Pardee-CFLP-Remittances-TF-Report

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