Guatemala Diaspora Development Efforts and Lessons From the Israel-Jewish Diaspora Rebecca Bardach and Raviv Schwartz JDC s Center for International Migration and Integration at the International Conference on Diaspora for Development The World Bank Washington, D.C. 13-14 July 2009
Overview Part I: The Guatemala-Diaspora Initiative Need Program Outcomes How it works Vulnerabilities and safeguards Cost effectiveness Part II: The Israel-Jewish Diaspora experience
The need Underdevelopment in Guatemala: Guatemala has one of the highest poverty rates and income distribution inequality in Latin America; poverty primarily affects rural and indigenous populations Migration: 1.3 million emigrants, mostly in US Most are young males, unskilled laborers with limited education; >70% lack legal status
Remittances to Guatemala USD 4.3 billion sent in remittances (2008) from 81% of migrants. Average transaction size 280 USD. Remittances equivalent of 80% of exports; 21x> FDI; 30x> ODA > 50% go to highly impoverished rural areas; most recipients young rural females approx. 3.7 million of pop of 12.6 million Purpose: go towards personal use by migrants family members; consumption, education and home improvement Serve to smooth consumption, ease severity of poverty (reduces extreme poverty by 22%), promote human development Concerns around dependency and limited impact, but impact is also conditional upon broader structural factors
Collective remittances Some migrants send collective remittances, pooling their resources to address broader social or economic needs in country of origin, often through migrant or hometown associations (HTAs) focusing on communities of origin Approx. three percent of Guatemalan remittance senders belong to an HTA, and groups generally raise between US$2,000 and US$8,000 a year Collective remittances fraction of overall flows: HTA flows account for approx. 1% of all transfers to Central America, however
The potential of collective remittances according to the International Fund for Agricultural Development these funds could rise between three and five percent in ten years if their management and institutional capacity improves Consider individual remittances for school fees collective remittances for school materials, computers, teacher training system-wide impact
Strengths and challenges Motivation: high; personal basis Knowledge: Often high on local conditions; often low in project development, organizational conditions Organizational: Informal, grassroots, limited capacity Financial base: community members, sometimes leveraging larger sources (Mexican 3x1) Migrant associations often informal, small, voluntary, grassroots, weak institutions The issue of weak institutional and implementation capacity is common to many migrant associations in the US, UK and other European countries Broad need for capacity-building efforts targeting diaspora-led development initiatives
Analysis of a capacity-building practice: The Guatemala-Diaspora Initiative Gov t of Guatemala MFA request to CIMI in 2005 led to: A capacity building process consisting of A series of capacity building workshops (over two years time in US and in Guatemala) And project support (technical advice, challenge grants, funding possibilities) Targeting both Guatemalan immigrant groups in the US (FL) and their partners in Guatemala
Methodology: Reflective action I. Workshop series Skill building (organizational, project) Community building and identity development Vision and inspiration around idea of diaspora* II. Project focus Technical and financial support III. Participants Involve both diaspora and COO partners Repeat participants encouraged to allow community building process, additional participants encouraged to expand network, tap into new energies, ideas Finding common ground across diverse groups, stakeholders
Examples of projects Develop sugar, citrus and poultry cooperatives in rural Guatemala through leadership development and loan support for materials. Facilitate export possibilities for a coffee cooperative in rural Guatemala, while also developing a family literacy program for the workers at the cooperative. Support socio-economic development of women through selling and exporting women s textiles. Develop an eco-tourism project in cooperation with a Guatemalan returnee. Develop potable water projects in rural Guatemala. Supporting high school students with scholarship opportunities, and obligating recipients to be involved in community development projects. Assisting the elderly, especially those who are alone and without family support. Support the return and socio-economic reintegration of Guatemalan deportees through financial education, small businesses and employment, and assistance upon arrival.
Partners Guatemalan diaspora groups US non-profit organizations and academic institutions Governmental, NGO and businesses in Guatemala American Jewish and Israeli partners Donor agencies and development oriented institutions
Outcomes Organizational development Projects Identifying commonalities across heterogeneous groups Empowerment, self-efficacy Vision & inspiration Leadership development Networking and cooperation
Other features of implementation design Practical project focus, resultsorientation Responsive Non-formulaic Partnership Multiple intervention points Layering, sustainability
Vulnerabilities and safeguards Capacity Education Government Language
Cost effectiveness Financial resources low Human resources high
Guatemalan Diaspora community projects Individual Family Diaspora community Hometown community Philanthropy Development
Part II Learning from the Israel-Jewish Diaspora Experience of Partnership for Development
Jewish Diaspora support for Israel s development More than six decades of Diaspora support towards Israel s social and economic development Jewish Diaspora raises USD 1.2 billion annually for Israel Some 500,000 Diaspora households, of all income levels, contribute annually to diverse Israeli needs Philanthropic funds directed to institutions and projects: public institutions such as Parliament, Supreme Court; universities; scientific and research institutes; community centers; public parks, forests; hospitals; vocational schools; education and vulnerable populations Israel bonds: Currently USD 1 billion per year, totals since inception in 1951 more than USD 26 billion, benefiting major infrastructure projects
How it works: Analysis of the Israel-Jewish Diaspora model Communal identification: Connection: religious, historical, cultural, linguistic Values: tsedakah-charity, kol yisrael aravim zeh le zeh-all Jews are responsible for one another, tikkun olam-fixing the world (Israelis v. Jews) Institutions: umbrella (national and local); sectoral, etc. Action: various forms of socio-economic support for Israel (philanthropic, business, tourism, etc.)
Application / adaptation Communal identification: Basis for connection what does it mean to be Guatemalan? Values: personal altruism, community traditions of self-help, philanthropy Institutions: strengthening existing institutions, networking, partnership Action: remittances; collective remittances; projects; investment
For further information contact: Rebecca Bardach US Representative, CIMI rebeccab@jdc.org.il www.cimi.org.il