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Documents inThe ADB Economics Working Paper Series is a forum for stimulating discussion and eliciting feedback on ongoing and recently completed research and policy studies undertaken by the Asian Development Bank (ADB) staff, consultants, or resource persons. The series deals with key economic and development problems, particularly those facing the Asia and Pacific region; as well as conceptual, analytical, or methodological issues relating to project/program economic analysis, and statistical data and measurement. The series aims to enhance the knowledge on Asia's development and policy challenges; strengthen analytical rigor and quality of ADB's country partnership strategies, and its subregional and country operations; and improve the quality and availability of statistical data and development indicators for monitoring development effectiveness.
The Global Economic Crisis (GEC) of 2008-2009 was seen as negatively affecting the Philippines in a different way. Most countries affected by the GEC suffered export declines and domestic economic slowdown leading to the collapse of certain sectors in the economy. Though the Philippines was affected this way in some aspects, it is more the unique nature of its economy having around 10% of its population abroad working or permanently settled but continuing to send a significant amount of remittances. It was the concern of the Philippines that the crisis affecting many of the destination countries of its migrant workers will lead to massive layoffs and creating a much larger crisis at home. Based on this hypothesis, this study attempts to view how the GEC actually affected the economy by directly looking at the impacts on the overseas Filipino workers (OFWs) and their families-left-behind in the Philippines and how they coped with the perceived effects of the crisis. The study sampled the National Capital Region or Metro Manila. It used a semi-structured questionnaire which profiled the demographic characteristics and determined the coping strategies of the respondents. A focus group discussion with ten (10) of the respondents for the purpose of validating the data gathered by the questionnaire was also done. The results show that a number of affected households indicate decreases in their family income during the crisis period as compared to previous years. However, there are relatively few affected workers who returned home. Majority opted to stay abroad hoping for better opportunities in their affected host countries rather than to return home. The families-left-behind also adjusted to the crisis by implementing coping strategies such as cuts in spending (primarily in recreation, food and utilities), seeking extra jobs/sideline and a decline in allocation for savings
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