Migration, remittances and development: The Filipino New Zealand experience John Richard Simon Alayon A thesis submitted to Auckland University of Technology In fulfilment of the requirements for the degree of Master of Philosophy (MPhil) 2009 Institute of Public Policy Primary Supervisor: Dr. Love Chile TABLE OF CONTENTS PAGE LODGEMENT OF THESIS FORM TITLE PAGE TABLE OF CONTENTS…………………………………………………………………………………i LIST OF FIGURES……………………………………………………………………………………….v LIST OF TABLES………………………………………………………………………………………..ix ATTESTATION OFAUTHORSHIP……………………………………………………………………..x ACKNOWLEDGEMENTS……………………………………………………………………………….xi ETHICAL APPROVAL…………………………………………………………………………………..xv ABSTRACT………………………………………………………………………………………………xvi CHAPTERS I. INTRODUCTION…………………………………………………………………………………...1 A. Background and Rationale of the Study B. Statement of the Problem C. Objectives of the Study D. Significance of the Study E. Scope and Limitations of the Study F. Chapter Summaries II. REVIEW OF RELATED LITERATURE AND THEORETIC FRAMEWORK…………………7 A. On Migration B. On Remittances B.1. Definition B.2. Dynamics of remittances B.3. Impacts of remittances B.3.1. Impact of remittances to household level B.3.2. Impact of remittances to the community of origin B.3.3. Impact of remittances to the broader society C. Development and Remittances III. METHODOLOGY AND DATA COLLECTION…………………………………………………19 A. Relationship of the research to the Treaty of Waitangi B. Research methodology C. Method of Data Collection C.1. Selection of participants to the study D. Limitations in the selection of participants IV. RECENT TRENDS IN MIGRATION and REMITTANCES……………………………………24 A. Migration Data A.1. Global migration trend A.2. Regional migration trend A.3. Top ten destination countries A.4. Top ten sending countries B. Remittance Data B.1. Global remittance trends B.2. ODA and remittance flows to developing countries B.3. Regional remittance trend i B.4. Top ten remittance receiving countries, 2007 B.5. Top ten remittance sending countries, 2006 V. THE PHILIPPINE CONTEXT OF MIGRATION, REMITTANCES and DEVELOPMENT………………………………………………………………………………...34 A. Migration Flow A.1. Stocks A.2. Top ten destination countries of Filipino temporary contract workers and permanent residents. A.3. Diverse migration flow B. Remittance Flows B.1. Collective remittances (Diaspora philanthropy flows) B.2. Remittance channels B.3. Top ten remittance sending countries B.4. Remittance behaviour B.5. Remittance channels and factors in choosing them C. Remittances and Development VI. THE NEW ZEALAND CONTEXT OF FILIPINO MIGRATION, REMITTANCES AND DEVELOPMENT……………………………………………………...52 A. Filipino Migrants in New Zealand A.1. Waves of Filipino migration in New Zealand A.2. Pattern of Filipino migration to New Zealand A.3. Permanent and long-term migration to New Zealand A.4. Motivations for Migration A.5. A statistical profile of Filipinos in New Zealand A.5.1. Age and gender A.5.2. Educational qualifications A.5.3. Income A.5.4. Labour force B. Filipino diaspora in philanthropy B.1. Manifestations of Filipino diaspora philanthropy by individual Filipinos B.2. Manifestations of Filipino diaspora philanthropy by Filipino Associations and Organizations operating in New Zealand B.3. Motivations in supporting diaspora philanthropy C. Filipino Associations and Organization in New Zealand C.1. Typology of Filipino associations and organizations in New Zealand D. Dynamics of New Zealand Filipino Remittances and Remittance Behaviour D.1. Remittance channels D.2. Actors in remittances D.3. Remittance flow D.4. Motivation of sending remittances D.5. Utilization of remittances VII. ENGAGING FILIPINO COMMUNITIES IN NEW ZEALAND FOR DEVELOPMENT WORK IN THEIR COMMUNITIES OF ORIGIN: CASE STUDIES………………………………………………………………………………..81 A. Case 1: Luna Cameron and Paglaum Trust New Zealand give hope to orphaned children of Guinsaugon, Southern Leyte A.1. Profile of Luna Cameron – personal circumstance A.2. Leyte mudslide A.3. Paglaum Trust ii A.4. Pooling of resources A.5. Diaspora philanthropy in action B. Case 2: Filipina New Zealander teaches town mates to learn and earn B.1. Personal story of Lucen Obligado Norman B.2. Motivations in looking back home B.3. Diaspora philanthropy in action C. Case 3: Merida children get support C.1. The Runcimans C.2. Merida Children’s Charitable Trust C.3. Diaspora philanthropy in action D. Case 4: Filipinos in New Zealand have their sights on Blind Free Philippines D.1. The Esguerras D.2. Tapaznon Foundation D.3. Pooling of resources and motivations to give back D.4. Diaspora philanthropy in action E. Case 5: Oasis Christian Children’s Home Trust shares love for the street children of Sorsogon E.1. The Cochranes E.2. Motivations to give back E.3. Oasis Christian Children’s Home E.4. Pooling of resources and diaspora philanthropy in action F. Case 6: CFC responding to the call for nation building in the Philippines F.1. Couples for Christ F.2. Couples for Christ and Gawad Kalinga F.3. Couples for Christ in New Zealand F.4. Couples for Christ in New Zealand and Gawad Kalinga F.5. Motivations in supporting Gawad Kalinga G. Key themes emerging in case studies VIII. RECIPIENT COMMUNITIES IN THE PHIILIPPINES AND FILIPINO DIASPORA PHILANTHROPY: CASE STUDIES……………………………..116 A. Case I: Bright future to orphans of Southern Leyte A.1. Background A.2. Diaspora philanthropy in action A.3. Challenges in the program B. Case 2: Dadai Norman/Lucen Norman Scholarship Program for St Joseph College B.1. Background B.2. The Dadai Norman scholarship program B.2.1. Challenges in the program B.3. Lucen Norman scholarship program B.3.1. Challenges in the program. C. Case 3: Merida Children’s Charitable Trust provides education to children of Merida C.1. Background C.2. Dynamics of host country and community of origin relations C.3. Diaspora philanthropy in action C.4. Challenges in the program D. Case 4: Tapaznon Foundation gives back Tapaznons their clear vision D.1. Background D.2. Dynamics of host country and community of origin relations iii D.3. Diaspora philanthropy in action D.4. Challenges in the program E. Case 5: Oasis Christian Children’s Home Trust shares love for Filipino street children E.1. Background E.2. Diaspora philanthropy in action E.3. Challenges in the program F. Case 6: Nation building through Gawad Kalinga villages F.1. Background F.2. Gawad Kalinga community F.2.1. The program F.3. Diaspora philanthropy in action F.4. GK Towerville New Zealand Village 1: A GK village in action F.4.1. The formation of GK Towerville New Zealand village 1 F.4.2. Life in GK Towerville New Zealand village 1 F.5. GK Quirino New Zealand Village 2: A model GK community in the making F.5.1. The formation of GK Quirino New Zealand village 2 F.5.2. Life in the GK Quirino New Zealand village 2 F.6. Challenges in the implementation of GK programs IX. COMMUNITY DEVELOPMENT IMPACTS OF REMITTANCES…………………………..160 A. Impacts at the family and household level B. Impacts on the community B.1. Paglaum Trust Scholarship Program B.2. Dadai Norman/Lucen Norman Scholarship Program B.3. Children of Merida Trust B.4. Tapaznon Foundation B.5. Oasis Christian Children’s Home B.6. Gawad Kalinga in community development C. Contribution of remittances to nation building X. HARNESSING THE POTENTIAL OF REMITTANCES FOR DEVELOPMENT…………168 A. Opportunities A.1. Individual remittances A.2. Collective remittances B. Hindrances C. Avenue for the enhancement of the impact of remittances XI. CONCLUSION AND POLICY OPTIONS……………………………………………………...177 A. Dynamics of Filipino New Zealand migration and remittances B. Impacts of remittances C. Leveraging remittances for development D. Policy options-The way to look forward REFERENCES…………………………………………………………………………………………183 APPENDICES……………………………………………………………………………………………191 A. Ethics Application…………………………………………………………………………………192 B. Participant Information Sheets………………………………………………………………….225 C. Consent and Release Forms…………………………………………………………………….236 D. Data Collection Instruments………………………………………………………………….....240 iv LIST OF FIGURES Page Figure 1. Model of Transnational Philanthropy……………………………………………………….16 Figure 2. Stock of immigrants by region, 2005 (as % of population)………………………………26 Figure 3. Top 10 destination countries, 2005 (number of immigrants, millions)………………….27 Figure 4. Top 10 sending countries, 2005 (number of emigrants)…………………………………28 Figure 5. ODA and remittance flow to developing countries (1990-2006)………………………..30 Figure 6. Regional inward remittance flow to developing countries, 2002-2007 (in billion $US)…………………………………………………………………………………..30 Figure 7. Stock estimate of Overseas Filipinos (as of December 2006)…………………………36 Figure 8. Distribution of donations by program component (1990-2001)…………………………43 Figure 9. Percentage of registered Filipino emigrants by major country of destination 1981-2007…………………………………………………………………………55 Figure 10. Number of registered Filipino emigrants in New Zealand: 1981-2007……………….56 Figure 11. An avalanche of mud and boulders of stones buried the entire village of Guinsaugon……………………………………………………………....83 Figure 12. Mike McRoberts of TV3 NZ negotiating the mud to get a full coverage of the mudslide disaster in Guinsaugon………………………………………….84 Figure 13. TV3 NZ crew bringing the news of the mudslide disaster in Guinsaugon to New Zealand…………………………………………………………………..85 Figure 14. Luna Cameron of the Paglaum Trust (center) and supporters during the auction at Ellerslie, Auckland. 86 Figure 15. Marker of the New Guinsaugon village at the relocation site of mudslide victims…..88 Figure 16.