Payback: Remittances in New York City

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How a critical global economic phenomenon plays out along New York's Number 2 Subway line.

By News Desk — GlobalPost Editors
Published: June 23, 2009 06:32 ET

The glitter of the Brooklyn Bridge and the Manhattan skyline turns gritty for the immigrant communities that live and work in the Big Apple. They send significant amounts of their paychecks back to their families in their home countries. (Lucas Jackson/Reuters) Enlarge Photo

NEW YORK — It’s the American dream: Immigrants flock to this country to seek a better life.

But while they’re building their new lives, millions of immigrants set aside portions of their paychecks to send to family members in the developing world. These money transfers, known as remittances, are centuries old, but it’s only in the past decade that the practice has been intensively studied.

According to the World Bank, in 2008 global remittances reached a record $305 billion. Most of that flowed into developing countries, where it is often a leading source of foreign income. In Haiti, remittances are 20 percent of the gross domestic product; in Kosovo, they are 30 percent.

So it was cause for alarm in March when the World Bank projected that remittances will decline by 5 to 8 percent in 2009.

The hardship — a direct result of U.S. economic weakness — is already felt in many homes abroad. But in New York City, immigrant workers say that as long as they have jobs, they will keep sending money home. As much as they can spare.

That message is heard throughout “Payback,” this reporting project by The International Newsroom, a class at Columbia University’s Graduate School of Journalism, in association with GlobalPost.

In “Payback,” immigrants in New York City from Ghana, Haiti, Kosovo, Albania, Mexico, Yemen, Pakistan and China describe what it’s like to live in two worlds — often residing in the U.S. illegally and working low-wage jobs, while shouldering responsibilities back home, where economic conditions are worse and the opportunities far more limited.

So take a ride on the Number 2 New York City Subway line — which runs from Brooklyn, through Manhattan, and into the Bronx — but along the way marks the story of the world of remittances.

— Introduction by Jackie Bischof, The International Newsroom, Columbia University Graduate School of Journalism.

 

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david wayne osedach, June 23, 2009 11:56 ET

Here in San Diego which is more than 50% hispanic remittances are a way of life. On every corner there are stores that send the money for you to Mexico for about $10 or $15 a pop. They also advertise their services in Vietnamese and French.

Ann Cooper, June 24, 2009 16:15 ET

When the Columbia Journalism School reporters began work on this project, they found New York City is bursting with money exchange outlets -- Western Union windows and regular banks, but also dozens of small storefronts that cater largely to a particular immigrant group living in that neighborhood. With an estimated $305 billion in remittances sent worldwide during 2008, money transfer is a huge global business. Check out this song, 15 Minutes Away, by K'naan. It's dedicated to anyone who's ever had to wait to receive a money transfer. Families all over the world know exactly what he's talking about:
http://www.youtube.com/watch?v=fX3CdNl-7GE

Boyd Campbell, July 1, 2009 16:35 ET

Terrific idea. It's not Mexico only -- an impression the national news media has left. Great job! -- Boyd -- J'77 http://www.visaus.com

Masha, July 12, 2009 08:27 ET

This was a wonderful project, and very well done. I found myself interested in each of the stories. Thanks for this!

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