(This is the article I previously mentioned in another post. Finally, it came out in the Vol9 No4 Oct-Nov 2007 issue of Ako Ay Filipino magazine circulated in Singapore and Hong Kong. I'm looking forward to writing more articles.)
Remittance Talk
By Windel Anne B. Lacson
Most of us are aware of the great benefit that our remittances bring to our country, hence the label bagong bayani upon us.
Through our remittances, we are able to provide better finances to our families which might have been the primary motivation among many of us to work outside our country, if the decision was not for personal reasons alone.
We also know that our remittances have helped our country’s economy greatly. The foreign currency, mostly US dollars, that we send back home increases the dollar supply in the Philippines thus making the peso stronger against the US dollar. The extra income that we provide to our families has supported the overall economy due to our consumption with the simplified equation that goes: more money = more things to buy = more income to businesses = more economic activity. These are just a few of the many benefits the country gets from our remittances.
Beyond the good news, however, we have to evaluate how our remittances have significantly helped us improve our lives. For instance, I came across the an article two years ago that says that working abroad have not satisfactorily improved the lives of a significant number of overseas Filipino workers mainly due to the fact that the workers are not able to save enough money for long-term use. Most of their income or remittances go to consumption-related activities as against investment-related activities.
It is understandable how consumption is very attractive to a person who has suddenly experienced an increase in income. We all desire good things for ourselves and most of the time this desire is the thing that pushes us to strive for better lives. The desire for nice possessions, stature and recognition may have been the primary reasons why we all find ourselves abroad. Hence, we find it very thrilling and satisfying to indulge in these desires once we find we have the means. Being Filipinos with heavy family-orientedness, we also often wish to extend that thrill and satisfaction of our gains with our loved ones, and we find that fulfillment through sending remittances if not for physically bringing gifts to the special people at home whenever we visit the Philippines.
There is every reason to celebrate a blessing to ourselves with the people we care about. Beyond that, however, I would like to remind every reader about having short-term and long-term goals. The article I mentioned earlier said that many OFWs find themselves without sufficient savings and investment to support themselves during repatriation after many years of working abroad due to a variety of reasons which include: the lack of consciousness to save money among many, and the tendency among many to overspend on large feasts for our extended families or even our local communities.
It may be surprising to find how our little acts of kindnesses may drain us of our hard-earned money. Unfortunately, some studies have found that to be true. I guess the lesson for us here is to know how to temper our “kindness”. Surely, there are ways to show kindness and gratitude to our kin and our community without having to compromise our future once we are back in the Philippines.
Also, I would like to caution our readers about how our remittances are made use of. A current study by Dr. Alvin Ang of the University of Santo Tomas reveals that the huge amount of money that goes into the Philippines through our remittances “have yet to be translated to value-added activities and investments which are more foundational sources of development and growth.” Simply put, we can ask ourselves, how has the billions of dollars of remittances sent by OFWs for so many years lessen the poverty in the Philippines? Have we seen a significant decrease in unemployment in our country due to investments, for example in small businesses, through remittances sent? Have we seen an upsurge in our economy due to the flow of dollars to our country? These are just simple questions that we ourselves can answer based on personal experience.
Dr. Ang says further that, “the bulk of the remittance money appear to be sucked into consumer spending that has spurred that rise of giant shopping malls across the country.” True enough, that was what I found when I came home to visit our country last June, a crowding out of giant malls, for instance SM City in North EDSA is now face to face with another giant mall called Trinoma. I’m sure we can all benefit from the convenience and variety of having more than one mall in the area where we live. But then I guess it’s also very important for us to ask ourselves the question: “Are malls and our ability to buy things that are available in them enough to make for a satisfying life among us?”
Reference:Philippine 2006 overseas remittances hit record 12.8 billion dollarsAgence France Presse, 15 February 2007
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