Philippines Overseas Worker Program: An Economic Blessing or Curse
Naval War College Newport United States
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As part of a long-standing government-sponsored program, millions of Overseas Filipino Workers OFW send billions of dollars a year in remittances back to their home country, accounting for 10 of gross domestic product. This paper argues that by normalizing export labor, the country has become dependent on OFW income at the expense of sustainable development achieved through reduction of income disparity and mobilization of the workforce toward domestic production. It takes a balanced look at the appeal of the overseas work program set against the social costs imposed on workers and their households and varied misalignments toward domestic development. Using research gathered from economic texts and migration experts, it reveals the underlying structural problems with labor exportation, concluding with a discussion of the economic rise of South Korea juxtaposed to the Philippines relative stagnation.
- Personnel Management and Labor Relations
- Economics and Cost Analysis
- Government and Political Science