One of the many popular culture of being an OFW or overseas Filipino worker is to send money to the philippines. Families of the OFWs are the ones that benefit from the money sent from other countries, particularly in the US. This practice of sending money from abroad is popularly known as remittances. The word remittances is usually associated with the money sent from abroad to the sender's respective family or friends. But there is a deeper meaning to the word remittance. And that is economic growth from foreign workers.
In more formal terms, the word remittance means a transfer of money by a foreign worker to his home country. But according to statistics, money sent home by migrants, one in particular are OFWs, constitutes the second largest financial inflow to many developing countries, exceeding international aid. According to 2006 figures, estimates vary between IFAD estimates of US$401 billion and the World Bank information from central banks at a more conservative US$250 billion. These figures are increasing by almost 30% year on year.
Remittance in Asia
A majority of the remittances from the US have been directed to Asian countries. Philippines is one of the many countries in which benefits from US remittances, having approximately 14 billion USD in the last statistics. Other countries such as India and China have also benefited from US remittances. Most of the remittances happen by the conventional channel of agents. Western Union and Money Gram are some of the most popular agents that OFWs use to send money to the philippines.
Uses of Remittances other than for economic purposes
OFWs would usually send money to the philippines in times of emergencies. During disasters or emergencies, remittances can be a vital source of income for people whose other forms of livelihood may have been destroyed by conflict or natural disaster. According to the Overseas Development Institute, this is being increasingly recognized as important by aid actors who are considering better ways of supporting people in emergency responses. For more information visit to our site at http://www.lbcexpress.com
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