Photo: Matching Funds for Remittances to Mexico
The Inter-American Development Bank (IDB) approved a second loan for $21 million to strengthen the 3x1 Program for Migrants of the Government of Mexico, which aims to develop the communities that have sent Mexican migrants abroad by leveraging the investments they make through their community organizations.
Under the program started in 2002, for every Mexican peso provided by migrants, the federal, state and municipal governments contribute an additional peso. Migrants participate through clubs or federations duly registered at Mexican consulates in the United States, and pool their remittances generated by philanthropic activities.
The proceeds of this loan will help finance new electrification and waterworks, street paving, drainage and sewerage infrastructure, as well as equipment for health, education and sports facilities, among others.
The first operation funded 329 social infrastructure projects and provided economic and technical assistance to 629 productive projects. Between 2007 and 2011 around 580 municipalities that suffered from poor infrastructure and basic services benefitted from the program annually.
Over the past three years, collective migrant remittances averaged $36 million per year, with the government contributing an additional $100 million per year in of additional funds.