Bangladesh's migration costs higher than officially allowed: WB

FE Team | Published: August 16, 2009 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
Bangladesh's overseas migration costs are higher than officially allowed as an impoverished migrant worker spends upto US$ 2300 even before he leaves for low-paying jobs abroad, says a World Bank study.
A poor Bangladeshi migrant worker spends upto US$2300 even before he leaves for a job abroad, almost twice/double the amount the government has capped for international migration while the government has fixed $1200 or Tk 84,000 as charges.
The charge includes agents' fees, airfares and costs related to obtaining passport, visa and other permits.
"Most of the poor would have considerable difficulty financing the needed upfront costs without access to credit or past savings," said Hasan Zaman, of the bank, who co-authored the study on overseas migration.
"Overall, the total upfront cost averages Tk 161,345 or $2300. This is almost five times Bangladesh's per capita income of $480," he added.
The study reckons that the median value is significantly smaller at Tk 120,000, indicating that some migrants are charged at a much higher rate than others, partly due to changes in air travel costs, visa and work permit fees.
The revelation provides a glimpse into Bangladesh's unregulated manpower market, tainted by records of fraud and endemic corruption.
Bangladesh has been playing a major role in the international migration, making it a top 10 recipient nation in the world.
Last year, the country's overseas class sent home nearly 9.0 billion, boosted by a record 875,000 jobs.
But officials fear that number could halve this year as jobs in Bangladesh's popular employment markets started drying up, hurt by the worst global recession in decades.
Already, the UAE's Dubai emirate deported thousands of foreign workers after global credit crunch put its billions of dollars of construction and real estate works. The UAE was the biggest employer of Bangladeshi workers last year.
Malaysia, which was the third biggest employer of Bangladeshi workers, cancelled 55,000 visas early March.
In addition to direct monetary fees paid to the agents, the bank's study said there is also the time cost involved in processing migration-related documents, which typically require potential migrants to travel to district headquarters or the capital city.
It takes at least three months to complete all paper work and travel arrangements, but that can go up to seven months, according to the study.
Bangladeshi workers' major destinations include the oil-rich Middle Eastern nations, with Saudi Arabia being the top destination.
An estimated 2.0 million Bangladeshis including some with no permits are working in Saudi Arabia, but the kingdom has stopped hiring new workers from Bangladesh since 2006.
In Southeast Asia, Malaysia and Singapore are the two leading places for jobs in construction, shipping and manufacturing sectors there.
The bank-sponsored survey found that family grants financed migration costs for over 50 per cent of respondents while 43 per cent overseas job seekers relied on own savings.
Other sources of financing included loans from friends and relatives and market rate-based borrowing.
It also found around 20 per cent sold land and other assets, while 25 per cent used money from mortgaging land as their two top sources of finance.