Pushpinder's unique posts: 05/01/2011

The approximately 175 million people live outside their country of birth, migrant remittances appear as a new strategy for poverty in developing countries. 1 This is a valuable financial resources to the poor, and help "stabilize irregular incomes and to build human and social capital" (World Bank). In the Philippines alone, nearly 10% of the population works overseas. The country became the third largest migrant-sending countries in addition to Mexico and India, more than 7.5 million Filipinos living and / or working abroad. In 2003, USD 7.6 billion in remittances were recorded that flowed through formal channels to the Philippines.

But this amount, so that only half of what is actually sent or received because of remittances through unregulated channels. 2 In the more than three decades, foreign workers have become the pillars of the economy. If transfers are indeed a vital instrument for creating wealth in the poorest circumstances, why is the Philippine economy, once one of the strongest in Asia, now ranks near the bottom? How exactly remittances help migrants' families back home? Remittances have a direct impact on families, as well as indirect effect on the country. The economic situation has improved a lot of Filipinos because they were the breadwinners earned overseas earnings many times over what they might achieve in the Philippines.

Over the years, a significant proportion of Filipino families have relied on foreign remittances of income or main source of income abroad. Remittances, consumption will be spent with family, like education, health and housing, etc. This is a destructive behavior has its multiplier effects, which contribute to human development. Migration can also relieve the burden on the Government of the Philippines, the high unemployment rate, which recently hit 12.4%, remittances act as a buffer while the current account deficit and the country's reserves at the time crisis.3 Should also recognizes the importance of remittances in reducing poverty, too much depends on the "diaspora" has left no downsides to the test.

The question remains as to the benefits of migration to offset the cost of the sending country, such as the brain drain and the social disruption of families. The drain is often the best and the brightest - industrious and skilled workers, engineers, teachers and entrepreneurs, mothers and fathers - in the home country reduces the country's capacity for long-term economic growth and human development. OECD countries as a whole, there are about 3 million immigrants with higher education. He suggested that if I say costs U.S. $ 20, 000 to educate someone on this level, then the total wealth of poor countries to rich countries is now around 60 billion USD. 4

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Monday, May 2, 2011

Remittances and International Aid - How to Make Them Work?

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