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Best of times … Worst of times … Workforce Outflow and Remittance
Syed Nasir Ershad
Migration outflow from Bangladesh has increased over the years. Overseas employment of Bangladesh was slow during the 1980s but increased during the 1990s. In the 2001-2005 the trend went downward to 11,94,166 from 12,01,326 of 1996-2000. But the migration rate increased by 3 times in the years 2006-2010 compared to the year of 2001-2005. The rate of remittances received in Bangladesh shifted tremendously in the last the ten years. The number of overseas migrants from Bangladesh during the period 1976–2015 is estimated at around 9.57 million. In the year from 2006 to October 2015 total migrants is estimated around 5.39 million. Interestingly during the forty years more than 50 percent worker outflow has occurred in the last 10 years. Moreover, a large number of unrecorded workers are going to Malaysia, Maldives and other countries from Bangladesh using visit or student visa.
One of the characteristics of Bangladeshi migrants is that they are mostly unskilled and working in different country. Less-skilled workers, who comprise around 50% and semi-skilled who comprise around 15% of total migrants have less than 10 years of schooling with no ability to communicate in English or no certified training on any specific trade. Recently it is observed that most of the outgoing workers do not have any kind of education. Skilled workers, who comprise around 31.34% of migrant workers, have some training such as in engineering trades like welding, metal and electrical works, and plumbing. Such training enable them to earn a better salary and a longer or better job contract with employment in manufacturing and service sectors such as shipbuilding, construction, heavy machineries, and industrial manufacturing. The professional categories among the migrants (consisting of 2.42 %) include engineers, doctors, accountants, pharmacists, agriculturists, teachers, and so on. In terms of income, this group earns around 5–8 times more than unskilled workers. Workers are sent abroad with the help of recruiting agencies, but still a huge number of recruitment is conducted through individual initiatives and social networks.
Last 5/6 years remittance inflow of Bangladesh showed more than 10 billion US dollars every year. In 2014 total 14.96 billion US dollar remittances were received by Bangladesh. Performance of remittance inflow of Bangladesh is showing better than higher remittance receiving countries like India, Philippines and Egypt the over the years. Bangladesh was able to send more workers than Pakistan in last ten years even though in previous five years Bangladesh could not send substantial number of workers to Saudi Arabia (KSA) and United Arab Emirates (UAE). Bangladesh’s share of remittance inflow is the highest amount from these two countries together. In previous five fiscal years country’s remittance received from KSA and UAE is more than 5-6 billion US dollar together yearly.
Migrants send their remittances within the formal legal framework or in informal channel (hundi).The amount of remittance inflow into Bangladesh through informal channels has decreased significantly due to strict enforcement of anti-money laundering laws by the government and improvement of services by the commercial banks. According to two latest studies in the year of 2010 by Bangladesh Bank and Financial Action Task Force (FATF), a global anti-money laundering body, 17 to 24 percent of the total remittances come to Bangladesh through the informal channels. An earlier survey conducted on the period between 2000 and 2006 put the figure at 54-60 percent. An IMF study on Bangladesh covering the 1981-2000 period said the share of unrecorded remittances was 59 percent. IOM and UNDP conducted a survey in 2003, which found the amount at 54 percent. World Bank’s Global Economic Prospects 2006 estimated the share of informal remittance inflow at 54 percent (Daily Star 2010).
Recently efficient Government to Government negotiation with Qatar enabled Bangladesh to send more and more workers there in low migration cost. Female migration has been introduced by Bangladesh from 1991 and from 1991 to October 2015 the number has been estimated at about 4,34,193. Bangladesh has taken several initiatives which contributed towards the increase of female migration over the last decade. Total outflow of female migration has been 3,90,125 out of total migration 4,34,196 which amounts about 90%. Mostly they are going to KSA, UAE, Oman, Jordan, Lebanon, Hong Kong, Qatar and Mauritius. It was found that the female migrants are sending higher proportion of their income than the male migrants.