Article Dr.aminur

8/13/2019 Article Dr.aminur

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Impact of Migration on Bangladesh Economy :A Critical Analysis

Md. Aminur Rahman, Ph.D.Md. Masudur Rahman, MBA1

Abstract :

At present time, migration is considered as effective tool for poverty reduction.And it has more application for the labor-oriented country as Bangladesh whicheconomy is more or less influenced by foreign remittance. Besides, in globalizationera, it attracts the attention of researchers, economists, politicians anddevelopment-thinkers for rethinking the role of migration in new century. In aglobalized village, where visa will also be opened, migration must play vital role forincome at micro and macro level. And as a country, Bangladesh should have thepreparation for develop migration-oriented laborer, create people sensitivemigration policy and take smother steps that enable the working people for goingabroad.

Introduction:

The stock of international migrants in the world doubled in the quarter century to the

year 2000 and almost ten percent of the persons residing in the developed regions of

the world are now international migrants.2Of the stock of 175 millions of international

migrants in the world, nearly one third was in Europe, another 29 percent in Asia and 23

percent in North America in 2000.

3

During the third decades, the Asian and Pacific

region has witnessed a substantial increase in the scale, diversity and complexity of

population movements. More than 60% of the world population lives in this region and

there are major migration flows from this continent to Europe and North America.4

1Authors are Researchers in Research Department, TMSS, Bangladesh.

2International Migration and Economic Development : Lesson from Low Income Countries. By Lucas, E.B.

Department of Economics, USA : 2005, p. 4.3Ibid

4Migration and Poverty in Asia ; With Preference to Bangladesh, China, the Philippines, Viet Nam (item

6(a) of the provisional agenda) by economic and Social Commission for Asia and Pacific, 27-29 Aug,

2003.


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Table: World population and migrants stocks by continent, 20005

Region Total population(million)

Migrant Stock(million)

% ofpopulation

Asia-Pacific 3702.8 55.5 1.4Africa 793.6 16.2 2.0Europe 727.3 56.1 7.7North America 313.1 40.8 13.0Latin America/Caribbean 518.18 5.9 1.1Global 6055.6 174.5 2.9

Scenario of Bangladesh

Country Context: Bangladesh is a small deltaic country of South Asia with a total

land area of 145,035 sq. km. It contains eight largest population in the world. In 2001,

its total population stood at 130 million6. Over the last two decades, Bangladesh has

experienced positive economic and social changes. Its average annual GDP growth rate

has increased from 2.4% in the 1980s to 4.9% during the 1990s7. Literacy has also

increased. In 1981, the national literacy rate was 23.8%. In 2001, it rose to 40.8%. The

population growth rate has declined from 2.1% in the 1980s to 1.65 in the period 1995-

20008. Nonetheless, Bangladesh remains one of the least developed countries of the

world. 25 million people (19.23% of total population) live in extreme poverty.

Scenario of migrants in Bangladesh: Bangladesh is a huge labor surplus country

and belongs thus to the supply side of the world labor market. Government promotes

employment of human capital as part of its development plan. International migration of

labor has in recent years emerged as the most important issue in the development

discourses in Bangladesh and has assumed centre-stage in the economic policy

5Ibid

6Government of Bangladesh, 2001

7MHHDC, 2001

8Ibid


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planning. Gross official figures from 1976-2002 show that some 3.2 million Bangladeshis

left the country.9The current flow is some 250,000 annually which is about 13.5% of

the annual additional labor force. Total earnings from remittances increased from about

US$ 3.37 billion in FY-04 to about US$ 3.85 billion in FY-05, representing 14.2 percent

growth.10

According to The Bureau of Manpower, Employment and Training (BMET) information, in

recent years, the flows of migrants are grown rapidly and it also created massive inflows

in national economy. It is seen in the following table, since 1997 to 2007 the number of

migrants has been grown significantly and it also impact on national development

immensely.

Table: Flow of migrants and remittances in Bangladesh11Year No. of migrants Remittance (US$)

1976 8086 23.711986 68658 576.201996 211714 1355.34

2007 (June-July) 335098 2043.90

Importance of migration on national economy: International migration plays

a vital role in the national economy of Bangladesh in two major ways. Firstly, it reduces

unemployment and secondly migration results in remittance flows to the country which

serves as an important but inexpensive source of much needed foreign exchange. It is

estimated that one-third of the total working age population of Bangladesh is either

unemployed or underemployed (GoB, 1991). Mahmud (1998) and Afsar (2000)

emphasize that the continuous outflow of people of working-age and the accompanying

inflow of remittances has played a major role in keeping the unemployment rate stable.

9Speech delivered by Alim, Mr. Abdul (Bangladesh), First Secretary at the second committee on agenda

item 54 (c) International Migration and Development; 60 UNGA, New York, Oct. 27, 2005., p. 210

ibid, 211 BMET, Ministry Of Expatriates` Welfare and Overseas Employment, Government of Bangladesh. 2007.


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Currently, garments sector is treated as the highest foreign exchange earner in

Bangladesh. And it is known that, since 1980s, contrary to popular belief, remittances

from migrants workers played a much greater role in sustaining the economy of

Bangladesh than did of RMG sector. So it has a great impact on our national

development.

Scale of migration: The Bureau of Manpower, Employment and Training (BMET)

data show that from 1976 to January 2002, the total number of Bangladeshis working

abroad as short-term migrants stood at more than three million. They indicate a yearly

average flow (1991-2002) of around 222,000. Although there was a steady increase in

the flow of migration since 1976, this has recently fallen. In 1991, altogether 268,182

persons migrated; the figure dropped to 222,686 in 2000, and further to 188,965 in

2001. According to US Bureau of Census, in 2001, number of Bangladesh-born US

nationals was 104,000. In 1996, the figure in Canada was 12,405. The 2001 Census of

the Australian Bureau of Statistics reported, number of Bangladesh-born Australians to

be 9,078. In OECD countries, there were 84.000 Bangladesh-born persons in 1991.12

Considering all three types, there are 300,000 people of Bangladeshi origin in the UK

and same number in the US. Estimates put total number of Bangladeshis living in those

countries, both on a regular and irregular status, at 1.1 million.13

12Migration as a Livelihood Strategy of the Poor : the Bangladesh Case by Tasneem Siddiqui, RMMR

Unit, Dhaka University, Bangladesh. Paper was presented at regional conference on Migration,

Development and Pro-poor Policy Choices in Asia, held in Dhaka, on 22-24 June, 200313

Ibid.


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Most Important impact of Migration on Bangladesh:

International migration plays a vital and indispensable role in the national economy of

Bangladesh in two major ways. Firstly, it reduces unemployment. Secondly, migration

results in remittance flows to the country. Which serve as an important but inexpensive

source of much needed foreign exchange.

It is estimated that one-third of total working age population of Bangladesh is either

unemployed or underemployed (GoB, 1998). It is seen that continuous outflow of

working people and the accompanying inflow of remittances has played a role in

keeping the unemployment rate stable. Migration, therefore, eased the pressure of

alternative employment creation on successive governments. Migration remittances

account for a significant portion of the countrys foreign exchange earnings as stated

before.

The process of international migration has widespread social ramificationwithin the

countries of origin. In Bangladesh, 3,35,098 people are migrated till July, 2007.14They

have contribute enormously in social development through various way including family

development, enhancing education of family members especially girls education, access

to market, raising consciousness etc. It contributes to the livelihoods of the poor.

70% of rural people are either completely landless or functionally landless.15 IN this

situation, migration is a major coping strategy for poor people to earn a livelihood.

Remittance is also most important ingredient. Among the developing and transition

countries where labor market is a chronic problem, exporting labor in return for

14BMET, Government of Bangladesh.

15Bangladesh Bureau of Statistics (BBS), 1998-99


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remittances poses as attractive component as development strategy. And till July 2007,

US$ 2043.90 has been in-flowed and invested in Bangladesh economy.

Health is considered as a problematic issue due to migrants unconscious sex behavior.

Sometimes, they bear infectious virus as STD and HIV. On the contrary, there is another

picture that several migrants establish Hospitals and Clinics when they back in country.

And the family members avail sufficient health facilities for their financial status.

Education is another area, where most of the migrants family members gain better

education than non-migrant people. Besides, every year, considerable number of

students going abroad for higher education that enrich our country.

As a developing country, Gender is very much burning issue in Bangladesh. It is

revealed, migration impacts on gender development in two ways. Firstly, women

migrants are directly benefited through migration-development nexus ; secondly, the

female members of migrants family are facilitated highly through educating,

empowering, accessing to decision-making, mobility etc.

In a nutshell, it is said, migration is considered most effective strategy that gear-up the

economy of developing country especially for working-people oriented country as

Bangladesh. And we think, it has lot of positive impact in our national development. For

more positive result, it should be needed to take several steps in policy making level as

early as possible.


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Recommendations :

Government should take initiative to complete a computerized data-bank of allmigrants within very short time

Government should have policy to select a good number of people and developthem through vocational education for sending outside of country.

Government should offer credit to the poor people for going outside the countrythat impact a lot on our well-being at micro & macro-level

NGOs / MFIs would also offer credit to poor people for going outside country andits a new horizon for credit practice

Government should have take policy to sent one male/female from one familyand ten lacs families will be facilitated within 2015.


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References:

Lucas, E.B., International Migration and Economic Development: Lesson from LowIncome Countries, Department of Economics, USA : 2005, p. 4.

Migration and Poverty in Asia ; With Preference to Bangladesh, China, the Philippines,Viet Nam (item 6(a) of the provisional agenda) by Economic and SocialCommission for Asia and Pacific, 27-29 Aug, 2003.

Speech delivered by Alim, Mr. Abdul (Bangladesh), First Secretary at the secondcommittee on agenda item 54 (c) International Migration and Development; 60UNGA, New York, Oct. 27, 2005,p. 2

BMET, Ministry Of Expatriates` Welfare and Overseas Employment, Government ofBangladesh. 2007.

Siddiqui Tasneem, Migration as a Livelihood Strategy of the Poor : the BangladeshCase, Dhaka University. [Bangladesh. Paper was presented at regionalconference on Migration, Development and Pro-poor Policy Choices in Asia, heldin Dhaka, on 22-24 June, 2003]

Bangladesh Bureau of Statistics (BBS), 1998-99

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