Pardee-CFLP-Remittances-TF-Report

The Salvadoran Diaspora is very significant as a cautionary by-product of one ofthe major U.S. wars of the late 20th century. This U.S. intervention was a catalystfor a surging Salvadoran population within the U.S., which now accounts for thesecond largest foreign-born Latino population. Characterized by strong concentrationsin strategic cities such as the metropolitan regions of Los Angeles, Washington,D.C., New York, and Houston, Salvadorans represent the fastest growingLatino ethnic group in the U.S. (Terrazas 2010). Whereas the current populationof El Salvador is just over 6.2 million, it is estimated that between 1.8 million to2.6 million Salvadorans live in the U.S. 2 Furthermore, the Salvadorans living inthe U.S. produce about three times the GDP of El Salvador (Table 1). These highlyskewed economic realities mean that the largest source of income, savings,investments and financial services potential exist in the context of the Diasporaand not within El Salvador’s national borders. Meanwhile, Salvadoran economiccontributions to the U.S. are also substantial, exceeding many U.S. cities andsome states by comparison. It is important to understand that the situation ofSalvadorans living in the U.S. is highly unequal and varies depending on theincome levels of the communities where they are concentrated. Strong migrationcorridors exist between localities in El Salvador and the U.S., which greatly influencethe poverty and human development opportunities for migrants and theirfamilies in both the U.S. and El Salvador.Table 1: Population/GDP Comparison: El Salvador, Salvadorans Living in theU.S., and the United StatesPopulation GDP per Capita GDPEl Salvador 6,227,491 $3,703 $23,062,800,000Salvadoransin the U.S.1,827,000 $41,542.46 $75,898,076,956United States 311,591,917 $48,111.97 $14,991,300,000,000Sources:U.S. Census Bureau;CIA World Fact BookWorld Bank GDPPCWorld Bank GrossDomestic ProductThe Conflict, its Origins, and Post-Conflict PoliciesThe civil war in El Salvador that lasted from 1979 to 1992 is estimated to beresponsible for the deaths of more than 75,000 people. During the ReaganPresidency, a very significant part of late Cold War American foreign policy wascommitted to supporting the right-wing Salvadoran government forces fightagainst the leftist Farabundo Marti National Liberation Front (FMLN). In fact, U.S.2 The U.S. Census Bureau reports 1,827,000 Salvadorans living in the U.S.; in contrast the Salvadoran Ministry ofForeign Relations reports a much larger number of 2.6 million Salvadorans who live in the U.S.Remittance Flows to Post-Conflict States: Perspectives on Human Security and Development 97