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Many Dominicans count on the dollars and euros sent by relatives abroad.

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Santo Domingo.- Yania Marcelino was a six-year-old girl living near Dajabon when her mother left their family to find work. She went first to Puerto Rico, then to New York City to work as a seamstress and began sending money back to Marcelino and her three siblings and four cousins. They had to travel by burro to pick up the payments, and sometimes the money sent was lost.

When she was 24, and finally got a visa, she had a two-year old baby to support. “I thought it would be the same as with Mami, that if something bad happens, if he gets sick, they won’t tell me so that I won’t worry,” she says of her decision to leave. “But my choice was to leave him, or to stay and watch him starve.” She cried every day for three months. “It took me three months to find work. And I started to send money.”

Today Marcelino works for a community organization in Providence, Rhode Island and has helped created a local chapter of TIGRA – Transnational Institute for Grassroots Research and Action – a network of immigrants throughout the world who want to use the power of remesas (remittances) to change the conditions that force people to migrate in the first place.

For individuals, sending money home can be the only way to claim dignity from the experience of migration, explains Gladys Gould, another Dominican emigrant involved in TIGRA. “Your life changes, your values change. People want the life of the ones they leave behind to be better in order to feel like it was worth it.”

For nations like the DR, remittances are an urgent response to the economic devastation caused by decades of economic and military intervention by rich countries, especially the U.S. According to DominicanToday, remittances to the country in 2007 totaled nearly US$3 billion, representing approximately 20% of the gross domestic product (GDP).

“The greatest irony is that migrants, fruit of the expulsion that the economic model of capitalist production and exploitation produces, are concentrated in the countries whose policies have obligated them to leave their own homes to be doubly exploited,” explains Gustavo Castro Soto, of the Centro de Investigaciones Económicas y Políticas de Acción Comunitaria in Chiapas Mexico.

This “double exploitation” is carried out in part by an industry that reaped over US$30 billion in profits from immigrants around the world in 2005 alone, according to the World Bank. Led by Western Union, whose net profits exceed US$1 billion a year, the major companies use a combination of high fees and abusive exchange rates to extract as much as 8-20% from each transaction. For a low wage immigrant worker in the U.S., this can equal more than one week's salary every year, money that could be spent on basic needs or more time with family. For family

Members back home, that same amount lost could have been a significant investment in health care, education, or basic household expenses.

TIGRA's network of immigrant groups in the U.S., Latin America, Asia and Africa, has chosen the giant of the industry – Western Union – as a focus of its organizing campaign. Activists protested at the Western Union shareholders meeting in New York City last May, collected thousands of postcards to CEO Christina Gold, and launched a boycott of the company last September. While migrant workers from some countries, particularly in Africa and parts of Asia have few if any choices aside from Western Union, Dominicans living in U.S. cities like New York, Providence and Boston have significantly greater options.

Yet still, Western Union has a great hold on the Dominican market, and according TIGRA activist Fior Viñas, it's also important to stand in solidarity with the rest of Latin America, the Caribbean, and the world: “We have more options now, but many other Latinos don't, and it's about a better quality of life, a better future for them too.”

The better future that Viñas refers to could be financed by a Transnational Community Reinvestment Fund, a global fund controlled by remitters and their families, and financed by money reclaimed from Western Union and companies like it. “We see this as a kind of reparations,” explains TIGRA Director Francis Calpotura. “Western Union has made its profits off the backs of migrant families, and has an obligation to reinvest in our communities, in a way that is directed by those same immigrants and our families.” He cites Western Union's dismal record of community support, totaling only US 49¢ for every $100 of profit, with little if any of that money going directly to immigrant-run organizations.

In the short term, TIGRA's work has already brought some reductions in Western Union fees. The emphasis of the current boycott campaign, which involves pickets at Western Union outlets in cities around the U.S. is to pressure the company to give back to the immigrants who made it rich by returning $1 for every transaction to the Fund. This work will be guided by La Liga Global de Sostenedores Comunitarios, an organization made up of migrant workers and their families around the globe. La Liga will hold its founding assembly in Mexico City this May. Ultimately, according to Calpotura, the group hopes to build a people's economic system that “will facilitate globalization from below, and make migration a choice, not a necessity.”

Written by: Shannah Kurland
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COMMENTS
11 comment(s)
Written by: josean, 16 Jan 2008 12:33 AM
From: United States
This an interesting project let us see how it develops.
Written by: Emma69, 17 Jan 2008 12:57 AM
From: United States
Yes indeed,

Given the needs to match local development projects with solid sources of financing. This has been a real quagmire, particularly when the role of the state and the needed institutions are trailing behind to tackle matters of social development and inequalities. To approach this problem from a vertical standpoint versus a top down scenario, can definitely bring in more insights, and informational variables to adjust the role of advocacy strategies vis-à-vis the needs of local communities, and how decentralized typologies could push further such notions as accountability, participation and ownership to fight poverty.
Written by: davidjule, 17 Jan 2008 11:45 AM
From: United States
I'm not sure why Western Union is being considered the bad guy. There are several other money transfer companies available to anyone who wants to seek an alternative. Western Union is but one option. Most of the transfer companies charge less than Western Union, and no one is forced to choose Western Union. If enough people choose other companies Western Union will get the message. It is simply a matter of becoming an informed consumer.
Written by: Emma69, 17 Jan 2008 12:00 PM
From: United States
I do agree on that one. It is mainly to make sure that market mechanisms can be accessed by everyone. And again it leads us toward the need to strengthen information dissemination with the right mix of policies to make sure that access and information to financial services (among others) are made available to people.
Written by: shannahk, 18 Jan 2008 12:25 PM
From: United States
davidjule asks a good question - why target Western Union? A couple of thoughts -

1. Western Union is "the biggest and the baddest" - it has profit margins considerably higher than any of its competitors. The extra rate it tacks onto foreign exchange is worse than just about any other company. Those smaller firms that go on moto to deliver the money right to your parents' home aren't extracting the same level of money as Western Union.

2. Living on the east coast of the u.s., i was surprised to see in California how few companies (other than the big ones - WU, Moneygram...) send to the DR - it seems the options exist partly based on where you live, and the concentration of people sending to that country.

3. Some people, even in a city in the Northeast, occasionally still need to use WU - because of urgent time factors, or a specific location that's hard for another service to get to, etc.

4. Going after WU encourages other companies to follow suit.
Written by: davidjule, 18 Jan 2008 1:17 PM
From: United States
While I understand shannahk's reasoning, it is not 100% accurate. Almost all money transfer companies can be accessed on line. And with internet cafes, public libraries, etc. almost everyone, regardless of class, race, or statis, etc. can access the internet. Actually, It is a much simpler process than going to an agency. Companies such as ikobi make it even easier and faster still with an ikobi-issued debit card. I send money every week, and in less than 1 minute the money is available to the recipient, at a third of the cost of WU, and it is all done from my home, without any aggrevation.
My point is this: if someone has a problem with WU that is their business, but there are many alternatives, and no one has to use any services that aren't appropriate for them. Why waste time and energy "going after" an entity such as WU when it is much more effective to simply "go to" the competition. By the way, I am not affliated with ikobi in any way except as a user of their service.
Written by: fcalpotura, 21 Jan 2008 5:06 AM
From: Philippines
If the world were flat, then davidjules' invectives would rule. Unfortunately, it's somewhat round and pockmarked. I have studied the money transfer industry closely, and have worked with numerous immigrant communities in the US and beyond. There many craters in davidjules' worldview: even in the US, only 60% of the unbanked have access to the internet, and less than 1% use it to send money for any of the following reasons--they don't have an account to draw from, they unused to e-commerce, and, most importantly, access on the receiving end is spotty specially in areas with no banks and financial institutions to draw money from. And of course it assumes that you speak english. (I have a college degree and even I find it difficult to decipher and navigate those websites). Most importantly, it's a question of justice--should a company who knowingly benefits from a predatory relationship with the most economically-challenged segment of society get away with it?
Written by: davidjule, 21 Jan 2008 10:16 AM
From: United States
Again, I understand the reasoning, but, again, the logic is faulty. First, let me say, I have no love for Western Union, but neither do I have any unrational animosity toward them. They are just another business entity in a world (flat or round) full of businesses, no beter or worse. Now, to the point of falcalpotura's remarks, the issue of the unbanked is perhaps true, but I don't suppose the unbanked would be sending money from place to place. If the receiver's location has no banks or financial institutions I doubt if there would be a WU office close by either. As far as the issue of useability goes, the sites I have seen have been relatively easy to understand, and all have language options. And lastly, the world is becoming increasingly flat, and technology is one of the resonns for this change. Technolgy has been embraced by the poorer countries of the world and that has helped to level the playing field. Falcalpotura's interest in justice in laudable, but somewhat misplaced.
Written by: fcalpotura, 22 Jan 2008 3:25 AM
From: Philippines
Please do your homework before coming to a "faulty logic" conclusion. WU has 325,000 locations worldwide; all banks combined have about 50,000 branches. Presence of banks in poor communities, specially if majority are people of color, are scarce and that's why WU enters this vacuum and takes advantage of an already unfortunate situation for communities. Not all businesses are the same: some take more responsibility of their "footprint" than others. And if we are to build a global community that supports families, then EVERYONE (including corporations) have to be held to similar standards of fairness and equity. It is your logic of somehow exempting business from their role and responsibility of creating a better world for all to share. I hope that we're all interested in that kind of world. Are you davidjules?
Written by: davidjule, 22 Jan 2008 6:30 AM
From: United States
It's davidjule, not pural. Of course, I'm for a "better world." What kind of a question is that? Anyyone can say they "want a better world for all to share." Who could argue? The questions are, what is your vision of a "better world", and how do you intend to create it? Apparently you have your mind made up as to what this better world will look like and how you will attain it. My best wishes to you. Just one suggestion however, you might want to consider that not everyone who disagrees with your vision or your tactics is your enemy. You might even consider that you can learn a great deal through open discussion, without the preconceived notions protected by a defensive mindset and supported by ideological group-thought. Good luck on your quest.
Written by: Emma69, 22 Jan 2008 11:35 AM
From: United States
The equity and justice concepts do have a say in these equations which move beyond the realms of any philosophical standpoints. And in the case of market dynamics in the example of WU, the integration of equity and justice as tools to strengthen the reach of public policies broaden the debates vis-à-vis the role of corporations and the state to define the degree of inclusion of its various members.
Moreover, these arguments taken in the context of dire deprivation certainly shed some lights in terms of market functionings and how governments shiould make the distinctions between what we call "substantive justice" and "procedural justice" to regulate certain corporate behaviours and define the boundaries of communities.
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