The Negative Impact of the Continuing Dollar Decline on Ofws and Remittances in Third World Countries

Recession. Great depression. Unemployment. Price rise. These are some of the few causes of the decline of dollars on remittances. Lets take recession on the spotlight, since this aspect touches every possible cause.

An economy passes through different phases of economic cycle, one of them is recession. It is observed when prices tend to increase, standard of living falls, and unemployment rises and business stop expanding, and ass the crisis worsens, migrants will reduce their flows by as much as 7 percent due to job losses, lower earnings, and slower migration (including continued deportations), as these happens, with all the unemployment and high rise of prices, the dollar declines. Therefore, remittances get affected.

III. Effect

The effects of low remittances and decline on dollars are quite obvious; of course the family of the certain overseas worker will suffer because of less money that they accept. There will be less help for economic growth, and aid to sustain the development of the country.

IV. Resolutions

A. UN agency calls for cheap transfer costs for migrants sending money home

Migrant workers send home money to their families

The United Nations agency that promotes the integration of developing countries into the world economy is calling for cheaper ways for migrant workers to send money back home so as to maximize the economic impact. The relevance of this resolution, is that it may help our overseas workers and their families with monetary income, plus it may encourage more workers to send money back to their home (developing) country. Thus, increasing economic development thru remittances and donations.

B. Alternatives proposed by an OFW named Bong Amora

Creation of an OFW Stabilization Fund, Creation of an OFW Bank that will cater OFW financial needs,