How a U.S. Remittance Windfall Saved Small Towns in Mexico

 Gustavo Alvarez 

Mr. Roddy 

IHSS 

5/17/2022 

A small town in Mexico called Tehuitzingo has been suffering from poverty because of the pandemic but with remittances the town has seen more success and is starting to recover. In February there was a large fair with bouncy castles, carnival rides, and a bull riding contest with a grand prize of a $1000, Most of it donated by residents from Nevada. This fair was not the only uplift of remittances that the town received, there have been many sons and daughters from families in Tehuitzingo that have sent money back to bring relief to the town. Last year, remittances to Mexico was valued around $51.6 billion USD which gave some people higher wagers than they would with a minimum wage job. Not only in Mexico but in all of Latin America remittances make up a large part of the annual income. Many children or parents from families that are in these areas send money from the U.S. While some may think that remittances shouldn't make up a large portion of a countries economy, I think it does well since it can uplift people from the poverty line and is never really permanent. If you look at Tehuitzingo you can see a church being renovated and painted, a new bank just opened, and people are making more than they would with a minimum wage annual salary. These remittances are also helping rebuild from the devastating earthquake in 2017. Officials also estimate that around 2.5 millions would have slipped under the poverty line if it were not for the remittances. Many new things are being built in Tehuitzingo and these remittances are the main payers of it. 



Church in Tehuitzingo being repainted because of new funding from remittances 

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