“Migration Is Part Of The Model”: The Real Roots Of Central America’s Migrant Crisis
20th June 2019
When the average American thinks about Guatemala, Honduras and El Salvador, their initial impression is typically that these are destitute countries overrun by crime, poverty and malnutrition, with central governments that are, at best, only semi-functioning. The crisis at the southern border has only helped reinforce these perceptions, as the mainstream media spins a narrative about impoverished migrant families fleeing the ravages of gang violence.
But if these Central American countries are so extremely impoverished poor, then why are bond investors willing to lend to Guatemala, Honduras and El Salvador at interest rates on par with the preferential terms enjoyed by regional economic powerhouses like Brazil? The truth, as it turns out, is more complicated: All three countries are viewed as stable, even safe, investments because they spend almost nothing on government services. And most of what little is spent is siphoned off by graft.