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Reversal of Fortunes

November 18th, 2009 · 1 Comment · Uncategorized

borrowed from Dominicanoshoy.com

borrowed from Dominicanoshoy.com

During the summer months, I spent several weeks in the Dominican Republic performing fieldwork for a research project on transnational migration and local governance. The town where I resided, Villa Sombrero, is “home” to a significant number of women and men who have made their way to the Eastern Seaboard of the United States in search of economic and other opportunities. Like many other towns in the Dominican Republic, family and worker remittances have altered the physical and social landscape of Villa Sombrero. It is not uncommon to see see huge concrete houses alongside modest, two-bedroom units nor unpaved paths giving way to neatly-organized residential blocks. Although concrete façades are not reliable indicators of upward mobility or disposable income, in some cases the difference between those who can count on a monthly wire transfer and those who have to make ends meet without the help of a distant relative are quite palpable.

As the United States entered the worst financial downturn since the Great Depression, residents of Villa Sombrero braced themselves for lean times. Many understood that the crisis could affect them directly: as work hours in Boston would be cut short, overseas assistance suffered a similar fate. In some cases, rainy day funds would have to tide them over until a new job was secured in a New York City bodega or a cleaning gig was made available in Salem. In the fascinating world of transnational livelihoods, what happens in Washington Heights affects what goes on in Villa Sombrero. In other words, home and host contexts are different sides of the same coin.

Many of the families I came to know had become accustomed to the boom and bust cycles that govern their household finances. Because job security is not a common occurrence for many migrants, families in Villa Sombrero save regularly, even if it’s just a few pesos. But this time it was different. Some folks in the town talked about matters getting really complicated. It did not occur to me just how bad it would get until I opened the Listín Diario one morning are read a surprising note that highlighted the decrease in remittances flows from Spain and explained a new trend: money was now flowing in the opposite direction. Instead of waiting for their periodical allotment, some families in the Dominican Republic were sending money to their relatives in Europe. In hindsight, the reversal does not seem outlandish since many migrants build homes, start business ventures or accumulate other assets back “home” and some of these can be liquidated or mortgaged when cash is needed. Nevertheless, these trends raise several questions that challenge our previous understandings of transnational exchanges. How will relations of power and dependence (at the household and town level) be transformed? In what ways will this affect the decision to migrate or return? How will savings and asset depletion exacerbate poverty in these towns? I’m sure academics and some policymakers will keep adding to this list.

borrowed from blogs.worldbank.org

borrowed from blogs.worldbank.org

For those interested, here are some links to recently-published stories. I would like to call attention to the fact that the New York Times piece appeared several months after reports started appearing in the Dominican press. Sometimes a trending topic for a global newspaper is yesterday’s news for a transnational village.

Money Trickles North as Mexicans Help Relatives

De España a RD: Impacto de remesas en la economía [spa]

Enviaban US$, pero ahora piden ayuda [spa]

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