OFW remittances to build buffer vs RP food insecurity – US report
By RODNEY J. JALECO
ABS-CBN North America News Bureau
WASHINGTON D.C. - A US congressional think-tank believes money sent home by overseas Filipino workers (OFWs) would insulate the Philippines from the threat of rising global food prices.
“Food security in the Philippines is projected to remain stable,” the US Congressional Research Service predicted in its latest report on Food Security in Developing Countries (2007-2017).
The report relied on data provided by the US Department of Agriculture Economic Research Service (ERS), and covered 70 developing countries around the world.
Overall, it said, “food and fuel price hikes, coupled with the slowdown in economic growth, are expected to hinder long-term food security progress”.
The CRS report was intended in part to guide the US Congress on possible international food aid requirements in the next 10 years.
“As a result of higher food prices and transportation costs, the amount of food aid provided by the United States has declined roughly 50 percent in the last five years,” the report noted.
It added this may force the US to focus food aid on only the most needy countries.
Asian grain harvests are expected to grow from nearly 476 million tons in 2007 to more than 517 million tons in 2017. But grains imports are also projected to rise from almost 19 million tons to over 23 million tons over the same period.
Philippine grains harvests are expected to grow from over 22 million tons in 2007 to nearly 26 million tons in 2017. Import needs, on the other hand, are expected increase from 3.8 million tons to almost 5 million tons during the same period.
The ERS report indicated that up to 20 percent of the Philippine population will suffer varying degrees of malnutrition.
The silver lining could come from OFW remittances. An estimated five million overseas workers sent home almost $15 billion last year, and this is expected to grow to more than $16 billion this year.
The report showed Filipinos, on average, devoted nearly 39 percent of income to food consumption – the 2nd lowest compared to India (33%), Vietnam (40%), Pakistan (45%) and Indonesia (47%). In contrast, Filipinos spent the lowest for “vices” like alcohol and tobacco – 1.9 percent compared to 2.9 percent for Vietnam or 6.1 percent for Indonesia, for instance.
“Higher food prices in 2007 and 2008 are not expected to significantly change the country’s food security situation because high levels of money sent by Filipino workers in the Middle East to support their families back home are expected to support the growing costs imports,” the report said.
ABS-CBN North America News Bureau
WASHINGTON D.C. - A US congressional think-tank believes money sent home by overseas Filipino workers (OFWs) would insulate the Philippines from the threat of rising global food prices.
“Food security in the Philippines is projected to remain stable,” the US Congressional Research Service predicted in its latest report on Food Security in Developing Countries (2007-2017).
The report relied on data provided by the US Department of Agriculture Economic Research Service (ERS), and covered 70 developing countries around the world.
Overall, it said, “food and fuel price hikes, coupled with the slowdown in economic growth, are expected to hinder long-term food security progress”.
The CRS report was intended in part to guide the US Congress on possible international food aid requirements in the next 10 years.
“As a result of higher food prices and transportation costs, the amount of food aid provided by the United States has declined roughly 50 percent in the last five years,” the report noted.
It added this may force the US to focus food aid on only the most needy countries.
Asian grain harvests are expected to grow from nearly 476 million tons in 2007 to more than 517 million tons in 2017. But grains imports are also projected to rise from almost 19 million tons to over 23 million tons over the same period.
Philippine grains harvests are expected to grow from over 22 million tons in 2007 to nearly 26 million tons in 2017. Import needs, on the other hand, are expected increase from 3.8 million tons to almost 5 million tons during the same period.
The ERS report indicated that up to 20 percent of the Philippine population will suffer varying degrees of malnutrition.
The silver lining could come from OFW remittances. An estimated five million overseas workers sent home almost $15 billion last year, and this is expected to grow to more than $16 billion this year.
The report showed Filipinos, on average, devoted nearly 39 percent of income to food consumption – the 2nd lowest compared to India (33%), Vietnam (40%), Pakistan (45%) and Indonesia (47%). In contrast, Filipinos spent the lowest for “vices” like alcohol and tobacco – 1.9 percent compared to 2.9 percent for Vietnam or 6.1 percent for Indonesia, for instance.
“Higher food prices in 2007 and 2008 are not expected to significantly change the country’s food security situation because high levels of money sent by Filipino workers in the Middle East to support their families back home are expected to support the growing costs imports,” the report said.
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