26 January 2008 Davos, Switzerland – Foreign Affairs Secretary Alberto G. Romulo called on greater global cooperation in remittances to “fully harness the development potentials of migration”.  

Speaking at the West-Islamic Dialogue session on Migration and Remittances held at the World Economic Forum here, Secretary Romulo pointed out that “Migration can be seen as a shared opportunity for growth.”

 Citing studies made by the World Bank, Secretary Romulo pointed out the collective contribution of migrants to the global economy and to the growth of their respective economies.

 “The world’s migrant workers sent home US$300 billion in remittances in 2006.  This is triple the world’s combined development assistance budget in the same year,” said Secretary Romulo at the session.

 The figure draws level with foreign direct investment and collectively represents the largest source of foreign exchange for many countries. 

 The World Bank has estimated that it the number of migrants raises the workforce in high-income countries by 3% by 2025, this would lead to an increase in global real income by 0.6%, or about US$356 billion.

 “These remittances have helped raise education levels, cut poverty rates, increased consumption, allowed purchases of real estate assets, financed public projects and have been channelled into SME investments,” explained Secretary Romulo.

 “In the Philippines – as in many other developing countries – remittances loom as large a share of the economy.  In fact, in the Philippines, remittances have grown from 3% to 10% over the past ten years as a share of GDP,” pointed out Secretary Romulo.

 Last year, Overseas Filipino Workers sent back an estimated US$15 billion in remittances.

 Secretary Romulo pointed out that through greater cooperation in the transmission and use of remittances, growth can be sustained for the benefit of sending and receiving states.

 Secretary Romulo cited a study made by Washington-based Migration Policy Institute that ““a creative approach” can help maximize economic benefits for both sending and receiving states.

 These include, at the national level, “long term-financial literacy programs, reduction of remittances fees and investment alternatives to sustain the economic viability of migrant workers and their families,” said Secretary Romulo.

 “Effectively harnessing remittance flows positively contributes to another development goal – the maintenance of security, particularly the thwarting of terrorist financing” Secretary Romulo told reporters after the session.   

 “Developed nations can help support these initiatives,” said Secretary Romulo.

 Secretary Romulo identified cooperation in lowering the cost of remittances providing mechanisms to maximize remittances for personal, community and national economic development and facilitating skills transfer as “concrete areas for possible collaboration.”

 “In addition, we need to continue working together through fora such as this so that we can continue to move forward together,” added Secretary Romulo.

 Romulo announced during the session that the Philippines will host this year the 2^nd Global Forum on Migration and Development (GFMD) in October. 

 Romulo invited participations of the session to the Manila GFMD saying, “our vision is to turn the spotlight on the human face of migration while maintaining the focus on development.” END