'Real remittance' income declines in three years

It dropped 26pc in case of male workers in 2017 while 15pc for women: Study


FE Report | Published: October 31, 2018 12:02:19 | Updated: November 02, 2018 11:36:56


Reuters photo used for representational purpose

The 'real remittance' earnings of male workers dropped by 26 per cent in 2017 as compared to 2014, if the inflation rate is considered, according to a panel data prepared by Refugee and Migratory Movements Research Unit (RMMRU).

But in terms of Bangladesh local currency, their remittance income declined by 11 per cent, it also showed.

The data was released at a dissemination workshop of a book titled 'Impact of Migration on Poverty and Growth in Bangladesh' in the city's Brac Centre Inn on Tuesday.

The findings also showed that the remittance earnings of women workers increased by 1.5 per cent. Considering the inflation rate, the remittances earnings of women workers, however, dropped by 15 per cent in 2017 compared to that of 2014.

The book was published by RMMRU with the panel data in cooperation with the Swiss Agency for Development and Cooperation (SDC). Such data was prepared for the first time in the country through twice survey between 2014 and 2017.

The survey carried a total of 6,143 households in 20 higher, middle and lower migration-prone areas in the country.

Of the total households, 2,976 were international migrant, 1,431internal migrants and 1,736 non-migrant households.

The research also found that the cost of workers' migration bound for Middle East and Southeast Asian countries declined in the last three years.

It said that the male workers of the surveyed households spent an average of Tk 382,031each in 2014 while the spending was Tk 342,258 each between 2014 and 2017.

Although the expatriates' welfare ministry announced zero migration cost for outbound women workers, the research revealed that they spent an average of Tk 90,000 each to go abroad with jobs. The cost of migration for women workers is one-fourth of the male workers.

If the rate of inflation is considered, migration cost for female workers reduced by 21 per cent in the last three years, it said.

The research outlined that migration is not a static issue. The location of the migration of 27 per cent of surveyed households has been changed in the last three years.

The income of migrant households depends on the place where they move, it said.

The consumption growth increased in all three types of migrant households. The rate of consumption has increased more in international migrants' households than that of the others.

On the other hand, according to the data, though the consumption rate of migrant people increased, their poverty rate did not decline simultaneously.

Their annual expenditure increased 9.0 per cent, but the poverty rate dropped by only 1.0 per cent, the data showed.

So, it was found that the workers those who were migrating with a view to increase their income, sometimes cannot achieve their goal.

Dr Zahid Hussain, lead economist of South Asia Finance and Poverty group, was the special guest at the workshop. He said the research would help policymaking, he said.

He also emphasised on utilisation of remittances and skills of migrant workers. So, it is necessary to collect returning workers' database.

"It is not only important how many workers are going abroad every year, but the returning data is also very much essential for policymaking for this sector," he added.

If the country wants to maintain sustainability in migration sector, it is necessary to ensure good governance, said Dr Tasneem Siddiqui, founding chair of RMMRU. She presented the key findings of the research.

Beate Elsasser, deputy head of mission and director of cooperation of SDC, Dr Khan Ahmed Sayeed Murshid, director general of Bangladesh Institute of Development Studies, Giorgi Gigauri, chief of mission of IOM Bangladesh, Shaikh Md. Sharif Uddin, deputy chief of planning branch of Ministry of Expatriates' Welfare and Overseas Employment.

As panel discussants, Dr Fahmida Khatun, executive director of Centre for Policy Dialogue, Selim Raihan, professor of department of economics at University of Dhaka, Nurul Islam, director of Bureau of Manpower, Employment and Training (BMET) were present.

Dr Ananta Neelim and Dr C. Rashaad Shabab shared the research findings while the workshop was moderated by Dr CR Abrar, executive director of RMMRU.

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