Long Distance Economic Development

By Timmy Watson in News on Mar 17, 2007 7:35PM

The approximately 20 million people of Mexican origin in the United States create a larger domestic product than the entire county of Mexico. The dollars that are sent to Mexico from around the world amounts to around $20 billion per year, which is sparking mass development and an increased standard of living across the county. The interesting issue is that of population, even as the country is receiving these funds (which are second only to oil revenues) the population continues to remain stagnant. As Matthew Quirk put it in his article in the April issue of The Atlantic, this influx of cash is good for both economies involved, but at the same time, “It’s also a sign of workers stuck between two worlds.”

How are the residents of Chicago contributing to this boost in economic and community development? It is easiest to describe in numbers. The Atlantic article mentioned one particular instance in which Mexican migrants in Chicago sent $240,000 to the village of La Purisima to build a church. The funds were matched 3-to-1 by the government of Mexico. The organizational structure for determining what funds should be used for is pretty fascinating. So called Home Town Associations, or, HTA’s, are set up around the country. These groups handle everything from how to raise funds to deciding where the funds should go. Chicago and Southern California have the largest concentration of HTA’s in the United States. Chicago has approximately 120 HTA’s and the number will continually rise as these groups gain more power and continue to increase their fundraising. According to the 2000 census the Mexican population in Chicago is about 530,000.

Image of Michoacan via mexonline