Streamlining a sector that lays the golden eggs
Wednesday, 10 October 2007
Enayet Rasul
THE readymade garments (RMG) industries of Bangladesh together with remittances from overseas Bangladeshi workers, are the twin pillars supporting the Bangladesh economy. Sound performance in both of these sectors is crucial for the basic macro economic stability of Bangladesh. But stresses are significantly showing up in the RMG sector with significantly reduced import orders received by it in recent months. Now, it appears that the other pillar, the manpower export one, is also headed for bad times.
Manpower export has been more and more impressively bolstering the foreign currency reserve that stood at a paltry little over US$ 1.0 billion some five years ago. The reserve position is now four times larger at over US$ 5.0 billion and the steady rise in manpower exports have a lot to do with the comfortable and much improved reserve position. The reasonably good reserve position has helped the economy to absorb different shocks and to sustain its viability. But the declining fortunes of the RMG sector, plus the worrying developments in the manpower export sector, both seem poised to deliver hard blows on the economy.
Malaysia today is considered as the most prospective country in the world present-day for the export of manpower on a large scale. The economy of this country is in a fast growing mode but it requires a large number of foreign workers to maintain the tempo of its economic activities. Bangladesh, on its part, is desperate to find out large scale outlets for its manpower after the relatively dried-up conditions in the traditional export markets of its manpower in the Middle East such as in Saudi Arabia and the Gulf countries. Thus, the sending out of manpower on a large scale to Malaysia always beckoned to Bangladesh as a very attractive possibility. Apart from sharing the same religion, geographical characteristics and other attributes, Malaysia is also known to be offering relatively good terms and conditions to foreign workers on its territories.
But the export of manpower to Malaysia from Bangladesh was stopped by an order of the government of that country in 1999. Ever since that ban, Bangladesh has been trying real hard to get it lifted. The efforts paid off and it was lifted towards the end of last year and the Malaysian government signed a contract for the dispatch of 345,000 Bangladeshi workers to that country in the first phase. So far, some 157,000 Bangladeshis have gone to Malaysia during the last 11 months after the lifting of the ban. But to the great disappointment of the job seekers, the Malaysian government suddenly reimposed a ban on the export of manpower to that country from October 3 centering on the same reasons that caused the first ban to be imposed in 1999 : the unethical activities of Bangladeshi manpower exporters and that of their Malaysian accomplices.
Uncertainty was created whether the remaining 188,000 from the contract who have not yet gone to Malaysia would be covered by the ban. The uncertainty was subsequently cleared up somewhat but the issue is still not fully clear. It appears now from clarification from Malaysian authorities that at least those who have processed contracts already and are about to leave for Malaysia may do so. But it is still unclear whether the entire quota of 188,000 remaining under the contract can be filled or whether more workers-- under the contract and the quota-- can start processing contracts. Besides, the really worrying part is that the ban will surely apply to any number beyond 188,000. But it was estimated earlier that Malaysia has the potential to take in at least 2.0 million workers from Bangladesh only in the span of the next two-three years. If the ban remains on force this vast and lucrative prospect will be denied to Bangladesh and there could not be a worse tragedy than this.
Who should be blamed for this extremely frustrating development ? Preliminary investigations showed that corrupt officials at the Bangladeshi mission in Kuala Lampur, the greedy and unscrupulous manpower exporting firms in Bangladesh and their similarly corrupt accomplices in Malaysia, have brought on this tragedy. But it would not occur, if the government in Bangladesh had taken comprehensive and sustainable measures since the lifting of the Malaysian ban last year to avert its reimposition. Not only in relation to Malaysia, deep cleansing measures in the whole manpower sector and well conceived policies to guide it, have been overdue. The great prospects of this sector have remained on hold from not cleaning its corruption and other ill practices. The lack of proper policies and their execution have kept chained so far the great possibilities of this sector. But the latest Malaysian tragedy ought to shock all concerned --specially the government -- to embark on a determined course of streamlining the manpower sector.
The interim government is doing useful work in many vital areas. Therefore, it should be neither irrelevant or expecting much that it should give its due attention to the aspects of frauds, undue exploitation and all other forms of unacceptable activities in the manpower export trade. There is also opportunity to deal in a tough manner with these fraudsters and unethical operators as the country is under an emergency that makes it possible the harder and swifter application of the laws . Besides, the government would be addressing the needs of a pivotal economic sector in the process while also acting to safeguard the desperate needs of a section of people of modest means who get cheated and suffer very great agonies from spending time in foreign jails and turning into paupers.
According to reports, hardly any abatement is noted in the activities of the rackets which have been taking large sums of money from gullible people with promises of sending them abroad with jobs. While every four out of five may succeed in going abroad to take up employment, the fifth one in Bangladesh becomes the victim of fraud. This has been happening year after year when Bangladesh's competitors in manpower exports from neigbouring India, Pakistan and Sri Lanka have been streamlining their manpower trade with great beneficial effects of the same for their individuals and their national economies. Internally, these countries have developed conditions where committing of frauds in the manpower export sector has become very difficult. The foreign missions of these countries are also found to be reasonably active in ensuring the rights and interests of their expatriate workers abroad.
Thus, foreign employers feel obliged to faithfully pay contracted amounts to their workers and also to provide other pledged financial and other benefits. Workers from these countries are also not allowed to take up jobs at wages far below the market price in the employing countries. Governments also have been maintaining and increasing resources for the training of workers with the eye for overseas markets. The overall policy in these countries is to send out more skilled than unskilled workers because the earnings from the skilled ones are greater. Financial institutions like banks in India and Pakistan provide loans on easy terms to workers to pay off the fees of recruitment agencies and for other costs. Thus, the amounts that these countries are able to earn from their overseas working people from pursuing such policies are far greater than what is being earned by Bangladesh.
Therefore, it is imperative to prepare policies and implement them sincerely for Bangladesh to realise its great potential from manpower exports. The first task in order would be ensuring that unscrupulous manpower firms cannot function in any form. All authorised manpower exporting firms must be made to operate honestly and this should include taking only the government approved fees from different categories of workers.
Bangladeshi missions abroad need to be geared to play out their due role to fully meet the representational needs of the country's expatriate workers. Specially the nests of corruption found in our missions around the world who are in many cases directly responsible for the woes of our workers, the same should be flushed very clean indeed. Each mission should be staffed with competent labour attaches and equally efficient supporting staff. But the work of these officials should be closely monitored and evaluated. Accountability should be in-built in their employment contracts with the missions.
Like the other subcontinental countries, official training opportunities for potential expatriate workers must increase and the aim of training ought to be creation of skilled manpower in diverse areas for overseas job markets. The ones who will take up employment abroad must be prevented from agreeing to accept wages or salaries below a ceiling in their respective categories. Financial organisations should be encouraged to run schemes to extend easy loans for the overseas workers to help them in the payment of their fees to recruitment agencies and meet other costs.
THE readymade garments (RMG) industries of Bangladesh together with remittances from overseas Bangladeshi workers, are the twin pillars supporting the Bangladesh economy. Sound performance in both of these sectors is crucial for the basic macro economic stability of Bangladesh. But stresses are significantly showing up in the RMG sector with significantly reduced import orders received by it in recent months. Now, it appears that the other pillar, the manpower export one, is also headed for bad times.
Manpower export has been more and more impressively bolstering the foreign currency reserve that stood at a paltry little over US$ 1.0 billion some five years ago. The reserve position is now four times larger at over US$ 5.0 billion and the steady rise in manpower exports have a lot to do with the comfortable and much improved reserve position. The reasonably good reserve position has helped the economy to absorb different shocks and to sustain its viability. But the declining fortunes of the RMG sector, plus the worrying developments in the manpower export sector, both seem poised to deliver hard blows on the economy.
Malaysia today is considered as the most prospective country in the world present-day for the export of manpower on a large scale. The economy of this country is in a fast growing mode but it requires a large number of foreign workers to maintain the tempo of its economic activities. Bangladesh, on its part, is desperate to find out large scale outlets for its manpower after the relatively dried-up conditions in the traditional export markets of its manpower in the Middle East such as in Saudi Arabia and the Gulf countries. Thus, the sending out of manpower on a large scale to Malaysia always beckoned to Bangladesh as a very attractive possibility. Apart from sharing the same religion, geographical characteristics and other attributes, Malaysia is also known to be offering relatively good terms and conditions to foreign workers on its territories.
But the export of manpower to Malaysia from Bangladesh was stopped by an order of the government of that country in 1999. Ever since that ban, Bangladesh has been trying real hard to get it lifted. The efforts paid off and it was lifted towards the end of last year and the Malaysian government signed a contract for the dispatch of 345,000 Bangladeshi workers to that country in the first phase. So far, some 157,000 Bangladeshis have gone to Malaysia during the last 11 months after the lifting of the ban. But to the great disappointment of the job seekers, the Malaysian government suddenly reimposed a ban on the export of manpower to that country from October 3 centering on the same reasons that caused the first ban to be imposed in 1999 : the unethical activities of Bangladeshi manpower exporters and that of their Malaysian accomplices.
Uncertainty was created whether the remaining 188,000 from the contract who have not yet gone to Malaysia would be covered by the ban. The uncertainty was subsequently cleared up somewhat but the issue is still not fully clear. It appears now from clarification from Malaysian authorities that at least those who have processed contracts already and are about to leave for Malaysia may do so. But it is still unclear whether the entire quota of 188,000 remaining under the contract can be filled or whether more workers-- under the contract and the quota-- can start processing contracts. Besides, the really worrying part is that the ban will surely apply to any number beyond 188,000. But it was estimated earlier that Malaysia has the potential to take in at least 2.0 million workers from Bangladesh only in the span of the next two-three years. If the ban remains on force this vast and lucrative prospect will be denied to Bangladesh and there could not be a worse tragedy than this.
Who should be blamed for this extremely frustrating development ? Preliminary investigations showed that corrupt officials at the Bangladeshi mission in Kuala Lampur, the greedy and unscrupulous manpower exporting firms in Bangladesh and their similarly corrupt accomplices in Malaysia, have brought on this tragedy. But it would not occur, if the government in Bangladesh had taken comprehensive and sustainable measures since the lifting of the Malaysian ban last year to avert its reimposition. Not only in relation to Malaysia, deep cleansing measures in the whole manpower sector and well conceived policies to guide it, have been overdue. The great prospects of this sector have remained on hold from not cleaning its corruption and other ill practices. The lack of proper policies and their execution have kept chained so far the great possibilities of this sector. But the latest Malaysian tragedy ought to shock all concerned --specially the government -- to embark on a determined course of streamlining the manpower sector.
The interim government is doing useful work in many vital areas. Therefore, it should be neither irrelevant or expecting much that it should give its due attention to the aspects of frauds, undue exploitation and all other forms of unacceptable activities in the manpower export trade. There is also opportunity to deal in a tough manner with these fraudsters and unethical operators as the country is under an emergency that makes it possible the harder and swifter application of the laws . Besides, the government would be addressing the needs of a pivotal economic sector in the process while also acting to safeguard the desperate needs of a section of people of modest means who get cheated and suffer very great agonies from spending time in foreign jails and turning into paupers.
According to reports, hardly any abatement is noted in the activities of the rackets which have been taking large sums of money from gullible people with promises of sending them abroad with jobs. While every four out of five may succeed in going abroad to take up employment, the fifth one in Bangladesh becomes the victim of fraud. This has been happening year after year when Bangladesh's competitors in manpower exports from neigbouring India, Pakistan and Sri Lanka have been streamlining their manpower trade with great beneficial effects of the same for their individuals and their national economies. Internally, these countries have developed conditions where committing of frauds in the manpower export sector has become very difficult. The foreign missions of these countries are also found to be reasonably active in ensuring the rights and interests of their expatriate workers abroad.
Thus, foreign employers feel obliged to faithfully pay contracted amounts to their workers and also to provide other pledged financial and other benefits. Workers from these countries are also not allowed to take up jobs at wages far below the market price in the employing countries. Governments also have been maintaining and increasing resources for the training of workers with the eye for overseas markets. The overall policy in these countries is to send out more skilled than unskilled workers because the earnings from the skilled ones are greater. Financial institutions like banks in India and Pakistan provide loans on easy terms to workers to pay off the fees of recruitment agencies and for other costs. Thus, the amounts that these countries are able to earn from their overseas working people from pursuing such policies are far greater than what is being earned by Bangladesh.
Therefore, it is imperative to prepare policies and implement them sincerely for Bangladesh to realise its great potential from manpower exports. The first task in order would be ensuring that unscrupulous manpower firms cannot function in any form. All authorised manpower exporting firms must be made to operate honestly and this should include taking only the government approved fees from different categories of workers.
Bangladeshi missions abroad need to be geared to play out their due role to fully meet the representational needs of the country's expatriate workers. Specially the nests of corruption found in our missions around the world who are in many cases directly responsible for the woes of our workers, the same should be flushed very clean indeed. Each mission should be staffed with competent labour attaches and equally efficient supporting staff. But the work of these officials should be closely monitored and evaluated. Accountability should be in-built in their employment contracts with the missions.
Like the other subcontinental countries, official training opportunities for potential expatriate workers must increase and the aim of training ought to be creation of skilled manpower in diverse areas for overseas job markets. The ones who will take up employment abroad must be prevented from agreeing to accept wages or salaries below a ceiling in their respective categories. Financial organisations should be encouraged to run schemes to extend easy loans for the overseas workers to help them in the payment of their fees to recruitment agencies and meet other costs.