Skill development can further boost remittances

Bangladesh has seen an impressive growth in remittances in recent years, earning a record of $15 billion in remittances in the financial year ended June 2015.
 The remittance growth of 7.6 per cent over the previous fiscal has been the driving force of the Bangladesh economy — estimated at over 6 per cent in FY15 — and its foreign exchange reserves of over $25 billion.
 If Bangladesh is to achieve its remittance target of $20 billion by the end of this decade and  sustain its robust economic growth, then it is  imperative the government invests in developing the right skills and resources of its potential  migrant workforce.
Skills development and vocational training will help future migrants get better and high-paying jobs overseas, which in turn, will bring home greater volumes of remittances. It will also increase the value of their services in the global job market.
An estimated 1.5 million people join the labour force every year. A significant portion of these workers migrate to countries across the world — mostly to the Gulf and Middle East, Singapore, Malaysia, North Africa, USA, and the UK — in search of a better livelihood for themselves and the families they leave behind.
However, in the event of a global recession, Bangladeshi migrant workers are amongst the first at risk to lose their jobs — because they are usually the bottom rung of skilled labour.
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 our tech-driven world.
The situation is no better at home. The lack of skills, proper training and limited access to quality education are resulting in poor employment and lower wages in Bangladesh, where the demand for good jobs is overshadowed by supply of poorly trained workers.
In light of these developments, the Bangladesh government has established training centres across the country to educate and train workers in new and advanced skill-sets.
These centres, set up under the aegis of the Ministry of Expatriates’ Welfare and Overseas Employment of Bangladesh, impart training in different areas including marine engineering, plastic technology, renewable energy like solar, architectural drafting with auto CAD, welding and fabrication, masonry, housekeeping, and general electronics and mechanics, among other courses.
In an effort to align skills development and vocational training with the market demand, the Bangladesh government and the World Bank launched the Skills and Training Enhancement Project (STEP) — to strengthen public and private training institutions, and improve the quality of skills training and employability of trainees — both at home and in overseas job markets. This program is also open to workers from economically weaker sections.
In recent years, the government has been following in the footsteps of other countries, like India and Sri Lanka, which have been training their workers in strategic disciplines — construction, information technology, healthcare, banking and finance, and human resource and management.
However, Bangladesh faces an unusual problem. The country is in need of trained personnel to impart training to those who need it the most. It is already taking steps to train the trainers first. Within the Bangladesh government, the Bureau of Manpower, Employment & Training (BMET) has been playing a critical role in human resource development by providing vocational skills training to workers in diverse fields.
It also organises in-plant apprenticeship and conducts tailor-made courses for industrial employees. The curriculum includes regular briefing sessions to inform prospective migrants about their destination countries vis-à-vis service conditions, local language, customs and culture, working environment, remuneration and other benefits. Financial literacy programs, including safe remittance systems, also feature in these workshops.
Over the years, the government has been encouraging international money transfer operators (IMTOs) in the country to conduct financial literacy programs to educate migrants and their families about safe remittance practices and the importance of using legal channels to remit money.
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.

The writer is COO of Xpress Money and can be reached at [email protected]

Skill development can further boost remittances

Bangladesh has seen an impressive growth in remittances in recent years, earning a record of $15 billion in remittances in the financial year ended June 2015. The remittance growth of 7.6 per cent over the previous fiscal has been the driving force of the Bangladesh economy estimated at over 6 per cent in FY15 and its foreign exchange reserves of over $25 billion. If Bangladesh is to achieve its remittance target of $20 billion by the end of this decade and sustain its robust economic growth, then it is imperative the government invests in developing the right skills and resources of its potential migrant workforce. Skills development and vocational training will help future migrants get better and high-paying jobs overseas, which in turn, will bring home greater volumes of remittances. It will also increase the value of their services in the global job market. An estimated 1.5 million people join the labour force every year. A significant portion of these workers migrate to countries across the world mostly to the Gulf and Middle East, Singapore, Malaysia, North Africa, USA, and the UK in search of a better livelihood for themselves and the families they leave behind. However, in the event of a global recession, Bangladeshi migrant workers are amongst the first at risk to lose their jobs because they are usually the bottom rung of skilled labour. 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 our tech-driven world. The situation is no better at home. The lack of skills, proper training and limited access to quality education are resulting in poor employment and lower wages in Bangladesh, where the demand for good jobs is overshadowed by supply of poorly trained workers. In light of these developments, the Bangladesh government has established training centres across the country to educate and train workers in new and advanced skill-sets. These centres, set up under the aegis of the Ministry of Expatriates Welfare and Overseas Employment of Bangladesh, impart training in different areas including marine engineering, plastic technology, renewable energy like solar, architectural drafting with auto CAD, welding and fabrication, masonry, housekeeping, and general electronics and mechanics, among other courses. In an effort to align skills development and vocational training with the market demand, the Bangladesh government and the World Bank launched the Skills and Training Enhancement Project (STEP) to strengthen public and private training institutions, and improve the quality of skills training and employability of trainees both at home and in overseas job markets. This program is also open to workers from economically weaker sections. In recent years, the government has been following in the footsteps of other countries, like India and Sri Lanka, which have been training their workers in strategic disciplines construction, information technology, healthcare, banking and finance, and human resource and management. However, Bangladesh faces an unusual problem. The country is in need of trained personnel to impart training to those who need it the most. It is already taking steps to train the trainers first. Within the Bangladesh government, the Bureau of Manpower, Employment Training (BMET) has been playing a critical role in human resource development by providing vocational skills training to workers in diverse fields. It also organises in-plant apprenticeship and conducts tailor-made courses for industrial employees. The curriculum includes regular briefing sessions to inform prospective migrants about their destination countries vis--vis service conditions, local language, customs and culture, working environment, remuneration and other benefits. Financial literacy programs, including safe remittance systems, also feature in these workshops. Over the years, the government has been encouraging international money transfer operators (IMTOs) in the country to conduct financial literacy programs to educate migrants and their families about safe remittance practices and the importance of using legal channels to remit money. 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. The writer is COO of Xpress Money and can be reached at [email protected]