Bank for the welfare of expatriate workers
Wednesday, 12 May 2010
IN line with its election pledge, the incumbent government is now in the process of completing the necessary legal framework for the establishment of a specialised bank for helping, financially, the returnee expatriate workers. An official committee has already prepared the final draft of the law relating to the proposed bank. According to a report published in this daily early this week, the Wage Earners' Welfare Fund under the control of the Ministry of Expatriate Welfare and Overseas Employment would make available the entire paid-up capital of the bank and its operations would be overseen by a board of directors dominated by government officials.
Despite the fact that there would be some restrictions on taking deposits and lending by the proposed bank, the draft act, which is likely to be placed before the cabinet for approval, has kept provisions for it to become a scheduled bank, if and when necessary. The need for putting in place a financial institution that would primarily work for the economic welfare of the expatriate workers has been a long-standing demand. The proposed bank, when established, would be a step in right direction. However, the contents of the draft act do require a close scrutiny by the Ministry of Finance before sending the same to the cabinet for approval.
The draft act, reportedly, has not kept any provision for extending loan facilities to the outbound Bangladeshi workers or to any schemes that would help produce skilled workers for manpower markets abroad. The uncertainty over the recovery of loans extended to outbound workers to pay for the fees charged by the manpower recruiting agencies might have discouraged those who drafted the act. But the fact remains that many outbound workers, who generally belong to low-income families, are either forced to sell their small land holdings or borrow from rural moneylenders at exorbitant rates of interest, to satisfy the recruiting agents. If the proposed bank fails to address this issue out of the fear over default on repayment, its job would remain half-done. The act concerned must not keep the proposed bank's loan operation confined to a particular area and it should be left at the discretion of the management.
There is no denying that loans to be offered by the proposed bank to the returnee workers for starting new business or making investments in productive activities would help the latter to eke out a living. In most cases, such returnees find themselves in serious financial difficulty because of non-availability of suitable employment opportunities or funds to start productive ventures. The proposed bank should also extend loans to establishments engaged in the task of developing skills that are in demand in the jobs market abroad. This would help the Bangladeshi workers to get better-paid jobs and remit more back home.
However, creation of a specialised bank for the economic welfare of the expatriate workers would mean nothing unless it delivers up to the expectation. The Wage Earners' Welfare Fund is a glaring example here. Allegations are galore that the Fund has failed to do anything meaningful for the welfare of expatriate workers and it has also made some questionable investments. So, it would be imperative to constitute an effective board of directors and appoint a dynamic management if the government is really serious about ensuring some positive results out of operations of the proposed bank. But it would be too much to expect such results from a bureaucrat-laden board. Thus, inclusion of a couple of private sector people having knowledge in the relevant field in the board would be an appropriate move.
Despite the fact that there would be some restrictions on taking deposits and lending by the proposed bank, the draft act, which is likely to be placed before the cabinet for approval, has kept provisions for it to become a scheduled bank, if and when necessary. The need for putting in place a financial institution that would primarily work for the economic welfare of the expatriate workers has been a long-standing demand. The proposed bank, when established, would be a step in right direction. However, the contents of the draft act do require a close scrutiny by the Ministry of Finance before sending the same to the cabinet for approval.
The draft act, reportedly, has not kept any provision for extending loan facilities to the outbound Bangladeshi workers or to any schemes that would help produce skilled workers for manpower markets abroad. The uncertainty over the recovery of loans extended to outbound workers to pay for the fees charged by the manpower recruiting agencies might have discouraged those who drafted the act. But the fact remains that many outbound workers, who generally belong to low-income families, are either forced to sell their small land holdings or borrow from rural moneylenders at exorbitant rates of interest, to satisfy the recruiting agents. If the proposed bank fails to address this issue out of the fear over default on repayment, its job would remain half-done. The act concerned must not keep the proposed bank's loan operation confined to a particular area and it should be left at the discretion of the management.
There is no denying that loans to be offered by the proposed bank to the returnee workers for starting new business or making investments in productive activities would help the latter to eke out a living. In most cases, such returnees find themselves in serious financial difficulty because of non-availability of suitable employment opportunities or funds to start productive ventures. The proposed bank should also extend loans to establishments engaged in the task of developing skills that are in demand in the jobs market abroad. This would help the Bangladeshi workers to get better-paid jobs and remit more back home.
However, creation of a specialised bank for the economic welfare of the expatriate workers would mean nothing unless it delivers up to the expectation. The Wage Earners' Welfare Fund is a glaring example here. Allegations are galore that the Fund has failed to do anything meaningful for the welfare of expatriate workers and it has also made some questionable investments. So, it would be imperative to constitute an effective board of directors and appoint a dynamic management if the government is really serious about ensuring some positive results out of operations of the proposed bank. But it would be too much to expect such results from a bureaucrat-laden board. Thus, inclusion of a couple of private sector people having knowledge in the relevant field in the board would be an appropriate move.