By Daniel Nardini
In a strange reversal, U.S. President Donald Trump has pledged to invest $5.6 billion into an aid plan by Mexico to help three countries in Central America. These three countries are El Salvador, Guatemala and Honduras. The plan, initiated by Mexico’s new President Andres Manuel Lopez Obrador, will help invest an estimated $30 billion in loans, investments and infrastructure support to help the economies of El Salvador, Guatemala and Honduras rebuild their shattered economies and infrastructure. One of the reasons why so many people from these three countries are fleeing is from the lack of jobs as well as criminal gangs who terrorize the population at will.
Will the aid plan work? That remains to be seen. One must keep in mind that this will be a long term issue. As I pointed out a long time ago, when Mexico had its currency crisis with the collapse of the peso in the mid-1990’s, the United States provided badly needed funds and investments that not only helped the Mexican economy but also brought industry to Mexico that eventually helped not only keep Mexicans in Mexico but also brought many Mexicans back from the United States. But this was a very long term thing—almost 20 years. The three Central American countries will require the same thing. It seems that President Obrador understands this since he will provide visas and training programs for those Central Americans who qualify to live and work in Mexico on a temporary basis. This way when they go back to their respective countries they will have skills and qualifications to help rebuild their local economies. While $30 billion may sound like a very large investment, it could save hundreds of billions of dollars in the long term for not only the United States but also for Mexico and the three Central American countries of El Salvador, Guatemala and Honduras.
A Sound Aid Plan
By Daniel Nardini
Will the aid plan work? That remains to be seen. One must keep in mind that this will be a long term issue. As I pointed out a long time ago, when Mexico had its currency crisis with the collapse of the peso in the mid-1990’s, the United States provided badly needed funds and investments that not only helped the Mexican economy but also brought industry to Mexico that eventually helped not only keep Mexicans in Mexico but also brought many Mexicans back from the United States. But this was a very long term thing—almost 20 years. The three Central American countries will require the same thing. It seems that President Obrador understands this since he will provide visas and training programs for those Central Americans who qualify to live and work in Mexico on a temporary basis. This way when they go back to their respective countries they will have skills and qualifications to help rebuild their local economies. While $30 billion may sound like a very large investment, it could save hundreds of billions of dollars in the long term for not only the United States but also for Mexico and the three Central American countries of El Salvador, Guatemala and Honduras.