Labour markets and foreign remittance
Dr. Mohammed Hossain | Tuesday, 3 June 2008
IT has been noticed that Bangladeshis working abroad, sent home a record of $6.57 billion in 2007 equivalent to Tk 456.83 billion. The record remittances also pushed up Bangladesh's foreign exchange reserve, implying the importance of this sector. However, it is true that we are losing some labour markets as well as failing to create new ones in the Middle Eastern countries due to lack of government initiatives. As we know, the countries, where Bangladeshi workforce are working include Saudi Arabia, Malaysia, the United Arab Emirates, Qatar, Oman, Bahrain, Libya, Kuwait, Singapore, Brunei, Jordan, the UK, Italy, Mauritius, Lebanon and Ireland. However, recently the government has created new labour markets in many countries such as South Korea, Poland, Canada, Rumania, Russia, Afghanistan, Yemen, Angola, Nigeria and South Africa.
The above scenario of the labour markets obviously is the proof of Bangladeshi workers' efficiency and their merit, irrespective of the nature of their jobs. As mentioned before, the lack of government initiatives to explore new labour markets remains to be the main barrier to the development of this sector. In this case, the Bangladeshi missions are not dealing with this matter in an efficient way. This scribe has been working in Qatar and gained some knowledge of labour markets in Qatar and had spoken personally to some Bangladeshi workers. They all said that Qatar has good labour markets and Bangladeshis can occupy their due place there. It is known that Bangladesh and Qatar on January 6, 2008 signed an additional protocol, according to which Qatar will recruit more workers, especially skilled workforce, from Bangladesh. In addition, Qatar is interested in recruiting skilled professionals like academics, engineers and IT experts, apart from semi- and un-skilled workers. More than 15,000 workers went to Qatar in 2007.
We have a skilled, semi- and un-skilled as well as professionals workforce. Most of the workers working in this region are semi- and un-skilled ones such as drivers, builders, helpers, and cleaners. Professional workforce such as teachers, engineers and doctors is, however, limited in size.
In order to enrich the number of professional workers, the authorities concerned in Bangladesh must maintain liaison with foreign countries in a professional way so that we can hold our labour markets abroad as well as maintain a smooth inflow of foreign remittance. Moreover, only government level initiatives are not enough for the success of this mission, rather, our trade bodies such as Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the Dhaka Chamber of Commerce and Industry (DCCI) and the Metropolitan Chamber of Commerce and Industry (MCCI) can also play a vital role in establishing a unique labour market around the world.
There is a rich literature available on the impact of remittances on economic development and more specifically on the labour market and poverty in developing countries. A study of World Bank (2003) revealed that remittances have a strong impact on reduction of poverty in a country. On average, a 10 per cent increase in the share of international remittances in a country's Gross Domestic Product (GDP) will lead to a 1.6 per cent decline in the share of people living in poverty.
If we look at the statistics on the trends of remittances, it is remarkable. As for example, remittances of Bangladeshi nationals working abroad amounted to US$5979 million (8.8 per cent of GDP) in fiscal 2006-07 as against US$4802 million(7.7 per cent of GDP) in the preceding year indicating an increase of 24.5 per cent in fiscal 2006-07 and 24.8 per cent in fiscal 2006-06.
(The writer can be reached at e-mail: hossain_mohammed@hotmail.com)
The above scenario of the labour markets obviously is the proof of Bangladeshi workers' efficiency and their merit, irrespective of the nature of their jobs. As mentioned before, the lack of government initiatives to explore new labour markets remains to be the main barrier to the development of this sector. In this case, the Bangladeshi missions are not dealing with this matter in an efficient way. This scribe has been working in Qatar and gained some knowledge of labour markets in Qatar and had spoken personally to some Bangladeshi workers. They all said that Qatar has good labour markets and Bangladeshis can occupy their due place there. It is known that Bangladesh and Qatar on January 6, 2008 signed an additional protocol, according to which Qatar will recruit more workers, especially skilled workforce, from Bangladesh. In addition, Qatar is interested in recruiting skilled professionals like academics, engineers and IT experts, apart from semi- and un-skilled workers. More than 15,000 workers went to Qatar in 2007.
We have a skilled, semi- and un-skilled as well as professionals workforce. Most of the workers working in this region are semi- and un-skilled ones such as drivers, builders, helpers, and cleaners. Professional workforce such as teachers, engineers and doctors is, however, limited in size.
In order to enrich the number of professional workers, the authorities concerned in Bangladesh must maintain liaison with foreign countries in a professional way so that we can hold our labour markets abroad as well as maintain a smooth inflow of foreign remittance. Moreover, only government level initiatives are not enough for the success of this mission, rather, our trade bodies such as Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the Dhaka Chamber of Commerce and Industry (DCCI) and the Metropolitan Chamber of Commerce and Industry (MCCI) can also play a vital role in establishing a unique labour market around the world.
There is a rich literature available on the impact of remittances on economic development and more specifically on the labour market and poverty in developing countries. A study of World Bank (2003) revealed that remittances have a strong impact on reduction of poverty in a country. On average, a 10 per cent increase in the share of international remittances in a country's Gross Domestic Product (GDP) will lead to a 1.6 per cent decline in the share of people living in poverty.
If we look at the statistics on the trends of remittances, it is remarkable. As for example, remittances of Bangladeshi nationals working abroad amounted to US$5979 million (8.8 per cent of GDP) in fiscal 2006-07 as against US$4802 million(7.7 per cent of GDP) in the preceding year indicating an increase of 24.5 per cent in fiscal 2006-07 and 24.8 per cent in fiscal 2006-06.
(The writer can be reached at e-mail: hossain_mohammed@hotmail.com)