Abstract

This chapter begins with a discussion of the economic trends in Colombia and Venezuela over the last 3 decades. This is followed by brief case studies of the 5 principal labor exporting cities for the period of the recession in Colombia and Venezuela. Recovery was directly influenced by the degree and range of economic interdependence each city had with Venezuela. The rates of return migration however did not impact these cities as much. The case studies graphically show that it was not only labor exchange but also trade in commodities that linked Colombia and Venezuela. Those labor exporting cities that were most dependent on trade with Venezuela were hit hardest by the Venezuelan recession. The marked increase in unemployment in these cities was caused much more by a reduction in export sales and by recession than by return migration. The impact of the Venezuelan crisis on each of the principal urban sending areas of Colombia varied in quantitative and qualitative terms. The differences can be attributed to many factors. These include the economic characteristics and development of each city the interdependence among the cities and the relationship of the city to the national economies of Colombia and Venezuela. Generally return migration occurred among persons who recently migrated to Venezuela but did not have stable and legal working conditions. These workers did not establish economic and social networks in Venezuela and did not consolidate sources of income which could have been competitive with those in Colombia. It would be erroneous to conclude that the returning workers from Venezuela seriously affected the rates of unemployment and underemployment in Colombia but the decline in remittances from Venezuela affected consumer demand in the 5 cities and also had a negative impact on the standard of living for many Colombian families. It forced them to search for additional income by undertaking various jobs and extending their workday activities which contributed to the increase in the informal sector. The crisis has caused migratory movements to become more seasonal and multiple and it is possible that many persons feel obligated to combine internal migration with international migration to improve their economic conditions.

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