OFWs and Philippine agriculture

OFWs and Philippine agriculture
Posted: 3:23 AM Aug. 05, 2005

Ernesto M. Ordoñez
Inquirer News Service

(Published on page B2 of the Aug. 5, 2005 issue of the Philippine Daily Inquirer)

HOW big is the connection between overseas Filipinos and Philippine agriculture?

Today, it is small but a project proposed by a Filipino businessman currently living in the United States can change that. The good news is that this project can succeed without government support, though government assistance will always be welcome.

Background

In an e-mail group last week, a La Salle alumnus wrote, "Do you know that the combined income of the Filipinos in the United States is more than the gross domestic product (GDP) of the entire Philippines?" He said there were 1.4 million registered Filipino workers earning an average of $70,000 a year, as against the per capita GDP of about $1,000 a year for our 88 million Filipinos here.

The Commission on Overseas Filipinos said that as of December 2004, there were 2.7 million Filipinos in the United States. This makes credible the claim that there are 1.4 million workers in the United States who are earning income. This is because both man and wife in a Filipino family there are working.

If we use the same ratio that approximately half of registered overseas Filipinos are earning income, then as many as four million out of the eight million overseas Filipinos are in this category. It cannot be denied that the 4 million overseas Filipinos definitely earn more than the country's entire GDP. This is where badly needed help for Philippine agriculture can come from.

Where remittances go

The Filipino businessman, who prefers to remain anonymous, said Filipinos in the United States invariably send money home, mostly to relatives. Though some of these remittances go to worthwhile causes such as tuition support, these funds are sometimes spent for unproductive activities such as gambling and drinking.

This is why many overseas Filipinos would rather contribute to productive projects. And while charitable works are liked, there is a desire to contribute to sustainable economically productive endeavors. They not only want to give fish, they also want to contribute to teaching people how to fish.

There are, however, two obstacles. First, they do not know the people who can teach their intended recipients "how to fish" or how to make a livelihood activity productive and profitable. Second, they do not personally know the recipients sponsored by the many organizations that ask for funds from them. Thus, they are reluctant to donate to these organizations.

The proposed project addresses both obstacles.

Alyansa Agrikultura

The Alyansa Agrikultura [Agricultural Alliance], composed of 39 national and local federations of farmers and fisherfolk in the country, is proposed to address the first obstacle. Though its members have their own outreach livelihood programs, they are limited in helping start small businesses because of lack of capital.

Going to banks is difficult because of lack of collateral, while relying on 5-6 loan sharks often means failure because of the 240-percent average annual interest rate. The funds from abroad proposed in this project will allow them to expand their program of transferring technology, ensuring markets, and generally making the livelihood projects successful.

The Alyansa Agrikultura members will provide guidance at no cost. They will even incur the obligation of helping ensure that the fund recipient gives quarterly progress reports to the donor. This has the added benefit of monitoring fund use to ensure that the funds are not used for non-productive purposes.

The second obstacle is also addressed by this project. The overseas Filipino will identify his or her intended recipient, usually a relative. The money will go directly to him or her, provided he or she identifies the project as well as the "big brother" or "big sister" from groups like the Alyansa Agrikultura. This way, the chances of success will increase. The project can then generate income for the recipient's needs.

Forum

Already, this Filipino businessman has identified several Filipinos in the United States who want to contribute to this project. Several Alyansa Agrikultura member-organizations have likewise expressed their support.

Albert Lim, president of the National Federation of Hog Raisers Inc. with its 34 associations nationwide, said, "This will certainly help our outreach program because of the additional grant funds."

Gregorio San Diego, president of the United Broiler Raisers' Association said, "This will be an added boost to the growth of the small broiler industry, which can benefit from new players using better technology."

Arsenio Tanchuling, a convener of the Kilusang Mangingisda [Fisherfolk Movement], said, "With this project, we can teach nontraditional technologies, such as crab fattening, seaweed culturing, and 'ginamos' making."

On Thursday, Aug. 11, the Alyansa Agrikultura is sponsoring a forum on this topic. This will be held at 1:30 p.m. at the Philippine Social Science Center Conference Room on Commonwealth Avenue, Quezon City. Interested parties in linking overseas Filipinos and Philippine agriculture may call +632 8516635 if they wish to attend.

The author is the chairman of Agriwatch, a private sector initiative. For inquiries and suggestions, e-mail agriwatchphil@yahoo.com or call or fax +632 8516635.