OFWs urged to prepare for fallout from US financial crisis
By MA. ALETA O. NIEVA, abs-cbnNEWS
Overseas Filipinos are urged to be prepared for the effects of the global financial crisis and have access to safe and sound financial instruments where they can invest their hard-earned money.
“We better prepare. For now, it’s the US that is feeling the brunt. What if it spills over to other countries where there are Filipinos?” said Prof. Jeremiah Opiniano, executive director of the Institute of Migration and Development Issues.
Opiniano spoke in a conference on Managing the Development Impact of International Migration organized by the Philippine Institute for Development Studies (PIDS) Tuesday in Makati City.
”I am not an economist, but I guess there is a rule called the law of diminishing returns. So if one goes up, it will surely go down,” Opiniano said.
During his trip to a European country he noticed that some Filipinos have already felt the financial crunch. A train ticket, which used to cost 120 euros before, is now 160 euros.
“What more of the basic commodities?” he said. “As to how this would affect the migrants? Well, we better try to encourage them to handle their money well.
He issued a challenge to change the mindset of Filipinos, not just those overseas, to maximize whatever resources that they have.
Effects not yet determined
Meanwhile, Dr. Aniceto Orbeta Jr., senior PIDS research fellow also gave his thoughts on the impact of the financial crisis to overseas Filipinos.
“Di pa malalaman ‘yon (We can’t yet tell at this point)…very difficult. May crisis before, but migrants were not affected,” Orbeta said, pertaining to the previous crisis brought about by the war in Iraq.
“Pero sabi nga nila na, baka tip of the iceberg pa lang daw ito at di pa natin malalaman ang extent,” he said.
He explained that the crisis could also be taken as a way for some Filipinos, who are looking for a safe place to put their money, to transfer it to the Philippines.
Financial literacy
Remittances of overseas Filipinos have been seen to keep the economy stay afloat.
In 2007, remittances grew 13.2 percent to reach US$14.5 billion. The Bangko Sentral ng Pilipinas said the robust inflows resulted from continued demand for OFWs and improved delivery of financial services.
Deputy Director Rosebel Guerrero of the Department of Economic Statistics of the Bangko Sentral ng Pilipinas said OFW remittances in January to July 2008 reached US$9.61 billion.
Dr. Ma. Piedad Geron a microfinance consultant, urged financial institutions to offer “safe and sound financial instruments” for overseas Filipinos.
“Financial literacy is an issue of the day not because of what's happening worldwide in terms of the crisis but also because a lot of the families of OFWs would want to know where to put their money in,” Geron said.
She added that these financial instruments should also be made available not only from commercial banks since these institutions are far from where the families of OFWs.
“Financial instruments should be developed at the grassroots or financial institutions in the countryside,” she added.
Overseas Filipinos are urged to be prepared for the effects of the global financial crisis and have access to safe and sound financial instruments where they can invest their hard-earned money.
“We better prepare. For now, it’s the US that is feeling the brunt. What if it spills over to other countries where there are Filipinos?” said Prof. Jeremiah Opiniano, executive director of the Institute of Migration and Development Issues.
Opiniano spoke in a conference on Managing the Development Impact of International Migration organized by the Philippine Institute for Development Studies (PIDS) Tuesday in Makati City.
”I am not an economist, but I guess there is a rule called the law of diminishing returns. So if one goes up, it will surely go down,” Opiniano said.
During his trip to a European country he noticed that some Filipinos have already felt the financial crunch. A train ticket, which used to cost 120 euros before, is now 160 euros.
“What more of the basic commodities?” he said. “As to how this would affect the migrants? Well, we better try to encourage them to handle their money well.
He issued a challenge to change the mindset of Filipinos, not just those overseas, to maximize whatever resources that they have.
Effects not yet determined
Meanwhile, Dr. Aniceto Orbeta Jr., senior PIDS research fellow also gave his thoughts on the impact of the financial crisis to overseas Filipinos.
“Di pa malalaman ‘yon (We can’t yet tell at this point)…very difficult. May crisis before, but migrants were not affected,” Orbeta said, pertaining to the previous crisis brought about by the war in Iraq.
“Pero sabi nga nila na, baka tip of the iceberg pa lang daw ito at di pa natin malalaman ang extent,” he said.
He explained that the crisis could also be taken as a way for some Filipinos, who are looking for a safe place to put their money, to transfer it to the Philippines.
Financial literacy
Remittances of overseas Filipinos have been seen to keep the economy stay afloat.
In 2007, remittances grew 13.2 percent to reach US$14.5 billion. The Bangko Sentral ng Pilipinas said the robust inflows resulted from continued demand for OFWs and improved delivery of financial services.
Deputy Director Rosebel Guerrero of the Department of Economic Statistics of the Bangko Sentral ng Pilipinas said OFW remittances in January to July 2008 reached US$9.61 billion.
Dr. Ma. Piedad Geron a microfinance consultant, urged financial institutions to offer “safe and sound financial instruments” for overseas Filipinos.
“Financial literacy is an issue of the day not because of what's happening worldwide in terms of the crisis but also because a lot of the families of OFWs would want to know where to put their money in,” Geron said.
She added that these financial instruments should also be made available not only from commercial banks since these institutions are far from where the families of OFWs.
“Financial instruments should be developed at the grassroots or financial institutions in the countryside,” she added.
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