Mexico Suffers As U.S. Economy Struggles
In 2009, Mexico experienced the largest decrease in money sent home by migrants ever recorded by Mexico's central bank. Remittances from migrants working primarily in the United States dropped by nearly 16 percent.
Mexico is heavily dependent on these cash transfers, which total billions of dollars and represent the country's second-largest source of income after oil exports. The decline hit rural areas particularly hard.
In some villages in the central Mexican state of Hidalgo, almost half the residents live and work in the United States.
Empty House, Dreams On Hold
The village of El Alberto, tucked into the rugged, cactus-covered hills of Hidalgo, is miles from the nearest city. In El Alberto, large American-style homes that could have been erected in subdivisions outside St. Louis or Atlanta sit next to cinder-block shacks.
But many of the big houses aren't finished — some are just shells, and some are abandoned construction sites. These houses represent the dreams of Mexican migrants, and for many families the dreams are currently on hold.
Federico Ramon looks after two unfinished properties that were started by his brothers.
"They're in this state because there isn't the money to finish them," he says.
There are other half-finished projects all around Ramon.
"People leave their houses to try to make money and sustain their families," Ramon says. "Here in Mexico there's nothing. There's no way to make a living here."
Ramon's two brothers and his 18-year-old son are in Las Vegas. But he says they haven't been getting much work lately.
Mexico Loses Billions
Across the ravine from Ramon is a concrete shell of a split-level ranch house. Just up the dirt road is a massive project with a drive-in garage, tinted windows and colonnades on either side of the entryway. But rusting fingers of rebar poke up from the structure and are waiting for a second floor that still hasn't been built.
Residents say that as the U.S. economy slipped into recession, construction in El Alberto ground to a halt.
Last year, Mexican migrants sent home $21 billion, according to Mexico's central bank. That's off from a peak of $26 billion sent in 2007.
Carmen Maqueda San Juan runs a small grocery store in El Alberto. She says all six of her children are on "the other side." Of the six, only her daughter still has steady work as a maid.
Maqueda says her kids used to send money to her, but now she's lucky if she gets a phone call.
"They say there's no work," she says. "Sometimes, once a week or for part of a day, they work. But that's it."
Local officials estimate that more than 90 percent of the migrants from this part of Hidalgo are in the U.S. illegally.
There's no shame here in crossing the border illicitly to look for work.
Still Looking For Work In U.S.
Israel Pioquinto Rafael, the head of migrant services for the nearby city of Ixmiquilpan, estimates that 30 to 40 percent of the local population works in the U.S.
"Remittances are very important here," Pioquinto says. "It's the base of the economy in this area."
For decades, cash sent home from migrants has been propping up remote villages throughout Mexico and Central America.
The drop in this source of cash, Pioquinto says, affects the entire community. People have less money to spend in the markets. Even a local mariachi band says its bookings fell sharply last year as residents have fewer pesos in their pockets.
"We were expecting that a lot of people were going to come back from the United States to Mexico," Pioquinto says. "But it hasn't really happened. Yes, some came back because at times they didn't have anything to eat. But many have decided to stay and hope that the U.S. economy recovers."
He says that 10 years ago, people would have returned to Hidalgo and waited out the economic downturn with their families in Mexico. But with the tighter controls along the border, migrant workers don't want to risk returning home and then being stuck on the outside when the U.S. economy does come back.
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STEVE INSKEEP, host:
Next, we have a reminder that changes in the American economy can affect the rest of the world. Mexicans working abroad sent home less money last year than the year before - about 16 percent less. That is the largest annual decline in remittances ever recorded by Mexicos Central Bank, which is important because Mexico depends heavily on those cash transfers. Theyre the countrys second largest source of income after oil exports and they come mostly from Mexicans working in the United States. NPRs Jason Beaubien recently visited the central Mexican state of Hidalgo, where in some villages almost half the residents live and work north of the border.
JASON BEAUBIEN: The village of El Alberto is tucked into the rugged, cactus-covered hills in Hidalgo, miles from the nearest city. El Alberto jumps out of the dry landscape like a strange experiment. Big American-looking homes that could have been erected in subdivisions outside St. Louis or Atlanta sit next to cinder-block shacks.
But when you look closer, many of the big houses aren't finished - some are just shells, some are abandoned construction sites. These houses represent the dreams of Mexican migrants, many of which currently are on hold. Federico Ramon looks after two unfinished properties that were started by his brothers.
Mr. FEDERICO RAMON: (Foreign language spoken)
BEAUBIEN: Theyre in this state because there isnt the money to finish them, he says. And there are other half-finished projects all around him.
Mr. RAMON: (Foreign language spoken)
BEAUBIEN: People leave their houses to try to make money and sustain their families, Ramon says. Here, theres nothing but some beans, squash and cornfields. Theres no way to make a living. Ramons two brothers and his 18-year-old son are all in Las Vegas. But he says they havent been getting much work lately. Across the ravine from Ramon is a concrete shell of a split-level ranch house. Just up the dirt road is a massive project with a drive-in garage, tinted windows and colonnades on either side of the entryway, but rusting fingers of rebar poke up from the structure, waiting for a second floor that still hasnt been built.
Residents say, as the U.S. economy slipped into recession, construction here in El Alberto ground to a halt. Last year, Mexican migrants sent home $21 billion, according to Mexicos central bank, a sharp drop from the peak of 26 billion sent back in 2007.
Ms. CARMEN MAQUEDA SAN JUAN: (Foreign language spoken)
BEAUBIEN: Carmen Maqueda San Juan runs a small grocery store in El Alberto. She says all six of her children are on the other side. Of the six, only her daughter still has steady work as a maid. Maqueda says her kids used to send home money, but now shes lucky if she gets a phone call.
Ms. JUAN: (Foreign language spoken)
BEAUBIEN: They say theres no work, she says. Sometimes once a week or for part of a day, they work. But thats it. Local officials estimate that more than 90 percent of the migrants from this part of Hidalgo are in the United States illegally. Theres no shame here in crossing the border illicitly to look for work.
(Soundbite of ringing bell)
BEAUBIEN: Israel Pioquinto Rafael, the head of migrant services for the nearby city of Ixmiquilpan, estimates that 30 to 40 percent of the local population works in the U.S.
Mr. ISRAEL PIOQUINTO RAFAEL (Migrant Services): (Foreign language spoken)
BEAUBIEN: Remittances are very important here, Pioquinto says. Its the base of the economy in this area, and its not just here in Hidalgo. Cash sent home from migrants has been propping up remote villages throughout the region. In Guatemala, Honduras and Haiti, theyre the leading source of income and the backbone of the national economies. The drop in this source of cash, Pioquinto says, affects the entire community. People have less money to spend in the markets. Even a local mariachi band says their bookings fell sharply last year as residents had fewer pesos in their pockets.
Mr. RAFAEL: (Foreign language spoken)
BEAUBIEN: We were expecting that a lot of people were going to come back from the United States to Mexico, Pioquinto says. But it hasnt really happened. Yes, some came back because at times they didnt have anything to eat. But many have decided to stay and hope that the U.S. economy recovers. He says 10 years ago, people would have returned to Hidalgo and waited out the economic downturn with their families in Mexico, but with the tighter controls along the border, migrant workers dont want to risk returning home and then being stuck on the outside when the U.S. economy does rebound.
Jason Beaubien, NPR News. Transcript provided by NPR, Copyright National Public Radio.
