RP, Italy officials tackle ways to enhance OFWs’ remittances

GMANews.TV
Article posted May 21, 2009 - 03:19 PM

MANILA, Philippines — Officials from the Philippines and Italy met with members of the Filipino community in Italy to discuss ways to enhance the development potential of their remittances.

The International Organization for Migration (IOM) said the meeting opened Wednesday in Rome, and had representatives from international groups.

“Representatives from international organizations, NGOs and the private sector are also attending the two-day meeting, which opened ... in Rome, to identify best practices that will encourage the investment of remittances in activities that will stimulate growth and employment in the Philippines," the IOM said on its website (http://www.iom.int/jahia/Jahia/media/press-briefing-notes/pbnEU/cache/offonce?entryId=25007).

IOM said the meeting is part of a program funded by the European Commission and carried out by IOM Manila to improve the knowledge of remittance corridors, enhance the development potential of remittances through inter-regional dialogue through the setting up of pilot projects in Southeast Asia and Europe.

Some 8.73 million Overseas Filipino workers (OFWs) remitted $16.4 billion in 2008, representing 9.7 percent of the Philippines’ gross domestic product (GDP).

However, the global financial crisis has led to a reduction in the number of Filipinos deployed abroad and to a slower growth rate of remittance inflow, with a 2 per cent recorded growth in February 2009 compared to 13 per cent annual growth recorded in 2008.

At the meeting, preliminary findings of an ongoing IOM research project on remittance flows between Italy and the Philippines were to be presented.

The IOM said the research showed 72 percent of Filipinos in Italy send money home on a monthly basis, with 63 per cent saying they remit 350 euros (P22,739.64) a month.

Some 40 percent of the respondents said they had been sending money home for more than 10 years, with women on average remitting more money than men.

When asked about their future plans, 55 per cent of respondents said they wanted to bring their families to Italy, although 91 percent said they planned to retire in the Philippines.

Some 26 per cent of the interviewees confirmed they had invested money in rotating and savings associations (paluwagan) and 38 percent had invested in cooperatives and in rural banks.