The Philippine Online Chronicles

When a class of hotel and restaurant students was asked how many of them want to go abroad for employment after their graduation, not a few raised their hands. Although still young, they are aware of the benefits as well as the risks involve. They are adamant on finding better opportunities for themselves outside the Philippines.

Underrated Modern Day Heroes

The OFWs have been called as modern-day heroes. No title is more befitting. Although they do not brandish any guns nor wield any swords, the money that they send back to the Philippines as remittances certainly shield the country from any economic calamity.

Not a lot of people understand how remittances play an integral part in the country’s economic growth. Next to export, the remittances are the largest source of foreign exchange. At present, the remittances stand at 10 percent to the Gross Domestic Product and are responsible for fueling household consumption. Since consumption is two-thirds of the total output, a decline in this category can certainly cripple our economy.

In 2008 and 2009, when the whole world suffered from one the greatest financial catastrophes in history, the Philippines did not experience the severity of the crisis as what other nations did. When our Asian neighbors slumped into recession, the Philippines did not, proving to be more resilient than expected. The Philippines even posted a 3.8 percent and 0.9 percent growth respectively.

When pundits and experts said remittances will decline, it proved otherwise. During those years, the money flowing to the Philippines was consistent. Regardless of how bad the situation was internationally and domestically, the needs of the OFWs’ families such as food, shelter and education were still present. Hence, OFWs continued sending money back home. Data from the Bangko Sentral ng Pilipinas (BSP) showed that remittances even grew during those years.

The country’s Gross International Reserves kept on climbing higher. As of April the reserves were up to USD47 Billion (P2.2 Trillion). When the ideal reserves are only worth four months of import, the Philippines has 9.3 months worth. The USD1.43 Billion (P66.85 Billion) increased was largely due to the sale of the USD 500 Million (P23.37 Billion) multicurrency retail bond for the OFWs. It was otherwise known as OFW bond and was the first of its kind in the Philippines.

The GIR is the sum of all foreign exchange resources flowing into the Philippines. It is comprised of Gold, Special Drawing Rights, Foreign Investments and Foreign Exchange. Having a high GIR means the Philippines can defend the peso against other currencies.

Is the sacrifice all worth it?

It may well be safe to say that no Filipino goes abroad with the intent of contributing to the Philippines’s economic development. All these contributions made by the OFWs to the country’s progress are consequences of their quest for a better future for themselves and their families.

The irony of it is that it is the government’s inability to provide decent employment for its own people that lead them to seek greener pastures abroad. But it is the government, the entity that encourages them to leave the country that benefits from the remittances they send back home.

Truth be told, institutions locally cannot compete with the income of their foreign counterparts can. A hotel and restaurant management graduate can earn as much as EUR1,000.00 or P57,000.00 working as a waiter in a cruise ship. That is still excluding tips which can even provide him with several thousands of pesos more as extra income a month. However, the same work may only fetch him as much as P20,000.00 back home.

For healthcare services, a registered nurse at a local hospital can earn P15,000.00 But the same nurse can earn as much as USD2,000.00 working in a hospital abroad. Some companies even provide free accommodation for their overseas employees.

And for the OFW’s families, the big disparity in income means a better life for themselves. Economically, it means higher purchasing power. An OFW is often envied by his non-OFW peers when the latter see how he is able to buy new appliances, furniture, a car and even a house. A far cry from what he used to possess.

But it comes at a price. OFWs face risk of being maltreated by their employers, sold into slavery, and lock in prison. Perhaps the worst of all is their families breaking up because of their absence. All these they risk for the hope and promise of better lives.  No worker would want those to happen. If they could have it their way, they prefer to stay and work here. But it is not to be. Necessity doesn’t allow it.

The government and private sector have both recognized the efforts of these modern-day heroes. The Bagong Bayani Awards are given to OFWs who exemplified the values and skills of a Filipino worker abroad.  The Bank of Phlippine Islands, on the other hand, annually awards the 10 Outstanding Expat Pinoy Children. These are children of OFWs who excelled in academics and community performance.

A Double-edged Sword

Critics argue that migrant remittances can a culture of dependency. Massive lay-offs can certainly impair the flow of remittances to the country, which in turn can impede the country’s continuous growth. With no other viable option readily available, the Philippines would just have to bear the tragedy.

Then there are also talents and skills being diverted outside the Philippines. Some of the more breathtaking sky scrapers in Dubai are designed by Filipinos. Those skills can certainly benefit the Philippines’ infrastructure but because of lack of financial support, it is the other countries that benefits from our resources.

Regardless of the critics, no one can argue the substantial role the OFWs play in our society and economy. At this point in time, the pros of having OFWs outweigh the cons. Unsung and underrated, they certainly justify “Modern-Day Heroes”.

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