To the delight of many, there is a spike in the remittance earnings of manpower exporting countries in recent months. Bangladesh is not only one of these countries but ranks among top ten remittance-earning countries in the world. The surge is credited to an upgrade in the legal status of migrant workers in Gulf countries. According to a World Bank report, Bangladesh is witnessing a rebound in remittance from the Gulf Co-operation Council (GCC) countries. From this it is concluded that some of the legal problems faced by the Bangladeshi migrant workers have already been resolved or mitigated. The demand for semi-skilled labour from Bangladesh appears to have made the GCC countries to soften their policy and make accommodation. Labourers, who were threatened with deportation, can now settle down to their life of expatriate. It is not known what role was played by Bangladesh embassies in resolving the crisis. The expectation is that they took part in the negotiation with the authorities in right earnest.
Growth in remittance to Bangladesh during the current fiscal is likely to be better than the South Asia average of 5.5 per cent if the remaining problems regarding legal status are removed and the freeze on Bangladeshi labour recruitment in Saudi Arabia and the UAE is withdrawn. Already remittance is forecast to grow by 8.62 per cent this year which is in stark contrast to last year's figure of 2.66 per cent. In the first three months of the current fiscal remittance shot up 21.85 per cent in contrast to a decline of 8.10 per cent during the same period in fiscal 2013-2014. In September alone $ 1.32 billion was remitted, up by 28.43 per cent year-on year. Foreign reserve now stands at $ 22.12 billion, a record for recent years. The surge in remittance has been accompanied by decline in cost of remittance with the emergence of new financial institutions, use of technology to support digital payments and progress in expanding financial inclusion. Greater volume of wages earned is now being remitted through the official channel because of the hassle-free environment and efficient services provided to migrant workers. Competition among financial institutions engaged in repatriating remittance has led to improvement in the quality of service.
Among the top ten remittance countries, India is attracting $ 72 billion in remittance. The country, with 14 million migrant workers, is expected to remain in the top spot in the foreseeable future. India is followed by China which is projected to earn $ 64 billion this year. The Philippines at third place among the top ten earning $ 28 billion is likely to maintain its position. Next is Mexico earning $ 24 billion followed by Nigeria which earns $ 21 billion. Egypt occupies the sixth place earning $18 billion while Pakistan at seventh position earns $17 billion. Bangladesh is above Vietnam taking up eighth position among the top ten remittance-earning countries.
Remittances by international migrants from developing countries are on course for strong growth this year, according to the World Bank report. However, violence and conflict in several countries in the Middle East and North Africa are causing some problems for the migrant workers. If violence and conflict escalate migrant workers from the affected countries may be forced to return home. This will have adverse impact on remittance flow.
Officially recorded remittance to developing countries are expected to reach $ 435 this year, an increase of 5.0 per cent over 2013. The destination of this remittance flow is largely to Asia and Latin America. Remittance in developing countries is forecast to continue climbing in the medium term, reaching an estimated $ 454 billion in 2015, according to the World Bank report. Remittance to developing countries remain an important and stable source of private inflow of foreign exchange. It helps sustain the balance of payments in the recipient countries. In 2013, remittances were significantly higher than foreign direct investment to developing countries with the exclusion of China. It was three times larger than official development assistance.
According to the World Bank report, average remittance to receiving households in Bangladesh is worth twice the per capita income. It is equivalent to almost 80 per cent of the receiving households' income. The importance of remittance to Bangladesh is further highlighted by the credit rating agencies while assessing the credit ranking of the country.
In spite of the important contribution made by migrant workers to the economy of Bangladesh, services provided to them by government agencies leave much to be desired. Except in the case of a few countries the migrant workers do not receive much help before their departure. Red tape proves discouraging to many and they fall victim of exploitation in the hands of unscrupulous agents. Even when the government takes up a programme of directly helping the migrant workers as in the case of sending them through government-to-government channel it is not implemented satisfactorily. In the host countries where migrants work Bangladesh missions do not always take prompt actions to resolve their problems. Services provided by private manpower agents are costly and do not always match the promises made by them.
What is required is a concerted effort by both the government and the private sector to help the migrant workers. They should have continuing commitment to them both before their departure and during their stay in the host country. Migrant workers, who are making such an important contribution to the economy, deserve a better deal.
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