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Table of Contents Table of Contents Table of Contents of Contents Table List of Tables v List of Figures vii List of Text Boxes vii List of Annexes vii List of Acronyms and Abbreviations viii Foreword xi Preface xii Acknowledgements xiii Executive Summary xiv I. Background of the Study 1 A. Research Objectives 1 B. Research and Survey Methodology 2 1. Baseline Survey and Sampling for Italy-based Filipinos 3 2. Data Analysis and Focus Group Discussions 4 3. Research Validation 4 C. Scope and Limitations of the Study 4 II. The Context of Migration in Italy and the Filipino Migrant 6 A. The Italian Context 6 1. Demographics of the Migrant Population in Italy 6 2. Salient Features of Present Immigration Laws in Italy 8 B. Profile of Filipinos in Italy 11 1. Recording Available Migration Data about Filipinos in Italy 11 2. Issues and Challenges in Philippines–Italy Migration 12 III. The Remittance Environment in Italy and in the Philippines 17 A. Overview of the Italy–Philippines Remittance Corridor 17 B. Remittance Policy and Market Environment in Italy 19 1. Informality of Remittance Channels 19 2. The Banking and Remittance Regulatory Environment 20 3. Anti-Money Laundering Law and Other Security Measures 21 C. Remittance Policy and Market Environment in the Philippines 23 1. Remittances and Migration Profile of the Philippines 23 2. Remittance Transaction Costs for the Italy–Philippines Corridor 26 IV. Survey Findings on the Remittance Behaviour of Filipinos in Italy 28 A. Demographic Profiles of Surveyed Filipino Remitters 28 B. Migration History and Current Occupation 30 C. Frequency, Amounts and Beneficiaries 32 D. Channels, Services and Products 36 iii Table of Contents E. Non-Monetary Remittances and Hand-carried Remittances (Padala) 41 F. Income and Expenses of Italy-based Filipino Remitters 43 Special Section: Households and Families of Italy-based Filipinos 46 1. Household Composition 46 2. Households’ Income Sources and Expenditure 48 G. Savings and Investment Practices and Behaviour of Italy-based Filipino Remitters 48 H. Retirement Plans and Aspirations of Filipinos in Italy 58 V. Leveraging Migrants’ Remittances for Development 61 A. The Context of Migration and Development 61 1. Fiscal Position of Origin Country 62 2. Poverty Reduction 62 3. Uses of Remittances by Migrant Households 62 4. Investments in Human Capital 63 5. Housing 64 B. Philanthropic Activities of Italy-based Filipinos 64 C. Philippine Government Programmes on Migration and Development 66 1. Protection of Nationals Overseas 67 2. Reintegration Services 67 D. Allied Government Programmes and Services Tapping Migrants’ Skills and Resources for Development 71 Evaluating Philippine Government Agencies’ Services 72 E. Philippine Civil Society Organizations 76 F. Rural Banks, Cooperatives and Microfinance Institutions 77 G. Italian Efforts Related to Migration and Development 81 The Italy–Philippines Migration and Remittance Corridor H. The Work of Filipino Associations in Italy for the Homeland 82 1. Membership in Organizations 83 2. Filipino Associations in Italy as Agents of Change: Prospects and Challenges 84 VI. Recommendations 88 A. Enhancing and Strengthening Philippine Government Programmes and Services 89 1. Imparting Financial Literacy / Knowledge to Migrants and Their Families 89 2. Reviewing Reintegration Processes and Services 90 3. Tapping the Migrants’ Welfare Fund as a Source for a Development Fund 91 4. Improving Local Environments for Migrant Entrepreneurship 92 iv The Italy–Philippines Migration and Remittance Corridor Table of Contents of Contents Table B. Strengthening the Migration and Development Framework and 93 Migration Policies in the Philippines 1. Review of the Overseas Employment Paradigm 94 2. Integration of Concrete Milestones Concerning Migration and Development into the MTPDP 94 3. Policy Advocacy 95 4. Access to Information 95 C. Improving the Investment Environment for the Productive Flow and Collection of Remittances 95 1. State Development of OFW Bonds 96 2. Pre-Need and Insurance Products 96 3. Migrant Philanthropy 96 D. Enhancing the Banking and Remittance Environment of the Italy–Philippines Remittance Corridor 97 1. Actions for Italy 98 2. Actions for the Philippines 99 E. Creating an Enabling Environment for Filipino Migrants in Italy 99 1. Strengthening Support for Migrant Integration 100 2. Cooperation among Labour Sectors 100 3. Opportunities for the Youth 101 4. Regular Dialogue between Italian and Philippine Stakeholders 101 F. Areas for Further Research on the Italy–Philippines Remittance Corridor 101 1. Impact Assessment of Stakeholders’ Migration and Development Efforts 101 2. Studies to Support Coordination between Italy and the Philippines 102 3. Disparities in Migration and Remittance Data 102 4. Remittance Behaviour of Filipinos in Italy 103 Bibliography 104 List of Tables Table 1: Italy-based Filipino remitter survey locations 3 Table 2: Top 16 foreign populations in Italy (male and female, as of 1 January 2009) 6 Table 3: Distribution of the Filipino migrant population in Italy, by capital cities and other communities 7 Table 4: Employed persons in economic sectors, 2006 (by nationality and sector, %) 8 Table 5: Immigrant worker quotas in Italy by country-based preferential allocations within the yearly contingent 10 Table 6: Total number of newly deployed workers in Italy (from 1993 to 2007) 12 v Table of Contents Table 7: Remittances from Filipinos in Italy (USD thousands) 17 Table 8: Remittances by Italy’s immigrants to their countries of origin (in thousand euro) 18 Table 9: Overseas Filipinos’ remittances by region of origin 23 Table 10: Overseas Filipinos’ cash remittances coursed through formal and informal channels(in USD millions) 24 Table 11: Global reach of remittance services by major Philippine commercial banks 26 Table 12: Average costs and exchange rate margins 27 Table 13: Age distribution of respondents 29 Table 14: Legal status of migrants 29 Table 15: Levels of educational attainment 30 Table 16: Respondents’ first year in Italy 31 Table 17: Countries of residence/work before Italy 31 Table 18: Current occupation (multiple responses) 32 Table 19: Frequency of remittance to the Philippines 33 Table 20: Frequency of remittance by gender (%) 33 Table 21: Monthly amount remitted in euro 34 Table 22: Monthly amount remitted in pesos 35 Table 23: Occasional amounts remitted per transaction (in euro) 35 Table 24: Occasional amounts remitted per transaction (in pesos) 36 Table 25: Recipient of remittance in the Philippines 37 Table 26: Popular remittance channels 38 Table 27: Source of awareness and information on remittance channels 39 Table 28a: Philippine banks most commonly used by respondents 39 Table 28b: Remittance channels used by Filipino migrants in Italy The Italy–Philippines Migration and Remittance Corridor Table 29: Comparison of the remittance channels Filipino migrants 40 have used Table 30: Satisfaction level with existing remittance transfer services 41 and other services from the private sector 42 Table 31: Other non-monetary items sent back home 43 Table 32: Value of cash and gifts bought home (weighted averages) 43 Table 33: Personal sources of income (employment and other sources) 44 Table 34: Monthly income from one source of income 44 Table 35: Monthly income from a second source of income 44 Table 36: Monthly income from a third source of income 45 Table 37: Breakdown of household expenses of respondents 47 Table 38: Household composition (multiple responses) 48 Table 39: Household members contributing to household income 49 Table 40: Monthly savings amount (in euro) 49 Table 41: Where savings are kept 50 Table 42: Banks that respondents use for their savings vi The Italy–Philippines Migration and Remittance Corridor Table of Contents of Contents Table Table 43: Investments in Italy and in the Philippines 51 Table 44: Top responses to investment-related questions 54 Table 45: Estimated monthly budget of overseas Filipinos in Italy (in euro) 55 Table 46: Annual budget of overseas Filipinos in Italy (in euro, selected scenarios using the data from survey) 57 Table 47: Type of business aspired for 59 Table 48: Places in the Philippines to retire 60 Table 49: Items to which remittances are allocated by beneficiary families in the Philippines 63 Table 50: Causes to which overseas Filipinos in Italy donate 65 Table 51: Interest in contributing to help communities in the Philippines 65 Table 52: Preferred charitable and community causes (top-of-mind) 66 Table 53: Satisfaction ratings for government organizations 73 Table 54: Satisfaction ratings for government organizations 75 Table 55: Performance of the Philippine Cooperative Central Fund Federation for the Livelihood Development Program for OFWs 79 List of Figures Figure 1: Concentration of Filipino migrants in Italy 7 Figure 2: Ownership of selected items, as percentage of the total 53 number of respondents List of Text Boxes Text Box 1: Financial inclusion of immigrants in Italy 22 Text Box 2: Financial literacy for overseas Filipinos 25 Text Box 3: Almost nothing left to save in the monthly budget? 55 Text Box 4: A workers’ resource centre in the host country 70 Text Box 5: Filipino councillors in Italy as “influences” for fellow Filipinos 85 Text Box 6: A Filipino migrant’s hometown with an “Italian facade” 87 List of Annexes Annex 1: Sampling Formula to Determine Survey Respondents 113 Annex 2: Details of the Surveys Conducted in the Philippines and in Italy 114 Annex 3: Philippine Government Services in the Protection of Nationals Overseas
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