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Mexican migrant support program to improve with IDB support

Loan of $21 million will step up investments of Mexican migrants in their home communities

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 transnational dimension is the highlight of this program, because actions are taken in Mexico and abroad. This dimension touches migrants, by appealing to their sense of belonging and their continued commitment to their communities back home," said Carlos Pineda Mannheim, IDB project team leader.

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 money will also help strengthen the program’s efficiency, transparency and accountability, as well as improve its management capabilities, investment and institutional coordination.

For effective accountability, the idea is to continue promoting the creation and training of mirror clubs based in their communities of origin. The goal is to establish more than 2,100 clubs as they form the mechanism for social oversight of the projects, and have a key role in monitoring the implementation and the maintenance of the works.

The IDB has been supporting this pioneering joint responsibility program since 2006. 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.

The total estimated project cost is $72.7 million, of which $21 million will be financed by the IDB's Ordinary Capital resources of the Bank and $51.7 million from the local counterpart. The executing agency will be the Ministry of Social Development (SEDESOL) and Nacional Financiera (NAFIN) will act as its financial agent.