International migration is not new to the Philippines. In the recent outflow of contract workers to the Middle East, there is a shift from individual and family initiated migrations to the more organized, highly commercial variety. While profit-taking intermediaries have played some role in the past, the increase in the number and influence of these intermediaries has altered the story of migration decision-making. In 1975, the signing of the bilateral labor agreement between the governments of Iran and the Philippines signalled the rising demand for Filipino contract workers. From 1970 to 1975, the number of Asian migrant workers in the Gulf countries rose from about 120,000 to 370,000. These figures rose dramatically to 3.3 million in 1985. The growing share of organized and commercialized migration has altered migration decision making. Primarily, intermediaries are able to broaden access to foreign job and high wage opportunities. Commercialization effectively raises the transaction costs for contract migration. Studies on recruitment costs and fees show that self-solicited foreign employment costs less than employment obtained through recruitment agents and intermediaries. The difference in the 2 prices is due, not only to overhead costs of intermediation, but more importantly to the rent exacted by agents from having job information and placement rights. In the Philippines in October 1987 the average placement fee was P8000, greatly exceeding the mandated maximum fee level of P5000. This average is understated because the computation includes the 17% who do not pay any fees. The widespread and popular view of recruitment intermediaries is negative, dominated by images of abuses and victims. Private intermediaries and the government bureaucracy need each other. Intermediaries need government; their consistent demand for incentives and protection is indicative. On the other hand, government expands its supervision of control of overseas employment via the intermediaries. For both the community at large and the government, more can be gained in endeavors assisting workers and their families to make choices based on the widest available information. The most valuable program is that of providing correct information on recruitment charges and costs, on work and living conditions at the job site, on family and social consequences.

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