Béla Soltész Migration and Diaspora Policies for Development in Latin America PhD Thesis Corvinus University of Budapest Institute for International Studies Supervisor: Prof. Attila Melegh PhD © Béla Soltész, 2016. All rights reserved. 2 Corvinus University of Budapest Doctoral School of International Relations International and Security Studies Subprogramme Migration and Diaspora Policies for Development in Latin America PhD Thesis Soltész, Béla László Budapest, 2016. 3 4 Table of contents 0. Introduction 17 1. Migration, development and the state: a theoretical overview 27 1.1. The migration-development nexus in social sciences 27 1.1.1. Disciplinary approaches in the study of migration 27 1.1.2. Conceptual approaches in the study of development 31 1.1.3. Development in migration theory: the ’migration- 36 development nexus’ 1.1.4. Challenge or opportunity? Migration and 41 development in an evaluative framework 1.1.4.1. Challenges and opportunities for the 43 country of destination 1.1.4.2. Challenges and opportunities for the 45 country of origin 1.2. Operationalizing the migration-development nexus: the 48 concept and role of migrant remittances 1.2.1. Six ’circles’ of remittance definitions 49 1.2.1.1. Household remittances 50 1.2.1.2. Investment remittances 56 1.2.1.3. Community remittances 59 1.2.1.4. Social remittances 60 1.2.2. Effects of remittances on the micro and macro level 61 1.2.2.1. Public versus private allocation 62 1.2.2.2. Wellbeing versus development 64 1.2.2.3. Micro versus macro level effects 67 1.2.3. Remittances and the state 70 1.3. Diaspora and the state: transnational policies for 74 development 1.3.1. Diaspora, transnationalism and the state: a conceptual 76 overview 5 1.3.2. Policymaking in the ‘emigration state’ 81 1.3.3. Diaspora policies for development: items of a ‘policy 86 toolkit’ 1.3.4. Evaluating the hypotheses, part 1: The conceptual 90 level 2. The Latin American diaspora: processes and institutions 93 2.1. The formation of the Latin American diaspora 93 2.1.1. The background of Latin American emigration trends 93 2.1.1.1. Coloniality and migration history in Latin 93 America 2.1.1.2. Demographic and economic trends in 96 Latin America 2.1.1.3. The social and political environment of 103 migration in Latin America 2.1.2. Trends and patterns of emigration and remittance 110 flows in Latin America 2.1.2.1. Trends of emigration in Latin America 110 2.1.2.2. Remittance flows in Latin America 120 2.1.2.3. Patterns of emigration in Latin America 125 2.2. Diaspora institutions in Latin America 133 2.2.1. Migration and diaspora on the Latin American 133 political agenda 2.2.1.1. The migration issue on the Latin 133 American political agenda 2.2.1.2. The birth of diaspora politics and diaspora 138 policies in Latin America 2.2.2. The institutional setting for diaspora policymaking in 142 Latin America 2.2.2.1. Specialized Diaspora Units in Latin 142 American governmental structures 2.2.2.2. Other governmental units involved in 153 6 diaspora policymaking in Latin America 2.2.3. Outreach and activities of diaspora institutions in 157 Latin America 2.2.3.1. Consultation mechanisms between Latin 157 American governments and the diaspora 2.2.3.2. Activity areas of Latin American Diaspora 160 Units 2.2.4. Evaluating the hypotheses, part 2: The institutional 164 level 3. Analysis of diaspora policies in Latin America 168 3.1. A framework for the analysis of diaspora policies 169 3.1.1. The opening of windows of opportunity 171 3.1.2. The ‘deal’ approach: political resources and 176 economic resources 3.1.3. Transnational spaces of policymaking 178 3.1.4. Setting up a framework for analysis of diaspora 181 policies 3.2. Extending Latin American consular activities 184 3.2.1. The transformation of Latin American diplomatic and 185 consular agendas 3.2.2. Extended consular activities and their implications on 190 development in Latin America 3.2.3. Case study: the Mexican Consular ID 192 3.3. Fostering return migration and diaspora investment in 197 Latin America 3.3.1. Return migration to Latin America: why and how 198 migrants would go back? 3.3.2. Return migration programmes in the institutional 201 structure of Latin American governments 3.3.3. Case Study: The Ecuadorian Cucayo Fund 208 7 3.4. Matching funds to community projects in Latin America 214 3.4.1. Latin American migrant associativism in the country 215 of destination 3.4.2. Migrant associations as development actors in Latin 220 America 3.4.3. Case study: the Mexican “3x1” Programme 224 3.5. Latin American diaspora networks 229 3.5.1. The highly qualified emigrants’ role in Latin 230 American development 3.5.2. Diaspora networks for knowledge transfer to Latin 234 America 3.5.3. Case study: the Colombian Red Caldas and 237 Colombia Nos Une networks 3.6. Comparative analysis of Latin American diaspora policies 242 3.6.1. The policy window 243 3.6.2. The policy deal 246 3.6.3. The policy mechanism 248 3.6.4. The policy impact 251 3.6.5. The policy lifespan 256 3.6.6. Evaluating the hypotheses, part 3: The policy level 258 4. Conclusions and questions for further research 262 5. Annex: Diaspora Unit Survey among Latin American 272 Governments [DUS 2014-2015] 6. Bibliography 335 7. List of related publications of the author 358 8 List of tables, graphs and other illustrations Tables Table 1. Migration and Diaspora Policies for Development in 20 Latin America: the structure of the thesis Table 2. Evaluating the migration-development nexus: a 38 historical overview Table 3. Evaluating the migration-development nexus: a 40 thematic overview Table 4. Possible developmental effects of (im)migration for 43 countries of destination Table 5. Possible developmental effects of (e)migration for 45 countries of origin Table 6. Six ‘circles’ of remittance definitions 50 Table 7. Discrepancies between economic performance 52 indicators in remittance-recipient countries: three cases Table 8. Discrepancies between the purchasing power of 53 remittances: four cases Table 9. Types of remittances services by legal background, 56 provider, price and accessibility constraints Table 10. Official (international) development assistance or 64 government-led development programme versus migrant remittances Table 11. ‘Wellbeing’ versus ‘development’ approach of 66 remittances use Table 12. International average salary income comparison: 67 Average nominal and PPP net monthly wages in USD in three Latin American countries and the United States Table 13. The diaspora’s economic resources from the 82 perspective of the state (of origin) 9 Table 14. The state (of origin)’s political resources from the 83 perspective of the diaspora Table 15. The country of origin’s tools for diaspora engagement 88 policies Table 16. Visa regimes for Latin American citizens 106 Table 17. Net Migration Rate in Latin American countries per 5- 111 year periods Table 18. Emigrant stock from Latin American countries, total 112 values and as compared to usually resident population (%) (2013) Table 19. Latin American immigrant stock in the top 20 113 destination countries (total values and percentage in total stock, 2014) Table 20. Inflow of remittances to Latin America (total and as % 120 of GDP, in current million USD, 2013) Table 21. A possible categorization of Latin American countries 128 based on their level of development Table 22. A possible categorization of Latin American countries 129 based on the effectiveness of their governance Table 23. A possible categorization of Latin American countries 131 based on the relative economic importance of their diaspora Table 24. A possible categorization of Latin American countries 132 based on the economic importance of their diaspora and the governmental capabilities for diaspora policymaking Table 25. Double citizenship regimes and extraterritorial voting 140 rights in Latin America Table 26. Laws and policy documents outlining migration and/or 144 diaspora policies in Latin America Table 27. Specialized institutional bodies responsible for 147 immigration and emigration/diaspora issues in each Latin American country 10 Table 28. Main characteristics of specialized institutional bodies 151 responsible for emigration/diaspora issues in each Latin American country Table 29. Migration- and diaspora-related interministerial 154 consultative units in Latin America Table 30. Consultation mechanisms between Latin American 158 consulates abroad and members of the diaspora Table 31. Main activity fields of the Diaspora Units 160 Table 32. Mexico’s main federal government programmes 162 aiming the diaspora Table 33. Background for diaspora policies and achievements in 165 diaspora policies compared Table 34. Overview of the structure of policy areas, remittance 168 types and case studies of Chapter 3. Table 35. Levels of action and channels of policymaking in 179 diaspora politics Table 36. Diplomatic and consular activities of the country of 188 origin in order to address the needs of the diaspora Table 37. Consular identification cards issued by Latin American 190 countries Table 38. Returnee ideal types according to their supposed 200 effects on development and their policy needs Table 39. Types and examples of return migration incentives in 202 Latin America Table 40. Tax exemptions for returning migrants in Latin 204 America Table 41. Fostering return migration through agreements: the 205 case of Uruguay Table 42. Fostering return migration through comprehensive 206 programmes: the case of Ecuador, Colombia and Peru (2011) Table 43. Policy consequences of the reorganization of the 214 Ecuadorian institutional framework related to return 11 migration Table 44. Ideal types of migrant organizations and their possible 219 benefits to the government of the country of origin Table 45.