Monday, 16 April 2007

Strong peso hurting OFW families, small businesses, new jobs

By Victor S. Barrios
INQUIRER.net
Last updated 03:24pm (Mla time) 04/16/2007

Philippine authorities have been trumpeting the country’s economic performance and the major role of OFW remittances. Policy makers cite the significant impact of remittances in fueling personal consumption expenditures, which constitute the major source of GDP growth. They take pride in the strengthening of the peso, brought about in great measure by surging remittances.

During a public forum recently held in San Francisco, high-level Philippine officials ventured the opinion that the strength of the peso could continue in the future. The authorities have knowingly withheld any policy intervention. Has the choice of the authorities to do nothing promoted the greatest good for the greatest number?

Ironically but deliberately, public policy has been hurting the families of OFWs and small exporters. In the end, such a posture will be self-defeating and will hurt the economy on a larger scale. When the “party” is over, there could be grave consequences in the opposite direction. Read more

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