Privilege Speech of Rep. Loretta Rosales
on the Impact of the Current Social and Economic Crisis Confronting Overseas Filipinos

Since the mid-1970s, the number of Filipinos going abroad for employment has been steadily increasing. By the 1990s, official statistics from POEA (Philippine Overseas Employment Administration) place actual departures at over 700,000 1and still increasing. Today, the number of overseas Filipinos is estimated at nearly seven million, spread in 181 countries and destinations worldwide. They now constitute about 10% of our population or nearly 20% of our productive age population2. Of these, some 4.2 million are classified as overseas Filipino workers (OFWs)3 who work on fixed contract terms of six months to two years.

Our experience of migration has been primarily shaped by the demand for a flexible international labor pool as a result of the globalization of the world economy it is also driven by increasing poverty and unemployment at home as well as by an aggresive labor export policy of the Philippine government.

Along with this increase in migration is the dramatic rise of abuses committed against our compatriots abroad. Consider the following:

Notwithstanding the risks entailed, the exodus of Filipinos for overseas work is expected to continue for sometime due to job scarcity and continuing poverty at our domestic scene. For the last two decades, the overseas placement has outpaced new job generation in the country.

With the economic downturn which the Asian countries, including the Philippines, is experiencing, income remittances from abroad could be critical in averting a potential economic collapse. In fact, judicious utilization of these funds can be the cutting edge in the recovery process.

Consider the following:
In 1996 and 1997, based on the data cited by the Bangko Sentral last March 19, 1998 in Asian Migration News and Business World, Filipino migrants remitted some $5 billion in foreign currency5. This amount is about 18% of our Gross National Product6. This easily doubles if remittances through non-banking or informal channels are factored in. Dollar inflows coming from earnings of OFWs are net dollar inflow compared with inflows from export of goods whose impact would be negligible due to effect of importation. For more than a decade now, income remittances from overseas have kept the Philippine economy afloat. If these were used to fund our local economic programs, we could easily increase our agricultural productivity and generate local employment.

The acute regional economic crisis we are currently experiencing hits them in two ways: one, their host government, is also suffering from the same economic crisis which projects a grim situation of lay-offs, and whom we do not have strong bilateral labor agreements and thus offers no protection to them, and second, with the local economic crisis, they would face massive unemployment upon their return.

But probably more important is the fact that out there is a vast reservoir of human resources which can be tapped for national development, particularly in such areas as education, governance, diplomacy, business, agriculture and science.

A significant percentage, if not the majority, or our medical and health professionals are abroad. Thousands of Filipino educators and scientist are teaching or doing research in prestigious universities abroad. We lack teachers for our schools, yet hundreds of them leave the country everyday to serve as domestic helpers to foreign employers. We now feel the scarcity of computer specialists because most of them are working overseas. Most of our highly-skilled technical and agricultural workers in the rural areas are working overseas. They could be instrumental in pursuing rural development which this government has envisioned. And there are thousands of Filipinos serving the United Nations, international development agencies and foreign diplomatic missions.

The plight of OFWs also covers the issue of our diplomatic relations with their host governments. Despite the enactment of RA 8042 (Migrant Workers and Overseas Filipinos Act of 1995), our government has no bilateral labor agreements with their host countries and therefore, the limitations in the applicability of the said Act. This is the root cause of abuses committed against our compatriots abroad. Despite our policy pronouncement that "The protection of the Filipino migrant workers and the promotion of their welfare, in particular, and the protection of the dignity and fundamental rights and freedoms of the Filipino citizen abroad, in general, shall be the highest priority concerns of the Philippine Foreign Service Posts" (RA 8042, Art. VI, Sec. 27). Until today, Mr. Speaker, this pronouncement remains hollow, no substance, no teeth, no assurance in protecting their welfare.

Filipinos everywhere maintain a strong affinity to our motherland. They maintain constant touch with relatives and friends and keenly follow developments at home. They have a high propensity for self-organization. They tend to cluster close to each other and engage in cooperative ventures and mutual self-help programs. For our part, let us provide them with channels by which they can participate meaningfully in national development and political processes at home.

Our brothers and sisters abroad deserve our attention and assistance. They have been called modern-day heroes. Unfortunately, the acknowledgment to their important role and contribution to our country virtually stops at that. Let us not look at the problems and needs of our overseas workers as an added burden or cost that can only derail national programs. Let us not evaluate their contribution only in terms of the incomes remitted from abroad. Rather, we should consider the vast potential of the migrant sector in national development.

In response to these realities of our migrants' experience and in recognition of their potentials and capacities, the creation of a regular committee for Overseas Filipinos and Migrant Workers would provide them the proper channel to continue to participate in our development programs.

I believe this Congress can do a lot to improve the situation of overseas Filipinos and harness their vast potentials. I believe this Congress should afford them with adequate channels by which they can be heard. I believe this Congress should forge links and partnerships with them for their active participation in legislative processes.

Let us not reduce the OFWs' case into mere statistics only. This august body, by creating the regular committee, could resolve with immediacy and efficiency the issues and problems confronting our fellow Filipinos abroad. The proposed committee could help the House in conducting studies and investigations, in policy formulation and in drawing specific legislative action. The House, through the committee, could help strengthen diplomatic relations with their host countries towards attaining greater security for them and protection of their freedom and dignity as Filipino. Lastly, the committee could actively tap the vast potentials of our skilled workers abroad and further motivate them to continue participating in national development. Our positive and timely action on this pressing matter would once again show that we can achieve our common purpose much more easily and effectively by continuing to work together.




Footnotes:

  1. Based on POEA data and on an interview with Administrator Joson, overseas deployment is at 747,649 in 181 destinations abroad. This figure represents a 13% increase from the previous year. (also cited in Philippine Star, April 13, 1998)

  2. The estimated population for 1997 is 71.175 million (National Statistics Office, 1995 census). Thus, the 7 million overseas Filipinos constitute about 10% of the estimated population for 1997. The labor force as of 1997 is placed at 32 million. Thus, the 7 million overseas Filipinos (discounting minors) is about one-fifth or 20% of the 32 million labor force.

  3. POEA placed the number of documented OCWs at 2.4 million and estimates the number of undocumented overseas workers at 1.8 million or a total of 4.2 million overseas contract workers.

  4. Legal and Welfare Cases Handled by POEA (1984-1995)

    YearIllegal
    Recruitment
    Cases
    Legal
    Cases
    Recruitment
    Regulation
    Cases
    Welfare
    Cases
    Average
    Total
    19841,7812,694 1,8566,221
    19851,2312,4272,1565,74211,916
    19861,4521,7592,6008,42714,238
    19871,7251,8112,18013,40419,180
    19881,1842,1691,7118,62513,689
    19891,2952,1491,0907,30811,842
    19908473,0207216,07410,662
    19917122,5641,1375,3869,799
    19927973,7278625,71511,101
    19937706,1401,3905,81014,110
    19946509,993 6,43117,074
    199543910,311 6,63717,387
    Average
    Per
    Year
    1,069 4,0641,5796,78513,196


  5. OCW Remittances (source: Bangko Sentral ng Pilipinas)

    Year OCW Remittances
    (in $M)
    1985687.20
    1986680.44
    1987794.94
    1988856.81
    1989973.02
    19901,181.07
    19911,500.29
    19922,202.38
    19932,229.68
    19942,630.11
    19954,930.00


  6. GNP at current prices for 1995 is P1,967 billion (Philippine Statistical Yearbook, 1996). Allowing for a 4% average growth for 1996 and 1997, the estimated GNP for 1997 is P2,127 billion. With remittance from formal and non-formal channels estimated at US $ 10 billion (or double the US $ 5 billion remitted through banking channels ) or P 420 billion at the current exchange rate, total remittance is about 18.8% of the 1997 (GNP (Human Development Report, UNDP, 1997).





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