Incentive for returnee migrant workers

We welcome the government’s decision to provide Tk 13,500 in cash grants to 2,00,000 returning migrant workers in a bid to rehabilitate them. According to a report published in this newspaper on Thursday this one-off cash assistance will be provided to the returnee migrant workers under a project titled ‘The Recovery and Advancement of Informal Sector Employment: Reintegration of Returning Migrants’ of the Ministry of Expatriates’ welfare and overseas employment. This cash assistance will indeed act as a relief for these workers. About half a million migrant workers lost their jobs during the pandemic. There should be a well laid out plan to rehabilitate these workers and this cash incentive is a step in the right direction. Remittance has, over the years, become a crucial variable in the country’s economy. The contribution of Non-Resident Bangladeshis to the country’s economy has been immense and it is high time the country helps those migrant workers who are facing a serious crisis. While we enjoy the fruits of remittances, we must also acknowledge the contributions of these workers by treating them with respect, dignity and fairness.

Remittances play a huge role in the economy of developing countries around the world, However, due to Covid-19 pandemic, most of the countries could not keep up with the previous remittance flow but Bangladesh has proved to be an exception. This indeed is a good news but as experts have pointed out, we must not be complacent and must ensure that the upward trend in remittance inflows is maintained. We must also explore the reasons for the inflow at a time when thousands of migrant workers have been laid off and forced to return home because of the pandemic. A number of factors are responsible for this unexpected remittance inflow. These include: migrant workers bringing back all their savings after being laid off; the two-percent cash incentive being disbursed since July last year encouraging them to send money through formal channels. Some Bangladeshi expats in North America and Europe deciding to keep their money in Bangladeshi banks that offer some interest on their deposits as opposed to the almost zero interest in the host countries.

Out of the more than one crore Bangladeshis living in about 160 countries, most are low-paid migrant workers in the Middle East and Southeast Asian countries and it is them who contribute the bulk of foreign currency to the national exchequer. If we want to maintain the upward trend in remittances, we must take strategic steps to encourage the inflows. Sending money through formal channels have to be made more attractive through continued cash incentives and by making the process of sending money fast, simple and smooth

We have observed that, across the world, livelihoods have been severely affected by the impact of the Covid-19 pandemic. During such economic downturns migrant workers get disproportionately affected. Migrant workers, even when they do not lose their jobs, face reduced pay or poor working conditions. Being excluded from the social safety networks add to their miseries. Every year Bangladesh needs to create two million jobs for its burgeoning youth population. About 40 per cent of this need is filled by overseas employment opportunities. Ever since the beginning of the pandemic regular migration has remained virtually closed.

Special programmes must be organised to re-skill them and re-integrate them in the local market. The authorities can seek cooperation from development partners and different development agencies. The government should further incentivise remittance and reduce remittance transaction costs. A large number of returnee migrant workers could be indebted with loans- taken during migration but not repaid. The policymakers need to pay especial attention to this problem.