June 19, 2013

Reverse Migration?

The discussion about reverse migration has interested me to think if the phenomena do exist to date in the Philippines. The later could be true or the other conclusion would be more acceptable; that is, the demand for low skilled OFWs are starting to slow down. To explain further, it could happen that OFWs are returning to our country because their employers no longer needs their service or it might happen that their employers are cost cutting. The scenarios are both possible as global economies slow down.

We can only consider the phenomena as reverse migration if the motivation of OFWs in coming back to our country is foreseen good opportunities in terms of livelihood or the desire to retire and used their saved money in support for their remaining life time. In passing, in the hike of high unemployment, most likely, this should not be the case.

Well, it might happen that a portion of OFWs abroad are already retiring and already heading back to our country. Yet, it is still good to examine the "what ifs". What if majority of the migrants that are coming back to our country are not retirees but employees who loosed their jobs abroad? What can the government, private sector, and non-government organization can do?

The problem should be examined carefully as this might affect our economy as a whole; specifically the poverty incidence and, if become too serious, our balance of payment.

One solution which is seen to solve this problem is to encourage more investment which will create more jobs. In order to do this, we must first create an environment that is conducive to investors.

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