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, results-orientation
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
www.cimi.org.il
