Nonfarm income boost to slow local migration: BIDS

Increasing the nonfarm income of people living in municipality areas can slow down internal migration to urban areas, according to a study by the Bangladesh Institute of Development Studies.

BIDS unveiled the study at an event organised at its auditorium on Wednesday, where researchers suggested setting up industries at union centres so that people could get alternative income sources near their homes.

“We find the migration reducing the impact of nonfarm income only for the households in municipalities but not in the rural areas,” explained Kazi Iqbal, a Senior Research Fellow of the BIDS.

The study noted that there are some indications that higher nonfarm income encourages migration in rural areas. The impact is more pronounced for the income rich, land poor and educated households. The study also found that the likelihood of migration is lower from the union with SME cluster.

BIDS Director General Binayak Sen, who chaired the event, said that Bangladesh is a densely populated country where people’s job opportunities are meager.

“Employment scope in the agricultural sector is lower than in the industries. If industries are built in local areas, it will create job opportunities for people and discourage them from migrating to the urban areas,” he said.

Researchers suggested that an industry in a rural area could contribute more compared to an industry in the urban area. Setting up industries in each union centre could reduce the poverty of many people.

Kazi Iqbal said that during the initial periods of the Covid-19 many migrant workers suffered due to lockdown in many developing countries like Bangladesh and India. Creating opportunities closer to the places where workers live can only avoid such disasters in the future.

“If industries are built near houses, workers will not need to migrate,” he said.

The study suggested bringing the industry closer to the labour was desirable for balanced growth and welfare. “Private sector has little incentives to move their industries to the remote areas where the cost of production is higher. Hence, the government interventions are required in terms of policy supports and investments to incentivise the private sector to relocate their industries to the rural and semi-rural areas,” it said.

However, agricultural and green activists opposed the proposal saying that modern agriculture was creating job opportunities even for many educated youth.

“Industries in rural areas can pollute the environment and harm agro production,” said Shykh Seraj, a media personality and agriculture development activist.

He asked the authorities concerned to put more emphasis on agriculture than industry to ensure people’s food security.