The Economic Contributions of our Modern Heroes

Our Overseas Filipino Workers (OFWs) are dubbed as “modern heroes”. This is because of the remittances they make every day which increase our foreign reserves. Our foreign reserves are used for settling foreign debts and enables the BangkoSentral ng Pilipinas to print and circulate more money in the economy.

Since the passage and enactment of The 1974 Labor Code of the Philippines (under then Presidential Decree 442), more and more Filipinos choose to work abroad every year (Philippine Statistics Authority). Along with the increase in the number of OFWs is the significant rise in the amount of their remittances. In fact, in 2011, the remittances sent by OFWs to their families totalled 20.11 Billion US Dollars or 871.25 Billion Pesos. While last year (2015), OFWs sent a total of $26.92 billion (P1.20 trillion) back (GMA News Online).

In addition to their remittances, OFWs also contribute to the economy by increasing the gross national income (GNI). The GNI represents the gross domestic product (GDP) after net primary income from abroad has been accounted for (Philippine Statistics Authority). The Philippine Statistics Authority further reports that in 2011, the compensation income of OFWs which include overtime premium, holiday premium and clothing, laundry, medical, and other special allowances has been accounted to have a nominal value of 3.35 billion, contributing 26 percent to the total GNI, which significantly improved the same.

The remittances and compensation of OFWs are deemed to have substantially contributed to the growth of our national economy which hit 4.7 percent annually from year 2000 to 2011.

These are the primary contributions of OFWs to our economy which do not improve the lives of their families alone, but of our nation as a whole.

References:

GMA News Online. "INFOGRAPHIC: Where $26.92B of OFW Remittances Come from." GMA

News Online. 9 June 2015. Web. 24 Feb. 2016. <http://www.gmanetwork.com/news/story/500918/money/infographic-where-26-92b-of-ofw-remittances-come-from>.

Philippine Statistics Authority. "NSCB - “Counting and Monitoring the Contribution of OFWs."

NSCB News. Web. 24 Feb. 2016. <http://www.nscb.gov.ph/beyondthenumbers/2012/10082012_jrga_ofw.asp>.

Top 10 Challenges Confronting OFWs

                                 Photo Credit to Philippine Daily Inquirer (2015)



Most of our countrymen have the notion that Overseas Filipino Workers (OFWs) lie in bed of roses abroad. It is out of common knowledge that they actually experience a lot of challenges overseas. 

Here are the top ten challenges faced by our kabayans in pursuit of providing a better life to their families:

1. Illegal recruitment. Despite leaving our country with heavy hearts, OFWs keep high hopes for their plight only to find out that they have traded their money, possessions, family, and life for nothing. This is one difficult situation for OFWs and most choose to stay in the foreign land and look for part-time jobs instead of returning to their families empty-handed.

2. Employer abuse. Only few fortunate OFWs were spared from this suffering. The sad fact is this springs from lack of assistance from OWWA and from the recruitment agency. In addition, foreign laws also have no statutes for the protection of foreign workers. Most common forms of abuses include physical, verbal, and sexual.

3. Homesickness. This is actually the most difficult to combat psychologically.  For this reason, some OFWs spend lavishly to relieve their loneliness, others engage in forbidden affairs, and a few consummate their income on amusement.

4. Burden of having broken families. Since they are working far away from home, families of OFWs complain of lack of emotional support from their OFW kin and usually feel abandoned. Children of OFWs most often do not understand the sacrifices of their parents yet.

5. Lack of support from embassy and consular officials abroad. OFWs report unresponsiveness of embassies and consulates which could sometimes be attributed to distance of the OFWs place of work from the former or simply attributable to the lack of interest of the said officials.

6. Deception from fellow OFWs. Because of the feeling of solitude, most OFWs seek the company of fellow Filipinos. However, some OFWs entrust too much to their comrades, especially money and possessions, only to find out that they were defrauded.

7. Decreasing exchange rate of peso, OFWs mourn for it. OFWs’ families would benefit more if the power of foreign currency is superior to peso since it means more fund for education, food, and shelter, along with others.

8. Natural calamities and disasters abroad. As aforementioned, risking one’s life is indispensable from becoming an OFW. The number of OFWs who died from tsunamis, earthquakes, terrorist attacks, wars, and other incidents abroad continues to rise.

9. Prone to frame ups. Several OFWs claim being framed up by their employers for crimes they did not commit. And since they have no relatives abroad and receive only a petty help from the government, the depression and trauma experienced by OFWs is undesirable and sometimes intolerable.

10. The risk of being included in massive lay-offs during unfavourable economic conditions also challenges OFWs. Since foreign countries would prioritize their natives when it comes to employment, OFWs are at risk for being laid off and sent home. 

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