Remittances are one of the many dimensions of international migration that of late has attracted a great deal of attention from academics, public officials, and the media. For one thing, the magnitudes have increased sharply, at rates even faster than the departure of migrant workers. For another, for many developing countries, remittances have begun to significantly exceed foreign direct investment (FDI), capital market flows, or official development assistance (ODA). Moreover, remittances are providing timely support to otherwise shaky balance of payments and fiscal positions. Further, remittances appear to contribute importantly to lifting households out of poverty, as well as benefit the wider community through the multiplier effects of increased spending. The Philippines is reputed to be the world’s third highest net remittance recipient country (relative to net migration) after India and Mexico. In 2005, remittances were officially recorded at $11.7 billion1 representing about 10% of GDP. Clearly, remittances resulting from the Filipino diaspora have become a major factor in the economic and social life of the country. This paper focuses on the home-country consequences of remittances, addressing the question whether and to what extent remittances contribute to poverty reduction and regional development in the Philippines.