Remittance worry

In view of the growing need for skilled manpower and to keep pace with economic growth, the Bangladesh government needs to expand vocational training activities

In the recent decades remittances from non-resident Bangladeshis have become an increasingly important source of external funding for the country. While migrants have always been sending money home to their families, only recently has this remittance begun to play an important role in the economies of these countries, and scholars have begun to pay attention. Bangladesh is an exporter of professional skilled, semi-skilled and unskilled workers to more than 22 countries. The number of Bangladeshi workers going abroad per year has increased by five times - from 1.5 lakh in 1991 to 7.6 lakh in 2016. Currently, remittances received by Bangladesh constitute 6.7 percent of its Gross Domestic Product. During 1991-2016 wage earners' remittance to Bangladesh registered a growth of 12.6 percent per year which is far above its annual GDP growth which is around 7 percent at present. The gap between remittance inflow and foreign aid disbursement has been increasing since 2001 due to consistent growth of remittance inflow and decline in the foreign aid as a percentage of GDP.

An analysis of the dynamics of labour movement from Bangladesh shows that the buoyancy of remittances is mainly due to the increase in the number of short-term migrants. The importance of remittances in the economy of Bangladesh is well understood. As has been experienced in the past years, increased remittances have been due to increased number of migrants to various countries. The trend of remittances and migrant workers is, however, not always linear. In recent times, there is a declining trend in remittances inflow while the outflow of migrant workers has increased.

Unfortunately as the World Bank has pointed out, Bangladeshi migrant workers, who speak little English, have poor basic formal education and few vocational industries-specific skills, often face severe job insecurities.  The lack of knowledge of a foreign language, other than English, is another limiting factor. The workers are, therefore, at a disadvantage when it comes to new job opportunities, especially in this tech-driven world.

In view of the growing need for skilled manpower and to keep pace with economic growth, the Bangladesh government needs to expand the vocational training activities as well as the pre-departure orientation (PDO) program. For example, the PDO program needs to create decentralised offices across the country so as to widen their reach and make them accessible to more people.

As Bangladeshi migration grows, so will its economy. However, to reap the fruits of migration — higher remittances — the country must persistently work towards building a highly-skilled workforce that is well-trained in technology and in sync with the latest developments in the job markets.

Remittance worry

In view of the growing need for skilled manpower and to keep pace with economic growth, the Bangladesh government needs to expand vocational training activities

In the recent decades remittances from non-resident Bangladeshis have become an increasingly important source of external funding for the country. While migrants have always been sending money home to their families, only recently has this remittance begun to play an important role in the economies of these countries, and scholars have begun to pay attention. Bangladesh is an exporter of professional skilled, semi-skilled and unskilled workers to more than 22 countries. The number of Bangladeshi workers going abroad per year has increased by five times - from 1.5 lakh in 1991 to 7.6 lakh in 2016. Currently, remittances received by Bangladesh constitute 6.7 percent of its Gross Domestic Product. During 1991-2016 wage earners remittance to Bangladesh registered a growth of 12.6 percent per year which is far above its annual GDP growth which is around 7 percent at present. The gap between remittance inflow and foreign aid disbursement has been increasing since 2001 due to consistent growth of remittance inflow and decline in the foreign aid as a percentage of GDP. An analysis of the dynamics of labour movement from Bangladesh shows that the buoyancy of remittances is mainly due to the increase in the number of short-term migrants. The importance of remittances in the economy of Bangladesh is well understood. As has been experienced in the past years, increased remittances have been due to increased number of migrants to various countries. The trend of remittances and migrant workers is, however, not always linear. In recent times, there is a declining trend in remittances inflow while the outflow of migrant workers has increased. Unfortunately as the World Bank has pointed out, Bangladeshi migrant workers, who speak little English, have poor basic formal education and few vocational industries-specific skills, often face severe job insecurities. The lack of knowledge of a foreign language, other than English, is another limiting factor. The workers are, therefore, at a disadvantage when it comes to new job opportunities, especially in this tech-driven world. In view of the growing need for skilled manpower and to keep pace with economic growth, the Bangladesh government needs to expand the vocational training activities as well as the pre-departure orientation (PDO) program. For example, the PDO program needs to create decentralised offices across the country so as to widen their reach and make them accessible to more people. As Bangladeshi migration grows, so will its economy. However, to reap the fruits of migration higher remittances the country must persistently work towards building a highly-skilled workforce that is well-trained in technology and in sync with the latest developments in the job markets.