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Silang
Conference Executive Summary
A CONFERENCE ON PROGRAMS TO HARNESS THE RESOURCES OF
OVERSEAS FILIPINOS FOR THE DEVELOPMENT OF LOCAL
ECONOMIES
JULY 16 – 18, 2003 Silang, Cavite
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DAY 0: 16 JULY 2003
A.
Registration of Participants ( 5:00 to 7:00 PM )
B. Welcome Dinner ( 7:00 PM )
DAY
1: 17 JULY 2003
A.
Continuation of Registration ( 7:00 to 7:30 AM )
B. Arrival of the Conference Keynote Speaker,
Honorable Teofisto T. Guingona, Vice-President of the
Republic of the Philippines.
C. Welcome Ceremonies; Singing of the National
Anthem of the Republic of the Philippines; Ecumenical
Invocation.
D. Welcome Remarks by Honorable Ruben M.
Madlangsakay, Mayor of the Municipality of Silang,
Province of Cavite.
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Mayor Madlangsakay
acknowledged the critical role played by the local government,
particularly the local police and the barangay officials & personnel in
ensuring peace and order in the community which created a favorable
climate for business. He commended the conference organizers for
focusing on directing Overseas Filipinos investments and savings to the
development of local / rural economies. The objective of the conference,
he adds, which is to explore programs to assist the Overseas Filipino
Workers (OFWs) in harnessing their resources (i.e., to save and invest
in the rural areas where they come from) is of vital importance as the
safety nets provided by the national government are very narrow.
E. Introduction of the Keynote Speaker by Victor M. Arguelles,
Member of the Board of Trustees, ERCOF Philippines.
Mr. Arguelles characterized the Keynote Speaker as a fighter all
throughout his life as a public servant, who fought against the
oppressors in defense of human rights during the Martial Law years of
the Philippines and who was in the forefront until the people power
struggle of EDSA 1; he also fought against graft and corruption in
government; and has now trained his sights against the inequities of
globalization.
F. Keynote Address of Honorable Teofisto T. Guingona,
Vice-President of the Republic of the Philippines.
The Vice-President
recognized the members of the Board of Trustees of ERCOF Philippines and
the other luminaries who were present in the Conference. He underscored
the vital contribution of the 8 million Overseas Filipinos, who are
scattered in at least 150 countries worldwide, in preventing negative
growth of the Philippine national economy. He estimates that their
collective annual remittance reached $8 billion dollars, which figure
that would likely be double if we include the remittances that do not
pass the formal banking channels. As of the 1st Quarter of 2003,
overseas remittances powered the 23% growth in the net income from
abroad and fuelled the 4.9% growth in personal consumption. While they
do not work here, OFWs generate employment by their investment in micro
enterprises, which compose 90% of the country’s industry sector. These
small and medium enterprises employ 20% of the Philippines labor force.
Our expression of gratitude for this invaluable contribution of our
migrants workers must go beyond words and encouragement but also through
programs and projects, which will benefit them and their families, the
Vice-President emphasized.
Before we harness OFWs resources, we should gear them towards
competitiveness and greater capacities, he adds. By doing so, they can
do more for themselves and for their communities.
He enumerated the various programs for the welfare of OFWs, which he
initiated during his stint as the Secretary of Foreign Affairs:
1. Seafarers Program
This is the establishment of a one-stop shop for seafarers that made
available to them education and livelihood modules as well as housing
satellite offices of different manning agencies that will facilitate
their employment and travel abroad.
2. OFW Housing Program
A housing program that will make use of government lands for the housing
needs of OFWs and government workers, which will be more affordable, and
with a longer amortization period.
3. Overseas Filipinos Investment Bonds.
A savings vehicle that will pay a higher interest rate than time
deposits in commercial banks and with bonds denominated at US $ 100.00
each. OFWs will be asked to donate a portion of their proceeds for
social services that will benefit migrants such as legal consultations,
services of social workers, discounted health insurance and skills
upgrading.
4. Absentee Voting Law
This will, for the first time, allow OFWs the right to vote leaders to
public service. If they are able to organize themselves, they will be in
a position to influence policies, both national and local.
Lastly, the Vice-President informed the participants of the potential
impact of the forthcoming WTO Conference in Cancun, which may discuss
opening up access of labor across borders and allowing foreigners to be
treated equally with locals in certain professions. He cautioned against
making rush decisions that will disadvantage the country and threaten
certain professions because of technological and skill advantage of
foreigners.
G. Photo Opportunity with the Vice-President / Departure
H. Self Introduction of the Participants
I. Video Film Show: Voices of Overseas Filipinos.
SESSION 1: Migration
and Development and the Potential of Remittances
J. Objectives of the Conference presented by Atty. Ding F.
Bagasao, Chair, ERCOF Philippines.
Ding Bagasao
emphasized that the Conference intends to explore how the country and
its people could reap the benefits of migration. He cited the potential
available from the efforts of 8 million overseas Filipinos living and
working in various capacities in about 193 countries worldwide. While
remittances amounting to 7 billion or more US dollars annually have
helped millions of families to survive and benefited the Philippine
government by enabling the national economy from falling into
bankruptcy, certain gut questions have to be answered: How long will
these labor markets exist? Are we prepared to handle our overseas
workers who are forced to return because of growing restrictions of host
countries due to economic recession, nationalization of labor programs,
and other factors? How long will we allow families have to live apart?
Are we going to be eternally dependent on foreign labor markets for our
national economy’s sustainability? Have we lost our ability to believe
in ourselves or in our capacity to be self-sufficient?
The Davao Conference of 2002 or Ercof 1 surfaced limited public
awareness of the development potential of remittances and even lesser
knowledge of how this could be done. That conference ended with the
participants committing themselves. As it appears in the Conference
Statement, to integrate a migrant economic agenda into their work and
vowed to turn into a movement the concept of migration for development.
A technical working group composed of representatives from the five
sectors that attended the conference was convened to carryout this plan.
There is now a need to study, offer and implement concrete mechanisms
and systems that could lead to the strategic use of migrant resources
that may jumpstart local development. This is what Ercof 2 will offer.
Why do we believe that LGUs should be an active stakeholder in this
scheme? Because we believe that the core of local economy development is
community or lgu-based. Improvements in the economic situation in the
lgu level will redound to the benefit of the national economy.
This Conference or Ercof 2 has the following as its objectives:
1. Study and propose mechanisms towards the strategic use of migrant
resources for local development.
2. Sharing of existing practices through presentation of case studies.
3. Share OFW organizations needs regarding the utilization of resources.
4. Surface the reaction of the Department of Interior and Local
Government regarding the utilization of migrant resources and
investments for local development.
5. Brainstorm on available mechanisms for self-sufficiency of
beneficiaries.
6. Hear from presentors what are possible mechanisms to enable migrant
resources to impact on local economies.
K. “Making Use of the Four Resources of Migration for Developing
the Philippine Economy” presented by Mr. Neil G. Ruiz, Ph.D. Candidate
in Political Economy, Massachusetts Institute of Technology.
Mr. Ruiz expressed great interest for the purpose of the Conference, as
he himself is a product of Filipino parents who decided to migrate to
the United States. He gave the participants an overview of his
presentation by enumerating the 3 main questions that he hopes to
answer, that is;
a. What are the four
resources of migration?
b. How are the various governments, NGOs and private networks around
the world dealing with these four resources?
c. How can these resources be used for development?
The four resources of
migration can be divided into 2 main groups: Resources of the Migrant
and Resources of the Sending Country.
The first resource of migrants is Remittances which benefit the sending
country’s economy through influx of much needed foreign exchange. For
the migrant’s family, this means a steady flow of income for their
day-to-day requirements and a possible surplus that may be used for
investment purposes. In turn these benefits the local community in the
form of capital for new businesses and development projects. The
Philippines is the third highest recipient of remittances from its
migrants, next only to India and Mexico (based on 2000 IMF data). For
the same year, remittances constituted almost 10% of the country’s Gross
Domestic Product.
The second resource of migrants is themselves when they Return. In an
ideal setting, this will mean making use of the new skills they have
acquired abroad and the business networks they have developed in favor
of the local economy. However, if most of the sending country’s migrants
belong to the unskilled category, this may result into difficulties as
there may be no jobs available as well as social and familial problems
arising from joblessness. Recruitment, the third resource, is equally
beneficial for the sending country as it decreases the unemployment rate
and stabilizes wages in the domestic labor market. For receiving
countries, this provides them relief from labor shortages as well as
acquiring a labor pool of migrants who are willing to do jobs that are
“undesirable” to locals. The fourth resource is that migration surfaces
the need for Representation, for the migrants voice in both sending and
receiving countries and the imperative to have them participate in the
formulation of national policies through the exercise of the right to
suffrage.
The capture and full utilization of these four resources of migration
require a conscious effort at building linkages between the different
agents: Migrants; Sending Government; NGOs & other Advocacy Groups;
Private Industries; Venture Capitalists; and members of the Academe.
L. “Remittance Situationer and Analysis” presented by Dr. Roberto
de Vera, Director, Regional Strategies Group, University of Asia and the
Pacific.
Dr. de Vera emphasized two main points: (1) That we should take care of
our OFWs, they are our most important resource, and not to reduce them
to simply a source of foreign currency. There must be an effort to help
them develop a culture of savings (for migrants and their dependents),
for them to realize not to splurge their earnings into consumer goods.
(2) A national approach in analyzing remittance and spending patterns
may not be effective for data indicates variances in regional markets.
He stated that the Philippines is in the verge of a demographic dividend
(“balato”) or payback period where the labor force is growing faster
than child and elderly dependents. Statistics presented indicate that
our population will increase by 32.8 million by the year 2020, and of
this figure 22.8 M will be joining the labor force as against 6.2
million child dependents & 3.8-M elderly dependents. In other words, for
every 100 persons that become dependents, there will be 227 possible
workers to support these dependents. Thus there is an urgent task for
the private sector, LGUs and NGOs is to help these 32.8-M workers-to-be
find good jobs.
He likewise presented the following OFW demographics: 17.4% of our
country’s Households (HH) have at least 1 OFW; Based on 2000 statistics,
these OFW HH spent PHP 460 Billion; 64 % of these OFW HH are located in
urban areas & 36% in rural areas; in terms of educational attainment,
59% of our OFWs are below high school, 24% are hs graduates and 17% are
college graduates. However, recent trends in the international labor
market indicate that there is a growing demand more skilled occupations
(such as nursing, caregiving & the teaching profession) which will
require higher level educational backgrounds. In terms of regional
breakdowns, OFW HHs in the NCR region were the highest spenders (33.2%)
followed by Southern Tagalog (18.3%) and Central Luzon (11.5%);
M. “Potentials of OFW and LGU Partnership and Counterparting
Programs on Local Development” presented by Honorable Austere Panadero,
Asst. Secretary of the Department of Interior and Local Government.
In response to the conference organizer’s invitation seeking to elicit
the department’s thoughts on how LGUs can be stakeholders in a
partnership with OFWs, he emphasized that local economic development is
now the strategic concern of a growing number of LGUs. He also expressed
his elation over the fact that the conference is now talking of OFW
involvement in the development of the local economy, a dramatic change
from previous years’ experiences where OFW contributions were allocated
to small projects such as building of waiting sheds or welcome arcs.
Where can OFWs help? He focused on the issue of water access and
distribution. There are a big number of municipalities now laboring
under the problem of access to potable water. This is a potentially
viable investment area for OFWs as water districts need infusion of
capital in order to expand the infrastructure is already existing.
Another area is livelihood projects were there are already existing
partnerships among LGUs, NGOs, MFIs and commercial banks in certain
cases. This is not solely about financing but also involves building
infrastructure to develop skills. Thus, OFWs may consider investing in
the PCFC; bond floatation’s; and the municipal development fund which is
handled by the Department of Finance. The recent legislation, the
Barangay Micro Enterprise Law (BMBE) involves an effort of several
government agencies (Dept. of Agriculture, Dept. of Science and
Technology, and with Dept. of Trade & Industry, as the lead agency) are
looking into viable enterprises, identifying commodities and common
programs concerning products. Presently, they have identified 2 major
products: coconut & aquamarine as viable commodities.
N. Lunch Break
SESSION II: Harnessing Remittances for Local Development (Case
Studies)
Non-Government Organizations (NGOs)
O. The Unlad-Kabayan Migrant Services, Inc. Experience presented
by Ms. May-an Villalba, Executive Director.
The organization was established in 1994 as a program of the Asian
Migrant Center, and NGO based in Hong Kong. After years of organizing
migrants and providing various services to help them cope with their
problems, the AMC realized that the long-term solution to migration is:
(a) savings mobilization among migrant workers, and (b) building
alternative investments at home. This reintegration scheme is to prepare
migrant workers for their eventual return and at the same time create
small enterprises at home. These small business enterprises will help
create new jobs for migrants’ families and communities, and eventually
for themselves should their contract be terminated suddenly. This
program was set up in the Philippines in 1996 and has become a model for
other labor sending countries. The twin strategies adopted by Unlad
Kabayan are: Migrant Savings for Alternative Investments (MS-AI) and
Social Entrepreneurship and Entrepreneurs Development Services (SEEDS).
The organization’s programs: Savings and Investment Generation,
Enterprise Development and Advocacy are geared towards the economic
empowerment of migrants of migrants and their families which starts with
a paradigm shift from reliance on remittances to entrepreneurship which
will pave the way for the migrant to transform himself/herself from an
employee to a job provider.
P. The Atikha/Balikkabayani Experience presented by Ms. Mai
Anonuevo, Executive Director.
The term “atikha” is a local term meaning “the gradual accumulation of
an amount by saving” while “balikabayani” refers to a person in the act
of returning to his country for a vacation or for good. The organization
adopted these local terms, as they were appropriate to the objectives of
the organization, which are:
(a) to decrease the
dependency of the families of OFWs on migrant savings,
(b) to provide services for OFWs and their families,
(c) to assist in capital build-up of OFWs and create economic
opportunities for OFW returnees, their families and communities, and,
(d) to increase self-reliance of Atikha.
The organization
adopted a twin-pronged strategy consisting of: (1) a convergence
initiative for an integrated OFW reintegration in a pilot area, and (2)
the setting up a national reintegration program with other stakeholders
and replication of the pilot experience.
Overseas Filipino Workers (OFWs)
Q. The Samal Island Integrated Mariculture Project presented by
Mr. Ramon Naguita of SIFDC/SIFOWDEMCO.
The Samal Island Overseas Filipinos & Dependents Multi-Purpose
Cooperative mariculture project involves the raising of mud crabs in
Brgy. Balet, Samal Island. This is a cooperative effort among the
following partners: SIFOWDEMCO, the Federation of Overseas Filipino
Workers of Region 11 (composed of 33 groups), the Brgy. Balet fisherfolk,
the LGU of Samal Island, the Davao Del Norte State College, and the
Overseas Filipinos Worldwide Investment and Management Corporation
(represented by Tonnette Binsol). This project is a concrete example of
the type of partnership that the conference promotes which will benefit
the local economy of Samal Island including its small farmers and
fisherfolk.
R. FARMCOOP Experience presented by Atty. Koronado Apuzen.
The Foundation for Agrarian Reform Beneficiaries Cooperatives in
Mindanao is a social development organization committed to provide
agrarian reform beneficiaries, small farmers and indigenous peoples
cooperatives and associations effective support services for sustainable
agriculture, market linkage, technological advancement, among others.
They have organized and empowered exploited cooperatives of agrarian
reform beneficiaries and small farmers in the banana industry resulting
into the abrogation of onerous contracts with multinational corporations
and helped them manage their own farms. The result of this initiative
changed the situation of these small farmers from poverty to economic
bounty. The cooperatives them formed FEDCO (Federation of Agrarian
Reform Beneficiaries Banana Based Cooperatives of Davao) for the
following purposes: (1) bulk buying of farm inputs to sell to coops at a
cheaper price, (2) direct trading and marketing of bananas not committed
to corporate growers and multinational corporations, and (3) the
production of plastic used in the growing and packaging of bananas.
FEDCO then entered into a joint venture with a Japanese corporation and
formed MOVE (Mindanao Organic Ventures Enterprises) which was
responsible for the export and international marketing of bananas.
Atty. Apuzen encouraged OFWs to invest in the banana industry the market
for the product has been increasing over the years. He also laid-out the
economics of investing in the industry. He likewise cited the
opportunities presented by herbal medicine, primarily, sambong and
presented the potential income of investing in this area.
S. Break
T. Fil-IT / Overseas Filipinos Worldwide Investment & Management
Corporation presented by Ms. Tonette Binsol.
Tonette introduced herself as a member of FIL-IT, a network of Filipinos
connected through the Internet. From this cyberspace network and after
meeting with Mon Naguita on the occasion of the Ercof conference in
Davao, was born the OFWIMC, founded on the concept of e-trust. The
organization was able to raise 10 million pesos for investment in the
Samal Island Mariculture Project. From an initial discussion group of
about 100 individuals/investor, OFWIMC now stands as a SEC registered
corporation composed of overseas Filipinos who share the vision of
investing their savings in local economic projects. This is a concrete
example of the Filipino trust for each other despite the fact that their
members have not seen each other physically nor have met together as a
group other than communicating with each other on cyberspace. The group
is now looking into other economic opportunities for investment.
U. WORKSHOP 1
The participants were divided into smaller groups of around 10 to 12
persons to discuss and present in plenary their conclusions on the
following questions:
• Based on your own
experiences, what are the existing practices/linkages/forms of
cooperation between and among the OFW-LGU-NGO-Media-Academe-Financial
Institutions in harnessing remittances/resources for local
development/local economy. Are there other stakeholders that have
cooperation with OFWs in harnessing remittances and resources?
• What are the needs/concerns/issues arising from such practices?
• What steps/measures have been taken to address these needs and
concerns? Are there other recommendations to address these?
DAY 2: 18 JULY 2003
A.
Recap/Synthesis of the Previous Day
See the Synthesis document attached herein as ANNEX “A”.
B. Plenary (Presentation of Outputs of Workshop 1)
See the Summary and the Group Outputs attached herein as ANNEXES “B” and
“C”.
SESSION III: Mechanisms to Maximize Migrant Remittances
C. “Overseas Filipino Savings and Investments in Microfinance”
presented by Mr. Josaias T. Dela Cruz, President and Chief Operating
Officer, Opportunity Microfinance Bank
The presentation consisted of 2 major parts. The first part dealt with
the question: What is the role of microfinance in the development of the
local economy?
The first portion discussed the general principles of microfinance.
Microfinance is the provision of a broad range of financial services
(deposits, loans, payment services, money transfer & insurance products)
to the poor & low-income households and their microenterprises. The
clients of microfinance are the economically active and entrepreneurial
poor (e-poor). These clients have a stable economic activity in the
informal sector and will be able to sustain and enhance that activity if
they are provided with even a small amount of readily available funds.
These micro entrepreneurs are the basic unit of the local economy.
What are the principles of microfinance?
1. The poor need
sustained access to financial services & products.
2. The poor have the capacity to pay (repayment rate is 98%) and to
save.
3. Microfinance institutions can be operationally and financially
self-sufficient.
The objective of
microfinance is to start the poor interested in small livelihood
activities or microenterprises then graduate them to bigger businesses.
This will help create employment and money generated will go to help out
other entrepreneurial activities. Thus, microfinance is the oil that
greases the economy.
APPEND or the Alliance of Philippine Partners in Enterprise Development,
Inc., is the first and most recognized network of microfinance
organizations in the Philippines with 10 affiliated NGOs and one thrift
bank. It has 99 outreach areas in 53 provinces nationwide. As a network
organization, it provides its members: training and technical assistance
for institution building, leadership training and development, bridging
loans, and monitoring & supervision of project grants.
What then is the role of the Overseas Filipinos in the development of
the local economy?
Overseas Filipinos(OFS) should be encouraged not only to send
remittances for consumption purposes but to send a portion of their
remittance as capital for small and medium enterprises.
This conference highlights the opportunity for OFs to invest in
microfinance, as MFIs (microfinance institutions) have proven successful
operations can be ran sustainably and that it can generate revenue and
even profit. It is hoped that the private market would be attracted to
saving or investing in MFIs through their demonstration of financial
profitability while simultaneously alleviating the plight of the poor.
Estimated market demand for microfinance is enormous. The market becomes
larger if unemployment increases and more people become self-employed.
OFs can look to Opportunity Microfinance Bank (OMB) as a channel for
savings and investments. The OF can consider the option of being a
Kabalikat Depositor with OMB and their deposits will be directed
single-mindedly to microfinance development. Every Php 5,000.00 deposit
that stays with the bank will enable another family to rise out of
poverty by the funding of a microenterprise activity, aside of course,
from the deposit earning interest. Other mechanisms that OFs may avail
of are remitting money through OMB (an accredited agent of Uniteller)
and/or investing in OMB preferred shares for various capitalization for
greater outreach and expansion.
A partnership is now being forged between ERCOF and APPEND, that will
provide a mechanism for channeling investment dollars of Overseas
Filipinos to support microfinance while at the same time providing a
good return. This mechanism is inspired by the Thembani International
Guarantee Fund, which is a newly created financial vehicle through which
South Africa’s overseas investors can participate in building up the
economic structure that supports the country’s nascent political
democracy.
D. “The MILAMDEC Microfinance Experience” presented by Fr. Terry
Barcelon S.J., Executive Director, Milamdec Foundation, Xavier
University.
Fr. Barcelon presented a profile of the potential client base for
microfinance operations. This is 40% of the Philippine population living
in poverty which translates into 6 to 8 million families who are in need
of the following services: credit facilities, savings services &
insurance (loans, death, health). In an effort to cope with their
situation, the poor operate microenterprises as a source of livelihood,
which is characterized by a cycle involving production, marketing-sales,
and collection. Microfinance provides these entrepreneurial poor with
access to credit without need of collateral with weekly collections
involving small and affordable amounts. To insure payment, the
institution applies the principle of TDK – tutok, dikit, at kulit.
MILAMDEC, Northern Mindanao has at present 14,000 members organized into
14 branches. Its average collection rate for the past 11 years (1992 –
2003) is 94%. Milamdec has just recently received its certificate from
the BSP to operate a rural bank. This opens new avenues as it will allow
them to avail of loan facility from BSP as well as receive money as
deposits. The Milamdec experience has belied the following myths:
a. The poor do not
pay loans.
b. Filipinos cannot unite or cooperate.
c. Filipinos do not look long range.
E. “The Abra
Overseas Filipino Workers Center” presented by the first lady Mayor of
Bangued, Abra the Honorable Zita Valera.
The Abra Overseas Filipino Workers Center was established by virtue of a
provincial board resolution and was opened in 1997. It is the only local
government initiated provincial-based program and is guided by providing
a host of services to OFWs and their families before, during and after
their deployment for work abroad. Some of the services provided by the
Center include:
1. Information
campaigns geared towards orienting province mates who are seriously
considering foreign employment about the do’s and don’t’s of overseas
employment, and even providing them with a primer to guide them while
in a foreign land.
2. Ensure the legitimacy of placement and recruitment agencies by
ensuring that they are accredited with the Philippine Overseas
Employment Administration.
3. Provide free legal assistance; provide free phone calls during
emergencies.
4. Coordinate with the DFA, Consular Offices abroad, and foreign NGOs
(such as CARAM Asia), whenever there is an Abranian abroad who is in
trouble and is in need of assistance.
5. They maintain a directory of Abranians who are OFWs and maintain a
province wide coordinative network consisting of municipal
coordinators who can facilitate the provision of notice and
information to OFW families in cases of emergencies.
The Center became a
personal commitment on the part of the speaker after her May 1997 visit
of Hong Kong to grace a celebration of the Abranians working there. The
occasion turned into one of grief when they received the news of a
province mate who fell from the 4th floor of the residential apartment
she was working in and was declared dead. The OFW concerned just arrived
in Hong Kong 4 days before the incident. The Mayor, then the Governor of
Abra, came to the realization that most of the OFWs hide their real face
and situation behind a smiling mask, a face that spoke of loneliness,
despair and helplessness. She then resolved to put up the Center as a
tribute to the new day heroes.
OFWs and their families represent a big sector in the provincial
population: 15,000 OFWs. If this number is multiplied by 5 (the average
number of members of a Filipino family), this means 75,000 of the
200,000 population of Abra are OFWs & dependents. In terms of monthly
remittances, these OFWs remit an average of 50 million pesos (based on a
survey made with the participation of the 4 commercial banks located in
Bangued).
The Mayor hopes that in time this cycle of labor export will stop but
realizes that this may not come to pass if the local economy will not be
able to provide gainful employment to OFWs and their family members.
They have seen a pattern of family members (mostly women) pursuing the
same course of overseas employment because o the inability to save and
invest in productive forms of livelihood. Because of these, she has
considered the issuance of an OFW bond that will spur a savings culture
and provide the returning OFWs with entrepreneurial capital upon
maturity. The revenue generated from this bond float can be invested by
the municipality into income generating activities and structures.
She expressed her elation for the invitation by Ercof which linked her
to participants that share her commitment and dream to improve the lives
of our OFWs and their families.
F. “Developing Market Linkages” presented by Mr. Victor Tanchoco,
Trustee, ERCOF Philippines
Mr. Tanchoco’s presentation is descriptive of the potential of
converting Overseas Filipinos (OFs) from the traditional role of
remitters of foreign currency to their respective families for
consumption purposes (estimated at 80% of amount remitted) into
entrepreneurs engaged in the buying and selling foreign and local
products.
OF families regularly purchase products for consumption, products which
are also available in the country’s where their OF family member is
currently working/residing. The local costs of these products in the
retail market are generally higher than in the foreign countries where
these products or its equivalent can be found. Mr. Tanchoco proposes OF
take the role as buyers of these consumables for export into the
Philippines. He estimates that this alternative will result into
consumption savings of up to Php 3 billion. Reduced consumption expenses
will result into increased income and investment capital for OF
families. This savings/investment capital can then be invested in a
provincial level distribution center to enhance market traffic with
barangay-based retail outlets.
Mr. Tanchoco goes further and proposes to make use of this distribution
mechanism/network to transform OFs into entrepreneurs in their host
countries selling Philippine products. Concretely, barangay outlets can
assume the role of purchasers of specific locally produced items, which
would then be housed or stocked in the facilities of the provincial
level distribution centers. These products can then be exported to the
foreign countries where OFs are based for retail selling. This will
result into increase foreign currency income of OFs that can be pooled
into an investible fund for allocation into local business
opportunities, including the further enhancement of the operations of
distribution centers.
G. Break
H. “Programs of the World Bank on Countryside Development”
presented by Mr. Raul Gonzalez, Participation Specialist.
Mr. Gonzalez talked about the Country Assistance Strategy of the Bank
for the years 200 – 2005. This strategy is focused on: (a) helping
governments re-establish rapid and sustained poverty reducing growth,
and (b) ensure that the poor participate in the benefit fully from
development. Development herein refers to community-driven development (CDD)
which is characterized by the active involvement by communities in the
design, implementation and management of projects. The speaker admits
that it has taken the Bank several decades to adopt the development
framework approach used by NGOs since the very beginning. Now fifty
percent of the World Bank’s Philippine Program is CDD.
What are the basic premises of community-driven development?
1. Development is
more likely to be effective and sustaining when communities are
actively engaged in the activities that affect them.
2. By responding to their priorities, communities will be more
committed to the development activity, more willing to maintain the
assets created and better able, over time, to direct their own future.
3. Communities that feel empowered will be better able to demand
effective and transparent services from their local governments.
Major characteristics
of Community-Driven Projects:
1. The focus is on
the poorest local government units and communities, selected by
objective (not political) criteria.
2. Participation is demand driven.
3. Sub-project selection is bottom-up: sub-projects financed are
proposed by communities themselves.
4. Selection of sub-projects is based on a menu of options, ranging
from an open-menu to a more limited menu.
5. There is cost-sharing by the communities themselves and local
governments.
Mr. Gonzalez identified
a specific 5-year CDD Project: the KALAHI – CIDSS (Kapit-Bisig Laban sa
Kahirapan - Comprehensive and Integrated Delivery of Support Services:
Kapangyarihan at Kaunlaran sa Barangay). The objectives of the Project
are: (a) to empower Communities, (b) improve local governance and
people’s access to their government, and (c) support community
investment projects through the provision of seed funds. The Project
components include; social preparation, capacity building &
implementation support, community grants and monitoring & evaluation.
The Project beneficiaries will be all barangays in the poorest 25%
municipalities in the poorest 40 provinces in the country.
The significant results of the Barangay projects in Dolores, Quezon
indicate that:
1. Estimated economic
internal rate of return is between 17% and 53%, (which is very high by
WB standards).
2. Despite high quality, construction costs are estimated at 2 – 3
times less than the standard GOP construction costs.
3. Generated construction jobs for 72 local people.
4. Trained over 150 local volunteers who will serve as a pool of
future leaders in Dolores.
5. Amount of local contributors is almost equal to funds provided by
the Project.
I. “Overseas
Filipino Trust Fund” presented by Dr. Sixto K. Roxas, Chair, Maximo T.
Kalaw Institute for Sustainable Development and Preferred Ventures.
Dr. Roxas admits that he comes into this Conference wearing two hats.
Firstly, he works with the Office of the Vice-President of the
Philippines, in particular, as a consultant to the “Para sa Bayan"
Program. This Program promotes an economic perspective predicated on the
belief that development is the concern of the local community (defined
as the local government units and civil society). Under this
perspective, the national government’s role is limited to facilitation
and providing technical, as well as, financial support towards economic
and related initiatives identified by the local community stakeholders.
The Program likewise promotes the full implementation of the Local
Government Code, with emphasis on strengthening the de-centralization of
LGUs and the institutionalization of participatory mechanisms involving
local civil society. It also promotes the protection of the
Constitutional provisions on economic nationalism.
The other hat he wears is that of being the Chief Executive Officer of
Preferred Ventures, Inc., a private consultancy firm engaged in
assisting LGUs in floating City/Municipal bonds. These bonds represent
concrete projects identified, designed and promoted by the LGU concerned
without any assistance or guarantee from the national government. It is
a legal requirement that these bonds should not be of general
application and that these bonds must be true revenue bonds - that the
revenue generated from the identified project will be responsible for
the liquidation of the bond when it reaches maturity. Preferred Ventures
has been in this business for approximately 7 years now and was
responsible for the first bond issue by an LGU (Urdaneta, Pangasinan)
dedicated to the construction of a municipal slaughter house.
They entered into this business in line with their perception that the
future of the Philippine economy requires a shift in the national
government’s economic strategy. They believe that the national
government must move from the promotion of national or macro projects to
one promoting micro projects in every individual community. This is how
we should fight globalization - localization is our best defense. The
biggest symptom indicative of the mistake in our national economic
strategy is the volume of OFWs that leave our country annually.
How do we actualize this new strategy? The first portion of the formula
is to assist the OFW (wherever they may be found) and their families,
who are left behind in the Philippines. The second portion is to develop
the country and its economy so that Filipino workers will not have to
seek employment abroad. How can we marry these two? The answer is to
make use of the resources generated by OFWs and direct this to the
development of local economies where they belong.
The current national strategy – inviting transnational corporations to
invest and set-up in our country to spur economic activity has not
worked. These transnational corporations are not driven with a sense of
mission to help our country’s economy but are here to take advantage of
opportunities that we willingly offer. They are in the business of
betting on horses that will win. The other myth in our national strategy
is the belief that putting-up export oriented industries is a solution
to our woes. This is an illusion. They had put together the 1994
statistical data (this year was selected because of its data
completeness) of all export industries, defined as industries that
export 30% or more of its outputs, to determine how much income they
actually paid to communities where they are set-up. To their surprise,
these export industries contributed only 4.3% of the total income of the
communities.
He then proceeded to talk about the municipal bond floats that Preferred
Ventures helped issue since its incorporation:
1. Tagaytay City
Tourism Bonds for its Convention Center
Project (Php 220 Million) – March, 2001
2. Boracay – Aklan provincial Bonds for its Boracay – Caticlan
Jetty Port Project (Php 40 Million) – July, 1999
3. Puerto Princesa Green Bond for its Brgy. Mangingisda
Socialized Housing Project (Php 320 Million) – February,
2000
4. Masbate City “Aksyon Padayon” Bonds for its Fish
Complex Project (Php 160 Million) – January, 2003
5. Urdaneta Municipal Bonds for its Municipal Abattoir Project
(Php 25 Million) – May, 1999
6. Daraga Municipal Bonds for its Public Market Project (Php
75 Million) – May, 2003
7. Caloocan City Katipunan Bonds (Series A to C) for its
Public Market Project (Php 185 Million); City Hall Park
Project (Php 225 Million); General Hospital Project (Php
210 Million) – December, 2000.
Preferred Ventures has
other bond float projects (with signed Memorandum of Agreements) in the
pipeline involving other LGUs throughout the Philippines.
He then talked of the possibility of designing an OFW Trust Fund where
investments from OFWs can be accumulated for investment in such LGU
bonds and such other enterprises that will support the development of
the local economies. The Board of Trustees of the Fund shall be composed
solely of representatives selected by investing OFWs and supported by a
secretariat. The Fund can also tap consultants/resource persons who can
provide invaluable inputs related to areas where investments can be
allocated in order that the vision of strong local economies can be
realized.
J. Lunch Break
K. WORKSHOP 2: Action Plans/ Next Steps
The participants were divided into smaller groups to discuss and present
in plenary their conclusions on the following questions:
L. CLOSURE- Mr. Ding F. Bagasao, ERCOF Phils.
Mr. Bagasao began by acknowledging and thanking various individuals and
institutions for their time and efforts in bringing the conference to a
successful fruition, namely:
1. The Ercof Board of
Trustees, who individually and sometimes, in representation of their
organizations, contributed time, resources and inputs in the
preparatory meetings and discussions, followup of resource persons and
presentors, and various other related activities.
2. The Center for Local and Regional Governance(CLRG), headed by Dr.
Alex Brillantes and Mike Tumanut,, as well as the UP School for Public
Administration(thru Dr. Vicente Mariano) for their invaluable efforts
in finetuning the program format and invitation of local government
participants in the conference
3. The Executive Director and staff of Community Organisers
Multiversity(COM), which provided Secretariat Services before and
during the conference, for organizing the various facilitators and
documentors, and the multifarious logistical requirements that
anticipated and adequately met the participants and conference needs.
4. The Philippine German Development Foundation(Philgerfund),
particularly its Executive Director, Mr. Ben Maata, who despite the
heavy burdens of supervising logistical onsite needs, prepared and
delivered a comprehensive and orderly summation of the workshop
inputs; and his staff, for acting as liaison with the IIRR, and
providing valuable on-site secretariat, logistical services and
participant needs.
5. Mr. Jeremaiah Opiniano and Ms. Ellene Sana, who acted as
facilitators for the two days, and to the participants who acted as
workshop facilitators and documentors- Ms. Emma Lim Sandrino of FPSDC,
Mr. Mike Tumanut of CLRG, Mr. Vic Arguelles of DBP, Dr. Vic Mariano of
the UP School of Public Administration, Ms. Tess Ramiro of
Akkapka-CANV, Myrna Cabamalan of Sarilaya, Mr. Guia Goduco of Radio
Veritas, and Ditas Dabasol, Boy Marcelino and Jinggoy of COM, and
Prof. Ed Layug of Xavier University.
6. To Mr. Serafin(Serf) Reyes of the Foundation of Developmental
Video, for producing and conceptualizing the video(Voices of an OFW)
which visually provided the proper tone for the conference; to Mr.
Bernardo Bernie Lopez of Business World, who provided additional
footage and shots of the conference and workshops;
7. The keynote speaker, the Mayor of Silang, and the various resource
speakers and presentors who individually and as a whole, provided the
meat and substance of the conference theme, as well as suggested
various directions or starting points for Ercof and participants to
implement the action agenda. Tokens of appreciation were also given to
said resource speakers.
8. To the Atikha Theater Group composed of children of migrants in
Mabini, Batangas, which provided a live and artistic expression of
their concerns during the first night of the conference;
9. To the participants who without exception, actively contributed
their valuable inputs in the proceedings as well as in the workshops.
Mr. Bagasao then
offered his own observations on the substance of the conference:
1. As a followup to
the Davao Conference, whose chief purpose was for awareness raising
and gauging public consciousness on the potential of migration for
development, Silang presented not only general directions on how
migrants remittances could be maximized for the benefit of migrants’
families and local development, but also specific mechanisms that are
being worked on that will hopefully lead to organized (as opposed to
individual)savings and investment instruments which will have
economies of scale to effect a significant impact on local economies.
2. He pointed out that problems of Overseas Filipinos that were
already highlighted in Davao, such as neglect by government on the
plight of OFWs, the social costs, as well as inefficiency in the
delivery of services by OWWA, were echoed anew in Silang. Mr. Bagasao
said that these problems could be considered as obstacles facing
efforts by OFs in maximizing their earnings, and which participants
discussed and sought to address by strengthening and organizing a
lobby group that will dialogue with government for reforms along these
areas, including the fielding of candidates for party list-migrant
sector.
3. Mr. Bagasao briefly updated the participants about the ongoing and
future programs of Ercof specifically on partnerships with
microfinance institutions and the formation of an OFW trust fund for
development, including the issuance of lgu level bonds to be offered
to Ofs or to regional organizations,being designed by financial
managers led by Dr. Sixto K Roxas.
4. Mr. Bagasao gave due recognition to the presence of about 12 OFW
cooperatives whose membership consisted of returned OFWs and migrant
family members, who came from different far flung provinces and
indicated their strong and serious commitment to explore with ERCOF
and its partners, ways by which economic linkaging could be achieved.
In turn, Mr. Bagasao reiterated Ercof’s mandate of acting as a service
provider, although not a funder, and serving as link between these
coops and other service providers.
5. He closed by expressing the hope that from thereon, Ercof would be
engaging more in activities than in conferences. He concluded by
thanking Novib and the Peace and Equity Foundation for sharing Ercof’s
vision, through their expressions of support through the funding of
the various needs of the conference, and to Novib for funding of
Ercof’s future programs.
M. Caucus of OFW Coops.
Some representatives of OFW coops who attended the conference requested
Ercof for further discussion on their needs and concerns. Thus a meeting
was held at 8pm of 18 July to 1:00 am of the following day, between
Ercof officers Bagasao, Tanchoco, Maata, Arguelles and Opiniano, with
OFW coop reps from Basilan, Western Samar, Cebu City and Mandaue,
Quirino, Davao City, and two development NGOS from Bislig, Surigao and
Kalumonan(Davao Oriental, a representative of the Kapisanan ng
Migranteng Pilipino(Japan based) and a representative of COMultiversity.
1. Representatives of
OFW coops and ngos went through the rounds again of their needs,
concerns, problems as well as expectations on the theme of the
conference and on service providers such as Ercof, that may have been
left out during the conference. These needs consisted mostly on
accessing services that may be offered in government as well as by
funding or private development agencies which have not been
forthcoming or they have been aware of, such as sources of funding,
skills training and capability building.
2. Ercof officers again stressed that it is not a funding agency, as
might have been perceived earlier, but is essentially a think-tank,
advocate and service provider for migrant Filipinos and in the area of
economic linkaging. They stressed that it is willing to assist OFW
coops and ngos performing migrant services, but that it has to be the
OFW coop or ngo who should do their own needs assessment and
thereafter Ercof may help later by finding other organizations within
its network who could match their needs.
3. A suggestion from the OFW coops was made to form a federation among
them and pursue common concerns. Ercof pointed out that if this is
what they believe the most effective way of achieving their
objectives, the first thing they might wish to do was to improve their
communications link, and on this, Ercof said it will try to find ways
to help them along this line. It was suggested that they open email
addresses, and later on, Ercof might try to help them get computers.
4. A discussion ensued on how to enlist the interest of local
government units in migrant socio-economic activities. It was decided
by the OFW coops, and concurred in by Ercof, that the group initiate
letters of endorsement addressed to the DILG, for it to issue a
circular to all local government units to give a special focus or
attention to the needs of OFWs or their families within their
respective territorial jurisdictions. The letters of endorsement would
be prepared by the respective OFW coops and sent to Ercof, which will
in turn submit the same and follow up with the Secretary of the DILG.
Copyright © 2004. Economic Resource Center
For Overseas Filipinos. All rights reserved.
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