The overseas Filipino worker (OFW) emerged as a phenomenon in the early 1970s, when Middle East countries took control of their immense oil resources and decided to upgrade their economies and raise the living standards of their people at par with the developed countries, which for many years exploited the black gold underneath the desert sands.
All over the world, Filipino engineers work the oil fields and sail the largest cargo vessels as well as the luxury cruise ships. On land, Filipino accountants man business offices. In hospitals, Filipino doctors and nurses take care of the sick.
Filipino teachers also preside over classes in many countries, from the Northern Marianas to Texas; they teach English to children in Hong Kong and China. Many work as domestic help despite having college degrees.
From a phenomenon in the ’70s, the OFW has metamorphosed into a savior and now, into a nation builder.
Savior of the economy
The money sent home by overseas Filipinos saved the Philippine economy from collapse during the first oil crisis in the early ’70s and during the debt crisis in the early ’80s.
The 1.1-percent growth in the country’s gross domestic product (GDP) in 2009, when two-thirds of the world, including the United States, plunged into recession, would have been negative were it not for the $17.35-billion OFW remittances during that year.
The World Bank and other agencies predicted that OFW remittances would drop because of the US-led global financial crisis that erupted in 2008. It did not: the remittances in 2009 were up from $16.43 billion in 2008. In 2010 remittances exceeded $18.76 billion.
Growth driver
This year the Bangko Sentral expects remittances to breach the $20-billion mark despite fears of another global recession amid the crisis in Europe.
Emerging countries compete for foreign direct investments (FDI) to fuel their economies and generate jobs. Competition means offering incentives like tax holidays and perks, such as special manufacturing areas and even discounted electricity rates to attract foreign investors.
The Philippines receives about $2 billion a year, for which the government—and Filipinos—pay in terms of foregone tax revenues.
Foreigners who bring in the coveted dollar equity receive red-carpet treatment and go through the fast lane, privileges not accorded to the small Filipino entrepreneurs.
Inequity
On the other hand, what do the 10 million OFWs receive in return, or at least in appreciation of the tens of billions of dollars—in cold cash—they send home every year?
They have to line up under the sun and rain along Kalaw Street in Manila, fill the lobby of the POEA building along Edsa and spend days, sometimes months, going from one office to another before they get the permit to leave.
Those who are able to leave are the lucky ones; many fall victim to illegal recruiters, their savings gone, with debts to pay.
Those who leave, and are able to work abroad and send money home, also pay an unquantifiable price, as well as serious social consequences. Fathers and mothers are supposed to bring up their children together, but working abroad breaks up families.
We have 10 million OFWs—some estimates place the number at 11 million—yet we assign direct responsibility for their interests to agencies below Cabinet level.
It is a lopsided bureaucracy. It is right to have a Department of Tourism to promote the visitor industry, which brings in 3 million tourists every year and encourage the development of hotels and entertainment facilities.
In terms of contributions to the economy, however, OFWs give a lot more. The OFW remittances in 2010 accounted for about 10 percent of our total GDP of $199.6 billion for that year.
These remittances continue to drive our consumption-led economy (partly because of the deterioration of the industry sector). Remittances triggered and continue to sustain the longest real-estate boom in the Philippines, as well as the development of commercial centers and shopping malls not only in Metro Manila and the other big cities, but also in areas that have longed wanting in urbanization.
Shield from global crises
Succeeding administrations have made pronouncements that labor export is a temporary measure to bring down unemployment at home and stop the brain and brawn drain.
Yet the consequences are unthinkable if the 10 million OFWs suddenly come home and join the army of job seekers. We already saw what happened when a few thousands were repatriated as a result of the conflicts in the Middle East and North Africa.
It is not difficult to imagine what would happen to the economy if the flow of remittances suddenly stopped.
Token appreciation
Again, what do OFWs receive in return for their contributions to their nation? A few are hailed as outstanding every year, and receive trophies or medals and some cash. They also get praises as being “modern heroes.”
That’s fine, for the awardees, who I believe really deserve the honors. For the whole community of OFWs—50 million if we include their families—I believe the token appreciation is an insult, an injustice because they deserve a lot more if their government were sincerely grateful.
They need an executive department with a Cabinet-level secretary, not an agency with a section chief, to look after their interests. I don’t know of any constituency larger than the 50 million OFW community. Much-smaller groups fare better, with their own representatives in Congress.
The end to the OFW phenomenon, nay institution, is not in sight. The Philippines will continue to depend on OFWs to generate jobs, to drive the economy and shield us from global crises for many years to come, while they and their families pay the social price.
So, on one hand, the deployment of workers overseas will be here for good. On the other hand, it is temporary in the sense that we should not over-rely on OFWs for growth.
Instead, they give us time to build up our economy, put up the necessary infrastructure, and even to rethink our policy on industrialization.
They give us time to re-assess and define what we need to attain high and long-term growth, with the final objective being to give Filipinos enough opportunities to enjoy high standards of living without leaving their families and their country.
In the meantime, it’s time to give proper recognition to the OFWs, our nation builders.
IN PHOTO -- Overseas Filipino workers continue to leave in droves at the Ninoy Aquino International Airport, greatly contributing to the P18.76 billion in remittances last year. --Recto Mercene
