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 Editorials | September 2007 
The Power of Multiplication in Mexico
 Beatriz Zavala, Amalia García & Christina Gold - Star-Telegram
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 |  | Resource multiplication involves nonprofit organizations raising funds for a particular cause and getting public- and private-sector donors to contribute equally. |  | |
As the immigration debate rages on, hardly enough attention is given to the underlying causes of human flight.
People in underdeveloped countries relocate primarily to improve their economic condition and provide for their families.
Today, approximately 200 million migrants scattered around the globe support a population in their home countries that is at least as big. Mexican migrants alone sent home an estimated $24 billion in 2006 - a figure that represents roughly 3 percent of the country's gross domestic product and exceeds income from petroleum exports.
From supplying basic subsistence to covering household expenses, these monies are essential to the livelihood of thousands of families across Mexico.
Individual remittances remain a crucial resource for economic development. However, growing awareness of their potential to raise living standards has encouraged efforts to raise collective remittances toward community development projects.
The most successful and enduring of these efforts is a "resource multiplier" program that evolved out of initiatives undertaken by Mexican immigrants in the United States through local hometown associations. Essentially, resource multiplication involves nonprofit organizations raising funds for a particular cause and getting public- and private-sector donors to contribute equally.
The results until now have been remarkable.
What began in the early 1990s as a small project focused on the central-west state of Zacatecas now comprises initiatives in all 32 Mexican states. It was originally sponsored entirely by Mexican hometown associations, but it has evolved into a joint effort involving these groups and all three levels of the Mexican government - each matching the hometown contributions, dollar for dollar.
In 2001, the 3x1 Program, so called because every dollar sent back to Mexico by hometown associations was matched by a dollar from each of the three levels of government, further expanded under the federal-level Secretariat for Social Development. The program took on an exciting new dimension when Western Union became the first private-sector entity to join the innovative partnership in the states of Zacatecas and Michoacán.
Since the 4+1 Program - which adds the private contribution by Western Union - was announced in October 2005, hundreds of thousands of dollars have been spent on projects to improve basic infrastructure and city services as well as generate jobs and revenue for the community.
Among other things, they have helped finance agricultural businesses lacking proper equipment, a computer assembly workshop, a greenhouse for local farmers, a pig farm and an ecological park to attract tourists.
Though small-scale, these projects not only stimulate job creation, economic development and improve standards of living - they also heighten community morale and civic pride. Furthermore, they strengthen the connections between Mexican communities and family members who have made the difficult choice to emigrate to the United States.
The success of this program demonstrates that given the proper resources, even the most underdeveloped areas can thrive.
To accelerate the process and broaden this flourishing initiative, we recently signed an agreement to expand the 4+1 Program into the state of Mexico.
We hope that other companies and organizations will take part in these efforts or similar ones.
Through this kind of creativity, commitment and collaboration, we can help fight poverty, promote development and ultimately help resolve Mexico's persistent migration problem.
Beatriz Zavala is Mexico's social development secretary. Amalia García is governor of Zacatecas. Christina Gold is president and CEO of Western Union. |
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