Remittances: Angel and Devil?

Billions of dollars that alleviate poverty but put conditions on the productive development of Central American countries.

Tuesday, April 2, 2013

Taking the example of El Salvador, whose economy over the last 20 years has received $40 billion dollars sent by Salvadorans from abroad, an article by Roberto Flores in Alainet.org points to the extraordinary influence of the phenomenon in reducing the poverty-despite the stagnation of the Salvadoran economy-but also its involvement in the country's productive matrix.

Carlos Acevedo, president of the Central Reserve Bank, said that "In addition to the beneficial effect, remittances have also exacerbated consumerism in the Salvadoran economy ... That in itself would not be something "wrong" if in the basket of products we consume there were greater share of domestically produced goods, which would allow remittance-financed consumption to contribute to boosting domestic production. "

"... Most of the things we consume are imported, meaning that remittances boost production in China and other countries from which we import, but do little to stimulate domestic production activities".

"... A savior which comes to destroy. This is perhaps a more appropriate metaphor to describe the impact of remittances on the household economy and the productive sectors."



More on this topic

Remittances Sent to Honduras up 10%

November 2018

From January to November 15th of this year, family remittances received from the Central American country totaled $4.265 million, 10% more than what was reported in the same period of 2017.

The most recent figures from the Central Bank of Honduras show that between January 1st and November 15th, 2017 and the same period this year, the flow of remittances sent to the country increased by $372.6 million, from $3,892.3 million to $4,264.9 million.

Remittances for $13.06 billion to Central America in 2011

March 2012

By country: Guatemala $4.37 billion; El Salvador $3.65 billion; Honduras $2.86 billion; Nicaragua $1.05 billion; Panama $592 millions; Costa Rica $530 millions.

Inter-American Development Bank Report:

Remittances to Latin America and the Caribbean rose to $61 billion in 2011