migration and sixth five years plan in bd.pdf
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Mainstreaming Migration into National Development Strategies
Migration and
Sixth Five Years Plan
in angladesh
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Migration and Sixth Five Years Plan in Bangladesh: Reflection
and Gaps
in
Development
Policies
and
Programmes
Md.
Mokhlesur
RahmanDevelopment Researcher
September 22, 2013
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ABSTRACT
Population migration is not a recent phenomenon in developing countries, but recently it has
gained significant policy attention. In Bangladesh, migration concerns have been incorporated
in different plans and polices. To identify how development plan and policies of Bangladesh
have incorporated migration concerns, this study reviews the Sixth Five Year Plan (SFYP) 2011‐
2015, National Skills Development Policy‐ 2011, Perspective Plan 2011‐ 2021 (Vision 2021) and
Millennium Development Goals (MDGs) of Bangladesh. These policies and plans have already
incorporated
some
directive
initiatives
which
are
positive
signs
and
reflect
the
willingness
of
key stakeholders to place migration as a priority national agenda. However, most plans and
policies are not guided by holistic migration plans and activities rather they are dominated by
ad‐hoc based activities and priorities. Hence, the study identifies that a comprehensive
migration‐mainstreaming approach is missing which should include (but not limit to) skills
development through improved education (including technical education) system, health
initiatives targeting migrants and their families, and awareness building among communities for
use of
regular
migration
channels
along
with
many
others.
The
approach
should
also
articulate
methods for easy remittance flows and good investment opportunities in the home country
which can play a significant role in development. The study concludes that the issues, concerns,
challenges defined in the Overseas Employment Policy 2013 must have strong presence in the
upcoming Seventh Five Year Plan.
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Table of Contents
ABSTRACT............................................................................................................................................ 1
SECTION ONE: INTRODUCTION ............................................................................................................ 3
1.1 Background .....................................................................................................................................3
1.2 Broad Objective: ..................................................................................................................... ........ 6
1.3 Broad Research Question: ..............................................................................................................6
1.4 Methodology (data & methods, process and analysis) .................................................................. 7
1.4.1 Data & Methods:..........................................................................................................................7
1.4.2 Process: ........................................................................................................................................7
1.4.3 Analysis ........................................................................................................................................ 7
1.5.
List
of
Policies,
Plans
and
Other
Documents
Reviewed ................................................................. 7
1.6 Analytical Framework: .................................................................................................................... 8
SECTION TWO: MIGRATION and DEVELOPMENT ‐ Global to Local Perspective ................................... 10
2.1 Migration Policy Context: Global Perspective ..............................................................................10
2.2 Migration Policy Context: Bangladesh Perspective ......................................................................12
SECTION THREE: FINDINGS................................................................................................................. 14
3.1 National Skills Development Policy ‐2011: ................................................................................... 14
3.2 SFYP & Vision 2021: ......................................................................................................................16
3.3 Scope of Budgeting for Skills Development for Overseas Employment: Tale of Targets and
Performances in different Plans of Bangladesh.................................................................................. 19
3.4 Resources Allocation, Overseas Employment and Remittances: .................................................22
3.5 Plan, Policies and Migration: Ambition versus Feasibility ............................................................25
3.6. Moving Ahead: Overseas Employment Policy 2013 ....................................................................26
SECTION FOUR: ANALYSIS , DISCUSSION AND CONCLUSION............................................................... 28
4.1 Analysis: ........................................................................................................................................28
4.2 Discussions:...................................................................................................................................30
4.3 Recommendations: .......................................................................................................................31
4.4 Conclusion...............................................................................................................................34
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SECTION ONE: INTRODUCTION
1.1 Background
In the developing countries, population migration is not a recent phenomenon. In the early 21st
century, it became top policy agenda in many developed and developing countries. Considering
role of migration in development, the critical objective is to maximize the benefits and minimize
the risks of migration for migrants and their families. Policy initiatives can define a
comprehensive process for migration that promotes development and reduces poverty in
developing countries as well as how migrants themselves may benefit (Skeldon, 2005: 15).
Migration, Remittances
&
Poverty
Alleviation
in
Bangladesh:
Planning
and
Policy
Context
In a recent study in Bangladesh, Pakistan, India, Vietnam and China, data shows that in
Bangladesh, some of 40% of rural households send adult members to seek work in towns. In
some areas, more than 80% of households’ income was derived from outside village. (ibid: 21).
Buchenau (2008) in a recent study on ‘Migration, Remittances and Poverty Alleviation in
Bangladesh’ reports that in Bangladesh after 1970s, labour migration has become a strategy for
household survival for many families. For migrants as well as for their families, migration carries
high costs and risks, particularly because a migrant’s family loses an important member of the
household for an extended period of time. As data suggests each year thousands of
Bangladeshis migrate to the Middle East and South Asia to work. According to the Bangladesh’s
Bureau of Manpower, Employment and Training (BMET), 377,591 people left the country in
2006, an increase of 50% over the previous year, and this number has increased most years
after 2007. By 2012 the number of overseas workers reached 607, 798 (where UAE is the
highest as an individual country of destination and May as the month the highest number of
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people migrated). Similarly, January to June 2013, total number of overseas workers is 208,340
with 79,858 people (34%) migrating to Oman1.
In Bangladesh,
the
potential
contribution
of
remittances
from
migrants
has
been
acknowledged
by many national policies and planning. For example, the Sixth Five Year Plan (FY 2011‐2015)
endorsed that remittances sent by overseas workers to their families has a significant
development role in Bangladesh. The Plan also proscribes that the overseas employment
strategy should be strengthened. It further added that while the current overseas employment
strategy focuses on sending low skilled manpower; the new strategy will focus on sending
semi‐skilled and skilled manpower to existing as well as new destinations. The Plan also
indicated that
programs
will
be
undertaken
to
improve
the
skills
base
of
the
people
who
wish
to
migrate2.
Similarly some poverty reduction strategy papers refer to the benefits of remittance from
migration, however many others portray migration negatively equating it with human
trafficking, loss of skilled professionals, health related problems and the spread of disease,
increased poverty or criminality. In establishing the linkage of migration with development,
policy makers
tend
towards
law
enforcement
activities
such
as
curbing
irregular
migration
and
trafficking, strengthening immigration and customs services rather than focusing on harnessing
beneficial effects like increased skills and knowledge as well as increased household income
levels from remittances. When the benefits of migration are recognized by critics, the focus
tends to be limited to remittances and on other economic effects.3
1 http://www.bmet.org.bd/BMET/resources/statistics/18.jpg, retrieved on August 19, 2013.
2 GED, 2011, FFYP 2011‐2015,Pp‐4
3 Global Migration Group, Pp‐17, “ Mainstreaming Migration into development Planning: A handbook for Policy
Makers and Practitioners”
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Several migration related concerns have not been featured comprehensively in the
development plans (ibid). These are:
• Lack of data and indicators on migration is a major problem in many countries.
• Lack of capacity and expertise and/or financial resources to understand and address the
multiple dimensions of migration, beyond economic dimensions.
• Migration management is fragmented portfolio, often falling under responsibilities of
several Government departments.
• Migration may not feature prominently in donor priorities resulting in funding
difficulties.
• Migration is a complex cross‐cutting issue, both politically and conceptually challenging,
which makes
it
difficult
to
formulate
a coherent
and
common
position.
• Lack of cooperation and dialogue between countries of origin and destination on
migration and development issues.
• Migration is politically sensitive issue often leading to border management and control
rather development. Therefore, focus always goes to how border has been managed
and controlled. The potential of migration for development does not get adequate
political attention rather often it gets misinterpreted.
Recent literature on migration suggests that despite the potential advantage of migration, it
has rarely been acknowledged in development planning tools. Even if links are made between
migration and development, it is surprisingly confined to the conceptual level rather than the
practical level. Sometimes even if it focuses on them it limits on international remittances to
developing countries rather focusing on the inter‐linkages between migration and
development. These financial flows include: money sent by individual migrant workers and
other
members
of
diaspora
communities
to
families/friends
residing
in
countries
of
origin;
financial investments in housing or business; and economic savings in banks in the country of
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origin. Another form of remittances are charitable donations made by individual
migrants/migrant associations for certain aid projects in the country of origin. 4
1.2 Broad
Objective:
The study attempts to analyze the current reflection and gaps of migration issues in the SFYP
and assess gaps on migration issues in existing development policies and programmes.
Specific Objectives:
a) To identify how migration issues have been reflected into SFYP of Bangladesh.
b) To identify what are the gaps in the SFYP in regard to migration concerns.
c) To find the extent of migration issues are taken into account in the development
policies of Bangladesh.
d) To what extent migration issues are taken into account into development programmes
of Bangladesh.
1.3 Broad Research Question:
To what extent migrations concerns are been reflected in the SFYP, development policies
and programmes?
Specific Research Questions:
a) To identify how migration issues have been reflected into SFYP of Bangladesh?
b) To identify what are the gaps in the SFYP in regard to migration concerns?
c) To find the extent of migration issues are taken into account in the development
policies of Bangladesh
d)
To what extent migration issues are taken into account into development programmes
of Bangladesh
4 Higher Institute of Labour Studies, KU Leuven, Belgium) . The position Paper “Remittances and Development” ,
Session Five A. URL…….
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1.4 Methodology (data & methods, process and analysis)
The research is qualitative in nature based on secondary data and information. Through a
systematic search, data and information have been compiled and the situation analyzed, to
answer the
research
questions
that
have
been
set.
1.4.1 Data & Methods:
The study uses published information related to migration. Both printed and online resources
have been utilized. Moreover, it uses data generated by International Organization for
Migration (IOM), Global Migration Group and the Government of Bangladesh (Sixth Five Year
Plan and Perspective Plan 2011‐2021 in particular).
1.4.2 Process:
After identifying some common and essential methods of policy analysis, the study goes
through the SFYP step by step. After identifying how migration issues have been placed into the
Plan, gaps and challenges are identified.
1.4.3 Analysis
Regarding method of data collection and analysis, Discourse Analysis (policy narratives in
particular)
and
thematic
content
analysis
methods
and
approaches
has
been
applied.
In
this
study, the discourse analysis method has been used to identify how development discourse has
been used in variety of ways, like to mean talking rather than doing, diversionary and deceptive
language; a perspective rather than descriptive stance (Gasper and Apthorpe 1996). This study
analyzes how discourses around development policies and programmes contribute migration
concerns in the context of Bangladesh.
1.5. List
of
Policies,
Plans
and
Other
Documents
Reviewed
• Sixth Five Year Plan (SFYP) 2011‐2015
• National Skills Development Policy ‐2011
• Perspective Plan 2011‐2021 (Vision 2021)
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• Overseas Employment Policy 2006 and
• Overseas Employment Policy 2013 ( Final Draft)5 and
• Millennium Development Goals (MDGs)
1.6 Analytical Framework:
In general, development planning goes through some basic stages which includes situation
assessment and analysis, identification of strategic goals and priorities, action/programme
planning, funding and capacity development, implementation and monitoring and evaluation.
This cycle can be depicted by the following diagram:
Stages of Development Planning
The study applies an analytical framework developed by Global Migration Group (Pg 22). The
framework comprises of six essential elements which are prerequisite for mainstreaming
migration
in
development.
Therefore,
any
mainstreaming
endeavor
should
start
by
looking
at
the ground work in the following areas:
5 As of September 09, 2013. Accessed on September 15, 2013 through
http://probashi.gov.bd/index.php?option=com_content&view=article&id=93&Itemid=29
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I. Strong political support at high level: This strong political will is critically important to
move ‘Migration for Development’ agenda forward.
II. National ownership: The Government needs to be lead actor in the mainstreaming
process and government priorities must be prevailed over the priorities of other actors.
III. Early involvement of key stakeholder: Key stakeholders such migrant community
groups, diaspora groups, civil society, academics, employers’ associations and
development partners. The purpose is to make sure that all stakeholders are committed
partners in the mainstreaming process. Active engagement of stakeholders can offer
many things, like different perspectives, new information and data, political and moral
support and funding support. In ensuring successful mainstreaming, all these above
resources and actors need to be brought together.
IV. A shared understanding of objectives: Common understanding the objective is pivotal
to avoid divergent agendas being pursued. For establishing and maintaining an unified
agenda, a clear vision, transparency and regular dialogue among different stakeholders
are essential.
V. Broad‐based participation based on clear roles and responsibilities: For ensuring that
during
the
process
of
mainstreaming,
it
is
neither
monopolized
by
a
single
government
institution nor confined to few individuals, rather a broad spectrum of participation is
necessary. Therefore, to the process will be more successful if roles and responsibilities
of different actors are defined.
VI. Keep to timing: In ensuring national level ownership, sufficient time should be provided
for reflection and consensus‐building. It needs to be realistic regarding timing at the
start of the process about how much time will be required for specific tasks. While
timing
has
been
agreed
upon,
it
would
be
important
to
make
sure
schedule
is
maintained accordingly.
The whole analysis of this report relates to the above six points.
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SECTION TWO: MIGRATION and DEVELOPMENT ‐ Global to Local
Perspective
2.1 Migration
Policy
Context:
Global
Perspective
Recent literature on international migration suggests that emigration can influence economic
development of sending country in four interrelated ways. Firstly, international migration
allows for more efficient matching of international supplies and demand for labour. It helps to
improve efficiency internally. Secondly, emigrants tighten the conditions that characterize
sending country labour markets (even often at the regional level, not the national level) which
ultimately helps to strengthen bargaining position of the labour that remain. Thirdly, migrant
labour
provides
a
large
and
dependable
source
of
development
capital
in
the
form
of
remittances. Finally, returning migrants bring capital, skills and access to markets that benefit
the sending economy. However, the literatures also stress on lack of systematic analysis of the
effect of migration on sovereignty may be one of the reasons that open borders are associated
with chaos, political labeling and the demise of the developed world’s welfare states. It is also
mentioned that the little work which has been done in recent years is not directly related to
evaluating the political consequences of international migration. Rather, the work tends to
focus
on
how
host
countries
control
migration
flows
and
evaluate
their
effectiveness.
In
general, there are studies that consider migrants as surplus pool of labour which is politically
exploitative in nature (Moses, 2006:78‐80).
In line with the above four points, historic evidence seems to support that migration is an
important explanatory factors of economic growth in both the new and old worlds,
international migration can generate prosperity in both sending and receiving countries. The
skills, capital and technology that accompany these labour flows also have a significant impact
on economic growth rates in both type of the country (ibid).
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In a study titled ‘Migration between Europe and South Asia: Impacts on development’ by
Institute of Public Policy Research UK found that “Migration from South Asia to Europe has been
and continues to be an important phenomenon. There are established South Asian communities
in most European countries and these are being added to by increasingly diverse flows of
people: asylum seekers, family members, highly ‐skilled professionals and even a new wave of
temporary, low ‐skilled workers. It must be noted that, though important, South Asia to Europe
flows are less significant than other South Asian migration flows. The scale of internal migration
(especially within India), regional migration (e.g. from Bangladesh and Nepal into India), labour
migration to the Persian Gulf, and international migration to the North America are all likely to
be greater than contemporary flows to Europe. That said, given important historical links, the
likelihood of greater demand for migrants into Europe in the future, deep diasporic linkages
with South Asian countries, and the interest shown by European states in this area, migration
between South Asia and Europe has the potential to have important impacts on development in
sending countries.”6
In another study by Bryan & Wets stated that “[o]fficially recorded remittances have become
the second highest source of external funding for developing countries–ahead of Official
Development Assistance (ODA), but following Foreign Direct Investments (Ratha 2005). Not
surprisingly,
policy
makers
and
academicians
have
been
looking
at
remittances
as
a
development tool for developing countries. An important difference between remittances and
ODA is the private nature of the former financial flow. The majority of remittances are sent by
individuals to their families in the country of origin. Furthermore, as the poorest members of
society often lack the financial means to migrate abroad, they are less likely to have family
members abroad who would send remittances. International migration is a costly venture (see,
for instance, De Bruyn & Kuddus 2005). Nevertheless, remittances can have different levels of
6 retrieved on June 28, 2013 through
http://www.migrationdevelopment.org/fileadmin/data/conference/background_papers/en_Session_3_B_South_
Asia‐‐Europe_final_01.pdf
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both positive and negative impact on the development of the country of origin. Table 1 lists a
number of the most cited conclusions in research on this topic.
In the same study they mentioned some possible positive and negative impacts of remittances
on development
of
any
country.
It
briefly
illustrates
that
remittance
has
impacts
(both
positive
and negative) at micro‐economic level, community & regional level and household level.
Table 01: Impacts of Remittances
Area of
Impact
Positive impacts of remittances Negative impact of remittances
M a
c r o
‐
e c o n
o m i c
l e v e l
• Strengthening balance of payment by
provision of foreign exchange
•
Remittances
are
stable
and
counter‐
cyclical
• Deterioration of balance of trade
by stimulation of import and
appreciation of local currency
• Deterioration of the ‘social
balance’
H o u s e h o l d l e v e l
• Allowing families to meet basic needs
• Opening up of new opportunities for
investing in children’s education, health
care etc.
• Loosening of constraints in family budget
to invest in business or savings
• Emergency resources
•
Social security
resources
base
• Dependency on remittances and
neglect of local productive
activities by families
• Hardly used for productive
investment
C o m m u n i t
y a n d
r e g i o n a l
l e v e l
• Boost of local economy
• Financing local development projects
• Increase inequality between
families who receive remittances
and those who do not
•
Inflation
2.2 Migration Policy Context: Bangladesh Perspective
In a study on internal migration and development, it has been cited that the landscape of
Bangladesh has changed significantly. Migration has been accepted as a major component of
people’s livelihood. However, the linkages between internal migration and development are
not upfront. There is lack of data on the migration and poverty interface; the study argues that
government policies can influence impact of migration on development and poverty reduction
(Afsar, 2005). The study concludes that in Bangladesh like many other developing countries, the
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households of internal migrants in rural areas use remittances mainly for consumption. The
consumption expenditure alone constitutes between 80% and 90% of the remittances use. In a
country context like Bangladesh where half of rural households live below the poverty line,
consumption can be viewed as consistant with the basic needs of development since without
this remittance, the situation of migrant families would be worse. It is commonly argued that
increased consumption expenditure by migrant household can accelerate investment, which
may create an income multiplier in migrant‐source economies (Taylor, 1990 cited in Afsar,
2005).
In a study by IOM (2010), it emphasizes that Bangladesh experiences many types of human
mobility, both internal and international. Within the international migration, there are three
distinct trends:
emigration
for
settlement
to
Europe,
Australia
and
North
America;
contract
labour migration to Middle‐Eastern and South Asian countries; and the movement of people to
the border areas such as India.
The Global Migration Origin Database estimates that 6,832,522 Bangladeshis live abroad,
representing less than 5% of the total population and less than 10% of the total labour force.
Similarly, the Bangladesh Bureau of Manpower, Employment and Training (BMET) estimates
that 5.8 million Bangladeshi workers are abroad, 31% of which are in Saudi Arabia and 24% in
the UAE (IOM; 2010:2). The study also outlines the gendered consequences of recipient’s
annual household income. It identifies that gender plays an important role in household
income, remittances and dependency level. It further informs female migrants earn less and
therefore send less money back to home than their male counterparts. It is also noted that
families with female recipients have higher local household incomes and they are less
dependent on remittances. However, there is no policy initiative and analysis to unravel the
impact this differential has on development (ibid ).
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SECTION THREE: FINDINGS
This part of the report has five sub‐sections. The first section deals with how migration issues
have been reflected in the National Skills Development Policy of 2011. The second section
focused on how migration issues are incorporated in the SFYP and Perspective Plan 2011‐2021
(Vision 2021). In the third section, the growth targets and performance in different plans of
Bangladesh are analyzed. The fourth section explains how government resources have been
allocated, overseas employment levels and remittances received from 1999 to 2009 are briefly
explained. The fifth and final section analyzes, in regard to ‘ambition versus feasibility,’ the
migrations issues that are reflected in plans and policies of Bangladesh.
3.1 National Skills Development Policy ‐2011:
Different reports have made clear recommendations that the skills of migrant workers should
be improved before leaving for overseas employment. A majority of Bangladeshi migrant
workers do manual work with low pay and low status. Thus, it is important to review the
National Skills Development Policy 2011 to point out how migration and the skills development
concerns of migrating laborers have been addressed.
In the National Skills Development Policy 2011, there is a specific focus on skills development
for overseas employment.
I. The Policy acknowledges that increasing remittances from expatriate workers is
dependent on improved skills development in Bangladesh. In order to improve skills
development towards overseas employment, the new skills development system will
include the following:
•
Assess and
respond
to
the
demand
for
different
categories
of
skilled
workers
in
major overseas markets;
• Develop a coordinated and flexible recruitment and training strategy to service
that demand;
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• Develop a national qualification system against which skills certification of an
international standard can be made and communicated to overseas employees
and international recruitment agencies;
• Improve the capacity of training providers to deliver skills to the standard
required by overseas employers;
• Improve the regulations and quality assurance of training providers delivering
pre‐departure training;
• Improve the employment outcomes of those who undertake skills training for
overseas employment; and
• Engage with returning migrants to assess and certify higher skills gained overseas.
II.
Initiatives to
strengthen
skills
development
for
migrant
workers
will
be
improved
along
with other governmental efforts to reform the education and training system in
Bangladesh.
III. All training and trade testing centers targeting overseas workers will be required to
register with BTEB(Bangladesh Technical Education Board) so that skills assessment and
certification in these centers follows NTVQF (National Technical and Vocational
Qualification Framework) based on national competency standards, or where possible,
competency standards
recognized
in
the
countries
of
employment.
IV. Nationally recognized qualifications will be available to expatriate workers. Over time,
all migrating workers will be required to have qualifications from the NTVQF, obtained
either through occupation‐specific courses or through a Recognition of Prior Learning
(RPL) process at BTEB registered testing centers. To increase the number of qualified
expatriate workers, RPL will be offered in a systematic way.
V. Overseas employers and governments will be made aware of the reforms to skills
training
in
Bangladesh
so
that
overseas
employers
can
more
easily
assess
the
differences between skilled and less skilled workers and so that expatriate workers gain
the recognition and remuneration they deserve in overseas markets.
VI. There is a recognized need to provide comprehensive pre‐departure orientation training
for migrant workers and to establish special government migration support services for
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safe migration and improved livelihoods. This will ensure that in addition to trade skills,
expatriate workers are adequately prepared for overseas by having a minimum level of
host‐country language skills, so that they are better protected by being able to
understand and participate in host‐country opportunities.
VII. Career and vocational guidance that provide details on key overseas labour markets and
occupations in demand will be made available to participants.
VIII. A system of ‘ladderisation’ should be established similar to that in place in other Asia
countries. Under the scheme, returning workers will be offered an opportunity for skills
testing, skills upgrading and skills certification at a higher level before returning abroad.
The work, learn, train and certify process can be repeated in several cycles until after
some years the skilled workers will be able to move into supervisory positions. For this
to occur, modularized competency based training should be delivered that leads to
certification under the NTVQF.
IX. To increase resources available for skills training of expatriate workers, the Skills
Development Fund for Expatriate Workers announced in the Budget of the respective
year will be made operational.
X. Under guidance from the NSDC (National Skills Development Council), BMET will take
responsibility
for
ensuring
a
more
coordinated
approach
to
skills
development
for
expatriate workers. This more coordinated approach will include an assessment of how
existing training infrastructure can best be utilized to service the overseas demand for
skilled workers.
XI. The NSDC through BMET will also develop a strategy to increase the participation of
women in skills development for overseas employment.
XII. Aspirant overseas workers to be trained on skills under public‐private partnership
programmes.
3.2 SFYP & Vision 2021:
While having made satisfactory progress in poverty reduction activities (particularly toward
reaching Millennium Development Goals), the Government of Bangladesh recognizes that
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Bangladesh remains a low income developing country. Around 47 million people are living
below the poverty line. Most of the labour force of the country is engaged in informal low
productivity and low income jobs. The poor are severely disadvantaged, and they do not have
access to resources and basic services such as education, healthcare, or water and sanitation. In
this context, Government of Bangladesh has recently devised the Perspective Plan covering
2010 to 2021 aimed at implementing its Vision 2021 goals. As described in the ‘Outline
Perspective Plan of Bangladesh 2010 to 2021 (making Vision a Reality), the keys issues of the
Vision 2021 associated with this Plan are:
“[t]he development perspective envisages to achieving, in the coming days, a prosperous
progressive nation in which food and energy security shall prevail with drastic reduction of
poverty and a low level unemployment. The perspective also includes great strides in human
development including health and nutrition, effective population control, progress in all
levels of education, primary, secondary and tertiary in addition to commendable
improvement in science and technology along with great achievement in ICT. Infrastructure
development will improve integrated multi ‐modal transport encompassing railways, roads
and inland water transport having connectivity with our neighbors. In other words, the
development perspective implies the simultaneous fulfillment of economic and social rights
of the people alongside civil and political rights. For this to happen strong links between
economic growth
in
the
one
hand,
and
expansion
of
employment
opportunities,
reduction
of
poverty, expansion of democracy and empowerment, consolidation of cultural identity and
protection of environment with its freshness for the next generation on the other will be
established.” 7
The Perspective Plan has 12 specific development goals which broadly define all important
concerns related to becoming a middle income country in 2021. Among these 12 goals, four are
directly associated with migration concerns. These are as follows:
• Promoting good governance and curbing corruption
• Promoting sustainable human development
7 Ref. SFYP 2011‐2015, Pp19
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• Addressing globalization and regional cooperation challenges
• Building digital Bangladesh
If the above four development goals are made functional, then to a great extent these will
facilitate a safe migration and contribute to the economic and overall development of the
country.
In addition, the Perspective Plan also identifies strategic directions and provides a broad
outlines for the course of action to make the Vision 2021 a reality. This outline leaves
considerable space for the SFYP (2011‐2015) and Seventh Five Year Plan (2016‐2020) to work
out functional details of how the country should move forward. A number of core targets have
been
identified
to
monitor
progress
of
the
SFYP.
These
core
targets
are
in
line
with
the
vision
and objective of the Perspective Plan. The core targets set for monitoring fall under seven
broad categories:
a) Income and poverty
b) Human resource development
c) Water and sanitation
d) Energy and infrastructure
e)
Gender equality
and
empowerment
f) Environment sustainability
g) Information and communication technology (ICT)
Under the “Income and Poverty” category, there are five specific targets which are as follows:
a. Attaining average real GDP growth rate of 7.3% per year over the planned period
b.
Reduction
in
the
head‐
count
poverty
ration
by
about
10
percentage
points
c. Creating good jobs for the large pool of under‐employed and new labour force
entrants by increasing the share of employment in the industrial sector from 17
percent to 25 percent
d. Increasing the contribution of factor productivity in economic growth to 10 percent
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e. Overseas employment of skilled labour to be increased from 35% to 50%.
3.3 Scope of Budgeting for Skills Development for Overseas Employment: Tale of
Targets and Performances in different Plans of Bangladesh
Implementation of the National Skills Development Policy 2011 and other migration initiatives
to increase overseas employment of skilled labour requires significant budget allocation.
Adequate budget allocation will only be possible if targeted growth is achieved accordingly.
Thus, it is important to revisit the growth targets and analyze with previous performance to
unveil how likely to achieve those targets and resolve or develop migrations issues and
concerns.
Thus, in this part of the report, different plans and associated planned and actual growth are
analyzed.
Table 01: Growth Performance of Bangladesh in the Five Years Plans8
Annual Average Growth SL Plan Period
Target
(%)
Actual
(%)
Gap (%)
1. First Five Year Plan (FY73‐ 78) 5.5 4.0 1.5
2. Two Year Plan (FY78‐ FY80) 5.6 3.5 2.1
3. Second Five Year Plan (FY80‐ FY85) 5.4 3.8 1.6
4. Third Five Year Plan (FY85‐ FY90) 5.4 3.8 1.6
5. Fourth Five Year Plan (FY90‐ FY95) 5.0 4.2 0.8
6. Fifth Five Year Plan (FY97‐2002) 7.0 5.1 1.9
Average 5.65 4.1 1.58
The above table (01) illustrates that overall (average of 6 plans; till FFYP) growth target was
5.65% where actual achievement is 4.1%, this indicates an average gap 1.58%.
8 The table has been reproduced from the original table of BBS (cited in SFYP,Pp12).
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Even there is no specific trend in gap of annual average growth; however in actual growth, it
is seen that after 1978 (after the phase of First Five Year Plan), the annual growth has been
steadily increasing, as presented below in Chart 1.
In the above, it is shown that only FY1997‐2002 has achieved more than 5% GDP growth.
Moreover, the chart also illustrates that during 1980‐90, the annual growth was stagnant.
Table 02: SFYP and Targets
Targets 2005‐2010 SFYP 2015 Vision 2021
1)
Real
Income
Growth (%)
6.1
8.0
10
2) Head Count Poverty
(%)
31.5 22 14
3) Industrial Sector
Employment (%)
17 25 30
4) Contribution of
Productivity to
Economic Growth (%)
8 10 20
P r o d u c t i o n ,
I n c o m e G e n e r a t i o
n a n d
P o v e r t y
5) Overseas employment
of skilled labour
35 50 20
1) Ratio of girls to boys in
tertiary education (%)
32 60 ‐
G e n d e r
E q u a l i t y
a n d
W o m e n
E m
o w e r
2) Ratio of literate
females to males
85 100 ‐
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3) Female overseas
employment rate
5% 10% 20%
In the previous paragraph, it was shown that the average actual growth is 4.1%, but in the
SFYP, it is planned 8% which is bit ambitious. Similarly, Vision 2021 pursues to help
Bangladesh attain middle income country by 2021. It sets targets of reaching 8% growth by
FY15 (at the end of SFYP) and 10% by FY21. Its associated structural change target is to
increase share from 30% in FY10 to 40% in FY21, and employment share 14% to 25% over
the period. These are briefly as;
•
Raising the share of manufacturing sector in GDP to over 20% by 2015
•
Increasing the
employment
share
of
manufacturing
sector
to
15%
by
FY15
However, this would be challenging to achieve. The ability to adequately allocated
resources based on this high ambitious growth is unclear.
The employment challenge in Bangladesh is to create high productivity, high earning jobs.
The employment level planned is to be achieved by moving from low productivity
agriculture and informal work towards higher productivity jobs in manufacturing and formal
services. Certainly, this requires a long‐ term process and the SFYP will put efforts to bring
change in the structure of growth and employment.
The SFYP (Pp. 46) also acknowledges that the growth and employment experience of
Bangladesh and related international experiences have a number of important lessons that
would guide the formulation of the strategies to realize the targets for vision 2021. The
important lessons are as follows:
• The rising growth rate in Bangladesh has been underpinned by growing rates of national
savings and investment. For increasing the pace of the growth requires additional
investment and savings.
• Higher growth in Bangladesh has benefitted from a rising labour force both due to the
demographic transition of a higher share of working population and an increasing labour
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force participation rate of the female labour. Higher growth would be achievable by
encouraging more female participation in the labour force and enabling them to
undertake gainful employment and stay in the labour market.
• While the higher growth rate will require higher rates of investment, growth also benefit
from improvement in total factor productivity. It means productivity of both labor and
capital which can be raised through a mix of policy and institutional reforms.
• The sectoral composition of growth has to change in favour of a much higher share of
modern manufacturing and organized services to create a more rapid expansion of good
jobs.
• The employment responsiveness of growth in manufacturing needs to increase to
absorb
more
labour.
• The average productivity of all sectors, but specially agriculture, has to grow to provide
better returns to labour.
• Economic growth, employment and investment respond to policy and institutional
reforms. Many good policies have helped increase private saving and investment rates
and supported growth. However, there are many other reforms that remain to be
implemented in the areas of infrastructure, business deregulation, trade reforms,
financial
sector
reforms,
tax
policies,
information
technology,
education
and
training
which all have bearing for growth and employment by improving incentives, reducing
cost and raising productivity.
3.4 Resources Allocation, Overseas Employment and Remittances:
This part of the report deals with how resources have been allocated in the SFYP, trend of
employment abroad and remittances received in the last ten years.
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Trend in Number of Employment Abroad:
9
The above chart (Chart 2) indicates that number of overseas workers gradually increased since
2000‐01(195) till 2005‐06. After 2005 until 2008, it steadily increased and in 2008 it reached to
a peak of 875,000. Again after 2008, it had gradual fall to till 2011. However, in 2012, it shows a
recovery as it has reached to 607,000.
Remittances in Different Fiscal Year:
The following Chart 3 presents remittances received by Bangladesh during different fiscal years.
In table 2, we have seen that there were fluctuations in trend of number of employments
abroad. After 2008‐09, it had a drastically fall. In a normal situation, this fall suggests to assume
a fall in remittances as well. In contrast, during this period remittances had a steady progress as
it is seen that after 2001, it has been increasing gradually. And in 2012, total remittance
received by Bangladesh is 14,163 Million10
. (Please see chart 3 below for details).
9 http://www.bmet.org.bd/BMET/resources/statistics/18.jpg retrieved on August 18, 2013
10 http://www.bmet.org.bd/BMET/resources/statistics/18.jpg, retrieved on August 19, 2013
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11
Thus, in the context of Bangladesh, it cannot be reached to a liner conclusion that number of
overseas employment and remittances received are positively linked to each other. This implies
that having fewer number of jobs abroad could secure better remittances. Actually, it depends
on many other external policy environments, such as the skill sector of the overseas workers.
Allocation of Development resources for Labour and Manpower in SFYP
It is important for Bangladesh that even having a fall in overseas employment; the amount of
remittances received by Bangladesh has continued to increase. This increase indicates that
more allocations for labour and manpower will generate proportionately high amount of
remittances. Notably, this sustainable growth in remittance gives strength to think positively
about the high growth targets in different government plans. Moreover, in the following (Chart
4), it is seen that Government of Bangladesh has put more budgetary effort in the SFYP on
Ministry of Expatriate Welfare and Overseas Employment (MoEWOE) and the Ministry of
Labour and Employment. After 2013, allocations for both ministries will move forward equally.
11 http://www.bmet.org.bd/BMET/resources/statistics/18.jpg , retrieved on August 19, 2013
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12
3.5 Plan, Policies and Migration: Ambition versus Feasibility
It is good to find many positive elements in the National Skills Development Policy 2011. It
focuses on developing skills of the migrants. However, the approaches have been taken for this
may not be achievable since the private sector has not been involved in the process although
they have tremendous potential/capacity to impact skills development. Moreover, only
regulatory
approach
often
does
not
work
when
multi‐
stakeholders
are
involved
in
a
process.
The policies13
have strong focus on capacity building of the migrants. Having enhanced skills
would facilitate migrants to get good and high paid jobs. High paid, skilled jobs will bring more
remittances to country. Thus, it is really important initiative. However, the mentioned policies
have not considered that migrant’s family and society as whole have strong role in ensuring
safe migration. The roles and responsibilities often cannot be performed by the family and
society due to lack of information and understating. This lack of information and understanding
includes what
to
do
before
sending
family
member
to
abroad
and
whom
to
communicate
to
validate visa or work permit or even if the migrant falls in trap or problem.
12 Ref: Data have been taken from SFYP, Part 2, Pp‐346
13 Under analysis of this study
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The growth capacity of Bangladesh has been under‐achieved due to political turmoil and
inconsistency of policy priority and direction. Rather, problems have been getting multi‐faced
forms, thus the high growth oriented all plans might not be achievable. However, multiplier
approach for remittance owner and migrants’ family member could be initiated for better
utilizing idle money. This can accelerate economic growth.
3.6. Moving Ahead: Overseas Employment Policy 201314
Recently, Government of Bangladesh has initiated to revise ‘The Overseas Employment Policy
2006’. The resulting ‘Overseas Employment Act and Policy 2013’ have been drafted and ready
to place to the cabinet for approval. The revised act and policy extensively acknowledge the
contribution of migrant workers to the national economy.
Brief comparison on Overseas Employment Policy 2006 & 2013
Area Overseas Employment Policy 2006 Overseas Employment Policy 2013
C o n t e x t
There was no policy for making and
managing migrations sector as dynamic and
vibrant, better management of remittances
and safety and welfare of the migrant
workers. Thus, Overseas Employment Policy
2006 was enacted.
In the national and international arena,
there is significant progress which
demands a revisit the policy that was
enacted in 2006.
O b j e c t i v e
Broadly to expanding overseas labour
market, having better discipline in the sector
and welfare of migrants workers.
It has six inter‐related objectives. First of
such is creating overseas employment
opportunity for men and women so that
they can work independently with safety
and dignity. The last objective is
introducing an efficient and integrated
management structure to better manage
labour migration.
14 As of September 09, 2013, the Policy is in Final Draft form and yet to be approved by the Cabinet, thus in the
background paper the analysis has been kept to limited key aspects.
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F o c u s
The focus of the policy was mentioned under
the section of implementation activities
(article 5). These are as follows;
• Ensuring rights of the emigrants
• Maintaining new markets and exploring
new markets
• Human resources development
• Recruitment processing
• Welfare of the emigrants
• Channeling remittance through legal
process and investment of the
remittance
• Economic and social integration of
returnees
The Policy has seven sections where six
of them have dealt with issues, concerns
and policy direction in the following
areas:
•
Promoting
and
ensuring
safe migration
• Protection of migrant workers and
their family members
• Benefits and welfare of the migrant
workers
• Migration of women workers
• Integration of migration to national
development
• Labour migration governance P r i v a t e
s e c t o r
( r e c r u i t i n g
Out of the 16 specific objectives, two (4.10 &
4.16) directly encouraged engagement (for
recruitment, exploring markets, sending
more skilled labour and overall management)
of the private sector.
Scope of private sector engagement
limits to be part of the consultation
process for developing policy‐directives.
In each of the above section, the policy identifies issues, challenges and also relevant policy
direction to manage those issues and challenges. For example, under the promoting and
ensuring safe migration, the policy (Pp17) emphasizes on quality and demand driven technical
education and skills training for migrant workers through technical training centre, vocational
training centre and other educations institutions. It has also been pointed out that skill
diversification needs to be in strategic priority as in the future demand in big cities of the
developed world will be around health, education housing, telecommunication and other
service sector.
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SECTION FOUR: ANALYSIS , DISCUSSION AND CONCLUSION
This Section is built on analysis of the findings and then linked up with the relevant literatures.
The discussion part is followed by some recommendations.
4.1 Analysis:
Government of Bangladesh has been positive in regard to dealing with migration issues and
concerns. Since after inception in 2001, Ministry of Expatriates’ Welfare and Overseas
Employment (MOEWOE) has been working for ensuring welfare of the expatriate workers and
enhancement of the overseas employment. Recently, Government has initiated to review the
overseas employment policy which was active since 2006. Besides reviewing the policy,
Government has also been working to send workers directly through Government to
Government agreements. In addition, the strategic priority to send semi‐skills and skills workers
is proving valuable since early findings illustrated that while the number of expatriate workers
decreased (Chart 1; p24), the amount of remittance was increased. These issues evidently
proved that migration has been getting strong support at the high level. Moreover, data and
information also indicate that key stakeholders are involved in different policy formulations and
dialogues that affect and can shape migrants’ benefits and welfare. However, sending workers
to overseas market through private sector has been ignored.
The analysis is drawn upon findings presented in Section Three.
Migration Concerns in National Skills Development Policy 2011: Dominated by regulatory
approaches
The
policy
includes
important
components
such
as
‘needs
assessment’
and
pre‐departure
orientation of migrating workers. It also found that there will be budget available for such skills
training. Moreover, the Policy indicates that it was widely consulted. Consequently, it
potentially ensures ownership of the key stakeholders in the sector. However, the policy was
found to have some limitations which could essentially confine the skills development
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ambitions of the nation and migrating workers in particular. Firstly, in regard to skills
development for overseas employment, the whole focus of this initiative seems to be
dominated by a regulatory approach rather than a participatory ownership one. Secondly,
awareness among family left at home country and migrating worker him/herself is missing. This
is very crucial for negotiating with employers and maintaining proper communication with back
home. Thirdly, the training to develop skills of overseas workers under public‐private
partnership approach puts things uncertain since this approach still rhetorically sounds good
but yet to prove as effective.
Migration in SFYP and Perspective Plan:
The Perspective Plan rightly includes economic and social rights of the people alongside with
civil and political rights. In addition, promoting good governance and curbing corruption has
been added as a development goal. This addition, certainly will contribute to better benefits of
the migrating workers since due to rampant corruption in most spheres of the society, poor
people who wish to migrate for a job need to pay lot of additional money than the amount
stipulated by the government which increases their cost of migration. One of the seven broad
categories for monitoring progress of SFYP is human resource development. This is impressive
inclusion which seemingly will allow analysis of human development perspectives. However,
both of the Plans (SFYP and Perspective Plans) build on some narrations which are discursively
produced and have less implication in practice. For an example, firstly, promoting good
governance and curbing corruption is mentioned by almost all social and political actors but
limited initiative they take to do so. Secondly, while average achieved GDP growth of
Bangladesh is 4.1%, having a target of 7.3% per year essentially requires a comprehensive
development approach where state machineries along with political actors are driven by a
strong vision‐ which is almost impossible in a bi‐polar country like Bangladesh. Thirdly,
increasing overseas employment of skilled labour to 50% requires many accredited technical
and vocational institute in the country in the one hand. On the other, it also requires exploring
and negotiation skills of the Government for identifying opportunities in new markets and get
in into those markets.
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Skills development has been looked at different area for intervention. Thus, different initiatives
have been made to enhance the skills of the migrants’ people. In contrast, it needs to be looked
an area of incorporation in different system (like training, education, information
dissemination).
High Growth Targets:
Both the Plans (SFYP and Prospective Plan) show some ambitious growth rate. In comparing
with growth achievements of last 42 years, the facts and figure that came up, is not promising
anyway. Similarly the Plans do not consider that additional growth requires additional savings
and investment. For having high savings, the high target could be achieved through a stabilized
economic situation as well as by ensuring asset building possibilities for recipients and
migrants. IOM (2010) mentioned a number of initiatives of Government of Bangladesh like
ranges of financial incentives on migrants to invest in the home country, specifically the U.S.
Premium Dollar Bond and Non‐Resident Foreign Currency Deposit. However, results showed
that migrant account ownership is significantly low and asset ownership is significantly limited.
There is no evidence that can prove that these instruments are been systematically utilized by
the migrants. This limitation indicates that technical assistance is important to identify the
financial products people need and the institutions and location from which people can get
access to. In addition, there should be a mechanism to reach out the population who need
these products.
4.2 Discussions:
Based on the above findings, the study draws some key policy issues. Firstly, existing literatures
and many
policy
documents
often
overlook
the
important
role
that
migration
has
been
played
recently in reducing rural poverty. In contrast to the conventional knowledge which often
consider permanent migration as a hindrance to rural development. Because of, they believe
that it transfers rural resources to urban areas. Actually, migration expands rural lands and rural
markets by making more rural land available for tenancy. Migration and the shift of the rural
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labour force to non‐farm occupations have created labour shortage which ultimately facilitated
mechanization of agriculture. Secondly, remittances from internal migrations are generating
both direct and indirect benefits with short‐term, long‐term and multiplier effects on poverty
alleviation, regional development and the overall development of the country. Thirdly,
Government’s strategy for poverty alleviation has completely ignored the spatial and regional
dimensions for development. For an example, the coastal region made impressive progress in
poverty alleviation, and migration has been a great contributor, behind it. In contrast, flood‐
prone regions and those with favorable eco‐systems must be given priority attention in order to
improve labour productivity and provide greater scope for occupational mobility (Siddiqui;
2005:63).
However, the
new
OEP
2013
(final
draft)
has
captured
most
of
the
concerns
mentioned
above.
The Policy has clearly stated that at present the contribution of remittance in the national GDP
is 11%. Similarly, in the first three years of SFYP, the national annual employment target has
been achieved with 28% contribution of the overseas employment. In addition to that, the
Policy has also mentioned how remittance through labour migration contributes to the
education and health facilities of the family members. Furthermore, the Policy noted that
remittance through overseas employment has been greatly contributing to the development of
agriculture, housing
and
joint
‐ownership
based
business
sector.15
4.3 Recommendations:
Based on the above data and brief analysis, the paper likes to put forward the following
recommendations
Inclusion of
issues,
challenges
and
policy
directions
(of
OEP2013)
in
Seventh
Five
Year
Plan:
In
the new OEP 2013 (draft) has been rightly mentioned issues, challenges and some policy
15 Overseas Employment Policy 2013, Pp.48.
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directions in the areas of promoting and ensuring safe migration, protection of migrant workers
and their family members, benefits and welfare of the migrant workers, migration of women
workers, integration of migration to national development and Labour migration governance.
These issues should be adequately reflected and resourced in the upcoming Seventh Five Year
Plan of Bangladesh.
Facilitating and resourcing for some long‐benefiting area and actions: Similarly, it is also
important to have integration (into Seventh Five Year Plan) of different priorities mentioned in
the OEP 2013. Few of such priorities are;
• Developing market research unit on migration
•
Developing and functioning migration information system
• Facilitating labour Migration Forum
• Labour diplomacy for safe migration and creating new market
The first and second will produce better data, information on demand of expatriate workers
trend of the markets with direction how to respond to those demand. The third and fourth will
enable safe migration and create new markets. Therefore, these issues need to be included in
the national level policy document.
Comprehensive skills training: A comprehensive approach is missing in the NSDP. For meeting
the skills gap and entering into new markets, providing training ad‐hoc basis may work for time
being, but must not be long‐benefiting. Thus, well connected comprehensive approach for skills
development would be essential. This could be started by incorporating more contents on
migration concerns at different level of schooling and formal training. Moreover, more
technical and vocational education needs to be promoted for those want to migrate abroad.
These training
should
have
national
and
international
level
accreditation.
Awareness building of the society: Awareness building is a very important aspect of safe
migration, in fact this has been acknowledged and well captured by the new Policy (OEP
2013:23‐31). This needs to be ensured and implemented. In the rural Bangladesh, for migration
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people channel or communicate through local broker who often cheat and do not help to get
the right information. Thus, migrants’ lives are jeopardized due to lack of information and
awareness about what to do and whom to contact. Thus, sessions should be organized regularly
for prospective migrants. It is also important to make sure everybody gets the right message
from this kind of orientation. Afterwards, migrant’s family need to be sensitized and build their
awareness as well. Since in certain moment family has significant role to ensure safe migration
and boost up economic development by remittances received. Hence, the policy should guide
how to build awareness on migration in the community.
Negotiating with host countries: Having ensured skills of the migrants and sensitization to
family members of the migrants, it may not translate into a safe and secure life abroad. Thus,
negotiation
with
host
country
needs to
be
regularly
done
and
continuous
efforts
have
to
be
made to improve work condition, better pay and security abroad. This can only be achieved
through making aware of the migrants condition and improving relations and negotiation with
the host country. Having this done, appropriate negotiation approaches need to be included
into different Plans, Policies and strategies of Bangladesh.
Smooth and easy remittance flow: In line with the above skills and awareness concerns, it is
also important for sending country to facilitate migrants so that they send their earning easily.
Failure of such may result illegal channeling of money which goes to black money and could not
be counted in the national accounting system. Hence, it is important that the system and
process encourage people to send their earning through proper channel, and charges must be
less. Thus, existing relevant Policy should include this concern, alternatively separate Policy
could be enacted to promote proper channeling of remittance.
Asset building and investment environment: Similarly, it is also important to create favorable
environment by
the
sending
country
so
that
migrants
get
encouraged
to
invest
in
their
home
country. If remittances are invested by the migrants, then more job opportunity will be created.
More jobs creation will essentially contribute to the poverty alleviation and development of the
country. Thus, different Plans and Policies (for example investment in Small and Medium
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Enterprise) of the Government should consider how to attract remittances for investment at
the local level.
4.4 Conclusion
Migrants play a significant role in earning remittan