Economy cuts into immigrants' cash for homelands
By Marisa Maldonado
Norwich Bulletin / June 7, 2008

NORWICH, Conn.—Juan Garcia goes to Kino Envios about every week to send money home to his wife and 14-month-old son in Mexico City. He transfers about $400 to his family. Because his wife stays home to take care of their son, that is nearly all money she has to live on.

Garcia sends the money through the Franklin Street store in Norwich, which uses a wire service that helps people send money to other countries.

"It's easy to work here," Garcia said. "That's why all the people come here."

While immigrants often come to the United States from Latin America for better lives, fewer of them now are sending money home, according to an April study from the Inter-American Development Bank. About 50 percent of Latin American immigrants surveyed said they send money home, a decrease from 73 percent two years ago.

Meanwhile, the amount of money sent home has barely risen nationwide, from $45.4 million in 2006 to $45.9 million this year. But the opposite is true locally while the same amount of transfers are being made, people are sending less money to their families, according to local store owners and leaders in the Hispanic community.

"In terms of gasoline, food, clothing, everything's going up," said Ruben Abreu, executive director of the nonprofit, Hispanic-empowerment organization Centro de la Comunidad Inc. in New London.

"If you have a finite amount at the end of the week, and prices have gone up 3 or 4 or 10 percent, that's going to cause less money flowing down to those who are waiting for it," he said.

At Kino Envios, about 1,200 transfers have been made this month -- about the same as in May 2007, owner Kino Bolanos said. But about 35 percent less money has been sent, Bolanos said, who declined to reveal the specific amount for security reasons.

"People are working less now," Bolanos said through an interpreter, his son Edwin. "(If they sent) $200, they're sending $100. They don't have enough hours to work."

Edwin Bolanos said people pay a fee based on the country and amount of money being sent but declined to say a specific amount.

Garcia has a steady job at Johnny Rocket's restaurant at Mohegan Sun. But he said people working in landscaping or construction might struggle more in finding work.

"They know they have to stop in the winter time and can't work outside," Garcia said.

Other business managers, such as Reynaldo Crisostomo of C-Town Supermarket in New London, have not seen a decrease in customers. Starrwood Food Market sees between 15 and 20 transfers from Latin American immigrants a month, said office manager Ruth Strout, a number that has not changed.

"They seem to be sending less," Strout said. "Usually a couple years ago they would send $100 (in a transfer). Now they're sending between $40 and $50."

The study projects at least 2 million families, mostly in Mexico, will fall below the poverty line if money sent from the U.S. continues to decline -- which could push more of them to leave the country, although the survey didn't give possible destinations.

Prices also are rising in Latin America, Abreu said. For example the price of tortillas is expected to go up by 18 percent this month, according to the National Chamber for the Tortilla and Dough Industry.

"Sometimes entire villages, without that money, they just disappear," Abreu said. "It could be, for some places, a very scary situation."

While the value of the dollar is falling, the cost of everything is going up in the Dominican Republic, from where Ceferina Medoza emigrated in 2000. She no longer can send as much money to her mother and sister, because she now pays more for her own electricity, rent, gas and food, she said.

She recently sent about $30 to her sister from Kino Envios. She also sends about $200 a month to her mother, who no longer works. Her family does not solely live off of the money Torres sends, but it still "es importante."

"My country, everything is expensive, too," Torres said. "They need more."

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