OBJECTIVES: To examine the impact of migration on remittances, remittances on per capita income, remittances on the wellbeing of household, utilization of remittance by migrant households, To understand the role of remittance in economic development.

METHODOLOGY: Exploratory research. SOURCES OF DATA: Primary: Survey, informal interviews. Secondary: Website of BMET, Bangladesh Bank, Statistics Dept. etc.

LIMITATIONS: Confidential data, Absence of data on the use of remittances, Lack of detailed data on the regional distribution of migrants, Data is available on different aspects of short term migrants, but there is no data on long term. Lack of practical experience on such a vast topic.

Extent: From 1976 to 2009 the total number of short-term migrants is 6.624 million. It indicates a yearly average flow (1996–2009) of 3.8 lac. Main Flow: KSA, UAE, Malaysia, UK, USA, Singapore & Middle East. Type of Employment: Professional, skilled, semi-skilled, and unskilled. Gender Distribution: Mainly male, Females are negligible in number (>1%).

Age & Education: Mostly 20-40 years old & education is class 1 to SSC.

Country Wise Bangladeshi Migrants (Up to Sep'09) Overseas Employment and Remittances

Manpower export & flow of remittance

0

2000

4000

6000

8000

10000

12000

No. of expatriates

Remittance Million US$

0100002000030000400005000060000

5.9 6 6.4 7.8 8.8 10 11

46.8 44.4 44.5 45.6 49.1 56.1 62.3

As Percent of GDP As percent of Export

Expatriates Classified by Skill Trend of Overseas Employment

Remittances and Broad Macroeconomic Indicators

Remittance as % of GDP & export Foreign Currency Reserves of BD in Million $

Professional

3% Skilled

31%

Semi-skilled

16%

Less-skilled

50%

913 520 880

1608 2121

2765 3070

2039 1719 1739

1523 1602 1307 1583

2470 2705 2930

3484

5077

6149

7471

0

1000

2000

3000

4000

5000

6000

7000

8000

Development through use of Remittances: Contribution of Remittance to the National Economy Business Investment Shopping Malls and Hotels Housing and Construction Labor Market & Employment Transportation and Communication Health, Education & Religious Institutions

Nature of Housing before Migration and at Present

20.45

3.22 2.75

11.24

0.96

15.02

2.24 1.99

10.55

3.47 4.76 3.07

9.07

0.94 0.92 0.09

7.19

1.04

21.5

4.7 5.6 9.2

2.3 5.2

1.2 0.9

6.5 3.5

5.9 7

11.7

2.1 1.3 1.3

6.2 2.9

0

5

10

15

20

25Chittagong, 9/1/2003* Sylhet, 6/1/2010

6% 4% 2%

61%

27%

9% 8% 11%

54%

18%

0%10%20%30%40%50%60%70%

Before At Present

The followings are some of the major findings from the study Remittance, as a stable source of huge money transfers, acts as a lubricant for

continuous stimulator to stabilize the economy, stimulates other domestic industries, creates employment.

Remittances as an important component of income to maintain subsistence to some households, have a positive impact on per capita income and help to reduce poverty as well as increase savings rates.

The return migrants are resistant to accept the low paid. The remittance earning families send their children to the most costly institutions.

Though there is an increasing high demand of skilled labor in the international market, but Bangladesh lacks skilled and professional personnel.

FDI, Foreign exchange reserve and the amount of remittances in terms of GDP and export earnings are increasing significantly over the years, proportion of foreign aid is declining.

Development in communications, transportation facilities and lower airfares made foreign migration easier and less costly for more frequent trips home. Satellite TV, mobile phone and internet keep migrants in close touch with the families.

The highest portion (48.10%) of total labor force is still being engaged in agriculture. Only 7% (migrants) of total national workforce contributed 10.96% of GDP. Middle East is the destination of about 80% of our total manpower export. Saudi Arabia alone receives 33.31% of total expatriates of Bangladesh.

In the Bangladeshi context land is the safest and a very profitable investment.

To protect Bangladeshi workers abroad from being retrenched by their employers and to ensure greater output of remittances government might take the following steps

Develop new foreign policy and strengthen diplomatic efforts, explore new labor markets and reduce the cost of migration.

Take necessary and timely initiatives by reforming manpower export related laws and regulations to seize this opportunity of high demand of skilled labor in the international market.

Return migrants are resistant to accept the low paid jobs, to stimulate the national economy and to increase employment assist and encourage entrepreneurship.

Expenditure on basic needs and consumer goods have welfare effects on the economy and can stimulate other domestic industries, so create and enable environment of investing remittances in Capital Market and other productive new business.

As migrants add to the demand for imports and more consumption of imported products, so exports must be encouraged.

“Socio-Economic Impact of Foreign Remittance in Bangladesh: A Study in Sylhet”

Thank You