Inclusive social and economic growth: tapping remittances and micro-finance for local recovery
In times of disasters and emergencies, the spirit of giving of overseas filipinos is nonpareil. With an estimated 10% of the population working and/or living overseas and 20% of all households in the Philippines receiving remittances, the Philippines is the third largest recipient of remittances in the world.
In 2012, close to US$ 25 billion in overseas remittances were sent home. Already, when typhoon Yolanda ravaged Eastern and Western Visayas, the country received countributions from overseas totalling US$ 1.92 billion.
Data from the Bangko Sentral ng Pilipinas (BSP) shows that more than a third of microfinance clients of 392,000 may have been affected by typhoon Yolanda. Microfinance clients are critical to the local economy as they are mostly the micro and small entrepreneurs in public markets (locally called as palengke), home-based enterprises, sidewalk and ambulant vendors, and local transport system service providers. This sector can contribute greatly to the revival of local economies affected by typhoon Yolanda.
- Establish a revolving fund to revive local economies by providing microfinance to micro and small enterprises.
- Enhance financial literacy and business proficiency of target clients.