(ii) Migration and migrant remittances. Traditionally, emigration
has not played a central role in promoting growth in developing
countries. Yet, with the increasing integration of the world
economy, the fertility decline and aging of the population of the
OECD countries, and the lowering of migration costs, remittances
have emerged as a possible growth driver in some developing
nations. While the relation between migration and development
remains controversial, remittances’ weight in GDP and the current
account balance has risen over time. In 1990, migration played a
limited role in Latin America. However, they grew from 1.12% of
the regional GDP in 1990, to 6.71% in 2007 (USAID 2008).
The sharp increase of remittances over the last decade benefitted in
particular Central America, the Caribbean countries, Mexico and
Ecuador. The surge in migration and remittances occurred mainly
during the crisis years of 1998 and 2003, though it did not decline
during the boom years of 2003-2008. Official remittances to the
region increased from US$ 2 to 59 billion dollars, or from 0.23% to
2% of regional GDP between 1980 and 2006 (Table 2). In 2007,
they accounted for 2.3% of the regional GDP (CEPAL 2007) but
for over 11% in Central America, 2.8% in Mexico and about 20%
in Grenada, Guyana and Jamaica. Interestingly, with the exception
of Ecuador and Uruguay, remittances played a greater role in
countries which did not experience terms of trade gains, meaning
that Latin American countries support their current balance by
exporting either primary commodities or migrant labor, and only a
modest amount of manufactured goods.