There's a lengthy feature in today's New York Times Magazine detailing the reliance of the Philippine economy on the remittances sent home by overseas workers. Again, this third aspect of globalization through migration--the movement of persons instead of capital and trade--gets less attention though it probably shouldn't:
About 200 million migrants from different countries are scattered across the globe, supporting a population back home that is as big if not bigger. Were these half-billion or so people to constitute a state — migration nation — it would rank as the world’s third-largest. While some migrants go abroad with Ph.D.’s, most travel as Emmet did, with modest skills but fearsome motivation. The risks migrants face are widely known, including the risk of death, but the amounts they secure for their families have just recently come into view. Migrants worldwide sent home an estimated $300 billion last year — nearly three times the world’s foreign-aid budgets combined. These sums — “remittances” — bring Morocco more money than tourism does. They bring Sri Lanka more money than tea does...Given the rather bleak economic prospects in many parts of the Philippines, a significant part of its population has gone abroad to find better fortunes or is contemplating doing so:
Earlier waves of globalization, the movement of money and goods, were shaped by mediating institutions and protocols. The International Monetary Fund regulates finance. The World Trade Organization regularizes trade. The movement of people — the most intimate form of globalization — is the one with the fewest rules. There is no “World Migration Organization” to monitor the migrants’ fate. A Kurd gaining asylum in Sweden can have his children taught school in their mother tongue, while a Filipino bringing a Bible into Riyadh risks being expelled.
With about one Filipino worker in seven abroad at any given time, migration is to the Philippines what cars once were to Detroit: its civil religion. A million Overseas Filipino Workers — O.F.W.’s — left last year, enough to fill six 747s a day. Nearly half the country’s 10-to-12-year-olds say they have thought about whether to go. Television novellas plumb the migrants’ loneliness. Politicians court their votes. Real estate salesmen bury them in condominium brochures. Drive by the Central Bank during the holiday season, and you will find a high-rise graph of the year’s remittances strung up in Christmas lights...I highly recommend reading the whole piece if you are interested in migration matters. In particular, how the Philippines deals with this largess is a key question:
Nearly 10 percent of the country’s 89 million people live abroad. About 3.6 million are O.F.W.’s — contract workers. Another 3.2 million have migrated permanently, largely to the United States — and 1.3 million more are thought to be overseas illegally. (American visas, which are probably the hardest to get, are also the most coveted, both for the prosperity they promise and because the Philippines, a former colony, retains an unrequited fascination with the U.S.) There are a million O.F.W.’s in Saudi Arabia alone, followed by Japan, Hong Kong, the United Arab Emirates and Taiwan. Yet with workers in at least 170 countries, the O.F.W.’s are literally everywhere, including the high seas. About a quarter of the world’s seafarers come from the Philippines. The Greek word for maid is Filipineza. The “modern heroes” send home $15 billion a year, a seventh of the country’s gross domestic product. Addressing a Manila audience, Rick Warren, the evangelist, called Filipino guest workers the Josephs of their day — toiling in the homes of modern Pharaohs to liberate their people.
The downside is the risk of dependency, among individuals waiting for a check or for rulers (like Marcos) who use the money to avoid economic reforms. The cash could have a stultifying effect, like the “curse” of too much oil. No country has escaped poverty with remittances alone. “Remittances can’t solve structural problems,” said Kathleen Newland of the Migration Policy Institute, a Washington research group. “Remittances can’t compensate for corrupt governments, nepotism, incompetence or communal conflict. People have finally figured out that remittances are important, but they haven’t figured out what to do about it.”