Wednesday, June 03, 2009

Philippines too...

Next to Mexico in dollar amount, Philippine economy depend on remittances from the US and other countries. Difference is Filipinos go to other countries besided USA.
From Investors Business Daily: ht:
Worse still, there's the remittance economy, which the government itself has encouraged to excuse itself from the kind of reform Ortiz urges. For the government, taking in some $2 billion in hard currency each month and getting rid of potential malcontents is a benefit. But for the economy itself, and the workers who need jobs, it's a bane. Legal workers in both countries are shed at lower rates than those who live outside the law, hence the drop in remittances. Dumping illegals on a dime always happens in a downturn. It not only leaves Mexicans more vulnerable in a downturn, it also deprives Mexico of its most enterprising base of talent. People who work illegally abroad cannot fully utilize their potential because only the invisible architecture of legalization can extract capital, as Hernando de Soto has noted. It's as true of illegals as it is of their money. The higher negative data on both oil and remittances suggest that whatever else may be going on, Mexico should reduce dependency on them. Mexico's central bank governor sees what is happening. It's about time Mexico's politicians took note too.

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