By Javier Arroyo & Jonathan Delgado

 Latin American government instability  Political confusion  Corrupt leaders  Government spending unaccounted for  No infrastructure for growing population  Illegal policies set precedent for future  Lack of job opportunities

 Force population to become informal  Informal sector creates own extralegal system  Economy does not have participation of the informal sector  Creates a black market for bribes, laws, election of officials  Creates lack of incentives to become formal citizens

 Jobs: abundant jobs opportunities  Legal protection: rights, benefits, laws, healthcare, etc.  Stability in government  Better life situation: family, schools, more fruitful future

 The prices they charge for services and goods are lower than formal businesses.  Government discourages them with policies and regulations.  The opportunity costs of becoming formal is low, therefore not profitable.

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 Immigrants provide workers here in the U.S.  Undocumented workers allow for low wages.  Cheaper labor for jobs that would not get filled by U.S. citizens.  These workers are the backbone of the U.S.

 Population leaves countries due to the lack of work.  In return they receive remittances: approximately $30 million in 2004  This money goes to the poor and is consumed and not reinvested: used to buy consumer goods rather than to pay for children's education or saved to invest in small businesses.

 Mexico, the biggest recipient, got $13.3 billion in remittances in 2003, a 35 percent increase over the previous year. Brazil got $5.2 billion; El Salvador, $2.3 billion; Guatemala, $2.1 billion; Ecuador, $1.7 billion; Jamaica, $1.4 billion, and Cuba and Peru, $1.2 billion each  Due to current economic conditions individuals are losing jobs and less money is being sent back home.  These countries depend and run their economy off of these funds and a decrease will handicap it.

 Remittances will experience decrease over the years.  Families reunite in the U.S. and there no more need to send the remittances.

 Many well educated individuals cannot perform their expertise in L.A. countries.  No demand for educated professionals, wages are better performing odd jobs.  These individuals seek to use their expertise out of home country and immigrate to the U.S.  “Human Flight”

 More educated individuals produces more productivity 5-15% and less educated individuals less productivity (slow economic growth) and increases poverty.  In U.S. more educated and L.A. countries less educated.  This proves what is presently going on in the economies.

Recommendations  Stabilize populations.  Implementation of higher wages  Plan to reduce poverty and unemployment.  Keep skilled workers.  LA Countries must become more efficient.