How to Stop Mass Migration From Central America
COMMENTARY

How to Stop Mass Migration From Central America
Thousands of Central American migrants continued their journey toward the U.S. border Thursday, Oct. 24, 2018, reaching the coastal town of Mapastepec, in Chiapas, Mexico. (Miguel Juarez Lugo/Zuma Press/TNS)

It has been a difficult couple of years for Latin America. COVID-19 created a public health crisis and a severe economic downturn.

Women have been particularly hard hit. The rate of female participation in the labor market has fallen from 52% to 46% in the past two years.

The practical consequence of these crises has been for millions of people, especially from Central America, to embark on the perilous journey to the United States in search of a better life. But how, in a post-COVID context, can we build an economy in Central America where people do not feel compelled to migrate?

At its core, this involves both attracting more foreign investment to the region and better linking prospective migrants to employment in “internationally connected” sectors. This specifically requires work in five areas.

First, move “nearshoring” from abstract concept to concrete reality. The U.S. government has talked about supporting the shift of supply chains from China to Latin America. To date, however, specific financing, matchmaking with partners in the region, and other support has not been sufficiently forthcoming.

GK, the Honduras-based multinational I am proud to lead, already hosts key suppliers to world-leading manufacturing, services and technology companies at facilities in Central America and Mexico. A crucial ingredient for making nearshoring work is to get arriving companies up and running quickly. Making this happen is one of GK’s specialties. Yet, there is no platform or process for connecting companies departing China with those who can help them land in Latin America. Left to their own networks, companies often simply choose to stay in Asia.

Second, employers and educational institutions must collaborate on meeting workforce demand. At GK, we are often asked to hire and train most of the in-country workforce for new investors. We do this through just this type of partnership.

In selecting the workforce, we are able to prioritize hiring women and others from key communities. At present, approximately 40% of the 20,000 employees operating within GK’s infrastructure are women. Ensuring the inclusion of women throughout the region’s workforce is fundamental. A recent study by the World Bank estimated that gender exclusion in the workforce will cost Latin America 14% of GDP per capita over the next 30 years.

In addition, we prioritize employment opportunities for other marginalized communities. Those deported from the United States are often stigmatized and have a hard time reintegrating into Central American life. GK does U.S. background checks on most of our prospective employees, so we can employ deportees and others with confidence. Employment with GK gives them a reason to build their lives at home in Central America.

Third, drive trade facilitation. Puerto Cortés, Honduras, is a mere two-day sail to Miami, Florida, compared with an average of 25 days from Shanghai, China, to Los Angeles, California. Yet, to fully convert this proximity advantage into trade growth, components and finished goods need to get into and out of Central America more quickly. This means investing in improving the efficiency of ports, customs and — crucially — inland transportation.

The Dominican Rebublic-Central America Free Trade Agreement is a crucial economic anchor for the region. In the context of nearshoring, we should assess how it can be better utilized to catalyze inbound investment.

Fourth, Central America must build linkages to the global innovation ecosystem. Intellectual property and other “intangibles” now account for 90% of the value of the S&P 500. Long-term development requires an ability for Central Americans to create IP and technology-intensive enterprises. Making this a reality will require access to capital and a series of complementary policies.

GK is currently developing an “Altia Smart City,” where it will teach high school graduates English, give them tech training and link them to jobs in the global tech economy. Invariably, some of those trained will start innovative companies of their own, which will help to grow the pie for everyone.

Fifth, employers in Central America must commit to paying living wages, providing good working conditions and offering pathways for professional growth for their employees. GK has done this for 30 years in Central America as it has grown into a large, globally active company.

It is within our power to end the tragedy of mass migration from Central America. All we must do is to think and act differently.


Mr. Yusuf Amdani is Chairman of GK Group. He was born in Karachi, Pakistan, though he has been Honduran naturalized. His family had a long history of involvement in the textile and spinning industry, dating back to the 1940s, when they started manufacturing clothes and producing raw material for textiles. You can reach GK Group’s General Counsel Emilio Castro by email here.

A+
a-

In The News

Health

Voting

Opinions

The Solution to Trump’s Immigration Debacle? Immigration Reform

Since June 6, immigration enforcement operations have surged across Los Angeles. In just the first 10 days of June, 722 individuals... Read More

Since June 6, immigration enforcement operations have surged across Los Angeles. In just the first 10 days of June, 722 individuals were arrested, according to the Deportation Data Project. But the data tells a deeper story: 417 individuals had no criminal record; 84 others had pending charges;... Read More

Medicaid Helps Me Be a Mom — and a Survivor

Receiving a cancer diagnosis is life-altering. So is raising a child with profound disabilities. Managing both at once, with treatment... Read More

Receiving a cancer diagnosis is life-altering. So is raising a child with profound disabilities. Managing both at once, with treatment plans, caregiving decisions and financial burdens, can feel nearly impossible. I never imagined I would face stage 3 breast cancer while also ensuring care for my... Read More

Federal Debt, AI and a Warning for Future US Investment and Economic Security

The United States is approaching an inflection point, one defined not by a single crisis, but by the confluence of... Read More

The United States is approaching an inflection point, one defined not by a single crisis, but by the confluence of several slowly building threats to its long-term economic and national security. These threats include the growing federal debt that threatens the market for U.S. Treasurys, transformative... Read More

July 3, 2025
by Andres Ramirez
Ballot Access: How State and Local Election Officials Are Shaping Voter Registration and Participation

The United States has long relied on a decentralized approach to elections, with state and local officials holding primary responsibility... Read More

The United States has long relied on a decentralized approach to elections, with state and local officials holding primary responsibility for voter registration and participation. This structure became even more consequential after the Supreme Court’s 2013 Shelby County v. Holder decision, which weakened federal oversight and... Read More

LDS Families Know Fiscal Responsibility — This Tax Bill Isn’t It

As the House prepares for a final vote on President Donald Trump’s sweeping reconciliation package, it’s worth pausing to ask... Read More

As the House prepares for a final vote on President Donald Trump’s sweeping reconciliation package, it’s worth pausing to ask a basic question: What, exactly, makes a bill fiscally responsible? As someone who values limited government, strong families and wise stewardship, I understand the instinct behind... Read More

Closing the Capital Gap in Rural America Is Possible

One of the biggest barriers to economic growth across our country is that parts of America are overlooked economically —... Read More

One of the biggest barriers to economic growth across our country is that parts of America are overlooked economically — simply out of sight and out of mind. Coastal hubs attract billions of dollars in investment, while rural communities are often flown over or driven past,... Read More

News From The Well
scroll top