12 October 2008
For reference: Connie Bragas-Regalado (Secretary General, International Migrants' Assembly)
Contact nos: +632 4210768 / +639272157392

POSSIBLE SLOWDOWN IN OFW REMITTANCES HIGHLIGHTS FOLLY OF GOV'T ECONOMIC STRATEGY

The projected slowdown in remittances in the Philippines because of the US and global economic crisis highlights the folly of government's economic policies that excessively rely on overseas workers' income, foreign investment and debt.

This is the reaction of the International Migrants Alliance (IMA), the largest alliance of migrant organizations of various nationalities worldwide, whose leaders are in the Philippines to counter the intergovernmental-led Global Forum on Migration and Development (GFMD). According to Connie Bragas Regalado, the expected slowdown in remittances will not only be felt in the Philippines but in many countries whose governments rely on migrants' incomes to keep their economies afloat.

By the Philippine government's own admission, the current global financial crunch will likely affect the remittances of overseas Filipino workers (OFWs) as economies in host countries slow down and migrants' incomes and social benefits fall. However instead of providing so-called safety nets and continuing to promote migrant labor, government needs to create jobs seriously by focusing on building domestic agriculture and industry.

Global financial crisis will likely make situation worse for OFWs, said Regalado. "As in the past, employers use the crisis to cut salaries and benefits further, exploit migrants' desperation for work by offering lower pay as it is, and generally pass on the crisis on migrant workers through more abuses," she said.

OFWs also stand to face worse discrimination and xenophobia as they are made scapegoats for job losses in the host countries and accused of "stealing" jobs from nationals. "Migrant labor will be further cheapened and workers will be made to bear the brunt of businesses adjusting to more difficult times," said Regalado.

The Philippine government, whose track record in the exploitation of Filipino migrants is notorious around the world, is hosting the GFMD in end-October. "Migrants worldwide are denouncing the GFMD whose framework is to further promote the export of migrant labor especially in the face of the global crisis," said Regalado.

"As proven by the Philippines' experience, which puts labor export as its centerpiece economic program, this strategy is fast becoming bankrupt. What the country urgently needs is a sound domestic economic base that will provide genuine development for the country and jobs for its people," she said. #

The International Assembly of Migrants and Refugees is a gathering of migrants of various nationalities around the world who will gather in Manila on October 28-30 to speak out and oppose the Global Forum on Migration and Development (GFMD).

The IAMR is led by the International Migrants Alliance, the largest alliance of migrants worldwide, and Migrante International with the cooperation and support of Asia Pacific Mission for Migrants, IBON Foundation, Bayan Philippines, Asia Pacific Forum on Women, Law and Development, and Caram Asia.