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Home Protifolon Protifolon Issue 1 Impact on migration and remittance

Impact on migration and remittance

Bangladesh is the fifth highest remittance-earning country in the world and is the second largest sector in the country which is integrated with the world economy. About 1.7 million workers left Bangladesh in search of jobs during 2007 and 2008 and about five million Bangladeshis are currently working abroad, mainly in Saudi Arabia, Kuwait and Malaysia.

In 2009, it is predicted that the number of workers going abroad will be significantly lower with UAE, Saudi Arabia, Malaysia and Singapore already struggling with slow economic growth and declining demand for construction and other services [CPD and ILO, 2009].  Overall remittances during 2008 were 37.3% higher than the previous year but since August 2008 they showed a decreasing trend as did the number of workers travelling overseas [Bangladesh Bank, 2009].

Bangladesh Bank suggests that because the oil rich countries of the Middle East  have accumulated large reserves of oil, migrant workers will still be in demand, but a  World Bank report suggests Bangladesh needs to create an additional one million jobs for the people likely to lose jobs at home and abroad (Asian Tribune, 2009). Any downward trend is likely to create issues for the receiving families. 

A 2005 International Organization for Migration (IOM) report examines the utilisation of remittance in Bangladesh and, drawing on varied research, shows the impact that remittance can have in reducing vulnerability, providing financial safety nets and improving areas such as access to education and household debt.

The IOM report suggests that the dependency on this income can create serious issues when the political or economic circumstances in the destination countries change and that “the importance of remittances for the receiving family cannot be underestimated.”               

For the migrants working abroad as well, economic crises can exacerbate already difficult conditions as their host countries become more constrained. Concerns include inadequate access to decent living and working conditions, cuts in social service provision, fear of xenophobic attacks and restricted access to worker rights (IOM, 2009). Whilst evidence for this in relation to Bangladeshi workers is difficult to find, it is important  in the growing turmoil to safeguard against human right violations.

So what measures can be introduced to protect migrant workers and their families? Whilst  Bangladesh Bank  have sought to improve the efficiency of transferring remittance, the Bangladesh Government has devised  a seven point strategy which includes extending existing manpower markets and exploring new host countries in Europe.  However in April’s emergency stimulus package remittances were absent (New Age, 2009). To protect migrants abroad and to try and retain remittance levels the Government need to prioritise this issue.
Recommendations include:

  • agree steps with Saudi Arabia and Kuwait to protect Bangladeshi’s working there
  • ensure good relations are maintained with existing migrant destinations such as UAE, Malaysia, Oman, and Qatar through diplomatic intervention
  • examine further alternative migrant destinations including Iraq, Bahrain, Mauritius, Sudan, Libya, and South Africa 
  • seek technical and financial support from the ILO and initiate memorandums of understanding (MOUs) between Bangladesh and the destination

countries of the migrants. These MOUs could contain basic rights such as full wages every month and safe working conditions
For returning migrants provisions should be put in place to assist in their repatriation, reception and reintegration and Official Development Assistance (ODA) could be increased to create employment opportunities.