Basic premises: Remittances of overseas Filipinos for development

The Philippines is regarded as the third highest origin country of international migrants and overseas workers, with 8.1 million or 10% of its population living and working in at least 192 countries worldwide. Of the estimated eight million overseas Filipinos, about 3 million are contract-based, another 3 million are immigrants, while the remaining 2 million are considered undocumented or irregular workers. Remittances also play a central role in the international migration discussion. Overseas Filipinos have also remitted some US$105 billion from 1974 to 2006, as per government bank data.

Migrant workers earn income, obtain technology and skills and accumulate experiences which are, at various times, repatriated, invested or applied for the benefit of their home country. But of all migrant-acquired resources, remittances or that portion of migrant income sent by migrant workers to their home country are the most direct, immediate and far-reaching for the intended beneficiaries, mostly family members they have left behind.

Several studies indicate that these family-directed remittances are used for:  (a)  Food, utilities  and other basic family needs (b) Education (c) Housing and Property acquisition (d) Health and other emergencies (e) Payment of Debts (f) Money set aside for small business ventures.  Migrants’ remittances are the main, or are a major, source of support of about 6.2% of Filipino families, a figure that translates to about 881,263 households with dependents working or residing abroad.

There could be  great economic  potential when   private remittances of overseas Filipinos are sent and spent in certain strategic ways that impact on local development. Migration and development advocates must be reminded, though ,  that these are private transfers and should not be unduly interfered with by the government and the private sector. Nevertheless, there could be  ways by which  both the public and private sector, especially civil society, could introduce policies and programs that could have a positive impact on remittance use. Government could work towards  lowering the cost of remittances through fostering competition among money transfer agencies, or offer incentives that spur local investment or entrepreneurship. The private sector including civil society members working with migrants, could be tapped to teach  financial literacy skills and access to a wider range of savings and investment options that will enable migrants and families to make informed decisions on sending and spending financial resources.