Worth reading is Marcela Sanchez's column last week in the Washington Post. Sanchez talks about the fact that the almost $3 billion of remittances entering the country do little for economic development:
Salvadoran immigrants are frustrated that their cash isn't reaping more development rewards back home. Although remittances have proved to be a lifeline to thousands of families in extreme poverty, immigrant Salvadorans fear that the money is creating a culture of dependency in the home country.
With that background, Sanchez describes the US Millennium Challenge Accout grant of $461 million to El Salvador as a missed opportunity to leverage the flow of remittances into a source of economic development. The grant process did not include any provision for partnerships with Salvadorans abroad looking for ways to help development in their home country. While the MCC grant is substantial, it is still small compared with the size of the flow of remittances into the country.