[G]lobalization is creating conditions under which international border regions will be able to transcend the limitations placed on them by national boundaries. Border regions, once perceived as political and economic peripheries in a hierarchical world of nation-states, might thus be developing into zones of potential international coooperation and synergy.

- James Scott

Yet we cannot deny the processes of interdependence that define our contemporary experience as North Americans. In a post-NAFTA, post-Cold War America, the binary models of us/them, North/South, and Third World/First World are no longer useful in understanding our complicated border dynamics, our transnational identities, and our multiracial communities.

- Guillermo Gomez-Pena

Once an area of dirt roads and a small mission, the San Diego-Tijuana region is one of the fastest growing regions along the US-Mexico border. While most of Mexico is still experiencing an economic recession, Tijuana's capitalist economy is booming with rapid population growth and low unemployment rates. The landscape of this entire metropolitan region has altered dramatically in the last decade as the border has been host to rapid industrialization by maquiladoras, with all their attendant social, economic and environmental consequences which will be discussed here and in subsequent chapters. A sign of the times, the San Diego-Tijuana corridor has long functioned and existed as a cross-border region with a high degree of economic integration, especially in the context of increasing global competition and interdependency. This process has been further consolidated with the implementation of the North American Free Trade Agreement (NAFTA) in January 1994.

While NAFTA was an agreement based solely on neo-classical economic principles, facilitating free trade and investment across the border, it is having a much broader impact on the daily lives of people, especially those living in border communities where the effects of increasing integration are felt most intensely. Regional economic integration and increasing interdependency is a result of a larger process of globalization, as businesses and regions compete on a world-wide scale, a process referred to earlier as "glocalization". Businesses have experienced a boom under the auspicious circumstances created by increased free trade and the maquiladora industry has grown as well, with many companies locating in Tijuana. The growth in maquiladoras has led to a variety of more negative consequences, namely population pressure due to internal migration to Tijuana by Mexicans from the interior in search of work and environmental problems, which are aptly discussed by Bryan Roe in the following chapter. Especially critical are problems with infrastructure, as rapid and unplanned growth has led to deficiencies in housing, services such as sewage and garbage removal and water, and transportation.

Equally important is the problem of immigration to the United States. While Mexico insisted this issue be included in the discussions on NAFTA, the United States refused, asserting instead that as Mexico's economy improves under NAFTA, fewer Mexican citizens will want to leave. The immigration issue remains problemmatic three years later, and is as divisive now as it was when negotiations about NAFTA were underway. Even as citizens of both countries who live in this transnational region see the inevitability of increasing integration and have identified their future with their southern or northern neighbors, the "tortilla curtain"- as the ten-foot high, fourteen-mile stretch of welded steel fence along the US-Mexico border is known locally- is being fortified and increasing numbers of border patrol officers police the boundary. Luis Urrea, a Tijuana born writer, captures local sentiment towards this boundary: "There is a joke told on the border. . .It is either a witty take on Cold War rhetoric or a racist epithet politically incorrect in every way. It refers to the hopelessly tattered yet imposing borderline. . .They call the border "the Tortilla Curtain."

Clearly, regional development is not as simple as NAFTA's economism might suggest, nor is it without its problems. Economic interdependency is here to stay and is leading to increasing integration at all levels, a process consolidated by NAFTA but begun long before the agreement was even discussed. Because the long-term social and economic fate of US border regions are tied to their Mexican counterparts, it is critical to confront the problems and issues which have emerged along the borders. Without addressing problems such as lack of adequate infrastructure, sustainable development along the border will be impossible and the goals outlined in NAFTA will not be realized. In the opinion of Bill Lenderking, a retired US Foreign Service Officer;

The commitment to address socioeconomic costs has not yet been made, eclipsed by the political need to downplay the possible negative effects of NAFTA. But the way to secure the fullest advantages from NAFTA is not only to push ahead with economic and political reforms and increased investment and trade, but to face squarely the agenda of daunting problems and their political, economic and social costs. . .

While projects such as the side agreements to NAFTA show that some commitment is being made to address the full spectrum of issues associated with free trade, Lenderking's observation is a salient reminder of the importance to recognize and address such costs if NAFTA is to be successful in the long-term.

It is the goal of this chapter to identify some of the major socio-economic problems and issues confronting the San Diego-Tijuana cross-border region, especially in light of NAFTA and the development it has encouraged. In this way we can begin to address some of the obstacles to long-term sustainability which have so far not been adequately confronted as the above quotation illustrates. In this region, economic interdependency is the strongest tie forming relationships across the border and the economic fate of both California and Baja California is dependent upon the success of the entire region. Maquiladoras have been the most dominant feature of the landscape, and as was mentioned before, have had a huge impact. This chapter will focus on the emerging television and electronics sector in Tijuana and its connection to Asia and specifically to Japan. Why is the maquiladora industry growing when many hoped it would decline under NAFTA, and what are the impacts of such growth? In answering this second question, infrastructure emerges as the key issue. What are the main challenges which have emerged due to unplanned and rapid growth? What are some of the social consequences? Finally, why has immigration remained as such a divisive issue within the context of NAFTA and increasing interdependency, and what are some of the contradictions which have emerged surrounding such an emotional and political issue?

THE REGION

I press my hand to the steel curtain- chainlink fence crowned with rolled barbed wire- rippling from the sea where Tijuana touches San Diego, unrolling over mountains, and plains, and deserts...This is my home, this thin edge of barbwire.

- Gloria Anzaldúa

The San Diego-Tijuana corridor is not simply a vague area surrounding the "twin cities" of San Diego and Tijuana, but has been carefully defined. The most comprehensive definition has been published as the Demographic Atlas of San Diego-Tijuana produced by San Diego Dialogue, a research group based at the University of San Diego, which maps the neighboring communities as a single metropolitan region. "Maps have always stopped at the border; data has always stopped at the border, going one way or another. The region now has a first-ever, cross-border demographic view of itself," according to Charles Nathanson, executive director of San Diego Dialogue. As economic integration proceeds under agreements such as NAFTA, it is changing the way a region such as San Diego-Tijuana is viewing and defining itself. Groups such as San Diego Dialogue have a vision for a bi-national community that reflects the increasing interdependence of the corridor.

In simple physical terms, the border region is arid, receiving only an average of 10 inches of rainfall per year. This lack of water has important implications for future development of the region. Situated between the Pacific Ocean and the Pacific Coastal mountain range directly north of the Baja Peninsula, the region stretches from Camp Pendleton south to Playas de Tijuana (see Figure 1), incorporating the US counties of San Diego and Imperial and the Mexican counties of Tijuana, Tecate and Mexicali. It is the largest region on the US-Mexico border and contains 35% of the border's population. The region is very dynamic, experiencing high levels of growth in industry and population and increasing interdependency is fueled by economic integration. Since 1991, employment for the San Diego-Tijuana-Tecate region has been driven by job growth in Tijuana, one result of such economic interdependency. San Diego has been losing high-skilled jobs in the aerospace and defense industries while Tijuana has been gaining jobs, especially in consumer electronics. Job growth in San Diego is related to job growth in Tijuana, as San Diego expands its suppliers and support services for manufacturing across the border. So as San Diego loses jobs related to the declining defense industry, Tijuana is gaining jobs as maquiladoras locate just across the border. Many manufacturers and other businesses open offices in San Diego and generate jobs for suppliers, etc. and a vibrant regional economy has begun to emerge. Similarly, company owners and managers often live in San Diego and commute across the border as necessary.

Another important element which affects the region are the everyday, routine border crossings. Besides illustrating regional interdependency, those who cross the border to work in San Diego make an important contribution to San Diego's economy, with the majority involved in service occupations. Looking at border statistics also highlights this constant movement of people and goods across the border which has a profound impact upon the dynamics of the region. There are approximately 4 million northbound crossings each month and these border crossings are primarily related to visits by residents of the US and of Mexico and not attempts to immigrate or to establish a residence in the other country. The daily lives of those living in this bi-national region increasingly incorporate life beyond the border. This activity is concentrated at the two main ports of entry in the region- San Ysidro and Otay Mesa, both of which experience an intense ebb and flow of people at all times. Further east is the port of Tecate which has experienced increased use, but nothing like the activity of San Ysidro and Otay Mesa.

Capitalizing on NAFTA

As NAFTA moves into its third year as a functioning free trade agreement, many in the region wonder what its impact has been. Without a doubt, NAFTA has fostered increased economic development within the San Diego-Tijuana transnational region. Numerous economic opportunities have emerged along the border which businesses and entrepreneurs have been quick to capitalize upon, resulting in growth of trade, investment and the continued expansion of the maquiladora industry. More and more businesses are seeing their future linked inevitably to their neighbors across the border. This is having a profound impact upon the region and stems from the increasing interaction and interdependency fostered by the free trade policies of NAFTA.

The impact of NAFTA on regional interdependence can be highlighted by looking at export numbers in California. Since it was implemented in 1994, California has seen a 20.4% increase in exports to Mexico, largely in electronics components and computers. This trend continues. "NAFTA is clearly benefiting California's economy", according to Trade and Commerce Secretary Julie Meier Wright, who is not alone in this belief. Mexico-US trade as a whole has also seen the effects of NAFTA. After the first year, American exports to Mexico grew 22% and imports from Mexico grew 23%. This left America with a trade surplus of $1.8 billion and the US Department of Commerce estimated that this expansion of exports to Mexico accounted for 130,000 US jobs. But these numbers are indicative of only macro-level experiences. Looking closer at what is actually happening on the ground gives us a broader understanding of the more subtle effects of NAFTA and what issues must be addressed if it is to successful. As the Tijuana-San Diego region continues its interdependent evolution under NAFTA (and globalization in general), trans-border, socio-economic problems must be addressed if sustainable, long-term development is to be attained. Of paramount significance in terms of its far-reaching impact on the region is the proliferation of maquiladoras along the border, in light of their presupposed decline under NAFTA.

MAQUILADORAS

[T]he maquiladora should be seen as a stage in the global integration process, a way to move from one mode of industrial production to another- from looking inward to involving the national industries in the global competitive challenge.

Originally founded in 1965 after the closure of the Bracero Program in 1964, maquiladoras were established within a zone along the border as a way to provide jobs for Mexican workers who had been working agricultural lands in the United States since the end of WWII under the Bracero Program. Responding to special privileges and tax breaks, businesses relocated to take advantage of a cheap and plentiful labor force, lax environmental regulations, and taxation only on value added to products assembled in Mexico. Though long considered a shining example in Mexico's otherwise depressed economy, wages in maquiladoras were nontheless low, living conditions poor, and worker rights were often ignored. While conditions have improved somewhat, especially due to international attention, maquiladoras are still having a huge affect on employment, living and social conditions and are shaping the regional economy.

Currently, US bound products only have to be assembled in maquiladoras to receive tax breaks so the components of these products can be made anywhere. However, under NAFTA, maquiladoras no longer receive the special status they enjoyed in the past. NAFTA gives preferential tariff treatment to companies that meet local content requirements in order to assure that most of the economic value remains in North America, providing an incentive for manufacturing to occur in North America, rather than simply assemble for export as maquiladoras have traditionally done in the past. Accordingly, many companies are now beginning to manufacture the parts they had imported and assembled before. "From simple assembly, it has evolved to a very sophisticated and complete manufacturing process", explained Enrique Mier y Teran, a Tijuana-based industrialist who has been involved in the development of the maquiladora plants in Mexico since the 1960s. According to the Clinton Administration:

With NAFTA, maquiladora development will tend to be dispersed away from the border area to other parts of Mexico, thus reducing the impact on the border area...If NAFTA is not implanted, incentives will continue under the maquiladoras to locate facilities in the border areas, thus exacerbating environmental pressures on the border.

Maquiladoras are now enjoying a seven-year "grace period" before they must comply with such origin requirements by 2001. After that, they will be treated like other manufacturers. So why has there been a growth of maquiladoras along the border and what does this mean for the region?

Sushi in Tijuana?

As was mentioned before, by the year 2001, all companies in North America must comply with origin requirements to be exempt from tariffs and to take advantage of the benefits of free trade. This has resulted in some important changes in Tijuana, which have in turn affected the entire region. Most significant is the dramatic rise of Asian corporations which are relocating to the border region, part of an all-around growth of maquiladoras. To beat the 2001 NAFTA deadline, Asian companies are rushing to build plants in Mexico to manufacture parts formerly produced in Asia. This assures access to key US markets and a competitive position in the global market due to lower production costs.

Tijuana is already home to the largest number of maquiladoras, no fewer than 560 in 1996 and this number is growing as companies continue to invest and locate along the border (see Figure 2). As one example of this growth, in April 1995 there were 160 maquiladora plants in Tijuana, by November that year the number had grown to 501. They have been an important part of the region's economy for quite some time, especially

in Tijuana where they employ more than 100,000 workers. As a result, throughout most of Mexico unemployment is about 30%, but in Tijuana it's approximately 2% and the

GDP production of the region is huge. In 1996 alone, the maquiladoras in Baja California brought in $1.2 billion investment dollars and will export about $1.1 billion dollars worth of goods.

While Asian companies are not alone in opening border operations, they are the most visible and recent phenomenon. Japanese firms especially seem to be concentrating in Tijuana, while Korean firms settle in Mexicali and Hong Kong businesses in Merida. Companies in Tijuana read like a roster of Who's Who among Japanese electronics manufacturers, including the two largest; Sony Corporation with 5,200 employees and Sanyo Electric Company with 4,500 workers. These labor intensive plants bring not only jobs to Tijuana, but they are also having a trickle-down affect in San Diego, supporting supplier plants and service-oriented industries. They bring, as well, the significant spending power of Japanese employers and maquiladora employees which has a huge affect on the regional economy and retail businesses located just across the border. As Erika Kussmann discusses in Chapter 9 of this volume, Mexican shoppers are a fundamental part of the retail industry which has suffered from the decline of the peso, which has meant fewer Mexican shoppers with money to spend. The same situation has ocurred along the California border. This growth has also led to the emergence of Japanese language programs and numerous Japanese restaurants have opened in Tijuana. Besides wanting to take advantage of the American common market consolidated under NAFTA, some assert that the devaluation of the peso, coupled with a loss of value by the dollar against the Japanese yen is also encouraging investment in Mexico. Investing in Tijuana has become an opportunity too good to pass up. More likely however, this increasing investment is part of Japanese corporations long-term plans which take the growing integration of the region into consideration.

Economic Interdependency

This growing interdependency has led businesses and policy makers in both San Diego and Tijuana to identify their economic future with the success of the region on the whole. Together, they are actively sending commissions to Japan and Korea to promote the region for investment. The San Diego Economic Development Corporation markets both the border city and its twin city, Tijuana on trade missions abroad. In such trade missions, the comparative advantages of the region are touted: namely the exploitation of cheap and plentiful labor on the Mexican side and proximity to American markets, along with the livable city of San Diego which is only a short commute to work in Tijuana. As businesses become increasingly focused on the global economy, there is a pressing need to be competitive at that level. In response to this need to diminish production costs, the San Diego-Tijuana metropolitan area provides what they need- cheap labor supply and the high-tech services San Diego can provide.

During the debates surrounding NAFTA, advocates asserted that the agreement would decrease incentives for corporations to locate along the border by removing the special tax status of maquiladoras, but this does not seem to be the current situation. While evidence shows that many new industries are locating to the interior of Mexico, the border is still experiencing rapid growth of maquiladoras and, as a region, still employs the largest number of workers overall. Despite all predictions, the border still remains an attractive place to invest and is preferred over interior locations, largely because of the economic synergy shared with San Diego. In a practical sense, the biggest reason for this is the lack of infrastructure in Mexico's interior, especially regarding transportation routes to the border. Many products cross the border in large trucks and head to their final destinations within the United States, and the added cost of transporting goods from the interior to the border is not worth it. From another perspective, Asian firms have been wary to invest in Mexico after the 1995 peso crisis and political instability. They perceive that the United States is acting as a sort of security blanket against economic or political crisis to the northern border region, where most of their investments are concentrated. Although as the Mexican economic and political situation stabilizes this will probably not be such a factor. Regardless, the continued dynamic growth of maquiladoras, especially in the border region of Tijuana-San Diego, is indisputable and the emerging number of Asian, especially Japanese firms one result of NAFTA.

These Japanese corporations, like American and other Asian corporations, are significant because the manufacturing they are doing and bringing into the region is a change from earlier export-assembly production. It seems this type of high-tech manufacturing, predominantly in electronics and using maquiladora style production plants, is the future path of industrialization in northern Baja California and will be the engine of development for the region, encouraging growth on either side of the border. The quotation at the beginning of this chapter alludes that as globalization continues, companies are looking for ways to cut their costs to remain competitive and are locating in this region in response to the advantages which are emerging with increasing interdependency. This represents challenges to US policy since the infrastructure of Mexico's interior is affecting what is going on along the border, and thus the United States. As the border is becoming more important globally, it is crucial to address such problems to assure continued growth and long-term sustainability. By focusing on border communities such as San Diego and Tijuana and cross-border cooperation, we can begin to address the problems which have emerged with economic interdependency.

The TV Twin Cities

The maquiladora industry is not only expanding, it has changed since its introduction in 1965. As was alluded to earlier, emphasis has shifted from simple assembly for export to manufacturing with an increasing emphasis on more high-tech industries. The most significant growth has been in telecommunications and electronics manufacturing. Accordingly, Tijuana has become the TV capital of the world, producing almost 10 million sets a year, or about 30% of the TVs sold in the US In the factories of the major players such as Sony, Sanyo, Panasonic and recently, Samsung, Mexican workers turn manufactured components into finished sets to be sold mostly across the border. "Obviously, the television companies are coming [to Tijuana] because this area is the TV capital of the world and a lot of suppliers are being asked to move closer to their clients", says Steve Gross, chairman of the Otay Mesa Economic Development Council in response to announcements that Matsushita Electric Industrial Co., a leading Japanese electronic manufacturer, Victor Co. of Japan and Sanyo Electric Co. would be either building new plants or expanding existing facilities.

While there has been some doubt that maquiladoras would persist under NAFTA, they continue to function as an important part of the regional economy. "The people who say there is a demise of maquiladoras (under NAFTA) don't know what they're talking about. They're the No. 1 currency earner in Mexico. Maquilas will grow until the Mexican government decides not to make them grow," says Neil Whitely-Ross, vice-president of the San Diego Economic Development Corporation. Similarly, their success and recent expansion seems to affirm they will be pivotal to the success of the region, especially as they continue to move towards more high-tech industries such as television production and other electronics manufacturing. Their impact on labor, investment, migration patterns and infrastructure cannot be ignored when considering the future of this region. As Asian firms relocate to the border, they boost the San Diego-Tijuana corridor, most notably in job and business growth. When the Japanese battery manufacturer Matsushita relocated to the border region, it brought with it about 500 new jobs in Tijuana and many in San Diego as well. Such growth however, is placing a heavy burden on infrastructure and the environment with serious social and economic consequences, which will be explored in the following pages.

INFRASTRUCTURE

But with growth also comes burdens and pressures. To this point, infrastructure development has been unable to keep pace with trade and economic growth. Without adequate wastewater facilities, power generation plants, and modern transportation systems to facilitate the transfer of goods and services across the border, we will not fully realize the potential of NAFTA

.- Michael Kantor, US Commerce Representative

With its rugged canyons, deep ravines and uneven ground, Tijuana is an unlikely location for such phenomenal growth. Bounded by the mountains on the east and the ocean on the west, the region lacks important resources, especially water and has seen only limited investment in infrastructure, yet people keep coming. In a great wave of internal migration, Mexicans from the interior are moving north to jobs in and around Tijuana that pay four times Mexico's minimum wage of 25 pesos ($3.40) a day. They migrate to Tijuana to take advantage of the booming growth of maquiladoras and Tijuana's population, growing at around 7% a year, now numbers 1.5 million. This rate of growth is virtually unmanageable for an already overburdened infrastructure. Workers cope with ramshackle housing that has sprung up in lieu of decent places to live along with a flourishing crime rate. Roads and public transportation are overloaded while there is a lack of adequate health services and clean water. These are just a few of the problems which if left unsolved, have the potential to undermine the growth of this region and thus make the economic gains of NAFTA obsolete.

Without a doubt, growth in trade and production has not been matched by investment in transportation, housing and social services, and waste treatment. There is widespread agreement that such a lack of infrastructure throughout the region is posing a serious threat to the free trade being encouraged under NAFTA. Carlos de Orduna, executive consultant for Sanyo North America says that with NAFTA, his company hoped to expedite things, but has encountered various obstacles moving goods to and from Mexico through the Otay Mesa border, such as long waits at the border, complicated paperwork, and transportation problems. In addition, lack of services and housing is having a serious impact upon living conditions and the health of many residents.

As the region becomes increasingly integrated, these problems do not remain isolated but rather are affecting the region as a whole so are of general concern. The largest challenge to bi-national integration is the asymmetry which exists along the border, reflected in lower wages, living conditions and environmental disgrace. This is one of the few places in the world where a less developed country shares a boundary with a developed country. "Perhaps the most important challenge that the planet will face over the next couple of decades will be the integration of rich and porr regions into a growing, equitable, and environmentally sustainable world economy. Meeting this challenge successfully will depend on how this economic integration is negotiated and managed, " according to Raul Hinojosa-Ojeda, President of the North American Integration and Development Center. One result of increasing interdependency is the realization that the fate of one area is directly tied to the fate and prosperity of one's neighbors directly across the border. This has not always been the case as few in San Diego gave Tijuana much thought when the southern California economy was strong under the booming aerospace and defense industries of the 1970s and early 1980s; south of the border was considered the poor outlying neighborhood. For the first time, those north of the border are beginning to realize that improved conditions in Mexico are a necessary factor in regional prosperity and continued growth. This realization has materialized in numerous bi-national committees and organizations which have sprung up in both Tijuana and San Diego to address and research these challenges. From human rights, health services, transportation and economic committees, they illustrate a change in attitude and thinking that reflects Tijuana and San Diego's increasing interdependency.

Living in Tijuana

Tijuana's economy is booming, unemployment is low, corporations are tripping over themselves to invest in the area and take advantage of free trade, yet the area is still entrenched in relative poverty and the asymmetry between the US and Mexico has resulted in disparities of living and working conditions. The problem is not insufficient employment opportunities, but rather poor living conditions, due partly to low wages and thus a low per capita income. Living conditions have also been affected by rapid industrialization, which has resulted in collective environmental problems and various health hazards. The population growth which accompanies such industrialization has outstripped the government's capacity to provide adequate urban services such as paved roads, sewage systems, potable water and electricity.

Unprepared and unable to accommodate the flood of new residents, shacks have been hastily constructed on the hills surrounding Tijuana, often of flimsy cardboard and known as casitas de cartón. They are a poor substitute for a decent place to live and usually do not have access to sewage or safe water and often are in precarious locations so that they are susceptible to such hazards as flooding or pollution from nearby factories. These communities, known as colonias, extend beyond the outskirts of Tijuana. The Los Angeles Times relates the story of Oswaldo Perez, who migrated from Central Mexico to work in Tijuana as one example of local challenges those who live and work in the area face:

The insecurity is what Perez dislikes most. He has already been mugged in increasingly lawless Tijuana. He lives in a dismal one-room shack with five young men, all from Puebla, in an unpaved squatters' barrio called 10 de Mayo that sprawls east of Tijuana's big industrial zone. The place has no running water or sewage facilities...

Such conditions have become acute along the border in recent years, especially as more and more people arrive in Tijuana and is one clear indication of the asymmetry which persists along the border in this region.

Another sign of such asymmetry is illustrated by looking at some comparisons between San Diego and Tijuana. When looking at the region on a whole, it shares the highest rate of access to sewage connections and running water along the border. But, when compared with each other, there is a striking disparity of the cities' ability to provide such services: More than 95% of San Diego's housing units have access to sewage connections and running water, compared with fewer than 60% for Tijuana- the lowest along Mexico's northern border. Along the same line, another study done by Borderlink, a joint research project of UC San Diego and El Colegio de la Frontera Norte, found that only 59.3% of homes in Tijuana have safe drinking water and only 50.5% of homes have waste water and sewage disposal. This seriously impacts the local water supply since households with no access to sewage will throw their waste directly into the river. This produces serious pollution problems, as Bryan Roe discusses in the following chapter. Diego Moreno, Tijuana's director of planning agrees that this correctly points out his city's pressing need for infrastructure improvements. "Where we are just in very, very bad shape in Tijuana are in terms of services, water connections and sewage." This deficiency is astounding and points to a serious government inability to provide the necessary urban services to assure residents a safe and clean environment. While the need has been identified, as of yet, it has not been adequately dealt with by either the government or local agencies. Besides being an obstacle to future development, serious environmental and health consequences have been the result.

Due to a lack of housing opportunities, many migrants are unable to bring their families with them as they travel to the border to work. Similarly, many women are compelled to send their children to live with relatives in south and central Mexico when they contract bronchitis or asthma after living in colonias and breathing air polluted by industrial waste and traffic. Besides social and emotional consequences, such poor living conditions feed into rampant absenteeism at the maquiladoras, minimizing their economic potential. Many simply don't find the challenges and living conditions worth the work and so return to the towns they left or cross the border into San Diego. This absenteeism is due also to the repetitive nature of the work, low wages and poor working conditions and is a serious problem for industry in this region.

Young Moo Kwon, president of Samsung's Tijuana TV operations, sighs when asked if Tijuana could lead Mexico toward becoming another economic tiger, and points to rampant absenteeism. Kwon struggles to get his plant's absenteeism rate down to 3.5%, an excellent rate locally, though his superiors in Seoul were mystified why it couldn't go much lower. Kwon tries to explain to them that in devoutly Catholic Mexico, itinerant workers like to be with their families during religious holidays, and, given the housing situation, there is no way they can bring their families to Tijuana.

Clearly, poor living conditions affect business productivity and future prospects as well as the daily lives of Mexican workers. As the San Diego-Tijuana region tries to become an important global player, especially in Asia, such factors affect future opportunities for investment and will challenge continuing development.

Workers in maquiladodras have long suffered from poor working conditions and experience numerous health hazards. A Study by the National Safe Workplace Institute concluded that many US companies in Mexico do not enforce the occupational and environmental standards normal to US-based companies. "We found that workers are seldom given training, that machinery is not safeguarded, and that instructions on chemical hazards are nearly always written in English. Work-related injuries and illnesses are tupically ignored and workers who complain are typically discharged." Besides working conditions, labor and unions are important issues related to this industrial production, which Kussmann discusses in detail (see Chapter 9). She explores how US labor and Mexican labor rights has been affected along the Texas-Mexico border, and labor rights have consistently been ignored in Baja California-California businesses as well.

The Water Challenge

Water is an especially important resource in this partly arid region on both sides of the border. Roe presents an extensive discussion of the water challenges faced by this region, showing that besides water scarcity, there are serious problems with pollution as industries dump hazardous waste into the sewage systems or directly on the land, where it eventually makes its way to the rivers by falling rain. Industry is a major contributor to environmental pollution and poor water quality. Water is scarce; posters in the Sony plants on both sides of the border preach conservation and executives of the Rancho Bernardo facility (in California) speak of water productivity- the number of gallons it takes to produce a good TV tube. This same facility also proudly tells visitors they have cut daily water consumption from 700,000 gallons to less than 500,000 gallons. Residents and industry must share the same limited resources and an environment that is feeling the strain of industrial development. In this situation, continued expansion is impossible and free trade will mean nothing if businesses no longer have the resources they need to operate.

In 1995 for example, many residents in Tijuana fumed when a new Samsung factory decided to locate to Tijuana since it uses 2.4 million gallons of water from the same diminished river that provides Tijuana's limited water supply. Due to lack of adequate infrastructure, as previously outlined, many residents live in marginalized communities in makeshift houses and have no running water or other services usually provided by the government such as sewage and garbage collection. The trade-off is the number of jobs which are created- 800 in 1995 and another 1,000 in 1996. This illustrates the fundamental challenge of encouraging continued economic growth and expansion while assuring such growth is sustainable. In this region, where important resources such as water are limited, it is crucial to address these problems.

There have not been sufficient resources to accommodate the growth which was expected under NAFTA but never planned for. Future development of the corridor will be stymied by such mundane considerations. Lack of water and other resources will deter businesses from locating in the San Diego-Tijuana region, thus resulting in stagnant economic growth. Similarly, poor living and working conditions are not only undesireable, they also result in an unreliable workforce. If sustainable development is a goal of the US and of NAFTA, such living and working conditions, the result of low wages and lack of infrastructure, must be dealt with. The assumption under NAFTA is that wages and conditions in Mexico would improve with economic growth, but this economic expansion is being challenged by problems along the border which must be addressed for sustainable growth.

On the Road to Nowhere: lack of regional transportation

Besides working and living conditions in Tijuana, the biggest challenge in terms of regional economic development is the lack of adequate transportation throughout the region. Long delays at both San Ysidro and Otay Mesa crossing points and congestion on existing roads have nearly doubled in the past ten years as production throughout the region increases, just one sign of burgeoning trade and investment beyond national boundaries. Businesses are not alone, workers also face congestion. The average maquila employee may commute an hour and a half each way, walking and taking one or more buses to get to and from work. As the region grows and becomes more interdependent, there is a greater reliance on transportation and communications and as a result, the above problems threaten the regions's dynamism. As the first step to confront these problems, county and city officials are working to build a consensus on what needs to be accomplished and are establishing priorities, but funding continues to be a challenge.

The Tijuana-San Diego corridor is recognized as one of the busiest gateways in the US to carry commerce throughout all of California and the rest of the United States; on a typical weekday, more than 110,000 vehicles cross the border at the Otay Mesa and San Ysidro ports of entry^. While the vast majority of all goods transported through the region are moved by truck, no expressway connects San Diego and Tijuana. Trucks waiting for customs clearance and inspection at the border sometimes back up for five miles as US Customs people diligently search for illegal drugs and aliens, instantly turning the border checkpoint into a giant parking lot. Many companies, such as Sony, hold inventory costs to a minimum by having some parts delivered only hours before they are used. On such a tight schedule, transportation delays can be disastrous. Besides hurting industrial producction, these backups at the border have serious environmenetal implications. Roe (see Chapter 8) illustrates how idling cars and trucks are a major contributor to air pollution. If such situations continue, impediments such as these will eventually outweigh the benefits of increased free trade under NAFTA and will hurt the entire region. Therefore, the need to invest in transportation is paramount.

With the dramatic growth of the maquiladora industries, the number of trucks and commercial vehicles crossing the border in southern California on a regular basis has increased substantially. US Customs information illustrates this increase as truck crossings have risen an average of 9% each year from 1990-1995, while car crossings are increasing 2% annually. The San Diego region is the final destination for a very small percentage of these trucks. Most (87%) are headed to other parts of California and to destinations throughout the nation. Due to this movement outside the region, border-related transportation infrastructure is important not only for California but for the nation's economy as well. The San Diego Association of Governments (SANDAG) report also notes that truck loads originating in Mexico are delivered to Otay Mesa where the goods are transferred to US trucks for hauling. The result is increased truck traffic in the border area with a very high percentage of trucks motoring on Otay Mesa Road, the main road running parallel to the border, adding to the traffic congestion, pollution, and decreasing road safety as more trucks are on a road not meant for such large vehicles.

Source: INFO, special report, SANDAG, November 1996.

The municipality of Tijuana has seen the greatest growth in maquiladoras. Complementing this is the development of the Otay Mesa area, designated a US Foreign Trade Zone in 1989 and designated by the state of California as an Enterprise Zone. Due to this growth, both SANDAG and Caltrans (the California Department of Transportation) have identified State Route 905 (see Figure 3) as the key traffic link for the east/west corridor serving the flourishing Otay Mesa border area. Additional lanes are scheduled to be constructed, but as trade and development increase, this highway will continue to be overburdened as the primary route through the area. The need to expand the road to a six-lane freeway has been identified, but funding is the biggest challenge. Adequate funds are not available locally so attention is shifting to the federal level. The traffic growth which has resulted from increased trade and production is simply overwhelming the existing border transportation infrastructure.

There is also a need to facilitate north/south movement, linking the border region to other transportation routes. Turning part of Route 125 into a tollway is one plan. There has also been a call for an expressway linking Tijuana and San Diego, but as of yet, nothing seems to have materialized. One plan to raise funds proposed a border crossing fee of US$1.50, but this was turned down by President Clinton due to pressure from businesses and local governments of both sides of the border.

There has also been discussion to reopen the Desert Line of the San Diego & Arizona Eastern Railroad (Figure 3), which has recently been dubbed the "NAFTA train". Such a train would be an important link for the region; "More importantly, it would enhance the ability of the San Diego region to take full advantage of growing international trade, reduce local transportation costs and air quality impacts, and improve the ability of the region to attract jobs and rail-dependent manufacturers". The "NAFTA train" could also reduce the number of trucks trying to cross the border into southern California, thus helping to reduce the number of idling cars and trucks waiting at the border.

The above anecdotes implicate serious challenges confronting border transportation. Mexican domestic infrastructure poses a crucial problem for the entire region as well, but is very difficult for US policy to address. As was mentioned before, lack of adequate transportation within Mexico impedes the ability of industries to locate in the interior of Mexico so they continue to overburden the border region. Equally serious is the lack of housing and government services for many residents in Tijuana, one example of the asymmetry which exists along the border and reflected in lower wages. Infrastructure is key to the success of the region and investment in infrastructure to address these problems is neccessary to insure this region can acheive its potential in a viable manner. If these problems remain, they will threaten the long-term success of this trans-border region.

IMMIGRATION

Accounts of life along the border are evocative of modern spy novels. Agents equipped with infrared sensors track down migrants as they try to flee across the border into the United States while helicopters roar overhead. Many are able to successfully enter the United States, but many more are caught and deported back to Tijuana on crowded buses after being interviewed and fingerprinted by the Border Patrol. It's an arduous and often dangerous journey and many die along the way. While it has been described by some as a war zone, for others it's a way of life and often of death.

The NAFTA negotiations were significant not only for the free trade agreement and neo-liberal economic policies they entrenched, but also for the renewed attention to the problems of rampant free trade, especially in regard to the environment and labor. However, one clear impediment to establishing a social dimension of free trade is the fact that the US government established one very clear basic premise- that labor migration was not on the negotiating agenda, even after the Mexican government insisted it be included. This stems from significantly different definitions of the problem of illegal immigration and thus policy, which results in some startling contradictions. First, the United States views the question of undocumented immigration as a crime-related phenomenon, therefore requiring a law enforcement solution. This is witnessed in the strengthening of border enforcement capabilities through recent programs such as Operation Gatekeeper in the southern California border area. In contrast, Mexico recognizes undocumented immigration as an economic and labor-related phenomenon. Such opposing definitions make it difficult to reach common ground for negotiation and solution. Such definitions of undocumented immigration and the effects on Tijuana-San Diego are important in understanding the complexity of the issue and the various stakes involved.

Undocumented Immigration

As you drive on Interstate 5 around San Diego, it resembles any other stretch of the US freeway except for one notable difference. Posted along the road are yellow highway signs with black silhouette figures depicting a woman running, clutching two children by their hands. The message is at once obvious, ironic and sad: Watch out for people crossing (like animals)! More than 150 people have been killed along the freeway since 1987, a chilling indication of the dangers involved in such crossings. The number of illegal immigrants is extremely difficult to accurately calculate. When the Mexican government suggested immigration as a key issue, it proposed a strategy in which a priority was to verify the credibility of data and scientific information about the costs and benefits of immigration. This information could then be used to rationalize the question of immigration and provide a common point of reference to frame negotiation and discussion. Such joint research could help dispel misconceptions and stereotypes which prevail and provide a broader understanding of immigration to better confront this challenge in the San Diego-Tijuana region and open the way for discussion across the border. While the Border Patrol tends to focus more on numbers, various projects have been undertaken in an attempt to understand the dynamics behind immigration and what these numbers mean.

The Border Patrol statistics show that 483,815 illegal immigrants were apprehended last year trying to cross the border into the United States. But such a number does little to illuminate the realities behind the situtaion. San Diego Dialogue has provided interesting insight into facts surrounding illegal immigration. First, they have concluded that individuals attempting to enter the US without documents usually make several attempts before succeeding or giving up. Secondly, 65% of those planning to enter the US through San Diego County have previously lived and worked in the US Because some try as many as six or more times to cross the border (see Figure 4), it's hard to get a real number of people trying to cross since arrests do not reflect real numbers of immigrants trying to cross the border. Regardless of exact figures, inaccurate numbers lead California residents to perceive a "flood" of immigrants coming in from Mexico and they are threatened by it. This public opinion in turn feeds into policy as politicians respond to resident concerns.

Source: San Diego Dialogue, Demographic Atlas

Fortifying the Border

To assist the Border Patrol, a 14-mile long solid metal fence stretching from the Pacific Ocean inland was erected to replace the ineffective chain link fence which previously stood in its place. This metal wall is testimony of renewed efforts to regain control of America's borders and keep out illegal immigrants. As part of a broad plan to strengthen the southern border of the US in response to rising concern about illegal immigration in vote-rich California, the federal government announced Operation Gatekeeper on October 2, 1994, a $46 million strategy to reinforce the Tijuana-San Diego portion of the border. Since then, Washington has dispatched 700 additional agents to San Diego for a total of 1,955. They are equipped with infrared night vision scopes and have much more resources at their disposal. Experts are saying fewer people are attempting to cross into San Diego and apprehensions by the Border Patrol in the San Diego County sector fell about 8% last year to 483,815 compared to 524,231 in 1995. From many perspectives, Operation Gatekeeper is a success. This is questionable however, since testimony has emerged that Border Patrol agents have not been recording all the immigrants they apprehended trying to cross into California in order to give the appearance that Operation Gatekeeper is working and thus maintain federal support. There have also been complaints about human rights abuses according to many immigrant rights organizations based at the border in Tijuana. The American Friends Service Committee border monitoring project investigates two or three anti-immigrant violence per month and a half-way house for migrants has seen a rise of migrants passing through.

More recently, the Immigration and Financial Responsibility Act of 1996 was overwhelmingly passed by the Senate on May 2, 1996. Incorporating assumptions similar to those behind Operation Gatekeeper, namely that increased enforcement is the solution to the problems caused by illegal immigration, the bill is a dramatic call for action. A few highlights: The bill would allow the Immigration and Naturalization Service to hire 4,700 additional Border Patrol agents over the next five years, nearly doubling the force's current strength; it would stiffen the penalties faced by those who smuggle aliens across the border or who falsify documents. Finally, it would also hasten the deportation of aliens who have committed crimes in the United States. Legislation such as this never addresses the reasons why migrants are crossing the border and is a direct reflection of the definition of immigration upheld by the US government.

Crime remains a serious problem along the border; besides violence and drug trafficking, bandits prey on immigrants as they venture into the mountains. The Border Patrol is in a precarious situation to uphold its primary mandate, which is to work in cooperation with other agencies in a mutually beneficial spirit to secure America's borders. They are the front-line in a mission to regain control of America's borders. While there is little evidence indicating that the majority of those crossing the border are involved in such criminal activities, defining the problem remains key to how it will be dealt with and solved.

Push/Pull Factors of Labor Migration

This bi-national metropolis has close economic ties, which have translated to personal and social ties as well as people live and work on both sides of the international divide. Between this divide, a de facto international labor market has emerged, responding to the demand for cheap labor in the United States and a surplus labor supply in Mexico, especially along the border in Tijuana County.

The people who are building this region as a bi-national city are not arguing for open borders. But people have sort of foolishly overlooked the grand thing that is happening at this border in order to be preoccupied with the short-term political gains from arguing about illegal immigration and smuggling.

Charles Nathanson, director of San Diego Dialogue, alludes here to the central complexity of the immigration debate in a nation that increasingly welcomes the internationalization of its economy, but not necessarily of its population. Herein lies the contradiction. Interdependent markets are the result of globalization, increased trade and economic integration; the labor market responds accordingly. As a direct result of the dramatic rise of the service industry, there is a real demand for cheap labor in the US This cross-border flow of labor between the US and Mexico has a long history of interdependence. With every US expansion and recession, Mexican workers were alternately welcomed and rejected, depending on the labor needs of the US.

Jorge Bustamante, a senior scholar and expert on immigration, has alluded to this interdependency and emphasizes the circular patterns of migration outlined above. He has identified various push and pull factors in both the United States and Mexico which convince a migrant to attempt to cross the border. This goes beyond the simple idea that if the Mexican economy is in poor shape, then more people will try to cross the border. He, along with other scholars looking at immigration issues, recognize that there are factors within the US which compel many to attempt and cross the border; thus the push-pull phenomenon. The pull factors are those which create demand for immigrant labor in the US; such as cheap labor for sweatshops, housework, yardwork, agricultural work (often seasonal), etc. Employers use illegal immigrant labor because they don't have to pay minimum wage or provide benefits, contributing to these pull factors. Push factors are those within Mexico which compel an individual to leave, especially lack of work and low wages compared to those in the US. Any immigration policy must take these factors into account to effectively confront the problem. This allows us to more accurately view illegal immigration as an economic and labor-related phenomenon and then begin to address problems such as low wages for immigrants. Asymmetry is again a key issue since the greater the wage difference between the two countries, the greater incentive exists to leave and look for work in the US As a Mexican student in a New York Times article bluntly states: "I do think the US is better than here [Mexico]. . . There, a worker earns $5 an hour. Here we earn $5 a day. This is a big difference."

Many feel that NAFTA will curb illegal immigration as the economic situation improves in Mexico, thus minimizing some of the push factors. Yet even those migration specialists who argue that the trade pact will likely help curb illegal immigration in the long term due to NAFTA-induced economic development in Mexico concede that NAFTA will probably stimulate more migration in the short and medium term. Besides increased internal migration to the northern Mexico border and thus into southern California, this is due primarily to displacement as a result of economic restructuring, especially in rural and agricultural sectors in Mexico.

Not only does economic liberalization end up fueling migration, but exporting part of the country's growing unemployment burden provides an important cushion for the Mexican government as it carries out its economic reform program and struggles to recover from the devastating economic crisis sparked by the collapse of the peso...Some estimate that one-fifth of the total Mexican workforce is employed in the United States. Remittances from Mexican immigrants total an estimated $3 billion annually, making them one of the country's leading sources of revenue.

These linkages are important to take into consideration when exploring labor migration.

As it stands now, the predominant view in the US is that undocumented immigrants from Mexico have a negative effect on the American people. Contradictory policies have perpetuated misconceptions and stereotypes, along with exploiting Mexican labor. Workers feel threatened and many in southern California believe such undocumented immigrants put extra burden on already strained social services. A 70-year old retired American worker states his opinion in a poll on attitudes between the two countries; "Mexicans seem to get the most out of it. They're taking our companies and our jobs, so it seems they're coming out ahead [in reference to NAFTA]." However, little real evidence exists to support these attitudes beyond political rhetoric. All sources have shown that NAFTA has had little net impact on labor, in terms of jobs lost and gained in the San Diego-Tijuana region. Rather, an Economic Report to the President, 1986 stated that undocumented immigrants result in more benefits than costs for the US economy. The labor they provide is often in low-skilled and low-paying jobs American workers are reluctant to fulfill, yet the work is extremely important to the economy.

The economies of the San Diego-Tijuana region are highly interdependent and have been for a long time. Global competition, along with economic interdependency, has produced the various push/pull factors which lead to illegal immigration. As cross-border trade and production increases under NAFTA, so will cross-border flows of labor in response to labor needs in the US. Prevailing anti-immigration attitudes, which ignore this interdependence and fail to incorporate the grander picture have culminated in legislation such as Proposition 187, sponsored by California Governor Pete Wilson. This anti-immigration legislature was intended to ban social services to undocumented immigrants, but instead has fueled racist discrimination towards the thousands of legal immigrants who live and work in California. Such attitudes and citizen concerns have been seized by politicians. A June Republican National Committee television spot run primarily in California showed a border crossing marked "Mexico" and then panned to footage of brown-skinned people, presumably illegal immigrants, scurrying under the glare of spotlights. Continuing, the spot declared that "under President Clinton, spending on illegals has gone up, while wages for the typical worker have gone down." Such representations of undocumented immigration ignore the entire economic and labor-related dynamics behind this process- the push/pull factors, and instead frame the issue in terms of a criminal threat, never taking basic economics into consideration.

When border patrol agents were added to the force is San Diego last year, there was a round of protest from Mexico and human rights activists along the border. "The United States wants Mexico to cooperate on the drug problem, on the North American Free Trade Agreement amd on other issues, so it's hard to understand why they don't want to do so on this issue, " according to Roberto Martinez of the American Friends Service Committee, an immigrant rights groups based in San Diego. Similarly, a legislator from the Mexican state of Guanajuato feels "You have to respect every nation's right to control its borders. But in the name of maintaining good relations with a neighbor whom you have strong cultural and trade ties, there should have been an exchange of viewpopints between the two nations." This lack of an exchange can be seen as an example of the asymmetry between the two countries. If the United States were to accept the definition of undocumented immigration as a labor-related phenomenon rather than a crime-related phenomenon, the cost of labor would increase. But the US does not have to do that and the asymmetry of power is one reason why. Harold Ezell, a former INS official during the Reagen administration and co-author of Proposition 187 believes the Clinton administration has been too soft with Mexico on the immigration issue: "We ought to put the military that we sent to Bosnia down there on the border." This task force sees little advantage gained by transforming the US- Mexico border into a war zone. Instead, the way the issue is perceived and defined must encompass the economic and labor-related dynamics laid out here before discussion can begin in the true spirit of cooperation that is being encouraged along the border. As a more comprehensive understanding of immigration is embraced, policy can be developed which more effectively addresses the issue in its entirety and the problems which have persisted as illegal immigration continues. Most importantly, the push factors within the US must be addressed, by possisbly raising and enforcing labor standards and work conditions in the US to make it harder to exploit immigrant labor. This will allow for balanced regional development along social and economic lines.

CONCLUSION

San Diego-Tijuana is a dynamic region with phenomenal potential. Interdependency exists and is being encouraged through economic integration that entails less hinderance to the flow of capital and encouragment of trade and investment on both sides of the border. Job growth, the continued expansion of maquiladoras, and the recognition that growth on each side of the border is dependent upon the prosperity of the entire region have all increased under NAFTA. The poor neighbor to the south is now the other side of town for San Diego, and a bi-national metropolis is emerging. NAFTA has been an important element of this process, for although it didn't catalyze regional interdependence, it has consolidated the perception on both sides of the border that the future of both San Diego and Tijuana are inevitably intertwined. NAFTA, globalization, and free trade are here to stay, and there must be a renewed committment to make the growth it has facilitated more sustainable and to bring the social dimension of free trade into the picture. If this is not done, the region will not realize its potential as a global player. Growth has already surpassed existing infrastructure and immigration continues to be a problem, linked to issues such as assymmetry and wage disparity between the US and Mexico. It will not be resolved and will continue as a divisive force in the region unless it is directly addressed.

Cooperation among governments of southern California and Baja California is not new, it has just been evolving into more formalized working arrangements. In 1993, Susan Golding, Mayor of San Diego and Hector Osuna Jaime, Mayor of Tijuana signed a letter of agreement for bi-national planning and coordination. This represented an unprecedented partnership and is an attempt to facilitate the development of new relationships, while also standing as a commitment to increased cooperation as well as testimony of increasing regional interdependency.

Under the leadershp of the Mayors of San Diego and Tijuana, officials have for the first time begun developing workplans and cooperative initiatives on the priority regional issues of land planning and urban development; solid waste management and recycling; wastewater and water management; emergency response to both public safety and environmental calamity and economic development. In addition, cultural and recreational programs to encourage interaction and increased understanding of the ties between San Diego and Tijuana are being initiated. This unique effort has helped blur the line of the border as an obstacle to regional cooperation...

In July 1996, this agreement was expanded to include cooperation in areas of mutual interest such as land use planning and transportation. One of the more interesting mandates in the partnership plan is the goal of promoting the San Diego-Tijuana region as the gateway to Asia and Latin America, as well as the information hub for NAFTA. In addition to this formal agreement between the regional governments, numerous NGOs have flourished in the area and a variety of business committes have formed to encourage trade.

The long-term and sustainable success of such regional integration rests upon cooperation, regionally and also at the federal level. Even while there are increasing efforts toward facilitating such cooperation, issues such as immigration remain because the US has treated the issue as separate, when in reality, it is embedded in the regional dynamics of the San Diego-Tijuana region and the larger processes behind free trade. While infrastructure needs are obvious, undocumented immigration is more complex and has a more emotional and political dimension. The reality is, family and social ties span the invisible divide as well as cultural influences which shape individual identities. The border exists and won't disappear, but people's perception and relationship to it is changing in response to the regional changes ocurring around them. This chapter has demonstrated both regional interdependency and numerous trans-border problems that plague the area. If long-term growth and prosperity are sought for the San Diego-Tijuana region, these problems must be addressed.