1061880
research-article2021
LAPXXX10.1177/0094582X211061880Latin American PerspectivesStoll / REMITTANCES AS RENTS IN GUATEMALA
Remittances as Rents in a Guatemalan Town
Debt, Asylum, the U.S. Job Market, and Vulnerability to
Human Trafficking
by
David Stoll
Exporting labor to the United States has become the principal industry of Guatemala,
El Salvador, and Honduras. Central Americans have been moving to the United States in
large numbers since the 1980s, but how they gain entry has shifted thanks to the interplay
between the migration industry and border enforcement. Many Guatemalans, Hondurans,
and Salvadorans are paying smugglers to deliver them to U.S. border agents so they can
apply for asylum. The Trump administration’s harsh reactions have energized asylum
advocates, who argue that applicants are fleeing dislocation by neoliberal capitalism.
Migrant households in the Ixil Maya municipio of Nebaj, Guatemala, express an optimistic interpretation of this situation that they call their American Dream. Their wish for
high wages in the United States can be seen as the latest in a series of “hope machines”
that interpret disadvantageous relations of exchange as the path to a better future. Such
hopes are based on the irrefutable buying power of the dollar, but migrant remittances to
their families conceal the extraction of rents. U.S. asylum advocates understandably stress
that the most important challenge facing irregular immigrants is their legal status.
However, with or without legal status, the underlying issue for migrants will continue to
be their position in the U.S. job market, because this generates household indebtedness that
increases vulnerability to human trafficking.
La exportación de mano de obra a los Estados Unidos se ha convertido en la principal
industria de Guatemala, El Salvador y Honduras. Los centroamericanos se han estado
mudando a los Estados Unidos en grandes cantidades desde la década de 1980, pero la
forma en la que obtienen la entrada ha cambiado gracias a la interacción entre la industria
de la migración y la industria de la deportación. Muchos guatemaltecos, hondureños y
salvadoreños pagan a coyotes para que los entreguen a agentes fronterizos de Estados
Unidos, pudiendo así puedan solicitar asilo. Las duras reacciones de la administración
Trump han energizado a los defensores del asilo, quienes argumentan que los solicitantes
están huyendo de la dislocación causada por el capitalismo neoliberal. Los migrantes en el
municipio ixil maya de Nebaj, Guatemala, tienen una interpretación optimista de esta
situación, la cual llaman su Sueño americano. Su deseo de salarios altos en Los Estados
Unidos puede ser visto como la última en una serie de “máquinas de esperanza” que
interpretan las desventajosas relaciones de intercambio como el camino hacia un futuro
mejor. Dichas esperanzas se basan en el irrefutable poder adquisitivo del dólar, pero las
remesas de los migrantes a sus familias ocultan la extracción de rentas. Los defensores del
asilo en Estados Unidos enfatizan, comprensiblemente, que el desafío más importante que
enfrentan los inmigrantes irregulares es su estatus legal. Sin embargo, con o sin estatus
David Stoll teaches anthropology at Middlebury College in Vermont. He is the author of El Norte
or Bust! How Migration Fever and Microcredit Produced a Financial Crash in a Latin American Town
(2012).
LATIN AMERICAN PERSPECTIVES, Issue 247, Vol. 49 No. 6, November 2022, 168–185
https://doi.org/10.1177/0094582X211061880
DOI: 10.1177/0094582X211061880
© 2021 Latin American Perspectives
168
Stoll / REMITTANCES AS RENTS IN GUATEMALA
169
legal, el problema subyacente para los migrantes seguirá siendo su posición en el mercado
laboral estadunidense, ya que esto genera el endeudamiento de los hogares e incrementa
su vulnerabilidad a la trata de personas.
Keywords: Migrants, Remittances, Border enforcement, Asylum advocacy, Human
trafficking, Guatemala
In the first eight months of fiscal year 2019, the U.S. Department of Homeland
Security arrested 1.8 percent of the population of Honduras, 1.3 percent of the
population of Guatemala, and .9 percent of the population of El Salvador. Of
the 607,774 persons from these countries taken into custody at the U.S.-Mexican
border for all of 2019, 81 percent were either family units or minors (Nowrasteh,
2019). According to asylum advocates, many were refugees fleeing from murderous street gangs, corrupt police, domestic violence, climate change, and
neoliberal capitalism. Migrants themselves tell of harrowing experiences, but
their most common theme is economic—that they have no hope of a livelihood
except in the United States. If they are fleeing neoliberal capitalism, then they
are fleeing from its periphery to its core, and their remittances have become
crucial to sustaining the neoliberal model. In 2018, Guatemala, El Salvador, and
Honduras received a total of US$19.5 billion in remittances, mainly from the
United States. From all their other exports combined—agricultural, extractive,
and manufacturing—they received a total of US$20.1 billion (Dialogue, 2019;
Workman, 2019). Exporting labor to the United States has become Central
America’s principal industry.
In this state of dependency, migration scholars argue, the U.S.-Mexican border has become a “state of exception” in which the two governments routinely
violate the rights of undocumented border crossers and residents (De Leon,
2015: 27–28; Diaz-Barriga and Dorsey, 2015). Thus, for example, border hardening diverts migrants to dangerous terrain where some 400 die each year
(Romero and Dickerson, 2019). Yet if this is a state of exception, migrants hope
that it will be their corridor to higher wages and social entitlements. In the
Guatemalan town where I interview migrants, many take out large loans to pay
smugglers to deliver them to U.S. border agents. As of 2019, despite the frantic
blockades of the Trump administration, many Nebaj migrants still seemed to
be winning quick release into the U.S. labor market.
In this essay, I will analyze migration from the Guatemalan municipio of
Nebaj as the latest in a series of “hope machines” guiding the responses of
Nebajenses to the hardships and opportunities of neoliberal capitalism. I derive
the idea of the hope machine from three sources. The first is James Ferguson’s
(1994) “anti-politics machine,” a term that he applied to the international development apparatus. The second is Edward Fischer and Peter Benson’s (2006)
ethnography of the social production of desire, including the pervasive aspiration of Mayan peasants to superar (overcome adversity and prosper). The third
is Daniel Reichman’s (2011) ethnography of a Honduran coffee-producing
town and how it has redefined itself in terms of the competing moral projects
of social justice, evangelical Protestantism, and migration to the United States.
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Putting the three together, I define a hope machine as a system of exchange
that conveys a moralistic vision of superación (advancement) and delivers tangible rewards but that can turn against participants by extracting value from
them and reinforcing power differentials. In the case of the migration hope
machine, what it conceals, according to an innovative analysis by the German
political scientist Hannes Warnecke-Berger (2018), is the extraction of rents.
What this means in practice, I will add, is pressure within kin-based migration
networks that can generate not just deep indebtedness but coercion. To neglect
the debt and coercion is to neglect how obtaining asylum and joining the U.S.
job market can combine to produce vulnerability to human trafficking.
NEBAJ AND ITS COMPETING HOPE MACHINES
For an example of how migration to the United States redefines the lives of
Central Americans, let us consider the hardships, ambitions, and strategies of
a Highland Maya boom town. Nebaj has exploded economically not by extracting a valuable mineral or manufacturing coveted goods but by exporting its
young people to the United States and harvesting their remittances. Populated
mainly by Ixil Mayas but also by K’iche’ Mayas and nonindigenous Ladinos,
the municipio has joined sociologically similar towns in Huehuetenango
Department to become a migration hub (Camus, 2007; 2008). Streets are clogged
with motor vehicles. Most of the old adobe houses have been replaced by multistory cement blocks. All but the poorest inhabitants have cell phones, and the
overriding topic of conversation is how to superar (get ahead).
A decade ago, drawing on monthly remittance estimates in April 2008, I
estimated that 4,041 Nebajenses had reached the United States (Stoll, 2012:
55–56). Many have since come home, but Nebajenses are astonished at how
many more of their relatives and neighbors have gone north. They call it the
American Dream, and about it they express divided emotions—from enthusiasm to tortured family debates and shock at the stratagems and risks it entails.
The stories that Nebajenses tell each other and how they debate them are the
basis of my analysis. Because paying smugglers to go to the United States has
many sensitive ramifications, I have never done a household survey. Instead,
in annual visits, I have asked migrant households and town intellectuals for
stories they are willing to share and, with their help, looked for patterns.
The Ixils occupy what used to be a remote corner of Guatemala’s western
highlands. Despite the Spanish Conquest and the demographic collapse, they
were in possession of their land until, at the end of the nineteenth century, coffee planters began to claim the lowest and most profitable valleys. Through
legal chicanery and distilled alcohol, planters lured Ixils into debt peonage and
took over their town governments. The plantation economy opened the way
for a wider array of outsiders to recruit Ixils into their particular visions of
progress. These included revolutionaries launching an insurgency against
plantation owners and the Guatemalan state. Ixils neither founded nor led the
Ejército Guerrillero de los Pobres (Guerrilla Army of the Poor—EGP), but they
contributed hundreds of fighters and thousands of auxiliaries, and their contribution to the struggle brought the Guatemalan army into Ixil country for the
Stoll / REMITTANCES AS RENTS IN GUATEMALA
171
first time. The army killed thousands of suspected supporters, destroyed rural
settlements, forced survivors to live in closely guarded strategic hamlets, and
shut down the Catholic Church.
Protestant missionaries had been in Nebaj since the 1930s but converted only
a handful of Ixils. Now they started relief projects for Ixils under army control,
and Pentecostal churches (all led by Guatemalans) popped up everywhere. The
Catholic Church returned with its own relief projects. As the war came to a
negotiated end in the 1990s, more aid projects rolled in, and Nebaj has been a
magnet for international aid ever since. Amidst the cavalcade of improvements,
two discourses have had special resonance with Ixils—what I call the evangelical hope machine and the social justice hope machine. Protestant churches
are, judging from their multiplication in every village and neighborhood, the
most successful new institution to arise from the war. Ixil Protestants refer to
themselves as evangélicos (because they teach salvation through Jesus Christ
alone), but most are Pentecostals who call down the Holy Spirit and speak in
tongues. Their loud, rhythmic services have overshadowed the folk Catholic
cargo system that anthropologists used to regard as the core of Mayan culture.
The Catholic Church has made a strong recovery but represents a smaller fraction of the population than before. The majority of Ixil leaders—in political
parties, the town hall, aid projects, and business—are now evangelicals.
The social justice hope machine is quite a contrast. While evangelicals usually preach nonresistance to unjust power structures, these are denounced by
social justice activists. Some come out of the Catholic communal tradition and
liberation theology. Others come out of the Maya movement, which has arrived
in the form of cultural revitalization projects. As of 2019, however, the most
visible social justice organizers are demobilized cadres of the EGP. The 1996
peace agreement envisioned that the EGP and its allies would cohere into an
effective political party, but this failed to happen on the national level. Locally
in Nebaj, the postwar EGP also failed to harvest votes. Social justice projects
supported by international donors—including the return of refugees, new
development associations, compensation payments for the army’s victims, and
the exhumation of mass graves—failed to build political muscle.
More recently, ex-EGP cadres have succeeded in asserting leadership by
mobilizing opposition to corporate-owned hydroelectric projects, which take
advantage of steep topography to supply the national power grid but fail to
provide reliable electricity to nearby villages; importing the institution of
alcaldías indígenas (indigenous mayoralties) from other municipios in order to
reinvent indigenous self-governance as they see it; and recruiting witnesses for
the 2013 genocide trial of the former dictator Efraín Ríos Montt. Not all Ixils
supported putting Ríos Montt on trial; some continue to extoll him for humanizing the army’s counterinsurgency operations and saving their lives. But all
the powerful testimony about army brutality convinced many Ixils that what
they used to call the “armed conflict” was actually a genocide.
The social justice and evangelical hope machines are competing moral projects, but Ixils merge the two idioms with ease (e.g., “Just as John 20:23 says, if
Max gives us his auto-crítica, then we have to forgive him”). Both hope machines
offer material improvement: if evangelicals stress the budgetary advantages of
abstaining from vices, social justice activists demand a more equitable future.
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Both can claim to have delivered some of their promises. Most Ixils now have
a higher standard of living than their parents did. Most are living in better
houses, receive more social services, and own more consumer durables than
Ixils did a generation ago. Unfortunately, neither pastors nor activists have
convincing answers to the question I hear most often from Ixils: “Where can my
offspring and I find work?”
POPULATION GROWTH, UNDEREMPLOYMENT,
AND THE EXPORT OF LABOR
Guatemala is a tropical country with year-round agriculture, so men can
always work as laborers and women as domestics. For at least a century, Ixils
and their fellow Nebajenses have been deeply engaged in labor migration to
other parts of Guatemala, but menial occupations will not pay for several children’s secondary education or medical emergencies, let alone a house with a
cement floor. When Nebajenses say “No hay trabajo” (There is no work), they
wish to convey that, despite all the work they do, they are unable to pay for
more than bare necessities. The many thousands of wartime deaths have not
prevented Nebaj’s population from more than doubling since 1980. Parents
value children as a labor source, so most continue to produce four, five, six, or
more offspring even though they lack enough land for subsistence. In contrast
to the situation before the war, most children now start primary school and
many are starting secondary school. But paying for tuition, uniforms, and supplies, as well as mandatory class excursions and presents for teachers, is death
by a thousand cuts. To cover all this, many parents take out loans that they plan
to repay when their high school graduate becomes a profesional—a teacher or
extension agent with a salary. But such jobs are scarce and usually can be
obtained only through family or political connections. Despite all the resources
that Nebajenses have poured into schooling, it often fails to boost their incomes.
The first Mayas to move to the United States in large numbers came from
neighboring Huehuetenango Department. The first Ixils to follow them, in the
late 1990s, sold land or borrowed money to pay Huehuetecos to smuggle them
north. Their success in getting past the U.S. border, finding jobs, paying debts,
and sending money to their families vouched for a new hope machine—the
American Dream. Even stay-at-home Nebajenses joined the town’s migration
industry by becoming moneylenders. Market women took out multiple loans
from financial institutions and neighbors in order to reloan to migrants at 10
percent monthly interest. The result was a quasi-futures market not in a commodity such as maize or beans but in the one factor of production that
Nebajenses had in abundance: their own labor power. As they went north and
their remittances were harvested by speculative lenders, this bubble in remittance futures produced a second speculative bubble, in local real estate.
Migrants acquired a reputation for paying any price for house lots. This gave
sellers windfall profits that they could plow into yet more high-interest loans
to the next crop of migrants.
The two bubbles—in remittances and real estate—popped in late 2007. Why
then? One trigger was the collapse of several borrowing rings. Another was
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173
migrants’ failing to find enough work in the United States to keep up with their
loans. Without legal status or English, Nebajenses were completely dependent
on previously arrived relatives to find work. This is why most of them crowded
into small ethnic niches in various locations that, in 2006, seem to have become
saturated with too many job seekers. Back home, many borrowers had been
keeping up with payments only by taking out additional loans from institutions, neighbors, and moneylenders. Borrowing chains extended from migrants
to relatives to moneylenders to banks, at high rates of interest and with low
amounts of collateral. Toward the end of 2007, so many migrants stopped making payments on their loans that borrowing chains went into serial default.
Financial institutions stopped making new loans, which sent default rates even
higher. As credit suddenly vanished, the number of Nebajenses going north
plunged, as did the price of real estate.
THE NEW ERA OF UNDERAGE MIGRATION
From my 2007–2012 interviewing I never expected a robust recovery of
Nebaj’s migration industry. I failed to anticipate that the U.S. debate over border enforcement would open up spectacular new opportunities. In 2014, as
unprecedented numbers of underage Guatemalans, Hondurans, and
Salvadorans arrived on the southern border, the Department of Homeland
Security (DHS) released a telling graphic. Over four and a half months it had
detained between 75 and 150 “unaccompanied alien children” from Nebaj
alone (Public Intelligence, 2014). From Ixil matrons I learned that they were
sending relays of sisters, daughters, and grandchildren to the United States in
ways that enabled the older ones to gain provisional legal status and become
legal sponsors for the younger ones. Until this point, most Nebaj migrants were
male. Few females made the trip because of the widely recognized danger of
being raped. Now many women were going north, usually with a small child
or pregnant. Nebajenses were also applying for tourist visas. For the lucky few
whose applications survived their face-to-face interviews with the U.S. embassy,
a US$160 tourist visa became a de facto seasonal work permit. They could
arrive legally at an airport, join relatives, and work in the informal sector for six
months, then fly home for six months before repeating the cycle the following
year.
Another sign of the new era was a remarkable drop in the prices charged by
smuggling networks. In response to stricter border policies, the cost per capita
had risen from as low as US$3,500 in the late 1990s to US$5,000–6,000 by 2007
and US$10,000+ by 2019. The all-inclusive price covered evading or bribing
Mexican police, evading or bribing U.S. border enforcement, reaching a Phoenix
or Houston safe-house, and then being delivered to one’s relatives wherever
they resided. Now smugglers are charging a much lower price for a new kind
of trip. One name for it is entrega a la frontera (delivery to the border). Smugglers
instruct their customers to surrender to border agents and say that they are
afraid to go back to Guatemala. The price ranges from US$2,000 to US$4,000 for
a teenager or a parent-child combo. Such prices put a coyote trip through
Mexico within reach of a wide range of Nebajenses. Given that remittances
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have once again bid up even marginal house lots to US$10,000 or more, anybody who owns a shack has the necessary collateral to finance a trip north.
Expediting this new chapter in migration history are humanitarian reforms
in U.S. border enforcement. The William Wilberforce Trafficking Victims
Protection Reauthorization Act was passed by the U.S. Congress in the closing
months of the Bush administration (2001–2009) and then implemented by the
Obama administration (2009–2017). Bolstered by asylum advocacy and court
orders, it enables almost anyone with a child to file an application for humanitarian asylum. One exception is previous deportees; most are barred from
applying for asylum, and so, for them at least, evading detection the old-fashioned way is still mandatory.
Two very different kinds of “children” figure in Nebaj’s current migration
strategies. In the U.S. legal system, anyone under the age of 18 is a minor, therefore a child, but not in U.S. society, where addressing an adolescent as a child
is a serious insult. Adolescents are not children in Central American society
either, for the obvious reason that they are expected to contribute to their families as soon as they reach puberty, if not before. Thus in Nebaj, sending ambitious 15- and 16-year-olds to the United States is nothing new or remarkable.
However, using small children to make asylum claims is deeply troubling to
some Nebajenses (of the 132,856 mainly Guatemalan, Salvadoran, and
Honduran apprehensions on the Mexican border in May 2019, 84,486 consisted
of adults accompanied by juveniles [U.S. Customs and Border Protection,
2019]). “That’s the thing everyone knows now,” a migrant told the Washington
Post (Miroff and Sieff, 2019). “If you go, you need to bring a child. You can bring
someone else’s child, but they say they are now doing DNA tests on the border,
which makes it difficult.”
Consider three Nebaj children—aged 10, 6, and 3—whose three fathers used
them to gain entrance to the United States in 2018. The children were required
by the DHS to go to school. The fathers were pleased that the schools were freeof-charge, but daily transport was a steep cost, as was child care after school.
Could they fly their children back to Guatemala? The nearest consulate was
willing to provide passports, but the children would need an adult chaperone
on the plane. An evangelical pastor was agreeable if the fathers paid his fare.
But the pastor (my source of information) was puzzled by the fathers’ thinking.
“Are you really sure that you want to send your kids back to Guatemala?” he
asked. “If it was me,” he told them, “I would want my kid to study in the
United States, because everything in the United States is a little better. The
school is better, the house is better, the food is better, the clothing is better.” But
the children were crying for their mothers, as the pastor put it to me, and the
mothers were crying for their children, so he brought them home in March
2019.
Nebajenses also debate whether it is a good idea to send adolescent girls
north. Women’s rights have become a staple of international projects in Nebaj
since the 1990s. Every institution and project must hire women staffers, the
town’s municipal and national police include women, and parents are enjoined
to send their daughters as well as their sons to school. But parents continue to
enforce sexual double standards on their daughters to protect them from schoolmates and older married men. Pregnancy at 15 or 16 is still very common, and
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175
impregnators often fail to become responsible fathers. Aggravating conflict with
daughters is status competition out on the street, via the high heels, smartphones, and motorcycles flaunted by nouveau-riche girls. Thus more teenage
girls are demanding to go north. If they are not allowed, I hear from worried
parents, some girls are threatening to get pregnant or kill themselves.
If a daughter’s alternatives are dropping out of school to have a baby or
finishing school and not finding a job, then sending her to the United States to
earn money can look like the best alternative. But here Nebaj families have run
afoul of the DHS requirement that minors can be released only to plausible
sponsors, usually relatives, who sign legal pledges to send them to school. In
the case of one 16-year-old girl, the plan was to persuade the DHS to release her
to a girlfriend, who also had arrived as a minor and who supposedly would
make sure that her buddy went to school. The DHS did not buy this idea and
so, along with a number of others, the unfortunate 16-year-old was locked up
in a shelter.
Her father, through a Nebaj organization, asked me for help. “I’m just a poor
man and do not have the resources to send my daughter to school,” he said.
“That’s why my daughter went [to the United States], to look for her future and
obtain an education. I beg you to speak with the social worker. . . . Maybe there
is a social organization [that can help her].” Notice that, while the father cannot
afford to send his daughter to school in Nebaj (costing perhaps US$500 a year),
he can afford to borrow several times that amount to send her to the United
States because he expects her to pay him back. Until she escapes the shelter and
finds a job, all his cash flow will be sucked up by the interest on her loan. DHS
school requirements are one reason sending parent-child combos has become
a popular alternative to sending teenagers. Owing to a court order, U.S. authorities are not allowed to detain family units for more than a few weeks.
GOING NORTH AS A MORAL ENTERPRISE
Many migration scholars and advocates now frame migrants from Guatemala
as refugees from violence, poverty, and climate change. On a number of occasions, Nebajenses have asked me to write letters supporting their applications
for asylum. Judging from what I have seen and heard, Nebajenses typically tell
U.S. immigration judges that they are fleeing the consequences of the
Guatemalan civil war and threats from Nebaj gangs. It is doubtful that they are
running away from gangs, because gangs have little presence in Nebaj. True,
you can find a few tags spray-painted on walls, but no neighborhoods are controlled by gangs, and there is no pattern of gang-style killings. As does most of
the rest of the western highlands, Quiché Department has one of Guatemala’s
lowest homicide rates.
Another theme in Nebaj asylum applications is domestic violence. In 2014
the Board of Immigration Appeals—the highest U.S. immigration court—ruled
that an unauthorized immigrant named Aminta Cifuentes could qualify for
asylum on grounds of life-threatening abuse by her husband in Guatemala.
Four years later, as part of the Trump offensive against asylum claims, U.S.
Attorney General Jeff Sessions barred domestic violence as a criterion. No one
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seems to know how many applications have been filed on these grounds. But I
do know that some Nebaj women have paid for trips north so that they can ask
U.S. courts to protect them from their allegedly murderous husbands. I also
know of men who say that their wives suddenly disappeared with children in
hand, only to surface in the United States and file accusations that the men say
are false.
When U.S. legal standards provide an escape hatch for some Nebajenses,
they transfer the cost to other Nebajenses. Consider the pseudonymous Pedro,
a high school graduate in his twenties who had tried to enter the United States
on four occasions. Even as these failures saddled his family with enormous
debts, his in-laws were successfully moving a sequence of parents and children
into provisional U.S. legal status. And so a relative persuaded him to try once
more, this time with his underage wife and baby. Upon delivery, the DHS obligingly took custody of the wife and baby but deported Pedro. When I heard
about him in 2017, his wife was looking forward to a new life in the United
States, including a good education for her child and a good job for herself, but
back home Pedro was suffering recriminations from his family for indebting
them even further. He was also on suicide watch.
Such situations can be played down as only a footnote to the hope machine
that sends so many Nebajenses north. Nebajenses weigh the risks against an
American Dream that has a strong factual basis in U.S. wages and living standards. They marvel not just at all the dollars they will earn but at U.S. social
services. Is it true that American parents don’t have to pay for their children’s
education? Is it true that children get free lunches at school? Proud grandparents tell me that their daughter gave birth in an American hospital without
having to pay anything or that their daughter and grandchildren receive free
food from the government.
Not echoing as loudly in Nebaj is the intense suffering, along the border and
in the detention process, denounced by U.S. human rights activists. On each of
my last three visits—in mid-2017, mid-2018, and mid-2019—I expected to hear
that President Trump’s harsh policies had taken a toll on Nebaj’s migrants.
Instead, migrant households told me about a permiso or special program under
which the United States was welcoming women and children. They puzzled
over why President Trump denounced illegal immigrants while accepting
more than President Obama did. Could Trump have a hidden agenda? they
asked. Were his agents organizing the migrant caravans out of Honduras?
Given that the United States was a nation of old people and Guatemala a nation
of young people, was the United States welcoming Guatemalans to turn them
into soldiers for its next Mideastern war?
As of June 2019, my interlocutors believed that a large majority of migrants
were gaining entry. Any foothold generates a new loop in the rumor mill. Thus
parents wonder if their sons or daughters can find Americans to adopt them,
help them enter a local job market far from the competition and tension of
crowded immigrant enclaves, and support their education in a promising new
career such as computers. For Nebajenses, paying smugglers for delivery to the
DHS is a moral enterprise because it will enable them to provide for their families and give their children a better future. Moralism is common in get-richquick schemes because these belong to the wider realm of millenarian or
Stoll / REMITTANCES AS RENTS IN GUATEMALA
177
utopian fantasies (Cox, 2018; Verdery, 1995). What makes such visions moralistic is the wish to transcend deep-seated paradoxes. In the case of Nebajenses,
their ever-deeper engagement with capitalism forces them to navigate between
sociocentric and egocentric definitions of personhood. Traditionally, youth are
expected to subordinate personal needs to the needs of parents and siblings.
The new hope is that they will buscar su futuro (search for their future) in a
country that will give them a better life.
How do Nebajenses reconcile self-advancement with family solidarity? The
hope is that, once established, the young migrant will “receive” his siblings and
even parents. Expedited by humanitarian reforms in U.S. border enforcement,
the goal is a kin-based work team that lives together in an apartment or a small
house. The team includes males, females, and, increasingly, birthright citizens,
and its collective earnings support the many expenses of bringing up more
family members.
REMITTANCES AS RENTS
Obviously, Nebajenses are not typical of all migrants from Central America.
If the most important criterion is an urgent need for safe haven, Nebajenses as
a group occupy the far end of the spectrum from, say, Hondurans escaping
gangs in San Pedro Sula. The percentage of Central Americans who actually are
fleeing threats to life and limb is a contentious issue (Cohn, Passel, and
Gonzalez-Barrera, 2017), but whatever sends migrants north, remittances have
powerful impacts. Even if Nebaj does not typify all north-south remittance
flows, it can serve as a window on a widely shared problem: that the American
Dream is a moral vision that conceals the extraction of rents.
Renta is Central American slang for extortion payments to gangsters. When
kleptocracies run a country, rent extraction is an obvious metaphor for how
they organize the economy. But can this concept also be applied to migration
streams? So argues Hannes Warnecke-Berger in an analysis of El Salvador’s
migration-dependent economy in terms of rentier relationships. Rents are
extracted when an entitled class derives its income not from its ability to compete in markets but from its power to monopolize land or other claims to ownership. Usually we think of rentiers as an upper class, but the term can also
apply to elders who live off the labor of juniors.
The Salvadoran economy has long been organized around the extraction of
rents, but how this occurs has changed over time. Until the 1980s, the Salvadoran
state and its leading exports, coffee and cotton, were controlled by an oligarchy—the same one that the Salvadoran revolutionary movement tried and
failed to overthrow. Because of the war, so many Salvadorans left for the United
States that one of every four may now live there. Then came such a severe structural adjustment program that the Salvadoran economy was dollarized. Now
its principal industry is the export of labor and the harvesting of remittances.
Keeping up with the times, Salvadoran elites have withdrawn from export
agriculture and moved into tourism and the leisure industry, big-box retail and
construction, the financial industry, and computer services. So if the Salvadoran
oligarchy no longer extracts as much rent from coffee and cotton exports as
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before, asks Warnecke-Berger (2019: 130), where does it extract rent now? From
the consumer demand structure of households receiving remittances, he
answers. Instead of monopolizing agricultural exports, the upper classes now
extract rent from ownership of financial institutions, shopping malls, and other
service sectors that attract remittance dollars.
Rent extraction is no surprise when it flows to the upper classes, but
Warnecke-Berger (2018: 232) argues that even remittances can represent the
extraction of rent. Given that remittances flow mainly to lower-income
Salvadorans, how could they too be rentiers? According to Warnecke-Berger,
remittances become rents because of a paradox facing the households that
receive them. Even as remittances increase the spending power of a household,
they also make it dependent on the loyalty of a member who has gone north,
hence the insecurity that turns remittances into rents to which a family is entitled by its “transnational moral claim” on a migrant’s earnings (220–224).
Some migrants are models of self-sacrifice, remitting faithfully through thick
and thin. But this is not just altruism, Warnecke-Berger emphasizes: it is a moral
obligation because most migrants reach the United States thanks only to their
families’ engaging in heavy borrowing from which they expect a financial
return. Up north, migrant loyalties are tested in many ways. Given the high
cost of living, the emotional cost of prolonged separation, and the launching of
new families, remittances tend to diminish over time. Then there is the question
of exactly who will receive remittances—conflict between wife and parents
over who administers a husband’s earnings is no novelty in Nebaj. Nor are
suspicions and accusations— in Warnecke-Berger’s (2018: 234) focus groups,
he heard remittance receivers accuse their stateside relatives of being selfish
and remittance senders accuse their relatives of milking them like cows.
Ethnographers of Latin American remittance households such as Ann Miles
(2004) and Sonia Nazario (2006) have noticed receivers and senders trading
accusations of selfishness and ingratitude. Kristin Yarris (2017) notes the disappointment of Nicaraguan grandmothers with the amounts that migrant daughters are sending to support their offspring. Cecilia Menjívar (2000: 115–156) and
Sarah Mahler (1995: 78–104) describe the monetization of reciprocity among
Central American immigrants, with the result that they feel exploited by their
own relatives and co-ethnics.
If a family expects to harvest remittances from its members in the United
States, these are rentier expectations. Nebajenses often lack power to enforce
their demands. Consider this mother’s criticism of a daughter for failing to
perform her assigned role:
I didn’t give her schooling so that she would go to the United States and produce children. . . . We gave her schooling and now we owe a lot [of money] for
her. . . . I give my children their schooling, but they don’t help me. I give them
their schooling so they will get me out of poverty, but instead they look for a
husband. We spent a lot to give her schooling, she went to the United States,
now she has two children, and she left behind lots of work. I gave [my other
daughter] her schooling, and now she’s gone off with her husband. They’re
producing more children, and we remain behind in debt. All I can do is ask
God to help me.
Stoll / REMITTANCES AS RENTS IN GUATEMALA
179
Remittances are so conflictual, according to Warnecke-Berger (2019: 127),
that they set off “a vicious cycle of instability.” For example, amounts often
vary quite a bit from month to month and may stop altogether. As a result, in
Nebaj as well as El Salvador, even households receiving remittances often accumulate new debts to moneylenders and banks. Both their consumption and
their debt levels are rising, which is one of the reasons migrant households
always seem to be debating who will go north next. Beyond the household,
remittances destabilize neighbors because they have such an inflationary
impact. In neighborhoods and villages where incomes used to be broadly similar, recipient households exhibit spurts of purchasing power, acquire status
goods like motorcycles, and pay higher prices for local real estate. This is a
divide that Robert Smith (2005: 50) terms a “remittance bourgeoisie” versus a
“transnational underclass” without access to dollars.
In the Salvadoran migrant hub of Intipucá, David Pedersen (2013: 12, 61–62,
206–208) found that the conveyor belts of youth migration and remittance
ended up favoring its bourgeoisie, not its lower classes. Intipucá’s first migrants
to go north were from the local landowning class. U.S. journalists mistakenly
portrayed them as being from humble origins. By the early 1980s, these landlord scions were sufficiently established in Washington, DC, to become the
employers of other arriving Salvadorans. The remittances that they sent home,
far from lessening wealth disparities, strengthened the local elite’s hold on economic opportunities.
Remittances are such a powerful engine of inequality that they can set up
different social classes within the same household. Leah Schmalzbauer (2008)
found that Honduran transnational families of the early 2000s had both a transnational underclass (parents being exploited at the bottom of the U.S. labor
market) and a remittance bourgeoisie (teenagers living it up on their parents’
earnings). The juxtaposition was confusing for all concerned, and one of its
effects was unjustified optimism about future earnings. Beth Baker-Cristales
(2004: 31) noticed the same kind of disorientation in El Salvador and went on
to state:
The development of a remittance economy, the spread of U.S.-style consumerism, and a generalized contempt for politicians and the political class have
refocused popular attention away from politics and toward the acquisition of
material goods. As consumerism and higher standards of living spread among
the families of U.S.-bound migrants, more and more Salvadorans feel the pull
of migration to maintain their now higher expectations. The spray-painted
political slogans of the war era are giving way to another kind of appropriation
of public space—gang-related tagging dominated by the names of Los Angeles
area gangs. Migration has come to take the place of class struggle in El Salvador.
Alisa Garni and Frank Weyher (2013) found the same reconfiguration around
remittances in Salvadoran coffee towns, as did Peggy Levitt (2001: 73–124) in
the migrant hub of Baní in the Dominican Republic.
Warnecke-Berger observes that migration is a form of intensification—selfexploitation—in which migrants no longer have time or energy to invest in the
kind of socializing that gives rise to political movements. The relentless focus
on dollars is not a mere lifestyle choice or psychological compulsion; it is a
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necessity, to pay off the loans that enable migrants to join the U.S. labor market.
And so their priority becomes to “stabilize future remittances,” even as the
impact of dollars “atomize[s]” social relationships in the surrounding population (Warnecke-Berger, 2018: 221, 237). In my 2007–2012 interviews with
Nebajenses, I detected pyramid-style investment patterns in which migrants
struggling to keep up with too many loans were seeking to increase their cash
flow by inviting more migrants to join them in the United States. The new
recruits were typically relatives and neighbors who believed they were being
given a marvelous opportunity. But if the trip went wrong they too would be
saddled with debt. The ability of losers to transfer their losses to a new cohort
of investors is what distinguishes a pyramid scheme from a Ponzi scheme. To
translate this into Warnecke-Berger’s terms, rent payers were hoping to become
rent recipients by inviting relatives and neighbors to come north and add to
their cash flow. All the credit washing around in these networks can make it
very challenging for migrants to figure out whether they are getting ahead or
slipping backward.
BORDER ENFORCEMENT, ASYLUM, AND HUMAN TRAFFICKING
How much of the indebtedness of Central American migrants can be laid at
the door of U.S. border enforcement? President Trump’s crackdowns on asylum applicants aroused wide condemnation. “Why Are You Putting Kids in
Cages?” became an effective countermeme to “Build the Wall!” For asylum
advocates and now apparently for the majority of migration scholars, U.S. border enforcement is an exercise in state violence that reverberates southward
through Mexico and into Central America (Slack, Martínez, and Whiteford,
2018). In this view, U.S. border hardening explains much of the predation that
Central Americans suffer in Mexico, and U.S. deportations are an important
reason for the rise of gang violence in Guatemala, El Salvador, and Honduras.
For scholars who think about debt (e.g., Johnson and Woodhouse, 2018), this
too is mainly the consequence of U.S. border hardening.
A new Democratic president took office in January 2021. Joe Biden has
pledged to reverse his predecessor’s border policies, so let’s say that he adopts
the recommendations of more than 100 law professors and migration researchers (Heyman, 2019). The new priority becomes, not stopping unauthorized border crossers, but providing safe haven for asylum applicants. Per the scholars’
recommendations, unaccompanied minors receive professional care. Families
are not detained unless strictly necessary. All asylum applicants receive government-funded legal counsel. Applicants who say they are fleeing gang and
domestic violence are taken seriously. And so, as predicted by the migration
scholars making these recommendations, many Central Americans applying
for asylum receive it.
Now then, will legal status transform the way Central Americans fare in the
U.S. labor market? To answer, let us consider the impact that low service-sector
wages have on U.S. citizens. Many work full-time without getting their chins
above the poverty line. Will Central Americans be more successful in those
same jobs? Probably not, because paying immigrants below the poverty line
Stoll / REMITTANCES AS RENTS IN GUATEMALA
181
has the same impact as paying Americans below the poverty line—it generates
chronic deficits and pushes them deeper into debt. What differs is how natives
and immigrants deal with these deficits. For low-wage Americans, access to the
financial industry makes it easy to bleed them. They run up balances on credit
cards, pay penalties, become chained to payday loans, and lose everything but
their due dates.
Many Central American immigrants still have little access to the financial
industry, so how do they cope with deficits? One way is to bring up reinforcements from Central America—additional family members who become additional earners. However low each wage, these can be pooled to rent a crowded
apartment. Any kids can be put in school, serious injuries can be taken to an
emergency room, and any newborns will be U.S. citizens who qualify for certain benefits. But their ceaseless struggle against deficits reverberates in Central
America in the form of irregular and declining remittances, pressuring more of
their relatives to come north.
Remittances, by pouring down on some but not all households, by stopping
and starting unpredictably, can be thought of as a hope machine whose most
reliable product is relative deprivation. This is what sucks an endless stream of
hopefuls into the dangers of the migrant trail and the illusions of the U.S. labor
market. Sixty dollars a day in the United States is eight times what a migrant
can earn in Guatemala, but that impressive purchasing power depends upon
their being remitted to Guatemala. Only there do the dollars vault a migrant’s
family into the lower middle class—temporarily. If the migrant stays in the
United States long enough to start a new family, or if he brings his family along,
that daily US$60 or even US$100 is far below the U.S. cost of living. Once a
migrant’s frame of reference shifts from Guatemala to the United States, he
returns to poverty. The dollars that were worth so much in his own country lose
most of their value once he decides to make his life in the United States, even
as their treacherous allure pulls more of his relatives north.
In Nebaj, along with many success stories, I hear of one disaster after another.
A local organization has become a mortuary coordinator for a steady flow of
bodies not from border crossing but from car accidents, alcoholism, other diseases, suicide, and drowning in swimming pools. Some of the success stories
are due to falsifying legal identities, which makes it easy to mask exploitation
of one migrant by another. In one such case, a Nebaj man achieves provisional
liberty in the United States thanks to a teenager who is not actually his daughter. Once they have found a place to live, he demands that she cook and clean
for him, alarming observers that pregnancy will soon result. In another case, an
enterprising 18-year-old becomes acquainted with a new stateside boyfriend
on Facebook. He lends her the money to come north as an unaccompanied
minor. If this approach to fundraising continues, it will lead to sexual exploitation.
Once migration produces unrepayable debts, coercion can arrive quickly, at
which point human smuggling becomes human trafficking (Naim, 2005: 89).
According to the U.S. Trafficking Victims Protection Act, human trafficking
involves “force, fraud, or coercion” (Weitzer, 2014: 8). This threshold is easy to
cross when traditional gender norms are applied to young women in debt. A
16-year-from Nebaj named Cecilia got as far as Texas before someone in the
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coyote network to which her parents had entrusted her decided that she owed
more money. When her parents could not pay up, she was rescued only by a
Florida human rights activist who purchased her from two men with a gun.
And so Cecilia ended up not as a debt slave but on the front page of the New
York Times (Cave and Robles, 2014). The force, fraud, or coercion threshold is
also easy to cross when small children are used to obtain legal status. If all it
takes to establish lawful presence in the United States is a child in hand, this
incentivizes the sale or rental of children. The Washington Post found a
Guatemalan village whose schools were emptying out as children were taken
north, with some families selling their children to other adults for this purpose.
Such “adoptions” were being facilitated by the nearest government registry,
which was selling fake papers to prove parenthood. “This is a crime,” observed
a local educator. “This is human trafficking” (Partlow and Miroff, 2018).
Once in the United States, the very scale of arrival guarantees that minors are
exposed to dangers that U.S. social workers will be unable to detect. Thus in
Palm Beach, Florida, the school district has 2,000 seventh-to-eleventh-graders
who need remedial English in summer school, but only half of them enroll.
“They have to go to school, but that is not what they came here for,” observes
a school official. “Many are tending to younger siblings or working to help
their families make ends meet.” They work “either to send money home, to pay
off debts to migrant smugglers, or to support themselves” (Jordan, 2019). In the
meatpacking town of Worthington, Minnesota, 129 unaccompanied minors
arrive in the summer of 2019. Many are housed “with unfamiliar relatives who
offer little support,” to the point that schoolteachers buy them groceries.
According to Michael Miller (2019), “A lot of these kids suffer horrible trauma
on the journey to the United States” and “feel pressured to work to pay off their
debts and contribute to household expenses.”
ASYLUM AND NEOLIBERAL CAPITALISM
Asylum advocates believe that many Central American migrants are fleeing
death and therefore have a human right to reach the United States by any
means necessary. Thus, if Central Americans frame themselves as refugees, the
cautionary principle calls for asylum advocates to accept them as such. But
asylum advocates don’t just want Central Americans to be welcomed; they also
want them to be protected. That requires U.S. authorities to distinguish between
victims and victimizers in a migration stream, and that requires monitoring
how migrants are being treated by relatives and employers in the United States.
Therefore the cautionary principle cannot be applied merely to border enforcement. It also must be applied to how migrants get here and what happens after
they arrive. Asylum advocates further believe that Central American migrants
will be better off in the United States than they are at home. Certainly the
migrants believe this, but this is an empirical issue that researchers cannot
decide merely by invoking the latest horror story from Honduras or the purchasing power of the dollar. In the case of Nebajense households and no small
number of Central American households like them, they are sending their most
energetic earners to a foreign country where their earnings will be higher but
their resiliency and reliability will be lower.
Stoll / REMITTANCES AS RENTS IN GUATEMALA
183
Yes, the American Dream would have us believe that migrants will make a
better life in the United States. But migration scholars know enough about the
American Dream that we should keep this question open. We know that, while
the U.S. economy has a long history of soaking up immigrant labor, the way it
does so refutes national mythology that the United States is a land of opportunity for all. When we think about neoliberal capitalism at the macro-level, we
have no trouble recognizing how the marketization of governance produces
deficits that turn into debts and become extractive mechanisms. At the microlevel, we seem to have a harder time acknowledging how migration monetizes
familial relationships and heightens familial exploitation.
The reason for this blind spot, I believe, is anger over the human cost of border enforcement. For scholars who make their living by studying human flows
across borders, nothing provokes more distress than human remains in the
Arizona desert or a small child crying for her mother or a despairing deportee
who, as far as we can tell, did nothing to deserve this fate. Long before President
Trump, many of us became accustomed to justifying our research by supporting immigrant rights. The most obvious way to do so is to train our moral
spotlight on U.S. border enforcement and the deportation industry (Peutz and
De Genova, 2010). Left in shadow by the spotlight on the deportation industry
is the migration industry. Human smugglers are harder to interview than officials, and they don’t leave paper trails accessible under the Freedom of
Information Act. Focusing on border enforcement casts an even deeper shadow
on the familial financial relationships that Warnecke-Berger compares to the
extraction of rent and I compare to pyramid-style investment patterns.
If we look carefully at the indebtedness generated by the American Dream,
it becomes apparent that the migration industry is deepening the hold of neoliberal capitalism on Central Americans not just by making them dependent on
the U.S. labor market but by encouraging them to financialize their relationships with their closest relatives. Asylum advocacy that neglects debt, and debt
analysis that neglects how this is generated by the U.S. economy, means neglecting how labor migration obliges migrants to exploit each other. With or without
legal status, the underlying issue for migrants will continue to be their position
in the U.S. job market, because this is the ultimate source of the deficits that
increase their vulnerability to human trafficking.
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