May 25, 2010

An Open Letter to Sen. Benigno “Noynoy” Aquino III,President-Elect, Republic of the Philippines

Dear Sen. Aquino,First and foremost, we extend our deepest and sincerest congratulations on your ascendancy to the highest-elected office of our beloved country through a democratic processthat every Filipino can take pride in for many generations to come. The first step inherent in the process of transformation is recognizing the need for change – and our capacity to change for the better! Thus, from this point onward, we are hopeful that inspired by your convincing victoryand leadership, every Filipino will assume his or her role and responsibility to change the statusquo by initiating positive changes towards a better and brighter Philippines, no matter where heor she is, and regardless of what citizenship he or she now holds.We, the Overseas Filipinos Worldwide (OFW), are a group of Filipinos based abroad andin the Philippines, representing various organizations implementing projects in the Philippinesand in our host countries for many years now that are aimed to strategically harness thePhilippines’ migration gains into mechanisms for the development of the motherland and our communities of origin.Migration gains are mainly remittances by overseas Filipinos to their family members,which are now in the region of USD17 billion and are the primary source of livelihood for millions of Philippine households. At 10.8% of the country’s GDP, they are also the third biggest source of the country’s foreign currency reserves and act as primary driver for our economy, shielding us from bankruptcy during the financial crisis in 1997 and the current one.The Filipino diaspora, estimated now at about 10 million working or residing in 239 countriesand territories worldwide, send back donations to various humanitarian causes, such as disaster– relief, medical missions, schoolhouses, and other infrastructure. These contributions supplementlocal and national government deficits and, as of 2003, have already amounted to USD218million, per BSP figures in that year. We do not count here the investments made by OFWs inreal estate and the education and health of their family members, and the money spent on variousgoods and services, as well as on construction, food, shelter, and other inflows that supportsectors like the airlines, shopping centers, and banks. Yet, after more than three decades of overseas employment, we do not see genuine signs of poverty alleviation, and instead more andmore of our countrymen leave for work abroad.Ironically, the Philippine model of overseas migration has become a model of sorts, for other migrant-origin countries to emulate and even copy. This however does not tell the wholestory or reveal the other face of migration that has escaped the serious attention of pastadministrations, specifically, the social costs that migration has bred since government-manageddeployment started in the early 70s and up to the present, where we now see at least 3,000 of

many of the best and brightest Filipinos leaving daily to take up jobs overseas, due to localemployment deficits. Other nations like South Korea, Italy, Ireland, Portugal, and Taiwan, whoonce were labor exporting countries, have been able to get over their migration hump, as a resultof their governments’ consciously harnessing their workers’ remittances and investing them todevelop local infrastructure, shipyards, factories, and other industries. Convinced of theeffectiveness of government programs and also trustful of their leaders’ sincerity, thesecountries’ expatriates and overseas workers, at great sacrifice, left their high-paying jobsoverseas and returned to their home countries to lend their talents and acquired expertise infurther helping their respective country’s leap towards developed status even working at lowsalaries. India, another migrant-sending country, is also now going in that direction. Theseexamples serve to illustrate the dictum that migration should be temporary, that it must not beused as a substitute for development. The desirable goal of countries wishing to be strong andglobally competitive must necessarily be self-sufficiency and the ability to provide its peoplewith necessary components needed for their human development.The advent of a new administration, especially one under your inspired leadership, is agood time to ask where the Philippines is going regarding migration, and to act accordingly.Shall we continue to send out our people and rely on remittances and without any developmentobjectives in sight? Conversely, don’t we have the talent to formulate a road map towards self-sufficiency over a period of time, in order that the hemorrhage of talents could be stopped, that acrisis in our dysfunctional families and society at large could be averted, and so that our peopledo not have to take migration as a forced option? If long-term migration goals are set now, thegovernment could in the meantime work on some basic but urgent deployment and migrationissues in order to clear the way towards having a genuine and serious program on translatingmigration gains for use in human development. In view of this, we humbly suggest starting tolook at the following:

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The government must send clear and strong signals that migration and remittances are onlytemporary measures to help the government prepare for a longer-term goal of self sufficiency,in which Filipinos no longer look at migration as a forced option. This must be integrated inMedium-Term Development Plans, which is currently being formulated by NEDA, and whichshould also include how, in the meantime, gender-sensitive strategies, policies, andmechanisms for the productive use and investment of remittances could be harnessed tostrengthen the country’s macroeconomic fundamentals.

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Create a position for a Special Presidential Adviser on Migration and Development, who willwork with a technical working group (TWG) composed of qualified individuals who have a background in migration and development, including knowledgeable and committed migrantleaders. Among others, the TWG could conduct studies, consultations, and discussions, andcome up with updated situationers and appropriate policy recommendations on how toeffectively translate remittances and migrant resources to develop local economies; and toaddress social costs, facilitation of return migration, reintegration, mechanisms for thecounterparting of funds between Filipino diaspora groups, LGUs, and development agenciesfor local and countryside development, incentives for OFW investments in agriculture, SME,infrastructure, microfinance, cooperatives, and other sectors that need stronger fundingsupport. The work could take the form of draft legislation for study by Congress’s standing

committee on OFWs or form the basis for an Executive or Administrative Order, whichever isappropriate or workable. The committee’s work shall be purely consultative and should notsupplant the work of government migration agencies.

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Review and monitor the performance of government agencies in charge of migrant workers,such as the POEA, OWWA, CFO, and the Department of Foreign Affairs, with a view tostrengthening these institutions, reducing wasteful and ineffective programs or duplication of work, giving agencies needed resources and funds for effective implementation of programs,and strengthening the capacity of their overseas offices to become centers of service to migrantworkers overseas.

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Departing OFWs contribute USD25 each as a requirement for departure and membership inOWWA and entitlement of welfare benefits. The total corpus of this trust fund is already atthe level of at least PHP10 billion. The disposition and administration of this fund has beensubject of criticisms, as its use has not been transparent and shown susceptibility tomismanagement. Specifically, reforms in OWWA should (1) impose strict criteria in the process of selection of people who will sit in the Board of Trustees, such that only thosequalified and are committed to work for their constituents are appointed, e.g., women OFWs,sea-based, land-based, etc. (2) OWWA proceedings should be made transparent and open to public scrutiny, particularly the investment of the trust funds. (3) the incoming administration,for the benefit of OFWs and through the working group, should require from the currentOWWA board an accounting of OWWA funds and how they were invested/used. To this end,the most recent COA audit of migration agencies, like POEA, OWWA, DFA, and POLOoffices overseas, must be consulted.

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The Commission on Filipinos Overseas (CFO) and the National Reintegration Center for OFWs (NRCO) are two small agencies that are doing important work on mobilizing diasporacontributions for development and assistance to OFWs who are reintegrating to Philippinesociety after working abroad. The CFO, for instance, has submitted recommendations on howgaps and barriers to enhanced diaspora contributions could be addressed, but these have never been acted upon. The NRCO, in the three years it has been created, has given assistance andreferrals on livelihood and employment to OFW returnees affected by the global crisis. Their work should be seriously looked into, and whenever necessary, the appropriate level of funds,resources, and support should be given to these agencies.

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Lack of financial literacy or of the ability to use resources and incomes productively andwisely has been highlighted as a major cultural barrier among not only OFWs but also for most Filipinos. It prevents our people from improving their socio-economic conditions,despite years of employment in the Philippines or overseas. This refers to lack of savings or investment mindset and excessive spending on non-essentials. No less than an institutionalizednationwide program on financial literacy will be able to address this and should include notonly OFWs but also members of their family. The BSP has been the lead government agencythat has conducted financial literacy seminars for OFWs and families since 2006 in more than30 Philippine cities and 10 cities overseas. This program could be improved and expandedthrough an impact assessment of the campaign and which might include providing resourcesfor enlisting the DECS to include financial literacy and migration as part of school curriculum,