Remittances of the Overseas Marine Service Workers to the Philippines: Implications to Good Governance

Using the Network Governance theory, this study describes the remittances of the Overseas Marine Service Workers (OMSWs) and assesses its implication to good governance. Since OMSW remittances are mandatory, the Philippine government recognizes only the formal channels of money transfer system to the Philippines. However, some OMSWs are sending cash to their families in the Philippines through the informal channels for the reasons of emergency, speed, friendships and cost. OMSW cash remittances to their respective families are primarily spent on education, food, and health as part of the regular monthly household and family expenditure items. Recipient family members prioritize the purchase of real estate properties, income-generating investments such as micro-enterprises and agricultural lands, clothes, motorcycle or cars. Part of the cash remittances received is also spent during Christmas celebrations; however, low priority is given to spending money on birthdays, fiestas and other occasions of lesser cultural significance to the family. A minimal number of the respondents donate a portion of the money to the barangay and school. On the other hand, a portion of the cash remittances received is not spent, but kept as savings for the family. The study further reveals that good governance (e.g. accountability, transparency, participation and rule of law) does not actually have any direct effect on the OMSWs' and their families overseas remittance- related transaction and experiences, either with the formal channels or informal mechanisms.