CHAPTER 4
Development Impact of Remittances in Rural Honduras: Transnational Economy, Networks, and Diaspora Engagement
T
his chapter discusses the potential of rising transnational business development relations between rural Honduras and their correspondent migration destinations in the United States. It presents three principal subnational corridors between the United States and Honduras, compares and analyzes different patterns and dynamics between the subnational corridors, and provides a short description of three case studies—Garífuna, Intibucá, and Olancho—of ongoing transnational initiatives and growing interconnectedness of people on the move.1 The analysis presented in this chapter shows how poor and rural regions underserved by current national policies get involved in transnational business, cultural exchange, social involvement, and political dialogue. An understanding of subnational remittance corridors and their widespread transnational networks is necessary to efficiently target remittance based outreach and financial inclusion strategies.
Rising Transnational Economy in Rural Honduras International migration in rural Honduras gives rise to complex social and economic interaction between the regions of origin and destination of migrants and creates development opportunities that go beyond the transfer of remittances. Honduran migrants play an important role as partners in the social, economic, and political development of their home communities. Migrants’ financial contributions to community development, returning migrants’ investments in local private sector, export of nostalgic products, courier services, and informal market of migration and remittances have been instrumental to the rising transnational economy in rural Honduras. Migrants already account for an estimated US$1.2 billion of business by
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