Financial Literacy Campaign and the Philippine Government


by Juan E. Dayang, Jr and Arnel G. Talisayon

President Benigno Aquino III, who promotes job creation rather than emigration, confers with Vice President Jejomar Binay during the 2010 Model OFW Family of the Year Awards rites in Manila (photo: Ryan Lim, GMA News).

Government Promotes  “Culture of Savings” to OFWs[*]

The number of Overseas Filipino Workers  (OFWs) has reached more than 10% of the Philippine population. The Philippines is among the top  receiver of remittances in 2010 with approximately $18.76-billion total. The remittances of Overseas Filipinos substantially help the Philippine economy and provide enough buffer for the country to weather financial  shortfalls.

This phenomenon of labour migration has become so widespread that one out  of every ten Filipinos is a migrant worker. Almost half of the total Filipino population depends in some way on the earnings of a migrant worker relative. The Philippine Government has therefore made it a point to safeguard the basic rights of the Filipino OFWs and to promote their welfare.

Nevertheless, the sustainability of this reliance on foreign remittances has been criticized time and again. Among other reasons, there appears to be a phenomenon where OFWs and their families left back home fail to improve their quality of life in the long-term, giving rise to a so-called temporary middle-class: while one member of the family works abroad, the rest of the family members enjoy substantial material comforts. This sense of sufficiency and security immediately stops as soon as the OFW finishes one’s contract and returns home.

The family then regresses to square one—at least until another family member packs and leaves to work abroad.  According to Overseas Workers Welfare Administration (OWWA) Officer Esperanza Cobarrubias, a glaring similarity in many cases is the wanton lack of savings as the remittances are used up for material acquisitions (expensive mobile phones, cars or entertainment systems) in keeping with the newfound middle class status.

Due to this phenomenon, the Philippine government had launched a financial literacy campaign to help educate OFWs on the proper way to invest their dollars and become Overseas Filipino Investors or OFIs—a positive retake on OFWs. This campaign emphasizes sound financial management in order to become better decision makers, the first step towards which is increasing awareness about setting aside  portion of one’s income for future use or, in other words, saving.

In response, the Central Bank of the Philippines (BSP) has undertaken a nationwide “Financial Literacy Campaign.” Since February 2006, the BSP has been providing resource persons and other logistics requirements to teach entrepreneurship and investments in different financial instruments and has extended this campaign to 24 cities and provinces.

The BSP has in fact launched the first of its international road shows in Hong Kong on September 14, 2008. According to the BSP, the whole-day forum underscores the importance of savings and informs participants of alternative opportunities for their remittances, such as placements in financial instruments and investments in business ventures.

“Financial education is key to unlocking the potential of remittances as a tool for development in countries like the Philippines with a large segment of the population employed overseas,” said BSP Governor Amando M. Tetangco, Jr. The program also hopes to prepare Overseas Filipinos for their eventual reintegration into the country. The BSP continues to bring its campaign to countries with a large concentration of overseas Filipinos, such as Singapore, Japan, Italy and Saudi Arabia.

The Philippine government, under President Benigno C. Aquino III, continues to underscore the need for financial education among overseas Filipinos. Thankful for the invaluable contributions of OFWs to the Philippine economy yet aware of the challenges of migration, it has consistently emphasized financial literacy as a key component in shoring up the economy and mitigating the social impacts of migration.

Note:

The Financial Literacy Campaign  of the Philippine Embassy in South Korea was initiated in 2008 by then Consul and Second Secretary Juan “Jed” Dayang, Jr. with the Philippine Overseas Labour Office-OWWA’s then Welfare Officer Esperanza Cobarrubias and  Commercial Counsellor Edgardo Garcia.   Arnel,  consul and second secretary at Embassy in Seoul  coordinates  the Financial Literacy Campaign (FLC)  to OFWs in South Korea. The FLC remains the flagship project of the Embassy under leadership of Ambassador Luis Cruz.


[*] Updated by Jed from the co-authored original publication by  Jed Dayang and  Arnel G. Talisayon, “Financial Literacy Campaign and the Philippine Government,” Embassy News(2008), http://www.philembassy-seoul.com/forms/Vol_1_Special_Issue.pdf.

For more details on the program of BSP, see: Financial Education Master Plan (FEP) Vision – Financial Education: Building Block for a Stronger Economyat: http://www.financial-education.org/document/3/0,3746,en_39665975_39667065_40280579_1_1_1_1,00.html

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  1. August 24, 2011 at 6:28 am

    From OFWs to OFIs. I like the sound of that! Keep blogging. 🙂

  1. September 17, 2011 at 1:37 am
  2. September 24, 2011 at 11:06 am

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