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Not Much Direct Economic Development, But Big Jump In Law Enforcement is a Necessary Precursor

By Eric Farnsworth and Louis Jacobson

COA's Eric Farnsworth says that, besides the U.S.-Mexican trucking agreement reached in July 2011, the White House has done "little in terms of direct promotion of economic development in Mexico," with a sharp increase of federal funding directed to law enforcement on the border only helping indirectly.

During the presidential campaign, Barack Obama promised to do "more to promote economic development in Mexico to decrease illegal immigration."

Estimates suggest that illegal immigration has indeed fallen in the past few years, but most experts say the biggest factor is the United States' recent economic troubles, which have cut the number of jobs for which undocumented immigrants could theoretically compete...

...To cut straight to the point, federal funding directed to Mexico has risen only modestly in economic development accounts but dramatically in law enforcement and military accounts. The reason is a stepped-up effort to counter international crime syndicates based in Mexico --a goal that aids economic development, but only indirectly.

...There is one specific area in which the Obama Administration has acted to promote economic development in Mexico directly. In July 2011, the administration reached an agreement with Mexico on allowing Mexican trucks to deliver and pick up goods for cross-border trade outside an existing 25-mile barrier...

..."The administration could well argue that their focus on security in Mexico is helping to restore order and democratic institutions and thus improving the business climate, which is good for economic development. I would agree with that,” said Eric Farnsworth, vice president of the Council of the Americas, which studies U.S. relations with Latin America. "They would also argue that improvement of the border, in security and infrastructure, is beneficial for cross-border trade, and therefore development."

But besides the trucking deal, the U.S. has done "little in terms of direct promotion of economic development in Mexico,” Farnsworth said.

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