Economic Viability

of Overseas Filipino
Workers
Lester G. Cavestany
Ateneo School of Government
Master in Public Management
Professor Enrico C Mina, DBA
Applied Economics
June 2011

Economic Viability (defined)

a positive net return or at least a

balance in costs and returns

Labor export policy - Assess what are

the gains and what are the costs

Kayo ang mga Bagong

Bayani

Humayo kayo at
magparami

LABOR MIGRATION

Top Labor Importers

Top Labor Exporters

Developing Countries: 10 Largest Recipients of Remittances

(in billion dollars)
Country
2006 2007 2008 2009 2010 5-yr Average
India
$42
$26.90
$27
$45
$55.06
$55
China
$35
$22.52
$25.70
$40.50
NA
$51
Mexico
$24
$25.60
$26.10
$25.10
$21.20
$22.60
Philippines $12.70 $14.40 $16.40 $17.30 $21.30
$16
Israel
$16
$13.50
$14.40
$16.60
$20.20
NA
Poland
$11
$8.50
$12.50
$13.75
NA
$9.10
Nigeria
$10
NA
NA
NA
$9.60
$10
Bangladesh $5.50
$9
$6.60
$9.00
$10.70
$11.10
Pakistan
$7
$5.10
$6.00
$7.00
$8.70
$9.40
Vietnam
$7
NA
NA
$7.20
$6.80
$7.20
Morocco
$6
$5.10
$5.70
$6.90
$8.00
$6.40

Remittances in Developing Countries

Remittances
Increase foreign exchange funds
stabilize volatile movements in the exchange
rate price stability
Provide money for beneficiaries
spending
Savings
Investments

Indirectly/partly contribute to finance

government expenditures.

At what cost?
Personal Sacrifices
Social Problems
National Concerns

Personal Sacrifices
Language barriers
Social differences
Loneliness
Higher cost of living
Unwanted jobs
Lower pay
Maltreatment
Lack of human rights
Health risks

Social Problems
Breakdown of the Filipino Family
Failed Marriages
Broken Homes
Troubled Children

Feminization of Migration

National Concerns
Brain Gain vs Brain Drain
Ang Puri ng Babaeng Filipina

The Beginning of the End

Continue Labor Export = Destroy the
Filipino Family
End Labor Export = Begin National
Economic Development
Transition: Protect and Promote OFWs