Monday, October 16, 2006

Like Mexico, Philippines depend on remittances too...

DtPhp as a foreign money remitter strongly believe that money remittance have negative effect to overall economic development and prosperity of the Philippines, as this study in Mexico show in today's
In a 2005 study, that bank found a negative link between development and remittances — the more remittances, the less overall development. The bank even went so far as to suggest poverty was caused by the dependency, not the other way around.
Because most cash sent back is used for consumption, and not investment, it gives only a short-term boost to GDP.
"Evidence also suggests that members of recipient households have fewer incentives to search for alternative sources of income," the bank noted, describing a burgeoning private welfare culture.

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