Remittances Key to Central American Economies

[rangerrebew]

Remittances Key to Central American Economies

Incentivizing the departure of their nationals?

By Andrew R. Arthur on June 4, 2019

As the Chinese are learning way too late, a healthy level of population is critical to a healthy economy in the long run. In the short run, however, migrant outflows to the United States can make a significant contribution to a sending country's economy, as a recent Forbes article demonstrates. The question is whether those contributions create incentives for governments to increase migrant outflows, and whether those incentives will get dampen these governments' interest in discouraging their citizens from migrating illegally to the United States.

Forbes reports that last year, Guatemalan nationals abroad "sent a record breaking $9.3 billion in remittances." That was 12.1 percent of that country's Gross Domestic Product (GDP). Remittances to Honduras last year were almost $4.9 billion, which Forbes notes is 19.9 percent of the country's GDP. Remittances to El Salvador constituted an even larger proportion of the country's GDP: 21.1 percent, $534.2 million.

https://cis.org/Arthur/Remittances-Key-Central-American-Economies

[Fishrrman]

Title:
"Remittances Key to Central American Economies"

TAX THEM !!
I'd say an excise tax of 10-15% ought to be reasonable enough.

Use the funding for wall construction, maintenance, and manning.
Along with proper patrols.

[bilo]

The other part of the story on remittances is how they discourage reform in the countries receiving them. The govt doesn't have to improve their education system, fix infrastructure, end corruption, or create a friendly business environment. The remittances sustain those that are left behind.