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 which economy is more or less influenced by foreign remittance. Besides, in globalization era, it attracts the attention of researchers, economists, politicians and development-thinkers for rethinking the role of migration in new century. In a globalized village, where visa will also be opened, migration must play vital role for income at micro and macro level. And as a country, Bangladesh should have the preparation for develop migration-oriented laborer, create people sensitive migration policy and take smother steps that enable the working people for going abroad.

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.2 Of 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

Authors are Researchers in Research Department, TMSS, Bangladesh. International Migration and Economic Development : Lesson from Low Income Countries. By Lucas, E.B. Department of Economics, USA : 2005, p. 4. 3 Ibid 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 Social Commission for Asia and Pacific, 27-29 Aug, 2003.

Table: World population and migrants stocks by continent, 20005 Region Total population Migrant Stock % of (million) (million) population Asia-Pacific 3702.8 55.5 1.4 Africa 793.6 16.2 2.0 Europe 727.3 56.1 7.7 North America 313.1 40.8 13.0 Latin America/Caribbean 518.18 5.9 1.1 Global 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 199520008. 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

5 6

Ibid Government of Bangladesh, 2001 7 MHHDC, 2001 8 Ibid

planning. Gross official figures from 1976-2002 show that some 3.2 million Bangladeshis left the country.9 The 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 Bangladesh11 Year No. of migrants Remittance (US$) 1976 8086 23.71 1986 68658 576.20 1996 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.
9

Speech 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. 2 10 ibid, 2 11 BMET, Ministry Of Expatriates` Welfare and Overseas Employment, Government of Bangladesh. 2007.

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

Migration 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, 2003 13 Ibid.

12

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

14 15

BMET, Government of Bangladesh. Bangladesh Bureau of Statistics (BBS), 1998-99

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.

Recommendations :
Government should take initiative to complete a computerized data-bank of all migrants within very short time Government should have policy to select a good number of people and develop them through vocational education for sending outside of country. Government should offer credit to the poor people for going outside the country that impact a lot on our well-being at micro & macro-level NGOs / MFIs would also offer credit to poor people for going outside country and its a new horizon for credit practice Government should have take policy to sent one male/female from one family and ten lacs families will be facilitated within 2015.

References:
Lucas, E.B., International Migration and Economic Development: Lesson from Low Income 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 Social Commission for Asia and Pacific, 27-29 Aug, 2003. Speech 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. 2 BMET, Ministry Of Expatriates` Welfare and Overseas Employment, Government of Bangladesh. 2007. Siddiqui Tasneem, Migration as a Livelihood Strategy of the Poor : the Bangladesh Case, 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, 2003] Bangladesh Bureau of Statistics (BBS), 1998-99