Exporting People and Recruiting Remittances

Abstract

Migration is an emerging development strategy embraced by the state and elites in El Salvador. As primary export prices decline and nontraditional agricultural exports and assembly production fail to fulfill their promise of compensating for reduced export volumes and sales, exporting people has become an increasingly viable strategy for recruiting foreign exchange, reducing poverty, and injecting new capital into the financial sector. Yet the ability to capitalize on these resources is limited within the current neoliberal model. Migration can act as a safety valve, relieving pressure on the economy and sopping up excess labor, but it is unlikely that the flow of remittances can dynamize the economy and anchor long-term sustainable growth.