Mexican hometown associations and development opportunities.

• Author: Orozco, Manuel

International migration significantly influences the politics and economics of many countries today. Migration and worker remittances, in particular, support economic growth in sending countries all over the world. Through remittances, migration has created new opportunities for social and economic change in rural areas. However, remittances are only part of a broader phenomenon of transnationalism. Transnational immigration networks are contributing to the integration of countries into the global economy, demonstrated through various levels of economic interconnectedness, including immigrant-based donations, small and large investments, trade, tourism, and unilateral transfers.

In 2003, 8 million adult Mexican immigrants living in the United States sent $14 billion in remittances to their relatives. Globally, annual remittances total over $100 billion. Over the past 10 years, these transfers to Mexico have reached $69 billion. The influence of remittances on home countries' economies has been significant, particularly in economically depressed rural areas. Aside from remittances, immigrants have also formed small philanthropic organizations, known as hometown associations (HTAs), to raise thousands of dollars to support small local development projects.

HOMETOWN ASSOCIATIONS, DEVELOPMENT, AND LOCAL CHANGE

There are at least 2,000 of these associations across the United States working in various cities and states in Mexico, including most prominently, Guanajuato, Zacatecas, Jalisco, Puebla, and Michoacan. These organizations are part of a growing trend in transnational social movements that have been influenced by migration patterns as well as by globalization. (1) HTAs fulfill several functions, from social exchange to political influence to pursuit of low-scale development goals in their home communities. The connections established among remittance senders from similar places of origin lead to spontaneous out coordihated efforts to support not only their relatives but also their towns. By forming these organizations migrants can retain a sense of community as they adjust to the U.S. (2)

HTAs are a subset of what some observers assert is a growing number of Transnational Migrant Organizations. (3) These groups are increasingly motivated to take advantage of the upsurge of family remittances and the need for economic aid in their homelands. HTAs have sought to retain cultural ties and improve their home country communities. Organizations made up of Salvadorans, Guatemalans, Mexicans, Dominicans, and people from other countries have increasingly been working toward a betterment of their towns. (4)

The emergence of HTAs raises important questions about their contribution to development and their potential to forge alliances with other actors in the development community. This article analyzes HTAs and their relationship to development in rural Mexico. To do this, we first evaluate the organizational nature and capacity building of hometown associations, and then investigate their partnerships and collaborative capacity, as well as their long-term durability and impact on development in Mexico. Finally, we review a partnership scheme between the three levels of government (local, state, and federal) and hometown associations known as 3x1.

Methodology

This policy brief synthesizes a larger report on the development roles of hometown associations and the effectiveness of the 3x1 matching-grant program. The study included interviews with more than 100 hometown associations operating throughout the U.S. and working in various Mexican states. Association leaders were asked about the type of activities they perform, the length of time their organization has been working, and their organizational structure, as well as how they identify projects and collaborate in partnership with other organizations.

The study also visited four Mexican states (Zacatecas, Jalisco, Guanajuato, and Michoacan) and conducted on-site visits to more than 40 projects that were part of the 3x1 program. The visits included interviews with local community representatives, municipal leaders, and representatives from the state and federal governments.

Another important component of this project was an analysis of more than 500 3x1 projects carried out in the four states. A data set was created that included information about the demographic composition of the communities and municipalities, along with municipal budgets and per capita distribution in the communities under their jurisdiction. To those values, information was added about per capita gross domestic product, human development variables, and income in the municipalities. This information created more thorough profiles of the communities in terms of their capacities to implement specific projects.

These HTAs are located throughout the U.S., with the highest concentration in southern California and the Chicago metropolitan area. The HTAs work in various states in Mexico. The average life span of the HTAs interviewed was 11 years. While 47 percent were created after 1995, only 20 percent were founded prior to the 1990s.

Organizational nature

The organization of these associations is relatively cohesive, with close-knit memberships that follow basic rules of group discussion and decision making, and adapt to changing circumstances either by joining other groups to form federations or by electing new authorities. Most of the organizations are an amalgam of families who join together to improve their hometowns. Once formed, the HTAs have relatively stable life cycles and maintain a core of active members, who are in turn able to draw support from hundreds of other immigrants. Club leaders are usually democratically elected by the members or board.

Capacity building

The success of HTAs at capacity building is determined by their ability to identify projects, allocate resources, and plan for the implementation of their projects.

Project identification

There are three main factors that determine how HTAs identify community needs. First, the extent to which an HTA has a relationship with a liaison in the hometown--whether an individual or a group--influences the HTA's selection of projects. The hometown counterpart often relays the needs or priorities of a given community. Second, project decisions are based on the U.S. club leaders' perception of hometown needs, often suggested by family members and friends still living in Mexico. Finally, certain clubs choose to focus on specific causes, which they work on throughout the life of their organization. Two other influential factors are unexpected emergencies in the hometown caused by natural disasters and partnerships with other institutions.

Usually, an HTA member visits the community, returns with a list of identified needs, and proposes to work on three or four activities, while concentrating efforts on one larger project. The decision to work on a given project is often connected to a renewed sense of belonging to the hometown and a practical obligation to improve the town's condition--specifically, to help prevent future migration due to economic distress in the community.

The majority of HTA work includes basic assistance for health and education services, church support, town beautification, and construction and improvement of public infrastructure. Some HTA leaders fear that focusing on projects that should be within the responsibility of the local, state, or federal government could encourage governments to neglect services because they expect migrant groups to provide them. This possibility does not, however, prevent HTAs from working in partnership with governments.

Types of HTA Projects

Resource allocation

Hometown associations generally embark on projects yielding tangible results that will be immediately recognizable to both members and town residents. They understand that their fundraising base is limited and consequently do not usually engage in overly ambitious projects. The average amount raised by an HTA for a given project is usually under $10,000 a year. In rural Mexican communities, this represents a significant contribution; in a town of less than 6,000 inhabitants, the annual municipal budget allocation for public works is often less than $50,000.

A hometown association allocates funds based on a preliminary estimate of project costs provided by a liaison in the hometown. In most cases, a lump sum is disbursed and the members ensure that the money is spent as budgeted to acquire materials and pay labor costs. Immigrants donate their resources directly to a project and incur no intermediation costs, because the counterpart in the hometown is usually a relative or community member who volunteers to oversee the project. While not compensated for the work, he or she nonetheless earns a reputation as the caretaker of HTA projects.

HTAs disburse the funds for a given project in one of three ways: One, a leading member of the association brings the funds directly to the hometown. Two, the association deposits the funds in a local bank branch close to the hometown. Three, when partnering under the 3x1 program, which will be discussed in greater detail later in the article, the funds are deposited into a designated bank account.

Project implementation

In order to carry out a project, an HTA coordinates with a contact person in the hometown whenever possible, schedules activities, disburses funds, oversees the work performed, and provides follow-up evaluations. The hometown counterpart provides information about costs, work schedule, and budgets, and essentially plays the role of foreman for the HTA. Because most cases of HTA work involve some kind of construction (e.g., church repair, health-center or school construction, street paving, park or plaza improvement, and cemetery maintenance), project oversight requires monitoring building progress and evaluating the final result.

Partnership and collaborative capacity

The...