From: Ed Husain
Sent: Thursday, January 26, 2012 3:19 PM
To: Shannon O’Neil

Very bold stance in your blog yesterday on undocumented immigrants and how they are, essentially, part of the U.S. social fabric.

From: Shannon O’Neil
Sent: Thursday, January 26, 2012 3:20 PM
To: Ed Husain

Thanks – I guess bold is good. And it is true: millions are parents, spouses, or siblings of U.S. citizens. They are not going to leave even if it is hard to get a job…

From: Ed Husain
Sent: Thursday, January 26, 2012 3:27 PM
To: Shannon O’Neil

I prefer bold any day over ‘weighing options’ — taking a stance is more compelling to this reader rather than presenting alternate arguments.

My hunch is to agree with you: it’s a very humane and morally obliging argument. Not to mention economically more viable.

I struggle with its logical conclusion, though: an amnesty for illegal immigrants, and thereby encouraging others to break the law and migrate in the hope of future amnesties.

From: Shannon O’Neil
Sent: Thursday, January 26, 2012 3:36 PM
To: Ed Husain

The difference is this. Especially for Mexican migrants, given the combination of absolute number caps on legal visas combined with the large number of Mexican family members here, parents, kids, and siblings have to make the choice of growing up (for years potentially) apart waiting for a legal family visas, or coming illegally. So do you want to wait and do the paper work and hope you get to see your 4 year old when he/she is 8-9 years old? Or do you bring them illegally? That is an inhumane law, and should be changed. If you can bring your kid within months, then I think people would wait.

Same with parents that are illegal. Do you send them back, meaning they won’t see their kids for 10 years (at least), at least here in the United States? Yes they are illegal, but in part because of the dysfunction of current laws. So laws in my view need to be changed to reflect realities.

From: Ed Husain
Sent: Thursday, January 26, 2012 3:54 PM
To: Shannon O’Neil

Not much of a choice between obeying the law and parting from one’s family for an indefinite amount of time. Thanks for explaining. I come to this with a European bias where we have a mess with consequences of legal and illegal immigration and no ’solution’ in sight. The US seems better suited to absorb immigrants (legal or otherwise). In Europe, we’re wrestling intensely with identity, race, multiculturalism, and what it means to be ‘European’. In contrast, immigrants here integrate into the United States and adopt the U.S. Constitution and history as their own.

Any other readers who would like to weigh in should feel free to do so in the comments section. I look forward to your feedback.

Published in conjunction with Latin America’s Moment at the Council on Foreign Relations.

Republican presidentical candidate Romney speaks as Gingrich listens during the Republican presidential candidates debate in Tampa (Scott Audette/Courtesy Reuters).

During Monday’s Republican presidential debate, Mitt Romney put forth his plan for dealing with illegal immigration: self-deportation. Here is how the exchange went:

Debate Moderator Adam Smith: Governor Romney there’s one thing I am confused about, you say you don’t want to round people up and deport them but you also say that they would have to go back to their home countries, and then apply for citizenship. So if you don’t deport them, how do you send them home?

Governor Romney: Well the answer is self-deportation, which is people decide that they could do better by going home because they can’t find work here because they don’t have legal documentation to allow them to work here.

Will this work? Unlikely. Lessons from Mexican migrants, which comprise more than half of the unauthorized population and, the country closest and presumably the least costly for “self-deportation,” suggest otherwise. Studies show that during the 1970s and early 1980s, roughly one of every two migrants returned home within a year – and seventy-five percent left within two years – meaning most did in fact “self-deport.” The vast majority of Mexicans came not to settle, but to earn enough money to better their and their families’ lives at home. But this pattern – called circular migration by scholars – starting changing in the late 1980s (also when the United States began hardening its southern border). Today, fewer than one in ten immigrants return each year to Mexico. Thirty odd years ago Romney’s policy of self-deportation occurred regularly, today it does not.

Romney says adding stronger enforcement at the workplace (through E-Verify and other mechanisms), would encourage self-deportation again. He explained this part of his strategy:

We have a card that indicates who’s here illegally, and if people are not able to have a card and have that, through an e-verify system determine that they are here illegally then they’re going to find they can’t get work here, and if people can’t get work here they’re going to self-deport to a place where they can get work.

Analyzing migration trends also cast doubt on these expectations. First, while the economic downturn has slowed those coming to the United States from Mexico, it hasn’t done much to send more home. This hints at the underlying reality for millions of America’s undocumented immigrants – they have deep roots in American society that go far beyond their jobs . As spouses, children, siblings, neighbors, customers, homeowners, and worshippers, they are intricately intertwined in America’s social fabric. They won’t voluntarily leave behind their families and their lives. Instead, the only way to change the status quo is through an immigration policy that sees unauthorized migrants for what they really are: an integral part of America’s social fabric.

Published in conjunction with Latin America’s Moment at the Council on Foreign Relations.

Central American immigrants await a train departure to the north of Mexico, on top of a freight train in Arriaga, Chiapas (Jorge Lopez/Courtesy Reuters).

Looking ahead to the new year ahead of us, these next two weeks I want to look at important developments affecting Latin America that are worth keeping a close eye on in 2012. The first is the changing nature of immigration.

The flow of immigrants from Latin America to the United States, a constant and often accelerating trend of the last three decades, slowed in 2011. The most prominent was the change from Mexico. New arrivals fell off a cliff, with apprehensions at the border hitting their lowest levels in seventeen years. The drop is so great that Doug Massey, head of the Mexican Migration Project (a long term survey of Mexican emigration at Princeton University), claims that for the first time in sixty years, Mexican migration to the United States has hit a net zero.

Though Mexico is the single largest source of migrants to the United States, providing roughly a third of all newcomers, they weren’t the only change.  Anecdotal evidence at least suggests that many Brazilian migrants – which once numbered around one million – started heading home as well. Unemployment fell to all time lows, and numerous articles pointed out the labor scarcities both for high and low skilled workers.

There are many reasons behind these trends, some general, some country specific. Many point to the Obama administration’s rather tough immigration policy as one reason for the decline. A record-breaking 400,000 immigrants were deported last year, and immigration prosecutions increased almost eighty percent along the U.S-Mexico border in the last four years. For Mexico, others speculate that the rise of organized crime and violence along the border may deter some from contemplating the journey (though studies, such as that done by Jezmin Fuentes et al., suggest this may be less of a deterrent than many claim).

An important factor is the weak U.S. economy. With unemployment rates hovering at just over eight percent, there are fewer jobs for natives and migrants alike. This has occurred at a time when many of their home countries are growing steadily – at a decent 4 percent regional average clip, and much more in particular countries and economic strongholds. Better job opportunities in the region broadly — but particularly in Brazil — encouraged many to return home, and kept others from leaving at all.

Looking ahead, a U.S. economic recovery would recreate the pull north for Latin Americans seeking to improve their lot. If the Chinese economy stumbles this too could slow returns, or push more migrants north (especially from Brazil, which counts China as its largest trading partner). Meanwhile, flows from Central America are likely to continue as long as economic opportunities there remain scarce. The real question is Mexico. There, demographics have already shifted, with fewer Mexicans coming of age and entering the work force each year. As a result, the Mexican immigration boom of the 1990s and early 2000s is unlikely to be repeated ever again.

Published in conjunction with Latin America’s Moment at the Council on Foreign Relations.

A truck of the Mexican company Olympics bearing Mexican and U.S. flags approaches the border crossing into the U.S., in Laredo (Courtesy Reuters).

It is worth reading the Woodrow Wilson Center Mexico Institute’s new study by Christopher Wilson, entitled “Working Together: Economic Ties between the United States and Mexico.” The report is packed with examples and statistical evidence of the deepening integration between the United States and Mexico since 1993 (the signing of NAFTA), and concisely explains why this relationship is so important and beneficial for the United States.

In terms of trade, for nearly half of U.S. states, Mexico is the number one or number two export destination. For border states such as Texas, New Mexico, and Arizona, up to a third of all exports head to our southern neighbor. But it isn’t just a border issue – export industries in states as far flung as New Hampshire, South Dakota, Nebraska, and Missouri all depend on Mexican industries and consumers. And these are some of the most dynamic trading relations we have. Twenty U.S. states increased exports to Mexico by more than 10 percent each year over the last fifteen years. Investment also flourished. Mexican FDI in the United States, though starting at a low base, increased tenfold over the past two decades.

The report shows that trade with Mexico is particularly beneficial to the United States because these goods incorporate many parts and products produced in the United States. In fact, even though fully counted as imports in official trade data, an estimated 40 percent of the value of Mexican products is actually “made in the USA.” Only Canada comes close to this ratio (25 percent). In stark contrast, only 4 percent of the value of Chinese imports is made on U.S. soil.  This means that products coming from Mexico support homegrown industry and labor. In fact, 6 million American jobs – or 1 out of every 24 – depend on Mexican trade. The study breaks down employment by state – showing for instance that some 200,000 Georgians, 120,000 Indianans, and 100,000 Coloradans owe their jobs to Mexico. Other studies show that export oriented jobs pay more than others, further benefiting U.S. workers. And what is good for Mexico is good for the United States — Mexico’s strong 2011 economic growth should create 150,000 new U.S. jobs.

The report interestingly points out how the United States is now competing with China and others to supply parts and materials used in Mexican production. Here, worryingly, the United States is falling behind – losing market share to its Asian rivals. Part of the problem is the border. Overwhelmed infrastructure, and long and unpredictable wait times at crossings limit competitiveness, costing taxpayers billions in lost revenue and jobs.

There are some signs that these issues are at least appreciated. In 2010 three new border crossings opened, easing congestion along the dense 2,000 mile border, and under its “21st Century Border” project, the Obama administration is working to make commercial and other crossings more efficient and secure. But a conceptual shift is still needed. U.S. politicians, business owners, workers, and the general public need to understand that the path to improving U.S. global competitiveness –defending American industry in the process – runs through, rather than around Mexico (and Canada). Regional integration is vital for U.S. economic recovery and growth going forward.

Published in conjunction with Latin America’s Moment at the Council on Foreign Relations.

Mexican Gov. Enrique Pena Nieto answers reporters' questions at the National Press Club in Washington (Molly Reilly/Courtesy Reuters).

It seems the campaign book so popular in the United States has headed south of the border. After a recent tour through Washington, DC, and New York, former governor and likely PRI presidential candidate Enrique Peña Nieto just released Mexico, the Great Hope. An efficient state for democracy with results.

Arguing that the successive PAN administrations have left the country worse for the wear, Peña Nieto lays out his vision for a government based on guaranteeing citizens’ basic rights (such as security), getting the economy growing at its full potential, and reaffirming Mexico’s leadership as an emerging power on the world stage. He calls for a number of economic reforms, including opening Petróleos Mexicanos (PEMEX) to private investment (still maintaining state ownership), as well as widening the tax base and simplifying the tax code. On security, he favors a more comprehensive strategy geared first and foremost to reducing the violence.

Most of his positions are quite sensible. Mexico needs to (and is already starting to) focus on lowering the escalating levels of violence, as opposed to concentrating on taking down drug kingpins. Economically, opening up PEMEX would increase foreign investment and improve Mexico’s overall competitiveness, boosting jobs and growth in the process. Reforming the tax code would also go a long way to enhancing and diversifying government revenues and  hopefully make it easier to start up businesses. But these two  reforms are also politically difficult — having been on the legislative table for years now, and repeatedly stymied by Peña Nieto’s own party. If he wins, perhaps the former governor will be Mexico’s equivalent of a “Nixon in China” – able to change the dynamics precisely because of his party’s ties to PEMEX’s union – but that remains to be seen.

Much will also depend on the United States. For Mexico to reach its economic potential, the United States will have to grow as well, as the economies today are indelibly intertwined. A U.S. immigration reform – if it happens — also could change things for Mexico. For all its big vision, the book makes clear that there is much that needs to happen during the next presidential term in Mexico to fulfill  this “great hope.”

Published in conjunction with Latin America’s Moment at the Council on Foreign Relations.

U.S. Border Patrol agent Celso Ramos (R) looks at surveillance camera video from cameras looking at the U.S. - Mexico border May 2, 2006. (Rick Wilking/Courtesy Reuters).

The U.S. Government Accountability Office (GAO) released a detailed report last week that criticizes attempts to patrol the Arizona-Mexico border using high-cost technologies.

The report comes ten months after the cancellation of SBInet, Boeing’s “virtual” fence project that started in November 2005 and eventually cost the United States over one billion dollars. While the project in theory required less manpower and provided 24/7 patrols of the border using surveillance towers and software platforms, in practice the results were dismal. Criticism of SBInet ranged from outright technological failures, to poor oversight, to few measurable success metrics.

Although the Department of Homeland Security ended SBInet’s expansion, the GAO report makes clear that the broader emphasis on such technologies has hardly waned. The flawed SBInet system will actually continue to operate along 53 miles of Arizona’s 387-mile border with Mexico, and Customs and Border Patrol (CBP) estimates spending $36 million dollars to continue that project through 2012. The successor to SBInet, the Arizona Border Surveillance Technology Plan, will be a mixture of different surveillance technologies and platforms, with funding requests totaling $427 million over the next two years. The GAO report indicates that the new systems also lack quantifiable metrics or thorough cost-benefit analyses; some of the same problems that plagued SBInet.

To many, “virtual” fence technologies seem like an answer to immigration issues along the U.S.-Mexico border. But, like other attempts to wall-off Mexico from U.S. border states, they simply haven’t worked.

Published in conjunction with Latin America’s Moment at the Council on Foreign Relations.

Young people rest on a sidewalk as a man cleans in Mexico City (Henry Romero/Courtesy Reuters).

An OECD report released this September shows that seven million young Mexicans between the ages of fifteen and twenty-nine are neither in school nor in the labor force. Among OECD countries, Mexico has the third largest “inactive” youth population, behind only Turkey and Israel. Mexico has been increasingly concerned about the security implications of  the vast number of  these “idle” youths — dubbed “Ni-Nis” (Neither-Nors). NiNis are thought to be especially vulnerable to recruitment by organized criminal groups, acting as lookouts, dealers, smugglers, or even hit-men.

Overall, the number of NiNis has decreased by more than 10 percent since 1990, questioning at first glance the ties to rising violence. But a more detailed breakdown of this rootless youth suggests these worries aren’t totally misplaced. Most of the decline reflects the changing prospects for young women – who are much more likely to work or study today than they were twenty years ago. For urban men – the population most likely to be recruited by gangs and organized crime groups – not as much has changed, as their share of the total NiNi population has only decreased by one percent over the past two decades.

A recent study conducted by investigators from CIDE and the Colegio de México shows too that NiNis are concentrated in Central and Northern states — including some of Mexico’s most violent ones. The largest proportion of inactive youths are in Chihuahua, Durango, San Luis Potosí, Guerrero and Zacatecas (and in cities such as Ciudad Juarez).  In municipalities in these five states the numbers have remained stubbornly high over the last twenty years. Also, while NiNis aren’t concentrated in the poorest states, they do come predominantly from poorer families. Seven in ten NiNis come from households earning below the national average. Their parents are also less educated than the average Mexican, suggesting a vicious cycle as they too spend less time in school than their occupied counterparts.

Some factors are working in Mexico’s favor. Demographics should lessen the challenge  a bit – as going forward each year fewer youths will hit the streets. A rebounding economy can help too – as unemployment levels fairly strongly affect the number of (particularly male) NiNis. But Mexico’s government and society still will have to find ways to engage these young people, to help them see beyond the next few years and offer them real alternatives to a life of crime.

Published in conjunction with Latin America’s Moment at the Council on Foreign Relations.

First lady Michelle Obama attends a Hispanic Heritage event at Lamb Public Charter School in Washington (Yuri Gripas/Courtesy Reuters).

At last week’s Republican presidential debate a member of the audience provocatively reminded the candidates that not all of the Latinos in the United States are illegal, and then asked them, “What is the message from you guys to our Latino community?” Nearly everyone on stage dodged the question, saying that they didn’t have a specific message for Hispanic voters because “they want virtually exactly what everyone else wants” such as a healthy economy and access to affordable health insurance. That may be true, but the exchange raises the broader issue of whether the Republicans can connect with the growing number of American citizens with links back to Latin America.

Finding a good answer to this question is more important than ever. Some 50.5 million people – or one in six Americans – fall under this moniker. In every single state of the union, the Latino population grew over the past decade – including in swing states such Florida, Iowa, Virginia, Georgia and North Carolina.

What the presidential frontrunners have done quite vocally is attack one another for “soft” immigration stances and lashed out against “illegals”. Herman Cain ratcheted up the rhetoric to an all time high, suggesting electrifying the border fence and killing anyone who tried to cross into the United States from Mexico.  A wave of harsh immigration laws – requiring police to check the immigration status of anyone they suspect is undocumented, punishing landlords that rent to those without papers, and even checking immigration status at schools — have passed in states including Arizona, Georgia, and Alabama. With the economy in the doldrums and unemployment near historic highs, blaming illegal immigrants for many of America’s ills has gained traction, particularly within the Republican Party.  Though technically not directed at U.S. Latinos, many feel the rising hostility targets them all the same.

While it may be awhile until the full economic effects of these laws are clear (a recent study by the Council of the Americas suggests that the restrictive laws hurt rather than help local employment), the political impact is more immediate. How the polarization will  play out in the primaries –will it further energize a strongly anti-immigrant conservative base, or mobilize Latino and other pro-immigrant groups (along the lines of the coalition that defeated an English-only bill in Nashville, Tennessee in 2009) – remains to be seen. But in the general national election, it is hard to imagine how it helps its proponents.

At the Western Republican Leadership Conference/CNN debate Rick Santorum was the only Republican presidential candidate who seemed to recognize what other prominent party leaders (such as Karl Rove and Jeb Bush) have been saying now for awhile: the Republicans cannot afford to alienate this huge and growing demographic. They also don’t have to. The Republican Party has the opportunity to connect with Latinos on a number of issues, including family values, faith-based views, and an emphasis on entrepreneurship and small businesses. But if Rick Santorum is the only Republican hopeful that understands the importance of reaching out to Latinos, then the party is in trouble. President Obama won a whopping 67 percent of the Latino vote in 2008, and preliminary counts suggest that this demographic will only be more important this time around. History suggests that minorities, while often punching below their electoral weight, tend to turn out for national presidential (as opposed to midterm) elections. In 2012, they will represent over a third of the voting age population — an all time high.  To compete, the Republicans have to come up with a better answer, or they risk losing America’s fastest growing electorate.

Published in conjunction with Latin America’s Moment at the Council on Foreign Relations.

Governors (L-R) Jose Guadalupe Osuna Millan of Baja, Humberto Moreira Valdes of Coahuila, Texas Governor Rick Perry, California Governor Arnold Schwarzenegger, Jose Natividad Gonzalez Paras of Nuevo Leon, Arizona Governor Janet Napolitano and Eduardo Bours Castelo of Sonora pose as characters from the movie "Terminator" at the 26th Border Governors Conference (Courtesy Reuters).

This week the Mexican state of Baja California will host the two-day Border Governor’s Conference. Started nearly two decades ago, the annual meeting brings together governors from all four U.S. and six Mexican border states to discuss the issues directly affecting their states and citizens. At its height in the early 2000s, the governors and their ministers met not just with each other but also with representatives from Commerce, Homeland Security, the Environmental Protection Agency (EPA), and other departments and agencies to influence border-centered debates in both Washington, DC and Mexico City.

But in recent years the conference has fallen on hard times, a victim of polarizing politics. The 2009 session hinted at the divides, as the governors of Arizona, California and Texas failed to make it to Monterrey due to “scheduling conflicts.” It hit its nadir in 2010 in the wake of Arizona SB 1070. The Mexican governors wrote a letter calling the law “discriminatory [and] racist” and announced their plan to boycott the meeting if hosted, as planned, by Arizona Governor Jan Brewer in Phoenix. Brewer cancelled the conference in retaliation. In the end, Governor Richardson of New Mexico held the meeting, but no other U.S. governors attended, leaving the future of this consultative mechanism in limbo.

The conference also has suffered from a sprawling agenda and size. With its initial successes the agenda items grew, as did the number of participants. In recent years there have been some 25 working groups on topics ranging from wildlife to science and technology. The influx of hundreds of staffers and activists has made the process much more cumbersome, and reduced the intimacy and spirit of cooperation that guided the conference in the past. Reduced in large part to the signing of agreements and photo opportunities, many governors (particularly from the United States), began skipping the event.

As the United States and Mexico search for common ground and mutual solutions to pressing problems, it is time to revitalize this mechanism. It should refocus on practical problems facing the border states and their residents. Rather than covering the gamut, the agenda should be streamlined to emphasize a few vital issues. It must enable leaders to actually meet and discuss the serious challenges facing their states and constituencies, re-energizing the consultative element of the event. Most pressing today is security, where policy so far has been guided from the center, even though the effects are concentrated on the border.

Once refocused, the border governors need to organize better to influence their respective governments, shaping policies that in turn shape the border. One potential model is the Pacific Northwest Economic Region (PNWER), which brings together state legislators, governors, civil society and businesses to lobby the federal government and strengthen U.S.-Canada border security and the region’s economic competitiveness. Another is scaling up the San Diego Association of Governments’s (SANDAG) annual binational conference, which brings together local leaders in California and Baja California to address just one broad agenda item at each meeting – such as the economic impact of wait times at shared border crossings.

As Arizona Governor, Janet Napolitano repeatedly said that one of her closest day-to-day working relationships was with Sonora Governor Eduardo Bours. This reality – that cross-border issues and events strongly affect border state residents’ daily lives — hasn’t changed. Revitalizing the Border Governor’s Conference is one means to address these shared challenges, and reincorporate regional problem-solving strategies into larger U.S.-Mexico debates.

Published in conjunction with Latin America’s Moment at the Council on Foreign Relations.

A general view of Sao Paulo, the biggest Latin American city (Paolo Whitaker/Courtesy Reuters).

A new piece by Eduardo Guerrero in Nexos looks at the growing problem of extortion in Mexico. Differentiating it from drug trafficking, he finds it more brutal and violence, and  argues it is on the rise for three reasons: fragmentation of cartels, displacement of crime rings (and their response to expand into new territories), and finally rampant impunity for such acts.

Drug abuse in the United States is on the uptick overall, though use of “harder drugs” seems to be down, according to a recent study by the Substance Abuse and Mental Health Services Administration (SAMHSA). Marijuana use has increased some 20 percent over the last four years, particularly among young people. Today more than one in five Americans aged 18-25 get high on a regular basis. On the other hand, rates of methamphetamine and cocaine abuse have been steadily declining since 2006.

The World Economic Forum released its Global Competitiveness report this week, which measures competitiveness based on twelve benchmarks that include “basic requirements”, such as institutions, “efficiency enhancers” such as market size, and “innovation and sophistication factors”, such as innovation. Among Latin American countries, Mexico had the biggest boost in the rankings, moving up 8 spots from 66^th to 58^th, and improving on 10 of the 12 categories (its only drop was in macroeconomic environment). Brazil also made gains, up 5 places to 53^rd overall (due largely to the size of its internal market and its sophisticated business environment), and Chile remains at the top of the region and the 31^st most competitive nation worldwide. Central American countries such as Guatemala, El Salvador and Nicaragua registered steep declines in their ratings, due to weakening institutions and rising insecurity, while Argentina and Venezuela remained generally unchanged, but near the bottom of the list at 84^th and 124^thoverall, respectively.

Published in conjunction with Latin America’s Moment at the Council on Foreign Relations.