Social welfare programs in wealthy countries serve two major functions: they buffer citizens from the vicissitudes of the market and personal setbacks, but they also serve an important political function. By reducing economic grievances, social welfare programs help temper public anger and prevent civil unrest.
Global capitalism presents a particular danger to the stability of developing economies, but, as this book shows, such countries take a different approach to welfare, while achieving, more or less, the same aims as their wealthy neighbors. Rather than establish robust social welfare systems that adequately cushion the blow of economic shifts, many developing country governments have retrenched. In the wake of the global financial crisis, they have cut fuel and food subsidies, re-targeting welfare programs to narrow sectors of society, reducing their health and pension obligations, and cutting public sector employment, all in an effort to meet the International Monetary Fund's debt-reduction guidelines. As a result, poor and middle income people in the developing world are paying more for basic goods and services.
This book is about how remittances - the hundreds of billions of dollars international migrants send to family members in their home countries each year - are helping to fill this welfare gap and prevent civil unrest in developing countries. It argues that counting on expatriates to send money home has become a de facto social welfare policy in many cash-strapped developing countries whose economic policies are guided by neoliberal orthodoxy. Looking particularly at Mexico, with supplemental cases in Africa, the Middle East, the Caribbean, and Latin America, the author finds that not only are remittance recipients in these regions less economically aggrieved, but also that they tended to give their governments higher marks for economic performance during the global food and financial crises.
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Outsourcing Welfare: How the Money Immigrants Send Home Contributes to Stability in Developing Countries
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Outsourcing Welfare: How the Money Immigrants Send Home Contributes to Stability in Developing Countries
Roy Germano is a research scholar at the New York University School of Law. His research has appeared in Perspectives on Politics, The NYU Law Review, Research and Politics, Migration Studies, Latino Studies, and Electoral Studies. He has also written and directed five documentaries based on his fieldwork in Mexico and Central America, including the award-winning film The Other Side of Immigration. He holds a Ph.D. in Government from the University of Texas at Austin.
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