Family remittances have become not only a key monetary support for women in Guatemala, but have become a “catalyst for personal economic empowerment” of this group, characterized by its high financial vulnerability, experts say.
“These funds not only help break cycles of poverty, but also provide a lifeline to women escaping gender violence,” explained Betilde Muñoz-Pogossian, director of Social Inclusion at the Organization of American States (OAS). ), during an event organized by Inter-American Dialogue, a think tank based in Washington, USA.
According to a study According to this institution, Guatemalan women are economically very vulnerable: two thirds are housewives, more than half depend on remittances and only 12% have a savings account.
According to the research Women, remittances and financial inclusion in Guatemala, a path to financial independence52% of women’s total income in Guatemala comes from remittances. While in men it is only 43%.
This inequality is worsened among Guatemalans of Mayan descent, who have more difficulties accessing a cell phone and internet connection, which translates into less access to financial institutions.
Housewives, women who work in agriculture and students are among the groups most dependent on remittances.
For Mileydi Guilarte, deputy administrator for Latin America and the Caribbean in the office of the US Agency for International Development (USAID), this situation shows the need to strengthen the financial independence of Guatemalan women.
“A common denominator in this conversation is the importance of financial inclusion and access to banking for women in Guatemala, but going further it is also important to create systems that empower women, that give them knowledge of their rights, their opportunities,” he added in the conversation.
In addition to increasing household income, Remittances also have an effect on savings increases.
Data shows that women save more even though their income is lower. However, these amounts are 10% below men’s savings.
Most women have their money stored outside of a banking institution. On the other hand, men tend to have more than two formal financial products.
“Women without formalized savings tend to have lower incomes. Housewives and women of Mayan descent are the most vulnerable in terms of financial access,” the study indicates.
This occurs because this group in particular has problems accessing electronic devices with an Internet connection.
“Women who do not have a mobile phone have an annual personal income that is 65% lower than that of a man with a phone,” the research reveals.
For experts, development strategies should focus on giving women resources to create assets that increase their economic independence. This not only increases the knowledge available to Guatemalan women, but also improves the financial inclusion of the populations around them.
“Significantly increasing women’s income is key. To achieve this, it is important to improve women’s occupational position, reduce their reproductive workload and expand their skills related to the digital economy and knowledge,” the study added.
In 2023, remittances to Latin America and the Caribbean exceeded $160 billion, representing 5% of the region’s total income, marking a continuation of the growth pattern of previous years.
Guatemalan migrants are the ones who more money they send individually to Guatemalawith an average of 500 dollars per month. These funds are used to cover ordinary expenses such as maintenance, education, healthcare, and housing.
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