Why are Filipino Americans moving back to the Philippines?

Summary

The Philippines is known for its people, who are a significant export, working in key industries globally, especially as nurses and seafarers. Overseas Filipino workers (OFWs) contribute over $33 billion annually to the country's GDP. Despite some settling abroad, a 'reverse migration' trend is growing, with many returning to take advantage of new economic opportunities in tech and startups. The video explores the reasons behind this trend, the potential for a 'Filipino Dream,' and the impact of OFWs on the country's economy and culture.

Takeaways

• 🌍 The Philippines is renowned for its people, who are a significant export, particularly in nursing and seafaring industries.
• 💼 Overseas Filipino workers (OFWs) contribute immensely to the Philippines' economy by remitting over $33 billion annually, which is nearly 10% of the GDP.
• 🏠 There's a notable trend of 'reverse migration' where Filipinos, including those from the diaspora, are returning to the Philippines due to emerging opportunities.
• 💼 Historically, Filipinos have been migrating since the 16th century, with significant waves in the 20th century, especially post-WWII for healthcare work.
• 👵 Reasons for OFWs to return include retirement, seeking family connections, and economic opportunities, leveraging the 'Dollar-Earner, Peso Spender' advantage.
• 👶 Third culture kids and diasporic Filipinos are also part of this reverse migration, seeking to reconnect with their roots and contribute to the homeland.
• 💹 The Philippines is experiencing a tech and startup boom, with funding increasing from $440 million in 2018 to over $1 billion by 2021, akin to the early days of Silicon Valley.
• 🌐 This boom is attracting not only Filipino entrepreneurs but also global investors, fostering innovation and cultural rediscovery.
• 🏢 The growth of startups is creating jobs and future founders, contributing to the establishment of a robust middle class in the Philippines.
• 🌐 The BPO industry is a significant contributor to the Philippines' GDP, with expats playing a role in job creation and economic growth.

Q & A

What is considered the Philippines' greatest export?

The Philippines' greatest export is its people, particularly in the form of Overseas Filipino Workers (OFWs) who work in key industries worldwide.

How significant is the financial contribution of OFWs to the Philippines' GDP?

OFWs send back over $33 billion annually, which is nearly 10% of the Philippines' GDP, highlighting their substantial economic impact.

What is the term used to describe the trend of Filipinos returning to the Philippines?

The trend of Filipinos returning to the Philippines is referred to as 'reverse migration.'

What are some reasons why OFWs might return to the Philippines?

OFWs might return to the Philippines for various reasons such as retirement due to the lower cost of living, seeking family closeness, or finding better economic opportunities.

How has the history of Filipino migration evolved over time?

Filipino migration has evolved from the first recorded Asians in the Americas in 1587, to the Manong Generation moving to the US in 1903 for agricultural work, and post-WWII recruitment of healthcare workers, to the recent trend of returning due to economic opportunities.

What economic opportunities are attracting OFWs and other Filipinos to return to the Philippines?

The Philippines is experiencing a boom in tech and creativity sectors, with startup funding increasing dramatically, creating jobs and opportunities that are drawing OFWs back.

What is the significance of the term 'Dollar-Earner, Peso Spender' mentioned in the script?

The term 'Dollar-Earner, Peso Spender' refers to OFWs who earn in dollars but spend in pesos, highlighting how their income can go much further in the Philippines than in their host countries.

How has the startup scene in the Philippines grown recently, and what is its impact?

Startup funding in the Philippines has skyrocketed from $440 million in 2018 to over $1 billion by 2021, leading to the creation of jobs and inspiring future founders, contributing to a robust middle class.

What role does the Business Process Outsourcing (BPO) industry play in the Philippines' economy?

The BPO industry in the Philippines contributes nearly $30 billion annually to the country's GDP, employing an estimated 1.3 million Filipinos and serving clients from various countries.

What is the 'Filipino dream' as mentioned in the script, and how does it differ from the 'American dream'?

The 'Filipino dream' refers to the aspiration for success and prosperity within the Philippines itself, as opposed to the 'American dream' which traditionally symbolizes the pursuit of success in the United States.

How does the script suggest the perception of Filipino Americans should change?

The script encourages viewing Filipino Americans not for what they are perceived to have but for what they wish to contribute, such as reconnecting with Filipino culture and community.

Outlines

00:00

🌍 Filipino Global Impact and Reverse Migration

The video script discusses the significant role of Filipinos in the global workforce, particularly as the largest exporters of nurses and seafarers. It highlights the substantial financial contribution of Overseas Filipino Workers (OFWs) to the Philippines' GDP, with over $33 billion annually. The script also addresses the emotional and social implications of migration, including family separation and the quest for success abroad. It introduces the concept of 'reverse migration,' where Filipinos, including those from the diaspora, are returning to the Philippines due to emerging opportunities. The video raises questions about the accessibility of these opportunities and whether they are driven by true economic prospects or forced repatriation. It also ponders if the 'American Dream' can be realized within the Philippines, setting the stage for a deeper exploration of the country's economic and cultural evolution.

05:00

💼 Economic Opportunities and the Filipino Dream

This section delves into the economic opportunities available in the Philippines, questioning whether they are accessible to all, including foreigners and locals. It acknowledges the advantages expatriates may have due to stronger purchasing power but also celebrates the success of locally-grown businesses like Potato Corner and Colourette. The video emphasizes the importance of not judging diasporic Filipinos but appreciating their contributions to Filipino culture and community. It suggests a shift from seeking the 'American Dream' to pursuing the 'Filipino Dream,' where success is shared and collective. The video concludes by encouraging viewers to support local media and content creators, like One Down, to continue producing insightful and accessible content.

Keywords

💡Overseas Filipino Workers (OFWs)

Overseas Filipino Workers (OFWs) refer to Filipinos who work abroad, often in countries like the US, Middle East, and Japan. They play a significant role in the Philippines' economy by sending back remittances, which contribute nearly 10% of the country's GDP. The video discusses how OFWs have historically been a major export of the Philippines, highlighting their impact on both their host countries and the Philippines.

💡Reverse Migration

Reverse migration is the phenomenon of people moving back to their home country after living abroad. In the context of the video, it refers to Filipinos, including those from the diaspora, returning to the Philippines due to emerging opportunities. The script mentions that this trend signals a positive shift towards recognizing the potential and opportunities within the Philippines itself.

💡Remittances

Remittances are the money that OFWs send back to their families in the Philippines. The video emphasizes that these funds are substantial, amounting to over $33 billion annually, which is nearly 10% of the country's GDP. This highlights the economic importance of OFWs to the Philippines and their families.

💡Filipino Diaspora

The Filipino diaspora encompasses Filipinos living outside the Philippines, including those who have settled in other countries and their descendants. The video discusses how members of the diaspora, such as Fil Ams and Filipino Canadians, are part of the reverse migration trend, indicating a desire to reconnect with their roots and contribute to the Philippines' growth.

💡Economic Opportunities

Economic opportunities in the video refer to the potential for growth and prosperity within the Philippines, particularly in sectors like technology and creativity. The script mentions a significant increase in funding for Philippine startups, drawing parallels to the early days of Silicon Valley, suggesting a burgeoning tech scene that could attract both local and foreign investment.

💡Startups

Startups in the video represent new businesses that are being established in the Philippines, particularly in the tech sector. The script notes a dramatic increase in funding for these startups, from $440 million USD in 2018 to over $1 billion by 2021, indicating a burgeoning entrepreneurial ecosystem that could drive innovation and job creation.

💡Cultural Rediscovery

Cultural rediscovery in the video refers to the process of reconnecting with one's cultural roots and heritage. It is highlighted as a driving force behind the reverse migration trend, as Filipinos from the diaspora return to the Philippines to re-engage with their culture and contribute to its development.

💡BPO Industry

The Business Process Outsourcing (BPO) industry is a significant sector in the Philippines that provides services such as call centers and outsourcing to international clients. The video mentions that this industry contributes nearly $30 billion to the country's GDP annually and employs an estimated 1.3 million Filipinos, showcasing its importance to the economy.

💡Filipino Dream

The term 'Filipino Dream' in the video encapsulates the aspiration for a prosperous and successful life within the Philippines, rather than seeking opportunities abroad. It is presented as an alternative to the 'American Dream' and is linked to the idea that the Philippines is becoming a land of opportunity where success can be achieved.

💡Kapwa Code

The 'Kapwa Code' mentioned in the video is a call to action for viewers to support the mission of One Down, an independent Filipino media company. It represents the value of community and mutual support, encouraging viewers to subscribe and follow their channels to help sustain the production of content that explores and promotes Filipino identity and opportunities.

Highlights

The Philippines is known for exporting its people, particularly in the fields of nursing and seafaring.

Overseas Filipino workers (OFWs) contribute significantly to the country's GDP by sending back over $33 billion annually.

The impact of OFW remittances is likened to every tenth store being built by money sent from abroad.

There is a trend of 'reverse migration' with Filipinos returning to the Philippines for better opportunities.

The Philippines' tech and startup scene is booming, with funding increasing from $440 million in 2018 to over $1 billion by 2021.

Startup founders in the Philippines are creating a 'Sinigang Valley', inspired by Silicon Valley's success.

Reverse migration is driven by global opportunities and the desire of diasporic Filipinos to reconnect with their roots.

Startups in the Philippines not only create jobs but also inspire future entrepreneurs.

The BPO industry in the Philippines contributes nearly $30 billion to the GDP annually and employs 1.3 million Filipinos.

Filipinos born and working in the Philippines have the potential to grow successful businesses that add value to the country.

Filipino Americans are seen as recipients of an OFW's sacrifice and are encouraged to reconnect with Filipino culture and community.

The 'Filipino dream' is emerging as a new aspiration, focusing on opportunities within the Philippines rather than abroad.

The narrative is shifting from seeking the 'American dream' to achieving success and community upliftment within the Philippines.

The video discusses the historical context of Filipino migration, including the Manong Generation and post-WWII recruitment of healthcare workers.

Personal stories of OFWs, such as Lucy Sanders, highlight reasons for returning to the Philippines, such as family and cost of living.

The video explores the challenges faced by third-culture kids who are both X and Filipino but feel like they belong to neither.

The potential for a robust middle class in the Philippines is seen through the growth of local businesses and startups.

Transcripts

The Philippines’ greatest export is… its people.

Filipinos power key industries worldwide,

being the largest exporter of nurses and seafarers.

And Overseas Filipino workers send back

over $33 billion dollars annually,

nearly 10% of the country's GDP.

Imagine if every tenth store in your town

was built entirely by money sent

from Filipinos working abroad–

that's how big their impact is!

Some OFWs make their host countries

their new homes.

Some return to the Philippines to retire,

and others come back after a few years.

But why do Filipinos need to leave to find success?

And why must families be separated to survive?

There’s a growing trend of “reverse migration”.

Filipinos, including Fil Ams,

Filipino Canadians and Third Culture Kids,

from places like the Middle East and Japan

are moving back to their motherland,

and this signals a very good phenomenon occurring...

opportunity in the Philippines.

So if better economic opportunities

are found in the Philippines,

are they accessible to everyone–

both foreigners and fellow Pinoys?

What's driving the return–

true opportunity or forced repatriation?

And can the American Dream be found instead

in the Philippines?

I'm Leo Albea,

and this is One Down,

where we redefine Filipino.

“A lot of people coming back to the Philippines, a lot.”

Filipinos have a long history of migration.

In 1587, Filipinos were the first recorded Asians

to step foot in the Americas–

33 years before the Pilgrims on the Mayflower.

More recently, we've seen these waves of migration.

The Manong Generation moved to the US in 1903

for agricultural work.

After World War II,

over 150,000 Filipino healthcare workers

were recruited through programs

like the 1948 Exchange Visitor Program

and the 1965 Immigration and Nationality Act.

By the 2000s, the Philippines GDP grew massively,

with many of OFWs working as engineers,

domestic helpers and teachers.

While some OFWs settle in their host countries,

many have reasons to return.

Some retire in the Philippines

due to the lower cost of living.

One OFW mentioned being

a ‘Dollar-Earner, Peso Spender,’

saying that the average income in

the US makes them a millionaire in the Philippines.

Others, like Lucy Sanders,

found themselves alone in the US.

When her husband passed away.

Lucy returned to the Philippines

to be closer to family.

Historical crises like the 2008 Great Recession

and the 2020 Covid 19 pandemic

have also driven families back for health care,

safety, and stability.

But what if you never grew up in the Philippines?

What if you grew up in a third culture

at the intersection of being both X and Filipino,

but never enough of either?

What does it look like

for the children of immigrants

to return to their homeland?

But it's not just about coming home.

It's about addressing

why OFWs left in the first place

and building something better.

There's now a huge opportunity

in the Philippines, especially in tech and creativity.

Funding for Philippine startups has skyrocketed.

In 2018, they raised 440 million USD.

By 2021, it was over $1 billion dollars.

It's like the early days of Silicon Valley,

when companies like Apple

and Google were first getting off the ground

and venture capital began pouring in,

transforming the area

into a global tech powerhouse.

Now, these startup founders are establishing

a Sinigang Valley in the Philippines.

Why is this relevant to reverse migration?

A few reasons.

It signals global opportunity,

attracting more investment.

The US is the sixth largest investor

in the Philippines.

And it's not just Filipino entrepreneurs benefiting,

businesses like Al Dente Pasta Bar

and the beauty brand Teviant,

created by an Indonesian celebrity makeup artist,

show the diverse interest.

Two, Filipino diasporic founders often seek

to reconnect with their roots,

fueling a movement of returning to the Philippines.

This reconnection drives innovation

and cultural rediscovery.

And three,

these startups don't just create jobs,

they create future founders.

Employees from successful startups often

go on to build their own businesses,

creating more jobs

and helping to establish

a robust middle class in the Philippines.

One of these webs can be seen

through Roland and Rexy,

and how Kumu has led

to the establishment

of other companies in the ecosystem.

If you're enjoying this video so far,

we have to show some love to Illa Manila,

one of our partners this month

who made this video possible.

Founded by Fil Am Raibyn Cabiling,

Illa Manila is a streetwear brand that

incorporates Filipino culture into its collection.

I'm actually wearing one of their upcoming releases,

their Barongarak!

I chose this particular one

since it matches One Down’s colors.

If you want to get your own Barongarak,

which will be available in four different colors,

you need to go follow

Illa Manila on Instagram

and check out their website

as they will be announcing a drop very soon.

Check out our description for more info,

and let's get back to the episode.

So if better economic opportunities

are found in the Philippines,

would they be accessible to everyone,

both foreigners and fellow Pinoys?

We're inclined to say yes, but it's still nuanced.

Expats often have the privilege of ‘more resources’

from a capital perspective, coming from countries

where the currency has more purchasing power

than the Philippine peso.

This incentivizes more expats to do business in

and with the Philippines

contributing to job creation.

The strongest example of this is the BPO industry,

with call centers

and outsourcing to the Philippines,

serving clients from the US, Europe, Japan,

New Zealand and Australia.

To put it in perspective,

the Philippines’ BPO industry

contributes nearly $30 billion each year,

making up 7.5% of the country's total GDP in 2021.

That’s like if a single industry in the US

generated the combined revenue of Walmart and Nike.

An estimated 1.3 million Filipinos were employed

in over 1,000 BPO companies in 2019.

While expats might have an upper hand

from a buying power perspective,

Filipinos born and working in the Philippines

can also grow incredible businesses

that bring immense value to the country.

Popular brands like Potato Corner,

which began as a small food kiosk offering flavored fries,

and Colourette, founded by Nina Ellaine Dizon-Cabrera

who dreamed of starting her own makeup in college,

are prime examples.

Other locally-built businesses like National Book Store,

Mercury Drug,

and Mang Inasal also demonstrate this potential.

And while many Fil Ams

have the privilege of being born in America,

here’s another perspective quoted from a Fil Am:

Filipino Americans are the recipients

of an OFW’s sacrifice,

navigating a foreign country.

Instead of judging Fil Ams

or any diasporic Filipinos

for what they're perceived to have,

let's accept them

for what they wish to bring

and reconnect with:

Filipino culture and community.

America used to be hailed

as this land of opportunity.

And while there will continue

to be a large migration out of the Philippines

and into different countries,

which is overall a net positive for the country,

it's safe to say

that even greater opportunity exists

in the Philippines and not just Metro Manila,

but especially in the different regions

of the Philippines.

So we're not looking for

the American dream anymore.

We want the Filipino dream.

And in that dream,

if one of us rises,

we all rise.

Thanks for watching!

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