In defense of OFW’s: “Walang ganyan sa States”

October 12, 2008 by reyna08
Filed under: Business & Economy, Career & Education, La vida loca and OFW Life & Issues

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My entry today is in response to a comment left by a certain ?pobreng_obrero? which irked me, over at Salve?s Money Smarts Blog, incidentally on the very feature of my blog article. Here?s what ?pobreng_obrero? has to say: (please click the thumbnail)

Now, I will highlight the comments to OFW?s which I will clear up and respond.

) What better place to prosper than in your home country. Remember, we?re a developing economy?opportunities abound for those with the right attitude, and who know where to look.
) OFWs always tout themselves as ?major income source for the Phlippines? but in reality they practically don?t pay taxes and most of their remittances go straight to CONSUMPTION instead of investments and savings.
) No real homegrown products are being developed from those billions of dollars of so-called liquidity.
)As a Filipino, if you have no participation in our country?s homegrown development, you should at least have the delicadeza not to criticize it. Remember the TV commercial where a dollar-earning ?balikbayan? laments the poor state of our country?s roads by saying ?Walang Ganyan Sa States??no big surprise because she pays her taxes abroad and not here!
) OFWs with such an attitude should apologize to the ?pobreng? peso-earning salaried workers who pay taxes every 15th/30th of the month so that they could use our ?bulok? roads and on their way to Duty Free Shops.

Let me try to explain so that other people who have pobreng_obrero’s mentality will understand.

Now, let me start with the available information I have. This is 2006 and I don’t have any 2007 numbers. In 2006, Overseas Filipino Workers remitted a total of $12 billion glittering US Dollars to the Philippines. Eto po sya shown by top ten sources by country. If you look, almost 60% of which comes from the US and only 10% is coming from Saudi, followed by Canada at 5%.

Today, our remittances is averaging about $16 billion more or less. To top it off, what I found out in 2006 was that OFW’s continues to find jobs outside of the Philippines. You will find my findings in this entry: Are OFW’s coming home? You will find out that the bulk of OFW remittances comes from North America.

Now let’s go back to pobreng_obrero on point number 1: He claims that there is no better place to prosper than in your home country.

What surprises me is the big insensitivity of this statement if you consider that sentence with the rest of what he wrote. I don’t question that it is very fulfilling to prosper and be successful in our own country. In my next entry, I will tell you about my very close friends who became very successful in Manila that they are now the ones visiting me in the United States. But here is my point - in general - there is not that much opportunity for all Filipinos. Where have you been pobreng_obrero? Do you ever see the long lines of job applicants for just one (1) McDonald’s position or Jolibee’s? Do you think we would be willing to be separated with our loved ones just to prosper in Manila when we know that there’s nothing there for us? I will cut this short. Instead, I want you to read this heavily commented entry from Overseas Filipinos around the world. What made you decide to work abroad and where?

Point number 2 is practically an economic, finance, taxes and social culture ignorance. He claims that: OFWs always tout themselves as ?major income source for the Phlippines? but in reality they practically don?t pay taxes and most of their remittances go straight to CONSUMPTION instead of investments and savings.

First, let me put aside what’s true. What’s true is that OFW’s are one industry in itself, bigger than the $10 billion a year steel industry in the United States. We are now remitting over $16 billion glittering dollars. Second, let me teach you about some basic taxation. Our earnings are already taxed where we work. Depending on what country you work, the taxes could vary. From very small (Middle East) to very high (Europe or America’s). If in 2006, there’s about 10% of the population as OFW’s and based on my findings, OFW’s continues to grow, add that to the newly minted Filipinos because of the dual citizenship, how many of us do you think to fight against taxing our remittances? I could honestly tell you that Reyna Elena will be at the forefront of the fight. Pinupugutan na yong mga kasamahan ko, pati lalaki ni-re-rape, yong mga seaman, dinudukot, yong mga Pinoy sa Afganistan di ko alam kung natutulog taz ita-tax mo pa kami? If the Philippines will tax our remittances, what do you think we will do? Normal human reaction. We will limit or stop or withheld our remittances. Do you know the implication? It goes this way:

We send less or stop sending remittances to the Philippines.
People in the Philippines have less money to spend.
With less money to spend, people are not buying.
With people not buying, factories are not producing.
Factories are not producing because there are no orders.
When factories are not producing, it creates unemployment.
When you have unemployment, you have a restless society.
When you have a restless society, people kick out those in the government.
With less money, there is less savings and investments in banks.
With less money in banks, they can’t lend for infrastructures or projects.
If no lending on projects, more unemployment.

Do you see the connection? Am I clear with my explanation? Now, OFW remittances shielded the Philippines from the Asian Financial crises in 1987 and 1988. OFW remittances is what’s making our economy work. All these while we are separated from our loved ones back home. Why? Because people are spending. You want to tax our remittances? Think about your plan and sell it on Ayala Avenue. Let’s see who get’s stoned.

Point number 3 is the same as number 2. Blatant financial and economics ignorance. He claims that; No real homegrown products are being developed from those billions of dollars of so-called liquidity.

Let me start with the basics once again. Because we send money to the Philippines to the tune of $16 billion:

Banks have a lot of money or “liquidity”, therefore they can make loans.
Who do they loan to? Housing developers.
What do they do? Build condominiums.
When you build condominiums, you provide employment and create orders.
When you create orders, more employment is created because the factory will run.
When factories run, more employment.
Because everybody is productive, more taxes for the government. If they steal it, is another story.
With so many condominiums and houses, OFW who’s got the money buys up more.
The more OFW’s buys these condo’s the cycle of economic activity continues.
People are happy. The malls are busy. The restaurants are busy. The karaoke are blasting like crazy. Even prosties are happy.

Are you getting my point very clearly pobreng_obrero? That’s your liquidity at work all through the sacrifices of OFW’s.

I don’t know what to do with your Point number 4. Kainis.

Do not ever underestimate our contribution to the economy as OFW’s. Do you know of any OFW who hates the Philippines? If you know one, dalhin sa Reyna at bigbigyan ko nang pagkahigpit higpit na hugs and kisses.

The last point is pure ignorance once again on taxes and finance. It’s a very dysfunctional way of thinking. The thinking goes like this: The Filipinos back home are the ones paying for the taxes and so therefore, we as OFW’s should not complain about the current predicament of infrastructures because we don’t pay taxes.

Please refer to my answer above on Point number 3 - liquidity issue because it’s the same. My point that I will tell you is this: if we have a very very sorry infrastructure, it’s because those people responsible to make them a priority IS NOT THEIR PRIORITY. Blame it on corruption which is by far the biggest single expense of the government. Don’t blame it to OFW’s remittances that is not being taxed. If we only have decent politicos who will truly make good their noble reason to be there in the government: to serve the people, then maybe there would be no OFW’s.

Let me no forget, Cat, has a very good explanation to you:

Obviously you are ignorant how economy works and how the billions of dollars remitted help in the export and import businesses in the Philippines and in payment of debts in dollars. Your tycoons and big businessmen offshored some of their operations to china, Australia and Vietnam. in the process, incoming dollars from these operations are deposited in foreign countries depriving the Philippines the dollars it need in dealing with its international financial and business affairs. many politicians salt their dollars, buy real estate in other countries and send their children abroad to protect their money in case of political upheaval like what happened during marcos time. the Country needed the dollar reserves to fund the importation of raw materials for their production. Many of these industries are export-oriented. no dollars, no materials?no materials..no exports?.no exports?no income from these industries?no employment etc. it is a domino effect. Without dollar reserves, our own BSP has to buy dollars using our pesos and therefore affecting the exchange rate of pesos. sometimes our ignorance make us look dimwits. if you are not sure, make your comment in question form. i will be glad to answer them.

The true sacrifices of not only Overseas Filipino Workers but also Overseas Pinoys as immigrants are very real my dear amigos and amigas and their remittances to the Philippines ay wag na wag i-ismol-ismolin. You only need to see your surroundings what our remittances has done to the country. Now, how the politicians use them for the good of every Filipino is beyond us.

Finally, I have a very deep admiration to all the Overseas Pinoys, immigrants and workers alike, because I know what they go through and I have an appreciation when I see their smiles or tears. We work hard for our money at some very very difficult compromises in life. We are not out here to steal some thunder or glory from other sectors. We’re just another ordinary Filipino trying to make a decent living who hopes to come back soon. It just happens that we are outside of the country.

Tags: OFW, Overseas Filipino Workers

Comments

40 Comments on In defense of OFW’s: “Walang ganyan sa States”

The Ca t on Sun, 12th Oct 2008 2:42 am

Ewan ko ba reyna bakit may mga taong galit na galit sa mga OFW o mga umalis sa Pilipinas. Kulang na lang tawagin tayong traidor. Kanda feeling nila sila ay mga martir dahil sila ang nagpaiwan sa Pinas. Marami nga na ganoon pero yong iba naman ay dahil talagang hindi sila makaalis but given the chance baka kahit sumabit sa eruplano gagawin.

Kung ang mga traydor ay kagaya natin na ang mga pinampukpok sa \matitigas na ulo ng pinaaral nating mga kamag-anak para makatulong naman sa kanilang pamilya ay mga sapatos na ang halaga ay pwuedeng ibili na ng isang traysikel o kaya ng ating mga
damit ay katumbas na ng pagkain sa isang taon kung ating pagtitiyagaang gatungan ang copra para maipagbili, hayaan na nila akong tawaging traydor.

Ang mga pinag-aral natin ay kikita…ang kanilang kikitain ay pakikinabangan ng pamilya…sila naman ang magpapaaral samantalang ang mga sumisigaw na bumalk na ang mga OFW sa sariling bansa ay halos hirap pang tulungan ang sarili nila.

ALisin mo na kasi ang sulda ng korona mo at maipambato ko ala boomerang, ngekngekngek.

The Ca t’s last blog post..It is all in the Team

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In defense of OFW’s: “Walang ganyan sa States”

Comments

40 Comments on In defense of OFW’s: “Walang ganyan sa States”

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