Planning to Retire Soon!

If you are planning to retire in the Philippines soon, I suggest you visit several excellent websites on pro's and cons of retiring in the Philippines. However if you want to retire in the provinces, where life is simple, standard of living cheaper, less traffic congestion and pollution, availability of fresh seafood and vegetables compared to the big cities, my island province is the place for you! If this is your first time in my site, welcome. Please do not forget to read the latest national and international news in the right side bar of this blog. Some of the photos and videos on this site, I do not own. However, I have no intention on the infringement of your copyrights. The photo above is the front yard of Chateau Du Mer-Our Retirement Home in Boac, Marinduque, Philippines

Sunday, September 5, 2010

OFW Remittances Saving Economic Crises in the Philippines

Last year and this year the economic situation in the Philippines was not as bad compared to here in US. Thanks to the remittances of OFW ( Overseas Filipino Workers) to the Philippines. Who are the OFW's?

An Overseas Filipino is a person of Philippine origin who lives outside of the Philippines. This term applies both to people of Filipino ancestry who are citizens or residents of a different country and to those Filipino citizens abroad on a more temporary status.

Most overseas Filipino migrate to other nations to find employment or support their families in the Philippines. As a result of this migration, many countries have a substantial Filipino community. The term "Global Filipino" is another term of more recent vintage but less widely used.

Former Philippine President Gloria Macapagal-Arroyo applied the term "Overseas Filipino Investor" or "OFI" for Filipino expatriates who contribute to the economy through remittances, buying property and creating businesses.

There are about 8.7 to 11 million overseas Filipinos worldwide, equivalent to about 11% of the total population of the Philippines. Each year, more than a million Filipinos leave to work abroad through overseas employment agencies and other programs, including government sponsored ones. Domestic helpers and personal service workers are the majority of positions filled by women. Others emigrate and become permanent residents of other countries. Overseas Filipinos often work as doctors, physical therapists, nurses, accountants, IT professionals, engineers, architects, entertainers, technicians, teachers, military servicemen, seafarers, students, caregivers, domestic helpers and household maids.

The exodus includes an increasing number of skilled workers taking on unskilled work overseas, resulting in what has been referred to as a brain drain, particularly in the health and education sectors. Also, the exodus can result in underemployment, for example, in cases where doctors undergo retraining to become nurses.

Money sent by OFWs back to the Philippines is a major factor in the country's economy, amounting to more than US$10 billion in 2005. This makes the country the fourth largest recipient of foreign remittances behind India, China, and Mexico. The amount represents 13.5% of the Philippines' GDP, the largest in proportion to the domestic economy among the four countries mentioned.

Overseas Filipinos sent $15.9 billion worth of remittances to the Philippines in 2008, up from the $14.4 billion in 2007, and $13 billion in 2006.

In 2009, the amount of $17.348 billion was sent to the Philippines by Overseas Filipinos, highest among prior years.

The following video is an excellent documentary of the past,present and future of the financial crisis here in US, that is also affecting the whole world. It is a must view video if you are concerned with the economic future of the world.

Again, thanks to the remittances of OFW's, the economic situation in the Philippines last year and this year is not as bad as the financial crises here in the U.S. The OFW's are the modern HEROES of the the Philippines.

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