Importance of foreign remittances in the economy of Bangladesh is widely recognised as integral to the country's development. Along with readymade garment (RMG), inward workers' remittances have been identified as instrumental to reducing the overall incidence of poverty in the country.
Remittances are used for consumption and investment which stimulate demand for goods and services, as well as contribute to the economic growth of a country. According to a World Bank study, Bangladesh is among the top 10 recipients (8th) of officially recorded remittances for 2013 and received $3.27 billion in remittance during July-September, 2013 period. In FY 2012-13, the flow of remittance totaled US$ 14461.13 million which is substantially higher than that of the previous FY (2011-12) amounting to US$ 12843.44 million. In the current year, despite many ups and downs, the total figure of inward remittances may still be expected to demonstrate an upswing.
At present, around 9 million Bangladeshi migrant workers are in 155 countries. The remittance is 11.61 per cent of the total GDP of the country (2013). Remittance inflows have grown from about 2.5 per cent of GDP in the beginning of the 1990s to exceed 11 per cent in 2008 (amounting to about 9.2 billion).
In Bangladesh, overseas migration started during the period of British colonisation. But it was mostly region centric and was far from what one may dub mass exodus that commenced in the recent decades. Labour migration in a big way can be traced back to the 1970s due to the increase in labour demand from countries such as Saudi Arabia and the UAE. Subsequently, labour migration also expanded to other parts of Asia, particularly to the South-East Asian countries such as Japan, South Korea, Singapore and Malaysia. Other major destinations for Bangladeshi migrant workers are Kuwait, Qatar, Oman, Libya, Bahrain, Jordan, Brunei etc. Lately, Lebanon has emerged as a new destination for many Bangladeshi migrant workers, particularly women workers. Presently, a large number of women workers are migrating from Bangladesh, especially to the Middle Eastern countries. Apart from these, UK, Italy, and some African countries are drawing migrant workers from Bangladesh in large numbers. Migration of workers to Malaysia in recent times has increased manifold. According to the Bangladesh Bureau of Manpower Employment and Training (BMET), Bangladeshi migrant workers were first deployed in Malaysia in 1978 with only 28 Bangladeshis sent to Malaysia that year.
Migration from Bangladesh mostly comprises male workers, due to restrictive government policies limiting women's migration particularly over the last decade; but now women's migration is on the rise. The majority of Bangladeshi migrant workers are unskilled, engaged in construction, cleaning, security jobs etc. There are also skilled and semi-skilled Bangladeshi workers employed in different factories, markets etc. But the notable thing, as revealed in a survey is that, most of the remittances come from semi-skilled, un-skilled workers and very little from skilled workers.
Figures above suggest the vibrant state of remittance over the past decade, implying the potential for employment of job seekers abroad. One key reason of the surge of workers in most of the popular destinations is of course the low wage that makes employers interested to recruit workers from Bangladesh. This scenario has to change so that more avenues open up for skilled workers in various arenas.
It need not be mentioned that remittances of the migrant workers, besides helping their families back home, have been generating a considerable demand for goods and services across the country with visible economic impact. This has positively influenced the macro economy. The strengthening of the country's foreign exchange reserve is largely attributable to the remittances.
The tension in the Middle East and adjoining countries has currently caused some difficulties for recruitment of overseas jobseekers. However, with effective diplomatic efforts, a good deal of the difficulties can hopefully be removed. At the same time, the government also has to work out mechanism whereby migrant workers can invest their hard-earned money in a proper way.
The writer is a student of Development Economics, South Asian University, New Delhi, India.
maidulhayder67@yahoo.com.