Personal remittances are money sent, particularly from overseas. On average these total slightly less than 1% of the world GDP, but can be much higher for particular countries, e.g.
- El Salvador – 20.4%
- Guatamala – 11.2%
- Honduras – 18.8%
The total for three Northern Triangle Countries have risen to ~$10 billion per year. Much of this is Guatemala
Remittances in Guatemala increased to 5650.20 USD Million in 2019 from 5390.80 USD Million in 2018. Remittances in Guatemala averaged 2445.68 USD Million from 1990 until 2019, reaching an all time high of 5650.20 USD Million in 2019 and a record low of 96.50 USD Million in 1990. This page provides - Guatemala Remittances -…
Also of particular interest is this total is ~20x larger than the amount of aid Trump has threatened to cancel. There is some confusion of exactly what is being cancelled
Experts agree that you can’t address the "root causes" of migration without aid. But Trump’s border temper tantrum prevails.
However, the USAID pages seem to provide pages to explore many of the aid programs. Here again is Guatemala:
Explore the official U.S. Foreign Aid country data across sectors, implementing agencies, and activities in a highly visual and interactive dashboard, where you can compare values across regional averages and income groups.
The single largest project is a counternarcotics project and $30m and the largest category is in group of “governance”.
So the amount of aid is both large (in sense of $500m) but also small (compared to $10b in remittances). You want these projects to be well-run and successful. However, the extent to which they are cancelled or not well run, influences both the economy and conditions in Northern Triangle Countries.
If they are not well run, then I expect more people to find reasons to leave, and the net result will be more emigrants and hence also more remittances back to the home economy. I think we’re being penny wise and pound foolish here.