Manuel Orozco
Inter-American Dialogue
March 5 th , 2009

Migration and remittances in Cuba
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Migration from Cuba has increased and expanded to countries other than the United States, Spain (23%) in particular ;
Cuban relatives of migrants say that economic reasons are a key rationale informing their departures;
Nearly forty percent of these relatives also say that they are planning to migrate at some point in the near future, pointing to economic and political reasons;
Remittance recipients are receiving relatively similar amounts of money compared to four years ago, but do so increasingly from informal means ;
The cost of remitting to Cuba is among the most expensive in
Latin America (13% of the average sent, or double of what it costs elsewhere in Latin America);
The average length of time receiving money is eight years;

Migration and remittances in Cuba cont.
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Over half of the migrants in the U.S. have visited the country,
20% alone in 2008;
However, engagement with the home country is limited to one or two activities, such as remitting, calling or visiting the island;
The majority of migrants agree that legislations and policies in the U.S. and Cuba restricting remittances have diminished their ability to remit to their relatives, and in fact, 36% says they are remitting less than in 2007 ;
Over one third of remittance recipients are saving, with a median of US$500;
Their method of savings often involves investing in some small economic activity.

Year   the   relative   emigrated   from   Cuba
United   States 1987
Spain 1998
Italy 1999
Switzerland 2000
Germany 1998
Venezuela 2001
France
Mexico
2000
1996

Reasons   why   the   relative   migrated   (%)
To   improve   the   life   of   the   family
Because   salaries   are   too   low
To   send   Money   to   his   family
Because   of   contacts   w/friends   and   family   living   abroad
Because   is   hard   to   find   job 8
D   .Rep. Honduras Nicaragua Cuba
52 23 25 38
11
18
10
21
27
15
12
10
11
26
21
12
19 43 9

Plans   to   migrate   and   reasons… (%)
Plans to migrate
Family   reunification
Too   high   cost   of   living/   one   cannot   live   here
Political   situation
No   jobs
15
8
Honduras Nicaragua Dom.
Republic
13
15
61
24
11
23
30
15
64
5
56 17
Cuba
39
38
35
23
4

Receiving   from   the   U.S.
2005 2009
81% 53%
Remittance
Receiving   from   the   Spain
Length   of   years    receiving transfers   to
Amount   received
Frequency   receiving   p/year
Cuba,   2005
Receiving   from   parents and   2009
Receiving   from   children
Receiving   from   siblings
12% 23%
4 8
$150 $150
6   8
18% 14.6%
26% 33.1%
Receiving   from   others
Receives
Received
via   less
MTO
Receives   via   “Mula”
than   in   previous   year
22% 31.5%
34% 20.8%
59.8%
40.2%
29% 6.7%
Received   more   than   in   previous   year 13% 10.6%
Received   same   as   in   previous   year 58% 82.7%

Remittance   transfer   method   (%)
Receiving   from   …
Other   USA Total
MTO 71
Traveler 29
Total 100
54
46
100
60
40
100

Money   transfer   operators
Travelers
Cost   of   sending   as   share   of   amount   remitted    (%)
17 29
Amount
Paid
(US$)
Amount
Sent
(US$)
207
2009
(%)
2005
(%)
56 82
13 25 220 44 18

Problems
Sending   cost   is   very   expensive
Foreign   Exchange   costs   are   expensive
(%)
73
72
Restrictions   in   the   U.S.
legislation   affect   my   ability   to   remit   to   my   family 47
Limits   in   amounts   do   not   contribute   to   help   with   needs   in   Cuba 45
The   tax   the   family   has   to   pay   in   Cuba   is   another   problem.
There   are   not   many   options   to   choose   from   when   remitting
41
38

(%)
New
York
New
Jersey
Florida
Has   not   returned   to   Cuba 62.0
56.2
23.5
Before   1990 22.0
22.5
1.2
Between   1991   and   2000 8.0
10.0
4.7
Between   2000   and   2007 8.0
11.2
48.2
In   2008 .0
.0
22.4

NY NJ FL
Very   little   engagement 23 25 15
Moderately   engaged 75 73 55
Significantly   engaged 2 3 30

Not   U.S.
citizen U.S.
Citizen
Very   little   engagement 17
Moderately   engaged 56
Significantly   engaged 27
21
69
11

Investment in a business
Medical insurance
Savings account in bank, MFI, cooperative
Mutual fund
Purchase of goods (house, car)
Purchase of animals
0
28
6
Cuba D.R.
Nic.
Hon.
34 17 15 13
0
12
13
15
0 6
18 16
1
3
0
30
2
2
6
4
2

Cuba Hon. Nic. D.R.
25 12 13 14
Basic Family Necessities
In Case of an Emergency 25 16 31 30
Family Enjoyment
Debt Payments
6
1
5 2 3
To Start a Business 5
Car Or House Improvement 21
7
4
10 10
3 6

The more remittances received the higher the amounts saved…