highlights the fact that migration andremittances have taken on an increasingly influential role and have becomemore dominant forms of North-South integration, which in turn have activated aseries of transnational dynamics that affect the potential for human developmentin both sending and receiving countries (Hinojosa-Ojeda et al. 2001; Andrade-Eekhoff and Silva-Avalos 2003). In the U.S., the 2012 Presidential election isjust one example of the growing importance of Latino diasporas, which arecontributing—much like the Irish and Italian diasporas did in prior centuries—to the changing nature and direction of U.S. politics at home and abroad (Pew2012a, 2012b). 1 In post-conflict El Salvador, migration and remittances havetransformed the Salvadoran economy from one dominated by agriculturalexports, primarily coffee, to an economy where remittances have replaced bothtraditional and non-traditional exports (see Figure 1). At the same time, highlevels of consumption (financed by remittances) and other U.S. influences haveincreasingly characterized Salvadoran society and culture over the last decades.Figure 1: Coffee Exports, U.S. Aid and Remittances for El Salvador as aPercentage of GDP, 1960–201030% 25% 20% Exports of Primary Products and Coffee US Economic and Military Aid Remittances 15% 10% 5% 0% 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 Source: Author’s calculations.1 Such influence from migrant groups within the host society can be a perceived threat within the “migrationsecuritynexus” as well as to existing political, economic, social, and cultural norms (Lindley and Vollmer, 2009).96 A Pardee Center Task Force Report | October 2013
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Pardee Center TASK FORCE Report oct
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This series of papers, Pardee Cente
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AcknowledgementsThis Task Force on
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ITU International Telecommunication
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networks and migrant associations i
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to developing countries than other
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But most importantly, remittances a
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often mix in the countries of desti
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According to the World Bank estimat
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Because of its focus on the multidi
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eceiving remittances provides an en
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associations for post-conflict inst
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are proposed to avoid the associate
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Terry, D. 2005. Remittances as a De
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oader approach to post-conflict rem
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networks can be seen as “homogeno
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That personalized nature of hawala
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Customary law (xeer) and other trad
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the world (Lindley 2009, 531). Much
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ize the informal equal efforts to a
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struction and development. Means sh
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opportunities should focus on exist
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2. Dodd-Frank Act and Remittances t
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leadership. Formal payments systems
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and financial institutions. 26 Reso
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Page 58 and 59: Some guidance may be found in the p
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Page 62 and 63: Foreign TaxesUnder the 2012 regulat
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Page 66 and 67: Section II: Remittances in Post-Con
Page 68 and 69: Sri Lanka. The conflict also result
Page 70 and 71: Figure 2: Current Account, Trade Ba
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Page 74 and 75: Informal Remittance Channels in Sri
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Page 80 and 81: Figure 1: Liberia Per Capita Income
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Page 84 and 85: Remittances to LiberiaValue of Remi
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Page 88 and 89: Remittance Transfers in Sierra Leon
Page 90 and 91: Knowledge RemittanceThe Liberian di
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Page 96 and 97: Section III: Diaspora Networks andC
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Page 108 and 109: Figure 2: Transnational Vicious Cyc
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Page 122 and 123: y La Distribucion Del Ingreso, 1st
Page 124 and 125: 7. Remittances and Community Resili
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Page 132 and 133: ReferencesAddleton, J. 1984. The im
Page 134 and 135: 8. Filling the Gap in Health Staffi
Page 136 and 137: The alternative is for donors to se
Page 138 and 139: cians in the U.S. in 2000 (Clemens
Page 141 and 142: 1. Remittances, Financial Inclusion
Page 143 and 144: networks, and communities. The role
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