MEXICO

Reversal of fortune: Mexicans sending money north

THE NEW YORK TIMES
Monday, November 16, 2009

MIAHUATLAN, Oaxaca — During the best of the times, Miguel Salcedo's son, an illegal immigrant in San Diego, would be sending home hundreds of dollars a month to support his family in Mexico. But at times like these, with the economy out of whack and his son out of work, Salcedo finds himself doing what he never imagined he would have to do: wiring pesos north.

Unemployment has hit migrant communities in the United States so hard that a startling new phenomenon has been detected: Instead of receiving remittances from relatives in the richest country on Earth, some Mexican families are scraping together what they can to support their unemployed loved ones in the United States.

"We send something whenever we have a little extra, at least enough so he can eat," said Salcedo, who is from a small village in rural Oaxaca and works odd jobs to support his wife, his two younger sons and, now, his jobless eldest boy in California.

He is not alone. Leonardo Herrera, a rancher from the southern state of Chiapas, said he recently sold a cow to help raise $1,000 to send to his nephew in northern California.

Also in Chiapas, a poor state that sends many migrants to the United States, Maria del Carmen Montufar has pooled money with her husband and other family members to wire financial assistance to her daughter Candelaria in North Carolina. In the past year, the family has sent money — ranging from $40 to $80 — eight times to help Candelaria and her husband, who are both without steady work and recently had a child.

"When she's working, she sends money to us," the mother said. "But now, because there's no work, we send money to her."

Statistics measuring the extent of what experts are calling reverse remittances are hard to come by. But interviews in Mexico with government officials, money transfer operators, immigration experts and relatives of out-of-work migrants show that a transaction that was rarely noticed before appears to be on the rise.

"It's something that's surprising, a symptom of the economic crisis," said Martin Zuvire Lucas, who heads a network of community banks that operate in poor communities in Oaxaca and other underserved Mexican states.

At one small bank in Chiapas that used to see money flowing in from the United States, more money is going out than coming in.

"I'd say every month 50,000 pesos are sent from here to there," said Edith Ramirez Gonzalez, a sales executive at Banco Azteca in San Cristobal de las Casas. "And from there, we'd receive about 30,000 pesos."

With nearly half its population living in poverty, Mexico is not well placed to prop up struggling citizens abroad. Mexico could lose as many as 735,000 jobs this year and see its economy decline 7.5 percent, government economists predict, making it one of the countries most affected by the global recession.

But poverty is a relative concept. It is easier to get by on little in Mexico, especially in rural areas.

In Miahuatlan, Sirenia Avendano and her husband might be more down and out than their two sons, both in their 20s, who wait tables at a Mexican restaurant in Florida and have seen their hours reduced and their tips drop precipitously. But the couple live in their own home, on land they use to grow corn and other crops.

"We're poor, but nobody can throw us out of this house," Avendano said, wiping away tears at her kitchen table. "They worry about that. What happens if they can't pay the rent?"

"We have an obligation to help them," said her husband, Javier. "They're our sons. It doesn't matter if they are here or there."

Mexico is outraged over influx of its own citizens

Full story: www.thespectrum.com

The shoe is on the other foot, and the Mexicans from Sonora don't like it one bit. The state of Sonora is angry at the influx of Mexicans into Mexico. Nine state legislators from the state of Sonora traveled to Tucson to complain about Arizona's new employer crackdown on illegal immigrants from Mexico. It seems that many illegal immigrants from Mexico are returning to their hometowns, and the officials in the Sonora state government are ticked off about it. A delegation of nine state legislators from Sonora was in Tucson recently to say Arizona's new employer sanctions law will have a devastating effect on the Mexican state. At a news conference the legislators said Sonora, Arizona's southern neighbor comprised mostly of small towns, cannot handle the demand for housing, jobs and schools it will face as Mexican workers here return to their country without jobs or money. The Arizona law, which took effect Jan. 1, punishes employers who knowingly hire individuals who don't have valid legal documents to work in the United States. Penalties include suspension or loss of business licenses. Because more companies are complying, illegal immigrants are finding it more difficult to find work, so they are going home. The Mexican legislators are angry because the influx of their own citizens is placing a burden on the state government.