Overcoming the migrant worker meltdown

Forced to return to their home countries empty-handed. Photo: Tanvir Ahmed/ Drik News
Recent developments with regard to our migrant workers have persuaded me to write about this ongoing problem. We have seen the Prime Minister, the Foreign Minister and other Ministers addressing this issue during their visits to different countries in the past few weeks. The scenario has exacerbated because of the evolving global recession and its effect on economic development in general and the construction sector in particular. It is affecting opportunities in our traditional markets for migrant workers. We have already seen the cancellation of over 50,000 visas by Malaysia. Two Ministers of our government visited that country to persuade the relevant authorities to re-consider their decision. Positive results are however unlikely in this regard. A recent report published in the Financial Express has indicated that nearly 22,000 Bangladeshi migrant workers have returned home in the first quarter of this year, majority of them from Dubai (where the construction boom has slowed down). Others have been retrenched and have returned home from Singapore. Some of those coming back have also complained that they were forced to return because the local authorities refused to agree to their continued stay through the provision of 'transfer visa' (where another local company is willing to employ them on condition that transfer of work permit from the original employer is consented to by the relevant Ministry). Time is of the essence. The World Bank has issued a warning in their semi-annual economic review of the Bangladesh economy of second-round effects of the global crisis -- both with regard to RMG exports as well as remittances received from abroad. The current trend suggests that nearly 100,000 Bangladeshi migrant workers might return home by the end of 2009. It is also being mentioned by analysts monitoring the flow of migrant workers that there might be more than 30 percent reduction in intake this year compared to 2008. One can only hope that such dire predictions of a double whammy do not come to play. Migrant workers are vital for Bangladesh, its economy and also in providing considerable support to the meeting of its balance of payments needs. In fact, one economist has pointed out that, in this financial year, despite some slow-down, we are expecting remittances from our migrant workers to reach almost US dollar 9 billion (through formal channels). This works out to per capita support of about US dollar 60, or nearly Taka 4,100 for the Bangladesh economy. One could add to this figure at least another 10 percent due to remittances also received informally through the 'hundi' channel. This is a major amount and at least one and half times more than the net foreign exchange support gained from our RMG industry. It is this significance that has persuaded Bangladesh Bank to request the Bangladeshi commercial banks to take effective measures to expedite the flow of inward remittances from different parts of the world including the Middle East, United Kingdom, Malaysia, Italy and Singapore. This has been a good step. It will facilitate transfer of funds and reduce informal inflow. Under shrinking market conditions, the role of the Private Commercial Banks (PCBs) and the state owned commercial banks (SCBs) would be critical in ensuring the steady inflow of inward remittances. There are various aspects to this growing crisis in the manpower sector. The first relates not only to the increase in the number of unemployed within the country (through the return of workers) but also frustration among those already unemployed and unable to find employment of any description either at home or abroad. The second pertains to tens of thousands of families having to face financial disaster in being unable to repay loans taken from informal sources to facilitate their family members going abroad. I fear that hundreds of thousands of families will now drop below the poverty line. The International Labour Organisation (ILO) has forecast that 23 million may lose their jobs in Asia by the end of this year. There is also another dimension within this complex matrix that needs to be reviewed. Our Bureau of Manpower, Employment and Training only monitors the number of workers going abroad. Those returning do not necessarily report to them. Consequently, we do not have reliable data about the number or the background (skilled or semi-skilled or unskilled) of the unemployed returnee migrant worker. This needs to be addressed immediately. Our government appears to be trying its best to stimulate the affected economy. A financial package has been introduced but has not been received with great enthusiasm by all the sectors. I feel that the planned stimulus should have also included the manpower sector. We have to invest here to improve its potential. Those associated need to seriously examine how we can improve the quality and skill of our workforce. The government has to encourage a private-public sector partnership, which will enable the establishment of at least 500 vocational training schools and technical training institutes all over the country within the next three months. Necessary action in this regard has to be taken on a war footing. These institutions should have the facility to provide hands-on training, through short courses of three months, in disciplines like masonry, operating machine-tools, welding, gardening, plumbing, electrical circuitry, automobile driving and maintenance, air-conditioning repair, healthcare and nursing (specially of the elderly). The objective of such training should be to produce at least 150,000 semi-skilled workers in the next one year. We have already seen how indigenous talent has created the technical pool in Dholai Khal area in Dhaka and many other parts of our country. Let us try to replicate this process. The first step should be the creation of a statistical database of what we have, description of the skills available and also of the number who can be used to become trainee teachers. It will require political will, bi-partisan commitment and dedication. We will then have that many more chances of entry into the more competitive market. In the meantime, our diplomatic Missions in the Middle East, Malaysia and Singapore should also try to persuade the relevant authorities to agree to the dynamics of 'transfer visa'. Prime Minister Sheikh Hasina, through her initiative, has shown that it can be done. Saudi Arabia is an example. Our Embassies should also be more worker-friendly. I note with regret that more than 600 young Bangladeshi migrant workers have died in the first quarter of this year, supposedly from heart attacks. Such a cause appears to be unlikely given that they were mostly between 25 and 35. Something is going wrong and it is the duty of our diplomatic Missions to get their act together and safeguard the needs of our expatriate workers. At the same time, they must ensure that these workers do not get involved in political acrimony or abuse local regulations and hospitality. We have a delicate and onerous task ahead. Any failure will be disastrous. Muhammad Zamir is a former Secretary and Ambassador. Email: mzamir@dhaka.net.
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