© T. M. Whitmore TODAY The urban dual economy Migration.

© T. M. Whitmore

TODAY

•The urban dual economy•Migration

© T. M. Whitmore

LAST TIME

•Population Geography of LA continuedDemography – age structureGeographic distribution of

populationUrbanization

Roots of urban growthPluses & minuses of urban growth

© T. M. Whitmore

The urban economy•Dual system

Formalcorporate, government, commerce, and major businesses

Minority of jobs?Informal

services, local assembly and repair shops, family-run micro-businesses; day labor, domestics, etc.

Majority of jobs?

© T. M. Whitmore

Find the globalization! Tegucigalpa

Informal sector economy

© T. M. Whitmore

© T. M. Whitmore

© T. M. Whitmore

Informal economy, tile making (for export to posh homes in USA), Saltillo

Informal economy, tile making (for export to posh homes in USA), Saltillo

Informal sector, Mexico City dump scavengers

© T. M. Whitmore

Migration-the 3rd part of demography

•DefinitionsMore-or-less permanent change in

the locus of one’s lifeMust cross political boundary

•“Circulation” a temporary change in residence

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Migration — 4 major types

•1st type: International within Latin America

•2nd type: International to and from Latin America

•3rd type rural => rural migration

•4th type rural => urban migration

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International migration within

Latin America•Mostly labor circulation flows

•Industrial and urban destinations

•Rural origin to urban destination

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International to and from Latin America

•Colonial migrations100s of thousands of IberiansForced migration of ~10 m Africans

•19th century migrationsEuropeans to S Brazil, Argentina,

Uruguay, Costa RicaAsian indentured labor to Caribbean

& Guyana, Surinam, etc.•Contemporary migrations

Caribbean, Ecuador, “el Norte”

© T. M. Whitmore

© T. M. Whitmore

Example of International migration: Mexicans to US

•N limits of MexicoLoss of ½ of Mexican territory to US in war of 1840s

•Post-Mexican war in 1880s

•1920s revolution and post-revolution chaos in Mexico plus demand for ag workers in WWI in US => >500kBut small % of all immigration

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Example of International migration: Mexicans to US

II•1940s -1960s => Bracero program

•1980s and beyondIssue of illegal (undocumented)

•Mexico — USA labor markets closely coupled since 1880s

•Spatial patterns of migration

• Issue of remittances

Source: © IADB

Remittances: The Human Face of Globalization

© T. M. Whitmore

Remittances•They are monies sent by workers

in the US to their Latin American (and other) homes.

•About 10 million Latin American immigrants (of the 16.5 m total) living in the United States Send about $38 billion to their families on a yearly basis.

Each monthly transaction averages approximately $240

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Scale of the Flows to LA & C• For 2003, remittances to LA & C > $ 38

billion• Exceeds the combined flows of all Foreign

Direct Investment (FDI) and net Official Development Assistance (ODA)

• LA & C is now the fastest growing and highest volume remittance market in the world (> 150 million transfers annually to over 20 million recipients)

• Flows substantially exceed tourism income to each country & almost always exceed the largest export.

• Account for at least 10% of GDP in: Haiti, Nicaragua, El Salvador, Jamaica, Dominican

• Republic, and Guyana

Source: © IADB

Source: © IADB

© T. M. Whitmore

How is money sent?• Most send remesasto their families through

international money transfer companies.These are costly: fees can run to 10% or

more• Less than 50% of Latin Americans have

bank accounts here or in home countriesThus some use professional viajeros

(travelers)• Agencies are now competing

IADB working to reduce fees and bottlenecks

In Durham, NC the Latino Community Credit Union charges from $6-10

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Consequences & Issues•Social consequences to the Latin

American migrant workers’ familiesAbout 1/3 are undocumented

Visits home are fewWages and working conditions may be poor

Families are divided

• Impacts in Latin AmericaIs this development or dependency?How many participate?How is it spent?

Source: © IADB

Source: © IADB

© Thomas Whitmore

© Thomas Whitmore

© Thomas Whitmore

© Thomas Whitmore

© Thomas Whitmore