Illegal alien crossing from Guatemala into Mexico. (Photo: Martin Healy)

Making of a Dream

There are Alternatives to Emigration and Illegal Entry into the US

Honduras remains one of the poorest countries in the Western Hemisphere and, while positive steps continue, like a new CAFTA-DR treaty with the U.S., a Millennium Challenge Compact and billions of dollars in debt forgiveness, remains dependent on foreign migration and US remittances.  While options for potential immigrants are becoming increasingly available, the population remains focused on the illusion of the “American Dream” to create a better life for them and their family.  In our contribution to transformational diplomacy, a U.S. State department initiative to partner with foreign nations to better their lives and transform their own futures, a new Virtual Consulate campaign seeks to shift the debate from U.S. immigration policies to opportunities for advancement and employment in Honduras.  Called the “Honduran Dream,” our campaign has initiated a contest between 14 public high schools here to create the most innovative, sustainable and profitable small business possible with 5 thousand dollars in start up funds – approximately the same amount an illegal immigrant would pay to get to the U.S. from Honduras.  With over 50 percent of the population under 18 years old, a clear vision of the Honduran Dream and how to achieve it may be the only way to avoid a flood of future migrants to the U.S. 

Immigrant Situation in Honduras

Outwardly, the Honduran economic situation appears to be healthy and growing.  The economy grew an estimated 6.7% in 2007, one of the highest growth rates in the region, while inflation at 7% remained relatively low.  Moreover, a new CAFTA-DR trade agreement has been implemented, a recently awarded Millennium Challenge Compact account is well underway, and almost $5 billion in debt has been forgiven.   

But the situation for the average Honduran is tenuous at best.  Per capita monthly income is 75 dollars, or about 2.5 dollars a day, one of the lowest in the hemisphere.  Gang activity is strong and growing, mirroring disturbing growth in neighboring El Salvador and Guatemala.  With high unemployment, continual strikes in the country’s schools, and about 54% of the population under 18 years, gang membership and illegal immigration many times offer the only real alternatives for the country’s youth.

For the illegal immigrants that choose the route from Honduras to the US the trip can take months and is extremely dangerous, yet thousands attempt it each year.  Almost 80 thousand legal Honduran immigrants stay in the U.S. through a humanitarian program (TPS) initiated after a devastating hurricane hit the country in 1998 and extended every year thereafter.  Currently, it is estimated that over 600 thousand illegal Hondurans live in the US; over 20 thousand were deported last year alone by DHS ICE. 

What is the Honduran Dream?

At the root of the continued immigration is the perceived lack of opportunities in Honduras.  However, a clear bright spot in the region has been the development of micro-businesses, or businesses started with as little as a few hundred dollars.  USAID has been active in this area since the 1990s, and many programs that they have started have evolved into self sufficient organizations that supply loan-based financing to small business owners.  These businesses have varied from textiles to pottery, glass making to tortilla factories.  USAID has invested almost 20 million dollars since 1990 in micro-business organizations in Honduras, which have helped fund over 150 thousand small businesses and created 1 million jobs. 

And the micro business financing is by no means a charitable action.  Institutions such as Accion International have continued to make investments in micro business lenders around the world, because of a simple fact: these organizations are good business.  By some estimates over 97 percent of these small businesses pay back their loans, which they must do to qualify for more funds.  Recently, Accion International was in Honduras providing the second of three planned investments totalling $3 million dollars through Fundacion Covelo, a Honduran financing organization that has worked successfully in the local market.

With a strong model in place, the challenge became how to convince potential emigrants that, for the time, money and risk it takes to get to the U.S. illegally, there are opportunities to build their dreams in Honduras.   What continued to stand out to us statistically was the worrying fact that over 50 percent of the population is now under 18 years old - a veritable timebomb of future emigration if changes aren't made now, and fast.  Consequently, we decided to go after these high-risk 18 year olds, the students that are set to graduate from the many public high schools around San Pedro Sula and would probably soon face a decision to leave for the U.S. to find work and support their family.  What we wanted them to confront was a deceptively easy question: what exactly is the Honduran Dream?

The Honduran Dream Campaign

We created the Honduran Dream campaign to answer that question.  The campaign was launced on April 11, 2007, and features a contest among 12 public high schools in the San Pedro Sula area to develop the most innovative, sustainable, and profitable business plan that can be started with 5 thousand dollars – approximately the same amount that an illegal immigrant would need to travel from Honduras to the U.S.  The schools were selected based on their proximity to San Pedro Sula, free admission policy, and experience in helping students developed micro-businesses.  Each school may allow any number of students to work on the project, but the students should be 18 years old and in their last year of study. 

While the embassy helped develop and launch the campaign, the effort is distinctly Honduran.  The launch received support from every branch of the Federal and local government, including: the Vice Mayor of San Pedro Sula Eduardo Bueso; Bishop Romano Emiliani; Congresswoman and Family Committee chair Marcia Villeda; and Secretary of Education Marlon Breve.  Juan Jose Lagos, a representative of Fundacion Covelo, also attended.  Fundacion Covelo has agreed to provide the 5 thousand dollars in prize money to the winning team.  Not for charity, but simply because these young students remain the best prospects for future micro-business lending.

Towards the end of the contest the top 6 business cases are selected by our judges for a final oral presentation.  On the date of the presentation, each of the teams will have 10 minutes to present their plan and, after a brief intermission, the judges will return and announce the winning team.  The 5 thousand dollars will be used to buy the components required to start their business. 

We sincerely hope that this will be just the first step in a series of contests, perhaps throughout Honduras or even Central America.  Stay tuned.