While labor migration has definitely contributed much to our country’s economic expansion, it took the government several years to even par-
tially admit having an explicit labor migration policy16 as a component
of its development strategy. Given an explicit policy, we must now embark on a more strategic approach of tapping labor markets for our workers and in maximizing returns to such migration. For example, more collaboration is needed among the government, private sector and the academe in the pursuit of strategic studies of global labor mar- kets to ensure adequate supply and production of Filipino workers for both international and local markets. Labor mismatches (the supply is unable to respond to both local and global demand) are a persistent problem pointing to market information and coordination failure. The government must definitely intervene and put sufficient resources in this regard.
Challenges
It is not surprising then that the last two Medium-Term Philippine De- velopment Plans (MTPDPs) do not contain explicit policy statements on harnessing this development potential from international migration. As mentioned above, this stems from the government’s difficulty in admitting to having a policy of sending workers abroad, thus making overseas migration a part of a development strategy (Opiniano, 2005; Opiniano, 2004a). This is because the continued migration of workers can also be seen as a result of failed governance and economic misma- nagement. It is testimony to an economy unable to provide enough jobs and income to its people. Worse, some economic analysts even contend that the benefits of labor migration have evolved into a “Dutch Dis- ease” for the country. It is a situation where the economy has become dependent on remittances for its sustained growth, and has created “moral hazard problems” in both household and state economic poli- cy-making.
However, a confluence of events domestically and globally is mak- ing overseas migration a lucrative option and a potent resource for the Philippines. Migration analyst Hein de Haas (2007) even argues that the increasing levels of development of poor countries will not stop migration as its rational workers continue to seek greater returns to their educational investments. The Philippine migration phenomenon,
16 It was only during Secretary Patricia Sto. Tomas’ term when the Department of
Labor and Employment explicitly mentioned targeting one million jobs abroad for our citizens.
inevitable as it is, must be harnessed to maximize benefits and to sup- plement domestic socio-economic development (Opiniano, 2004a). The government and other key stakeholders must institute various changes and reforms in our economy and politics to be able to do this. These necessary reforms include:
• The lowering of remittance costs and the improvement of the financial infrastructure in the whole country to be able to trans- form remittances into productive investment especially in the rural areas (Bagasao, 2005);
• A continuing reform (and increase in resources) of agencies re- sponsible for human capital development, e.g., in education, health and social welfare, so that OFW expenditures may lead to future productivity;
• The sustained improvement of our investment climate so that successful Filipino migrants will be encouraged to invest in the country and return migration will be maximized through bet- ter governance and peace and order situation;
• The formulation of better incentives packages for the return of skilled and professional Filipino workers who are already citi- zens of developed countries or are still toiling abroad (in terms of setting up businesses and access to credit, working for mul- tinational and local firms, providing technical assistance to government and NGOs, retirement havens);
• The improvement of labor market information and coordina- tion among key government agencies and stakeholders to en- sure that supply meets demand for global and local markets; and
• The setting up of efficient and effective mechanisms and insti- tutions to coordinate OFW networks with host countries in terms of market access and marketing the Philippines as an in- vestment and tourist destination (probably a multi-agency and multi-stakeholder cooperation).
The critical sectors mentioned above (e.g., agriculture, information and communication technology, and tourism) must also be ready to absorb increased investments and resources to maximize benefits for devel- opment. If these job-generating sectors fail to achieve the needed eco- nomic policy reforms to attract such resources, then their potentials for improving the lives of our people may come to naught.
Conclusion
The Philippines, considered a “migration economy,” sees her overseas- based citizens influencing many aspects of Philippine socio-economic, political and cultural life. Many stakeholders and sectors are keen to tap the benefits from overseas migration. The key is how the govern- ment will be able to lead and coordinate these various sectors in max- imizing the potential contributions of our diaspora. Government agen- cies that will play a role in this regard, i.e., the Departments of Labor and Employment, Trade and Industry, Foreign Affairs and Finance, the National Economic Development Authority, and the Bangko Sentral ng
Pilipinas (DOLE, DTI, DFA, DOF, NEDA, BSP), must be fully-equipped
with both financial and human resources to facilitate and effect such coordination. In addition, credible leadership in the higher echelons of the bureaucracy is needed to draw collaboration by other stakeholders. However, in the end, overseas Filipinos and their families are cen- tral to this effort of maximizing diasporic dividends. Migrating over- seas is a personal decision, and so are the ways in which OFWs utilize their resources and remittances. The best that stakeholders can do is to encourage them and offer viable options, and not dictate what they should do (Opiniano, 2007b). Government and other key players can only provide the right incentives and the proper environment so that they may contribute in optimizing the returns to overseas migration. OFWs provide for their families’ needs, and one can fervently hope that these migrants will also fulfill their roles in nation building.
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