"The middle class of this country is rapidly becoming foreign- based," Frederico Macaranas, executive director of the Asian Institute of Management’s think-tank, told the conference.
It has been estimated that some eight million Filipinos or about 10 percent of the total population are now living overseas.
The Philippines is no longer just exporting cheap domestic labor like housemaids, but is losing its educated elites such as teachers, doctors, nurses and engineers.
Foreign Affairs Undersecretary Jose Brillantes told the conference that the "inflow of remittances (from workers abroad) has kept the economy afloat." He said remittances last year rose by some 11.8 percent to a record $8.5 billion.
Remittances this year are expected to hit $10 billion according to government estimates.
While the export of labor has now become a permanent fixture in government planning, it has not been without its downside.
Carmelita Nuqui, president of the Philippine Migrants Rights Watch, reminded the conference of "the social costs of migration" especially among the young.
A United Nations Children’s Fund report said recently that between three and eight million children are left behind by Filipinos working overseas. It said entire family units are being broken up as a result.
Despite the brain drain and the emerging social problems the conference was told that the Philippines may not be fully utilizing the benefits of the money workers send home.
Remittances from overseas workers have helped set up schools and hospitals in rural communities but could also be tapped for local government bonds and to finance rural banks to bring development to the hinterlands, said Macaranas.
He also suggested that overseas workers could even set up their own commercial banks.
Macaranas added that Filipinos exposed to better governance overseas could eventually become a political and business force by giving "ideas to their brethren left behind."
Brillantes also said the Philippines could turn the "brain drain into a brain gain," by finding ways to use domestically the improved skills and training of the veteran Filipino workers once they return. — AFP