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LaborMigrationfrom Bangladesh to the Middle East

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World Bank Staff Working Paper No. 454

Public Disclosure Authorized

Public Disclosure Authorized

April 1981

Prepared by: SyedAshrafAli Abu AhmedArif A. K. Md Habibullah A. R.M. AnwarHossain Rizwanul Islam WahiduddinMahmud S.R.Osmani Q. M. Rahman A. M. A. H. Siddiqui Consultants, SouthAsiaRegion Copyright® 1981 TheWorldBank 1818H Street,N.W. Washington, D.C.20433,U.S.A. Theviewsandinterpretations in thisdocumentarethoseof the authors andshouldnot be attributedto the WorldBank,to its affiliated organizations, or to anyindividual actingin theirbehalf.

SWP-454

The views and interpretations in this document are those of the authors and should not be attributed to the World Bank, to its affiliated organizations or to any individual acting on their behalf.

WORLD BANK Staff Working Paper No.

454

April 1981

LABOR MIGRATION FROM BANGLADESH TO THE MIDDLE EAST

Since the mid 1970s, labor migration from South and East Asia to the Middle East has been increasing very rapidly. It has many important economic and social implications, including those for the balance of payments, spending of migrant families, labor market, training needs, implementation of development projects, domestic savings and investments and income distribution. The undertaking of this study in Bangladesh was prompted by the lack of knowledge about these various aspects and consequently about the costs and benefits of labor migration. The study was funded by the Bank Research Committee and is part of a wider project which also includes Pakistan (Research Project 671-83). Most of the work on Bangladesh was done through local research and under the guidance of a local Steering Committee, which included representatives of the various institutions associated with the study. It is hoped that this report will be an incentive for further research on the subject and be a stimulus for needed continued data gathering and re-examination of relevant policy issues.

Prepared by the following consultants: Syed Ashraf Ali (Bangladesh Bank)

A. R. M. Anwar Hossain (Bureau of Manpower)

S. R. Osmani (BIDS)

Abu Ahmed Arif (Planning Commission)

Rizwanul Islam (Dacca University)

Q. M. Rahman (Dacca University)

A. K. Md Habibullah (Sonali Bank)

Wahiduddin Mahmud (Dacca University)

A.M.A.H. Siddiqui (ILO, Bangkok)

Copyright(Q 1981 The World Bank 1818 H Street, N.W. Washington, D.C. 20433 U.S.A.

TABLE OF CONTENTS

PREFACE

Page No.

SUETTARY

i

CHAPTER I.

xvi

-

DEVELOPMENTOF MANPOWEREXPORT AND PROFILE OF . ....... MIGRANTS FROM BANGLADESH. A. Introduction

1

.........................................

B. Development of Migration, Related Organizations and Policies .. 22

C. Manpower Training and Supply in Bangladesh ...........

27 .................

D. Profile of Migrants from Bangladesh .

43

E. Future Trends

CHAPTER II. AN ANALYSIS OF THE INFLUENCE OF HOME REMITTANCES BY BANGLADESHI WOEKERSABROADON THE NATIONAL ECONOMY................................................

B. The Wage Earners

51

* ...........

A. Introduction . ..............

52

......

Scheme

C. Remittances of the Migrants ....

**....................

56

65 .............

D. Migrants' Characteristics and Problems ..

. E. Effects of Remittance Money on Money Supply ........

73

F. Use of Remittance Money for Financing Imports ........

75

G. Remittable Savings and Actual Remittances ........... . H. Measures to Increase the Flow of Remittances .........

77 79

CHAPTER III. AN ANALYSIS OF THE IMPACT OF REMITTANCE MONEY ON HOUSEHOLD EXPENDITURE IN BANGLADESH. A. Introduction ...............

.,

.. .

B. The Data and the Sampling Methodology C. Characteristics of the Sample

.........

81...,,........... 81 82

86 ........................

D. Impact of Remittance Money on Levels and Composition of Household Expenditure .................

101

E. Uses to Which the Remittance Money is Put by the Receiving Households ......................

127

F. Some Concluding Observations ..

137 .......................

-

CHAPTER IV.

2

-

COST OF TRAINING OF BANGLADESHMIGRANTS TO THE MIDDLE EASTERN COUNTRIES .......................... A. Introduction ..............

....................... 139

B. Annual Average Recurring C'ost of .............................. 143 Training Migrants .. Cost C. Annual Average Recurring Employment Exchange Programme D. Annual of the

157

...............,.,,,,,,,,,

......................... .............

159

of Migration

...........

160

...................

165

D. Summary Results and Conclusions ....................

167

B. An Assessment C. The Anticipated

of the

Impact

Position in

1983

PROJECTION OF MANPOWERDEMANDIN THE MIDDLE EAST AND OF MANPOWEREXPORT THE PROSPECTS AND POSSIBILITIES FROMBANGLADESH......................................

A. Introduction

....

.......................

*.

172

of the Labor Market in B. The Structure *. ...................... the Middle East . ...........

172

of Labor Market Structure C. Existing * ............. .............. in Bangladesh

185

D. Prospects and Possibilities of Export from Bangladesh to th¶ Middle East CHAPTER VII.

155

EFFECTS OF LABOUR MIGRATION ON MANNINGOF PRODUCTION AND SERVICE ESTABLISHMENTS IN BANGLADESH............................................ A. Introduction

CHAPTER VI.

................... 154

Cost of Migrants and Average Capital Employment Exchange Programme ............. .

E. Summary and Conclusion

CHAPTER V.

of the1 ...

* *

of Labour ................

186

SOCIAL COST-BENEFIT ANALYSIS OF MANPOWEREXPORT FROM BANGLADESH ..................................... A. Introduction B. Level of Remittance

........ ..........

...................

193 195

C. Direct Cost of Emigration: Productivity Loss ...................... and Cost of Training .

203

D. Impact of Remittance on Income and Consumption of Migrants' Families .................

210

E. A Framework for Cost-Benefit Analysis .......0.....0 .

221

- 3 CHAPTER VIII. POLICY RECOMMENDATIONSAND IMPLICATIONSFOR PROMOTINGMANPOWER EXPORT FROM BANGLADESH ............ A. Introduction .********.*......................

226

B. Procedural Matters

228

..........

D. Eaigration Policy

.

...

C. Institutional Arrangements . .......

E. Remittances and Related Issues

. .........

.

..... o ........

....

*

235

,

242 ,

249

254 I .............................................. 325 Appendix to Chapter II ........................ 365 Appendix to Chapter V ........................ 386 Appendix to Chapter VI ....................... Appendix to Chapter

Appendix to Chapter

VIII .......................

391

PREFACE The migration on fixed-term contracts of Bangladeshi manpower to Middle East is a comparatively recent phenomenon. However, in the course of a few years the phenomenon has become so important, and the flow of earnings so sizeable, that the subject has become worthy of study and analysis. A research proposal to that effect was prepared in Dacca, with the assistance of the Resident Mission of the World Bank, and approved for financing by the Bank's Research Committee, in September 1978. In line with the World Bank's recent endeavor to have an increasingly large share of research activities performed by institutions in developing countries, the project was conceived as a purely Bangladeshi research undertaking. The study was carried out, beginning in December 1978, by a number of local institutions and organizations, including the Bureau of Manpower, Employment and Training (BMET), the Bangladesh Bank, the Planning Commission, the National Foundation for Research on Human Resource Development and the Institute of Statistical Research and Training, Dacca University. Coordination and guidance were ensured by a Steering Committee, which included representatives of all the institutions associated with the study. Members of the Steering Committee were, apart from the authors of the papers included in this volume: Professor Taherul Islam, Chairman of the Department of Economics, Dacca University, Mr. J. L. Kennedy, Chief Technical Adviser to the BMET and Mr. A. Van Nimmen, Senior Economist, World Bank Resident Mission. During the first year of the study, the Steering Committee was chaired by Mr. A. M. A. H. Siddiqui, then Director-General of the BMET, and presently attached to the Asian Regional Project for Strengthening Labor/Manpower Administration, ILO, Bangkok; during the final stages, the chairmanship of the Committee was assumed by Professor Taherul Islam. The project Director was Dr. A. K. Md. Habibullah, formerly an Assistant Professor of Economics, Chittagong University, and at present Director, Research and Statistics Division, Sonali Bank. On behalf of the World Bank in Washington, the project was supervised and support provided by Mr. Marinus van der Mel, Senior Economist in the South Asia Regional Office. The eight papers prepared for the project and included in this volume are: Chapter I. "Development of Manpower Export and Profile of Migrants from Bangladesh" is written by A. R. M. Anwar Hossain, Director, Bureau of Manpower, Employment and Training, Government of Bangladesh. It traces the historical development of the Manpower Export Policy of the Government over the years and presents a profile of the characteristics of the migrants from Bangladesh, based on information available from the Bureau, which is also used in other studies.

ChaPter II. "An Analysis of the Influence of Home Remittances by Bangladesh Nationals Working Abroad on the National Economy" is a study written by Syed Ashraf Ali, Senior Assistant Controller, Exchange Control Department, Bangladesh Bank. This study focusses on the Wage Earners Scheme, the methods and channels of remittance, their level, use and effects on financing of imports, effects on money supply and inflation, etc. Chapter III. "An Analysis of the Impact of Remittance Money on Household Expenditure in Bangladesh" is written by Dr. Rizwanul Islam, formerly Research Associate, National Foundation for Research on Human Resource Development and at present Associate Professor Based on a sample Dacca University. of Economics, in the Department classification in terms of rural and their study of the households and non-migrants (therefore and urban centres, remittance-receiving and the spending behaviour receiving) households, non-remittance and analysed. pattern are studied and investment savings consumption, Miigrants to the M'iddle of Bangladesh Charter IV. "Cost of Training Eastern Countries" is a study by Dr. Quazi Mafizur Rahman, Associate Professor, Institute of Statistical Research and Training, Dacca into five major the migrants University. The study classifies groups and estimates the current (or recurring) costs occupational

of training of migrants, recurring cost of the employmentexchange programme employment

cost of the and capital programme. exchange

training

of migrants

and

of the

of Labor Migration on Manning of Production and Chapter V. "Effects by Abu Ahmed Arif, are analysed in Bangladesh" Establishments Service Planning Division, Infrastructure Socio-Economic Deputy Chief, the impact of Bangladesh. The study assesses Government Commission, of educated to 14 groups with regard from Bangladesh of labor migration economy. in the national manpower and skilled of Mqanpower Demand in the Middle East and Chapter VI. "Projection of Manpower Export from Bangladesh" and possibilities the Prospects Professor an Assistant formerly by Dr. A.K.Md. Habibullah, is written Director,Research and at present University Chittagong of Economics, and Statistics Division, Sonali Bark. The study analyses the existing structure of the labor market in the Middle East, projects the future the prospects and assesses and occupation, by country demand pattern to the from Bangladesh by skill and occupation of labour for supply Middle East. Analysis of Manpower Export from Chapter VII. "Social Cost-Benefit Bangladesh" is written jointly by Dr. W,iahiduddin M,ahmud, Associate and by Dr. Dacca University, of Economics, Professor, Department Siddiqur Rahman Osmani, Research Economist,Bangladesh Institute of Development Studies. The paper deals with the theoretical issues of cost-benefit analysis and estimates the benefits and costs of manpower export to the economy of B ,ngladesh.

Chapter VIII. "Policy Recommendations and Implications for Promotingr Idanpower xcport from Bangladesh" is a study written by A.Ii.A.H. Siddiqui, former Director-General of the Bureau of Manpower, EmDloyment and Training, Dacca. Dr. Habibullah also contributed to Part C of the study. The paper raises both procedural and policy issues and recommendations with regard to manpower export from 3angladesh.

The various studies in this volume were written independently by the authors and, though data and information were shared throagh the Steering Committee, the studies were not conceived as carts of a single piece of work. The task of editing the papers in order to standardise the language and eliminate unnecessary duplications was performed by Dr. Alimur Rahman, Associate Professor,Institute of Business Administration, Dacca University. Kevertheless, since the subjects treated are interrelated and strict comprartmentalisation would have been artificial, there continue to be a number of overlaps. One, therefore, should not expect the unity of thoaght that characterises a book on the subject. The authors gratefully acknowledge the great debt owed by them to Professors J. R. Goodman and Steve Guisinger for valuable advice given on statistical sampling methods and cost-benefit analysis methodology. Typing of the final version of the report was very ably performed by Ms. Jennifer Beckett, and by S.A. Khan. The authors represent their area of expertise rather than the agencies to which they belong and as such the usual disclaimer about errors and omissions applies.

SU1I'ERY

I. Developmentof Manpower Export and Profile of Migrants from Bangladesh s.1 The major manpower problems in Bangladeshare huge unemployment and underemployment,unemployment among educatedyouth, high rate of population growth and, as a consequence,increase of the labor force, low capacity of the economy to produce jobs and failure of the First Five Year Plan to create the 4.1 million jobs forecast. Because of the situation,labor migration to the Middle East deterioratingunemploymenit started almost automatically. s.2 Early migration (before 1972) helped greatly in creatinfr a market for Bangladeshiworkers in the MiiddleEast. During 1972-75 several unofficial delegationsfrom the Middle East visited Bangladesh to recruit manpower. This unofficialrecruitmentgave rise to many malpractices.Initial efforts to develon an effective governmentmanpower export policy were not very successful.To improve this situation,in 1976 the Bureau of Manpower, 3nploymentand Training (BMET) was created. BMET, however, has to perform of its a variety of functions and manpower export constitutesonly some 10%,' overall activities. s.3 BMET is responsiblefor processingall demands from foreign employers, except recruitment of seamen and internationalorganizations.Under it, the employmentexchangeshave a foreign employmentcell where a re-ister is held of overseasjob seekers. BIMETitself holds a master register which includes in addition to the job seekers identifiedthrough the employmentexchanges, those appearing on surplus lists of public,sector enterprises. s.4

Besides BHET, there are five other channels

of recruitment,

namely:

(a) licensedrecruiting agents known as passage brokers; securing ad-hoc permission from BIdET; (b) private parties (c) individualeffort (personsobtaining jobs through relations and friends already in the Middle East); (d) foreignmissions in Bangladesh;and (e) Bangladeshi firms securing contracts for work in the Middle East. During 1976 through April 1979, 34% of a total of 58,100 registered migrants to the Middle East were recruited throughBMET, 8% through recruiting agents and 58 through individual effort. s.5 BMETdoes not require a fee from the employer for its services. In contrast, private agents receive a commission from employers. The agents are held to recruit from among candidatesregisteredwith employment exchanges, but this rule is violated on a large scale. Agents are also held to deposit a sum of Tk.50,000 as a guarantee for good conduct. In practice,of 271 registeredagents, only some 10% have managed to be an intermediaryfor genuine employmentdemands more than once.

ii

s.6 The direct recruitment efforts of some foreign missions (embassies in a lack of confidence in BHYT's ability to ensure the reflect Bangladesh) of in the interest are tolerated, efforts of candidates.These selection fair firms wo-rking! in the jobs. There are now 12 Bangladeshi additional securing 3,600 mie-rants. who have recruited sub-contractors, mostly Mliddle East, demanded in the I2.iddle East the salary for negotiations, s.7 As basis for unskilled is 6-8 times and that workers and skilled for professionals to remit 252' Each worker is obliged in Bangladesh. workers 5-6 times that is difficult to enforce. of his salary, but this 31ET is operating under very difficult circumstances. It has highly s.8 insufficient office space, is seriously understaffed, the public is not properly informed about employment opportunities and the records of BEET are not in proper order. Xalpractices in recruitment in the Bureau have and recruitment agents are known to have exploited job seekers. occurred Migration policies need to be improved through a Master Plan which s.9 should include the following elements: (a) Revision of the Migration Act of 1922; (b) Establishment of a lanpower Export Authority. This would take over the manpower export function of BMEI-and is under consideration by the CGovernment.It would have a commercial outlook and be financed separately. f2 similar or•anizatiCn, Board, exists in the named Overseas 3mployment Develo,<,ment Philippines; (c) :Torestrictions on individual migration effortsx is also (d) Establishmentof a network of employment offices.1iS ( under consideration. It would include district offices in Bang;ladesh and regional offices in the Middle East. Its functions would include placement, vocational guidance and training, and labor market intelligence; (e) Establishment of a .anpower .'esearch Institute; (f) Dissemination localLy of special skills acquired abroad. This was done in Turkey -hrough brief courses; (C) Developin- a scheme for better use of remittances. On December 1, 1979 about 166,000 persons had registered with s.10 employment exchange for foreign employment. The Government has been giving increasing attention to technical training. A large number of new private training institutions of low quality has also emerged. s.11 Information on the profile of migrants was obtained from the records a 104 sample of those who left during 1977 and 1978; on this of' BMIl using could be obtained for 3,572 migrants. details basis,

iii

s.12 By skill distribution, 71.8% of the sample consisted of workers in construction (by far the largeot category), transport and production. Professional workers (engineers, doctors and others) comprised 5.4,o technical workers 2.6` and service workers 8.4,. The great majority (82.3%o) are below secondary level of education. The higher the skill, the better the prospect of employment. Two-thirds had contracts for one year and onethird for two years. Professional migrants had longer contracts as compared to other migrants. s.13 Two-thirds of migration took place to UAZ (32.3/%) , Oman (12.7%6), Saudi Arabia(12.6-')and Kuwait(9.1%).Over one-half of the migrants came from only three districts, namely Chittagong, Dacca and Sylhet. IIost migrants are rural (77.8%D); Dacca is an exception with 57.3%O coming from urban areas. s.14 82.6%

Employers have of the employed,

a great preference as a ainst 10.4'"

for a-es 20-35 which represented the 36-40 age group. The majority of migrants (88.8%) were employed in t he private sector, but public countries under study claimed personnel with greater skills. employment in all in

country and the district s.15 The fact that UAP is the maximum importing the maximum labor exporting area in Bangladesh, probably has of Chitta,ong earlier migrants were able to help friends and relatives historical reasons; in findinFc employment. Dacca is statistically overstated because many job employment seekers register under a Dacca address to get chances for foreign The concentration of migrants in few districts is also caused more cuickly. by the limited itinerary of recruiters and the short notice of their arrival. s.16 There is a need for reorienting training to meet specific skills; at present a large part of education is Labor attaches abroad could be helpful in non-technical. could also better exploit its traditional needs. Bangladesh A;rab world, for employment purposes.

the demand for too general and identifying specific links with the

s.17 More constru-ction contracts in the Middle East of Bangladeshi firms would be especially conducive to greater migration, but lack of financial resources is an impediment to obtaining such contracts. Trainin,facilities need to be increased for a number of critical trades; informal and apprenticeship training offer the best prospects. Legal apprenticeship training requirements which exist for larger establishments presently are not being enforced. s.18 During 1977-78, Bangladesh filled 0.89,% of the total new expatriate labor reouirement in the Middle East. Applying the same percentage (refined by major occupation groups) to labor requirements during 1980-85 as estimated by the -TTorld Bank, the result is that migration from Bangladesh during this (gross). If one assumes a continuation of the period would amount to 165,000 growth rate of 7.35%'for Bangladeshi migration in 1979, the gross total during the six-year period could reach 189,700. A third projection, based on a share of 1 .035 (observed for 1979) leads to a total of 191 ,400 gross.

iv

s.19 It is assumed that about 20% of migrants might come back every year from 1980 onwards. Two estimates of the number of migrants in the Middle East in 1985 are 169,900 and 141,200 respectively. These various totals might be exceeded if the World Bank estimates would be too low and/or Bangladesh would manage to expand its share above that assumed in the projections. II.

Influence of Home Remittances on the Economy

s.20 Home remittances are the second largest foreign exchange earner after jute products. In FY79, receipts from remittances plus the value of goods imported under the Wage Earners' Scheme (WES) amounted to Tk. 2,430 million (almost $160 million). This does not include imports by migrants under personal baggage rules. s.21 The WES was introduced from mid-1974. It is based on the same principle as the Bonus Voucher Scheme existing in Pakistan in the 1960s. WES enables wage earners to sell their foreign exchange in Bangladesh to importers at a premium over the official rate and thus provides an incentive to use official channels for sending money home. Nevertheless, some foreign exchange is sold by migrants abroad against Takas at a premium, enabling residents of Bangladesh to transfer funds out of the country illegally. Foreign exchange offered under the WES is auctioned daily. It makes possible imports of goods and services not allowed otherwise. Funds deposited under WES may also be re-exported. s.22 Statistics of migrants' remittances are incomplete because prior to August 1978 no records were kept of migrants' funds used directly to finance imports. Since August 1979, such shipments have been largely disallowed. Because of this and the continued outflow of workers, remittances through official channels in 1979 were estimated to rise to Tk.3 billion (about $200 million). s.23 Factors which might raise the future level of remittances include increased earnings levels of migrants, higher savings, larger flow of returnees, government policies, the economic and political outlook of the country and the removal of UK exchange controls. Assuming a growth rate in 1980 of 25%, in 1981 of 20% and in 1982-85 of 15%, world wide remittances to Bangladesh in 1985 could reach Tk.7,870 million (or some $500 million). Workers from the Middle East collectively now remit more than those from the UK; also, statistically the UK share is overstated because many Middle East workers remit through London. s.24 Bangladesh Bank conducted a special survey of 720 foreign currency accounts opened through 1978 under the WES (about 2% of the total). The survey indicates that accounts are heavily concentrated in Dacca, because facilities available in other centers are few. From 1977 onwards the number of accounts rose rapidly because of special efforts. Most accounts are held by professionals and technicians. Migrants in UAE have relatively few accounts.

v

s.25 Ilost foreign exchange under WES is sold by intermediaries. A special committee,set up in 1977, auctions foreign exchange on behalf of migrants without suitable relations in Bangladesh (about 15` of a-gregate remittances). The premium under I7EShas averaged about 30j,.Foreign under 7TES is not a Dart of the common foreign exchange from remittances exchange pool of the country. s.26 Bangladesh Bank also did a survey of the profile of 189 returning migrants (mainly on vacation). ,ome of the major findings are the following: (a) 20>6 stayed more than two years; (b) earnings in the Middle East were more than ten times those in Bangladesh; (c) migrants exhibited a strong propensity to save; (d) 50" of remittances were through bank drafts; (e) (f)

delays in remittances were very long, for drafts an average of 37 days; the part of remittances invested went mainly into land buildings, agriculture accounting for only 1';

and

(g) over one-third would like to stay abroad longer than two years. s.27 One of the most serious problems faced by migrants in the Middle East is inadequacy of remittance arrangements. One cause is insufficient Needed is a publicity campaign covering knoT.-ledge of remittance procedures. remittances themselves, and their disoosal and investment. Lack of knowledge of Arabic, non-cooperation of foreign bank personnel and inadequate telecommunication links are also major difficulties. Losses of remittances means, forged apparently are large. -hey are encashed by fraudulent signatures, paid to wrong persons, and families are also the victims of banks do not earn enough threats, robbery, etc. Furthermore, domestic handling remittances, which makes many of them disinterested. Disposal of remittances equally entails substantial difficulties. Arrangements are not widely known, banks work slowly, and brokers manipulate the price under the 53S to their advantage. Needed are effective steps such as periodic fixing of floor and ceiling rates. s.28 Exchange of remittances is generally not possible outside main centers. It is therefore su-gested to issue to migrants drafts in Taka in the Middle East. A further goin- step would be to issue to them Taka bonds; these could bear interest pro,ressively higher for longer periods to encourage savings. s.29 Remittances may have an inflationary impact because of delay in imports financed from the proceeds under lTES.Moreover, a good deal of spending is concentrated on scarce luxury and other consumer items, land and housing, with consequent strong price increases for these categories. Very little interest exists as yet for investment in securities. `fhat this

vi

all adds up to is that at present almost the only economic benefit of migrants' transfers is balance of payments support by way of enlarged imports, but to a considerable extent resulting in conspicuous consumption of luxury items. s.30 Imports of goods eligible under the ,,,ES are unrestricted; no limit exists for the quantity and value of goods that an individual merchant can import. An analysis of the composition of imports reveals that in 1978 13% consisted of essential consumer goods, 17% of non-essential consumer goods, 6% of capital goods and 64% of raw materials. Considering that a large share of the latter eventually is converted into luxury goods, altogether about one-half of imports under the 3ESgoes to luxury items. Moreover, this share appears tc be rising. s.31 A special study appears in order to assess the effects of imports under the TES on the economy. Unchecked imports retard growth and expansion of local industries. Consumers develop a taste for imported items. WES also defies the desirable objective of unifying the exchange rate. Moreover, it diverts scarce foreign exchange away from otherwise desirable investments and essential goods. s.32 Examination of the average level of remittances per minrant (Tk.990 per month) in relation to levels of earnings and savings in the Middle East, reveals that Bangladeshi workers are remitting very substantially below their potential. The obvious explanation is that a sizeable share of earnings is diverted to the black market. This money is used for financing of duty-free imports, smuggled items, to cover the difference between invoiced and actual prices, and to finance illegal capital exports. s.33 There is therefore a need for new investment outlets within Bangladesh to tackle the twin problems of too low workers' remittances and non-productive use of these remittances. Assets presently available, except prize bcnds, have little appeal for migrants. The odds are heavily against attracting migrants' savings into productive channels. Nevertheless a number of possibilities exist: (a) Investment in industries; for this, establishment is needed of a special agency to serve migrants; (b) Prize bonds in larger denomination (say Tk.500); these could be sold directly in the Xiddle East to migrants through

(c)

banks and foreign missions, exchanged at WES rates; these Savings certificates;

and foreign

currency

would again

be provided

would be directly

to Bangladeshi communities abroad on the basis of a special

campaign of the Saving Di-rectorate; (d) Life insurance; the nationalized life insurance company (Jiban Bima Corporation) should step up its promotion efforts among migrants.

vii

III.

s.34

Impact of RenmittanceMoney on Household Expenditure

A study was made of the migrant remittances from abroad recelving such remittances (the selection of the households was with BMET (about 3,000 cases).

expenditure pattern of households receiving in comparison with that of households not so-called control group). The basis for the 10M sample of migrant workers registered

s.35 From this sample, a subsample was systematically drawn for 201 households of migrants in rural areas,.These belong-edto eight thanas (two for each of four selected districts). The number of households selected for each of the eight thanas was proportional to the share of addresses located in it (one of the thanas had only one selected address and was deleted). The thanas chosen belonged to two g,roups,one with a hi7h and the other with a low concentration of addresses. In some cases no respondent was found at a given address and interviewers had to select a substitute address.

s.3 6

For households in urban areas, 100 were selected in two districts. Howrever,only 76 urban householdswere actually interviewed.For the control group, householdswere selected in eoual number and f'romthe same locality. The total sample thus was 554 households.The questionnairefor the household survey was pretested in two rounds.

The survey itself met with various

difficulties,but the data generated appear to be of reasonablygood quality. s.37 INorethan 70"O(in urban areas nearly 80) of the migrants were 20-35 years old. Nearly 6% of them were illiterate;one-third of them either completed or entered the primary level; another third either completedjunior or the secondary level of education.Althloughless than 10%oof the migrants were graduates,the proportionof total graduatesthat migrated appeared quite high. s.38 Before they migrated, nearly 29,-% of the migrants were either unemployed or students. Another 31'%were unskilled.The impact on domestic production thereforeappeared small in respect of nearly 60C'of the migrants. On the other hand, skilled wforkers,techniciansand professionalsconstituted 30,'• of the migrants. The costs associatedwith their migration can be quite sigcnificant, bo-th in terms of the impact on production and the costs of education and training. s.59 The occupational distribution of migrants when abroad revealed that a large number were workers for construction and infrastructure building, both skilled and unskilled. Skilled workers, technicians and pofessionals constituted a much hi,sher share (nearly 60') of workers. It is possible that they were able to find work abroad which will Crive them ,:-reater skills when returning, but also that in Bangladeshthey were unemployedor doing work for which they were overqualified;even then, however, they gflot better opportunities for preservingtheir skills.

viii

s.40 Almost 85h of mi-rants worked in five Middle East countries (UAE, Oman, Saudi Arabia, Qatar and I'uw-ait), of which UAE alone accounted for 44%.. Tost minrantshad Tnirrated only recently. Less than one-folrth were staying abroad more than tlo years. Only 505 of migrants relied exclusively on banks to remit money, while another 95 used banks alon w,.ith pri.-ate channels.As many as 35' relied exclusively on private channels (T'undi, wTgs). In 7O0J of urban cases using banks, remittancesreached the recipient channels in less than three weeks. -?emittance moneY through private arrived more quickly. s.41 The income of remittance-receiving householdswas quite high (on average, over Tk.5,000 in both rural and urban areas), rmuchhi-her than the top decile of the national income distribution.Remittances were the major source of income for most households (more than three-fourthsfor 625 of rural and 47> of urban households).It appears that most of the households from which workers migrated were in the middle or upper middle income groups. It is difficult to find workers migrating from the poorest or low income households. A preliminary hypothesis is that remittances

are helping householdsin the lower middle, middle and upper middle income groups to move upw-ardsin the income scale. In contrast,the poorer householdsdo not seem to have benefitedmuch from migration. s.42 The data from the household survey also indicate that remittancereceiving householdsdo not have a propensityto spend more on consumption their savinCs than their counterpartsin the control group. On the contrary, in both rural hi_her than those of the other households, were significantly and urban areas. For was a tendencynoticeablefor migrant families to spend relativelymore on luxury rather than essential -oods. -he only notable exceutionwas that migrant families did spend more than other that the mi.rant framilies households on some consumer durables. It is possible initiallyhad lower incomes than those in the control ;roup and that when their incomes rose due to remittances,they generally only caught up with the control group as far as their detailed consumptionexoenditurepattern is concerned. s.43

The miErant f[amiliesdid spend more on land and constructionof

houses compared to the other households. The same was true for spending on

improvementand repair of housing in rural areas (but not in urban ones). Direct questioning on the use of remittancemoney over a five-year tirre frame also revealed that alto-ether,nearly one half of remittanceswas A substantial part was also used for the repayment spent on land and housing. was invested in activitieslike agriculture, debts. Very little of earlier industry or business. It is clear, therefore, that remittancescontributed very little (at least directly) towards the creation of productive employment opportunities.

ix

IV.

Cost of Training of Migrants

s.44 As part of the research project, a study was icadeof the current anc caital cost of (a) training prospective miigrants and their replacements and (b) the employment exchange program. The selection of occupations and institutions wvas done by sampling-, startinfrom the 101' sample of migrants drawvn from the records of B,TT. In all, '0C occupations were identified, which were classified into five major occupajtional -;roups,viz. professional, technical, skilled, semiskilled and unskilled . 7stimated costs h:avebeen shown separately for the different institutions bclong;ing to a particular grouip.

s.45 In order to estimate total recurring cost, information was sought from various institutionson the number of studentsenrolled and those who finished their study,numberof teachersand their salary, amount spent on administrativeand surnortingstaff, etc. 'lodetermine the current cost of the employment exchangeprogram, infoinationwas obtainedon the cost of administrative staff, supporting staff, allowances and honoraria, etc. Capital cost was estimated on the basis of current market value of fixed assets. s.46 Recurring costs varied greatly among institutions.Generally, teclinical institutions incurred more costs than nontechnical institutions. The estimated cost of trainingagriculturalprofessionalgraduates turned out to be much higher than that of other groups, especially capital cost. Price of land is an importantfactor. The agriculturalcollege in Dacca has a lot of farmland; its value is much higher than that of the agricultural university in HIymensingh,the other agriculturalinstitutionsammpled. V. Effects of Labor Migration on Manning of Production and Service Establishmentsin Bangladesh s.47 Bangladeshperhaps does not stand to lose anything substantialon account of the migration of unskilled and semiskilledworkers, because the time and cost of training is small and they are easily replaced.The large majority of employers interviewed agreed with this position. In the case of export of educated and skilled manpower, it follows from interviews that migration abroad has had a disadvantageouseffect on the domestic economy (both throu,h resulting vacancies and appointment of less-qualified staff) in the following occupations:medical specialists,doctors and technicians;engineeringgraduates,techniciansand craftsmen:fibre technologists; and agricultural professionals.

s.48 To assess the prospects by 1983, two assumptions are made: a 50;J and a 100-I increaserespectivelyover the level of new job openin-swhich materializedduring 1973-78.Additionalsupply can be estimated vith a reasonabledegree of accuracyon the basis of present enrollments.A mixed picture emerges;in some occupational -roups,additionalgraduates are

x

expected to be forthcoming in sufficient numbers to prevent shortages, in others not. A complicating factor is that in numerous cases positions presently are filled by persons who are undercualified or have been trained for different occupations. These effectively block the entrance of newly trained persons into jobs for which they are fully qualified. VI.

Prospects for Manpower Export frqrmBangladesh to the Middle East

s.49 As a result of rapid development,more than half of the total labor force of the Arab countries is corlprisedof foreign workers.

s.50

The existing structure of the labor market in the IIiddle East is characterized by a widespread demand for a larZe variety of skills. In most countries, development has focussed primarily on the develoament of physical and social infrastructure. These activities mainly in-Lrolved construction,resulting in the demand for construction workers. A diversified demand for specialized skills and services is gradually being created in the health, educaticn and urban sectors. Because of the short,ae of basic infrastructure, the develo-ment of industries and agriculture has been rather slow. WTithin this broad pattern, sig,nificant differences exist among,^ individual countries. s.51 Some of the and importers. Labor Arab countries. The come from Europe and Yemen Arab Republic imported from India,

MIiddle gast countries are simultaneously labor ex-.Crters export is compensated by cheaper labor _72port from nonlargest proportion of specialize-d and skilled wo-kers America. Unskilled laborers come, by and large, from and Oman, while the majority of manual laborers arc PaListan and Bangladesh.

s.52 Information to estimate the magnitude and pattern of f'uturedemand for manoower in the MIiddle East is limited. A projection made for 1980-85 by a World Bank research group indicates that although constructior will remain the large.t sector for labor imported from outside the area, its relative importance will decline. In contrast, demand for expatriate labor in most parts of the-service sector, agriculture and manufacturing is expected to rise more rapidly, reflecting the trend towards greater diversification of the economies. Related to these developrments,the demand for labor with higher levels of skill is anticipated to increase propo_tionately more than that for sermi-skilled and unskilled workers. Altogether, the `orld Bank study projects a compounded growth rate in demand3 -or labor from outside the reg,ion of 7.5i> rer annum over the five-year per:od for the nine oil-exporting countries covered by the study. s.53 The share o-fBangladesh in labor irmported by the iMid'leEast is very Q7lo(about 2<' in 1977) and the potential exists for a substantial increase in labor migration from Bangladesh to the region, in both absolute and relative terms. 3angladesh was a late starter in manpower export promotion and its labor is probably among the cheapest to employ. It would be useful to make a study of comparative wage levels.

xi

The level of unemployment in Bangladesh is very high, also among s.54 graduates and post graduates in both general and science education. There is an acute shortage, however, of professionals, including doctors, electrical and mechanical engineers, and technicians like electrical foremen and overhead electricians. Needed, tletefore, are changes in the structure of training and education to better cater to existing needs and an expansion of training facilities for those skills which are in short supply. s.55 It has also to be recognized that the manpower market in the Middle East is highly competitive. A considerable part of the need in countries with labor shortages is covered by migration among countries within the Middle East itself. The developed countries also provide labor, especially for the more highly skilled positions. Bangladesh has moreover to compete with a large group of other Asian countries. The total share of Asian countries in migration to the Middle East has been rising strongly, from 18% in 1975 to 44% in 1977. s.56 The future success of Bangladesh in establishing itself as a labor exporter will also depend on quality control of the manpower provided and the creation of effective manpower export promotion policies, including the elimination of fraudulent practices. VII.

Social Cost-Benefit Analysis of Migration of Bangladeshi Nationals to the Middle East

The total increase in the number of migrants (flow of migrants) s.57 from Bangladesh to the Middle East during 1976-79, based on BMET records, was 69.1 thousand. The 24.5 thousand migrants in 1979 included in this total did not contribute to remittances during the whole year. It is assumed that new migrant workers start remitting with a lag of one month. This reduces the number of migrants during 1979 to an "effective" number (from the point of view of measuring remittances) of 11.3 thousand and the four-year total to 55.9 thousand (rounded to 56.0 thousand). This is based on the further assumption that illegal migration is compensated by returnees. A second estimate presented for the "effective" flow of migrants during the four-year period is 61.6 thousand; it assumes net migration to have been 10% higher than the official figure for gross migration. s.58 Similarly, two estimates are presented for 1976-79 for the breakdown of migration by categories of skill (profile of migrants). One is based on BMET data (macro data), the other on the special household survey undertaken for the migration study. The results are as follows (in percent): professional 5.6-4.7; sub-professional and technical 5.1-5.1; skilled 31.3-48.5; semi-skilled and unskilled 58.0-31.4; unemployed and unclassified 0.0-10.3.

xii

s.59 Remittances are defined as those sent through official financial channels plus Lhe direct import of goods thro-ugh the -ES. On this basis, first world Wide remittances are shown for 1974 (Sep-Dec)-1979 using the data Bank. The next s-tep is, to estimate remittances from the of Bangladesh 1Uiddle East only. Data directly available on this are not suitable because through the "Test. part of remittances from the HMiddle East are channeled Therefore, an indirect method is followed. The increase in worldwide remittances in 1976-79 is assumed to result entir~ely from new mligration of the increase was also due to higher to the Middle 2Mast.However, part earninns levels of those already abroad (worldwide) in 1976. This element is eliminated by use of the UIK wage index. After this correction, the average and monthly remittance per worker from the Middle 7.ast in 1979 w,as Tk.3,545 Tk.3,22M for the two "effective" flows of migrants mentioned above.

s .60

Another source of data on remittances is the household survey. ilThis gives for 1979 a monthly average of Ti 3,111. Estimates of actlual remittance are also cbecked a-ainst those for potential remittance (i.e. savings of migrants). Potential remittance is estimated at Tk.3,220 and T'k.3,020 (for low and high estimates respectively; tlceformer estimate probably is too lowr of a Dart of savings remitted through unofficial because of under-reportins channels). tfill estimates are comfortably close to each other. The gap between potential remittance and actual remittance is exl minedby (ii)unofficial remittance and (ii) retaining of part of savin-s by mi>rants. s.61 Both average and marf;inal savings rates are hi-nherfor remittancereceiving households than for other households (control group). cost of miCration is the loss of production s.62 The most important direct this loss of production Ileasuring of the loss of manpower. as a conseauence complexities. In case and empirical is fraught with a number of conceptual to the is generally assumed equal output foregone laborer, of an unskilled marginal product of labor in agriculture. 'or a skilled worker, the direct cost can be any one of the following three: marginal product of the emi-ratinworker, cost of training the replacement or nil. The relevant considerations are (i) whether training is on-Job or formal; (ii) whether training facilities are being developed in anticipation of futturedemand arising out of mi-ration and (iii) whether the market is supply-constrained or demand-constrained. ?or unskilled workers it is argued that mi-ration does not entail s.6 3 any loss of domestic production, irrespective of wfhether they come from rural Or urban areas. For semi-skilled workers the only relevant cost is the partial loss of output during the period of training. This is estimated at 50')(which they are paid in the Itrainingperiod) of regular pay. For skilled workers, because of the preponderance of on-job training, the cost of these workers is also equated with the cost of such training. Professionals and technicians are the only categories in short supply relative to demand, and they acquire skill mastly through formal training. A complicating factoT in estimating the cost of migration is long lags between changes in demand for and changes in production of professionals.

xiii

s.64 To analyze the distributional consequences of migration, income levels of migrants' families are needed both before and after migration. Income levels before migration are estimated by first estimating the incomes of migrants themselves (by different skill categories) and then applying a multiplication factor to arrive at income for the whole family. The results (at 1979 levels of earnings) are as follows: professionals - Tk. 2,645; sub-professionals and technicians - Tk.1,668; skilled - Tk. 977-1,445; semi- and unskilled - Tk.565-850. On the basis of data collected by Bangladesh Bank and the household survey, the following results are obtained for incomes of migrants' families after migration: professionals - Tk.20,500; sub-professionals and technicians Tk. 10,100; skilled - Tk. 5,200; semi- and unskilled Tk.4,000. There is probably some upward bias in the latter data.

-

s.65 Needed also is information on the average level of family income in the national economy. Two estimates are presented for 1978-79: Tk.888 per month (based on the household income-expenditure survey of Bangladesh Bureau of Statistics) and Tk.754 (based on national accounts). These two estimates are compatible, because the former values agricultural ouptut at retail prices and the latter at harvest prices. s.66 Furthermore, estimates are derived for the net increase in consumption of migrants' families resulting from remittances. The monthly increases (at 1979 levels of earnings) arrived at are the following: professionals - Tk. 5,740; sub-professionals and technicians - Tk.2,223; skilled - Tk.856; semi- and unskilled - Tk.636. It appears that about 60-70% of the net increase in income is saved by migrants' families. s.67 The cost-benefit analysis is made for one variant for each of four categories of workers. The present value of net benefits (based on a four-year stay, at 1979 prices) turns out to be as follows: semiskilled or unskilled worker - $5,340; skilled worker - $6,650; technical and sub-professional worker - $9,372; and professional - $17,295. VIII.

Policy Recommendations and Implications

s.68 Despite the rapid increase in migration to the Middle East since 1976, Bangladesh still occupies one of the lowest positions as a supplier of labor, and a strong effort will be needed to even maintain this low position. Equally urgent is the task of attending to the problems generated by the rapid outflow of workers. In the 1980's, competition will become more severe because of the Middle East preference for Far East countries and the emergence of China as a labor exporter. The question is not whether Bangladesh should allow migration, but whether it has the determination and capability to formulate and administer an appropriate migration policy.

xiV

s.69 The task involves, among other things: assessing demand abroad and supply of suitable manpower at home; training; manpower planning to cope with shortages at home; promotion abroad; procedures for quick recruiting; orientation of migrants; safeguards to ensure fair working conditions abroad; maximize remittances and their productive use; welfare measures for dependents; streamlinirg procedures to reduce malpractices; resettlement; defining the role of the public and private sectors in promoting and processing of overseas employment; and institute machinery to keep the situation under review. s.70 The rapid rise in migration in recent years resulted in part from a change in government attitude. But there were other contributing factors also, namely the efforts of earlier migrants to promote the employment of relations and friends, the desire of importing governments to diversify sources of supply, strong individual efforts and rising demand. s.71 Positive measures taker by the government after 1975 include, among' others, the posting of labor attaches abroad; creation of B'IET2as the central agency for labor export promotion; bilateral promotional agreements witil Iran, Iraq and Libya, and agency agreements with prominent foreign firms; sponsoring of promotional delegations; and effort aimed at improving procedures. espite these measures, many weaknesses in procedural arrangements have remained, relatin- to information available to job seekers, selection, recruitment, records, physical facilities, safe,guardsby foreign employers, guidelines on terms and conditions of foreign employment, etc. Also, corrupt practices of middlemen,private recruiters, fore--n emp:loyers and government officials, have remained wvidespread. s.72 Improvementsare necessary in the immediate future to relieve the harassment of intended migrants, the gap between popular expectation and realities, and the bottlenecks in processing prospective migrants. A long list of detailed measures is offered to accomplish these boals. Someof ther are: regular briefing sessions with the press; establisizent of procedures that are well-documented, announced and adhered to -igidly; subsidy to emoloyers for train ng replacements;establishmeentin 3hiT of a separate foreign employment section and offices for welfare activities and control of licensed rec-ruiters;and changes in the ,migraticn Act to combat malpractices. s.73 Improvements in institutional arrangements are needed for B11h]T and private agents. A.tpresent, agents identify only few vacancies of their o-n and workers are charged exorbi-ant fees. Instead, a fee ought to be charged only from the employer. B!'i-T should no longer be plagued by outside intervention in recruitment decisions. To decide whether the country can release mrsons in key occupations, 3I3Tishould systematically assess foreign demand, overall supply and specific supply in key occupations. In its placement work,3IJ.T should provide a minimum service to foreign employers, job seekers and private agents free of charge. It is desirable to have a balanced development of BKTI2r and agents. Agents should be reg-isteredfor full-time operation and be required to place major emphasis on identifyinne- vacancies abroad; a minimum annual cerformance requirement should be

xv

established.Registrationof temporaryagents should be allowed only to fill vacancies which come to Bangladesh in informal ways, namely from Bangladeshis already in the Middle East. s.74 As part of migration policy, Bangladesh should also explore the demand potential for labor in regions other than the Middle East; many possibilities exist. The number of Bangladeshis in the Middle East is very small comparedto that from other countries; probablynot more than 3%. s.75 The number of workers abroad is also small in relation to domestic employment in the modern sector. For 1978, it is estimated at less than 3% of 2.0 million finding employmentin that sector. There is, however, an adverse impact in the servicessector, including public utilities, and in special cases such as highly specializedworkers and occupationsrequiring substantialtraining.Also, migration in some instancesmay have affected the quality of the present work force. s.76 Health services appear to have sufferedfrom a substantialoutflow of doctors and nurses during 1976-79. Restrictionsthat were imposed have gradually reduced the outflow.Needed is better manpower planningin the health sector; this is needed regardless of migration as there is a relative shortage of doctors and nurses in the countryside. s.77 Among public utilities, the power-generating and distribution sectors may have suffered to a larger extent than other sectors like transport, telephone,telegraphand postal services.The problemsof the power sector are similar to those of the health sector. For all sectors mentioned,and public sector corporationsas well, the key problem appears to be inadequatemanpower planning, includingtimely replacement training. Without such trainingan effectivemigration policy cannot be sustained. In the case of drivers, clerical, hotel, catering and construction workers, new workers who replacedmigrants have been of lower quality. s.78 Foreign demand is largely limited to persons with several years experienceeven in unskilled categories.In the constructionand is informal, taking place manufacturing sectors, a large part of training on the job. Improved and expanded training facilities are needed here as well. The personality development of unskilled workers should be a major aim. To accomplishthese objectives,The National gouncil for Skill Development and Trainingmight set up training committees. s.79 Local wage increasesare another possibleadverse effect of foreign employment.In Bangladesh, however,wages in the public sector, which covers a large part of modern activities, are controlled.

xvi

s.80 Policymakersin Bangladeshhave suggesteda placement target for migration to the Middle East of 100,000 workers annually. This target is consideredunrealistic.Instead, an estimate is presented for the next five years (through 1985) of 218,000 or 43,600 annually.This estimate is based on the assumption that during the next five years recruitment in the Middle East of non-nationalswill be at the same level as in 1975, and that Bangladeshwill be able to secure 2O53of the vacancies in countrieswith which it has entered into bilateral agreementsand 1Cf in other countries.Much greater attention will have to be paid to the labor market of in particularSaudi Arabia and Libya. Establishmentof an organizationsimilar to the Korean DevelopmentCorporation (KODCO)which undertakes constructionwork in the Middle East and promotes private constructionfirms, may be considered.Adequate training will be a key to success. s.81 Remittancesfrom the PliddleEast are much below their potential. On the basis of certain assumptions it is calculatedthat during the first half of 1979 worldwide remittanceswere only 39% of savings, and remittances from the Middle East 31%. Even if actual savings of migrants would be only one half of those estimated,actual remittanceswould still be substantially below their potential.The monthly remittance performanceby country indicates a wide range, from 3466 for Saudi Arabia to $5 for Oman. Remittancesfrom Bahrain and UAE are also low, at S28 and 332 respectively. This suggests that in some countries,especiallyOman, Bangladeshis on their own have accepted very low-payingjobs. Other causes of low remittances from the Middle East include successfuldiversion of funds by middlemen and lack of proper banking facilities.Remittanceperformance could be improved by arranging for the transfer on pay-day of 75% of the salary in foreign exchange directly to the worker's foreign exchange account in Bangladesh. The appointment of banking attaches in the Middle East might also be considered. s.82 Use of remittancesfor productivepurposesis limited by the smallness of the amounts per worker and a lack of money market instrumentswhich provide yields higher than those in land and other real estate. Nevertheless, a number of possibilitiesexist (for example, repair, maintenanceand engineeringworkshops,restaurantsand trading stores).A financial organizationin the private sector may be consideredto finance such projects.

CHAPTER I

DEVELOPMENT OF MANPOJER EXPORT AND PROFILE OF MIGRANTS FROM BANGLADESH

A.

Introduotion

in 1978 w as estimated to be 85.4 million 1.1 The population of Bangladesh It was estimated that in at a rate of 2.5% per year. j and it is increasing steadily this would increase and that 1978 the labour force was 29.9 million There are no reliable during the next decade by 0.9 million per year. | statistics about the actual volume of unemployment in the country but based on a certain projection a rough estimate can be derived for 1977-78. Table 1l1:

PROJECTIONS OF POPULATION AND LIBOUR FORCE 1972-73 (Million)

to 1977-78

1977-78

1972-73 Population Labour Force

74o0 25.9

85.4

Agricultural Labour Force Employment Unemployment

19.8 12.5

22.8 15. K6 7.2

Non-agricultural Labour Force Employment+ Unemployment+ Total Employment Total Unemployment

29 9

7.5 6.1 5.2 0.9

7.1

17.7 8.2

21.v 8.1

6v2 0.9

+Estimated on the basis of 15% unemployment. Source:

Proceedings of the Consultative and Evaluative Work,hop on the Asian Regional Project for Employment Promotion, ILO, Bangkok, 12-13 December 1973.

From the Table it is seen that the 1977-78 estimate of total unemployment in the country is 8.1 million. According to a further estimate the educated unemployed is approximately 0.8 million in 1978. 3/

j

Projection on Population Increase:

j

Bangladesh Two Year Plan (I979-1980),

3

Estimate on Planning Commission Report, June 1974: for the Educated in Bangladesh.

Planning Commi-sion, October 1979. p.

33. Employment Market

1 .2

Major manpower problems in Bangladesh seem to be (a) huge unemployment and underemployment, (b) unemp-loyment among educated youth, (c) high rate of population growth and consesuent increase in the number of new entrants to labour force, (d) low capacity of the national economy to produce jobs to reduce the back-log and (e) failure of First Five Year Plan to create the 4.1 million jobs forecast. The unemployment situat on was gradually deteriorating, consequently the flow-of labour migration to the Middle East started almost automatically. 1.3 Results of different studies reveal that the Bangladesh labour market h_s some paradoxes. For example: (a)

According to a rough estimate, about 8.1 million people are unemployed; but a survey in the establishments employing 20 and more workers conducted by the Bureau of Manpow^ier, Employment & Training (BMET) shows that the country has over 50,000 posts 2 remaining vacant due to: (i) aovernment ban against filling the posts, (ii) delays in processing the vacancies by PSC/Ministry/Headquarter, etc., and (iii) non-availabili-ty of manpo-w-er. These vacancies belong -o all occupations, and. surprisingly the vacancies -which could not be filled dSue to non-availability of manpower include clerical and related posts as well. While some of the vacancies are of recent origin, some have been unfilled for a long time. While during the last three years about 6o,000 people I have migrated to the Middle Eas-t for a job, almost an equal numrber of mnfilledvacancies appear2 to have been existing within the country.

(b)

A sample survey was conducted by BP'ET to ascertain the employability of the qualified trainees of the Technical Training Centres of the BMET. It was found that 61% of the qualified T.T.C. trainees were unemployed for one year, 29% for two years and about 17%for three years and above. Another BMET survey dated December, 1977 revealed that 30% of the trained persons qualifying from different training institutes faced unemployment, 1,409 Diploma holders among them. On the other hand., BMET conducted still another survey, Training Need Assessment Survey, which indicated that a substantial training problem exists within the country. It has been estimated that the total training requiremen-. that the Technical Training Centres of the BIET will need to accommodate in the next five years appears to be 130,953 persons. This figure does not include additional training requirements that are likely to arise from development projects, from enterprises employing less than 20 workers in urban and rural

j

Estimate on the vacancy survey report 1979:

2

Monthly Progress Report up to July, 1979:

BNET.

BMET.

-

3

-

areas, from public sector corporations and from overseas employment. Another 59,946 persons will require up-grading training during the next five years. (c)

Ever since Bangladeshi workers have been migrating to the Middle East countries in a large number, academic circles and the ne,cspapers have been criticizing the flow, calling it a brain drain. Brain drain occurs :;henprofessional workers like engineers, doctors, scientists, economists, university teachers, etc. migrate to foreign countries. A study was undertaken by A.M.A.H. Siddiqui, Director General, BYET which shows that people in the professional occupations covered by two major categories, namely "Administrative, Managerial and related" and "Professional, Technical and related," yorkers are _rossly under-utilized within the country. It was observed from the study that 63.3% of the professionals were under-utilized and their talents were being wasted. This phenomenon of internal brain drain is suggested to be a more important problem than the external brain drain.

(d)

There is one more grave -eakness in the labour market; the country's education planning is not related to the recruitment needs of different employing establishments, resultin_ in a mismatch between the quality of the educated job-seekers and the job requirements of the labour market.

B.

Development of Migration, Related Organizations and Policies

1.4 This section provides a description of the historical development of the different processes of migration (and related organisation) at different times up to the present day, documents various measures undertaken and describe, the mode of migration and problems related to it. It is based on several interviews held with persons dealing with the subject and the documents prepared from time to time by the Ministry of Manpower Development and Social Welfare and the Bureau of Manpower, Employment and Training (BMET).

(i)

Development of Migration

Migration from British India 1.5 The Emigration Act of 1922 indicates that substantial migration was taking place from British India in the early period of this century. A study of the Act shows that the emigration was mostly of unskilled cate ories and such emigration was being -sponsoredthrough private sectors. The Act provided for licensing 'Passage Brokers,' the precursors of present day recruiting agento. The emirTation took place mostly by sea, in contrast to the present emigration by air.

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4

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1.6 It is not possible to estimate whether emigration of any significant size took place from the territories now comprising Bangladesh. It is believed that most of the emigration took place to build railroads and other projects in former British Colonies like Kenya, Tanzania, Uganda, Fiji Islands, Mauritiu , Malaysia, Trinidad and Tobago. Judging from the impressions of the ethnic compo
to

the

U.K.

1.7 As a Government policy, manpower export from Bangladesh on a large scale can be traced to the British Emigration Act introducin the system of issuing employment voucher, to overseas work people seeking employment in the U.K. The employment voucher system provided that anybody could apply for a job in the U.K. stating his qualifications and experience on a special application form supplied by the British Department of Employment through Employment Exchanges. These forms were kept in safe custody by the managers of the Employment Exchanges -who w>ould distr-bute them to the candidates applying for an employment voucher. These application forms had a special column for the managers of the dealing Employment Exchanges in Bangladesh to comment on the professional efficiency of the candidates and to authenticate she statement by putting signatures and office seals on the form. The forms so filled in :ould be sent back to the British Department of Employment which would make the final selection and issue employment vouchers or correspond directly with the candidates; other formalities like visas, etc. would then be automatic. 1.8 In the 1950s it was observed that the actual job offers were made mostly for the lowJer professions under the employment voucher system and a large number of labourers especially from the district of Sylhet emigrated to the U.K. In the 1960s the flow of emigration fell considerably and was restricted to a limited number of profess-onals and skilled workers. The processing of employment vouchers ultimately came to an end, and the Employment Exchanges of Bangladesh, which formerly handled the employment voucher cases, never dealt with any after independence. 1.9 The signing of an employment contract stipulating the rate of salary, period of contract, etc. was not a pre-requisite for an employment voucher. Besides, as the vouchers were issued directly to workers sta-istics on the number of such departures are not available. It is assumed that thousands of Bangladeshi nationals took this opportunity to go to the U.K. Most of these easy migrants obtained British citizenship by naturalization after 4 or 5 years sn the U.K., and, although they migrated as labourers, most of them have since switched over to various other professionof -which catering claims the maximum number.

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5

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Flow to the Middle East (period before 1972) 1.10 People originating from present day Bangladesh have been migrating to oil-rich Middle East countries for the last twenty years. Beginning in the early sixties small numbers, mostly from the district of Chittagong, migrated unofficially to Saudi Arabia and (satar. Some of thee people .rhohad been to Saudi Arabia during the early sixties managed to obtain Saudi nationality; they are no found in differert occupations, including self-o,ned small businesses, namely in Mecca snd Medina. Tho_e rho went to Qatar -re kno-wnto have found work mostly in Doha Port and Qatar Navigation Department. 1.11 The flow of unofficial migration had been gradually increasing. For a long time it was a common phenomenon that people tr_velling to Saudi Arabia with visit or Omra visas could manage to escape notice of the Saudi Immigration authorities and stay in the country. In due course they found employment and were allowed to stay on even without any work visa. In.pired by thi_ indulgence of the Saudi authorities, Bangladesh nationals began to migr_te to that country in an ever-increasing number, mostly .:iththe plea of performing Omra or Haj. As no Muslim can be denied the religious right of performing Omra, these Banglo.6-shi travellers could obtain temporary visafor 15 days at Jedda airport, thus entering the country. Then they looked for a job, most of them found one.

j

1.12 As the demand for manpower in the Middle East was increasing and aS the immigration rules continued to remain ineffective, Ban-ladesh nationals beg3n to travel to all the Arab countries by -xhateverchannels they could. After entering one country, the maximum number of people enterin throouah Jedda airport, and the others through Dubai and Abu Dhabi airports, they began to move to the other neighbouring countries. Some Bangladeshis even travelled to Europe and other countries to finally land on Arabian soil. *These people then scattered themselves all over the Middle East looking for jobs. It is apparent that mostly irregular means were adop-ed by these travellers. 1.13 Until the late sixties only a limited number of people from Bangladesh wverea-wareof the demand in the Middle East. Pakistan, India and certain other countries were, however, well acqfuainted with the need for manpower in the Middle East countries. The Arabian labour market recruited -orkers from India, Pakistan and many other countrie . By virtue of having the maximum number of !orkers there, Pakistan and India had a strong bargaining position in the Arabian countries. While this was the situation, a small number of Bangladeshi Dorkers, who made their entry to different Middle East countries through various unofficial channels, were available to the employers at cheaper rates. The Bangladeshis jere found to be hard-working, disciplined and more productive and this burned the attention of the Arabs to;ards Bangladesh. Followringthe e events Arabian employers be an to send their delegations to Bangladesh looking for .zrorkers. The matter then gradually drew the attention of the Government of the neJly independent Bangladesh. 1.14 The early migrants helped greatly in creating a market for Bangladeshi workers in the Middle East, and enhanced the flo-wof migration in mary ways.

9'

Omra is a pilgrimageoutside the season

of the Haj.

-

6-

Firstly, they took enormous trouble to reach the country of sheir demand and to find employment through their own efforts, -which set an example for those -wTho follo-wed. Secondly, they made their services available to the employers at lowrercost than that of the other workers. Thirdly, they pleased their employers by their manners and output wr-hichcreated an Jmage and made the employers feel confident about the Bangladeshi- workers. Fourthly, they maintained a link with their homeland and kome of them successfully negotiated deals rith their employers inviting them to recruit workers from Bangladesh. Initially the early migrants -were the only source which linked the Middle Eastern employers with the workcers in Bangladesh. The migrants made publicity to their employers about the manpower resources in Bangladesh and arranged to supply cheap labour either themselves or through their relations and friends at home. Flow to the Middle East (1972-75) 1.15 Quite fresuently unofficial delegations from the Middle East visited Bangladesh and recruited manpower, the highest number visiting Bangladesh during the period from 1972 to 1)75. It was only when these employers and their recruits fell prey to the cheats that interference of Government agencies in Bangladesh was necessary, The Bangladesh Government came to know about the rethem. cruiting teams and were convinced of the need to come for-wardto assist Some delegations were, however, compelled by the police to leave the country because of malpractice. 1 .15 Mostly the unofficial recruiting delegatians consi ted of certain categories of people, namely: (a) the employer himself, (b) his legal representative, (c) a representative of a foreign firm working in the Middle East, (d) a Bangladesh national in the Middle East, usually an old employee authorised by his employer to recruit Bangladeshi -rorkers,or (e) a labour supplier or agent, usually an Indian or Pakistani, -ho had a contract from an employer to supply -orkers. These delegates, like adventurers, mide recruitment drives in Bangladesh, and after recruiting the re:luired-workpeople, they carried their passports to India, Pakistan or any other co-antryto obtain visas. Until recently no Middle East countries had embassies in Bangladesh, so visas for the recruits had to be obtained from the recruiting countries' forei_n missions outside Bangladesh. Sometimes the delegates travelled to Thailand, Malaysia, Lebanon, U.K., etc. to obtain such visas because of the heavy demand for overseas jobs. 1.17 Unofficial recruitment for foreign employment soon led to corruption. Firstly, private individuals wTo -wereinstrumental in provicing a job or inviting employers began to realise illegal money from the current recruits as -,well as the prospective candidates aspiring for an overseas job. Secondly, visiting labour contractors began -o exploit the people by taking money and promising them a job; suite often these contractors escaped with the money and never care back. Thirdly, job-seekers were exposed to harassment and exploitation by unscrupulous people in the Immigratlionand Passport Departments, travel agencies, middlemen, etc. Fourthly, the terms and conditions of employment were one-sided, favouring the employers only. This ultimately led to strife between the employers and the employees.

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7

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1.18 Under these condition-, certain employers showed interest in recruiting throu ,h the Government of Bangladesh and sent their recruiting delegations to Government agencies, making previous contact -ith the Bangladesh ilissions abroad. The Government met their demands through the Employment Exchanges. The Policy of ManpoTer Export 1.19 Almost ,imultaneously the policies to encourage the emigration on one hand, and arrest malpractice middlemen on the other hand.

Government adop` mAdcertain Bangladesh of Bangladeshi -orkers to the Middle East and committed by the foreign delegations

(a)

In 1976 the M1inistry of Labour and Social Welfare published a booklet entitled "Profiles of Manpower Resources of Bangladesh" to introduce the different categories of skills that were available for export from Bangladesh. These booklets were circulated to the Middle East countries through the Bangladesh sissions abroad, and employers found them useful.

(b)

Through the Ministry of Foreign Affairs, the Ministry of Labour and Social Welfare req-uestedthe Bangladesh 7is-ions abroad to check, while issuing visas, on the purpose of foreigners visiting Ban ladesh, and to alert the Ministry of Labour beforehand by telex or by sending information in the diplomatic bag if any visits were related to manpower recruitment. The missions were also requested to furnish prior information to the Ministry of Labour and Social Welfare with as many details as possible about the requirements of the employers desiring to recruit Bangladeshi workers.

(c)

Employment Exchanges (then five in number, i.e. Dacca, Chittagong, Khuina, Rangpur and Sylhet) were asked to line up prospective c,ndidates seeking overseas employment.

(d)

Considering the fact that a number of middlemen were already in contact with foreign employers and that they had a substantial demand at hand, the Government recognised such middlemen by giving them Recruiting Licences in an effort to prevent undesirable persons from dealin with foreign vacancies. No rules of conduct were prescribed for the Recruiting Agents, although certain standards were laid dowrnfor appointing the Recruiting Agents: (i)

The Recruiting Agents should be prudent persons.

(ii)

They should possess demands for manpower at hand or have a link with prospective employers desiring to recruit manpovT;r from Bangladesh, and they should produce documentary evidence of this.

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8

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(iii)

They should no-4 charge any fee from the candidates applying for a job, but might realize commissions from the employers for recruiting people for them.

(iv)

They were recjuiredto deposit wsith the Ministry of Labour a security deposit of Tk. 5,000(now ralsed

to Tk. 50,0C0) to obtain a licence. In many cases, these standards were enforced. (e)

Persons proceeding to foreign employment through individual efforts continued to remain unrestricted.

1.20 The above Government policy of manpower export was, however, found inadeaouate, for the following reasons: (a)

The criteria for registration of job-seekers at the Employment Exchange were not ?ixed, and as a result hundreds and thousands of people were registered, including those possessing skills which were not wanted abroad. Employed people were also registered indiscriminately regardless of whether they might face difficulties in obtaining a release from their employers on being selected for foreign employment.

(b)

Due to flexible conditions, recruiting a ents gre-w1ike mushrooms and middlemen continued to exploit the prospective migrants in as many ways as they could.

(c)

The volume of Twfork in the Ministry increased beyond its capacity. In addition to policy-making, the M1in-itry took of public relations, protocol duty up the responsibility and matching candidates a;ainst jobs for -w;hich they were neither equipped nor had the required professional training and experience.

(d)

sNo definite policy was adopted for expeditious emigration clearance. The issuance of a passport would take as least three months time. Departure of finally selected candidates was entirely dependent on the wishes of the Immigration Officers. Due to inexperience and staff shortage in the Ministry, clarifications on even trifling matters became time consuming processes.

(e)

The migrants travelled mainly by air transport and both the employers and the recruits faced great difficulties in that the travel agents, instead of extending help, caused difficulties with a view to maximising their profit. Bangladesh Biman was sometimes helpful but they operated on a limited number of routes with a small number of flights.

-

(ii)

9-

Organisation of Migration to the Middle East

1.21 In underdeveloped and developing countries generally the institutions for manpowrer development and employment promotion are not properly organised. The task of manpower development and employment promotion in Bangladesh suffered greatly under Pakistani rule, and an organisation for implementing the manpower policy in Bangladesh was conspicuous by its absence. However, a small Manpower and Employment Wing in the East Pakistan Directorate of Labour looked after the tasks of manpower development and employment promotion. It was too much to expect from the Directorate of Labour whose main preoccupation ',aswith industrial relations and labour grelfare. After independence, therefore, the Government decided to make up for the years of neglect by creating an independent organisation under the Ministry .o deal ith Manpower, Employ. ment and Training matters. The Bureau

of Manpower,

Employment

and Training

1.22 The Bureau of Manpower, Employment and Tr-ining (BMET) was created by splitting the Manpower and Employment Wing of the Directorate of Labour. The Bureau was given the functions of Manpower Development and Employment Promotion while it was also made responsible for the task of exporting manpower to the Middle East and other countries. Although the Bureau of Manpower is now better kno-wnto the people for exporting manpower, the Bureau still has more important functions to fulfil; manpower export constitutes barely 1 % of its overall activities. These activities are enumerated below: (a)

The Bureau of Manpower, Employment and Training runs a training programme with a Marine Diesel Training Centre at Narayang nj, offering diploma and certificate level courses; and four Gechnical Training Centres (two in Dacca, and one each in Chittagon and Rajshahi) all offering craft level certificate cour es in different trades. Eight more training centres are being constructed.

(b)

An Apprenticeship Trainin_ Programme is located in employing establishments with three administrative offices ut Dacca, Chittagong and Khulna.

(c)

An Employment Counselling and Placement Service in nine Employment Exchanges serves Dacca, Chittagong, Khulna, Rangpur, Sylhet, RajThahi, Barisal, Noakhali and Mymensingh and has three more branch offices at Narayanganj, Dinajpur and Bogra.

(d)

A Vocational Guidance and Career Planning Service has four offices at Dacca, RBjshahi, Khulna and Chittagong.

(e)

The Bureau has a Self-Employment king for assisting educated and trained manpower to enter self-employment.

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(f)

10

-

A Labour Market Information Wing collects and disseminates employment and unemployment data on a regular basis to support the foregoing programmes.

New Elements in the Manpower Export policy 1.23 Bangladesh has not yet developed a comprehensive lManpowerExport Policy; but rules of business are available in different Government orders, directives and circulars. Con-tinuous experiments are going on and the Government has brouaght new inputs into the policy every now and then. By the time the Bureau of Manpower -Tas established the Government had already gained some experience in the manpower export business, and by establishing the Bureau the (Tovernment improved the institutional arrangements to promote employment of Bangladeshis abroad on a selective basis:

/

2

(a)

For the first time the Government realised the need for manpower export to earn foreign exchange on one hand and relieve the pressure of unemployment in the domestic labour market on the other hand; it decided to offer recruitment opportunities for foreign employment to persons with requisite qualificatio:as and experience only.

(b)

The Bureau of Manpower, Employment and Training was made responsible for processing all demands from foreign employers except for recruitment of seamen j and appointments in international organizations. j By this process Bangladeshis seeking employment abroad through any recruiting medium would require clearance from BMET.

(c)

All the Ministries -,,;ere requested to encourage the Government policy of manpower export and prepare a list of surplus manpower in each Ministry and to send these lists to the Bureau of Manpower for referral to overseas vacancies.

(d)

All Employment Exchanges opened a Foreign Employment Cell and systematically started to register the names of overseas jobseekers -w,Tho either (i) had technical qualifications or were construction workers or caterers, or (ii) had three years working experience in their respective trades. Employed persons were required to produce "no objection" certificates from their employers, while unemployed persons were to produce a certificate from gazetted officers confirming their unemployment status. The applications thus received by the 3mployment Exchanges were to be sent to the BMET periodically for recording and referral. A registration fee of Tk. 10 was charged from each foreign employment application at the Employment Exchange.

The recruitment of seamen is the responsibility of the Directorate of Shipping. The Establishment Division of the Ministry of Cabinet Affairs is responsible for recruitment to International Organisationo.

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11

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Four more Employment Exchanges and two branches were opened at Barisal, Mymensingh, loakhali, Rajshahi, Bogra and Dinajpur under a development project approved in 1977 for the promotion of foreign employment. (e)

BMET compiled a MajsterRegister wherein they collected and recorded the particulars of overseas job-seekers applying through the surplus lists of the different Mini-tries and the registration channel of the Employment Exc:anges. This compilation is a continuous process; EMET was given additional staff to cope with the additional work load.

(f)

The Government re uested the Immigration authorities to simplify the immigration clearance procedures and to issue passports pendin verification of character and antecedents of the candidates who were recommended by BNvETas finally selected for overseas employment.

Different Channels of Recrufiment The channels of recruitment continued to be mainly:

1.X4 (a)

BMTETas the sole Government Agency.

(b)

Licenced Recruiting Agents/Passage Brokers.

(c)

Private parties securing ad hoc permission for recruiltment.

(d)

Individual effort, i.e. persons obtaining jobs through relations and friends already in the Middle East.

(e)

Foreign rnissions in Bangladesh.

(f)

Bangladeshi firms securing contr-.ctsfor work in the Middle East.

1.25 The recruitment practiceL in the country for processin the demand from foreign employers by the different recruiting media are as follows: (a)

BL'ET. This medium which claims 34% of total requirements, has the following recruitment practices: (i)

Details of manpower required by the employers showing the occupation, vacancies in each occupation, educational qualifications and salary offered are communicated to the Director C-eneral of BMET directly or through the nearest Bangladesh Embassy.

-

(b)

12

-

(ii)

BMET lines up candidates and informs the employers visitin, Bangladesh to conduct interviews and tests, arrangements for which are made by BITET. The employers bear the travel cost, hotel and other expenses.

(iii)

On selection by the employer a contract approved by BMET is recuired to be signed with each selected employee stating terms and conditions.

(iv)

Medical tests and passports for persons signing contracts are arranged.by BIET at the expense of the candidates.

(v)

On receipt of visa and passage instructions IMET obtains a visa from the local embassy of the co-ntry concerned and arranges the departure of the selected. persons.

(vi)

The employer is no, required to pay any fee to BIET for the services rendered.

Private Recruiting Agents/Passage Brokers. This medium claims $ of the total recruitment. The recruitin0 agents Pre private parties authorised by the Government to recruit personnel for overseas employment against vacancies crocured by themselves through their o xn efforts. The agents are not allowed.to process vacancies reported by the employers to the Government. The agents are supposed to make direct contact and ne,otiate with the employers either by correspondence or by personal visit at their o-rnexpense in order to procure vacancies. The documentary evidence of offers received by the agents are to be produced before the Bangl-desh Mission in the country concerned for examination of genuineness as well as the terms and conditions of offer, which should be at least the minimum of that country. The attested documents are then carried to the Director General of BVET who gives permission to the agents to recruit the required personnel from among the candidates already registered with the EmploymerLtExchanges. Althou-t this _s the usual practice insisted upon by the G-overnment quite often the agents recruit unregistered candidates without prior permission and call on DuET for clearance after completion of the whole process of recruitment. The agents do not officially charge any fee from the candidates but they receive a commission from the employers for the services rendered. The amount of the commission is negotiated and varies from US$70 to over US$100 per candidate. The agents are requ-red to give a lump sum of Tk. 50OOO as a deposit (previously this was Tk. 5,000) to the Government as a guarantee for good conduct while seeking a reoruitin:' licence. The security

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13

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depocit is refundable, but may be forfeitted in the case of proved mir-iconduct.Two hu-ndred seventy-one recruiting agents are in the field now, most of them in Dacca, Chlittagongand Sylhet. Of them, barely 10% have obtained demands more than once, while the majority of the other agents have never dealt with any genuine demands. Big employers, as a matter of cour:e, have be-dterkaiowledge of the world labour market, and of necessity move around the ,lobe to distant countries in an attempt to hire labour. They draw up their labour recruiting policies in a planned way and generally make contacts with C-overnmentsof the labour supplying countries. Small employers who might need a quick supply of labour in limited numbers may not have the mean/ to do this. They generally wait for the middlemen to contact them and find it economic to recruit persmonnelthrough these middlemen on payment of a commission for the recruiting services. Government-licenced recruiting agents were expected to meet the demands of these small employers who would otherwise have not recruited from Bangladesh. The bulk of Middle Eastern employment is generated from these small employer,, -butBangladeshi agents have not been able to tap this source properly as yet. (c)

Private Parties, Even private parties without recruiting licences are allowed to recruit if they have obtained a genuine demand, in the same manner as in bhe ca!:e of an agent. Ho-,ever, an agent has an advantage over a private party inasmuch as the former has had a Government licence which serves as identification as well as an introduction to the employers.

(d)

Individual Efforts. As already discussed, overseas employment commenced through indivLdual effort and individual effort still claims over 57% of the total recruitment. These offers of employment are procured by the job-seekers themselves through their friends and relations already in the Middle East. Apparently, the people already working in the Middle East collect the passport numbers, etc. of the interested persons and somehow convince their employero to recruit such persons in absentia. The employers then arrange for the visa instructions to be issued to their respective embassies in Bangladesh with a copy sent directly to the persons concerned in Ban ladesh, who then approach BMET seeking clearance. Individual efforts are al:o made by organised, unlicenced middlemen to secure offers of employment on a large scale. Genuineness of these offers is automatically verified in the embassies while issuin visas. Recruitment offers are sometimes made for groups indicating the names of occupations and the number of recruits required, keeping open the authority for recruitment. This method of recruitment ic, however, very rare these days.

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14

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For the purpose of statistics, individual efforts include private parties dealing ,ith vacancies as in (c) above. (e)

Foreign Missions in Bangladesh. Generally the Ambassadors and other officials of the foreign missions in Bangladesh send requests to BTIET for the emigration of their Bangladeshi domestic servants to their homeland. Personal attachment as well as the need of the employers contribute to recruitment, but this forms a negligible percentage of the total emigration. Recently, ho.Tever, certain embassies in Bangladesh have entered into direct recruitment of all kinds of manpower on several occasions by advertising the vacancies themselves. These activities of the foreign embassies -,erehighly irregular, but the Bangladesh Government allowed it under pressure of the circumstances. The concerned embassies, however, explained these activiWies as arising from their lack of confidence in BMET's abil-ty to ensure a fair selection of candidates.

(f)

Banglade h Firms Abroad. There are now; about a,dozen Bangladeshi firms working in different Middle East countries. Libya has nine Bangladeshi firms operating there, Abu Dhabi two and Iraq one; al are construction firms. Only one fiin has a direct contract to work in Abu Dh--bi and it has been working there since 1975; the others are sub-contractors under foreign firms and they have entered into agreements very recently. Four firms out of the nine in Libya have formed a consortium to install a power house; all the other firms in the three countries are engaged in civil construction work. In all they have so far been responsible for the emigration of 3,600 Bangladeshi workers.

Terms of Recruitment 1.26 With a few exceptions during the initial days, corkers are migrating purely on fixed-term contracts. The salary and other service conditions of the migrants are negotiable. The follo-ing standards, however, form the basis for negotiation:

-

(a)

(b)

Salary

and

15

-

wage rates: Salary in Bangladesh

Salary expected abroad

(i)

Professional categories (3 years experience a minimum requirement)

US$100 to US$260 -with subsidised accommodation, medical treatment and transport

US$800 to US$1,500 plus free accommodation

(ii)

Skilled workers (3 years experience a minimum requirement)

US$50 to US$1 0 plus 10%,for accommodation and food

US$400 to US$700 plua free accommodation and food

(iii)

Unskilled worker(3 years experience a minimum requirement)

US$30 to US$50 plus 10% for _ccommoda-

US$150 to US$300 plus free accommodation and food

Travel expenses: Economy class airfare from Bangladesh to the -iorksite to be paid by the employing company.

(c)

Mode of payment. Payment is generally m de to the employees directly by the employer at the work site, preferably on a monthly basi<.

(d)

Working conditions expected abroad. Eight hour working day, -withovertime at the rate of 150%. Paid holidays in accordance with labour laws of the country of employment.

(e)

Payment of salary to Bangladesh. Each worker is under an obligation to remit 25%oof his salary to Bangladesh. This is difficult to enforce since the employer is not required to pay any part of the salary directly to Bangladesh.

(f)

Income tax and abroad.

other

regulations

regarding

Bangladesh

Nationals

working

There is no obligation on the part of the foreign employer to arrange for the payment of tzixes due by the Bangladeshi employees for income earned abroad. The employers' obligation is limited to the payment of salaries and ensuring the conditions of work mentioned in the contract.

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16

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Characteristics of Migrants 1 .-27 As per the records of BMET, 58,073 persons have so far migrated to different Middle East countries on contract employment cp to April 1979. Out of these 61% have contracts for one year, 35% for t-wo years, and 4v/ofor three years or more. Out of the total mirn]ants 72.3% are construction workers, both skilled and unskilled, while 8.7% belong to professional and technical occup_tions. In all migrants have 319 different occupations. 83.4% are below matriculation level of education, 2.25% are post-graduaatesand 0.35j% are specialists. The foreian exchange earned until Apr,l 1979 amounted to million. The following Table will show the percentage breakdown Tk. 3,937.2 of the total migrants recruited through different media: Table 1.2:

SOURCE OF LABOUR MIGRATION FROM BANT-LADEUF

% of the

To April Meedia

1976

1977

BURET

5,279

5,729 1,171 8,325

RecruitingAgent IndividualEffort Total

442

366 6,067

15,725

1978 6,162 1,552 15,095 29,80

1979

Total

Total

2,796 1,561 9,095

19,966 4,726 33,381

34% 3/D 5&go

13,452

5,MJ073

105%

(iii) Major AdministrativeProblems

1.28 BJET is headed by a Director General (D.G.). 2n intervie-wT with the D.^. revealed that he has a very high degree of job satisfaction,but i.:extremely worried that, although the processingof all foreign employmentcases was his responsibility,85% of this remains beyond his control. For example: (a) BMET needs four times more space than it has to accommodate the office. (b)

BIET, if recuested,must arrange other locations in-which foreign employers can conduct interviewsand test candidates;not an easy tas:a.

(c) BUREThMs no control over passports,immigrationclearance and relea-e of serving personnel; selected candidate_have quite often been found to have been harrassed unnecessartlyon these accounts. (d) Flight difficulty of the emigrantsis perhaps the worst; direct flight connections are not available with most of the ILddle East countries,special flight arrangements,landing permission, booking, etc. are managed by the Bureau at the employers'request. Even -ithin BUET the D.G. has limited control of his own staff; he has responsibilitybut inadequatepower to balance it,

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1.29 A large number of posts in BMET are vacant. The nature of functions in the Bureau calls for professional skill, but the Bureau has a mixed staffing as shown in the following Table which covers only the officer posts in the headquarters. This Table was compiled in October 1979. Table

Name of Post

1.3:

Posts Available

POSTS AVAILABLE KND FILLED IN B}ET IN 1979 AdministraDepartmental tive Cadre Officers in Officers Posts Filling Posts

Posts

Vacant

Date From Which Vacancies Have Existed

1

-

-

1

24-7-1979

5

1

3+

1

16- -1978

Joint Director Deputy Director Asstt. Director

1 11

1

-

4

19

4

4 4

3 11

1-1 :-1977 1-12-1977

Total

37

10

11

16

Director

General

Director

+±TwoDirectors

are

retired

Army Captains

appointed

on a contract

basis.

1.30 The public relations section of BuET is very weak. There s a wide communication gap with the public. As a result, people have misconceptions about the Bureau's activities. Establishment of the proposed network of District Manpower Offices in all district Headquarters with foreign employmen-c promotion as one of the functions of these offices would improve the situation. Quality of registration of foreign job-seekers at the Employment Exchan_e is very poor and the system of reception is faulty. The Employment Exchange at Dacca has as many as seven officers, all of -hom occupy a post, but only one Asstt. Manager is assigned to do the registration of all foreign job-seekers, including the highly qualif-ed professional, the technical hands and the labour. The different types of registrants ouCht to be dealt with by different officers in separate sections within -the office. 1.31 The Master Register of forei_n employment seekers maintained by BEET is in very bad shape. As a rule, the registration forms of the job-seekers should be kept in the Master Re ister in proper order, i.e. tradewise and within trade serially. Referral against vacancies should be made according to seniority in registration as well as fitnes-s. But the registration records of BIET are not in proper order. People often complain to the Bureau about wrong matchin;: and -himsical referral. A disorderly Master Register and lack of matching system leads to corruption in the Bureau. 1.32 Only the section dealing with individual migrants and Recruiting Agents has been maintaining a register to record the names of the migrants, including certain details. The registr-tion, however, is incomplete. The other sections do not maintain such a re-ister; instead they maintain departure lists of the candidates scattered in hundreds of files. While collectin . the 1031o sample for this study, quite a large number of these files were not available and full particulars were lacking in most of the available files. This state

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18

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of affairs bwill lead to serious problems. The Research Section of BICT, however, maintains the tradewise number of emigrants and prepares a monthly progress report, the usual function of the Re earch Section being the collection of labour market and employment data. 1.33 It is an open secret that the Recruiting Agents realize money from the job-seekers although such practices are unlawful and punishable. This has been occurring because the general public has no clear idea about the procedure of dealing with foreign vacancies by the Recruiting Agents. Even some of the Agents have no ideas about their own responsibility. The wrong idea is tha-. the Agents are given a share of vacancies received in BEET. The general public is often mis-ledby this notion and fall prey to unscrupulous Recruiting Agents who charge money on the false plea of giving jobs even when they do not have vacancies. Unscrupulous passage brokers receive money from the prospective mi&,rants in many ways; they of-tenselect more candidates than are required for the available vacancies and collect money from all of them.

(iv)

Policy Suggestions

Need for a Master Plan

1.34 One of the largest manpower exporters is India which does not seem to have an abundant supply of skill even though they are exporting manpower. Similar countries are Pakistan, Philippines, Turkey, South Korea and Thailand. Export of manpo :er is periodically curtailed, e.>. Turkey is no longer exporting labour on a large scale. Turkey is known to have gained by transfer of technology on accouns of returned migrants. The Government of Banglade'h is, hoeever, determined to stimulate emigration of Bangladeshi nationals in an ever-increasing. number. This sug ests the need for a MaI-:ter Plan which should include the following: (a)

Revision of the Emigration Act of 1922. Bangladesh has inherited an emigration policy as envisaged in the Emigration Act of 1922. The provisions of the Act have not been updated, and they do not meet the present requirements. Times are different now, and so is the nature of migration. The definitions of "skilled work" and "unskilled work" as Jtipulated in Article 2 of Chapter 1 of the Act are inadequaue. The intention of providin two separate rules for "Emigration for the purpose of skilled work" (Article 9, Chapter III) and "Emigration for the purpose of unskilled work (Article 15, Chapter IV) is not clear. These two rules are not fundamentally different and separate rules are not necessary. Articles 16 to 18 of Chapter IV dealing with the application for permission and clearance of migrants are restrictive in nature and the provision; thereunder are too stiff. Application of these rules will create emigration difficulties instead of simplifying the procedure. "Fines" and "'PunizLments"l are minimal, only provided under Articles 25, :26 and '7 of Chapter VI. The Act is not comprehensive, the entire frame of it should be revised and updated.

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(b)

19

-

Manpower Export Authority. BMET has some impor-tantfunctions to perform, i.e. training guidance, employment creation and placement. These have been overshadowed and the progress of work has been retarded by at least fifty percent due to the pressure of manpower export functions. The nature of the work involved in processing foreign vacancie- is such that any other functions existing simultaneously with it will have to suffer. It hat been argued that an organisation of manpower export need- a commerci l outlook and the means to easily finance its programmes. Setting up of a Manpower Export Authority (Corporation) is, therefore, under consideration by the Government. But in view of the sad experience of certain other public sector corporations, a note of warning may be in order that the proposed Manpower Export Authority must be a small office manned at supervisory levels by people havin training and experience (if possible) in placement work. Failure to develop a Master Register and matchin; system in BMET should not recur in the Employment Authority. A similar organisation named Overseas Development Board (OEDB) exists in the Philippines. The Philippines OECB has embarked on a series of projects aimed at enhancing the comparative advantage of the Philippines in the export of manpower:

(c)

(i)

Careful selection of Philippine workers; maintenance of a pool of pre-selected rorkers (a Master Re-ister).

(ii)

Expansion of OEDB services.to upgrade the :uality of manpower export.

(iii)

Organisation of work teams for seas on a Government-to-Government

(iv)

Expan

Recruiting

.ion

Agents

of the

Regional

and Individual

package employment agreement.

Recruitment

over-

Scheme.

Efforts.

Studies revealed that individual efforts represented over 57% of the total recruitment, while all other areas were responsible for less than 43% recruitment, including Recruiting Agjents for E%. Therefore, any restriction on individual efforts will drastically cut the flow of migration. No obstacle should be allowed to create difficulties for individual efforts to export manpower. (d)

Employment Promotion and Institutional Back-up. A manpower export policy cannot be taken up in isolation without fitting it within the general economic framework of the country, so that it may be integrated with the general employment promotion effort. It is worthwhile to examine a developed country.

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20

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The Federal Republic of Germany solved her acute post-war unemployment problem with an efficient Employment Promotion Act and the machinery and institutional support to implement the Act. Based on -,hisprinciple, Germany has a network of employment offices both inside and outside the country (the employment offices which the Federal Employment Service of Germany formerly mailntained in various foreign countries have now been provisionally closed, except in Italy). The employment office network covers the following major functions:

(±)

Placement.

(ii)

Vocational guidance.

(iii)

Promotion of vocational training through formv.lcourses and apprenticeship training.

(iv)

Industrial and vocational rehabilitation of "he handicapped.

(v)

Employment promotion schemes to create and maintain employment opportunities.

(vi)

Labour Market Information. As provided under the German Employment Promotion Act this is the first and indi,pensable function of the Employment Office network. The provision of information on how the labour market is developing, statistical data on employment, unemployment vacancies and causes and trends of the labour market changes are all required to make decivions -w-hich will have economic or structural repercussions.

(vii)

Overseas employment promotion. The employment offices abroad were responsible for placement of foreign applicants in Germany.

The Bangladesh Government has a similar plan to establish an employment office network with an office at each District Headquarters. The plan for a Manpower Export Authority proposed the establishment of four regional offices in different Middle East countries. Both these plans are under consideration. The employment office network, for Bangladesh is being considered in India, Japan, Australia, Malaysia, Solomon Islands, New Zealand, the Philippines and other countries. (e)

Employment Research Institute. The Bangladesh Government has recently been thinking of an Employment Research Institute. Institutions like the Bangladesh Institute of Economic Research, National Foundation for Human Resources Development are meant to carry out research in a broader

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21

-

spectrum covering human resources, development in general. Alhat is needed is an Institute to carry out research on matters of research programmes will be interest. Action-oriented immediate in this hnstitute to promote the overseas employment conducted market for the Bangladeshi workers. The Government' ambition to Middle East coiuntries during is to supply ane million workers to draw the Institute This will require the next five years. to number of people to train a suitable up action programmes meet the demands of the domestic labour market as well as to collect specific overseas demands and meet the same. The a very that institute has not yet taken shape, but it appears for it. To make its contemplated difficult task is being will re.uire baseline programme a success the Institute statistical data, on manpower in relation to all other manpo*,ier promotion programmes of the Governdevelopment and employment ment. However, the Institute will require a network of offices throughout the country immediately for the supply and flow1of information that it might require. The proposed District Manpower Offices, as indicated earlier, seem to be a solution problem. The Institute will also have to depend on to this of the Manpower Export Authority in the offices the regional Middle East to collect information about the overseas labour on be dependent will largely demand. Clearly the Institute Manpower Offices, schemes of (i) District these two proposed iithout in the Middle East. Manpoler Offices and (ii) Regional to offices an Employment Research Institute wll1 fail these meet the desired objectives. The Government and BMET has a the country and plan for promotion of self-employment within workers. The plan might employment abroad for Banglade-hi need to be involved with the proposed Employment Research Institute (ERI). In the long run the ERI may train the professional manpo er officers if the Government so desires, It is apparent that manpower matters are a burning subject which sl,ouldreceive priority attention as a matter of necessity. This calls for the services of an efficient team of manpower officers. A sizeable number of qualified social scientists are already working in the manposer field. In the Bureau of Manpower, Employment and Training alone there are over 126 manpower officers having gazetted status. To raise their efficiency and standard of service it is necessary for a cadre of Bangladesh Manpower Services to be created and the officers within the cadre to be thoroughly trained. Creation of a cadre will attract be-tter people to join the service, which i very much needed. (f)

Brain Drain Reversal. This is not a new idea, as it has been successfully implemented by UNDP in Turkey. The plan i, called the Brain Drain Reversal Scheme. The UNDP Resident Representative in Turkey reported that "Seldom before in the history of the United Nations has so much been accomplished w th so little." The

-

22

-

scheme is aimed at inviting the expatriate Turkish nationals back home to give short consultancy services in the required fields. The principle was to ask an expatriate Turkish professional who had attained success in his field abroad to make a short intensive visit to a Turkish institution where his knowledge could be of use. A similar scheme may be drawn up and the opportunities may be created for the Bangladeshi scientists, technologists and other professionals to repatriate and reverse the brain drain. (g)

Utilization

of Remittances.

Of late, migrants have been urging the Government to find ways to better utilize their remittances. A group of Bangladeshi engineers and doctors working in Malaysia made this request to an officer of BMET. They thought that such a scheme would encourage the inward flow of remittances; people who were otherwise keeping their overseas earnings in foreign banks would send their money back to Bangladesh. C.

Manpower Training and Supply in Bangladesh

1.35 It is estimated that the literacy rate is ab6ut 35% and the labour participation ratio is 36%. The different levels of education are Primary (five years), Secondary (five years), Higher Secondary (two years), Degree (two years), and Post Graduate (two years). The country had about 40,313 Primary schools in 1976. This number has been increasing. During the same year there were 9,299 Secondary and Higher Secondary schools, 338 Degree Colleges and six Universities. Total enrolment in these institutions is approximately 10,036,213. Every year over 100,000 students pass the Secondary level examination, over 49,000 the Higher Secondary level examination and over 20,000 Degree and Post Graduate examinations. A large number of people enter the labour market from all levels. 1.36 The technical literacy in Bangladesh is considerable. The country has two technical Universities (Engineering and Agriculture), three Engineering Colleges, nine Medical Colleges including a Post Graduate Medical Institute, 35 Vocational Training Institu-tes, 17 Polytechnic Institutes, and 13 Technical Training Centres including one Marine Training Institute. These institutes provide all essential professional, technical and skilled trade training courses which have current demands. Besides, trade training is given through Apprenticeship Training Programmes of the Government, and still more is given through in-plant and on-the-job training in industries. Annual intake capacity of certain professional, technical and skilled training institutions are as follows:

-

Table 1.4:

23

-

INSTITUTIONAL BREAKDOTWTN WITH ENROLMENTIN BANGLADESH Enrolments (1975-76)

Institutions Universities Engineering Colleges Medical Colleges Agricultural College Nursing Institutes Para-medical Institutes Palli Chikitsak Law Arts and Crafts Home Economics Social Science

3,180 2,160 1,300 372 1,200 7,000 2,500

8,721

Sub-total

26,433

Polytechnic Institutes

13,520

Graphic Institute Textile Institute Leather Technology Institute Survey Institute Glass and Ceramic Institite Commercial Institute Vocational Training Institute Technical Teacher Training Sub-total Technical Training Centres Crash Training Programme of BMET Apprenticeship Training

4,oo8

1,980 150 19,658 5,o64 (in 1980) 8,000 5,000

Sub-total

18,0o64

Ministry of Youth Agro-based Industrial Training Formal Trade Training

4o,Qooo 10,000

Sub-total

50,000

Total

114 ,155

-

24

-

In addition to these training facilities, different Ministries, Departments and Corporations have their own training arrangements, detailed information of which was not available for this study. 1.37 A very large number cf new Private Training Institutes have also grown in different places within the country. Reliable statistics are not available at this moment for all these training organisations. However, according to a survey conducted by BIMETin 1977, it was found that over 565 professional, technical and vocational training institutes were operating in the country with enrolment capacities of 102,106 persons and an annual output of over 55,930 trained personnel. The survey covered Government, semi-Government and Private institutes. The training base has been further increased during the recent years and massive training programmes have been undertaken by both the Government and private enterprises. BMdETsurvey results of 1977 may be seen below: (a)

(b)

Number of Professional, Technical and Vocational Institutes Government Semi-Government Private

241

Total

565

68 256

Categories of Institutions Technical Institutions Professional and Related Commercial Institutes Apprenticeship Training Others not Classified

145 Establishments

(d)

Number

46 565

Total (c)

123 216 35

of Courses

Offered

57

Degree Level and Above Diploma Level Certificate Level

33 109

Total

199

Number of Studerts Number of Qualified

Admitted Trainees

102,106 55,930

1.38 The Government has been paying more and more attention to technical training because of three reasons. Firstly, it has been recognised that rural development is the key for economic development in Bangladesh; so a formal sector has to be developed in the rural areas by giving extensive trairirg. As such a Training and Development Centre has been established in each of the 470 police stations throughout the country. Secondly, the econory of the country needs to be transformed toward industrialisation very quickly. In 1976 there were 2,560 factories producing some 304,880 selected industrial items. HNewindustries have

-

25

-

been coming up, and attention has been paid to establishing numerous agro-based industries in different regions including a Rural Development Academy in Comilla which has been generating ideas for model projects. Thirdly, manpower export to Middle Eastern and African countries has inspired technical training. The aim is to raise a large contingent of professional, technical and skilled personnel to meet the requirement within the country and to help these other countries meet their labour shortage. 1.39

Types of manpower available. (a)

All types of Engineering Manpower. Bangladesh produces 600 graduate engineers annually from facilities for post-graduate training leading to a Ph.D. in Engineering. The annual production of engineering technicians is in the thousands. These engineers and technicians are experienced in construction, repair and maintenance of roads and highways, power stations, irrigation systems, railways, waterways and ports, telephone systems, industrial installations, shipyards and dockyards, radio and television networks, public health facilities, etc.

(b) Medical Manpower. Eacilities exist in different medical degree colleges and a post graduate medical institute to ensure an annual output of over 1,200 medical graduates including dental surgeons and pharmacists. This number may increase in 1983. Similarly training facilities exist to train radiographers, compounders, dressers, dental technicians, nurses, midwives, etc. (c)

Tradesmen. Skilled tradesmen having sufficiently high levels of skill are available in basic engineering and building trades. These include electricians, petrol-diesel mechanics, welders, fitters, machinists, moulders, turners, plumbers, carpenters, masons, cabinet makers, draughtsmen, etc.

(d)

Industrial Manpower. A large number of industrial establishments produce people in these areas: professional, managerial, administrative, technical, skilled, semi-skilled and unskilled workers with several years of experience in the respective industrial field.

(e)

Road Transport Workers. Large numbers of people are available as mechanical engineers, automobile engineers, auto mechanics, painters, denters, auto electricians, engine artificers, fitters, and drivers of cars, tractors, trailers, trucks, shovels, cranes and dumpers.

(f)

Port and Water Transport Workers. Bangladeshis are known in the world as daring seafarers. All categories of personnel connected with seafaring are available including masters,

- 26 engine drivers (tug, self-propelled, barge, etc.), nautical cadets, tally clerks, crane drivers, fork lift operators, security and managerial personnel, crew, searen, technicians, butters, coeks, etc. (g)

Manpower for Financial Institutions. Persons trained in central and commercial banking and insurance activities are available; their skill is of international standard. Chartered accountants, cost accountants, industrial accountants, auditors trained inside and outside the country are available for export.

(h) Agriculture Manpower. Many people have University and high level degrees down to craft level tradesmen certificates in agriculture, animal husbandry, forestry, fisheries, livestock, poultry farming, horticulture, cultivation, farming and repair of agriculture appliances. (j)

Other Manpower. Alse available in the country are persons experienced in trade and commerce activities; prrufessionalstrained and experienced in economic planning, social planning and related fields; research workers in natural science, physical science and social science; University and College teachers; newsmen, editors, reporters, translators, photographers; printing press personnel; lawyers, judges; and public administration personnel.

Job Seekers Registered for Overseas Jobs

1.40

As of 1 December 1979 about 164,909 persons (skilled and unskilled) qualified in different trades had registered their names with the Employment Exchanges under BMET are awaiting foreign employment. These job seekers may be classified as follows: Table 1.5:

CLASSIFICATION OF JOB SEEKERS THROUGH BMET BY QUALIFICATIONS Master s Degree (including professional technical and related) Bachelor's Degree (including professional, technical and related) Intermediate, Diploma (including professional, technical and related) Secondary Certificate Skilled Workers Semi-skilled Workers Unskilled Manual Labour Total

2,963 5,309 42,207 20,035

19,026

25,743 49,626 164,909

- 27 D*

Profile of Migrants from Bangladesh

1.41 Information of the profile of migrants has been gathered from the administrative records of BMET. The purpose of the study on the profile of migrants is (a) to examine the volume and nature of migration from Bangladesh and draw a general profile of Bangladeshi migrants, (b) to identify the occupations and skills in which migration has taken place, (c) to indicate the countries where Bangladeshi workers have migrated and ascertain the volume of migration to each country, (d) to compare the occupations according to intensity of demand in the context of total migration from Bangladesh and within each country of migration, (e) to examine the trend of migration from different regions of Bangladesh and compare the trend, and (f) to examine the nature of demand and the terms of recruitment of Bangladeshi workers for foreign employment. 1.42 For the purpose of the study it was decided that a 10% sample would be drawn out of the total number of migrants who left during 1977 and 1978. In order to have a broad spectrum and also to have a readily applied sampling technique the sample was chosen by taking every tenth migrant worker throughout the entire number of migrant workers available from different lists. The usual procedure in such a case was to select a random number for a point of beginning and then to take every tenth case thereafter throughout the whole list. For example, if the random number happened to be 5, the sample would consist of numbers 5, 15, 25, etc. The formal method followed to determine the first number in a subsequent list was to calculate the following: (X + 10) - Y where X is the number of the case last selected on the previous list and Y is the number of the last case on that list, the highest number on the previous list. Names and other particulars of the migrants proceeding through BMET were taken from files which contained lists of migrant workers. Samples were drawn from these lists according to the above formula. For the part of the Crame which consisted of registers (i.e. register for migrants proceeding through passage brokers, recruiting agents and individual efforts) in which the persons were serially numbered, the selection of every tenth case was virtually automatic. While consulting the placement records in BMET the total number of migrants appeared to be 38,534, but the departure lists indicated that 35,995 persons actually proceeded on employment. Also, while the 10" sample was drawn out of the migrants shown of different BMET lists some lists were missing and their information could not be made available in this study. Thus the total sample which is under study is as follows:

- 28 Table

Number Year as it

1.6:

SAIT]PLEOF MIGRANTS FOR THE STUDY

Hurber of Actual Migrants from Departure List

of Migrants Should be

Number of Sample Draws

Total Number of Sample Available

1977 1978

15,725 22,809

13,105 22,890

1,310 2,288

1,291 2,281

Total

38,534

35,995

3,598

3,572

1.43

Preparation of index cards was a further step taken in processing the study. Twelve columns of information were necessary for each migrant, which were recorded on one card for each migrant. Tables were prepared from this information with suitable corelations. Efforts were made to collect the following information for each migrant: (a) occupation, (b) name and address of the migrant, (c) father's name, (d) age, (e) marital status, (f) period of contract, (g) salary (present and previous), (h) passport number and date of issue, (i) education, (j) training, (k) previous experience. The information was tabulated and analysed to get the desired results of the study. The Tables are given in the Appendix.

(i)

1.4

Skill

Distribution

of the

The migrants were divided into five bution between the skills is as follows: 4

Table 1.7:

major

skills.

Percentage distri-

CLASSIFICATION OF MIGRANTS BY SKILL

Skills P:'ofessionalWorkers Technical Workers Skilled Workers Semi-skilled Workers Unskilled Workers Skill not Known Total

Migrants

Percentage of the Total

5.40 2.58

48.88 10.53 28. 08

4.53 100.00

- 29 -

In order to facilitate observation of the migrants in more detail, the skills of the migrants have been further divided into major types of workers. Their percentage distribution is as follows: Table 1.8:

TYPES OF WORKERS TJNDERDIFFERENT SKILLS

Skills

Percentage of the total

Professional workers: Engineers Doctors Others Sub-total

2.16 1.18 2.06 5.40

Technical workers: Technicians Sub-total

2.58 2.58

Skilled workers: Construction workers Transport equipment operators Production vTorkers Service workers Sub-total

30.17 9.15 3.77 4.98 48.07

Semi-skilled workers: Construction worker., Transport workers Production workers

3.81

Fishermen Agriculture workers

3-14

Clerical workers Others

1.18 2.40

Sub-total

10.53

-

Unski11;

30 -

labour:

Construction workers Tr nsport labour Product -on labour Service Others

25.28

labour

2.02

0.78 28.08

Sub-total 1 .45 amount

In the skill distribution of the migrants it appears tha-t the maximum by construction workers" followed of migration was 30.17% for "Skilled transport &gqipment operators," 28.08% for "Unskilled labour," 9.15% for "Skil1ed workers." These workers belong to a large number and 4.98% for "Skilled service of trades of which the follow-ingtrades have comparatively greater demand: (a) carpenter, (b) mason, (c) block maker, (d) rod binder, (e) painter, (f) plumber, (g) pipe fitter, (h) electrician, (i) welder, (j) steel fixer, (k) very heavy driver, (1) automobile mechanic, (m) mechanical fitter, 'n) power house technician (high volo,0 e), (o) turbine operator, (p) cable jointer, (q) cook, (r) washerman, (s) sweeper, and (t) waiter. 1.46 Migration of engineers an2 eoctors constitutes an insignificant percenta e. This does not n-ce_sarily mean that these categories h-yre ro demand, but that substantial migration did not take place in these due to the stiff procedure of clearing them for cverseas employment.

(ii)

Cccupational Distribution of the Migrants

1.47 The different occupations of the migrant workers have also been classified according to the International Classification of Occupations (ISCO); their percentage of distribution is as follows: Table 1 .9:

OCCUPATIONAL DISTRIBUTION OF 14IGRANTSFROM BANGLADESH

Major

group

01.

Professional, technical anc related wvorkers

Percentage

distribulion

7.98

02.

Administrative and managerial w;orkers

03.

Clerical and related -w,orkers

1.79

04.

Sales worlcers

1 .37

05.

Service

8.37

workers

- 31 -

06.

Agriculture, animal husbandry, forestry, fishermen and hunters

07q 08,. 09 . 10.

3.64

Production nd related workers, transport equipment opera-,orsand labourers Workers not occupation

Occupation

not

classified

by 0.70

inown

4.40

Total 01. Professional,

71.75

100.00

Technical

and Related

Workers

1. 48 There are 70 occupations (Appendix Table 2) under this major group of migrants including doctors, engineers, nurses, accountants, teachers and architect. The maximum number of migrants in this group (32.23 'F'%) have been claimed by Libya (Appendix Table 4). The other countries d.erranding this group in large

numbers are Iraq, Saudi Arabia and UAE, each claiming 14%. Algeria, Nigeria and Malaysia claimed only this category of workers although in mall percentage. The main supply of professionals come from Dacca District (35.44%) followed by Chittagong (10.18%), Sylhet, F\oakhali and Comilla respectively (Append.ixTsible 7). 38.18% of the migrants hold Bachelor's degrees, 20% post graduate degrees, _9% Diplomas and 3.64% are specialists. All others are below degree level (Appendix Table 10). It is interesting that the professional migrants have longer contracts as compared to other mi rants (Appendix Table 5). The compar:ison is as follows: Table Period

1.10:

DISTRIBUIY'ION OF MIGRANTS BY PERIOD OF CONTRACT

of contract

Professional

1 yea-r 2 years 3 years 02. Admini.trative 1.49 at all. 03.

and. Managerial

No si nificant

Clerical

migration

migrants

Other

migre.nts

3.11%

66.37%

43.30%

33.42%

19-59%

0.19%

Workers. appe-rs to

have

taken

place

in

this

croup

and Related Workers

1. 50 Migration occurred in 1O d.if'erent minor occupations under this group (Appendix Table 2). Major trades in this group are office secretary, accounts assistant, storekeeper, typist, time keeper, telephone operator, clerk1 etc. Under this category 29.69% of the mi rants are skilled workErs, 65.62% semiskilled and 4.69% unskilled (Appendix Table 14). This cateaory has their

- 32 its largest market in UAE which claims 32.8% (Appendix Table 4). The other countries having .ignificant demand for this category of workers are Oman, Saudi Arabia, Qatar, Bahrain and Ku:ait. The maximum supply of this category came from Chittagon (32.8%) followed by Dacca, Comilla, Tangail and Noakhali districts (Appendix Table 7). The migrants have education levels of Secondary (28.57%), Higher Secondary (28.57%) and Degree (28.57%); 14.298% are below Secondary level (Appendix Table 10).

04 Sales

Workers

1. 51 ligrants are in four minor occupations: traders, salesmen, shop assistants and the like (Appendix Table 2). In this group the workers are mostly semi-skilled (69.39%) and unskilled (30.61%), there are no skilled worker migrants in this group (Appendix Table 14). This category has the highest demand in UAE (61.22%) followed by Qatar, Oman, Bahrain and Kuwait (Appendi; Table 4). The maximum supply of this category came from Sylhet (32.865%) followed by Chittagong (30.61%) and then Dacca and Noakhali supplied smaller numbers (Appendix Table 7). The education levels of the mi, rants in this category are 71.43% below Secondary level and 28.58% from Secondary to Post Graduate (Appendix Table 10). 05.

Service

Workers

1. 52 Migration occurred in 37 minor occupations under this major group (Appendix Table 2). The major trades under this group are chef, cook, waiter, bearer, kitchen boy, room boy, all categories of caterin staff, housekeeper, sweeper, laundry boy, -asherman and housemaid. In thi. group 59.53% of the migrants are skilled workers, 16.39% semi-skilled and 24.08% unskilled (Appendix Table 14). Four countries have major demands for this category of workers from Bangladesh: Saudi Arabia (211.24%),Kuwait (21.07%) and UAE and Oman (20.07% each). The other countries demanding this category are Iran, Bahrain, laiar, Iraq and Libya (Appendix Table 4). The main suppliers of this category were Dacca district (29.108%) followed by Chitta ong, Sylhet and Noakhali (Appendix Table 7). The education level in this category is 1.58% Graduate and Post Graduate, 5.14% Secondary and Higher Secondary, the remaining 93.29% are below Secondary level (Appendix Table 10). 06. Agriculture

Workers,

Forestry,

Fishermen

and Hunters

1.53 Migration took place in six minor occupations under this major group of occupations. The major trades are fishermen, farmers, gardeners and sailors (Appendix Table 2). In this group most of the migrants are semi-skilled (8S.15%), 6.15% are unskilled and 7.6%o skilled. The maximum numbers of workers in this category has been claimed by K-uwTait (78.46%); all these being fishermen and sailors. Only three other countries have a demand for this category; Libya, Oman and UAE need only farmers and gardeners (Appendix Table 4). IThe maximum supply of this category came from Chittagong district followed by Noakhali, Comilla -nd Sylhet (Appendix Table 7). All the migrants in this category have education levels below Secondary.

- 33 -

07, 08, 09. Production and Related Workers, Transport E uipment Operators

and

Labourers 1. 54 The maximum number of people have migrated in 175 differen. trades under this category from Bangl.de,h (Appendix Table 2). The major tr...des in this group are all types of construction workers such as masons, carpenters, rod binders, plumbers, pipe fitters, house electricians, etc; transport equipment operators such as all types of vehicle drivers, operators, mechanics, etc.; production workers such as aircraft mechanics, workshop mechanics, fitters, turners, power plant operator , refrigerator and airconditioning repairers, etc. In this major occupational group most of the migrants are skilled workers (59.46%) followed by un killed labour (35.-'3%) and a small percentage (5.31%) of semi-skilled worker; (Appendix Table 14). This category of workers have migrated in large numbers to all countries except Nigeria, Algeria and Malaysia. The highest number of this category have migrated to UAE (38.31%) followed by Oman and Saudi Arabia. All the remaining countries claimed almost equal numbers each (Appendix Table 4). The bulk of supply of this category came from Chittagong district (31.92%) followed by Sylhet, Dacca, Nodkhali nd Comilla (Appendix Table 7). The largest number of migrants (91.45%) in this category have education level. below Secondary, while the remaining migrants are between Secondary and Degree levels; none has a Master's Degree (Appendix Table 10). MEost of the workers (63.36%) have contracts up to one year; 33.42% have two year contr.;,cts and only 0.14% have three year contracts (Appendix Table 5). (iii)

Countries

of Migration

The workers in the sample migrated to t-elve different countries. total number of migrants in each coun,ry, most are construction, and production workers and unskilled labour; some countries, however, certain other categories of workers from Ban:ladesh.

1.55 Among the transport preferred

Table 1.11:

Country of migration UAE Oman Saudi Arabia Kuwait Libya Qatar Iraq Bahrain Iran Malaysia >

CB.UNTRTvISECLASSIFICATION OF 2JORKERPREFERENCE

Percentage of total 32.31 1'.74 12.57 9.13

Majority migrants other than construction, transport and production workers

3.87

Service workers Service workers Service workers Fishermen Professional -orkers Sales workers Professional workers Service workers Service workers

Algeria

0.50

Professional sorkers only

Others

0.70

Total

8.39 8.34 7.31 4.09

100.00

_-

1/

1/ Total does not add because of rounding

Percentage of preference for each country 5.20 13.19 14.48 31.29 30.67

3.69 16.09 9.59 15.22

- 34 United

Arab

Emirates

1. 56 The Emirate has seven states. Separate studies have not been made for each. All seven states together are the principal clients for Bangladeshi workers (Appendix Table 3). The numerical difference of migrants between UAE and other countries is considerable. Out of the total number of Bangladeshi workers in UAB 85.10% are construction, transport e_uipment and production workers followed by service workers (5.20%d) and then professional, technical, sales and clerical workers (Appendix Table 4A). The maximum number of Bangladeshi migrants in UAE are from the district of Chittagong (34.83%,) followed by Sylhet, Noakhali and Dacca (Appendix Table 6). The migrants in UAE are mostly in private employment (89.83%) w,hereas in public employment there are only 10.17% (Appendix Table 11). The maximum number of migrants in UAE have one year contracts (35.96%1) (Appendix Table 12). UAE follows Libya in claiming the maximum number of professional personnel from Bangladesh, followed by UAE (Appendix Table 4). Oman 1. 57 Oman is second largest importer of Bangladeshi manpower after UAE (Appendix Table 3). Out of the total Bangladeshi workers in Oman 73.63%o are construction, transpoit equipment and production workers followed by service workers (13.19%) and then professional, technical, clerical and agriculture workers (Appendix Table 4A). Most Bangladeshi migrants in Oman are from Chittagong district (66.81%), followed by Dacca, Noakhali and Sylhet (Appendix Table 6). Almost all the migrants are in private employment (99.11%) while in public employment there are only 0.89% (Appendix Table 11). Most migrants (79.78%) have one year contracts (Appendix Table 12). Saudi

Arabia

1. 58 The third largest number of Bangladeshi migrants have been employed in Saudi Arabia (Appendix Table 3). Out of the total Bangladeshi migrants in Saudi Arabia 69.26% are construction, transport equipment and production s;orkers followed by 14.40o service workers, then professional, technical and clerical ,Torkers. There is no migr tion to Saudi Arabia from administrative, sales and agriculture trades (Appendix Table 4A). 18.480%of the migrants are from the district of Dacc 1 followed by Sylhet, Noakhali, Chittagong and Comilla (Appendix Table 6). Among the workers 85.96% are employed in private organisations whereas only 14.03% are in public organisations (Appendix Table 11). In contrast to other Middle East countries Saudi Arabia has been employing the majority of the migrants (26.50%o) on two year contracts (Appendix Table 12). Saudi Arabia follows Libya in claiming the m ximum number of professional personnel from Bangladesh (Appendix Table 4). Kuwiait 1. 59 Out of the total number of mi rants in Kuwait 45.70%0 are construction, transport equipment and production workers. 31. 29%oare fishermen. Other migrants in Kuwait are service workers, professional and technical workers, clerical workers and sales workers (Appendix Table 4A). Most of the migrants

-

35

-

are from the district of Sylhet (18.40%) followed by Chittagong, Dacca and Noakhali (Appendix Table 6). The maximum number of migrants are in private -there are only 12.88% (Appendix employment (83.75%) and in public employment Table 11). Most migrants (32. A1%) have one year contracts (Appendix Table 12). Libya 1. 60 0ut of the total number of Bangladeshi migrants in Libya 55% are construc-:ion, transport equipment and production workers. Libya claimed the migrants from Bangladesh: 32.285o of the total highest number of professional number of professional migrants from Bangladesh and 50.67% of all Bangladeshi miL,rants in Libya. The country employed a consider ible amount of agricultural there is no migration to Libya in administralabour from Bangladesh. However, are from (Appendix Table 4A). Most migrants tive, clerical and sales trades Dacca district followed by Noakhali, Sylhet, Chittagong and Comilla (Appendix Table 12). have two year contracts (17%) (Appendix Table 6). Most migrants Qatar 1. 61 Out of the total number of Ban-,zladeshi migrants in Qatar 83.89% are construction, transport equipment and production workers, followed by sales workers, service workers, clerical workers and professional workers (Appendix Table 4A). Most mi,rants in Qatar are from the district of Chittagong, followed are employed by Sylhet, Dacca and Noakhali (Appendix Table 6). Most migrants in private organis-tions (69.12%) .yhile in public employment there are only 30.87% (Appendix Table 11). Most migrants (34.9Y5%) have only one year contracts Table i2). (Appendix Iraq 1. 62 Iraq follows Libya in claiming the maximum number of professional number of (Appendix Table 4). 0ut of the total personnel from Bangladesh Bangladeshi migrants in Iraq most (53-.62) are construction, transport equipment and production workers followed by 16.095o professional and technical workers, and service workers and clerical workers (Appendix Table 4A). There is no migration in administrative, sales and agriculture trades. Most migrants -.nd followed by Noakhali, Comilla of Dacca (?6.82%) are from the district Sylhet (Appendix Table 6). In con-rast to other countries, most of the migrants employment there are employment (7'.795%) while in private in Iraq are in public only 26.35o (Appendix Table 11). Again, in contrast to most other countries Table 12). in Ir3q have two year contracts (Appendix the maximum number of migrants Bahrain 1. 63 Out of the total number of Bangladeshi migrants in Bahrain 80.14%o are construction, transport equipment and production workers follo-wed by service workers, professional and technical workers, clerical workers and sales workers (Appendix Table 4A). Most migrants are from Chittagong distrIct (27.40%) closely follo--ed by Sylhet (20.55%) and then Dacca and Noakhali (Appendix Table 6). employment employment and 13.01% in public 86.39% of the migrants are in private (Appendix Table 11). The majority of the migrants have two year contracts rather countries. than one year as in most other

- 36 -

Iran 1.64 Out of the total number of Bangladeshi migrants in Iran 71 01o%are construction, transport equipment and production workers followed by service workers (15.2 %) and professional and technical personnel (11.59%) (Appendix Table 4A). Iran is one of the several countries claiming a considerable number of professional personnel from Bangladesh (Appendix Table 4). There was no migration to Iran in administrative, sales and agriculture trades. Most migrant came from the district of Dacca (41.03%) followed by Noakhali, Comilla, Chittagong and Sylhet (Appendix Table 6). The maximum number of migrants are in private employment (73.72%) while in public employment there are only 26.27% (Appendix Table 11). The majority of migrants have two year contracts (22.469%o) compared to one year in many countries (Appendix Table 12). Malaysia, Nigeria and Algeria 1.65 These three countries showed a completely different trend in respect to manpower export from Bangladesh compared to the Middle Eastern countries. The countries together claim only 0.55% of the total migran-s (Appendix Table 3). While Nigeria claimed a microscopic number of migrants in production trades, the three countries imported only professional and technical manpower from Bangladesh (Appendix Table 4A). The mi.rants are from Dacca, Chittagong and SYlhet districts (Appendix Table 6). All the migrants are in public employment rather than private employmert (Appendix Table 11). The migrants in Nigeria have one year contracts, while those in Algeria have tfo year contracts and in M,ralaysiathree year contracts (Appendix Table 12).

(iv)

District of Origin of the Migrants

1-66 Migrants from all the districts of Bangladesh have migra-ed to the different countries under study; but the maximum number of migrants came from five districts and they migrated to all the countries under study. Percentage distribution of the total number of m-igrants from each district are as follows: Table

1.12:

PERCENTAGE DISTRIBUTION OF MIGRANTS BY DISTRICT Percentage of the total migrants

District Chittagong Dacca Sylhet Noakhali Comilla All other districts (having less than migrants each) District not known

28.19 12.51 11.25 7.03 2.83 1%

Total

1/

Total does not add because of rounding.

2.85

35.44 100.00

l/

-37

-

1.6y The percentage of migrants from each district compared to the- total population of the same district is as follows: Table 1.13:

District Chittagong Dacca Sylhet Noakhali Comilla

PERCEnTAGE OF DISTRICT POPULATION MIGRATED Total population of each district in 1974

Percentage of population migrated

4.6 million 8.3 million 5-5 million 3.4 million 6.2 million

0.21 0.05

0.06 0.07 0.07

It appears that compared to their population the proportion of manpower export in the five districts is insignificant. Some other observations can be noted as follows: Chittagong District 1.68 The migr nts from Chittagong are in all countries except Al eria and Malaysia. Among the overseas Bangladeshi workers there are more from Chittagong~ than any other single district; 66.81% in Oman, 42.627 in Qatar, 34.83% in UAE and 27.40% in Bahrain (Appendix Table K'). The district supplied all categories of migrants, construction transport etuipment and production workers being the highest number followed by service workers, fishermen, professional personnel Out of the total number of migrants and clerical workers (Appendix Table 7). from Chittagong 87.38ao are rur_l while the remaining 14.62% are urban. The religious affiliations are 96% Muslim, 3% Hindu, 0.2% Buddhist and 0.1% Christian. Dacca District under study. are in all the countries from Dacca district 1.69 The migrants Mi rants from Dacca are greatest in number in Nigeria, Malaysia, Algeria, Iran, Iraq, Saudi Arabia and Libya (Appendix Table 6). The district upplied all types were fishermen, but the most plentiful forestry, of migrants except agriculture, construction, transport ecuipment and production workers, followed by profesOut sional workers, service workers and clerical workers (Appendix Table 7). of the total number of migrants from Dacca district 65.54% are urban while the remaining workers are rural (Appendix Table 8). Their religious affiliations are 88% Muslim, 2% Hindu and 9% Christian. Sylhet District The migrants from this district are in all countries except Algeria. 1.70 Most of the migrants in Kuwait are from Sylhet. Although they do not have a single majority in any other country, they are present in substantial numbers in in all supplied migrants (Appendix Table 6). The district all the countries categories of occupations of which the maximum number is in construction, transport equipment and production workers followed by service workers, sales workers and professional workers (Appendix Table 7). Among the total number of mi_rants

- 38 from Sylhet 89.30% are rural a-nd 10.90% are urban. are 97% Mur-}im and % Hindu (Appendix T ble 3).

Their reli ious aff~liations

Noakhali District 1. 71 This district ha:. migrants to all the 'w,iuntr es under sudyj exc;ept Algeria, Nigeria and. Malaysia. Among the overseas Bangladeshi:ingrcsnts from Noakhali do not have a single majority in any country; but they are present in large numbers in all the countries (Appendix Table 6). The district supplied migrants in al: I.e occupations with the maximum numbei being in construction, tran=port equipment and production trades follo ed by .ervice workers, agriculture workers and professional workers (Appendix Table 7). Aric.:'> -:1 ese migrants 96.81% are rural -while only 3.19% are urban. 99.60o are Muslim ani 0.4% are

Hindu (Appendi-

Table

8).

Comilla District 1. 72 The migrants from this district are in all coun.r es under study except Algeria, Nigeria and Malaysia. The over -. eas migrants from Comilla district do not h-ve a single majority in any country, but there are many in Iran, Iraq, Saudi Arabia and Libya (Appendix Table 6). The district supplied m_grants in all types of occupation:-with maximum numbers in construction, transport equipment and production workers follo.'edby professional workers, service workers and clerical workers (Appendix Table 7). The mi.rants from this district are 93.00.%/_ rural and 6.94% urban. Their religious affiliations are 9P0o Mu. lim and 1% Hindu (Appendix Table 8). (v)

Supply of Imporlant Categories of ManDsser

1.73 The five major labour exportin districts may be further compared in respect to supply of importan- categories of migrants as follo-.-s: Table 1.14:

TRADES SUPPLIED BY DISTRICT Con:.

District

Profe.Total Miional grants Migrants from the from the District District

Chittagon~,1,007 Dacca 447 Sylhet 407 Noakltali 251 Comilla 101

29

101

Percen:age of District Total

2.8

ilr-c-

tion Transport and Production PercentWorkers age of from the District District Total

818

81.2 81.6

22.3 527

50.8

13 11

3.1 4.3

332 189

9

8.9

74

75.3 73.26

Service eorker Migrants from the District

Percentage of the Total

56 87 34

5.6 1:`. 5 8.3

17

6.7

4

4.0

- 39 -

1. 74 The above Table shows that compared to the number of migrants from individual districts, the lar est proportion of profeN.sionalworkers came from Dacca followed by Comilla, Noakhali, Sylhet and Chittagong. Construction, came in eqaal]y large proportions from four tr,nsport and production workers districts except Dacca. Service workers cme frocrDacca in larger proportions than the other four districts which supplied almost equal proportions each. Nolve of the other districts has yet been exporting significant numbers of manpower. However, a description of their performances may be seen in the Summary of Appendix Table 7. Periods

of Employment

Contracts

1- 75 The periods of employmen-tcontracts vary from one to three years. There is no contract for less than one year while a microscopic number (0.1%) of the l)grants' contracts have over three years. The general tendency is az

foi l

GTws:

Table

1 .15:

PERIOD OF CONTRACTIN PERCENTAGE

Period of Contract One year Two years Three years Others Total

of Percentage Total Migrants 60.82 3494.10 0.10 100.00

1. 76 It has been further observed that while most of the construction, transport equipment and production workers have employment contracts for one personnel Have contracts of two years (Appendix Table 5). year, most professional In this respect different countries have different tendencies. For example while most of the countries have a tendency to restrict the contract to one Libya, Bahrain, Iraq, and year, certain other countries, such as Saudi Arabia, Iran, prefer two year contracts irrespective of categories of worker; (Appendix Table 12). Rural:Urbaz Migrants and Reli ion

1.77 Most migrants are rura (77.84%) and 22.16% are urban. Dac-a is an exception with 57.34% coming from urban areas. The summary of Appendix Table 8 provides more details. Mostly the migrants are Muslim (95.44%) and they are from ll the 1. 78 districts. Hindu migrants make up 2.51% of the total and they are mostly from Chittagong, Dacc and Sylhet districts. There are 1.9%0 Christian migrants, from the district of Dacca, Chittagon and Barisal. There -jere only three Buddhist migrants, all of them from Chittagong district.

- 40 -

Educational Level of Higrsnts 1. 79 Out of the total number of migrants a great majority (82.84%) arebelow Secondary level of education, 10.23% have a Secondary School certificate anc a Higher Second ry Certificate, 4.33% have a -achelor's degree and 2.6% This indicates thau the people a Post Graduate degree (Appendix Table 9). having a lower level of education have chosen to go for employment in the Middle East countries, but this hypothesis does not apply in respect to the skills of the mi rants; i.e. the hi;4her the skill the be-Lterthe prospect of employment. More inform-tt;ion of this car.be found in -he Summary of Appendix Table 10. Age Distribation of Migrants 1. 80 There is no migrant below the age of 15 years, and only 4.40o are above LC years of age. The remaining 95.5-11 of the migrants are bet-een 15 and 40 years of a'e. The majcrity of the migrants (8.61%) are between ages 20 and 35 years. The distribution ma3 be seen in Appendix Table 13, and as follows: Table 1.16:

PERCEVI9rAGEDISTRIBUTION OF ]dIGRANTS 1Y9AGOm

A,-e group 15-19 20-35 36-40 41-above 1. 81 above. Nature

The employers

have

a greater

Percentage of Total 2.50 82.61 10.41

4-48 preference

for

ages

20-35

as

indicated

of Employment

1. 82 WIhile only '1.24% of the total r.umber of migrants hs.ve been employed in public organisations in different countries, the majority (88.,76 0 ) have been ememployment are in ployed in private enterprises. The migrants mostly in public countries like Libya, Iraq, Malaysi-a,Algeria and Nigeria (Appendix Table 11). A very important characteristic of public employment in all 'he countries under study is that such employment claims more professional personnel than any other category.

(vi)

Some Fturther Observations

yaximum Labour Exporting Ili tricts of Bangladesh and the Importing Countries of the Middle East 1. 83 UAE is the maximun labour importing country and the district of Chittagong is the maximum labour exporting area in Baangladesh. There may be several reasons contribu-ing to this phenomenon, of Is,ichthe main reason seems

- 41 to be as indicated earlier: that migration to the Miiddle East countries started through indiv-dual efforts, and the people who had already re ched there helped their friends and relations to get employment in those countries. More than thirty years ago, people from Bangladesh, especially from the district of Chittagong, started to mi-rate in large numbers to the Middle Ea t countries in search of work. Even before that people from Chittagong had trade relations and communications with Arabian traders. Most of these Ban ldeshis have been staying in the UAE countries, ,audi Arabia, Oman and Qatar. The.r performance and persuasion seem to have encour g,ed employers to engage Bangl deshi workers in ever increasing numbers. Countries having a concentration of labour from certain districts of Bangladesh understandably increase this concentration by en agin relative and friend- of the employees. 1.84 As for Sylhet -nd Noakhali districts, the-r peop'leare born adventurers; in the past they took chances to adventure at the first available opportunity. Also these districts and Comilla seem to have a considerably developed rural formal sector and a large supply of skilled tradesmen. So, the skills required by the employers were eacily available in these districts, which contributed to the increasing size of manpower export from these districts. 1.85 The district of Dacca in reality has fewer migrants -han recorded because many migrants, although belonging to another district, re-istered a Dacca address in order to get chances for foreign employment more 1 uickly. A very important point should not escape notice: the maximum number of migrants were construction, transport equipment and production workers. But the district of Dacca, in spite of having the bes+ training facilities claimed the poorest migration of these trades, compared to the other four major districts. This suggests that Dacca district may have a limited supply of skilled manpower even if this appear to be a surprising conclusion. Besides, among the five major labour eYporting d-stricts, Dacca has a proportionately smaller number of rural mi-rants, a fact wThich -. mi ht be due to the growth of a rur-l form-1 sector in Dacca district. 1 .86 The most important reason certain districts export more labour th n others may, hoTever, be that the employers usually restrict their visits to Dacca city, sometimes agreeing to go to Chittagong and once in a while to Sylhet. The people in and around these districts are more apt to avail them elves of th-,e chance of recruitment. 1- 87 Another important reason why the far flung districts cannot take advantage of recruitment is perhaps the short notice of the arrival of the recruitment teams. Sometimes they arrive without sufficient prior notice and complete the process of recruitment very quickly, thereby failing to meet with the prospective candidates from distant Areas. This reason especially contributes io th- small labour export from certain remote districts.

- 42 -

Frustration Among the Educated Youths, Tr:ining deshi Manpower

nd Overseas Market for Bangla-

1.88 Unemployed educated youths feel frustrated about their chances for foreign employment, due to the fact that the foreign employers do not need them. The education system in the country at the moment gives most students general education rather than technical education. The trades and skills largely wanted for overseas jobs have been enumerated above. Construction trades have the maximum demand for overseas employment; but unfortunately sufficient training base has not yet -rown in this trade; even the Technical Trainin; Centres under BMET do not offer most of them. This suggests the need for training facilities to train in trade shortage areas. Some measures seem to be apparent in this direction:

Arabic

(a)

A census is necessary to enumerate the stock of technical manpower in the country and to survey in detail the Technical, Vocational and Professional Institutes.

(b)

A survey of recruitment practices of the different organisations within the country needs to be done to assess their need for manpower over a period of time.

(c)

The Labour Attaches of Bangladesh Missions abroad may collect the development plans of different countries for information about their manpower requirements. This would suggest the tr ining planning of Bangl desh, keepinc in view the goal of m-,npower export Most of the construction firms in the M dJl EEst have their principals in London. The Labour Attache in Lcndon rmay contact these principals and negotiate deals for recruitment of Bangladeshi manpower in the respective countries. Other Labour Attaches may assist him in preparing the list of such firms.

Language,

Madrasah

Education

and Trades

Training

1. 89 Bangladesh is a Muslim country, and Muslims know how to read the Hioly Quran in the Arabic l-,n uage. Every Muslim household in Bangladesh is an infcrmal institute for Arabic language learning, and there is a large number of formal Madrasahs under a Madrasah Education Board in Bangladesh teachin: the Arabic languag-eand Islami-t. The qualified graduates of these institutes have a limited field of employment in these institutes only. Their horizon of employment can be widened at once both within the country and in the Middle East countries by introducing an element of trades training within Madrasah or taking the TMadrasah -;Taduatesout to TTCs; their knowledge of the Arabic language will place them in the front line of employment in the Middle East. This idea should be nourished and circulated through the Mosque Societies of Bangladesh.

- 43 -

Role of the Rabetat-el-Alame Islam 1, 90 A Saudi Arabia based Islamic charity organisation for the Muslim world is Rabetat-el-Alame Islam. This organisation believes in all philosophic and scientific advancements, and it has made significant contributions toward international development of Muslim countries. The organisation rendered help recently to rehabilitaie the Burmese refugees in Bangladesh and established an Islamic Hospital in L typically rural area within Cox's Bazar Sub-division. In order to augment manpower export from Bangladesh to the Arab countries to meet their requirement, this organisation may establish and organise one or more Polytechnic High Madrasah in Bangladesh. The Government of Bangladesh may take up the issue through the Bangladebh Mi-sion in Jeddah for agreement of the Rabetat authorities in Riadh.

E

Future

Trends

1. 91 The World Bank ha- provided estim tes of manpower re uirements in the Middle East until 1980. These estimates also indicate an occupational breakdown of requirements. On the basis of these estimatec and by reference to past migration trends, so far as they can be determined, the following paragraphs indicate possible future migration from Ban l:desh, in total and by occup utional categories. 1. 92 As may be seen from the Tables and a sociated commentary, benchmark data is rather spar e and therefore one'K acceptance of future estimates depends on which of a number of alternative a sumptions is adf-%ed. Tables 1.19A, 1.19B and 1.19C provide different estimates on the basis of the different assumptions statecl. The highest estimate is provided by Table 1.19C, but even this may understate the magnitude of actual future migration. This may occur, for example (a) if Middle East requirements are greater than those estimated by the World Bank study, or (b) if for any reason Bangladesh is in the position to provide a greater proportion of the Middle East re uirements -thanin the past; i.e. if Bangladesh increases its share of the M\iddleEast market. This result may be achieved, among other factors, through administrative action in Banglade h as indicated in the follo;ing paragraphs. (a)

Turnkey Projects in the Middle East. The best possible way to increase the flow of migration to the Middle East seems to be the involvement of Banglladeshi const_uction firms signini contracts to work in the Middle East. Bangladeshi contractors would be responsible for undertaking construction projects to which the required manpower would be supplied from Ban jladesh. Already there is thinking in this direction; but pr:vale contractors are facing difficulties in providing bank guarantees in convertible accounts to their principals for obtaining contracts. These ;-uaranteesrequire the Bangladesh banks to put a lien on the contractors' assets and then give guarantees through the corresponding foreiP,nbanks operating in the country concerned. But the main difficulty is that Bangladeshi contractors do not

- 44 -

seem to have sufficient assets to satisfy the local banks; in other words not many big private contractors have enough resources to obtain turnkey offers in the Middle East. Therefore the Government may augment manpower export through turnkey projects by undertaking public ventures in which private parties may also be involved so that bank guarantees would be virtually automatic through the Bangladesh Bank in order to obtain contracts. Consortia of private firms may also be considered simultaneously for the purpose. (b)

Training

Facilities

in

Critical

Trades.

Certain trades seem to be iJrgreater demand than others, but sufficient training facilit-es, do not seem to exist for these critical trades. The number of training facilities must be increased in these trades. However, the existing institutional training facilities for these trades demand certain education standards as a pre-requisite for admission into such courses. Due to social reasons educated people consider crtain t.rades to be less desirable and do not easily accept them. Therefore, the easiest .ay to solve this problem is -toorganise an informal training programme for the helpers in these trades who exist in large numbers. (c)

Apprenticeship

Training.

Org--nisationsmost affected by migration are power boards, machine tool factories and fertilizer f;ctorie . Personal interviews with -heir authorities revealed the fact that the required educationally cualified and trained people are already available to replace the migrant.workers; but what is not a-vRilable is an experienced work force. This would not be so had the authorities been implementing the provisions of the Apprenticeship Act of the country. This Act provides that the e tablishments employing 50 or more workers would keep 2% apprentices in the critical trades already identified. Strict adherence to implementing the provisions of the Apprenticeship Act would raise a suitable training reserve in each establishment which would not have any adverse effect on migration in the future. (d)

management

Gaps and Skill Shorta es.

In view of the paradoxes in the labour market of Ban6ladesh and the stock of manpower, the country does not seem to liaveany skill shortage, but it is the management gap tha-t is a problem. If the management gap could be filled, there would be no skill shorta e in the future. The following ;teps mu.t be taken iirn:ediately:

- 45 (i)

Implementation of the Apprenticeship Training Act with strict adherence to its provis:onc.

(ii)

Organisation of informal training programmes for helpers to raise their skills in critical trades.

(iii)

Improvement in processin- of migrants.

of 196'

1.93 In the following Tables attempts are made to indicate the possible outflow of migrants from Bangladesh, inflow of returning migrants and an overview of total production of skilled manpower and their requirement abroad over the next few years. The fi,-aresin all these T.ables are only indtcative and in no way determinant. The position has been shown in the five T1able. (Table 1.17, 1.18, 1.19A, 1 19B and 19.C) below.

Table

1.17:

TOTAL EXPATRIATE LABOURREQUIR ITTS AND THE NUMBEROF BANGLADESHI WIORKERS LIKELY TO FURD E=1LOYMENT IN THE FIDDLE EAST (1980-1985)

Average Required+

Number During

1977-1978

Occupation Professional, technical and irelated

During

545,700

Skilled worker

Annual Recruitment as Percentag-e of the 1977-78 Annual

Annual Average Number Recruited From Bangladesh

14,058

1977-1978

Requirement

1,538

0.28

9,417

1.53

Semi-skilled vrorker

504,9`1

2,029

0.40

Unskilled worker

499,123

5,410

1.08

Not known

-

Total

2,163,262

+"Required" filled.

includeboth filled The difference between

873 19,'67 vacancies one year

_ 0.89 and vacancies to be and the next, e.g. 1977

vs. 1976,representsan increase in re.uirements plus of losses (turnover,completed contracts,etc.).

replacement

1.94 This is the only set of data available to indicate the occupational breakdown of past (and possibly future) migration. The percentagesare applied in Table 1.19A to the TorldBank estimates of future migration re uirements in the K.iddleEast as an indicationof the possible occupationalcategoriesto be recruited in Bangladesh.

- 46 -

Table 1 .18:

+1977-1978 1.95

greatly A3uLure

The flow

reduced migration

of 7.35% will Table 1.19B.

FLOW OF MIGRATION

Year

Number of Migrants From Ban.ladesh

197, 1)977

6,o07 15,725+

1)78

22,809+

1979

24,455

Percentage Increase

158.34 45-05 7.35

annual av(rage .as 19, -967 (see Table 1.17). of migration from Bangladesh has been increasing but at a

rate after the 1977 jump. One possible means of estimatirg from Bandlade h is to assume tha-,the 1979 annual increase continue over the period 1980-1985. The results are shown in

Table 1.19A: POSSIBLE OCCUPATIONALBREAKDO.JNOF MIGRATION FROM BANGLADESHIN 1980-1985, SHARE OF THE ESTIMATED FUTURE R9,UIREMENTS OF THE MIDDLE EAST (See Occupation A. ProfessionJl, technical & related (a) Number reqaired (b) Number likely to be recruited from Ban-ladesh (0.28%) B

Skilled workers (a) Number required (b) Number likely to be recruited from Bangladesh (1.53%)

1980

1981

1982

707,454

767,395

819,268

871,4`7

935,089

1,056,422

1,980

2,148

,293

2,440

2,618

2,957

801,148

853,594

914,064

973,10,

1,043,997

1,152,784

14,888

15,973

17,637

947,988

12,'57

C. Semi-skilled workers (a) Number required (b) Number likely to be recruited from Bangladesh (0.40%) D. Unskilled workers (a) Number required (b) Number likely to be recruited from Bangladesh (1.0 %)

ASSUMING CONSTANT Table 1.17)

13,136

13,985

1983

1984

599,118

660,478

721,919

793,902

882,674

2,396

2,641

,887

3,175

3,530

474,417

487,044

497,994

51 ~,659

547,874

1985

3,791

Total

14,436

87,876

18,420

551,946

5,1`3

5,260

5,378

5,536

5,917

5,961

33,175

2,582,140 21,756

2,773,481 '3,185

,953,245 24,543

3,151,156 26,039

3,409,634 28,038

3,709,140 30,346

153,907

1,2'5

1,499

1,741

2,006

2,308

2,665

11,444

Total number likely to be recruited 22,981 from Bangladesh (0.89%)

24,684

26,`34

28,045

30,346

33,011

165,351+

A + B

Total

+

C + D

(a) (b)

Addition for "Not Known" category

+This occupational breakdojn must be considered indicative only. In fact, the total is likely to exceed the numbers shown, since (on the ba is of 1979 migration of 24,485) Bangladesh appears to be filling an increased proportion of Middle East re-uirements. Projections cover the countries Algeria, Bahrain, Iran, Kuwait, Libya, Oman, Qatar, Saudi Arabi_ and UAE. Source:

Figures have been calculated on the basis of the projections made in the Labour Migration Study of the World Bank/International Finance Corporation, 7 September 1979.

- 48 -

1. iQ6 An alternative methcd of calculating possible future mig^ration from Bangladesh assumin- a constans annual increase of 7.375%0(see Table is shonm below: Table 1 .19B:

ALTER ATITE TABLE

(a) Number of migrants fifomBangladesh in 1979 (b)

1.18)

24,485

Assuminr annual increase of 7.35%: 1980: 1981: 1982: 1983: 19^4:

14,435 2.-,285 28,217 30,211 32,517

1985:

34,907

+ + + +

7.35 7.35% 71.35 7.3 %

85 2,117 30, 191 3 1,517 34,907 2

7.335% + 7.35% +

Total 1980-19o85

37,473 13), 690

(6 ye rs)

1. 97 A third alternasive method of calculating possible future miLTat!on from 3anglade:h is to a.sume a.constant proportion of the Middle East labour market bein.-met by BanJ-ladeshmig^rants. Table 1.19C:

ALT=1iATITVETABLE

(a)

In 197" mi rants from Bangladesh (22,809) rquirements in that year.

(b)

In

(c)

A^pplyir-rthe lower of these two p-roportions to future produces the following possible migration estimates:

1979

represented 1.04% of

the proportion was 1.05.

Year 1980

1981 197' 1933 1984 1985

Total

Estima ed Possible Bangladesh Requ-irements Migration (1.03%) 2, 3 140 ',773 481 ,953 245 3,151,156 3,ZL0,634 3,709,140

26,596 28,567 30,418 32,457 35,119 38,204

191,361

recuirements

- 49 -

Table 1.20: DEMANDIN DIFFERENT COUNTRIES AND THE NUMBEROF BANGLADESHI WORKERSLIKELY TO MIGRATE DURING 1980-1985 Percentage of Total Ban;lideshi WIorkers Recruited To 1978 In 1979

Country Saudi Arabia UAE Oman

Total Requirement of the Countries 1980-1985+

Number Likely to be Recruited from Bangladesh 1980-1985++

12.57 32.31 1?.74

26.50 20.64 15-41

772,912 254,500 '9,630

45,282 35,269 26,349

Kuwait

9.13

9.34

213,195

15,960

Libya

8.39

8.04

331,632

13,738

Qatar

8.34

5.64

52,800

9,667

Bahrain

4.09

3.37

36,022

5,758

+60go of the requirements will be in construction trades. ++Percentage recruitment of 1979 has been applied for calculating the number likely to be recruited during 19'0-1985. Source: Data on requirements of the different countries have been supplied by Mr. A.M.A.H. Siddicrui. 1. 98 6010of the migrants have one year contracts. Contracts are often extended, and there is a general tendency for the migrants to remain even after three years; certain people, however, come back after one year. It may be assumed that about 2CPoof the migrants might come back every year from 1980 onwards and the stock of migrant already exi..tingin the Middle East may be considered for calculation. Table 1.21A:

MIGRANTS LIKELY TO CONE BACK DURING 1980-1985

1980

Existing stock Current flo-,--++

Returnees Balance

1981

178,5'1+ 169,413 26,590

28,567

35 704 169,413

33,883 164,097

1982

1983

1984

1985

164,097

161,696

161,814

164,570

32,457

35,119

38,204

32,339 161,814

32,363 164,570

32,914 169,860

30,41''

32,819 161,696

+Stock already in the Middle East shown in Chapter II, Section C. ++Assumingmigration at the rate indicated in Table 1.19C.

- 50 -

Table 1.21B:

Existing stock Current flow++ Returnees Balance

ALTERNATIVE TA3LE

1980

1981

1982

69,106+ 26,596 13,821 81,881

81,881 28,567 16,37' 94,07.'

34,072 30,418 1.',814 105,676

1984

1985

116,998 35,119 23,400 128,717

128,717 38,o04 25,743 141,178

1983 105,676 32,457 21,135 116,998

+BMET records 1976-1979 show these migrants already existing in the Miliddle East. ++A-s assumed in Table 1.19C. Table 1.22: STOCK OF TRAINED MANPC-ER AND THE NUMBER OF MIEGRANTSDURING 1980-1985 Output Per Year

Occupation Professional Technical Total

29,426 48,792

13,036

78,218

14,436 87,876 18,420 33,175 11,444

30,734 1 :,160 -

184,404 72,160 -

Total

69,002

413,000+

the

1980-1985.

Expected Number of Migrants 1980-1985

4,940 8,132

Skilled Semi-skilled Unskilled Not known

+Assumin

Source:

Output 1930-1985

-

trainxnj

capacity

will

165,351 remain

constan:

over the period

This Table does not consider the local need.

3BET Survey of Professional, Technical and Vocational Inst2tutes, 1972.

NumE ically the supply of additional trained manpower will be much 1.99 higher than the demand for export as shogn in the Table; but all trades will not be in similar demand, and certain critical trades might be in less supply than actual demand for them as explained in the findings of the study. Thes;etrades are: (a) carpenter, (b) mason, (c) block maker, (d) rod binder, (e) painter, (I) plumber, ( ) pipe fitter, (h) electrician, (i) welder, (j) steel fixer, (k) very heavy vehicle driver, (1) automobile mechanic, (m) mechanical fitter, (n) power house technician, (o) turbine operator, (p) cable jointer, (q) cook, (r) washeiman, (s) sweeper, and (t) waiter.

- 51 -

CHAPTER II

AN ANALYSIS OF THIEINFLUENCE OF HOME RENITTANCES BY BANGLADESHI WORKERS ABROAD ON THE NATIONAL ECONOMY

A.

Introduction

2.1 The last few years have witnessed a phenomenal increase in the level of home remittances by overseas Bangladesh nationals. Based on the official rate of exchange j the inflow of migr nts' remittances during the fiscal year 1978-79 is estimated to be approximately Tk. 2,430 million j . The recripts from this source correspond to about 26% of foreign exchange earnings from export of goods (Tk. 9,170 million in financial y-ear 1978-79) from Bangladesh and are higher by nearly 180%than the receipts from other invisible sources (Tk. 2,000 million).

In order

of importance,

migrants'

remittances

during

financial

year

1978-79

ranked next to receipts from export of jute goods (Tk. 4,150 million) but surpassed export earnings from ra, jute (Tk. 2,160 million) -- the other major foreign exchange earner of Bangladesh. 2.2 These remittances helped the country to finance importation of goods of assorted nature, to liberalise the country's import policy and to relax the restriction on release of foreign exchan-e for financing foreign travel of Bangladesh nationals. In short, home remitt-nces by the Bangladeshi migrants have substantially helped cushion the gap between the country's foreign exchan-e payments and receipts. 2.3 Migrants' remittances, however, have not been an unmixed blessing. These remittances are blamed in various quarters as responsible for generating inflationary pressure on the economy and creating social tensioni:. Many people are also critical about alleged use of the foreign exchange remittances of the migrants for importation of luxury goods for ostentatious living of a selected few belonging to a higher strata of the society. In the absence of any systematic empirical work on the effects of migrants' remittances, people belonging to all shades of opinion are prone to dr-w conflicting conclusions on various aspects of the migrants' remittances.

j

The middle officialexchange rate on September 12, 1979 was E1 = Tk. 34.71 and US$1 - Tk. 15.45.

j

The amount represents remittance through official channels and the value of goods imported under the Wage Earners Scheme on payment of costs direct to the suppliers out of earnings of the migrants abroad. It does not, however, include consumer durables including motor cars imported by the incoming migrants under Personal Baggage Rules.

- 52 B.

Origin

of Wage Earners

The Wage Earners

Scheme

Scheme

2.4

Wage Earner3 Scheme j was introduced in the middle of 1974 by incorporating it in the Import Policy for the July to December 1974 shipping period. Relevant extracts from the Import Policy are reproduced in Appendix 1 The scheme, which was later to become an important adjunct to the economy, was launched during the severe foreign exchange crisis experienced by Bangladesh. The economy was still recovering from the destruction caused by the war of liberation when it received the further jolt of a country-wide flood of almost unprecedented magnitude that deftroyed or damaged crops and vital economic infrastructure. The scene on the international front was also not hvppy for Bangladesh or any of the less developed countrie . The oil crisis had reached its peak, inflation was ,weeping across the nations and industrial inputs, construction materials and food grains that Bangladesh vitally needed to reconstruct her shambled economy were in short supply. The efforts expended to cope with this situation drained the small foreign exchange reserve built up during the preceding t io years. In this desperate situation the Government decided to allow importation of a small number of selected commodities out of the foreign exchange earnings of overseas Bangladesh nationals-

2.5 The scheme relies essentially on the scarcity premium that the imports financed from wage earners funds enjoy in Bangladesh. The goods imported under the Wage Earners Scheme produce, in terms of Bangladesh Taka, effective yields of foreign exchange at a level hi her than that produced by conversion at official rates. This built-in premium over the official rate constitutes the incentive aimed at inducing the migrants to use official channels to send money home. 2.6 The Wage Earners Scheme, in essence, is not entirely a new phenomenon in Bangladesh or erstwhile Pakistan. Realising the importance of providing incentive to attract mi rants' remittances, the Pakistan Government introduced a scheme, the Home Remitt nces Bonus Scheme, in 1963 to induce her nationals to send money home through official channels. Under Pakistan's scheme, which also covered foreign exchange earnings from export of goods, the beneficiary was given local currency at the official rate plus transferrable Bonus Vouchers equivalent to 30/0of the foreign exchange remittances of the migrants. The rate of the Bonus Vouchers was later raised to 4Xo and again to 45%. A voucher which carried with it an entitlement for importation of a variety of goods not normally licensed for fin.:ncingagainst cash foreign exchan,e, could be sold in the market at a premium. The premium, which normally varied from 150'o to 200% toward the

end of the sixties, eventually stabilisedaround 175% by the middle of 1971. This premium producedan effective exchangerate of about -20 per E1 compatred to the official exchange rate of M11.43. The importersgenerally p.ssed on to the consumers the cost of the premium by reflecting it in the lnded cost of goods imported under the arrangement.

j

The scheme owes its name to popular usage; it had not been officially christenedin the initial announcementeven though the later announcements began to refer to it as the Wage Earners Scheme.

- 53 -

2.7 Following liberation of the country, the Home Remittances Bonus Scheme was abolished and a unified exchange rate of Bangladesh Taka was established at Tk. 18.9677 per -1. This new official rate of Taka, however, soon became incompatible with its real strength represented by the free market rate. The rates in the free market drifted down to make the Taka a grossly overvalued currency. The currency racketeers quickly seized on thls opportunity and provided an attractive parallel channel for transfer of funds to Bangladesh by offering more than the official exchange rate. At this stage, a scheme, known as Home Remittances Premium Scheme, was introduced on 27 July 1972 to match the rate offered in the unofficial market; it was designed to yield a fixed return of Tk. 30 per £1 reflecting a premium of nearly Tk. 11 over the official rate of exchan;e. The Government subsidized this premium through the public exchequer and the foreign exchange element of these remittances was taken into the country's overall external reserve. Unlike Pakistan's scheme or the Wage Earners Scheme later introduced by the Government of Bangladesh, migrants' remittances under the Premium Scheme of 1972 were not earmarked for specific purposes such as importation of selected goods or services. Another feature of the Premium Scheme which distinguished it from the other two schemes is that the consumers of imported goods did not directly have to bear the brunt of the premium over the official rate paid to the migrants because under the Premium Scheme the remittances were not earmarked for importation. It is worth mentioning, however, that under the Wage Earners Schqme the Government also partly subsidizes the premium by way of a preferrential tariff on importation of capital machinery and a few other selected items to offset the additional cost involved in accuiring a Wa>e Earners fund. The overall involvement of the Government on this account is, ho-ever, far too negligible to detract from the general observations that the consumers by and large are actually at the paying end. 2.8 The premium paid under the 1972 scheme also proved inadequate -ith the passage of time; by 1974 the free market rate of Pound Sterling in relation to Taka escalated to as high as Tk. 60 per £1, widening the gap between the free market and official rates. This source of foreign exchange earnings thus almost dried up when, as mentioned earlier, the Wage Earner Scheme was introduced as a temporary expedient. As it happens, however, it is now firmly embedled in the import trade of the country and, by all indications, has reached what could be called a point of no re-turn. In fact, the scheme, as would be discussed later, ha- largely transcended the scope originally conceived by its authors, -'so encompass not only the financing of imports but also foreign travel of Bangladesh nationals and other types of invisible payments which are not normally financed from official source,. Operation

of the

Wage Earners

Scheme

'.9 The Wage Earners Scheme was 'aunched with a very modest objective; the authors of the scheme conceived of a simple procedure for importation of eligible commodities by the mi rants. Actual operation of the scheme, however, needed constant revisions, adaptations and even improvisations to meet the specific situations that arose from time to time. The essential features of the scheme with a narratJve on some important aspects of its operation are given here.

- 54 -

2.10 A Bangladeshnational gainfully employedabroad is eligibleto use his earningsto import goods undlerthis scheme. Also eligibleare those who have their origins in Bangladcesh but, for one reason or the other, assumed.foreign nationality;Government servantsor employeesof autonomousbodies working in overseas BangladeshMissions or Bangladesh-basedorganisationslike banks, the Trading Corporation of Bangladesh, etc., are not, however, eligible to participate in the scheme. 2.11 A wage earner may use his earningsabroad to d.irectlyfinance the importation of certain goods under the scheme or he can send a foreign exchange remittanceto Bangladesh and sell it directly, or through a nominee, to another person for import and other purposes, or he may also open a foreign currency account in Bangladesh to deposit the fund pending its disposal or use for importation on his own account. These days, however, a wage earner rarely imports goods on his own account; the importationis done by regular importerswhile the wage earner, unaware of the market conditionsand import technique,remains content to sell his foreign exchange earnings to these regular importers at the market rate - the so called. Wage Earners Rate which is also sometimesreferred to as the IP Rate.

j

2.12 Subject to production of an Earning Certificate from the concerned Bangladesh Mission abroad., a wage earner may import transport vehicles, machinery and equipment by making payment directly to the supplier. When the goods reach Bangladesh, the wage earner or his agent approaches an office of the Chief Controller of Imports and Exports for an Import Permit. The documents required to obtain an Import Permit include a supplier's invoice and a copy of the bill of lading. 2.13 A wage earner can sell his foreign currency to another person who may in turn use it either for immediate importation of goods or deposit it into a foreign currency account of which he is either the account holder or a nominee of the account holder. The sales normally take place in Bangladesh, but there are some collectingagents who collect money on location from the wage earnerE abroad with an arrangement for payment of the Taka proceeds to their bank ac-

counts in Bangladesh,or, as is quite often the case, to a relation of the migrant in Banglad.esh. An operation of this type involving compensatory d.eals is, strictly speaking, not legal according to the foreign exchange regulations

of the country, but it is extremely difficult to adopt enforcement measures to counteract it. This medium is often used by wage earners working in isolated areas in the Middle East where adequate banking facilities are not available to remit funds quickly. The collecting agents generally send.these funds to Bangladeshunder the Wage Earners Scheme. It is, however, likely that part of these collections could also be used for clandestine transfer of funds from Bangladesh.

j

IP stands for Import Permit which is issued Controller of Imports and Exports in favour for clearance of goods from the customs.

by the office of the Chief of an importer; it is required

- 55 -

2.14

Foreign currency accountsmay be operated in the followingway: (a) Foreign currency accounts denominatedeither in U.S. Dollars or Pound Sterling can be maintained by an eligible wage earner with banks in Bangladeshauthorisedto deal in foreign exchange. (b) The account holder may operate the account himself or authorise another person in Bangladesh to do so; the latter is known as a nominee. In some cases, especiallywhen a migrant does not have a reliable or experiencedrelation the bank itself is entrusted with the responsibilityof disposal of funds through the daily auctionsheld under the auspices of the Wage Earners Fund Disposal Committee. (o) Deposits into foreign currency accountsmay be made by remittances from abroad through banking channels or by depositing foreign currencynotes, travellers cheques, etc. personally brought into Bangladeshby the migrants. Similarlr,foreign exchangeremittancesreceived by a person in Bangladesh from an eligiblewage earner may be deposited into a foreign currency account by the beneficiary in Bangladesh, but this deposit must be made within one month.

2.15 purposes:

j

Funds from foreign

currency

accounts

may be used for

the following

(a)

Remittances can be made to overseas suppliers by telegraphic transfer, mail transfer, etc. for import of goods against letters of credit. Remittances can also be made for imports without letters of credit in cases where the suppliersabroad, on shipment of goods, send the underlying shipping documents through his banker to to another bank in Bangladesh on a collection basis. j

(b)

Funds from a foreign currency account can be sold by the account holder or his nominee to persons proceeding abroad by air. The limit is £100 for travel to India, Pakistan, Nepal, Sri Lanka and Burma and £300 for other countries. This can be done once a year in the case of travel to the neighbouring countries listed above, while for other countries foreign exchange can be drawn for each trip. The banks are required to verify the travel documents before releasing foreign exchange.

(c)

Funds can be used to book passage for travel abroad, converted into local currency at the official rate (this is rarely done) or transferredto any other foreign currencyaccount maintained under the Wage Earners Scheme.

This system of import -hichis also known as import on DP (documentagainst payment) basis was banned effective 1 January 1980.

- 56 -

(d) The BangladeshBank also allows transfer of foreign currency. from these accounts for various purposes. Export claims from overseasbuyers of Bangladeshi goods can be remitted from a foreign currency account. Students pursuing studies abroad are allowed to buy foreign exchange from these accounts to meet their requirements. Occasionally, firms and organisations intending to set up duty free shops for bonded stores are allowed to buy

exchange in the VTageEarners :Jarketto meet their requirement of foreign exchangeto build up initial inventory. Foreign exchange remittancestowards down payments for acquisition of ships in the private sector under the pay-As-You-EarnScheme or deferred payment arrangementsare also sometimes allowed. In short, -,;henever a person or an entity requires foreign exchange to meet a genuine commitmentabroad but does not fulfil the normal criteria to receive an officialallocation, permission is somewhatliberally given to meet this requirementunder the Wage Earners Scheme. 2.16

An important

feature

of the

Wage Earners

Scheme

is

that

funds

deposited

into foreign currencyaccounts by a migrant can be repatriatedback to his country of present residencewithout any restriction. This flexibilityis intended to earn the confidenceof the migrants with regard to convertibility of funds held by them in the foreign currency accounts with banks in Bangladesh. Foreign currency acco-unts can be maintained by a migrant as long as he remains abroad. However, on return to Bangladesh, he may continue to maintain

the account only for a period of six months.

2.17

An account holder or his nominee can take a loan from the bank against the security of funds held in his foreign currencyaccount; the maximum amount of the loan that can be drawn is the equivalentof the foreign currency amount available

in

the

account,

calculated

C.

Remittances

at

the

official

of the

rate

of exchange.

Migrants

2.18 In the initial stages there was no elaborate system of recording the inflow of funds from the migrants in the shape of foreign currency and goods. Even though separate records were kept on remittances received through banking

and postal channels, licensingoffices did not maintain separaterecords on the value of imports paid directly to the suppliersabroad out of funds collected from the migrants under the so-called direct shipmentmethod which, until September 1979 representedanother importantmethod of transfer of migrants' savings under the Wage Earners Scheme. I/

j

The system of imports remittance of foreign 1979. The principal

financed against payments from abroad (without involving exchange from Bangladesh) was abolished in September reasons for abolition of this system are that it con-

flicts with the existing exchange control regulations of the country and provides an excuse for the currencyracketeers to accumulatefunds abroad ostensibly to finance such imports, part of which can be used to finance smuggling

- 57 -

From August 1978 the licensing offices started keeping records of goods imported under the direct shipment method; the value of these goods plus the inward remittances received from the migrants through official channels represent the net inflow of funds from the migrants under the Wage Earners Scheme. Analysis of the records of imports under the Wage Earners Scheme during the period from August 1978 to June 1979 shows that in terms of value 28.59% of the goods were imported through direct shipment while the remaining 71.41% was financed through remittances from Bangladesh out of foreign currency accounts. Using this percentage, an estimate could be made of the value of goods imported prior to August 1978 under the system of direct shipment. The following Table is designed to show the net inflow of migrants' remittances in the form of goods and foreign currencies since September 1974.1/ Table 2.1:

Year

NET INFLOW OF MIGRANTS' REMITTANCES (Taka in million)

Foreign Exchange Remittances by Migrants

Migrants' Funds Directly Used to Finance Imports*

Net Inflow

Monthly Average

1974 (Sept.-Dec.)

1975 1976

12.60

3.52

1977

184.80 358.40 1,236.60

1978

1,655.90

463.65

1,709.50

411.80

51.74 100.35 346.30

16.12

236.54 458.75 1,582.90

4.03

2,119.55

19.71 38.23 131.91 176.63

2,121.30

235.70

1979 (Jan.-Sept.)

Total

5,157.80

1,377.36

6,536.16

*The figures relating to the period prior to August 1978 are estimates. The estimateis based on the observed ratio (71.41 : 28.59) between the value of goods financedby remittance from Bangladeshand the value of goods importedunder the direct shipmentmethod during August 1978 to

September1979. at internationallevels and to assist illegal transfer of funds from the country. The system also causes loss of Governmentrevenue because of the anonymitythat generally characterisesthe source of finance,the supplier and the consigneeof the goods imported under this system. 1/

Although the Wage Earners Scheme was announcedin July 1974 the scheme did not actuallytake off until September1974 when detailedprocedureswere announcedby the Chief Controllerof Imports and Exports and the Bangladesh Bank.

- 58 -

2.19 Appendix Table 17 shows the monthwise breakdown of foreign exchange remittances through banks and post offices. AppendixTable 18 shows the value of imports into Bangladesh under the Wage Earners Scheme since 1976. Appendix Table 19 provides an overall view of the flow of funds from the migrants through various channels from August 1978 to Septem73er 1979. 2.20 Table 2.1 shows that remittances throughbanks and post offices during§ the first half of 1979 averagedTk. 221.18 million per month. Following the embargo on direct shipment of most wage earners goods announced by the Government in August 1979, the level of remittancesthrough official channels is expected to increase correspondingto the value of goods that were previouslybeing used for financing direct shipments. This, coupled with additional remittances from the new migrants who would be going to work abroad in the coming months, is likely to cause an increase in the level of home remittances by at least 32% during the remaining period of the 1979 calendar year. On this basis, total receipts d.uring the current year could be projected to be around Tk. 3,000 million. Compared.to receipts in 1975, the first fall year of the operation of the Wage Ea'ners Scheme, the projected level of remittances (net inflow) during the year 1979 would be nearly 13 times higher - the annual growth rate being 94%in

1976, 245% in 1977, 34%in 1978 and 42% (estimated) in 1979, producingan average

annual

growth of about

100%.

2.21 The future level of remittances will depend largely on the net add.ition to the existing Bangladeshiwork force in foreign countries,especially Middle Eastern and North African regions. The latter in turn will be mainly influenced by the demand for d.ifferent categories of manpower from outside by countries in those regions. The following Table shows the estimated demand for manpower from outside in the major labour receiving countries in the Middle East (Algeria,Bahrain, Iran, Kuwait, Libya, Oman, Qatar, Saudi Arabia and UAE).

- 59 -

Table

2.2:

DEMAND FOR MANPOWER IMPORT IN THE MIDDLE EAST (Thousand)

Economic Activity

1982

1983

1984

1985

278 22.5

333 19.8

386 15.9

445 15.3

504 13.3

57 3.7

60 5.3

61 1.7

63 3.3

66 4.8

173

194 12.1

219 12.9

249 13.7

287 15.3

330 15.0

50

58 16.0

66 13.8

77 16.7

89 15.6

103 15.7

Construction % increase

737

744 0.9

729 -2.1

726 -1.4

739 1.8

771 4.3

Trade & Finance

368

391

414

442

476

515

6.2

5.9

6.8

7.8

8.2

247 1.2

251 2.6

257 2.4

263 2.3

269 2.3

Agriculture % increase Mining/oil % increase Manufacturing % increase Utilities % increase

% increase

1980 227

55

Transport % increase

244

Services

728

%incr:>ase Total

% increase

2,582

1981

806

881

955

1,048

1,151

10O7

9.3

8.4

9.7

9.8

2,775

"i953

3,153

3,410

3,709

7.5

6.4

6.8

8.2

8.8

Source: Z. Ecevit and J. Socknat: Labour Migration Study, World Bank/I.F.C., September 7, 1979. 2.22 The level of remittances in Bangladeshmay record a higher growth rate because of a possible increase in the level of earnings of the existingmigrants after they acquire more skill and experienceand a higher level of savings after the migrants, most of whom have gone to the Mid,dle East in the recent past, settle down in their new places of work. Some increasewill also occur when these migrants start returning to the country with their accumulated savings on expiry of contract period. The future level of remittances will also be influencedby the Governmentpolicies with regard to use of remittancemoney, taxation, investmentfacilities,etc. No less important is how the migrants would assess the economicand political outlook of the country. Removal of exchange controlby the British Governmentwill also have a favourable impact on the flow of funds from that country. 2.23 It is extremelydifficult to make even an intelligentguess as to what the level of migrants' remittances in coming years would be, but it is likely that the volume of remittanceswill continueto reach higher levels at least

- 60 until 1985. Based, however, on the projectedc demand for manpo-Terin the Middle Eastern and.North African countries, and assuming a more or less steady flow of manpower from Bangladesh to those regions at the current rate, past trends of the migrants' remittancesand other factorsmentioned above, it would be realistic to expect an increase in the level of remittanceby 25% in 1980 and 20% in 1981; from 1982 onwards the gro:bthrate is expectedto stabilize around 15% per annum. On this assumptionthe followingTable is an attempt to show what the level of remittances during the next six years would.look like. Table 2.3:

ESTIMATE OF FUTURE REMITTANCESIS BANGLADESH (Taka in million) 1980 1981 1982 1983 1984 1985

3,750 4,500 5,175 5,951 6,483 7,870

2.24 Appendix Table 20 show;-:i the country of origin of funds received under the Wage Earners Scheme during the period from 1977 to September 1979. j The inflow of migrantst remittances from various regions show that Bangladeshi workers in the U.K., traditionallythe major source of foreign exchange earnings from remittances,now contributeless than the new migrants in the Middle East. The changingregional pattern of remittances is shown in the followingTable: Table

2.4:

Year

U.K.

1977

603.93 (70.61%)

191.36 (22.37%)

60.06 (7.02%)

1978

729.10 (47.55%)

650.96 (42.45%)

153.36 (10.0C%)

1,533.42 (100.6o)

1979

666.78 (39.66%)

821.56 (48.87%)

192.91 (11-47%)

1,681.25 (100io.)

(To Sept.)

j

REGIONALPATTERNOF REMITTANCESIN BANGLADESH (Taka in million) Middle

East

Others

Total 855.35 (100.C%)

The Table does not bring out the entire position of migrants' remittances because it does not reflect foreign currencyinstrumentslike travellers cheques, currencynotes and drafts brought in person by migrants while coming to Bangladesh on vacationsletc. It also preserts a somewhatdistorted picture in the sense that many Bangladeshiworkers in the Middle East route remittances through third countries,notably the U.K., which cannot be readily identifie( yrith reference to the court-ry of origin.

- 61 -

2.25 A comparison of the present level with the pre-liberation level of remittances in Bangladesh shows some in-Gteresting results. During the period prior to the liberation of the country in 1971, foreign exchange remittances from overseas Bangladesh nationals, mostly people from Sylhet settled in the U.K., were merely a trickle when compared to the present level of remittances. The following Table brings out the level of remittances per month under the Pakistan Home Remittances Bonus Scheme, Bangladesh's initial scheme (the Home Remittances Premium Scheme) and finally the existing Wage Earners Scheme. Table 7-.5: A COMPARISON OF THE PRE-LIBERATION AND POST-LIBERATION REMITTANCE LEVEL ITSBANGLADESH

Period July

1969-

Oct. 1971

Aug. 1972May 1975 Jan. 1975Sept. 1979

Scheme

Average Monthly Receipts

Taka

Equivalent+

Home Remittances

Bonus Scheme

£0.30 million

Tk.

9.00 million

Home Remittances Premium Scheme

£0.45 million

Tk.

13.50 million

Wage Earners Scheme

£3.57million

Tk. 107.15 million

+Based on an average exchangerate of £1 = Tk. 30. It can be seen that folloring the introductionof the Home Remittance Premium Scheme in 1972 the volume of remittances sharply increased to produce an average monthly receipt of £0.63 million during the first year of operation of the scheme. However, as pointed out earlier, the widening gap between the official exchange rate and the free market (or unofficial) exchangerate caused substantial diversion of migrantst remittances to unofficial channels chiefly to finance smuggling of consumer goods. As a result, the flow of remittancesfrom the migrants in the second and third years declined to less than £0.4 million a month - a level lower than even the 1969-1970 level of £043 million. Foreign CurrencyAccounts 2.26 Considering the importance of foreign currency accounts in the context of operation of the Wage Earners Scheme, a special survey of these foreign currency accounts was undertaken. The survey covered 720 sample accounts drawn from an overall frame of 42,000 accounts opened by the banks at Dacca, Chittagong and Sylhet up to December 1978. The technique involved selection of a random number from a table of random numbers for a startingpoint. Irom that point, which happened to be number 48, every 58th account was selected for preparation of cards; the survey, in effect, covered less than 2% of all the accounts. The highlights of the survey are as follows:

- 62 -

(a) Geograpnlical distribution. The Table below shows the geographicaldistributionof the foreign currencyaccounts opened by the migrants with oommeroialbanks in Bangladeshby the end of 1978. Number of Accounts

Percentage

Dacca Chittagong Sylhet huIulra

29,654 7,706 4,503 164

70.56 18.34 10.71 0.39

Total

42,027

100.00

The accounts are hea.vily concentrated in Dacca because the ra3-ket for sale of funds froD the accounts is fairly organised in this centre, the facilit.r for opending such accounts with corrmercial banks in most other certres 4s non-existent and the migrants can conveniently open accounts before they fly from Dacca on completion of travel formalities. (b) Time distributionof sample accounts. The Table below shows the distributionof sample accounts with reference to the years they were opened. Number of Sample Accounts

Percentage

1976 1977 1978

39 250 431

5 35 60

Total

720

100

The sudden spurt in the number of accounts from 1977 onwards is partly on account of the steps taken by the Bureau of Manpower, Employment and Training to require the prospectivemigrants to open such accounts before they leave for jobs abroad and partly due to the campaignslaunched by the commercialbanks, especially Sonali Bank, to popularizethese accounts among Bangladeshimigrants in the Middle East. The two man delegationheaded by Sonali Bank's Managing Director which visite3 -liecountries in the Middle East and Gulf areas in early 1977 made special efforts to attract the migrants into the banking system by distributingaccount openine forms among the Bangladeshi workers in those countries.

- 63 -

(c)

Currencywise distribution.

The following is the breakdown of the accounts on the basis of the currenciesin which they are denominated: Number of Accounts

Percentage

U.S. Dollars Pound Sterling

32,593 9,434

78 22

Total

49,0)'-

100

The preponderanceof the dollar denominatedaccounts is explained by the fact that until the removal of exchange control by the British Government towards the end of 1979, U.K. resiclents, includingBangladesh nationals who had been working in that country, were not allowed to maintain accounts overseas, including Bangladesh. (cd)

Skill-ise

distribution.

The following Table by their skills:

is a breakdown

of the

sample account

holders

Number of Sample Account Holders Percentage Professionals Technicians Skilled Labourers Semi-skilledLabourers Unskilled Labouarers Total

86 105 24

12 63 15 3

4.

7

720

100

457

In comparisonto the technical and professionalpersonnel,the share of skilled, semi-skilled and unskilled labourers works out to only 25% of the total number of accounts even though they represent more than 70% of the Bangladeshiwork force abroad. (e) Countrywise distribution. Appendix Table 23 shows the distribution of the account holders by the country of their present residence. As can be seen from the Table, Saudi Arabia accounts for the largest number of the sample account holders followed by UAE, Libya and Iraq. One important feature that emerges from a study of the Table is migrants in UAE account for about 32% of the that Bangladeshi Bangladeshimigrants in the Middle Eastern and North African regions but their share is only 12% of the foreign currencyaccounts maintainedby all the migrants.

-

(f)

64 -

Districtwise distribution. Appendix Table 25 sho:s that the migrants from Dacca district maintain the highest number of accounts (35%), followed by Sylhet (24%), Chittagong (14%) and Noakhali (13%).

(g)

means of transfer. The tabulation below shows the means used by the migrants to send money to the foreign currency accounts in Bangladesh: Niumber of Transactions

1,027

Bank Draft

IMail Transfer Telegraphic Transfer and Cash Total Sale of Remittances:

2.27

Percentage

70

345

24

94

6

1,466

100

Methods and Channels

Migrants do not normally

undertake

import

of goods on their

own account.

They, or their nominees in Bangladesh, sell the foreign exchange remittances in the market. The market mainly consists of nominees of wage earners and importers, the former as sellers and the latter as buyers. Professional middlemen also serve as an important link bes-weenthem in settling the deals. There is no

regular venue for sale and purchase

of currencies;

the bank premises

provide

a

natural meeting ground for the buyers and sellers. Sonali Bank premises have in fact developed initoa sort of marketplace that resembles those of medieval bourse or foreign exchange markets in Vienna, Paris, etc. Here one can hear the kind of commotion that emanates from the floor of a stock exchange. A prospective buyer or seller steppirinto the bank premises woul-d be confronted by a number of people, mostly brokers, waiting to strike a deal with him. The bargains that ensue make it look like a true marketplace. 2.28 The common instruments offered for sale are drafts, travellers cheques and foreign currency notes sent or brought into Bangladesh by the migrants. The buyers deposit these instruments with their bankers who collect ';heproceeds from drawee banks and credit the relevant foreign currency accounts of the buyers. Not infrequently, the banks themselves purchase the instruments on their own account and immediately pay the resultant proceeds to the customers' accounts; a small commission is charged by the banks for this service. Another important medium of transaction is transfer of funds to a buyer from the foreign currency account of the seller. 2.29 A committee was set up in 1977 to arrange disposal of funds through auctions. The committee consists of representatives of some commercial banks with Sonali Bank acting as Secretary of the committee. The objective behind formation of this committee was to help dispose of funds of those migrants who do not have reliable or experienced relations in Bangladesh to help them. The

-

65 -

committee meets at Sonali Bank in the morning hours every working day except Friday to conduct an auction of funds received by the banks the previous day. sent by the migrants of remittances The funds sold in the auction mainly consist without instructions as to how these should be sold in the market, and foreign exchangeremittances received from the migrants through postal channels. The funds sold through this committee account for about 15% of the aggregate remitin Bangladesh from the wage earners. tances received feature of the Wage Earners Scheme, which distinguishes 2.30 An important schemes is that foreign exchange remitit from most other kinds of incentive tances are not absorbed in the common foreign exchange pool of the country. The counterpartforeign exchangerepresentedby balances in foreign currency accountsare kept by the banks in Bangladeshwith their correspondentbanks abroad in separate accounts outside their normal exchangeposition. It means that the country'sregular foreign exchangereserve is not affected by invward exchange receipts under the scheme. Thus, unlike foreign or outward remittances from regular exportsand other kinds of invisible'Zransactions, remittances coming into foreign currencyaccounts do not lend themselvesto the creation of additional local currencyby the centralbank or the commercialbanks. For this reason, foreign exchangeremittances sent by overseasBangladeshnationals cannot be said to be directly responsiblefor exertingany inflationerypressure on the economy. The exchangerates in the 'YageEarners MIarketare determinedprincipally 2.31 oy bilateral negotiationsbetween the buyers and the sellers. In the auctions conductedby the Wage Earners Funds Disposal Committee,the sales are made to the highest bidders. Appendix Table 22 shows the indicativeexchange rates in the Wage Earners Market at the end of each month since January 1977; the official exchangerate of Pound Sterling is also indicated along with the element of premium over the officialrates involved in these sales. On the average, the premium is around 3C% for both U.S. Dollars and Pound Sterling.

D. Migrants' Characteristicsand Problems

Profile of Migrants 2.32 Except for the records on emigrantsmaintained in the Bureau of Manpower, Employmentand Trainin- since 1976, very little is known about the profiles of the migrants and their problems, aspirations,and working environment. Nor do we know the precise nature of the difficultiesthe migrants face to send their money home, to find an outlet for investmentof their savings, what they want to do on return to Bangladeshand how they use their savings. To study these aspects, an ideal arrangementwould have been to interview a reasonablenumber of migrants in various countries selected in accordance vwith an appropriate sampling technique. However, visits to the Middle East could not be undertaken due to fund constraints. Efforts were, therefore,made to interview the migrants returning to Bangladesh on vacation or otherwise. Obviously, this is not a scientificmethod of survey, but the results, particularly relating to their remittances,savings, etc., will provide an opportunityto have

- 66 -

a close look at the migrants. Appendix Tables 26 through 42 contain results of the survey of 189 returningmigrants contactedby the investigators,mainly on the premises of the commercialbanks which the migrants visited to deposit or withdraw money from foreign currency accounts. The important features of the results of the sample survey are discussed in the followin-paragraphs. (a)

Age group. Most of the migrants from Bangladesh working in the Middle East are 26 to 40 years of age (78%). The share of the younger people is relatively small, accounting for only 5%oof the migrants. (AppendixTable 28.)

(b) Number of dependents. The survey confirmed the general belief that most of the Bangladeshi migrants in the Middle East live there -ithouta family. Of the 189 respondents,145 (77%) were living in the Middle East without a family, another 44 had four or fewer dependents, and only 7 migrants had more than four dependents. By contra:st, 177 respondents representing 94%oof the migrants had their dependents living in Bangladesh - 66% of them had dependents numbering four or more. (Appendix Table 29.) (c) Level of education. Forty-nineof the 189 migrants interviewedheld professionaldegrees in medicine, engsineering, etc., another 90 persons either held a professionaldiploma or had undergone formal training in a vocational institute;together they comprised74% of the migrants interviewed. (AppendixTable 30.) (d)

Length

of stay

in the Middle East.

The vast majority of the respondents, representing 80% of the total, lived in the Middle East for a relatively short period - one to two years. Only 208%stayed for more than two years. (Appendix Table 33.) (e) Level of earnings. A clear pattern emerges from comparison of the level of income of the migrants before and after emigration. The overseas job brought J'ortha phenomenalincrease in the level of earnings of the migrants; the level of earnings of each occupational group of the migrants increased more than ten times compared to their earnings in Bangladesh before emigration. Of the 189 migrants interviewed, 63 persons representing33% of the total had been earning above Tk. 20,000 each per month; only 7 persons had been earning less than the equivalent of Tk. 5,000. Profess,ionals and techniciansare the highest paid group in the MiiddleEast while the unskilled labourers are the lo-;estpaid group. (AppendixTables 31 to 34.)

- 67 (f) Expenditure and savings. Expenditure patterns of the migrants reveal that most of them lead a simple life. 66% of the migrants spent less than the equivalent of Tk. 5,000 per month. 50 persons interviewed representing 26% of the total could maintain themselves abroad with the equivalent of only Tk. 2,000 or less. This means that the migrants have a strong propensity to save money. Sixty-one of the migrants could save more than Tk. 10,000 per month each. (AppendixTables 35 and 36.) (g) Method of remittances. Bank drafts are by far the most common medium to transfer money to Bangladesh. 5C%o of the migrants used only this medium to transfer funds, followedby mail transfer (13%). Only 2% of the migrants sent their funds through telegrraphic transfers. 34% of the migrants used a composite of these means to send money. (Appendix Table 37.) (h) Time taken to send money. The survey revealed that considerabledelay takes place in sending funds to Bangladesh. Remittance through drafts, the most common medium, takes 37 days on the average,while a mail transfertakes a period of 7 seeks. 2% of the migrants who used telegraphic transfers did not have a better experience; sometimes it took 37 days for their remittances to reach beneficiariesin Bangladesh. (AppendixTable 38.) (i) Source of employment. 54% of the respondents secured their jobs through the Bureau of Manpower, Employment and Training; relations abroad arranged employment for 12%; recruitingagents were responsiblefor 11%; 11% of the migrants secured their jobs through their own efforts. (Appendix Table 39.) (j) Investment. The survey lends credence to the popular belief that migrants' funds are mostly used to purchase land and building. Of Tk. 1.56 million investedby the migrants interviewed,54% of the amount had been invested in land and building, 35% of the money was kept in depositswith banks. Investment in industrial activities claimed only 5% of the amount; 5%owas expended on business. Investment in agriculture,the vital sector of our economy,had only 1% of their investment. (AppendixTable 40.)

- 68 -

(k) Expected period.of stay abroad. A good number of migrants working in the Middle Eastern region, expeciallyIran, would like to return to Bangladeshwithin a period of one year. They represent 37% of the migrants interviewed. Most other migrants would like to return to Bangladeshwithin 2 to 5 years; only 7% of the migrants expressed their desire to stay abroad for more than 5 years. (Appendix Table 41.) (1) Future plans on return to Bangladesh 43% of the migrants would like to go back to their old pro-

fessions. A surprisingnumber of 52 (391%)wanted to introduce private bus service. (AppendixTable 42.) RemittanceProblems and Possible Remedial Measures 2.33 The Middle Eastern region continuesto present what looks like a nagging problem for remittance of money by Bangladeshimigrants working in that area. The problem is accentuatedby inadequateand often faulty arrangements in Bangladesh for disbursementof funds by the banks and post office. The efforts to increasethe level of remittances from the migrants may, therefore, necessarily begin with the introductionof suitable physical facilitiesfor quick transfer of funds. Otherwise, illegal currency operatorswill continue to siphon a;wayfrom the official stream a big chunk of remittable funds. 2.34 Delay in receiving the remittancesby the dependentsin Bangladesh constitutes one of the most irksome problems the migrants face in the Middle East. A study of the foreign currency accountsreveals that on the average a period of 16 days intervenesbetween the date a bank draft is issued by a bank abroad and the date it is credited to a foreign currencyaccount (Appendix Table 25). Another two weeks or so elapse before the dependent,especiallyif he lives in a remote area, receives the money after disposal of the funds in the market. Our survey results showed that a remittance on the average reaches the bank in about 37 days time. The causes for this inordinate delay are many. In the following paragraphsan attempt will be made to identify them and to suggestremedial measures. 2.35 Inadequate knowledge of remittance procedure. A large number of migrants from Bangladesh consist of people who are not rellacquaintedwith the remittanceprocedure. Educated migrants, as well, are unaware of the technicalities involved in sending money. Many of the 189 migrants interviewedwere not even aware of the services the banks could render for disposalof their funds through auctions. Again, many migrants send money by means of bank drafts or similar instrumentsdrawn on and payable by banks in third countries,notably in the U.K. or U.S.A., rather than domicilingthese instrumentsfor payment by banks in Bangladesh. Encashment of drafts drawn on banks in third countries presents special problems, because the banks in Bangladesh send these drafts abroad for collectionof proceeds through their own overseasbranches or correspondents;the customers are paid only when the proceeds are collected. The time involved for collectioncould be fairly long -- usually more than a

- 69 -

month. A migrant would use such a draft because firstly,he does not know the relative advantages of differentkinds of instruments,and secondlyhe usually goes to a bank near his place of work which may not have a correspondentbank in Bangladesh on whom a draft could be issued. The initial efforts at encouragingremittances should, therefore, concentrateon a publicity campaign among the Bangladeshi communitiesto educate them on correct remittance procedures,to inform them of the facilitiesavailable in Bangladesh for disposal of funds and finally to acquaint them with the opportunitiesavailable in Bangladesh for investmentof their savings. As a starting point, a brochure :iritten in easily intelligibleBengali language should be circulatedamong the existing and prospectivemigrants. The brochure should contain the names and addresses of the banks in the Middle Eastern countrieswho have correspondentrelationships with their counterparts in Bangladesh. Bangladeshi Missions abroad could also chalk out a systematic programme to regularly brief the migrants on remittance proceduresand the opportunitiesfor investmentof their funds in Banglade sh. 2.36 Language problems. As many as 36 of the 189 migrants interviewed mentioned the difficultiesthey encounteredwhen they had to fill out remittance forms written in Arabic language. Lack of knowledge of this language also stands as a stumblingblock for communicationwith bank personnel manning the remittance counters. In fact, the problem of languagefollows the migrants at every step. It is also one of the reasons why Bangladeshi workers, who are otherwise efficient, sincere and hard working cannot successfully compete for better jobs with their Arabic speaking counterparts from other labour supplying Arab and non-Arab countries (Egypt, Jordan,Yemen, Lebanon, Sudan, etc.). The problem defies a quick solution,but the Bureau of Manpower may arrange a short course on Arabic language for each batch of emigrants selectedfor jobs abroad. The recruitmentpolicy of the Bureau for overseas jobs may also be oriented with a bias in favour of applicantspossessingsome degree of proficiencyin Arabic language. This will inevitably serve as an encouragementfor the job applicants to acquire at least a working knowledge of the language. 2.37 Non-cooperation of foreign bank personnel. Language barriers apart, foreign bank personnel generally do not cooperate with the migrants trying to send their remittances, especially when they are small amounts. Many migrants reported misbehaviour of the bank officials handling the banking counters. This points to the need for establishing branches of Bangladeshi banks where there are reasonable concentrationsof Bangladeshnationals. If, however, setting up a branch is not economicallyviable or local laws do not permit setting up such a branch, an officialfrom one of the nationalisedbanks in Bangladeshmay be posted in each of the important centres to assist the migrants. The officialmay be attached to one of the local banks, but, if such an arrangement cannot be made, he may be attached to the local BangladeshMission. The authoritiesin the banks in those places may also be persuadedto hire Bangladeshi staff. 2.38 Telecommunicationlink. Janata Bank has establisheda direct teleprinter link with its Abu Dhabi branch. This has facilitatedquick transfer of remittancesfrom Abu Dhabi. The banks in Bangladesh, includingbranches of foreign banks operatingin this country,may be encouragedto establishdirect

- 70 -

teleprinter links with their corresponderts this purpose the Telegraph and Telephone

in the Middle Fastern regions and for Department could extend a helping

hand.

2.39 Loss of remittances. Foreign bank drafts are sometimes lost or may be stolen in transit, mainly from the post offices in Bangladesh; the lost drafts means. Funds are also at times withare quite often encashed by fraudulent drawn from foreign currency accounts against forged signatures. Local money orders sent by the banks to the migrants' dependents sometimes do not reach the payees or they are paid to the wrong persons. Letters to the editor columns in the newspapers attest to the gro,wing incidents of loss of migrants' remittances. Disquieting reports are also received from the migrants that letters sent by them to their dependents are read by indiscreet officials in the post offices to keep track of their remittances; this knowledge is often used to defraud the unof the post office, armed with suspecting dependents. For instance, an official of previous letters written by a migrant could subknowledge about contents stitute one of the subsequent letters purporting to advise his wife, who could. be an unsuspecting and unlettered woman, to pay money to a certain person who of the criminal minds does not end would be approaching her. The ingenuity here; it reportedly embraces the -hole gamut of dirty tricks contrived to dupe families with coercion2 tIreat, blackn
1978. Local Banks Sonali Janata Uttara Agrani Rupali Pubali Total

Bank Bank Bank Bank Bank Bank

Number of Foreign Currency Accounts 21,122 11,757 2,385 770 677 387 37,098

Percentage 56.94 31.69 6.43 2.08 1.82 1.04 100.00

- 71 -

With the exception of the Bank of Credit and Commerce International, Ltd., foreign banks in Bangladesh have shown little interest in handling remittances even though their branches, subsidiaries and affiliates in the Middle East could enable them to ti;kea lead. The statistics of foreign currency accounts maintained by them are sho-n below:

Foreign Banks

Number of Foreign Currency Accounts

Percentage

3,051

61.90

Bank of Credit and

CommerceInternational Grindlays Bank

873

17.71

American Express International Banking Corp.

852

17.29

Habib Bank Ltd.

147

2.98

6

0.12

Chartered Bank

Total

4,929

100.00

The statistics show that while ome banks are trying to avoid handling wage earrsrs' remittances, a few banks like Sonali Bank and Janata Bank are facing mounting pressures of work, which eventually affect their standard of service. All banks, especially the nationalised banks, need to be persuaded to share the remittance work. Their borrowing entitlement from the Bangladesh Bank and the share of aided letter: of cred.itbusiness could, among other things, be linked to the share of migrants' remittances handled by the respective banks. Simultaneously, the banks should make suitable arrangements to handle the remittances efficiently. Among other things, the banks should arrange to keep the migrants informed as soon as the remittances are cred.itedto their accounts or paid to the beneficiaries and look into the complaints from the migrants with a sense of urgency. 2.41 Disposal of remittances. Perhaps the biggest problem the migrants and their dependents face relates to the sale of foreign exchange remittances in the Wage Earners Market. As explained earlier, the bank undertakes this responsibility, but for various reasons the migrants have largely refrained from m-aking use of this channel. Firstly, the arrangement for sale of funds through the banks is not widely known. Secondly, the banks normally take an unusually lon; time to sell the funds through the auction which remains suspended sometimes for days at a time. Finally, the price obtained on the sale of funds in the auction through banks is generally believed to be lower than the price that can be obtained on sale through bilateral negotiations. The Wage Earners Market in general in particular is controlled by a few brokers. They have formed. and the auction a sort of cartel to dictate the auction price which, curiously enough, serves as

- 72

-

an index for transactions that take place outside the auction. j When the members of the syndicate intend to accumulate funds they close their ranks and suppress the auction price to buy funds not only from the auction but also from other sources more or less at the same price. When they have succeeded in accumulating sufficient funds, they deliberately push up the price in the auction with the intention of unloading the accumulated funds to the users outside the auction more or less at the auction price. Erratic demand for Wage Earners Funds in the market also often causes frequent gluts and the prices (the Wage Earners Rate) come d-ownsharply which in turn reduces the inflow of migrants' remittances. The arrangement for sale of funds outside the auction is anything but satisfactory. The market is predominated by a large number of small brokers who use the bank premises to search for migrants or their dependents who have salable funds. In their anxiety to receive the money as quickly as possible and to avoid the trouble of attending to the banking formalities, the migrants or their dependents usually settle for a price which could be substantially lower than the real price. Urgent steps are needed to rid the market of undesirable elements, to introduce an element of stability and uniformity in the prices, to disintegrate the monopolistic hold, to take over the surplus fund that the market cannot absorb and above all to ensure a fair return to the migrants. These objectives could be achieved simply by periodically fixing the floor and ceiling rates for Wage Earners Funds and entrust one or more of the banks with the responsibility of buying and selling funds at the specified rates. The buying and selling rates could be fixed with a wide margin so that brokers couldi carry out transactions at rates finer than the floor and ceiling rates. Alternatively, a narrow margin could be prescribed which would-automatically eliminate the brokers from the Wage Earners Market. The latter arrangement is not suggested in the sense that this will inevitably require the banks to handle all transactions small as well as big -- leading to extra work. 2.42 Whichever arrangement is chosen, three important issues would have to be sorted out: (a)

Who would bear of Wage Earners

(b)

Who w.:ould provide

(c)

How would

the

the risks Funds?

of fluctuations

the

funds

exchange

rates

needed

to

in

carry

the

rate

out

the

of exchange

operation?

be fixed?

As to the first question, the banks could set aside a part o-07 1eir exchange profits arising from sale and purchase of Wage Earners Funds to absorb the losses arising from time to time. The Government or Bangladesh Bank might, however, compensate the banks for the losses that cannot be met from the reserve. The funds for carrying out their operations should be provided by banks out of their own resources, but in the event of a liquidity constraint, Banglad-eshBank might come to their aid. The rates could be fixed in keeping with the market conditions;

j

The sales involving transfer of funds to a foreign currency account is permissible, but when the buyer does not put the money into such an account, the transaction is illegal.

- 73 -

a permanent committeemight be appointed to keep a constantwatch iver supply and demand of the Wage Earners Fund and revise the rates from time to time at an equilibriumlevel. 2.43 Taka drafts. Recipients of foreign exchangeremittances are located all over the country,but the markets for the disposal of these remittancesare located in Dacca with subsidiarymarkets at Sylhet and Chittagong. The recipients in other areas are, therefore,required to travel to these places to find buyers of foreign currency drafts and other kinds of instruments received from migrants. Migrants visiting Bangladeshare also required to stop over at Dacca for a couple of days to sell foreign currency brought into the country. To remove these difficulties,the Bangladeslh Ambassadorto UAE has suggested that Janata Bank branches in UAE could issue Taka drafts to cover home remittances of the migrants. The amount of a draft would be worked out at the Wage Earners Rate which would be supplied by the bank's Dacca office daily or as frequently as possible. It would be payable at any of the bank's network of branches in Bangladesh according to the wishes of the migrants. Wherever possible, a similar arrangement could be made in other locations in the Middle East by enlisting the support of the local banks there. 2.44 RemitLancebonds. The idea of Taka drafts could be further refined to make the remittance job easy for everyone. In its refined form, a special kind of instrumentor remittancebond could be sold to Bangladeshi migrants through overseas branches of correspondents of Bangladeshi banks. If necessary, these sales could be arrangedby posting an official of the bank in the Bangladesh Missions. The instrumentcould be printed with fixed denominationsin Taka and payable to the bearer at any of the branches of the bank issuing it; its sale price in foreign exchan-e would, like Taka drafts, be determined at the Wage Earners Rate. An additional feature could be ad.ded to the remittance bond by making a provision for payment of interest at fixed rates for the period a bond is held by the holder before encashment; the rates could be made progressively higher for longer periods. This scheme should serve as a natural incentive for the migrants and their families to pursue saving habits. E.

Effects

of Remittance

Money on Money Supply

Impact of Remittance Supply 2.45 An attempt is made here to evaluate the impact of migrants' remittances on domesticmoney supply. One of the causes for the higher inflation now prevailing in the country is popularlybelieved to be the migrants' remittances. As mentioned earlier, migrants' remittancesare not taken into the country'sforeign exchangereserves. Neither the Central Bank nor the commercial banks maintaining the accounts can create local currencyagainst the deposits maintained in foreign currencyaccounts. As such these remittances do not add directly to the money supply. Ho:yever,there is an indirect impact on the total money supply in the country which tends to influencethe general price level. At presentmost of the imports under the Wage Earners Scheme are made against irrevocableletters of credit. Under the existingrules, before letters of

- 74 -

cred.it can be opened, 10c% margin in foreign exchange has to be kept on deposit by the importer at the bank opening the letter of credit. The importer has to purchase this foreign exchange from the account holder or his nominee. There is a time lag ranging from a few weeks to a few months before goods against the letter of credit reach Bangladesh anda are available in the market. Meanwhile, the Taka fund receivedby the beneficiary or the remitter finds its way into the market. If the Taka fund is kept on deposit with the banks this enlarges the resourcebase of the banks and contributesto an increase in money supply. On the other hand, if the funds are spent by the beneficiary on shopping, this exerts pressure directly on supplies in the market. Commercialbanks are also allowed to extend credit at the official rate to the importersand members of the Stock Exchange (brokers)who deal in the Wage Earmers Fund. This also generates an additionalmoney supply in the economy. However, such loans are negligible comparedto the overall bank credit. 2.46 Transfer effect. Through sale of funds in foreign exchange,Taka funds are transferred from importers to the remitters or beneficiaries. The beneficiariesby and large belong to the low income group, at least until they start receiving the remittancemoney. They make efforts to improve their standard of living and in the process they begin to obtain various consumer items which are normally in short supply in the country. After the initial spending phase on consumer items is over, they start buying land. Investment in land can in no way be construed as capital investment since it does not give rise to any addition to productivecapacity. The net result is that in the rural area where there is a concentrationof such migrants, land prices go up so high that small farmers and farmers with very little land are tempted to dispose of their holdings at a lucrativeprice instead of cultivatingtheir uneconomicholdings; in the process they themselvesswell the ranks of landless peasants. The migrants -hoare relatively sophisticatedand ed.ucatedtry to acquire a piece of land in any of the urban centres like Dacca, Chittagong, Khulna or Sylhet and constructresidentialhouses either for their o-:neventual accommodationor for lease. This also cannot be called a very productiveuse of funds, neither this sort of house construction adds to the improvementof the overall housing situa'tionin a land-starvedplace like Dacca as the construction cost has become prohibitive. The rents charged for the houses are prohibitive and consequentlyit does not substantiallylessen the pressure on housing. FTromvarious sketchy studies prepared. by different institutionsfrom time to time it has been observedthat very few people are encouragedto invest in Government Savings Bonds or securities. In the Stock Exchange there are very few scrips which can attract migrantst savings into productiveinvestment. The only economicbenefit that the migrants' transfers have vested on the economy is in the form of balance of payments support by way of enlarged imports, most of which are consumer goods intended for higher income groups encouraging conspicuous consumption.

-

F.

75

-

Use of Remittance Money for Financing Imports

2.47

A major portion of foreign exchange sent by the migrants to Bangladesh is used.for financing imports into Bangladesh undcerthe Wage Earners Scheme. Here is a statistical overview of the goods and commodities imported und.erthe Wa e Earners Scheme followed by a discussion on the impact of these imports on the national economy and the policy choices confronting the import trade control authorities.

2.48

Level of Imports. Appendix Table 44 presents a breakdown of the goods imported annually under the Wage Earners Scheme since the inception of the Wage Earners Scheme. In preparing this Table, an attempt has been made to classify the goods into four major groups: essential consumer goods, inessential consumer goods, capital goods and raw materials. Appendix Table 43 summarizes the annual level of imports in each group along with an explanatory note on the principles observed in classifying the imports into these categories. The following are the annual level of imports under the Wage Earners Scheme; the figures in parentheses indicate the increase in the level of imports compared to that of 1975 - the first full year of operation of the Scheme. Table

2.6:

IMPORTS UNDER THE WAGE EARNERS SCHEME (Taka in million)

1974 (July to December)

104.85

1975 1976 1977

489.37 (100%) 734.39 (150%) 1,058.67 (216%o)

1978

1,479.12

1979 (Januaryto September)

1,460.67

(302%)

Based on the past trend and value of goods imported during the first 9 months of 1979, the index for 1979 is projected to reach the 400% mark denoting a fourfold rise in the level of imports in comparison to that of the base year

(1975)-

2.49

Composition of goods. There is no limit to the quantity and value of goods that an individual merchant can import under the Wage Earners Scheme. The list of goods imported.under the scheme covers a wide variety of items including those not licensed for import against normal foreign exchange earnings. This laissez faire attitude in the import trade und.er the Wage Earners Scheme quite often generates controversy from economic, social and.even ethical points of view. There are strong advocates for monitoring these imports to protect domestic industries, at least on a selective basis, and to cut down importation of luxury goods. Before engaging in a discussion on this aspect of the import policy, the composition of goods that are imported under the Wc&e Earners Scheme needs

to

(a)

be

examined.

Essential consumer goods. In 1978 the import classified as essential consumer good.s worked million

representing

only

about

13%

of

the

value of goods out to Tk. 194.69

total

value

of

- 76 -

imports under the Wage Earners Scheme. Second-hand clothes occupied a very prominent position in the list of essential consumer goods. Second-hand clothes, which consist mostly of warm clothing and are used by the poorer section of society, accounted for 8y,% of the total import value of essential consumer goods. Next in importance were betelnuts, which accounted for 14% of the import value of goods in this category. (b)

Inessential consumer goods. This group, which accounted for 17%oof the aggregate value of goods impcrted under the Wage Earners Scheme in 1978, included assorted goods generally used

by consumers belongirg to relatively higher income groups. Prominent items in this group were motor cars (which accounted for 35% of the aggregate value of inessential consumer goods imported in 1978), spices (11%),locks (1C%), fruits (9%),filter tip ciearettes (5%) razor blades (3%), smokers requisites (3%), tyres and tubes (3%o, t6ilet requisites (2%), and bamboo (2%). (c) Capital oods. Capital goods raniced lowest in terms of value; in 1978 the import value of goods belonging to this category accounted for only 9.4% of the overall value of all import s under the Wage Earners Scheme. In this list, transport vehicles like trucks and buses, tugs and passenger vessels, and marine diesel engines accounted ^or 24% of the total value of imports in thiz group. Factory machines were next in importance accounting for 21 .6%of the value of capital goods imported in 1978. (d)

Raw materials. the wage earners broadly classified

Contrary

to popular belief,

funds are used for as rawf materials,

importation including

the lion's

share of

of what can be intermediary

goods. In 1978, commodities belonging to this group accounted for 64 of the overall value of all imports under the Wage Earners Scheme. Cotton and synthetic textiles claimed about 35%O of the value of all imports in this group and 22% of the a-gregate value of all imports under the Wage Earners Scheme in 1978. Also important were cotton yarn (25%), dyes and chemicals (7%) and industrial spares (6%). 2.50 The preponderance of luxury imports in the Wage Earners Scheme can be clearly seen from the above data. Approximately 13%of the foreign exchange remitted by the migrants is used for importation of inessential consumer goods. A second look at the list of raw materials imported under the Wage Earners Scheme would also establish that a large amount of the wage earners' foreign exchange remittances is used to import raw materials that are eventually converted into luxury goods. A reasonable estimate would put the share of finished luxury goods and raw materials for luxury goods at about 5C% of the total value of goods imported under the scheme. An important feature that emerges from a studiy of the trend of imports is that imports of inessential consumer goods in 1978 increased by 44% over the level of imports in the preceding year, while the essential consumer goods recorded a fall of 23% during the same period.

- 77 -

2.51 Viewed in the context of the lKaborate supervisionand control over imocrts into Bangladesh under the Cash Licencing Scheme, the laissez faire al-titude urder the Wage Earners Scheme appears to be rather paradoxical. The situation is perhaps borne out of a mistaken belief that migrants' remittances are a.wirndfallwhich could be squanderedaway on frivolous pu-pcses. Despite what is told about the virtue of freedom in the sphere of import tra'1.>, there is a strong case for monitoring these imports principallyon the fo-Ic.,ing grounds: (a)

Unhcl-<;12- imports retard growth aa-id :-xpan ion of local indlustries. It is true that the local demand for certain items is far too small to set up economically viable industrial units, but there are, maxy irt.'.stries which could be identified and protected. from the competition of imported goods. In the absence of conscious efforts to develop and pro{-ect the domestic industzn-, the country will find it increasingly difficult to break away from the dependenceon imported items. Worse still, once the coisumers develop the taste for imported goods, they will be reluctant to change to domesticallyproduced goods even if the increasiein the size of dema2lC. (-;c.e.rtain categoriesof goods Could otherwise justify establishment of domestic units for production of those items.

(b) Increased demand for foreign exchange arising from inclusion of a large.number of inessentialitems in the list of importable goods under "he Wage Earners Scheme is responsible for lowering the open market value of Taka beyond its official value. This has the effect of negating the efforts ms.deto unify the unofficial and official exchange rates through excharj,•e and import controls- a goal cherishedby the monetary authority of every country. Higher prices of foreifLY, ¢,cchan-ge in the Wage Earrers Market also serve as a damper to the import of otherwise desirable investmentsand essential goods. It is important to undertake an indepth study to measure the effects of wage earners' imports on the economy of the country and to suggest measur. to channel the foreign exchange sent by the migrants into most productive uses. G. RemittableSavings and Actual Remittan
2.52 According to a rough estimatebased on the number of Bangladesh nationals (178,521)who had been working abroad by the end of 1978, inclm'Jni.g the migr-vetts in the U.K., and the a-mountof foreign exchange (equivalentto Tk. 2,120 million) oenr . he,r:TVythese migrants during that year, the average level of remittance per migrant works out to Tk. 990 per mionthor T-Ja 11,68e per year-. This figure is far too low compored to the amount a migrant is ab].e to save out of his earnings. This phenomenonalso points to the possibility of increasin_tie :f'Low of remittancesby providingadequate incentivesto the Bangladeshiworkers to '-eynt money home and by creatingadditionaloutlets for investmentof the money sent.

- 78 -

2.53 The available data are inadequateto estimate the level of savings per worker. The 189 Bangladeshi migrants in the Middle East who were interviewed in the middle of 1979 for the purpose of this study had an average earning of Tk.

165,714 (Vs$10,691)

per year, while the average savings had been

Tk. 7,000 per month or Tk. 84,000 (US$5,600) per year. This means that a migrant saves roughly 51% of his earnings. The propensityto save would be still higher among the unskilledworkers. The estimate of Perwaiz (Pakistan: Home Remittances 1979, p. 66) showed that only 48%is spent and 60C%is saved.

2.54

Evidently, the level of savings of the migrants more or less permanently settled in places like the U.K. and the U.S. would be lower than the percentage of the earnings saved by the migrants in the Middle East and North Africa who tend to be temporary workers who loek forward to returning to Bangladesh after they have been able to save a reasonable amount of money. Even if we limit our calculationsto Bangladeshimigrants in the Middle East and North Africa, it would be clear that they are not remitting their full potential. From Appendix Table 20 it can be seen that remittances through banking channels in 1978 from this area amounted to Tk. 651 million. Adding 28% for direct imports, the total estimatedremittancesworks out to Tk. 833 million. Based on an estimatednumber of 93,521 workers resident in that area in 1978, the annual average remittanceper worker was only Tk. 742 per month or Tk. 8,907 per year. Even if it is assumed that all workers are unskilled who are known to earn at least US$3,600 (Tk. 55,800) per year and save US$1,836 (Tk. 28,458) which is 51% of their income, it would appear that they are remitting only 31% of their savings. 2.55 An obvious explanationwhy the migrants are not remitting their full potential is that a sizeableportion of their funds are diverted to the black market principallyfor the following purposes: (a) Goods and commoditiesworth millions of Taka are imported into Bangladeshby the incoming passengersfree of d.utyunder what can be called very liberal baggage rules. Although there are certain limits on the value of goods that a passenger can import these limits are more often than not exceeded. There are even reports that goods are imported on a commercialbasis free of d.utyin the garb of personal baggage. (b) A large amount of the foreign exchangeearnings of the migrants are suspectedto be used to finance goods smuggled into Bangladesh. Gold is by far the major item smuggled into the country, followedby wrist watches and similar items of high value compared to their bulk. (c)

Because of heavy customs duty and sales tax on most items imported into Bangladesh there is always a strong tendency to under-invoice these imports. The amount constituting the actual price and the invoice price is paid out of foreign exchange acquired in the black market.

-

79 -

(d) Export of some items like jute and jute goods are subject to a minimum export price. When the internationalprice level goes below that price, the exporters generally undercut the price but show the minimum export price on the invoices. The difference is paid to the buyers by acquiring foreign exchange in the black market. (e) Sale proceeds of propertiesand other assets, particularlyof the non-residents,are transferredthrough the black market. The foreign exchange for this purpose chiefly comes from the currency racketeers who are engaged in clandestinely mopping up remittable savings of the migrants. H.

Measures

to Increase

the Flowf of Remittances

2.56 The most talked about adverse effect generally attributedto migrants' remittancesis that the income in Bangladesh in the hands of the migrants and their dependentsis used for unproductivepurposes, chiefly for purchase of real estate. Another disquietingfeature is that many migrants refrain from sending money to the extent they ould have otherwise done if suitableinvestment opportunities were available in Bangladesh. There cannot be two opinions about the need for opening new investment outlets to tackle the twin problems of indaucing the migrants to send more remittances and to divert the remittancemoney to productivechannels. 2.57 Unfortunately,odds are very heavy against attractingmigrants' savings into productivechannels. The market for traditional investmentpapers like stocks, shares and debenturesare practicallynon-existent;nor do these securitiessuit the habits of the vast majority of the migrants aho come from relativelyunsophisticatedbackgrounds. Government savings certificatesoffer attractive yields, but due to lack of dynamism in the marketing methods and inappropriate sales pitches,these papers remain out of reach of most people. The same -oes for the postal savinCs certificatesand other savings programmes of the Postal Department. The only thing that comes nearer to the preference of most people is the Prize Bond, a kind of bearer bond on which prizes are given through draws held every second month. The InvestmentCorporation of Bangladesh and lately the InternationalFinance and InvestmentCompany are reportedly trying to provide investmentand portfoliomanagement servicesto both private and institutionalclients,but none of them have been able to make a real breakthrough. Their principalhandicap is the non-existenceof suitable opportunitiesfor profitable investmentof mutual funds. They also lack expertise to handle the complex investmentproblemswhich produce maximum benefits for the customers. Despite the obvious limitations,certain areas of investmentactivities could be identifiea. to secure participationof Bangladeshi migrants. These are discussed in the followingparagraphs. 2.58 Investmentin industries. Bangladesh national working abroad are now given adequate fiscal facilitiesand incentivesto set up industriesin Bangladesh. However, the responses from Bangladeshnationals to this overture

- 80 -

are far from encouraging.

This could mainly be attributed to:

(a)

Lack of information about opportunities available in Bangladesh for establishment of industrial units.

(b)

Inadequate information of market conditions.

(c)

Inadequate facilities available in Bangladesh to carry out feasibility studies and to draw up project plans.

(d)

Lack of knowledge about the procedure and requirements involved in securini'permission from the Government departments, obtaining loans from the financing agencies.

(e)

Cumbersome, dilatory and irritating procedures encountered by the entrepreneurs trying to obtain permission to set up industries, to secure allotment of land, to get physical facilities like construction materials, water and power connections, and.so on.

The problems mentioned cannot be overcome easily and quickly, but the very least that can be done is to entrust one single agency to ork .ith various Government and semi-Government agencies and as ist the migrants to take p rt in the industrixl activities through a system of what could be called one window service. Other>ise all the pious intentions to draw the migrants into the mainstre.m of industrial activity through fiscal incentives ill come to naught. 2.59 Special bond-. As mentioned earlier, the Prize Bond is the most commonly understood investment paper. It carries with it the dream of a big windfall -- an appeal.that for most people in this country probably outweighs the charm of steady but relatively smaller returns. In the context of the present price structure, its denomination (Tk. 10) is far too small compared to its bulk which creates the problem of storage and handling, especially for the migrants who would like to keep the bonds in their own cu tody. Also, inflation has eroded the vSlue of the prizes several times over. Special kinds of Prize Bonds could be introduced with hi-her denominations, say Tk. 500, and arrangements could be made to sell these to overseas Bangladesh nationals in foreign currency at Wage Earners Rates through foreign branches and correspondents of the banks in Bangladesh and Bangladesh Missions. This scheme could meet with instant success if a few of the top prizes were allotmen-ts of land in the urban areas in lieu of ca-h since practically all migrants, eyspeciallythose in the Middle East, look forward to eventually settling down in Bangladesh. To them, owning land in an urban area is a very strong incentive. 2.60 Other measures. The Saving Directorate may chalk out a special programme to popularize the saving certificate among the migrvnts; wherever possible, the saving certificates would be made physically available for sale among the Bangladeshi communities abroad. If necessary, additional features could be introduced in the saving certificates to make them more attractive. The nationalised life insurance company, the Jiban Bima Corporation, also needs to step up its efforts to sell insurance policies to Bangladesh nationals working abroAd.

- 81 -

CHAPTER III AN ANALYSIS OF THE IMPACT OF REMITTANCEMONEY ON HOUSEHOLD EXPENDITURE IN BANGLADESH

A. Introduction 3.1 The export of manpower has become an important source of foreign exchange for the country. The foreign exchange earned through this source was second only to the total amount earned by raw jute and jute goods which are the countrylsa major export earners. Since foreign exchange is a scarce resource for the country,export of manpower is considereddesirable on this ground. There is, however, another untested but strong hypothesis in this context which maintains that much ,r the remittancesreceived are squanderedon conspiY;r.1ous consumption, expenditureon unproductiveassets like ornaments,and speculativeexpenditure on land, houses, etc. If true, this hypothesis can have important implicationsfor policies related to the export of manpower. It must be recognizedthat the level of sayings in the economy of Bangladeshis suboptimal,hence, any increase in consump-tion, especiallyby those in the upper income groups, has to be treated as a cost to the society. Moreover, any conspicuousconsumptionin the society is likely to have a demonstrationeffect and lead to social tensions. The social costs associatedwith these secondary repercussionsof increased consumptionmade possible by an inflow of remittancemoney have to be added tc other social costs, so that a comprehensivebenefit-costanalysis of the exyoprtof manpower can be made. 3.2 In view of the importanceof the use of remittancemoney to the economy of Bangladesh,the present study aims at analysingthe expenditurepattern of the householdswhich receive remittancesfrom migrants working abroad. The hypotheses to be tested in the present study can be written as follows: (a) In the aggregate, spendingbehaviour of househol,i.s receiving remittancemoney is different from that of the householdsreceiving no such money. (b) The compositionof spending (and investing)is different for the two categoriesof householdsmentioned above. In other wor('s, out of any increment of income, the first categoryof households spend more on luxury items or non-productiveassets like land, houses, ornaments,etc. (c) The remittancereceivinghouseholds devote a large part of the money they receive to the purchase of the assets mentiored above. 3.3 The paper is organizedas folloiws. Fir-;tthe samplingmethodology and the nethod of generatingdata and the important characteristicsof thiesample are described. After this the first two hypothesesmentionled above are examined while the third hypothesis is taken up in the next section. This section also looks at the various uses to which the remittancemoney is put. Finally some coricluding observaticisare presented.

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B.

The Data and the SamplingMethodology

3.4 In order to look into the expenditurepattern of those household.s which receive remittances from abroad as well as those who do not receive any such income an income-expenditure survey for both types of households was required. For this purpose, a scientific sample was drawn on a national basis and a structured questionnaire was used. The Sampling Methodolg 3.5 Since 1977, the Bureau of Manpower, Employment and Training (IMET) has kept basic informationabout the migrant workers. In order to stud.ythe profile of migrant workers J BIMETdrew a 1o/.sample from its list, and this was taken as the principal source of names and ad-dresses for the household.income-expenditure survey. These 3X000 migrantswere accepted.as the sampling frame for the study. 3.6 The selection of sample households for this purpose was d.onein several steps. The first stage was the selection of districtsinto which investigators were to be sent for interviewing. It was presumed that not more than two or three districts supply a majority of migrant workers, so four districtswere selected for the household survey. Rather than choosing the four leading distr-ictsarbitrarily,a probabilitymethod.was used for this selection. BEMET suppliedthe districtwisedistributionof the migrants of both rural and.urban origin. Working first with the rural addresses four districtsout of a total of 19 were selected in such a way that the probabilityof each being selected is proportionalto the number of addresses belonging to that district. These four districtswere Chittagong,Dacca, Noakhali and Sylhet. In the next stage, the addresses of the selecteddistricts were grouped by thanas in which they are located. The distributionwas such that some of the thanas had a very high concentrationof addresseswhile many had a small number of addresses. In view of this, the thanas were grouped into two strata - one group containingthose with high concentrations and the other containingthose with low concentrationsof adldresses.Finally one thana was selected from each of these strata, again according to the probability method. Thus eight thanas were selected.from the four selected districts into which investigatorswent to interviewhouseholds in rural areas. 3.7 Thus, at the end of the second stage, there were addresses in eight thanas of four districts. It was foiLndthat the number of addresses in the selected thanas was too large compared to the amount of resources available for the study, so the sample size had to be limited further. It was decided that the total number of households to be interviewedin the rural areas would be around 200. The number of housieho >is interviewed from each of the eight thanas was proportionalto the share of addresses located. in it. 2/ Table 3.1 showsi

%/ g/

See Chapter I. There was only one address in one of the thanas of Sylhet district, therefore, it was decided.to exclude this thana fron the survey.

- 83

-

the distribution of sample household-s of the rural were purposively selected by the interviewers from In some cases, however, no reKpondent was found at cases, the interviewers were instructed to substitute the locality on the basis of information obtained Table

DISTRIBIUTION OF SAMJPLEHOUSEHOLDSBY DISTRICT AND THANA

3.1:

District

area. The actual households among the given addresses. ij the given addre ses. In these an address selected from from knowledgeable persions.

and

Thana

RURAL Dacca Nawabganj Tongibari Sylhet Kotwali Noakhali Feni Chhagalnayya Chittagong Raozan Sitakunda Sub-total

N1umber of Households Sub-sample A Sub-sample

B

Total

31 2

31 2

62 4

25

25

50

21 4

21 4

42 8

110 8

110 8

220 16

201

201

402

URBAN Chittagong Dacca

25 51

25 51

50 102

Sub-total

76

76

152

277

277

554

Total

The urban addresses were also grouped into distri ts in which they were 3.8 located. Two districts (Chittagong and Dacca) were selected by the probability method. It was found that all the addresses in these two districts were located in the district headquarters, but they were more numerous than could be inter-

viewed given the limited resources. It was decided to interview 100 households from the urban areas, and. that the number of households to be interviewed from located in each of the cities should be proportional to the number of addresses them.

j/

The actual

selection

of addresses

was done

by random

sampling.

However,

In order to keep biases to a minimum, the actual households should have been selected at random, as was done in the case of urban areas. But even within over a large number of vila thana the households were so widely scattered lages that the administering of the questionnaires over a set of randomly selected households would. have demanded much more time and resources than were available. Distance frorm the thana headquarters waL. the only criterion process. to enter the purposive selection which was allowed

- 84 in those cases where no respondent could be found in the sample addresses,they were replaced by other addressest Sever4-si.xhouseholdswere interviewed from the urban areas - 51 in Dacca and 25 in Chit.afong. 3.9 Households from which one or more worker has migranted to the Middle East countrieswill be referred to as sub-sampleA, and those from whio}1no one has migrated.will be referred to as sub-sample13. A simple method was used to select households in the latter group. Correspondingto each household of sub-sarple A' the interviewersselectedone household from the same loon ty which had a roughly comparablele-velof income but did not have any migrant worker. In this way it was possible to interviewan equal number of households from both rural and urban areas for sub-sampleB. The sample size for the present study is shown below:

The iestionnaire,

Rural

Urban

Total

Sub-sampleA Sub-sample B

201 201

76 76

277 277

Total

402

152

554

Survey and Data

3.10 In order to collect necessary data from the sample households, the interview method was used and a structured questionnaire was given to the interviewers. The questionnaire was designed to generate data which would help test the hypotheses mentioned above. In addition, an attempt was also made to assess the attitude of the respondents towards investmentsfor productivepurposes, and to identify the directionsalong which special encouragementmay be provided with a view to promoting productive investment. The questionnairecontained the following types of questions and items of investigation: (a) Questions about the migrant worker(s). (b) Questionsabout the members of the household. (c) Questionsabout the income of the household and its sources. (d) Questionsabout the quality of housing and other indicatorsof the level of living. (e) Questions about the ownership of land and other assets. (f) Questionsabout the expenditurepattern of the household. (g) Questions about the purchase of consumer durables. (h) Questions about the purchase of land. (i) Questions about the constructionof houses.

- 85 -

(j) Questionsabout investments for purposaz like agricu3'ure,industry or business. (k) Questions designed to assess the attitudcetowards investments for productivepurposes. The questionnaire was pretested in two roundas - the first round.in MAarch1979 and the second round. in April 1979. Since sample addresses had not been selected before the first round of pretesting, there were two alternative ways of selecting the respondents. The first was to collect the rames and ad.dresses of nominees from banks having foreign currencyaccounts of the migrants. The second was to visit areas from which large numbers of migrants are known to have left the country and select a few respondeiits from among the householdshaving relations working abroad. Both these methods were used.by the interviewersand 20 householdswere interviewed. 3.11 Several difficultieswere faced.in reaching the respond.ent through the first method.. First, the names and.addresses of the nominees could only be obtained from the account opening forms in the banks; and it was administratively difficult to find.out addresses in this way. Second, in many cases, no norminee was listed. Third, the nominee was not always competent enough to become a respondent, for in some cases, the nominee was just an intermediarythrough which the remittancemoney was passed.on to the ultimateusers, 3.12 In the light of the expe_'riences gained during the first pretesting, a second.round of pretestingwas und.ertaken during April 1979. This time sarmple addresseswere available,but the experiencewas quite interesting. Ten addresses were selected.from a rural area and.8 from an urban area (all of them were from the large sample drawn by IHMETand.referred.to earlier)where familie.-. of migrants could reasonablybe expected. to be living. Surprisingly,no such family was found in any of the addresses. The urban addresses did have residents but they had no knowledge of the migrant who recorded the address with BIYET. The rural addresses appeared even more dubious. However, the investigatorssucceededin interviewing some familieswho receive remittances from abroad. In most cases, the local people of the area they visited helped them locate such families. One important lesson which was learnt from this pretestingwas that some of the migrant workers do leave fictitiousaddresses at BMET, and these addressesmay be of no help in. 2eaching the families of migrant workers. That is why the investigatorswere instructed.to replace the samlpleaddressesby other respondentswhenever no respond.entwas found in the sample addresses. 3.13 Modificationswere made in the questionnairein the light of experiences gained d.uringpretesting. Necessary instructionswere also provided with the questionnaire. Investigatorswere trained not only at the desk but also in the field, through trial interviews. Only after they had demonstrateda reasonable degree of efficiencyin filling out the scheduleswere they sent to do the actual survey. This method of training the investigatorshelped to keep the number of rejected ochedulesto a very low level. In all) only six scheduleshad to be rejected for various reasons. However, difficultieswere still faced in filling out the schedules. aLrst, in -any cases, the respondentsbecame quite apprehensive about the purpose of the entire exerciseand tried to avoid the investigators. Thist of course,was expected in a survey like this where the respond.ents were

-

86 -

asked questions on such sensitive issues as income, expenditure,investments, remittancesreceived and their uses. Each of the respondents,therefore,had to be apprised,of tue real piurposeof the survey, and some of them had to be approachedthrough local governmentpeople or other local people in whom the responder.t had. confidence. Another difficulty emerged. from the fact that almost none of the households seem to keep any account of expenditures. Thus it became very difficult for them to give an itemwisebreakd.ownof the expendituresincurred. during a given period. It was only after a sufficientamount of probing that a reasonably consistentset of answers could be obtained. It also appeared.that iost of the respondents mad.e rio distinction between income earned by themselves and remittancesreceived from abroad in their normal day-to-dayexpenditures. It thus often became difficult to identify the specificuses to which the remittance money was put. Despite these and many other difficulti.es faced by the investigatorsduring the survey, the set of data generatedappears to be of a reasonably good quality. The analysis in the subsequentsectionsof this paper is based.on this data.

C. Characteristicsof _theSample Profile

of the Migrants

3.14 Age, education,previous and present occupationsof the migrant workers have important implicationsfor the costs aiLdbenefits associated. with the export of manpower. For example, if a country loses its working age population, there iay ke a serious impact on production. For a country like Bangladeshwhich already is facing an unfavourabledependencyratio, the imrplications of an exodus of working age population can be quite serious. Moreover, the loss of educatedand skilled nanpowerwould mean a cost to the society in the form of the costs of educationand training of the migrant workers. Occupation of the migrant workers before emigrationis also irip'-:tant because this will determinethe cost to the -ocid-ty in the form of lost productior= If, for example,an unemployedperson emigrates,the loss of prod.uction in the economy may be nil. If, on the other ham3; t4iemigrant worker is from sur-Tai! c(cupatioQ where it is d.ifficult to replace him, the loss of prod.uctioncaused by 1bisoii-:v cn can be considerable. In the case of temporary migration,the present occupationof the migrant workers is

a]so

important

frOLm a cos.-benefit

viewpoint.

1For1

if

a migrant

worker

acquires

additioral skill and technical knowledge in the course of his work and come; back to the country as a -Cr- rlilled worker and a better technicalhand, this may mean a benefit to the society. 3.15 Table 3.2 shows that more than 70r% of the migrant workers are between 20 and.35 years of age. This proportion is even higher (nearly 8 % ) for the workers of urban origin. On the other hand, the proportionof migrant workers aged less than 15 years is zero and those older than 55 years is negligible. It is thus clear that an overwhelmingmajority of the migrant workers come from the youn- and active section of the population.

- 87

Table

Age Groups

Less than 15 15-19 20-24 25-29 30-34 35-39 40-44

45-49 50-54

55-59 60 and above T'otal

3.2:

-

DISTRIPUTION OF MIGRANT WORKERSBY AGE AT THE TIME OF EMIGRATION Urban Number of Migrants

None None 15 36 10 9 3

2 2 None None 77

%

Rural Number of YMigrants

%

0.00 0.00 19.48 46.75 12.99 11.69 3.90

None 12 64 58 39 21 22

0.00 5.08 27.12 24.58 16.53 8.90 9.32

None 12 79 94 49 30 25

0.00 3.83 25.24 30.03 15.66 9.58 7.99

2.60

14

5.93 2.12 0.42 0.00

16 7

5.11

5 1 None

2.59 0.00 0.00 1C0.0O(

236

100a-

Combined Number of Migrants

1 None 313

*

2.24 0.32 0.00 10C.00

3.16 Table 3.3 slows the distributionof migrant workers by level of education before emigration. While nearly 6% of tbem are illiterate,one-third of them eithlercompletedcr entered the prirary level. Another thir(iof them either completed junior or the secondarylevel of education. On the other hand, less than 1C% of the migrants;arereported to be graduates (rangingfrom pass graduates in Arts to engineeringgraditates, Master's Degree holders in engineering,and Master's Degree holders in various subjects). It is interestingto note that more than 25% of the migrants of urban origin are graduates. It must be remembered that in Bangladeslh, the percentage of male population aged 15 years and above who completed 13 or more years of education j is only 1.4%, LI therefore the proportion of graduates among the migrant workers appears quite high.

j/

Graduationin iangladeshrequires at least 14 years of schooling.

J

See 1974 BangladeshPopulation Census Report National Volume.

- 88 -

Table

3.3:

DISTRIBUTION OF MIGRANT WORKERSBY TEE LEVEL OF

EDUCATION BEFORE EMIGRATION

Level

of Education

Urban Number of Migrants

Rural Number of fo

Migrants

%

C^mbined Number of Migrants

1 0 12 12

1.30 0.00 15.58 15.58

17 24 70 42

7.21 10.17 29.66 17.80

18 24 82 54

5X75 7.67 26.20 17.25

%

Illiterate Below Primary Completed. Primary CompletedJunior S.S.C. or Madrasa Ecuivalent H.S.C. or Madrasa 3qui-valent Graduate (Pass General) Graduate (Pass Science) Grad.uate(HIon.General) Grad.uate(Hon. Science) M'f.A., M.Com. M.Sc. Grad.uate(Engineering) Diploma (Engineering) Grad.uate(Med.icine) Master of ErLgineering Diploma in Pathology S.S.C. and.Diploma in NursiuL CharteredAccountant S.S.C. & Trad.eCourse Training Others (Trad.eCertificate, Technical Training, etc.)

12

15.58

40

16.95

52

16.61

11 4 1 0 0 3 2 5 5 3 1 1

14.29 5-19 1.30 0.00 0.00 3.90 2.60 6.49 6.49 3.90 1.30 1.30

28 5 2 0 0 0 1 1 4 0 0 0

11.86 2.12 0.85 0.00 0.00 0.00 0.42 1.69 0.00 0.00 0.00

39 9 3 0 0 3 3 6 9 3 1 1

12.46 2.87 0.96 0.00 0.00 0.96 0.96 1.92 2.87

1 1

1.30 1.30

0 0

0.00 0.00

1 1

0.32 0.32

1

1.30

0

0.00

1

0.32

1

1.30

2

0.85

3

0.96

Total

77

100.00

236

100.00

313

100.00

0.42

0.96 0.320.32

3.17 Looking at the occupationof the migrant workers before emigration 29% of them were either unemployed or students. Hence their (Table 3.4) nLearljy migration should not directly cause any loss of production in the econory. Another 31% of the workers are reported to be unskilled. The loss of these unskilled workers should not cost the economy much for there is a surplus of such workers. Thus it appears that the cost to the society in terms of the impact on production is small for the migration of nearly 6C% of the workers. On the other hand.?skilled workers, technicalhands and professionalsconstitute30% of the migrants. And the costs associatedwith their migration can be cuite significant and training. both in terms of the impact on production and the costs of ed.ucation More professionalsand more unemployedhave migrated from the urban centres compared to rural areas. Nearly 12%oof the mi_rants of urban origin were professionals compared.to less than 1% of the rural migrants. Similarly,only 9% of the rural migrants were unemployed,while 21% of the urban migrants were unemployed. and unskilled migrants were similar for But the percentage of skilled,-semi-skilled both rural and urban origin.

- 89 -

Table 3.4:

DISTRIBUTION OF MIGRANTWORKERSBY OCCUPATION BEFOREEMIGRATION Origin

Previous Occupation

Rural Number

c

of the Migrants Urban Combined Number % I.i

Group A: Professional 0 1 1

0.00 0.42 0.42

4 4 1

5-19 5.19 1.30

4 5 2

1.28 1.60 0.64

2

0.84

9

11.68

11

3.52

1 2

0.42 o.85

0 0

0.00 0.00

1 2

0.32 0.64

3

1.27

0

0.00

3

0.96

7 0 20 0 8 6 3 5 5 1 1 1 3 3

2.98 0.00 8.48 0.00 3.39 2.54 1.28 2.11 2.11 0.42 0.42 0.42 1.28 1.28

5 2 1 1 5 1 0 0 2 0 0 0 0 0

6.49 2.60 1.30 1.30 6.49 1.30 0.00 0.00 2.60 0.00 0.00 0.00 0.00 0.00

12 2 21 1 13 3 5 7 1 1 1 3 3

3.83 o.64 6.70 0.32 4.15 2.24 0.96 1.60 2.24 0.32 0.32 0.32 0.96 0.96

63

26.71

17

22.08

80

25.56

2 2 0 2 0 1

o.85 0.85 0.00 o.85 0.00 0.42

0 0 1 0 1 0

0.00 0.00 1.30 0.00 1.30 0.00

2 2 1 2 1 1

0.64 0.64 0.32 0.64 0.32 0.32

7

2.97

2

2.60

9

2.56

Doctor aogsayeer Teacher Sub-total Group B: Technical Compounder Technician Sub-total Group C: Skilled Carpenter Catering Cook. Draftsman Driver Electrician Foreman Mason Mechanio Operator Proofreader Tailor Weaver Welder Sub-total

7

Group D: Semi-skilled Apprentice Butcher Clerk Fisherman Rickshaw Puller Workshop Helper Sub-total

-

90

-

Table 3.4: CONTINUATION

Previous Occupation

Rural

Number

Origin of the Migrants Urban Combined. % Number i % Number %

Group E: Unskilled Agriculture Bearer HouseholdWorker Labourer Room Boy Salesman Serviee. Shop Keeper Sub-total

32 1 3 12 2 2 23 1

13.56 0.42 1.28 5.08 o.85 0.85 9-74 0.42

0 0 0 0 0 0 21 0

0.00 0.00 0.00 0.00 0.00 0.00 27.27 0.00

32 1 3 12 2 2 44 1

10.22 0.32 0.96 3.83 0.64 0.64 14.06 0.32

76

32.20

21

27.27

97

30.99

18 0

7.63 0.00

4 1

5.19 1.30

22 1

7.02 0.32

18

7.63

5

6.49

23

7.34

21 46

8.89 19.49

16 7

20.79 9.09

37 53

11.82 16.93

67

28.38

23

29.88

90

28,75

236

100.00

77

100.00

313

100.00

Group F: Not Classified Business Contractor Sub-total Group G: Others Unemployed. Student Sub-total Total

3.18 The distributionof migrants by present occupation(Table 3.5) reveals that skilledworkers, technicalhands, and professionalsconstitutenearly 60% of the workers. By comparing this with the previous occupation of the migrants one might be tempted to conclude that when they return they will be more skilled than they were before migration;and this addition to skill should be treated as a benefit for the society. But such a conclusionfrom the data presented in Tables 3.4 and 3.5 would be unwarranted. For it is possible that many of the migrantswho were either unemployed or employed .in an occupationrequiring no skills did.possess some skills which could not be utilized due to a lack of proper job opportunities. These migrants now categorized. as skilledworkers or technical hands in Table 3.5 are Using skills which they already possessed before

91

-

Table

3.5:

-

DISTRIBUTION< OFMIGRANT WORKERSBY PRESENT OCCUPATION Origin

Pres-emt

Occupation

Rural

Number

-

of the Migrants Urban

Number

S,

Combined

Number

l

Group A: Professional Accountant Architect Doctor

0 0

Engineer

0.00 0.00 0.00

1 1

0.42

8

Teacher

1 0

0.00

Sub-total

1

0

4

1.30

1

0.32

1.30 5.19

1

0.32

4

1.28

10.39

9

2.87

2

2.60

2

0.64

0.42

16

20,78

17

5.a43

Group B: Technical

Compounder

2

0.85

0

0.00

2

Supervisor

0

0.00

Technician

4

1.70

5 4

6.49 5.19

5 8

Workshop SuLpervisor

2

0.85

0

0.00

2

0.64

8

3.40

9

11.68

17

5.42

12

5-09 0.42

5 1 4

6.49 1.30

17

5.43 0.64

1

5.19 1.30

4 28

Sub-total

0.64 1.59

2.55

Group C: Skilled Carpenter Cashier Cateri.g. Cook Draftsman

1 0

27

0.00

11.44

2

0

0.00

1

1.30

9

3.81

9.09

16

5.11

22 3

9.32 1.27

7 5

6.49 0.00

27 3

8.63 0.96

4

1.70

0

0.00

4

1.28

Mechanic 8 Med&icalAssistant 0 Operator 1 Painter 1 Pipe Fitter 19 Steel Worker 1 Store Keeper 0 Water Supply Worker 1 Weaver 3 Welder 10

3.39

2

2.60

0.00

1

1.30

0.42 0.42 8.05

0 0

0.00

3.19 0.32 0.32 0.32 6.07

0.42

0

o.oo 0.00 o.oo

10 1 1 1 19

1

0.32

0.00

1

1.30

1

0.32

O.42

0

0 0

o.oo 0.00 o.oo

1

1.27 4.24

3 10

0.32 0.96 3.19

122

51.68

28

36.36

150

47.93

Driver Electrician Foreman

Mason

Sub-total

0

0

1

1,28 8.95 0.32

- 92 -

Table 3.5:

Present Occupation Group

Rural

Nuiber

CONTINUATION

Ori.-;-n of the Migrants Urban Combined e

umber

%

oNumber

D: Semi-skilled

o.64 1.28

Butcher

2

0.85

0

0.0(

2

Clerk Fisherman

3 2

1.27 0.85

1 0

1.30 0.00

4

3

1.27

1

1.30

2 4

o.64

Steward

10

4.24

2

2.60

12

3.84

Bearer

1

0.42

0

0.00

1

0.32

Helper Housekeeep. Houseboy

4

1.70 0.42 0.42

1 1 0

1.30 1.30

5

1.59 0.64

1

0.00 1.30

1

0.00

1()17

9

11.69

33

10.54

0.00 0.00

1 2

1.30 2.60

1 2

0.32 0.64

10 20 2

4X.' 8e48

1

C.42 0.42

0.00 7.79 0.00 0.00 0.00

10 26 2 1 1

3.19 8.31

:

0 6 0 0 0

65

27.54

21

27.28

86

27.47

15 3

6.36 1.27

1 0

1.30

16

5.11

000

Others

1

0.42

0

0.00

3 1

o.96 0.32

Sub-total

19

8.05

1

1.30

20

6.39

4 7

1.70 2.97

0 0

0.00

4

1.28

0.00

7

.,24

11

4.67

0

0.00

11

3.52

236

100.00

77

100.00

313

100.00

Sub-total

1.28

Group E: Unskilled

Kitchen Boy Labourer Porter Roomboy

Salesman Service Shopkeeper Sul,pplie.Sweeper Sub-total

1 1 0 24 0 0

0.85

2 1a

0,32 0.32

o.64 0.32 0.32

Group F: Not Classified Business Contractor

Group G: TUaemployed

Unemployed No Information Sub-total Total

- 93 -

they migratei½ Tf this is so, the contentionthat the migran-tworkers are acquiringmore skills on their job may not be tenable. j Distributionof migrant workers by country of emigration(Table 3.6) there aIe a few countrieswhich have attracted most of them. For example, there appears to be a concentration of urban workers in Libya (18.180%), SaudiArabia (16.88%),Oman (11.69%) and Iraq (10.39%). On the other hand, more rural migrants have gone to Abn.Dhabi (36.44%), (O1an(17.8(%) and Dubai (13.99%o). On the whole, Abu Dhabi, Oman, Dubai ani3Faudi Arabia have taken a total of twothirds of the migrants. This pattern can be explained at least partly by the 7 type of workers migrating from Bangladeshon one hand and the leve' develoi: rl. T and the consequent pattern of economic activities in the receiving countries on the other. A look at Table 3.5 would indicate that a large number of migrants from Bangladesh are workers for construction and infrastructure building - both skilled and unskilled. Obviously, they are needed in large numbers in countries which have only recently started their process of development. This clearly explainsthe concentrationof Bangladeshts export of manpower in countrieslike UAE and Oman. 3.19

slhows that

Table 3.6: DISTRIBUTIONOF MIGRANT WORKERS BY COUNTRY

Country

Iran UAE Bahrain Libya Iraq SaudiArabia Kuwait

Urban Number of Migrants

2 16

4 14 8

13 4

Qatar

9 6

Nigeria

1

(Vuen

Total

77

Rural Number of

n 2.60 20.77 5,20 18.18 10.39 16.88 5.20 11.69

3 123 8

4 4

7.79

16 18 42 18

1.30

0

100.00

236

% 1.27 52.12

Combined Number of Migrants M

5

139 3.39 12 1.69 18 1.69 12 6.78 29 7.63 22 17.80 51 7.63 24 0.00

1

100.00 313

1.60 44.40 3.84

5.75 3.84 9.27 7 03 16.28 7.67 0.32

100.00

3.20 Table 3.7 shows that most of the migrants have migrated only recently; less than one-fourthof them are staying abroad for more than two years. It is intereFtingto note, however, that migration from urban areas started comparatively later compared to migration from rural areas. Only 5%of the urban migrants have stayed abroad for more than two years compared to 38%in the case of rural migrants. 1_J

Even in this case, one can argue that the job the migrant worker is doing must be helping him to preserve the skill he already possessed; and this would not have been possible in the absence of migration. If this is true, preservation of acquired skills should clearly be regarded as a benefit associated with migration.

- 94 -

Table 3.7: DISTRIBW1ON OF MIGRANT WORKERS BY LENGTH OF STAY IN THE MIDDLE EAST Urban Number of Migrants

Length of Stay Less than 1 Year 1 - 2 fears More than 2 Years

17 56

Total

59

Rural Number of Migrants %

Combined Number of Migrants %

48 118 70

20.34 50.00 29.66

65 174

4

22.08 72.73 5.19

74

20.77 55.60 23.63

77

100.00

236

100.00

313

100.00

Method of Sending_Money 3.21 Table 3.8 indicatesthat only 50% of the migrantsrelied exclusivelyon banks while another 9% used banks along with private channels. As many as 35% relied exclusively on private channels. These include a number of means ranging from simple hundi to transfersthrough intermediarieswho collect funds abroad to make payments for imports under the Wage Earners Scheme. It is also interesting to note that only a small percentage (nearly 4%) of urban migrants use these private channelsto send money to their families. An overwhelmingmajority of them (more than 92%) use banks for this purpose. Table

3.8:

Method Used

DISTRIBUTION OF MIGRANTWORKERSBY METHODUSED FOR SENDING YONEY Urban Number of Migrants

%

Rural Number of Migrants

o

6.36

Combined Number of Migrants

%

5.43

No Remittance Money 2 Through Bank 71 Private Channels (Hundi, Wage Earners Scheme, etc.) 3 Both Bank and Private Channels 1 No Information 0

2.59 92.21

15 85

36.02

17 156

49.84

3.90

107

45.34

110

35.14

28 1

11.86 0.42

29 1

9.27 0.32

77

100.00

236

100.00

313

100.00

Total

1.30 0.00

3.22 Regarding the time taken by the remittancemoney to reach the receivers, two questionsmay be asked. First, does the time vary with the method used? Second, does it take a longer time for money to reach rural areas? Table 3.9 contains some data which might answer these questions. It is seen that in 70% of the urban cases using banks, the remittancemoney has reached the recipient in less than three weeks. But in all the urban cases reporting the use of private channelsthe money reached the recipient in less than two weeks. Similarly, the time lapse reported for the bank method is less than three weeks in 61% of the rural cases. For private channels,the correspondingfigure is 70%. Thus, it appears that in both rural and urban areas, remittancemoney sent through private channelsreaches ,-herecipient more quickly.

Table Time Lapse Reported Method

Less than 1 week U

Bank

0

Private

2-3 Wfeeks

1-2 Weeks U

U

R

70

113

1

1

2

( 0.88)

( 2.86)

3 ( 2.22)

4 (80.00)

18 (13.34)

0

73 (54.07)

0

13 ( 9-63)

0

16 (11.85)

0

1 ( 0.75)

0

1

3

( 1.33)

( 1.21)

18 (24.00)

39 (15.72)

35 (46.67)

24

13 (17.33)

25

R

( 1.43)

( 9.68)

13

U

(22.12)

5 ( 6.67)

11

R

(18.57)

121 (48.79)

5

U

( 9.73)

and R indicates

48

R

( 7.14)

urban

35

U

(42.48)

U indicates

21

R

6 weeks and Above U R

(50.00)

1 (20.00)

14

U

5-6 Weeks

(18.58)

Channels

0

R

4-5 Weeks

3-4 Weeks

(20.00)

Total

Note:

TIY5E TAXENBY THE REMITTANCEMONEYTO REACHTHE REJCIPIEINTS

3.9:

41 (16,53)

1

( 1.33)

2

( 0.81)

7

( 6.19)(100.00)(100.00) (

11 5 135 8.15)(100°.O)(10000C)

(

18* 75 248 7.26)(100.00)(100.00)

2

( 2.66)

Total

rural.

The figure in each cell gives the number of migrant workers for which the relevant method of sending money and the time lapse reported from the row total. The total number is different within parentheses are percentages of the relevant are applicable. The figures to have received no remitreported First, a small number of households This is due to two reasons. workers. actual number of migrant them and the time lapsesfor are reported to have used both methods, Second, some migrants the year of reference. tance money during are shown separately.

- 96 -

Comparingurban and rural areas there is not much differencein the time requiredby the remittan:emoney to reach the recipients. The time lapse reported is less than three weeks in 67% of the rural cases and 71% of the urban cases. On the other hand the percentage of cases reporting six weeks and more is 7.41% ini the rural area and 2.66% in the urban area. It is thus clear that although the differencedoes not appear substantial,it does take some more time for the remittancemoney to reach rural households. Income and Assets 3.23 So far as income is concerned,it was expectedthat the level of income of the remittancereceiving householdswould be quite high. Difficultywas anticipated in finding householdsnot receiving remittancemoney (for sub-sampleB) and yet having an income roughly comparableto that of householdswhich did. Nevertheless, in urban areas the householdsinterviewedfor sub-sampleB had levels of income comparableto those of sub-sampleA. For example,the average monthly household income for these two samples are Tk. 3,386 and Tk. 5,354 respectively;the difference is not statisticallysignificant. But in rural areas the problem was greater despite the fact that in most cases the family known to be the richest in the localitywas selectedfor sub-sampleB. The averagq monthly household income for sub-samples A and B are Tk. 5,201 and Tk. 2,685 respectively;the differenceis statistically significant. j 3.24 Hence, so far as these two sets of households in the rural areas are concerned, a comparisonbetween the compositionof spendingrather than the absolute volumes of the expenditureswould be more meaningful. If, however, it is found that despite having a significantlyhigher level of income the level of aggregate spendingby the A households does not differ significantly from that of B households, it will be possible to conclude that the former has a higher propensity to save than the latter. Table 3.10 shows that the distributionof income for the sample households is more unequal for the A households in both rural and arban areas. For -6xample,the bottom 40% of the A households in the rural area enjoy 15.45% of total income while in the case of B households, the percentageof income enjoyed is 17.89%. Similarly, for the urban area the two percentagesare 14.37% and 19.73% respectively. In the case of the distributionof owned land (Table 3.11) there is no such pattern. It is more unequal for the A households in the rural area while the opposite is the case for the urban area. It is also important to note that the distributionof owned land in all cases is much more unequal compared to the distributionof income.

j

It may also be mentioned here that the average income of the sample households in both rural and urban areas is much higher compared to the national averages. According to the National Family Expenditure Survey of 1973-74, the average household income in the rural and urban areas was Tk. 463.73 and Tk. 629.53 respectively.

- 97 -

Table 3.10: DISTRIBUItION OF DICOMEFOR THE SAMPLEHOUSEHOLDS Percentage of Households Bottom Bottom Bottom Bottom Bottom Bottom Bottom

10o 20% 30% 40%o 5°10

60/a 70%

Percentage Rural A 1.88 5.41 9.99 15.45 22.26 30.42 40.12

of Total Income E-.joyed Urban B A B 2.10 6.14 11.57 17.89 25.18 33.71

Bottom 80%

51.85

43.79 55.62

Bottom 90% Bottom 100o

66.01 100.00

70.32 100.00

Table 3.11:

2.10 4-50 8.60 14.37 21.12 28.29 37.88

3.25 8.30 13.20 19.73 26.83 33-79

47.93

43.39 53.47

61.12 100.00

68.15 100.00

DISTRIBUTION OF OWNED LAND FOR THE SAMPLE HOUSEHOLDS (By Decile Groups)

Percentage of Total Land Owned Percentage

of Households Bottom 10% Bottom 20% Bottom 30% Bottom 40%o Bottom 5C% Bottom 6c% Bottom 70% Bottom 80Y0 Bottom 9 0f Bottom 100%

Rural

A 0.35 1.67 4.51 9.07 15.27 23.25 34.27 47.20 67.14 :100.00

0.60 2.60 6.16 11.00 17.11 25.26

35.79 49.73 68.30 100.00

Coming to the compositionof income for seen that foreign remittance is the

Urban

B

A

B

0.00 O018 0.57 1.16 2.38 4-50 10.75 27.10 48.53 100.00

the A households

(Table

0.00 0.07 0.36 1.25 3.72 7.19 11.36 18.07 27.17 100.00 3.12)

it

can be

major source of income for most of the sample

households. In fact, the share of remittancemoney in total income is more than three-fourths for 62% of the rural and 47% of the urban households.

- 98 Table 3.12: SHARE OF FOREIGN REMITTANCESIS TOTAL INCOME OF THE SAMPLE HOUSEHOLDS

Share

Rural Percentage of Households

Urban Percentage of Households

2.48 1.99 8.96 24.88

2.63 1.32 15.79 32.89

61.69

47.37

100.00

100.00

0 Less than 25% 29% - 50% 5COi- 75% 75%o and Above Total Quality of Housing

3.25 The main indicatorsof the quality of housing were the type of floor, wall and roof of the living quarters,the sources of drinkingwater, fuel and ligihting, and the type of toilet. Table 3.13 shows the percentage distribution-of the sample householdsby type of floor, wall and roof. In each case there are three categoriesof materials used for construction,startingwith the best and most expensiveand arranging the others in order. For example, in the case of walls, brick has been identifiedas the best material, tin and wood as the next best and mud and bamboo as the lowest category. Table 3.13: TYPE OF CONSTRUCTIONOF THE HOUSES OF SAMPLE HOUSEHOLDS

Type Floor Pucca Katcha Mud Total Wall Brick Tin/Hood Bamboo/Mud Total Roof Pucca Tin Thatched Total

Percentage of Rural Households A B

Percentage of Urban Households A B

22.89 77.11 0.00

24.38 75.62 0.00

89.47 9.21 1.32

98.68 1.32 0.00

100.00

100.00

100.00

100.00

19.90 18.91 61.19

19.90 21.89 58.21

75.00 15.79 9.21

86.84 11.84 1.32

100.00

100.00

100.00

100.00

6.97 77.11 15.92

9.45 80.10

61.84 38.16

10.45

50.00 50.00 0.00

100.00

100.00

100.00

100.00

0.00

99

-

3.26

-

Table 3.13 shows that the differencebetween the percentage of A and.B

households in various categories is not very high. And when there is a small difference, the percentage of A households is greater in the case of lower categories and smaller in the case of higher categories. For example, 61.19%o of the rural A

householdshave bamboo or mud walls comparedto 58.21% of the B households. 9.21% or the urban A households have this type of walls compared to 1.32%oof urban B households. Again, the percentage of households having a pucca roof is smaller for the A households in both rural and urban areas. Similar is the case with the percentage of households having a pucca floor. On the other hand, a larger percentage of A households have a katcha floor than B households in both rural and urban areas. It must, however, be mentioned that in most of the cases, the differences in the percentages are small. The conclusion which follows is that the type of construction of the living quarters does not differ much between the two categories of households under study. 3.27 desirable

The sources of water have (running tap water within

also been classified from the best and. most (ponds, to the least desirable the premises)

canals, rivers, etc.). Table 3-14 gives for various sources of drinking water.

the percentage

distribution

of households

Here again, the difference between the A

and B households does not appear to be remarkable. It can, therefore,be oncluded that these two types of householdsget drinkingwater from similar sources. Table 3*14: SOURCES OF DRINiKING WATER FOR THE SANPLEHOUSMHOLDS

Sources

Percentage of Urban Households A B

Percentage of Rural Households A B

Running Tap Water Within the

Premises

0.00

0.00

7.89 3.95

0.00 22.39

20.90

67.16

77.63

88.16

14.47

Running Tap Water Outside the

Premisesi 7or CommonUse TubewellWithinthe Premises Tubewell Outside the Premises

3.95

for CommonUse Well Withinthe Premises

2.63 1.32

0.00

Well Outside the Premises for Common Use Ponds, Canals,Rivers, etc.

0.00 0.00

O.OO O.OO

Total

100.00

0.00

100.00

0.00 0 30 10.45 100.00

0.00 70.65 0.50 O.OO 7.95 100LOO

3.28 Similarly, the types of toilet have been classifiedfrom the best (sanitary for the household only) to the worst (katchafor common use). Here again, it is interestingto note that a larger percentage of A households in both rural and urban areas have the less desirable types of toilets (katcha either for common use or for the household only; see Table 3.15).

-

100

-

Table 3.15: TYPE OF TOILET IN THE SAMPLE HOUSEHOLDS Percentage of Urban Houseblolds A B

Types Sanitary for Household Use Only Sanitary for Common Use Pucca for Household Use Only Pucca for Common Use Katcha for Household Use Only Katcha for Common Use Total

Percentage of Rural HQUseholds A B

5.47

4.98

36.84

0.00 14.43 4.48 62.19 13.43

0.00 30.35 2.98 54.23

7.46

0.00 55.26 1.32 6.58 0.00

100.00

100.00

100.00

34.21 0.00 64.47

0.00 1.32 0.00 100.00

3.29 Table 3.16 gives the distributionof sample householdsby type of fuel used for cooking and sources of lighting. In the former case, there is practically no differencebetween the A and B households in rural areas. In the urbariarea, however, a smaller percentage of A householdsuse gas and kerosenewhile a larger percentageuse wood and kerosene compared to the B households. It is also interesting to note that a small percentage of rural households get light from electricity, but the percentage is higher for the A households. In urban areas, however, a smaller percentage of A householdshave electricityand a larger percentage of them use kerosene for lighting. Table 3.16:

Twes and Sources Type of F-el Gas and Kerosene Firewood Wood and Kerosene Total Source of Lighting Electricity Kerosene Total

DISTRIBUTION OF SAMPLEHOUSEHOLDS BY TYPE OF FUEL USED FOR COOJICG AND SOURCESOF LIGHTlISG of Urban Percentage Households A B

Percentage of Rural Households A B

0.50 96.52 2.98

0.50 96.02 3.48

64.47 22.37 13.16

75.00 15.79 9.21

100.00

100.00

100.00

100.00

10.95 89.05

6.47 93.53

94.74 5.26

98.68

100.00

100.00

100.00

100.00

1.32

3.30 Trheevidencepresented above should dispel any presumptionsabout differences in the quality of housing between remittancereceiving households and those receiving no remittance money. Even in rural areas where the average household inthe quality of housing does come is signaificantly higher for the former category, not differ much between the two categories of households. This, however, should

-

101

-

amovuats on the construction, repair not lead. one to presume that they spend. similar and maintenanceof housing, In fact, as will be seen later, the remittance receiving householdsactually spend more on new constru(:tion.

D.

1jkaZt

of RemittanceMoney on Levels and Compositionof Household.Expenditure

3.31 The 'impactof remittancemoney on household expenditurecan be analysed by answering several questions. First, do the householdswhich receive remittance money have a propensity to spend moreov 3 ond.,do these householdcsspend more on luxury items rather than essential goods -omparedto those householdswhich do not receive any remittancemoney? Third, do the remittancereceivinghousehold.sspend. more on the pu.rhase of land and constructionof houses compared to the other households? Fourth, what is the attitude of these two types of households towards productive investmentsin agriculture,ind.ustryand business? 3.32 As was alread.yseen, the average monthly household income of the remittance receivinghouseholds is much higher than the national average. The national family expendituresurvey af 1973-74 shows that 7.23% of the rural households and 15.24% of urban householdshave a monthly ir_(omeof more than Tk. 1,000. In contrast, 95.53% of the rural and 98.68% of the urban householdsreceiving remittancemorey have a monthly income of more than Tk. 1,000. It is thus clear that these households are in the top decile of the national income distribution. Since savings is suboptimal in the economy of Banglad.esh, the applicationof distributionalweight would imply the use of progressivelysmaller social weights for consumptionby the upper income groups. Hence, the so(ial value of consumptionby the sample households must be smaller than its private value. Moreover, if these households spend more on luxury items and consumer d.urablescompared-to-theircounterpartswhi h do not receive remittane money, the social value of such expenditureswould be even l ess than their private value. Similarly,the social value of expenditureson the purchase of land, constructionof houses, etc. should also be less than their private value. A-,l ,-I -t s importantto see whether the A households spenidmore on these than the B households. All these ana.yseshate important implicationsfor a costbenefit evaluationof the export of manpower. Table 3.17 shows the monthly average expenditureper household of the sam3.33 ple
'Pabl.o3&17:

AVERAGEEXPENDITUREPER HOUSEHOLDOF THE SAIIPLE RURAL HOUSEHOLDS(BY IIONTIILYEXPENDITURE GROUPS) (Taka)

Monthly Household Expenditure Groups

iumber of Households B A

Below

10

5

1,000

1,000-

1,499

35

30

1,500-

1,999

34

51

2,000- 2,999

61

67

3,000- 4,999

47

38

5,000- 7,499

10

3

3

5

10,000-14,999

1

1

15,000-19,999

-

1

7,500-

20,000

9,999

Groups

'Z'

Values

Note:

201

Figures

842.16 (100.00) 1,247.17 (100.00) 1,719.30 (100.00) 2,432.65 (100.00) 3,831.07 (100.00) 6,221.32 (100.00) 7,707.04 (100.00) 14,129,56 (100.00) -

--

and Above

All

Total Expenditure B A

within

201

2,678.83 (100,00)

parentheses

895.93 (100.00) 1,322.86 (100.00) 1,748.14 (100.00) 2,447.44 (100.00) 3,746.53 (100.00) 6,038.69 (100.00) 8,751.87 (100.00) 12,062.09 (100.00) 16,230.65 (100.00) -

838.97 (99.62) 1,237.22 (99.20) 1,712.61 (99.61) 2,411.99 (99.15) 3,813.41 (99.54) 6,032.58 (96.97) 7,686.88 (99.74) 14,124.98 (99.97)

2,036.00 (100.00) 0.24

2,655.69 (99.14)

represent

Taxes

Consumption B A

-

percentages

0.69 895.21 (0.08) (99.92) 2.48 1,320.50 (0.20) (99.82) 2.35 1,742.75 (0O14) (99.69) 6.56 2,427.49 (0.27) (99.18) 8.40 3,664.41 (0.22) (97.81) 113.74 6,001.69 (1.82) (99.38) 20.16 8,582.40 (0.26) (98.06) 4.58 11,662.09 (0.03) (96.69) 16,188.99 (99.79) 2,605.12 (98.83) 0.29

of total

B

A

0.72 (0.08) 1.86 (0.14) 2.73 (0.16) 9.47 (0.39) 36.92 (0.99) 37.00 (0.62) 169.47 (1.94) 333.33 (2.46) 33.33 (0.21) 17.72 (0.67)

10.80 (0.40)

expenditure.

-0.97

Interest Payments B A 1.59 (0.09) 1.02 (0.04) 1.42

(0.04) 33.33 (0.54) -

-

0.50 (0.04) 0.27 (0.02) 0.58 (0.02) 0.15 (neg.)

Remittance to Memberm Living Away B A -

-

-

-

-

-

-

-

-

23.25

(0.62)

-

-

-

-

_

_

--

-

-

-

-

and Gifts Donations B A -

2.50 (0.30) 7.48 (0.60) 2.74 (0.16) 13.08 (0.54) 7.84

2.39 (0.14) 9.89 (0-40) 21.80

_

(0.20)

(0.58)

41.67 (0.67) _

_

-

66.67 (0.55)

_

8.33

-

(0.05) 0.37 2.57 (0.01) (0.10) 1.27

4.39 (0.17)

-

-

-

-

9.77 (0.36)

8.40 (032)

0.31

AVERAGEEXPENDITUREPER HOUSEXOLDOF THE SAMPLE URBANHOUSEHOLDS(BY MONTHLYEXPENDITUREGROUPS)

3.17:

Table

(Taka)

Monthly Household Expenditure Groups

Nimber of Households B A

Belowl,0O

-

-

Total Expenditure B A -

1,000- 1,499

5

6

1,500- 1,999

11

14

2,000- 2,999

34

25

3,000- 4,999

15

21

1,243.36 (100.00) 1,726.29 (100.00) 2,421.39 (100.00) 3,734.03

-

-

A

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

_

_

-

-

1,349.60 1,243.16 1,349.60 (99.98) (100.00) (100.00) 1,765.40 1,721.53 1,763.78 (99.90) (99.72) (100.00) 2,388.91 2,419.58 2,326.50 (97.30) (99.93) (100.00) 3,550.21 3,723.88 3,621.48

(100.00) (100.00)

0.20 (0.02) 4.75 (0.28) 1.81 (0.07) 9.75

(99.73) (98.03 (0.26)

1.62 (0.10) 6.01 (0.25) 51.19

0.40

3.41

15,000-19,999

-

20,000 and Above

-

_

All Groups

76

76

8

7,500- 9,999

1

10,000-14,999

2

'Z' Values Note:

7

_

_

3,250.68 3,250.28 (100.00) (100.00) 0.001

_

-

56.40 (2-36) 16.67

(0.46)

(1.41) (0.01) (0.94)

16.18 280.95 6,168.60 5,548.21 5,980.52 5,074.41 188.07 (0.29) (5.06) (91.46 (3.05) (96.95) (100.00) (100.00) 93.33 8,307.92 8,567.92 (1.09) (96.97) (100.00) 62.50 234.31 3 12,795.79 13,199.00 12,706.63 11,584.14 26.67 1,380.55 (10.46) (0.49) (1.78) (87.76) (0.21) (99.30) (100.00) (100.00) _ _ _ _ _ -

5,000- 7,499

and Gifts Donations B A

B

Taxes

Consumption B A

Etemittance to Members Living Away B A

Interest Payments B A

-

162.38 (2.93)

e -

14.29 (0.26)

-

-

-

-

-

-

_

-

_

_

166.67 (1.94)

-

_

96.79 3,221.60 3,102.38 25.17 (2.96) (0.77) (95.45) (99.11) -1.35 0.34

Figures within parentheses represent percentages of total

expenditure.

1.72 11.68 (0.05) (0.35) n.c.

0

38.11 (1.18)

2.19 (0.07)

1.32 (0.04)

- 104

-

the average income of the raw al A households is significantly higher than that of the B households, the equality of aggregate expenditure of these two types of households implies that the former (i.e., those which receive remittance money) save more than the latter. A comparison of savings calbulated from the data also corroborates this (see Table 3.18). The remittance re!eiving households, on an average, save significantly higher amounts than the other households in both rural and urban areas. The proportion of income saved by the remittance re eivers is also significantly higher. In the rural area, for example, these households saved as much as 5010of their income compared to only 1.18% in the case of those who do not receive remittance money. Similarly, the remittance receiving households in the urban area saved 39.21% of their income compared to 4.2010 saved by the other households. Table 3.18 shows that these conclusions hold for households in the various income groups as well, especially in the rural area. The ura2. A 2ci;seholdsin all income groups save more (or dissave less) compared to the B households. For urban households, this conclusion does not apply for only two income groups. But in general, it can lce for t1he absolute amount is higher -'qd:lE savings ratio as well as the average remittance receiving households at various levels of income. Table

Ionthly Household Income Groups

3.18:

Average Monthly Income A B 643.03

Below 1,000

INCOME, EXPMEWITUREAND SAVINGS OF TUX SkJPLi! tURAL HOUSEHOLDS (Taka)

634.49

Average Monthly Expenditure A B 1,634.54

1,770.94

Average Monthly Savings A B -991.51

(154-19) 1,000- 1,499

1,304.48

1,234.56

1,484.70

1,862.54

1,500- 1,999

1,806.94

1,719.01

1,403.99

1,932.22

2,000-

2,999

2,479.58

2,471.88

1,812.24

2,450.98

3t000-

4,999

3,958.75

3,81-l.83

2,636.80

3,225.72

5,000-

7,499

6,034.92

5,663.38

3,226.16

4,897.57

7,500- 9,999

8,461.69

81188.75

3,778.68

81058.21

10,000-14,999 12,238.42

11,834.17

4,240.34

10,597.17

15,000-19,999 187590.30

17,562.91

4,427.23

4,275.08

20200&

Above 39,006.94

26,310.41

5,922.19

12,052.09

5,359.84

2,684.51

2,678.86

21T35.93

Total

Note:

1 136.45

1179:11)

-180.22 (13.82) 402.95 (22.30) 667.34 (26.91) 1,321.95 (33.39) 2,808.76 (46.54) 4,683.01 (55.34)

-627.98 (50.91) -213.21 (12.40) 20.90 (0.85) 588.11 (15.42) 765.81 (13.52) 130.54 (1.59)

7,993.C8

17237.00

(65.35) 14,163.07 (76.19) 33,084.45 (84.82) 2,680.98 (5o.02)

(10-45) 13,287.83 (75.66) 14,258,32

(754.153 48.58 (1.81)

Figures within the parentheses expres; {1.eamount of savings (or dissaings) as percentage of income.

- 105 -

Takle 3.18:

2TI0CVWE, EXPE\DITURE AND SAVDTGS OF

THE SAMPLE URBAN HOUSEHOLDS (Taka) Monthly Household Income Groups Below

1,000

Average Monthly Income A B

933.33

-

Average Monthly Expenditure A B

Average Monthly Sav=ngs A B

-837.59

-

1,770.92

-

1,000- 1,499

1,256.99

1,244.67

1,712.93

1,838.30

1,500- 1,999

1,696.34

1X688.26

2,042.11

2,146.96

2,000- 2,999

2,620.07

2,295.28

3,199.43

21511.21

3,000-

3,851.45

3,617.27

2,664.39

4,004.43

5,OtOC) 7,499

5,862.34

5,370.24

3,844.63

4,062.68

(89-74) -455.94 (36.27) -345.77 (20.38) -579.36 (22.11) 1,187.06 (30.82) 2,017.71

7,500- 9,999

8,390.67

8,333.33

3,375.97

6,240.00

5,014.70

10,000-14,999 11,666.67

12X769.44

8,742.46

9,387.81

2,924.21 (25.06)

6t095.17

-

4,999

-593.63 (47.69) -458.70 (27.17)

-215.93 (9-41) -387.16 (10.70) 10307.56

(34.42)

(24.35) 2,093.33

(59.77) 15,000-19,999

-

18,066t67

-

(25.12)

3,381.63 (26.48) 11,971.50

(66.26) 20,000 & Above 83,333.33

-

6,768.33

.~~~~~~~~.

Total

5,353.91

31385.85

3,254.78

.

3,243.75

76,565.-0 ('3 .88) .'C0

-

2,099.13

142.10

(39.21) Note:

Figures within as percentage

the parentheses of income.

express

the

amount

of savings

(4.20) (or

dissavings)

3.34 Among the components of total expenditure, amounts spent by the rural A households are higher than that of the rural B households in the case of consumption, interest payments and gifts and donations. On the other hand, B households, on an average, spent more than the A households on taxes. But in none of the cases are the differences statistically significant. In the urban area, A households spent more on consumption and gifts and donations while the B households spert more on taxes and. interest payments. Here again, a test for the equality of means shows n,o significant difference in either of the cases. Thus, so far as the composition of spending between these broad items are concerned, the hypothesis that the spending plic-ern of the two types of households under study is different does not seem to be true. This is also clear from the percentage distribution of total expenditure between these broad components for the two categories of households.

Table

Monthly Groups

Expenditure

Below 1,000

AVERAGEMONTHLYCONSUMPTIONEXPENDITURE OF THE SAMPLE URBAN HOUSEHOLDS (BY MONTHLYEXPENDIT U RE GROUPS) (Takq)

3.19:

Number of Households B A -

-

5

1,000- 11499

6

Consumption Expenditure A

B

Food & Drink B A

-

-

-

-

-

-

757.10

739.17

85.00

101.94

(54.77)

(6.84)

1,349.61

1,243.16

(100.00) (60.90)

(100.00) 1,500- 1,999

11

14

1,763.78

1,721.53

(100.00) (100.00) 21000- 2,999

34

25

3,000- 4,999

15

21

5,000- 7,499

8

7

1

2,326.50 1,288.45 1,262.09 (54.24) (53.25) (100.00) (100.00) 3,723.88 3,550.21 1,763.43 1,647.50

-

3

2

(46.40)

4,120.00

-

(49.59)

(100.00) 10,000-14,999

(47.35)

5,074.14 2,534.44 2,563.57 (50.52) (100.003 (100.00) (42.38)

5t980.52 8,307.92

_

941.36

(55.55) (53.37)

2,419.58

(100.00) (100.00) 7,500- 9,999

956.37

12,706.63 11,584.14 (100.00) (100.00)

4,064.50 (31.99)

2,930.83 (25.24)

Clothing A

153*63

(8.93) 202.71 (8.38) 280.39

(7.54) 294.79

(4.93)

& Footwear B

(7-55) 122.35

(6.94) 188.10

(8.09) 281.87

(7-94) 426.55 (8.41)

D 625.00

(7.52) 562.50 (4.42)

761.11 (6.58)

15,000-19,999

-

_

_

-

_

_

_

_

20,000 & Above

-

-

-

-

-

-

-

-

All Groups

76

76

227.92

239.68

3,221.60

3 102.38

(o00.00)(100.00) 'Zt Values

0.34

1,540.64

1,453.96

(47.82) (46.86) 0.75

(7.73) (7.07) -0.42

ON

Table

Personal A

Efc-cts B

36.00 (2.89) 36.55 (2.12) 38.74 (1.60) 65.20 (1.75) 143.75 (2.40)

of Rent, Repair etc. Houses, B A

37.17 (2.75) 43.93 (2.49) 44.40 (1.91) 67.38 (1.90) 144.57 (2.84)

85.00 (6.84) 119.70 (6.95) 244.17 (10.09) 459.85

(12.35)

(1X*00)

571.88 (9.56)

402.00 (7.92)

-

-

-

147.22

(10.92) 252.38 (14.31) 213.20 (9.16) 390.56

3.19:

Fuel A

85.09

117.50 (0.92)

333.33 (2.88)

816.67 (6.43)

513.89 (4.45)

58.71 (1.82)

70.72 (2.28)

304.59 (9-46)

293.47 (9.46)

95.13 (2.95)

Note:

-1.05

0.19

& Lighting;T B

70.60 (5.68) 77.82 (4.52) (3.52) 96.20 (2.58) 161.88 (2.71) 230.00 (2.77) 80.00 (0.63)

200,00 (2.41)

CONTINUATION

2.36

Others

Frniture A

B

-

-

B

A

258.44 (19.15) 333.86 (18.93)

65.67 (4.86) 68.36 (3.88) 52.54 (2.26) 88.41 (2.49) 111.43 (2.20)

10,61 (0.62) 22.18 (0.91) 32.78 (0.88) 185.94 (3.11)

1.49 (0.08) 12.83 (0.55) 50.00 (1.41) 49.64 (0.98)

-

-

-

106.67 (0.93)

41.67 (0.33)

805.56 (6.96)

(37.71) 7,023.80 (55.28)

6,132.75 (52.96)

73.96 (2.38)

38.60 (1.20)

54.68 (1.76)

956.01 (29.68)

915.91 (29.53)

209.47

(16.85) 366.87 (21.31) 538.25 (22.25) 1,026.03 (27.55) 2,087.85 (34-91)

553-34 (23.79) 1,024.50 (28.86) 11376.64 (27.13) _

3,132.92

-0.49

Figures within parenthesesrepresent percentagesof~total consumptionexpenditure.

0.21

0

Table 3.19:

Monthly Expenditure Groups Below 1,000

EXPENDITUREOF THE SAMPLERURALHOUSEHOLDS MONTHLYCONSUMP-TION AVERAGE EXPENDITUREGROUPS) (BY MONTHLY (Taka) Number of Households B A

Consumption Expenditure B A

10

5

8 389.97

35

30

1,237.22

895.21

(100.00)(100.00) 1,000- 1,499 1,500- 1,999

1,320.50

725.20

572.50

34

51

1 1712.61 1 742.75 2,427.49

2,999

61

67

2,411.99

3,000-4,999

47

38

3 813.41

3 664.41

5,000- 7,499

10

3

6,032.58

6,001.69

5

7,686.87

8,582.40

(100.00) (100.00) 10,000-14,999

1

1

141124-98 11,662.09

-

1

16,188.99

-

(7.08)

(6.58)

97.70

87.13

(65.84)

(7.90)

985.93

1,164.77

(57.57) 1,393.36

(66.84) 1,476.40

3,028.40

3,123.00

(52.04)

(50.20) 2,498.33

3,398.85

(39.60)

(32.50) 1,084.00

5,140.00

(44.07) 5,889.00

_

All Groups

-

201

-

201

-

-

2,655.66

2 605.12

-

-

1,408.32

1,516.59

(100.00)(o00.00)(53.03) (58.22) 'Z' Values

0.29

-1.50

(6.60) 108.77

150.45

(6.24)

(8.78) 185.28

177.66

(7.68) 302.23 (7.92)

(7.32) 233.30 (6.37)

407.50

420.83

(7.01)

(6.74)

480.00

491.39

(5.59)

(6.39)

879.17

124.99

(7.54)

(0.88)

2,166.67 (13.38)

_

(36.38)

(100.00) 20,000 & Above

58.83

(81.00)

(100.00) (100.00) (7.67) 15,000-19,999

59.36

869.37

(60.82) (57.77) 2,089.84 1,957.39 (O000.o)(100.00) (51.33) (57.03) (100.00) (100.00)

3

& Footwear B

799.11

(100.00)(100.00)

7t500- 9,999

Clothing A

(68.24)

(100.00) (100.00) (64.59) 110o.;O) l1O0:O0)

2,000-

Food & Drink B A

-

200.55

(7.55) 1.30

178.77

(6.86)

H X

Table 3.19:

Personal Effects B A 25.00 (2.97) 35.20 (2.85) 51.00 (2.98) 67.23 (2.79) 99.09 (2.60) 153.00 (2.54) 233.33 (3,o4) -

71.00 (2.67) i.28 Note:

Rent, Repair of Houses. etc. B A

16.80 (1.88) 42.77 (3.24) 53.14 (3.05) 59.42 (2.45) 88.68 (2.42) 100.00 (1.67) 172.00 (2.01) 100.00 (0.86) 300.00 (1.85)

4.17 (0.50) 42.56 (3.44) 64.46 (3.77) 63.58 (2.63) 199.01 (5.22) 270.83 (4-49) 1,333.33 (17.35) 83.33 (0.60)

64.62 (2.48)

118.13 (4.45)

-

-

41.22 (3.12) 31.01 (1-78) 56.51 (2.33) 61.98 (1.69) 36.11 (0.69) 145.00 (1.69) 333.33 (2.86)

2,083.33 (12.87)

60.74 (2.33) 2.09

CONTINUATION

Fuel & Lighting B A 46.20 (5.51) 62.66 (5.06) 77.71 (4.54) 101.43 (4.21) 129.68 (3.40) 180.10 (2.99) 133.00 (1.73) 110.00 (0.78) _

32.00 (3.57) 63.53 (4.81) 78.96 (4.53) 101.01 (4.16) 130.48 (3.56) 321.67 (5.36) 188.80 (2.20) 245.00 (2.10) 730.00 (4.51)

103.00 98.95 (3.95) (3.73) -o.65

Furniture

-

-

1.08 (0.08) 3.58 (0.20) 7.93 (0.32) 7.57 (0.21) 13.89 (0.23) 130.00 (1.51) 12.50 (0.11) 83.33 (0.52)

9.06 (0.35)

30.11 (1-13)

B

A

B

A 5.42 (0.64) 5.73 (0.46) 5.20 (0.30) 27.73 (1.15) 43.16 (1.13) 156.67 (2.60) 111.11 (1.45) _

Others

*

126.32 (15.06) 194.26 (15.70) 377.86 (22.06) 573.32 (23.07) 1,082.96 (28.40) 1,836.08 (30.44) 2,886.38 (37.54) 12,656.66 (89.60) -

62.48 (6.97) 215.39 (16.31) 302.52 (17.36) 548.56 (22.60) 1,052.57 (28.72) 1,986.20 (33.09) 4to67.75 (47.40) 4,952.09 (42.46)

4,936.66 (30.49)

672.34 (25.81)

728.62 (27.44)

3.81

Figures within parentheses represent percentages of total consumption expenditure.

0.60

-

110

-

3.35 Now the consumptionexpenditurewill be examined in more detail to see whether the compositionis differentfor the two sets of households. Table 3.19 gives the division of consumptionexpenditurebetween food.caiddrinks, clothing personal effects, house rent and repairs, fuel and lighting, furniand footwear, ture and others. On an average, the rural A household.s spend more than the B The difference households on items except food and drinks and f uel and lighting. is statistically significant in the case of house rent and furniture. The urban A households spend more on items except clothing and footwear, persoral effects however, is statistically significant only in the and funi*Loe_ 7Tiz* difference, Thus it appears that there is some differencein the case of fuel and lighting. composition of consumption expenditureof the householdsreceiving remittancemoney and those not receiving any. But this does not yet reveal whether the remittance receiving households spend D-oreon luxury items, for many such items have been included in the category called totherst in Table 3.19. Therefore, some items were isolated from this category and the expenditureon these items by the sample households was examined. These items are: domestic servants, recreationand festivals (see Table'3.20). The differencein expenditureis statisticallysignificant only for the amounxtspent on recreationby the rural households; and in this case receivinghouseholds are seen to spend more. The other households tle :remittance spend more on domestic servantsin both rural and urban areas; but the difference is not statisticallysignificantin,either of the cases. Thus, the hypothesis that the remittancereceiving households spend more on luxury items compared to other householdsdoes not seem to get much support. 3.36

The compositionof the expenditureon iLooditems was also looked at to see whether the remittance receivinghouseholds spend more on less essential items. Table 3.21 shows that these households in the rural area spend more than other households only on some items:' other cereals,meat and sweets,biscuits, etc. Of these, the last two items can be alled less essential,but the differenceis not statisticallysignificantin either of the items. The B householdsspend more on the other items; but the differenceis statisticallysignificantonly in the case of sugar and tobacco. 3.37 On the other hand, the A households in the urban area spend more on items like rices wheat, pulses, edible oils, meat, fish, vegetables,fruits, sugar, Z, tea and coffee, and pan. Of these, meat, fruits, sugar, tea and coffee, and pan can be treated as less essential items. , but the differencein average expenditureis not statisticallysignificantin either of the eases. 3.38 From the above evidence it follows that there is no systematictendency on the part of the remittancerece" ing households to spend more c:n less essential items compared to other households. The other households also spend more than the remittance receiving households on some of the less essential items. It ist howeverI tot difficult to provide an explanation for the absence of a systematic difference in the level and pattern of expenditure between the two sets of households. It is possible that households which are now receiving remittance money had in the past a lower level of income comparedto other households. And with an increase in the level of income, the former group of households just started to emulate the level and pattern of expenditureof the latter group. If this is true, then there would be very little reason to find a systematic difference in the expenditure patter:3. of the two types of households. This, of course, should not be taken to imply that remittancemoney did not liave any impact on the expenditure pattern of the receiving

-

Table

-

3.20: yiONTHLYEXPEN-DITURE ON DOMESTIC SERVANTS, RECREATION, FESTIVALS AND CEREMONIES BY THE SAMPLE RURAL HOUSEHOLDS (Taka)

Monthly Expendciture Groups

Below 1,000 1,000- 1,499

Domestic Servants A

B

16.00 (1.91) 18.34

(1-48) 1,500-

ill

2.40 (0.27) 31.67 (2-40) 56.92 (3.27) 192.91

2,000- 2,999

51.18 (2.99) 128.72

3,000- 4,999

231.60

5,000- 7,499

508.50 1,125.00 (8-43) (18.74) 433.33 810.00 (5.63) (9.44) 150.00 160.00

1,999

(5-34)

(7-95) 265.87

(6.08) 7,500- 9,999 1i,000-14,999

(7.26)

(1.06) 15,000-19,999

-

20,000 & Above

-

(1.37) 1,450.00

Recreation A B

3.10 (0.37) 9.77

6.00 (0.67) 8.10

(0.79)

(0.61)

(4.62)

(3.02)

22.00 (1.28) 25.03

4.98 (0.29)

90.41 (5.28) 126.50

80.49 (4.61) 115.84

138.38 (5.21)

Z' Values Note:

5.49

(1.04)

(0.23

42.86 (1.12) 75.00 (1.24) 18.67 (0.24) 20.00

24.66

(0.67) 10.00 (0.17) 60.00 (0.70) 170.00

(0.14)

(1.46)

-

-

100.00 (0.62) -

178.75

27.31

12.10

(1.03)

(0.46)

-

(8.96)

Total

-1.71

(6.86)

Festivals & Ceremonies A B

3.26

42.08 (5.02) 57.16

34.33 (3.83) 39.82

(5.24) 251.40

(4.77) 159.57

(4.35)

(6.59)

479.99 205.55 (7.96) (3-42) 291.66 1,308.33 (3.79) (15.24) 25.00 416.67

(3.57)

(0.18) -

152.87

1X000.00 1 6.17) -

138.66

(5.76)

(5-33)

0.57

Figures within the parentheses express expenditures on the item as percentage of total consumption expenditure.

- 112 -

Table

3.20: MONTHLY EXPENDITURlOT\TDOMESTIC SERVANTS, RECHbATION, FESTIVALS AND CEREMONIESBY THE SAMPLEURBANHOUSEHOLDS (Taka) Domestic Servants

Monthly Expenditure Groups

A

B

Below

-

-

1,000

1,000- 1,499 1,500- 1,999 2,000- 2,999 3,000- 4,999 5,000- 7,499 7,500- 9,999 10OOO-14,999

4.00 (0.32) 63.64 (3.70) 79.37 (3.28) 192.33 (5.16) 404.38:. (6.76) 175.00

-

20,000 & Above

-

Total 'Z' Values Note.

Recreation

36.17 (2.68) 46.43 (2.63) 135.80 (5.84) 200.83 (5.66) 293.29 (5-78 -

A

-

152.09 185.03 (4.72) (5.97) -0.72

B -

15.80 (1.27) 19.55 (1.14) 40.82 (1.69) 43.53 (1.17) 97.75 (1.63) 165.00

(2.11) (1.99) 922.50 1,176.67 2,565.00 (7.26) (10.16) (20.19)

15.000-19,999

Festiv-als & Ceremonies A

B

-

13.33 (0.99) 24.64 (1.40) 37.40 (1.61) 79.67 (2.25) 374.46 (7.39) -

360.00 (3.11)

-

110.68 88.64 (3-44) (2.86) 0.42

Figures within the parentheses express expenditures percentage of total consumption expenditure.

41.67 (].36) 92.42

(5-36) 116.70 (4.82) 138.80 (3.73) 322 t0

(5s39) 1,891.67

54.17 (4.01) 76.49 (4.34) 98.32 (4.23) 167.02 (4.70) 261.01 (5.16) -

(22.76) 166.67 2,254.17 (1.31) (19.47) -

-

158.93 209.96 (4.93) (6.77) -0.68 on the item as

Table 3.21:

Monthly Expenditure Groups

AVERAGE MONTHLY EXPENDITUREON FOOD ITEMS BY THE SAMPLERURALHOUSEHOLDS (BY MONTHLY EXPENDITUREGROUPS) (Taka) Number of Households A B

Below 1,000

5

10

1,000-1,499

35

30

1,500-1,999

34

51

2,000- 2,999

61

67

3,000-4,999

47

38

5,000-7t499

10

3

7,500-9,999

3

5

1

1

Expenditure on Food Items A B 572.50

725.20

(100.00) (100.00) 799.11 869.37

Rice

Wheat

A

B

A

B

236.50

333.00

10.40

63.80

(41.31) 346.91

(45.92)

(1.82) 13.97

(8.80) 15.70

361.20

(100.00) (100.00) (43.41) (41.55)

10,000-14,999 15,000-19099

-

20,000 & Above

-

All Groups

tZt Values

201

1

985.93 1,104-77 419.66 470.88 (100.00) (100.00) (42.55) (40.43) 1,393.37 1,476.40 582.13 601.49 (100.00) (100.00) (41.78) (40.74) 1,957.39 2,089.84 740.00 725.66 (100.00) (100.00) (37.81) (34.72) 3,028.40 3,123.00 1,083.50 1,250.00 (100.00) (100.00) (35.78) (40.03) 2 498.33 3,398.85 800.00 1,390.00 (o00.00) (100.00) (32.02) (40.90) 1,084.00 5,140.00 150.00 1,300.00 (100.00) (100.00) (13.84) (25.29) 5,889.00 1,000.00 (100.00) (16.98)

-

201

-

1,408.32

1,516.59

(100.00) (100.00) -1.50

-

559.44 584.03 (09.72) (38.51) -0.78

(1.75)

(1.81)

11.85 (1.20) 12.52 (0.90) 14.74 (0.75) 20.00 (0.66) 45.00 (1.80) -

23.23 (1.99) 18.83 (1.28) 14.16 (0.68) 30.00 (0.96)

_ -

13.87

-

100.00 (1.70) -

19.72

(0.98) (1.30) -1.78

Table

Pulses A

B

14.30 (2.50) 18.06

14.60

(2.26)

Milk & Milk Products A B

19.93

19.00 (3.32) 40.60

40.00 (5.51) 37.40

(2.29)

(5.08)

(4.30)

18.50 (1.88)

20.56 (1.77)

54.68 63.76 (5.54) (5.47)

25'.21

23.19

87.83

108.64

(1.81) 30.57 (1.56) 41.40

(1.57) 31.32 (1.5o) 73.33

(6.30) 146.26 (7.47) 169.50

(7.36) 157.50 (7,54) 155.00

(1.36)

(2.01)

Edible Fats, A

3.21:

CONTINTATION

Oil, etc.

Meat

Poultry

Eggs

B

A

B

A

B

A

31.10

28.40

35.60

(3.92)

(6.22)

34.89 (4.37) 39#Y6 (4.01) 49.54 (3.56) 73.53 (3.76) 89.90

40.63

31.17

7.60 (0.o5) 21.17

13.10

(5.43)

18.29

5.60 (0.77) 16.63

6.20 (1.08) 4.51

(4.68)

(3.90)

(2.43)

(2.29)

(1.91)

44.65 (3.83)

43.47 39.75 (4-4.1) (3.41)

28.35 (2.88)

31.37 (2.69)

52.32

3.80 (0.52) 10.33 (0.56) (1.19) 7.49 8.78 (0.76) (0.75)

67.25

69.15

35.46

40.03

11.76

(4.68) 104.45 (5s0Q) 104.67

(2.54) 54.34

(2.71) 72.76 (3.48) 78.33

(0.84)

(3.58) 77.69 (3.72) 71.33

(4.83) 106.32 (5.43) 116.00

(2.28)

(R.W8) 136.00

B

13.89

(0.94) 30.18 (1,07) (1.44-) 33.90 38.33 20.97

(2.35)

(5.59)

84.60 (2.49) 150.00 (2.92) 60.00

(4.96)

210.00 (8.41) 180.00 (16.61) _

(2.97)

(2.28)

102.66 (4.11) 20.00 (1.84) _

(3.83)

110.80 (3.26) 110.00 (2.14) 250.00 (4.25)

(3.35)

173.33 (6.94) 30.00 (2.76)

(4.49)

(2.51)

134.00 (3.94) 160.00 (3.11)

(1.12)

86.66 (3.46)

(1.235

65.20 (1.92) 30.00 (0.58) 300.00 (5.09)

60.00 (2.40) 60.00 (5.54)

57.65 (1.70)

-

(1.02)

296.00 (8.71) 360.00 (7.00) 600.00 (10.19)

300.00 (5-09)

24.44 26.45 (1.74) (1.74) -0.98

90.58 103.20 (6-43) (6.80) -1.38

53.12 56.00 (3.77) (3.69) -0.91

68.33 (4.85)

37.00 (1.48) 9.00 (0.83) -

-

600.00 (10.19) 64.91 (4.28) 0.57

-

-

40.16 42.11 (2.85) (2.78) -0.41

-

13.72 17.70 (0.97) (1.17) -1.58

. H

Table 3.21: Other A

B

3.20 (0.44) 8.43 (0.97) 8.20

0.40 (0.07) 9.80 (1.23) 7.29 (0.74) 25.28 (1.81) 34.68 (1.76)

(8.47)

113.06 (8.11) 188.02

-

23.56 (1.67) 0.30

53.00 (7.31) 92.33 (10.62) 92.51 (7.94) 123.97 (8.40) 181.11

67.00 (11.70) 69.29 (8.6'f) 83.50

(0.70)

(2.02)

-

A

18.45 (1.25) 42.29 190.00 (6.08) 62.50 (1.85)

82.00 (2-7t3 33.00 (1.32) 50.00 (4.61)

, B

Fish

Cereals

40.00 (0.68)

_

22.15 (1.46)

125.11 (8.88)

Vegetables A

41.90 (7.32) 53.60 (6.71) 71.18

Ffuits B

71.80 (9.90) 70.13 (8,07) 83.94

A

B

21.50 (3.76) 51.43 (6.44) 56.03

22.00 (3.03) 40.87 (4.70) 62.90

Condiments A

& Spices B

11.40 (1.99) 24.40 (3.05) 30.53

20.00 (2.76) 24.37 (2.80) 34.94

(7.22)

(7.21)

(5.68)

(5.40)

(3.10)

(3.00)

99.08 (71.11) 134.57

95.69 (6.48) 144.34

82.43 (5.92) 111.91

61.94 (5-55) 126.97

44.18 (3.17) 52.60

38.28 (2.59) 52.37

(6.88)

(6.91)

(5.72)

(6.08)

(2.69)

(3.51)

310.00 (9.93) 330.00 (9.71) 600.00 (11.67) 1,200.00 (20.38)

171.40 (5.66) 158.33 (6.34) 93.00 (8.57)

275.67 (8.83) 190.00 (5.59) 215.00 (4.18) 295.00 (5.00)

16'7.00 (5.51) 166.67 (6.67)

150.00 (4.81) 176.00 (5.18)

68.70 68.33 (2.74)

86.67 (2.78) 111.00 (3.27)

50.00

100.00

100w00

25.00

135.93

96.35 (6.84)

(9.61)

(8.67)

269.00 (8.88) 213.33 (8.54) 150.00 (13.84)

CONTINUATION

(8.96) -0.98

_

104.12 (6.87) -1.32

(4.61) -

(1.95) 200.00

(2.27)

(9.23) -

(3.40) 82.03 81.73 (5-41) (5.80) -0-004

(0.49) 300.00 (5.09) 41.33 (2.73)

40.62 (2.88) -0.13

U

Tea 4

Gur

Sugar

Table

3.21:

Coffee, A

etc. B

B

A

B

A

16.00 (2.21) 25.80 (2.97) 34.61 (2.97) 56.58 (3.83) 92.71 (4.44) 73.33 (2.35) 57.60 (1.69)

7.30 (1.28) 11.49

16.00

15.00

-

16.40 (2.86) 21.60 (2.70) 19.41 (2.98) 31.07 (2.23) 42-34 (2.16) 70.40 (2.32) 45.00 (1.80) _

10.00

14.92 (1.28) 13.10 (0.89) 31.68 (1.52) 48.67 (1.56) 39.80 (1.17)

12.00 (2.10) 11.29 (1.41) 11.24 (1.14) 27.28 (1.96) 34.19 (1.75) 139.50 (4.61) 100.00 (4 00)

(1.48)

(0.29)

A

B

18.50 (3.23) 22.89 (2.86) 30.56 (3.10) 37.14 (2.67) 57.21 (2.92) 119.90 (3.96) 81.67 (3.27)

21.60 (2.98) 19.83 (2.28) 64.47

6,20 (0.82)

4.00 (0.70)

16.80

6.03

(1.93) 15.49 (1.33) 15.58 (1.06) 10.55 (0.98) 25.33 (0.81) 36.40 (1.07)

(0.75) 10121 (1.04) 13.20 (0.95) 25.32 (1.29) 24.60 (0.81) 21.33 (0.85)

64.00

75.00

-

(5.90)

(1.46) 192.00 (3.26)

5.90 (1.03) 8.91 (1.12) 13.56 (1.38) 18.80 (1.35) 21.49 (1o10) 35.10 (1.16) 26.00 (1.04) 12.00 (1.11) _

-

(5.54) 44.67 (3.03) 69.92 (3.35) 84.00 (2.69) 77.20 (2.27)

Note:

Figures

(1.42)

64.00

(0.82)

(1.09)

parentheses

18.18 (1.20)

14.52 (1.03) -1.59

-0.07 within

3.60 (0.50) 12.30

48.00

17.19 (1.13)

17.06 (1.21)

52.47 42.23 (3,00) (3,46) -2.91

Others

Pan

Tobacco A

B

A

CONTTINUATION

represent

percentages

1,800.00

(1.38) 20.17 (2.32) 30.94 (2.67) 31.24 (2.12) 47.29 (2.26) 40°00 (1.28) 46.oo (1.35) -

(35.02) -

-

-

40.00

(9.23)

1.00 (0.14) 15.33 (1.76) 18.86 (1.62) 28.84 (1.95) 66.89 (3.20) 38,33 (1.23) 134.00 (3.943 200.00 (3.90)

-

300.00

(1.44) 18.97 (1.92) 30.15 (2.16) 68.32 (3.49) 181.00

(5.98) 70.00 (2.80) 100.00

(0.68) 60.90 (4.02)

29.17 (2.07) -3.08

of expendi-ture

33.05 (2.35)

32,40 (2.14) 0.23

on food- items.

B

(5.09) 41.24 (2.93)

35.75 (2.36) 0.82

Table 3.21:

EXPE DITURE 0N FOOD ITEMS BY THE SAMPLE URBANHOUSEHOLDS MONTHLY AVERAGE (BY MONTHLY EXPENDITU RE GROUPS) (Taka)

Number of Monthly Expenditure Households B A Groups Below 1,000

2,000- 2,999 3,000- 4X999

11 34 15

1

All Groups

25 21 7

739.17

757.10

(100.00) (100.00) 1,288.45 1,262.09 (100.oo) (100.00) 1,647.50 1,763.43 (100.007(100.00) 2t534.44 2,563.57 -100.00) (100.00)

3

-

100.00) 2,930.83 4,O64.50 (100.00) (100o00)

A

B

-

-

-

-

234.00

232.50

52.00

(31.45)

(6.87)

(4.08)

285.36 (30.31) 336:.20 (26.64) 372.38 369.57 (14-42)

51.22 (3.36) 57.88 (4.49) 68.30 (3.87) 94.06 (3.71)

37.82 (4.01) 60.40 (4.79) 57.33 (3.48) 57.14

-

11.00

(29.20)

374.12 (29.04)

466.40 (26-45) 488.13 (19.26) 336.00

(8.16) 530.00 (13.04)

-

-

-

-

-

-

-

-

-

76

76

(100.00)

tZ' Values

B

-

1 540.54 1,453.96

!1CC,00)

0.75

Wheat

Rice A

(100.00) (100.00) (30.91) 279.26 941.37 956.37

4 120.00

_

2

10,000-14,999

& Above

14

8

7,500-9,999

20,000

6

,

5,000-7,499

15,000-19,999

-

-

1,0OO- 1,499

1,500-1,999

Expanditure on Food Items B A

(22.60)

453.33 (15.46)

30-17

(2.23) -

(0.27) 175.00 (4.31)

-

-

-

-

64.86

(23.13) (24.99) 1.76

(4.21)

53-07

336.34

384.99

69.67 (2.38)

(3.65) 1.86

Table

Pulses

Milk & Milk Prod.ucts A B

A

B

29.00

24.00

46.90

(3.83)

(3.25)

(6.19)

29.27

27r86

Edible Fats. A

3.21:

CONTDlXTATION

Oil, etc.

Meat A

B

A

44z50 (6.02)

50.40

30.83

11.20

(6.66)

(4.17)

44.21

44.82

53.00

(4.69) 57.53 (4.47)

(5.63) 69.88 (5.55)

(1.48) 47.73 (4.99) 40.18 (3.12)

87.57

45.47

(3.06) (2.96) 37.15 46.96 (2.88) (3.73)

(10.55) 103*26 (8.01)

53.33 (7.21) 79.93 (8.49) 131.15 (10.39)

60.07

42.90

128.07

163.21

56.13

71.29

134.73

(3.41) 53.75

(2.60) 54.14

(7.26) 248.13

(9.91) 213.00

(3.18) 157.75

(4.33) 97.86

(7.64) 230.63

(2.12)

(2.11)

(9.79)

(9.10)

-

(6.22) 132.00 (3.20)

(3.82)

40-00

(8.31) -

-

168.00 (4.08) 238.00

100.91

450.00

4.Co00

58.51 (4.54)

(4.70) 49.26 (3.91)

(5.28) 47.97 (5.02)

(0.97) 175.00

74.67

495.00

391.00

123.00

(4.30)

(2.55)

(12.18)

(13.34)

(3.02)

151.17 (5.16)

45.41 (2-95)

42.26 (2.91)

134.23 (8.71)

142.23 (9p79)

68.41 (4.44)

62.54 (4.30)

(10.92)

0.81

-0.46

Poultry

B

0.78

Eggs B

A

B

5.33 19.00 (0.72) (2.51)

10.50 (1.42)

31.07

21.64

(3.30)

21.00 (2.19)

(2.30) 49e54

(3.75)

32.93 (2.56)

83.62

58.73

(5.08) 187.86

(3.33) 89.88

(?.67)

(7.33) -

1i6.67

400.00 (9.71) 275.00

(3.55) 20.00

200.00

(0.49) 210.00

85.00

(5§.6)

(6.03)

(6.77)

(6.82)

(5.17)

(2.90)

94.88 (6.16)

83.09 (5.71)

67.57 (4.39)

69.99 (4.82)

45.86 (2.98)

52.26 (3.59)

*(5.32) (2.58) 181.71 194.50 (7.09) -

0.75

47,24

-0.17

(3.92)

58.14 (3.53) 127.29

1

(4.96) -

-0.69

0

1

Table 3.21: Other Cereals B A

1.60 (0.21) -

-

3.86

(0.41) 3.62 (0.28) 8.67 (0.49) 19.38 (0.77) 40.00

3.28 (0.25) 4.48 (0.27) 55.71 (2.17) -

(0.97) -

5.33 (0.18)

8.37 6.00 (0.57) (0.39) -0.56

Fish A

B

102.00 (13.47) 99.09 (10.36) 175.15 (13-59) 193.00 (10.94) 300.00 (11.84)

73.33 (9.92) 115.71 (12.29) 149.40 (11.83) 208.10 (12.63) 294.29 (11.48)

750.00

(18.20) 600.00 (14.76)

-

300.00 (10.24)

172.70 194.74 (11.88) (12.64) 1.08

CONTINUATION

Vegetables B A

57.00 (7.53) 68.27 (7.14) 106.53 (8.27) 149.20 (8.46) 181.38 (7.16)

69.33

(9.3-) 76.79 (8.16) 93-44 (7.40) 150.00 (9.10) 164.14 (6.40)

330.00

(8.01) 365.00 (8.98)

229.67 (7.84)

115.99 123.78 (7.98) (8.03) 0.68

Fruits A

B

27.00

30.00 (4.06) 25.71 (2-73) 40.68 (3.23) 61.90 (3-76) 108.57

(3.57) 28.64 (2.99) 46.62 (3.62) 59,00 (3.35) 110.00 (4.34) 5°°.00 (12.13) 450.00 (11.07)

(4.24) 4-

166.67 (5.69)

54.17 (3.73)

68.42 ( 1.20

Condiments & Spices B A

15.00 (1.98) 16.47 (1.72) 26.97 (2.09) 39.00 (2.21) 39.13 (1.54) 100.00 (2.43) 110.00 (2.71)

14.17 (1.92) 18.21 (1-93) 28.48 (2.25)) 40.00 (2.43) 50.00 (1,95) -

83.33 (2.84)

32.79 (2.25)

31.46 (2.04) 0.32

Table 3.21; CONTIflUATION

A

B

23.80 (3O14) 30.44 (3.14) 28.65 (2.22) 40.73 (2.31) 94.13 (3.71) 65.0o (1.58) 77.50

17.00 (2.30) 21.18 (2.25) 31.38 (a.48) 48.57 (2.95) 68.00 (2.65) -

(1.91)

(1.83)

53.67

37.37 39.63 (2.57) (2.57) 0.52 Note:

A

B

0

-

0.57 2.18. (0.23) (0.06) 3.68 (0.29) 6.43 0.80 (0.38) (0.05) 4.00 171.00 (0.16) (0.70)

0

-

0

_

A

8.20 (1.09) 18.64 (1.95) 18.44 (1.43) 25.73 (1.46) 23.38

(o.99)

48.00 (1.16) 26.00

(0.64)

2.03 2.54 (0.16) (0.14) 0.41

B

B

A

53.33 13.33 (7.22) (1.80) 33.57 23.64 18.07 (1.92) (2.47) (3.57) 43.00 39.56 14.68 (1.17) (3.07) (3.40) 40.48 80.00 21.57 (2.46) (1.31) (4.54) 70.00 266.43 32.57 (10.39) (2.76) (1.27) 400.00 (9.71) 266.67 50.00 30.67 (9.09) (1.23) (1o05)

19.38 20.34 (1.32) (1.33) 0.40

50.86 (3.30)

70.79 (4.87)

-1.20

Others

Pan

Tobacco

Tea, Coffee, etc.

Gur

Sugar

A

19.00 (2.51) 19.09 (2.00) 17.50 (1.36) 27.00 (1.53) 20.00 (0.79) 30.00 (0.73) 40.00

(0.98)

B

A

B

32.50 21.00 5.00 (4.40) (2.77) (0.68) 35.00 27.73 11.79 (2.90) (3.72) (1.25) 53.72 60.18 13.40 (1.06) (4.67) (4.25) 12.2.40 113.81 15.71 (0.95) (6.94) (6.91) 27.86 116.25 205.71 (8.02) (4.59) (1.09) 300.00 (7.28) 150.00 43.33 125.00 (5.12) (3-07) (1.48)

15.59 20.72 (1.35) (1.07) 1.40

Figures within parentheses representpercentages of expenditureon food items.

83.00 75.95 (4.93) (5.71) -0.44

- 121 -

households. On the contraryj it must have induced the receiving households to increase their expenditureand emulate the spending pattern of those households which already had similar levels of income. 3.39 Table 3.22 shows the number of householdspurchasing various types of consumer durablesand amnountspent per household on the items during 1974-75 and 1978-79. In the rural areas, a larger number of A householdspurchased radiorecorders, televisions and refrigerators while in the urban area a larger number of these householdspurchased radio-recorders,watches and clocks, and refrigerators. However, A householdsin the rural area spent more on radios, radio-recorders, televisions,watches and clocks, bicycles and cars compared to the B households. The differenceis statisticallysignificantonly in the case of radios and watches and clocks. On the other hand, A households in the urban area spent more on all items except bicycles,motorcycles and cars. The differenceis statistically resignifi6ant only in the case of radios. Thus it is seen that the remittance ceivinghouseholds do spend more than other households on some consumer durables. Table 3.22: PURCHASE OF CONSUMERDURABLES BY THE DURING1974-75 TO 1978-79 SAMPLEHOUSEHOLDS

Items Purchased

Number of Households Purchasiug-Items A B Rural Urban Rural Urban

Radios Radio-recorders

63 45

33 26

77 39

Record Players

-

-

-

Televisions Watches & Clocks Refrigerators Bicycles Cars Motorcycles

Others

12 117 4 22 1 -

9

23 31 10 3 1

5 128 2 38 1

40 25 1

25 27 7 9 6

Amount Spent on the Items Per Household (Taka) A B Rural urban Rural Urban 971 2,981 -

1,136 2,904 -

365 2,850

654 2,802

-

2,100

5t875 4,970 5,400 4,336 1,192 1,287 847 993 7,625 8,160 9,750 5,443 1,034 923 812 1,647 100,000 70,000 22,000 77,833

3

-

2

9

11

9 1,361.11't833.33 5,732

-

7,467

-

8,000

1,124

3.40 Another importanthypothesis concerningthe impact of remittancemoney on expenditurepatterns is that these householdshave a tendency to spend more on the purchase of land and the constructionof houses. Data needed to test this hypothesisare presented in Tables 3.23 and 3.24. Table 3.23 shows the number of householdswho purchased land, amount of land purchased per household7 as well as the amount spent per household on the purchase of land during 1974-75 to 1978-79 are higher for the remittancereceiving households compared to the other households in the rural area. These differencesare statisticallysignificant. In the urban area a larger number of 'remittancereceiving householdspurchased land. It is, however, interestingto note that although the amount of land purchased by them was, on an average, smaller than other households, the amount spent by them was higher. There can be several explanations for this. For example, it is possible that they bought more urban land compared to other households; since land in the urban area is much more expensive compared to that in the rural area, buying more urban land can explain the higher amount spent despite a smaller amount of land purchased. It is also possible that the remittance receiving households in the urban area purchased better quality land which is also more expensive.

- 122 -

Table

3.23: PURCHASEOF LAMDBY THE SAMPLERURALHOUSEHOLDS DURING1974-75 TO 1978-79(BY MONTHLY INCOMEGROUPS) Nlumber of Households Purchasing Land A B

Monthly Income Groups Below

1,000

1

1,000- 1,499 1,500- 1,999 21000- 2,999 3,000- 4,999 5,000- 7,499 7,500- 9,999 10,000-14,999 15,000-19,999 20,000 & Above All Groups tZ' Values

-

5 4 13 27 18 13 6 4

8 8 11 3 2 1

3 94

33

-

Amount of Land Purchased Pe: Household (Acres) A B

Amount Spent Per Household for Purchase of Land (Taka) A B

2.00

80,000

-

0.54 0.86 0.70 0.82 2.33 0.60 -

0.78 0.45 0.60 0.71 1.41 2.19 1.28 2-55

1.83

-

1.19

0.81

-

37,710 13,500 21.769 26,948 52,311 74,877 105,750 144,250

-

9,550 18,500 15,455 22,000 38,500 120,000 -

121,667 51,134

-

19,921

3.99

1.97

Table 3.23: PURCHASE OF LAND BY THE SAMPLE URBAN HOUSEHOLDS DURING 1974-75 TO 1978-79 (BY MONTHLY INCOME GROUPS)

Monthly Income

Number of Households Purchasing Land

Amount of Land Purchased Per Household (Acres)

Groups

A

B

A

Below 1,000

-

-

-

-

1 -

2,000- 2,999 3,000- 4,999 5,000- 7,499 7,500- 9,999 10,O00-14,999 15,000-19t999

1 2 3 2 3 2 -

20,000 & Above

-

-

13

9

1,000-1,499 1,500- 1,999

All Groups 'tZ or 'Tt Values

4 1 1 1 1 -

B

Amount Spent Per Household for Purchase of Land (Taka) A

B -

0.15

-

0.15 0.37 0.08 0.36 0.08 0.13 -

-

0.16 1.70

0.80 0.10 0.30 -

4,000 10,150 26,667 59,996 63,167 30,750 -

3,000 -

21,875 57,000 50,000 60,000 15,000 -

-

--

0.18

0.33 n.c.

-

36,561

30,278

0.54

- 123 -

3.41 Similarly, more householdg of sub-sample A in both rural and urban areas made investmentsin the constructionof houses (see Table 3.24). The amount spent by them during 1974-75 to 1978-79 was, on average, much higher than for households which do not receive remittances,and the differenceis statisticallysignificant for rural sub-samples. The amount spent by the rural A households for improvements and repairs of houpes was also much higher than that spent by the rural B households; the difference is statistically significant. The opposite, however, is true in the urban area. Table 3.24: INVESTVIET IN HOUSESBY THE SAMPLERURALHOUSEHOLDS DURING1974-75 TO 1978-79 (BY MONTHLY INCOMEGROUPS)

Monthly Income Groups

Investment in New Construction Number of Amount Spent Households Per Household A B A B

Below 1,000 1,OOO- 1,499 1,500- 1,999 2,000- 2,999 3,000- 4,999

1 2 4 16 16

5 13 17

3

4

600 2,000 18,250 11,188 17,700

6,467 7t750 8,800 17,931 14,000

Investmentin Improvements, Repairs, otc. Number of Amount Spent Households Per Household A B A B 3

975

745

12 26 49

13 20 34 52 41

844 2,005 2,745

248 1,145 2,043

4

1,017

2,188

5,000- 7,499

19

4

42,384

26t500

39

6

2,945

7,683

7,500- 9,999 10,000-14,999 15,000-19,999 20,000 & Above

14 7 5 2

2 1

25,000 40,000 -

13 6 4 -

2 2 -

1

1,496 4,083 3,425 -

2,150 2,750

-

81,750 60,286 215,600 25,450

All Groups

86

49

46,983

15,541

156

171

2,412

'Z' Values

-

2.63

-

4,000

1,491 2.56

- 124 -

Table

3.24: INVESTMENT IN HOUSES BY THE SAMPLE URBAN HOUSEHOLDS DURIING 1974-75 TO 1978-79 (BY MONTHLY INCOME GROUPS) Investment

Monthly Income Groups Below 1,000 1,0001,499 1,500-1,999 2,000- 2,999

Investmentin New Construction Number of Amount Spent Households Per Household (Taka) A

B

A

B

-

-

-

_ -

1 2

1 2 5

-

1

-

2

1

15,000

5,000- 7,499 7,500- 9,999 10,000-14,999

6 2 -

-

53,667

20,000 & Above

All Groups 11 'Z' or 'T' Values

-

-

1

18,000

-

29,500 -

Im-

(Taka)

B

A

3,000- 4,999

15,000-19,999

in

provements, Repairs, etc. Amount Spent Number of Per Household Households

17,000 -

B

-

-

2,500 6,475

200 750 30,800

15

6

6,830

5,417

5 4

8,800 13,500 2,400 -

13,750 240,000 2,000 -

-

1

5 1

-

-

-

28

21

17,000 57,182 n.c.

A

I

7,746 23,760 -1.46

3.42 Finally, the hypothesis that the remittancereceivinghouseholds care less about investmentsin directly productive activitieslike agricultureand industry remains to be examined. Table 3.25 provides the relevantdata. In the rural area the number of householdswhich made some investmentin agriculturedoes not differ much between the two sub-samples. The amount invested per household is only slightlyhigher for the A households,but this differenceis not statistically significant. Only one household from each of the sub-samplesinvested in industry, and both of them reported an equal amount of investment. On the other hand, a much larger number of B households reported investmentin business although the amount invested per household is higher in the case of A households. This differenceis not statisticallysignificant. In the urban area, the amount investedin business by the B householdswas, on the average,higher than that of the remittancereceiving households. The difference,however, is not significant. Only one household in sub-sampleA reported investmentin industry,while none in sub-sampleB reported such investment. No householdmade any investmentin agriculture. 3.43 Thus it is clear that the households receiving remittancemoney do not invest more in productiveactivitieslike agricultureand industry. Even in business, only the rural householdsreceiving remittancemoney are reported to have made more investmentsthan the B households. But in the urban area, these households have investedmore than the A households. Thus it appears that remittancemoney is not making any notable contributiontowards creating opportunitiesfor productive employmentwithin the economy.

AMD BUSINESS BY THE IS AGRICULTURE,DTDUSTRY WTVESTMENTS Table 3.25: MONTHLYINCOMEGROUPS) (BY 1978-79 TO 1974-75 DURIUG HOUSEHOLDS RURAL SAMPLE (Taka) in Industry Investment in Agriculture Investment Amount Spent Number of Anount Spent Number of Household-s Per Household. Households Per Household

Monthly Income

B

A

B

A

B

A

B

A

B

-

-

-

-

-

8

-

17,000

-

2

-

4,750

Groups

A

B

A

Below 1,000

-

9

-

1,000- 1,499

2

9

1,150

1,061

-

1,500- 1,999

3

10

2,033

1,352

-

-

21000- 2,999

7

23

686

1X604

1

1

3,000-4,999

20

20

1,220

1,620

-

-

-

5,000-7,499

22

5

1,837

4,190

-

-

_

9,999

7

2

2,587

3,000

10,000-14,999 6

-

1,433

_

15,000-19,999

3

-

4,267

_

20,000 & Above

1

-

15,000

_

78

1,866

7,500-

All Groups tzt or IT' Values

71

689

1,1609 0.78

in Business Investment Amount Spent Number of Househo.lds Per Household

-

15,000

15,000

_

1

10

2,000

251900

4

15

20,875

16,600

5

17

3

4

83,333

57,500

1,090,000

9,800 27,353

-

-

-

1

-

-

-

-

I

-

_

_

_

2

-

237,500

_

_

_

2

1

450,00

10,000

1

1

17

59

103X500

44,466

-

_

15,000

15,000

n.c.

175,OOO -

1-70

3.25:

Table

INVESTMENTSIN INDUSTRY AND BUSI1ESS BY THE SAMPLE URBANHOUSEHOLDS DURING 1974-75 TO 1978-79 (BY MONTHLYINCOME GROUPS) (Taka)

Investment in Industry Number of Households Amount Spent per Household B A B A

Monthly Income Groups

Investment in Business Amount Spent per Household Households of Number B A B A

-

-

1,000- 1,499

-

-

-

-

-

-

-

-

1,500- 1,999

-

-

-

-

1

1

10,000

25,000

2,000- 2,999

-

-

-

-

1

3

15,000

46,ooo

3,000- 4,999

-

-

-

-

5

8

17,000

91,875

7,499

1

-

30,000

-

5

4

23,200

62,000

7,500- 9,999

-

-

-

-

2

1

35,000

10,000-14,999

-

-

-

-

2

-

310,000C-

15,000-19,999

-

-

-

-

20,000 & Above

-

-

-

-

-

-

-

-

All Groups

1

-

-

16

17

57,250

82,706

Below 1,000

5,000-

'Z' or T'. Values Note:

30,000 n.c.

None of the households made any investments in Agriculture.

260,000

-o.65

- 127 -

E. Uses to Which the RemittanceMoney is Put by the Receiving Households 3.44 The questionnaireused for the survey was also designed to find out the part of expenditureson various items financed from remittancemoney. It is true that while making an expenditureone does not usually distinguishbetween sources from which the income has come, but there are items (e.g. consumerdurables, ornaments, land, houses, etc.) which are not usually purchased from current income and which involve large expenditures. In such cases, the respondentscould tell quite easily how much of the total expenditurewas financed from remittancemoney. Moreover, for many households,remittancemoney forms more than three-fourthsof total income; and for them it was not too difficult to identify the sources of finance for consumer goods. But not all the respondentscould give such a breakdown of total expenditures,and some of them could do it for some items, while others did it for different items. Nevertheless,the data was processed,and in doing so only those scheduleswere used where such a breakdown is available. The following analysis is based on this data. 3.45 First, it was seen how much of the remittancereceived by a household during a year was used for meeting consumptionexpenditurein general and for the consumptionof food and clothing in particular;and second, how much of the yearly remittanceis used for festivals and ceremonies. The necessary data are presented in Tables 3.26, 3.27 and 3.28. Table 3.26 indicates that on an average, the households spend less than half the remittancereceived during a year on consumption. Even if it is assumed that some part of the remittancemoney is used for other purposes like tax and interest payment, gifts, donations,etc., it is apparent that Table 3.26: USE OF FOREIGN REMITTANCESFOR CONSUMPTIONBY THE RECEIVINGHOUSEHOLDSDURING 1978-79 RemittanceReceived Per Household During 1978-79 (Taka) Rural Urban

Monthly Household Income Groups Below 1,000

1,000- 1,499 1,500- 1,999 2,000- 2,999 3,000- 4,999 5,000- 7,499 7,500- 9,999 10,000-14,999

556

1,013 1,457 1,947 2,957 4,709 7,436 11,238

-

1,022 1,369 2,243 3,021 4,609 6,000 7,917

Percentageof the RemittanceMoney Used for Consumption Expenditure Rural Urban 182.78

96.61 65.04 65.42 52.03 51.22 39.01 28.71

-

155.37 116.89 120.65 59.08 47.92 10.90 68.90

15,000-19,999

10,278

-

31.71

-

20,000 & Above All Groups

35,417 4,033

83,333 5,196

12.43 45.12

7.72 41.47

Note:

This Table is based on the following number of schedules: Rural: 172 out of 201 schedules Urban: 42 out of 76 schedules

Table

3.27:

EXPENDITURE, REMITTANCE AND NON-REMITTANCEINCOME OF THE REMITTANCERECEIVING HOUSEHOLDS (Taka) Monthly

NRI per

Monthly

Monthlv

Income

Groups

1

Below 1,000 1,000- 1,499

375.00 356.88

1,500- 1,999

412.73

2,000-

736.36

2,999

RI per

Household

HRI1u,hnld R

U

303.45 587.86

558.33 900.11

358.72

1,283.61 1,883.71

641.28

R

339.58 716.62

Monthly Expenditure (E) Per Household U R

E - NRI U

R

(E - NBI) as of Monthly RI U R

1,770.92 1,712.93

1,634.54 1,484.70

1,395.92 1,356.05

1,331.09 896.84

250.02 150.65

391.98 125.15

1,448.22

2,042.11

1,403.99

1,629.38

1,045.27

126*94

72.18

1,838.30

3,199.43

1,812.24

2,463.07

1,170.96

130.76

63.70

3,000- 4,999

1,163.49

1,138.96

2,687.96

2,819.79

2,664.39

2,636.80

1,500.90

1,497.84

55.84

53.12

5,000- 7,499

1,863.39

1,457.54

3,998.95

4,577.38

3,844.63

3,226.16

1,981.24

1,768.62

49.54

38.64

7,500-

3,424.00

1,128.36

4,966.67

7,333.33

3,375.97

3,778.68

-48.03

2,650.32

0.97

36.14

5,104.17

1,377.31

6,562.50

10,861.11

8,742.46

4,240.34

3,638.17

2,863.03

55.44

26.36

15,000-19,999

-

8,285.35

-

10,304.95

-

4,427.23

-

-3,858.12

-

20,000 and Above

-

7,951.39

83,333.33

31,055.55

6,768.33

5,922.13

6,768.33

-2,029.26

8.12

6.53

1,426.87

1,321.04

3,927.04

4,036.25

3,254.78

2,678.86

1,827.91

46.55

33.64

9,999

10,000-14,999

Total Note:

NRI denotes non-remittance income; RI denotes remittance income.

1,357.82

37.44

1 X

- 129 -

Table 3.28: USE OF FOREIGN REMITTANCESFOR CONSUMPTIONOF FOOD BY THE RECEIVING HOUSEHOLDSDURING 1978-79 Monthly Household Income Groups

RemittanceReceived Per Household During 1978-79 (Taka) Rural Urban

Below 1,000 1,000- 1,499 1,500- 1,999 2,000- 2,999 3,000- 4,999 5,000- 7,499

556 1,057 1,551 2,143 2,991 4,654

1,022 1,517 2,157 3,279 4,771

Percentageof the RemittanceMoney Used for Consumption of Food Rural Urban 106.47 63.74 41.05 31.66 26.18 19.22

97.15 67.03 65.55 30.76 21.29

7,500- 9,999

7,222

-

17.27

-

10,000-14,999

11,240

8,333

11.89

22.22

15,000-19,999

10,278

-

9.37

20,000 & Above All Groups

35,417 4,235

83,333 5,592

3.11 19.89

Note:

-

2.87 19.93

This Table is based on the following number of schedules: Rural: 164 out of 201 schedules Urban: 33 out of 76 schedules

savings out of the remittancereceived is quite high. And this is consistentwith the earlier finding that the remittancereceivinghouseholds save significantly higher amounts than other households at similar income levels. One interesting fact is that the proportionof remittancemoney used for consumptionvaries inversely with the level of income of the household. This implies that higher income households save more from the remittancereceived. Moreover, the urban households use a slightly lower proportionof the remittancemoney for consumption. This is also consistentwith the fact that the remittancereceived by them is higher than that received by the rural households. 3.47 How much of the remittancereceived is devoted to current expenditurecan also be ascertainedin an alternativeway. Since the income of a household is known by sources,the non-remittancepart of the income can be easily comparedwith the total expenditure. If the total expenditure (E) exceeds non-remittanceincome (NRI), the excess can be assumed to have been met from remittanceincome (RI). This excess of expenditureover NRI as a percentage of RI can give an indicationof the part of RI used to meet current expenditure. Table 3.27 presents the relevant data. It is clear that this excess represents 46.55% and 33.64% of the remittance income respectively. Thus, it can be concluded that these householdsmust have spent 46.55% and 33.64% of their remittance income for meeting current expenditures. These figures provide good support to the direct observationswhich show that urban and rural households spend respectively41.47% and 45.12% of their remittance income to meet consumptionneeds. The closeness of these two sets of figures should increase the reliabilityof the methodologyof identifyingthe uses to which the remittancemoney is put.

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3.48 Table 3.28 shows that nearly 20% of the remittancereceived during a year is used for the purchase of food; and this proportionis almost equal for both rural and urban households. Here again, the percentageof remittancemoney spent on food varies inverselywith the level of income. 3.49 A much smaller proportion (nearly 4%) of the remittancemoney is, however, spent on clothing. This is also the same for both rural and urban households. It is also interestingto note that the expenditureon clothingmet from remittance money is not systematicallyrelated to the level of income of the household (see Table 3.29). Table 3.29: USE OF FOREIGN REMITTANCESFOR THE CONSUMPTIONOF CLOTHING BY THE RECEIVING HOUSEHOLDSDURING 1978-79 Monthly Household Income Groups Below 1,000 1,000- 1,499 1,500- 1,999 2,000- 2,999 3,000- 4,999 5,000- 7,499 7,500- 9,999 10,000-14,999 15,000-19,999 20,000 & Above All Groups . Note:

RemittanceReceived Per Household During 1978-79 (Taka) Rural Urban 6,675 10,950 17,379 23,359 35,721 55,917 89,231 130,333 123,750 425,000 49,385

26,642 18,115 23,521 34,144 55,311 36,500 100,000 1,000,000 55,822

Percentageof the RemittanceMoney Used for Consumption of Clothing Rural Urban 9.48 7.76 5.43 5.70 5.89 4.37 2.70 2.31 3.13 0.85 3.95

7.69 4.99 8.85 6.83 4.39 10.55 2.70 _ 0.40 3.96

This Table is based on the followingnumber of schedules: Rural: 173 out of 201 schedules Urban: 47 out of 76 schedules

3.50 Similarly,the proportion spent on festivals and ceremoniesdoes not vary systematicallywith the level of income (see Table 3.30). But this proportion is higher than that spent on clothing. Moreover, the rural households appear to spent a much higher proportion (7.12%)compared to the urban ones (2.80%). 3.51 In order to see the proportionof remittancemoney used for the purchase of consumer durables, land and ornaments,constructionand improvementof houses, repayment of debt and investmentin agriculture,industry or business, the period of referencewas extended from one to five years. The amount spent during 1974-75 to 1978-79for pqrposesmentioned above was comparedwith the amount of remittance received during this period. 3.52 Table 3.31, for example, shows that nearly 4% of the remittancereceived has been spent on consumer durables. This, however, differs.quite significantly between the rural and urban households; the latter spent a much higher proportion (9.43%) compared to the former (2.93%). But this proportiondoes not vary systematically with the level of income, either in the rural or in the urban area.

-

131 -

Table 3.30: USE OF REMITTANCE MONEY FOR FESTIVALS AND CEREMONIES DURING 1978-79 Remittance Received Per Household During 1978-79 (Taka) Rural Urban

Monthly Household Income Groups Below 1,000 1,000- 1,499 1,500- 1,999 2,000- 2,999 3,000- 4,999 5,000- 7,499 7,500- 9,999 10,000-14,999 15,000-19,999 20,000 & Above All Groups Note:

13,577 16,150 23,421 37,317 56,857 95,000 1,000,000 60,299

8.80 7.43 4.06 6.92 7.42 10.20 6.07 7.29 5.96 2.11 7.12

5.52 3.51 4.13 4.33 6.71 2.37 0.20 2.80

This Table is based on the following number of schedules: Rural: 164 out of 201 schedules Urban: 39 out of 76 schedules Table

3.31:

USE OF REMITTANCE MONEY FOR THE PURCHASE OF CONSUMER DURABLES DURING 1974-75 TO 1978-79 Remittance Received Per Household 1974-75 to 1978-79 (Taka) Rural Urban

Monthly Household Income Groups Below 1,000 1,000- 1,499 1,500- 1,999 2,000- 2,999 3,000- 4,999 5,000- 7,499 7,500- 9,999 10,000-14,999 15,000-19,999 20,000 & Above All Groups Note:

6,675 12,313 17,562 24,240 35,721 58,114 88,214 134,857 123,750 425,000 50,717

Percentage of the Remittance Money Used for Festivals and Ceremonies Rural Urban

10,000 26,600 42,935 68,507 118,643 225,063 295,125 428,667 909,500 154,421

21,750 21,778 41,047 52,800 68,500 99,000 234,333 65,815

Percentage of the Remittance Money Used for the Purchase of Consumer'Durables Rural Urban 5.00 3.61 3.07 3.23 2.42 2.62 2.32 6.26 1.53 2.93

2.53 6.08 15.41 5.88 10.06 16.39 8.02 9.43

This Table is based on the following number of schedules: Rural: 123 out of 201 schedules Urban: 64 out of 76 schedules

3.53 The proportion of remittance money used for the purchase of land is, however, quite high. Table 3.32 indicates that nearly 29% of the remittances was used for the purchase of land. It is also clear that the rural households spent a

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much larger proportioncompared to the urban. This is not entirely unexpectedin view of the fact that power and prestige in the rural area is much more associated with the ownership of land compared to the urban area. Moreover, it is possible that the attitudetowards life and modern living changes at comparativelyslower pace in the rural area. And that is manifested in the lower proportion of remittance money spent on modern consumer durablesby the rural households. It is, therefore, hardly surprisingthat the rural households use a much larger proportionof the remittancemoney for the purchase of land. Table

3.32:

USE OF REMITTANCE MONEYFOR THE PURCHASE OF LAND DURING 1974-75 TO 1978-79

RemittanceReceived Per Household 1974-75 to 1978-79 (Taka) Rural '-Urban

Monthly Household Income Groups Below 1,000

Percentageof the RemittanceMoney Used for the Purchase of Land Rural Urban

-

1,000- 1,499

30,000

-

6.67

1,500- 1,999

33,000

20,500

51.52

19.51

2,0003,000-

2,999 4,999

63,955 76,728

33,500 44,900

36.67 31.79

30.30 50.11

5,000-

7,499

153,110

62,500

36.34

64.00

7,500-

9,999

259,650

97,000

32.70

45.10

10,000-14,999 15,000-19,999 20,000 & Above

All Groups Note:

307,857 396,400 1,191,000

155,137.

454,000

34.06

_

31.63 13.35

.127,664

.36.58.

-

9.25 .

22.84

This Table is based on the following number of schedules: Rural: 83 out of 201 schedules Urban: 11 out of 76 schedults

3.54 But the proportion spent on constructionand improvementof houses is similar for both rural and urban households (see Table 3.33). This can be explained by the fact that investmentin housing in cities like Dacca and Chittagong gives an attractivereturn. Moreover, this is consideredto be one of the safest areas where investmentcan be made. It should also be noted that quite a substantial proportion (one-fifth)of the remittancemoney is used for investmentin housing. Thus, even at the risk of stretchingthe data a little bit it might be concluded that nearly half the remittancereceived is used for the purchase of land and constructionof houses. 3.55 Compared to this, a smaller proportionhas been used for the purchase of ornaments. While the rural households spent 4.25% of their remittancemoney for this purpose, the urban households spent only 2.85%. And here again, the proportiondoes not seem to vary systematicallywith income (see Table 3.34).

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Table

3.33:

Remittance Received Per Household 1974-75 to 1978-79 (Taka) Rural Urban

Monthly Household Income Groups Below 1,000 1,000- 1,499 1,500- 1,999 2,000- 2,999 3,000- 4,999 5,000- 7,499 7,500- 9,999 10,000-14,999 15,000-19,999 20,000 & Above All Groups

24,300 24,500 39,346 70,991 124,951 242,600 276,667 478,667 1,191,000 I 144,291

_ 284,844 42,321 45,800 52,633 77,250 100,000 70,691

Percentage of the Remittance Money Used for Construction and Improvement of Houses RuralUrban _ 6.00 29.48 14.71 10.06 10.22 27.03 17.88 20.59 35.82 20.23

_ 9.64 20.06 17.66 47.82 8.74 9.00 -

19.42

This Table is based on the following number of schedules: Rural: 145 out of 201 schedules Urban: 25 out of 76 schedules

Note:

Table 3.34:

USE OF REMITTANCE MONEY FOR THE PURCHASE OF GOLD AND OTHER ORNAMENTS DURING 1974-75 TO 1978-79 Remittance Received Per Household 1974-75 to 1978-79 (Taka) Rural Urban

Monthly Household Income Groups Below 1,000 1,000- 1,499 1,500- 1,999 2,000- 2,999 3,000- 4,999 5,000- 7,499 7,500- 9,999 10,000-14,999 15,000-19,999 20,000 & Above All Groups Note:

USE OF REMITTANCE MONEY FOR CONSTRUCTIONAND IMPROVEMENT OF HOUSES DURING 1974-75 TO 1978-79

21,000 31,000 29,500 77,595 134,371 219,889 271,600 181,000 1,281,500 . 161,690

-

39,000 40,000 73,800 100,000 558,000 -

114,500

Percentage of the Remittance Money Used for the Purchase 'of Ornaments Rural Urban 9.52 7.10 13.66 9.00 3.73 3.89 3.10 6.63 1.55 4.24.

This Table is based on the following number of schedules: Rural: 64 out of 201 schedules Urban: 10 out of 76 schedules

20.51 0.50 1.73 1.00 1.61 -

2.85

Table

Monthly Household Income Groups

Below 1,000 1,000- 1,499

3.35.: LSE OF REMITTANCE MONEY FOR IRVESTMENTS IN AGRICULTTURE, AND BUSINESS 1974-75 TO 1978-79 (BY MONTHLY INCOME GROUPS) (Taka)

Remittance Received Per Household Rural Urban

Percentage of the Remittance Received Invested in Agriculture Rural Urban

Percentage of the Remittance Received Invested in Business Rural Urban

-

350,000

-

_

-

22.06

-

5.71

1,500- 1,999

3,400

2,000O-2,999

53,333

53,284

3.97

3,000- 4,999

547635

55,000

1.06

-

2.61

36.36

7,499

116,956

67,800

1.72

-

5.99

32.45

7,500- 9,999

247,40o

100,000

0.85

-

-

30.00

10,000-14,999

381,667

558,000

0.20

-

15,000-19,999

528,000

-

18.91

20,000 & Above 1,281,500

-

11.76

_

7.10

_

5,000-

All Groups Note:

194,416

145t528

_

28.15

10.75 0.63 0

This Table is based on the following number of schedules: Rural: 48 out of 201 sched.ules. U?ban: It out of 76 schedules.

1.52

_

17.52

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3.56 Table 3.35 indicates that it is only the rural householdswho made any investmentsin agricultureout of the remittancemoney. The proportionused is small and does not vary systematicallywith the level of income. The urban households spent a substantialproportion (17.52%)of the remittances in business. Such expenditureis small in the case of rural households. This again can be explained easily by the fact that urban people with better access to the business world, better knowledge and information,and possibly better education are in a more advantageous position to gain from investmentsin business. 3.57 Finally, Table 3.36 indicates that a good proportion (17.03%)of the remittancemoney is used for repayment of earlier debts. Here again, rural and urban householdsdo not demonstrateany significantdifference. Although the expenditure for debt repaymentmay at first appear to be somewhat inconsistentwith the level of income of the households, it is not difficult to find an explanation. The explanationlies in the method of getting jobs in the Middle East countries. Only in recent years some recruiting for such jobs has been done through BMET. Before that the negotiationsfor jobs used to be carried out entirelyby private intermediariesin exchange for a fee which was usually fixed through bargaining. Even now these private channels continue to exist. And the expenditureinvolved in securing a job through them is quite high. The prospectivemigrants do not usually hesitate to meet this expenditureby borrowing, for the expectedreturn in terms of income from jobs in the Middle East is also very high. Thus, it is not difficult to explain the use of a part of the remittancemoney for debt repayments. It is also interestingto note that the proportion of remittancemoney used for this purpose varies inverselywith the level of income. Table 3.36: USE OF REMITTANCEMONEY FOR DEBT REPAYMENT DURING 1974-75 TO 1978-79 Monthly Household Income Groups

RemittanceReceived Per Household 1974-75to 1978-79 (Taka) Rural Urban

Percentage of the RemittanceMoney Used for Debt Repayment Rural Urban

7,350

-

68.02

16,833 27,330 41,909 53,526 110,346

11,686 24,345 44,821 50,267 94,000

22.77 31.94 27.94 21.01 20.69

8.56 47.23 24.54 18.57 11.17

7,500- 9,999 10,000-14,999

198,750 391,500

-

10.31 6.77

-

-

15,00Q-19,999 20,000 & Above All Groups

1,600,000 87,233

_ 53,957

5.31 16.91

18.10

Below 1,000

1,000- 1,499 1,500- 1,999 2,000- 2,999 3,000- 4,999 5,000- 7,499

Note:

This Table is based on the following number of schedules; Rural: 99 out of 201 schedules Urban: 17 out of 76 schedules

-

-

- 136

-

3.58 The pattern of the use of remittancemoney that emerges from the above findings can now be summarized. Since it is an important source of income for many households, they do use a substantialpart of it for current consumption. But the level of savings out of such money, especiallyfor the high income households, is also quite high. The use of these savings for directlyproductive activitieslike agricultureand industry is, however, rather limited. Most of the accumulatedsavings are used for the purchase of land and the constructionand improvement of houses. A good part is also used for the repayment of earlier debts. 3.59 Although the economy of Bangladeshsuffers from a suboptimalityof savings, the savings out of remittancemoney are not going to have a high social value unless they can be directed towards productive purposes. This prompted the examination of the attitude of the sample households towards using their savings for such purposes. When asked whether they would be interestedin making investments for productivepurposes (e.g., setting up a small manufacturingunit, purchasing a tubewell and leasing it out to farmers, purchasingtransport equipment and leasing it) only 38% of the rural householdsand 11% of the urban householdsreplied in the affirmative (see Table 3.37). They were also asked whether they would be interestedin making such investmentsif the Governmentprovided special encouragementin the form of tax exemptions, loans at a low rate of interest, etc. Even then, the percentage of households showing a positive attitude increasedonly to 44% in the case of rural householdsand 14% in the case of urban households. Thus it is evident that not even half the sample householdsare interestedin using their savings in a manner which would increase their social value. Table 3.37: ATTITUDE OF THE SAMPLE HOUSEHOLDSTOWARDS USING THEIR SAVINGS FOR PRODUCTIVEPURPOSES

Category of Households

Percentage of Households Showing UnconditionalPositive

Percentage of Households Showing ConditionalPositive

Attitude

Attitude

Rural Sub-sampleA

37.82

43.78

Rural Sub-sampleB

49.25

59.20

Urban Sub-sampleA

10.53

14.47

Urban Sub-sample B.

10.53

15.79

3.60 It is also interestingto note that a larger percentageof the households not receiving remittancemoney showed positive attitudes towards such investments compared to the remittancereceiving households (see Table 3.37). One can therefore concludethat the social value of savings in the hands of these two types of householdsare likely to be different. In fact, savings generatedby the remittancereceiving households should be attached a lower social value than that of other households. This conclusiongets support from the earlier findings that those receiving remittances spend significantlyhigher amounts on the purchase of land and constructionof houses, and lower amounts for productivepurposes compared to those not receiving such money.

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F.

Some ConcludingObservations

Migration of workers from Bangladeshto the Middle East is a relatively 3.61 recent phenomenon. While this is being looked at both as a means of providing employmentopportunitiesfor the Bangladeshiworkers and as a source of valuable foreign exchange for the country, the profile of the migrants indicates that this was at a significantcost for the economy in terms of the adverse effect on production as well as the costs of education and trainingof the migrant workers. The remittancemoney must have raised the income level of the receiving 3.62 householdssignificantly,for it is seen that the average income of such households is much higher than that of households in the top decile of the national income distribution. But the data do not enable conclusionsto be drawn regarding the impact of remittancemoney on the distributionof income. It is, however, possible to build up a preliminaryhypothesis on the basis of some indirect evidence such as the previous occupationof the migrant worker, income earned by other members of the family, and so on. It appears that most of the householdsfrom which workers emigratedwere possibly in the middle or upper middle income groups. Some of them could be in the lower middle income group as well, but it is difficult to find workers migrating from the poorest or low income households. One conclusion (which,of course, is very tentative)that emerges from the above is this. Remittance money is helping households in the lower middle, middle and upper middle income groups to move upwards in the income scale. The poorer households do not seem to have benefittedmuch from the migration of workers that is taking place and the consequentinflow of remittancemoney. 3.63 As to the impact of remittancemoney on household expenditure,it was seen that the usual hypothesisabout the remittancereceivinghouseholdshaving a greater propensityto spend cannot be supportedby the data. In fact, the propensity to save is much higher for these housholds compared to those which do not receive remittancemoney. An examinationof the compositionof spending shows that there is no systematicdifferencebetween the pattern of spending of the two types of households. The hypothesisthat the remittancereceivinghouseholdshave a propensityto spend more on less essential and luxury items does not get much support from the data. However, they are found to spend more on some consumer durables. 3.64 On the other hand, the remittancereceivers are found to spend higher amounts for the purchase of land and the constructionof houses. So far as expenditure on productive activitieslike agriculture,industry and business is concerned, the differencebetween the two types of householdsdoes not appear significant. A look at the use of the remittancemoney itself reveals that nearly half of it is spent for the purchase of land and the construction,repair and improvementof houses. A substantialpart of it is also used for the repayment of earlier debts. Very little, however, is invested in activitieslike agriculture,industry or business. It is clear, therefore,that the remittancereceived by the households contributesvery little (at least directly) towards the creation of productive employmentopportunities. 3.65 Another conclusionwhich emerges from the above findings is this. Although the remittancereceivinghouseholdshave a propensityto save more, the accumulatedsavings is being used mostly for the purchase of consumer durables,

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constructionof houses, speculationin raal estate, etc. Not much of the savings is invested in directly productive activities. Nor did the attitude of the remittance receiving householdstowards such investmentsappear particularlyencouraging. Hence, the social value attachedto their savings should be lower than that of the savings of other households.

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CHAPTER IV

COST OF TRAINING OF BANGLADESHMIGRANTS TO THE MIDDLE EASTERN COUNTRIES

A.

Introduction

4.1 There has been a rapid increase of migrants in recent years from Bangladesh to the Middle East. Remittances from migrants have greatly boosted the volume of foreign exchange earning of the Government and there is a conscious effort to increase the manpower export to increase foreign exchangeearning. No attempt has so far been made to analyse the cost of training of manpower to assess the cost per unit of export earning. The present study is therefore directed toward determiningthe capital and current cost of (a) trainingprospectivemigrants and their replacements, and (b) the employmentexchangeprogram. 4.2 Informationon costs of education and trainingcan be obtained from universitiesand other educationaland training institutions,and from Government departments. Similarly,cost of the employmentexchange program is available at BMET and other organisationsdealing with migrants. For the purpose of this study, it was decided to use the same 10% sample drawn for the study on the profile of current and prospectivemigrants in Chapter I to prepare an occupationalfile of migrants, spell out the trainingbackground of the migrants, and identifythe training institutionsof the migrants. 4.3 Occupationalfile. Around 3,500 sample cards held at BMET were reproduced for use. Each card was then checked and verified to identify the occupationof the migrants. In all 350 occupationswere identified. 4.4 Training background. For the purpose of the study all 350 occupations were classifiedinto five major occupationalgroups according to the level of education and degree of professionalskills. The groups are: (a) Professional (b) Technical (c) Skilled (d) Semi-skilled (e) Unskilled A brief definition of each of them is given below. (a) Professional. This group consists of people having graduate or higher educational trainingand axecapable of carrying out professional duties. (Professors,graduate teachers, graduate engineers,medical doctors, agriculturalspecialists,scientists,etc.)

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(b) Technical. This group is comprised of diploma engineers,paramedics, nurses, etc. The academic level is below Bachelor's Degree and it was assumed that in some cases people in this group go to school for a couple of years after passing HSC examinations and in other cases after passing SSC examinations. (c) Skilled. This group consists of people like mechanics, carpenters, foremen, blacksmiths,caterers,masons, etc. The academic level is below HSC and it was felt that some workers in this group go to school for some time after passing the SSC examinations. In many institutionsthe requirementis below SSC level. Certain workers who did not have formal training as mentioned above but had 10 years of employmentexperiencewere also included in this group. (d) Semi-skilled. This group consistsof people like book binders, bakers, dyers, drillers, gardeners,ironmen,khalashis, etc. and assistantsto skilled workers mentioned in group (c) above. Workers in this group were assumed to have primary level education and five years of job experience. (e) Unskilled. Workers in this group were assumed not to have any formal education of institutionaltraining. To name a few, the group is comprised of ayahs, agriculturallabourers,barbers, house boys and room boys, etc. and assistantsto skilled workers mentioned in group (c) above. 4.5 Training Institutions. All differentkinds of migrants were classified into five broad occupationalgroups. Each group containspeople with different educationaland trainingbackgrounds. Since the objective of the study was to estimate the average cost of training of a person belonging to each profession, the next step was to identify the various training institutions,if any, where these professionalswere trained. Table 4.1: DIFFERENT PROFESSIONALGROUPS AND THEIR INSTITUTIONS Group

Institution

Professional

Degree College Teachers' Training College AgricultureCollege Medical College EngineeringCollege AgriculturalUniversity EngineeringUniversity University (General)

Technical

IntermediateCollege Polytechnic Institute Nurses Training Centre Paramedical Institute

- 141 -

Table 4.1: CONTINUATION Group

Institution

Skilled

Secondary School VocationalTraining Institute Technical Training Centre Marine Diesel Training Centre Power DevelopmentBoard Training Centre

Semi-skilled

Primary School

Unskilled

No Formal Training

Design of the Study 4.6 Since informationon costs was obtainedfrom a number of educationaland training institutes,and other organisations,it was decided that wherever possible probabilitysampling techniqueswould be followed in selecting the institutionsand organisationsand suitable questionnaireswould be developed for collectingrelevant information. 4.7 SamplingArea. Various training institutionswere identifiedagainst different groups of professionals. It will appear that the study area was spread over the whole of Bangladesh. 4.8 SamplingFrame. Generally, there are two different types of educational institutionsin the country -- public and private. Public institutionsare completely financedby the Government. For this study it was decided to determine the cost to the Governmentof traininga migrant. As a result different public institutions relevant for this purpose were studied. A full listing of the institutions(as of 1978) formed the sampling frame. Eigiteen such frames, one for each type of institution,were prepared. Table 4.2 shows the differentcategoriesof institutions with their numbers. 4.9 Sample Size. A list of various institutionssampled is also given in Table 4.2. The size of the sample varies from institutionto institutiondepending on the size of the population. Table

4.2:

NUMBEROF DIFFERENT PUBLIC INSTITUTIONS IN BANGLADESH, 1978 Total

Institution Degree Colleges Teachers' Training Colleges AgricultureColleges Medical Colleges EngineeringColleges AgriculturalUniversities EngineeringUniversities Universities (General)

Number

of

Sampling

Number

Sample

Fraction

35 6 I 10 3 I I 4

4 3 I 3 2

0.11 0.50 1.00 0.30 0.67 1.00 1.00 0.50

I I

2

- 142 -

Table 4.2: CONTINUATION Institution IntermediateColleges Polytechnic Institutes t Training Centres Nurses Paramedical Institutes Secondary Schools VocationalTraining Institutes Technical Training Centres Marine Diesel Training Centres Power DevelopmentBoard Training Centres Primary Schools

Total Number

Number of Sample

Sampling Fraction

5 17 18 2 152 39 4 1

2 4 3 2 4 2 1

0.40 0.24 0.17 1.00 0.10 0.50 1.00

1 36,484

1 -

1.00 -

4.10 SamplingProcedure. When there were more than two units in the frame, samplinguniltswere selected on the basis of probability samplingtechniques. For units numbering two or less, the entire populationwas taken. To estimate costs of primary and higher secondary education,secondary sources of information rather than primary sources were used. This was done because it appeared too timeconsuming to handle a large size population. 4.11 Questionnaire.Detailed questionnairesto estimate the current (or recurring) cost of trainingmigrants, about the employmentexchangeprogram, and to estimate capital for both categorieswere prepared to cover more or less all relevant items of expenditure.

4.12 Data Collectionand Processing. One research officer and one research assistanthelped the project leader plan the study and analyze the data, design the questionnaires,and train the field staff. Before the start of actual field work, the investigatorswere trained to make sampling frames, do pretestingof questionnaires,locate sampling units, and collect data. Three field investigators were enployed and trained and then moved to their respectiveareas to identify samplingunits and collect data. The field work was over in September 1979. Completed questionnairesand other relevant data were brought to the Institute of StatisticalResearch and Training during the first week of October 1979. These were then edited and checked for processingand tabulationin the second and third weeks of October. Tabulation and analysisof the data were done in the fourth week of October and the first week of November.

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B. Annual Average Recurring Cost of TrainingMigrants

(i) Professionals 4.13 Here an attempt is made to describe the results of estimationof recurring costs of trainingprofessionals. Estimationof capital cost is described later. It was initiallycontemplatedthat average cost of traininga migrant belonging to each professionalgroup should be obtained. Since a particular group includes people coming out of different educationaland training institutesand thereby incurringdifferent costs it appearedunrealistic to calculate an average, even weighted, cost estimation. It was therefore decided to give separateresults of estimationof cost for the different institutionsbelonging to a particular group. 4.14 There may be two types of average recurring costs -- (a) recurring cost per student enrolledand (b) recurring cost of producing a student. Therefore, the results of both have been obtained. As mentioned earlier, lists of different institutionswith their numbers as of 1978 were prepared. For output and enrolment of students, the number of students produced in 1978 and the total enrolment in various classes in 1978-79respectivelywere taken. For total recurring expenditure the reference period was the fiscal year 1978-79. 4.15 To estimate annual average recurring cost per student enrolled, the total recurringcost per student enrolled, the total recurring expenditurefor 1978-79 was divided by the total number of students enrolled in different classes in an institutionin the same year. The expression 'differentclasses'refers to the various levels and years of schooling in an institution. For example, in the year 1978-79 the total number of students enrolled in a medical college would be the total number in the first year class, second year class, third year class, fourth year class, and final year class. In other words, total recurring amount was assumed to have been spent on studentsof all the five classes. 4.16 While calculatingthe recurring cost per student produced, it was assumed that the entire amount of the recurring expenditurein 1978-79in all different classes was spent for the studentsproduced. Therefore,in order to obtain the yearly average recurring cost per student produced, the total recurring expenditurewas divided by the total number of studentsproduced -- the total being obtainedby multiplying the number of studentsproduced in a year by its proper weight, i.e., years of schooling. 4.17 Brief descriptionsof the results of estimationof annual average recurring costs of the training of different professionalsare given below. In Table 4.3 the list of the various institutionssampled in the professionalgroup are presented. Number of studentsenrolled and passed in these institutions,and the teacherstudent ratio are given in Table 4.4. Summary results of cost estimationcan be seen in Table 4.5 while Table 4.6 gives the annual average recurring cost of different levels of expenditureper student.

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Table 4.3:

-

LIST OF THE INSTITUTES SAMPLED Institute

Government B.M. College, Barisal Government Eden Girls' College, Dacca Government Jagannath College, Dacca Government Kushtia College, Kushtia Teachers' Training College, Mymensingh Teachers' Training College, Dacca Teachers' Training College, Comilla Agricultural College, Dacca Medical College, Dacca Medical College, Mymensingh Medical College, Rajshahi Engineering College, Chittagong Engineering College, Khulna Agricultural University, Mymensingh Engineering University, Dacca Dacca University, Dacca Rajshahi University, Rajshahi Table 4.4:

NUMBER OF STUDENTS ENROLLED IN AND PRODUCED BY THE SAMPLE INSTITUTES (1978-79) Number of Students Enrolled

Institute Degree Colleges Teachers' Training Colleges Agriculture College Medical Colleges Engineering Colleges Agricultural University Engineering University Universities (General) Table 4.5:

14,941 897 293 3,529 1,518 2,247 2,220 25,200

Number of Teachers 463 52 58 271 74 408 290 1,212

TeacherStudent Ratio

Number of Students Produced

1:32 1:17 1:5 1:13 1:21 1:6 1:6 1-21

2,366 812 21 455 232 306 267 7,483

AVERAGE RECURRING COST FOR PROFESSIONALS (1978-79)

Institute Degree Colleges Teachers' Training Colleges Agriculture Colleges Medical Colleges Engineering Colleges

Average Recurring Cost Per Student Enrolled 759 2,461 10,850 3,520 4,910

Average Recurring Cost Per Student Produced 2,315 2,719 37,846 5,460 8,032

- 145 -

Table 4.5: CONTINUATION

Institute AgriculturalUniversity EngineeringUniversity Universities (General)

Average Recurring Cost Per Student Enrolled

Average Recurring Cost Per Student Produced

13,091 7,782 3,120

27,856 16,176 5,325

(a) Degree Colleges. There were 35 Governmentdegree colleges in Bangladesh in 1978. Four of these, GovernmentJagannath College,Government Kushtia College, GovernmentB.M. College, and GovernmentEden Girls' College were studied to estimate average recurring cost per student in a year. Estimated annual average recurring cost per student enrolled was Tk. 759, and for student produced Tk. 2,315. (b) Teachers' TrainingColleges. Out of six teachers'training colleges a sample of three, Dacca, Mymensingh and Comilla,were taken. Estimated average annual recurring cost per student enrolledwas found to be Tk. 2,461 and per student produced Tk. 2,719. (c) Agriculture College. There is only one agriculturecollege. Average annual recurring cost per student enrolledwas estimated at Tk. 10,850 in 1978-79and Tk 37,846 per student produced. (d) Medical Colleges. Three out of a total of 10 medical collegeswere sampled -- Dacca Medical College,MymensinghMedical College and Rajshahi Medical College. Average annual recurring cost per student enrolledwas found to be Tk. 3,520 and per student produced Tk. 5,460. (e) EngineeringColleges. Two out of a total of three engineeringcolleges were surveyed-- ChittagongEngineeringCollege and Khulna Engineering College. Annual average recurring cost per student enrolledwas estimated to be Tk. 4,910 and per student produced Tk. 8,032. (f) AgriculturalUniversity. For the purpose of this study relevant information was sought from the only agriculturaluniversity in Bangladeshlocated in Mymensingh. Annual average recurring costs per student enrolled and student producedwere estimated at Tk. 13,091 and Tk. 27,856 respectively. (g) EngineeringUniversity. There is only one engineeringuniversity located in Dacca. Annual average recurring cost per student enrolledwas found to be Tk. 7,782 and per student produced Tk. 16,176. (h) Universities (General). Two of the four general universitiesin Bangladesh in 1978 were surveyed-- Dacca Universityand RajshahiUniversity. Annual average recurring cost was estimated at Tk. 3,120 per student enrolled and Tk. 5,325 per student produced.

Table 4.6: AVERAGE RECURRING COST OF DIFFERENT ITEMS OF EXPENDITUREFOR PROFESSIONALS(1978-79) (Taka)

Institute Degree Colleges Teachers' Training Colleges AgricultureCollege Medical Colleges EngineeringColleges AgriculturalUniversity EngineeringUniversity Universities (General)

Note:

Salary of Salary of Salary of Allowances Miscellaneous Teaching Administrative Supporting and Honoraria Expenditure Staff Per Staff Per Staff Per Student Student Student Per Student Per Student 393 (1,198) 929 (1,026) 2,785 (9,714) 1,208 (1,874) 659 (1,078) 3,781 (8,045) 2,556 (5,313) 602 (1.027)

78 (238) 218 (241) 831 (2,899) 532 (825) 375 (613) 1,649 (3,509) 769 (1,598) 577 (985)

49 (149) 336 (371) 1,248 (4,353) 57 (88) 178 (291) 280 (596) 118 (245) * *

161 (491) 262 (289) 2,082 (7,262) 467 (724) 173 (283) 2,027 (4,313) 2,498 (5,192) 576 (983)

78 (238) 715 (790) 3,904 (13,618) 1,257 (1,950) 3,526 (5,768) 5,354 (11,392) 1,840 (3,825) 1,364 (2,328)

Figures in parentheses indicaterecurring cost per student produced. *Salary of supportingstaff is includedin the salary of administrativestaff.

Average Recurring Cost Per Student 759 (2,315) 2,461 (2,719) 10,850 (37,846) 3,520 (5,460) 4,910 (8,032) 13,091 (27,856) 7,782 (16,176) 3,120 (5,325)

- 147 -

(ii) Technical Professions 4.18 Four different types of institutionshave been studied here -(a) Government (or public) intermediatecolleges, (b) polytechnic institutes, (c) nurses' trainingcentres, and (d) paramedicalinstitutes. A list of the different institutionssampled is given in Table 4.7. The total number of students enrolled in and passed from these institutions,and the teacher-studentratio are detailed in Table 4.8. In Table 4.9 average recurring costs per student enrolled and student produced are given. Estimated annual average recurring costs for various levels of expenditurecan be seen in Table 4.10. Table 4.7: LIST OF THE INSTITUTESSAMPLED Institute Kabi Nazrul College,Dacca IntermediateGovernmentCollege, Chittagong Polytechnic Institute,Dacca Polytechnic Institute,Rajshahi Polytechnic Institute,Jessore Polytechnic Institute,Rangpur Nurses' Training Centre, Dacca Nurses' Training Centre, Sylhet Nurses' Training Centre, Chittagong Paramedical Institute,Dacca Paramedical Institute,Ra;shahi Table 4.8: NUMBER OF STUDENTSENROLLED IN AND PRODUCED BY THE SAMPLE INSTITUTES(1978-79)

Institute IntermediateColleges PolytechnicInstitutes Nurses' Training Centres ParamedicalInstitutes

Number of Students Enrolled 1,500 3,371 852 331

Number of Teachers 38 257 30 20

TeacherStudent Ratio

Number of Students Produced

1:39 1:13 1:28 1:17

425 770 142 157

Table 4.9: AVERAGE RECURRING COST FOR TECHNICAL PROFESSIONS (1978-79) (Taka)

Institute IntermediateColleges Polytechnic Institutes Nurses' Training Centres Paramedical Institutes

Average Recurring Cost Per Student Enrolled

Average Recurring Cost Per Student Produced

754 2,262 1,911 3,221

1,331 4,365 2,867 3,396

Table 4.10:

AVERAGE RECURRING COST OF DIFFERENT ITEMS OF EXPENDITURE FOR TECHNICAL PROFESSIONS (1978-79) (Taka) Salary of Teaching Staff Per Student

Institute

IntermediateColleges PolytechnicInstitutes Nurses' Training Centres ParamedicalInstitutes

Note:

347 (612) 885 (1,708) 252 (378) 959 (1,011)

Salary of Administrative Staff Per Student

127 (224) 342 (660) 399 (599) 520 (556)

Salary of Supporting Staff Per Student

44 (78) 241 (465) 137 (206) 131 (138)

Allowances Miscellaneous and Expenditure Honoraria Per Student Per Student

156 (275) 182 (351) 243 (365) 789 (831)

Figures in parentheses indicate recurring cost per student produced.

80 (141) 612 (1,181) 880 (1,320) 816 (860)

Average Recurring Cost Per Student

754 (1,331) 2,262 (4,365) 1,911 (2,867) 3,221 (3,396)

- 149 (a) IntermediateColleges. A sample of two from a total of five Government intermediatecollegeswas taken. The colleges are -- Kabi Nazrul College in Dacca and IntermediateGovernment College in Chittagong. Annual average recurring cost per student enrolledwas estimated at Tk. 754 and per student produced Tk. 1,311. (b) Polytechnic Institutes. There were 17 polytechnic institutesin Bangladesh in 1978 out of which a sample of four was taken. Estimated annual average recurring cost per student enrolledwas found to be Tk. 2,262 and per student produced Tk. 4,365. (c) Nurses' Training Centres. The total number of nurses' trainingcentres studiedwas three out of a total of 17. The sample centres are attached to the medical college at Dacca, Sylhet, and Chittagong. Annual average recurring cost per student enrolledwas found to be Tk. 1,911 and per student produced Tk. 2,867. (d) ParamedicalInstitutes. There were two paramedicalinstitutes in Bangladesh at the time of the study and both were surveyed. The institutes are situated at Dacca and Rajshahi. Annual average recurring cost per student enrolled in these instituteswas found to be Tk. 3,221 and per student produced Tk. 3,396. (iii) Skilled Workers 4.19 As mentioned earlier, some students in this group are trained in different institutionsafter passing SSC examinations. For this reason separate calculations have been made for annual average recurring cost incurred by the Governmentfor higher secondary education and instead of a sample study, secondary informationwas used. It was mentioned before that many of the students go to specializedinstitutions for training in different skills before passing SSC examinations. In this case data was collected from different institutionsto find out annual average recurring expenditurespent on a student by these institutions. The results of the estimationof cost per student in the above institutionsare given. For some institutions,where the nature of;trainingmay not be obvious, a brief description of the programme of the institutionsis given. 4.20 In Table 4.11 the names of various institutionsstudied in the skilled workers group are mentioned. Table 4.12 gives the number of students enrolled in and producedby these institutions,and the teacher-studentratio. Table 4.13 gives the summary estimationof recurring cost per studentwhile estimated annual average recurring costs of various levels of expenditurecan be seen in Table 4.14. (a) SecondarySchools. As mentioned earlier, secondary sources of information provided an estimated annual average recurring cost per student for secondary education. Relevant data were obtainedfrom Bangladesh Bureau of EducationalInformationand Statistics,Ministry of Finance, and Directorateof Public Instructions. In 1978-79the total number of Governmenthigh schools was 152 with 106,834 studentsenrolled.

-

Table 4.11:

150

-

LIST OF THE INSTITUTES SAMPLED Institute

Government Secondary Schools Vocational Training Institute, Jessore Vocational Training Institute, Rangpur Vocational Training Institute, Brahmanbaria, Comilla Vocational Training Institute, Chandpur, Comilla Technical Training Centre, Dacca Bangladesh-German Teclnical Training Centre, Dacca Marine Diesel Training Centre, Narayanganj, Dacca Power Development Board Training Centre, Tongi, Dacca Table 4.12:

NUMBER OF STUDENTS ENROLLED IN AND PRODUCED BY THE SAMPLE INSTITUTES (1978-79) Number of Students Enrolled

Institute Secondary Schools Vocational Training Institutes Technical Training Centres Marine Diesel Training Centres Power Development Board Training Centre Table 4.13:

106,834 722 1,055 340 121

Number of Teachers 3,710 42 66 49 .20

TeacherStudent Ratio

Number of Students Produced

1:29 1:17 1:16 1:7

9,698 185 447 208

1:6

121

AVERAGE RECURRING COST FOR SKILLED WORKERS (1978-79) (Taka)

Institute Secondary Schools Vocational Training Institutes Technical Training Centres Marine Diesel Training Centres Power Development Board Training Centres

Average Recurring Cost Per Student Enrolled

Average Recurring Cost Per Student Produced

429 1,532 1,690 7,482 7,572

591 2,989 1,994 9,564 7,572

Table 4.14:

AVERAGE RECURRING COST OF DIFFERENT ITEMS OF EXPENDITURE FOR SKILLED WORKERS (1978-79) (Taka) Salary of Salary of Teaching Administrative Staff Per Staff Per Student Student

Institute Secondary Schools Vocational Training Institutes Technical Training Centres Marine Diesel Training Centres Power Development Board Training Centres Note:

240 (330) 416 (812) 390 (460) 1,719 (2,198) 2,216 (2,216)

42 (58) 250 (488) 380 (448) 307 (392) 529 (529)

Salary of Supporting Staff Per Student * *

77 (150) 456 (538) 731 (934) 124 (124)

Allowances and Miscellaneous Honoraria Expenditure Per Student Per Student 83 (114) 142 (277) 228 (269) 3,942 (5,039) 826 (826)

65 (90) 646 (1,261) 235 (277) 784 (1,002) 3,876 (3,876)

Figures in parentheses indicate recurring cost per student produced. *Salary of supporting staff is included in the salary of administrative staff.

Average Recurring Cost Per Student 429 (591) 1,532 (2,989) 1,690 (1,994) 7,482 (9,564) 7,572 (7,572)

- 152 -

The total number of studentsproduced from these schools in 1978-79 was estimated at 9,698. There were 3,710 teachersand the total recurring expenditurewas Tk. 45,865,000. Annual average recurring expenditureper student enrolledwas found to be Tk. 429 and per student produced Tk. 591. (b) VocationalTraining Institutes. Out of 39 vocational training institutes a sample of four located at Jessore, Brahmanbaria(Comilla), Chandpur (Comilla)and Rangpur was drawn. Annual average recurring cost per student enrolled in these instituteswas estimated at Tk. 1,532 and per student produced Tk. 2,989. (c) Technical Training Centres. There were four technical training centres in Bangladesh at the time of the study and a sample of two was taken. The centres are -- Technical Training Centre and Bangladesh-German Technical TrainingCentre, both located at Mirpur (Dacca). The training is in the fields of draftsmanship,auto diesel, electricity, refrigerationand air conditioning. Annual average recurring expenditures per student enrolled and produced were estimated at Tk. 1,690 and Tk. 1,994 respectively. (d) Marine Diesel Training Centre. Relevant informationwas obtained from the only marine diesel training centre at Narayanganj. The centre has a few trade courses of two years duration: ship-buildingwelding, shipbuilding draftsmanship,etc. Diploma in marine engineeringis also awarded there. Estimated annual average recurring expendituresper enrolment in and output of the centre were estimatedat Tk. 7,482 and Tk. 9,564 respectively. (e) Power Development Board Training Centres. At the time of the study there were eight training centres under the Directorate of Training,Power Development Board and the training institute at Tongi was surveyed. Two kinds of trainingwere conductedhere during 1978-79-- one in-service and the other apprenticeship, There were 14 different courses of inservice training each approximatelysix weeks long. The total number of yearly enrolmentwas 388. In other words there were approximately49 in-servicetrainees throughoutthe year. 72 trainees received apprenticeship training during 1978-79 and the total enrolment during the period was 121. All of them successfullycompleted the training. The name of the courses are: repair of distributiontransformer, metering and testing, etc. Annual average recurring expendituresper student enrolled and student producedwere Tk. 7,572.

(iv) Semi-skilledWorkers 4.21 Workers like book binders, bakers, dyers, ironmen,etc. constitutethe group of semi-skilledworkers. No formal technical training is undergoneby these workers. They could be independentworkers or in some cases assistantsto skilled workers. The level of educationof these workers may be assumed to be primary. Thus, estimate of annual average recurring cost for primary educationhas been

- 153 -

equated to that of semi-skilledworkers. This is a rather arbitrary assumption. The estimationprocedure for obtainingGovernment annual expenditureper student on primary education is explainedbelow. Primary Schools. Here also, as in the case of secondary schools, secondary 4.22 sources of data obtained from BangladeshBureau of Educational Informationand Statistics., Directorateof Public Instructions,and Ministry of Finance were used. There were 36,484 Governmentprimary schools in Bangladeshduring 1978. The total number of teacherswas 158,541 and there were 7,080,446 students enrolled. The estimatednumber of students produced in 1978 was 1,197,891. Total recurring exrevised budget, 1978-79)was Tk. 833,865,000of which penditure (non-development, teachers' salarieswas Tk. 571,223,000,allowancesand honoraria were Tk. 194,642,000 and contingencywas Tk. 68,000,000. Annual average recurring expenditureper student enrolled is thus estimated at Tk. 118 and per student produced Tk. 139. A summary of these results is given in Tables 4.15, 4.16 and 4.17. Table 4.15: NUMBER OF STUDENTSENROLLED IN AND PRODUCED BY GOVERNMENTPRIMARY SCHOOLS (1978-79)

Number of Schools

Number of Students Enrolled

Number of Teachers

TeacherStudent Ratio

36,484

7,080,446

158,541

1:45

Number of Students Produced 1,197,891

Table 4.16: AVERAGE RECURRING COST FOR GOVERNMENTPRIMARY SCHOOLS (1978-79) Average Recurring Cost Per Student Enrolled

Average Recurring Cost Per Student Produced

Tk. 118 Table

4.17:

Tk. 139

AVERAGERECURRING COST OF DIFFERENT ITEMS OF EXPENDITURE IN

GOVERNMENT PRIMARY SCHOOLS (1978-79) (Taka) Salary of Teachers Per Student 81 (96) Note:

Allowancesand Honoraria Per Student

ContingencyPer Student

Average Recurring Cost Per Student

27 (32)

10 (12)

118 (139)

Figures in parentheses indicaterecurring cost per student produced.

- 154 -

C. Annual Average Recurring Cost of the EmploymentExchange Programme 4.23 One of the objectivesof the study is to determine the cost of the employment exchange programme. For this purpose, three differentmedia were identified-(a) Bureau of Manpower, Employmentand Training, (b) RecruitingAgents, and (c) individual efforts. Chapter I already elaboratedon the method of operationsof these media, their advantagesand disadvantages,and also annual breakdown from January 1976 to July 1979 of the total number of migrants these various media handled. As a result, descriptionsof the working proceduresof these media will be omitted. 4.24 To arrive at a unit cost for the employmentexchangeprogramme it was imperativeto study the three differentmedia. It should be mentioned that individual migrants could not be contacted. This did not, however, create any problem since every individual,after obtaining a job abroad, must have processedhis case through BMET and, therefore,cost of employmentabroad in this case is included in that of BMET. For the other two media, BMET and recruitingagents, frames were developed for different offices of BMET (headquartersand ten employmentexchange offices in the countryhaving foreign employmentsections) and Governmentauthorized recruitingagents (around200) as of 1978. 4.25 A sample size of 25 of the recruitingagents was taken. Of them, seven could not be located at their addresses and ten did not send any migrants. Information from eight agents could be obtained. Observationswere that they had other jobs to perform and would not give data properly. Six of the agents mentioned that they realized exorbitantfees from migrants. Recurring cost per migrant ranged between Tk. 1,104 and Tk. 11,630 (this excludes fees realized). This cost is many times higher than that incurred by BMET. It has been temptingnot to rely on their data. Here again, the problem is handled in the same way as for individualmigrants. After selectingpeople for employmentabroad, the agents process their cases through BMET and as a result cost of the recruitingagents is included in the cost of the employmentexchangeprogramme of BMET. The procedure for estimatingcost was to assess the same from BMET. 4.26 Informationwas obtained on differentkinds of recurring costs for the year 1978-79 of the foreign employmentsections of BMET and ten employment exchanges in Bangladesh. The items of informationwere on salary of administrativeand other staff, allowancesand honoraria, and miscellaneousexpenses including cost of entertainingvisiting employers. As can be seen in Table 4.18 the total number of migrants handled by BMET (includingrecruiting agents and individualefforts) in the year 1978 is 22,809 and dividing the total recurring expenditure,which was found to be Tk. 744,306 for the year 1978-79,by this number the annual average recurring cost per migrant of the employmentexchange programme is estimated at Tk. 32. Details of the results are given in tabular form in Table 4.19.

- 155 -

Table

4.18:

NUMBEROF MIGRANTS WHOPROCEEDED ON FOREIGN EMPLOYMENTTHROUGH DIFFERENT MEDIA FROM JANUARY 1976 TO JULY 1979

Media

1976

1977

Bureau of Manpower, Employment and Training

5,279 (87) 442 (7) 366 (6)

5,729 6,162 (36) (27) 1,171 1,552 (7) (7) 8,825 15,095 (56) (66)

RecruitingAgents IndividualEfforts Total

1978

1979

Total

2,796 19,966 (21) (34) 1,561 4,726 (11) (8) 9,095 33,381 (68) (57)

6,087 15,725 22,809 13,452 58,073 (100)

Note:

(100)

(100)

(100)

(100)

Figures in parentheses indicatepercentage.

Table 4.19:

AVERAGE RECURRING COST OF DIFFERENT ITEMS OF EXPENDITURE OF

THE EMPLOYMENTEXCHANGE PROGRAMME (1978-79) (Taka) Salary of Number Administrative Allowances of & Supporting & Miscellaneous Migrants Staff Honoraria Expenditure Total

Media Bureau of Manpower, Employmentand Training

22,809 -

Note:

469,020 (20)

173,487

101,799

(8)

(4)

(32)

Figures in parenthesesindicate average recurring cost of the employment exchange programme per migrant D. Annual Average Capital Cost of Migrants and of the EmploymentExchange Programme

4.27 There may be several ways of estimatingcapital cost. In this study the method followedwas to find out from various institutionsof the present total market value of the fixed assets. Then, as in the case of total recurring costs, the total capital cost so obtained was divided by the number of currently enrolled students to arrive at the average capital cost per student enrolled, and by the number of total output to arrive at the average capital cost per student produced. While the average capital cost per student enrolledmay be thought of as a measure of the capital investmentrequired to create an additionalcapacity, the same for a student producedmay, perhaps, not have any such meaning.

- 156

-

4.28 A separatequestionnairewas developed to estimate capital cost of training migrants and of the employmentexchange programme. Informationsuch as quantity of land under different use and its present market price, total floor space of buildings and their current market value, and present cost estimate of other capital items like laboratoryequipment,furniture and fittings,books and periodicals, etc. were sought. While the response from smaller institutionswas more or less satisfactory,there were other problems from large establishments. Many of the institutionsdid not have up to date records of their fixed assets such as per acre price of land, per square feet cost of constructionof buildings, etc. Some institutionshad knowledge about the approximateamount of land and valuable equipment they had, but little about the total floor space of buildings. For some large establishmentswhere the informationwas not adequate figures for present capital cost were estimatedby the interviewers. Although it can be said that costs of building materials are more or less uniform over the whole of Bangladesh,cost of land varies from place to place. The price per acre of land in Dacca was assumed to be Tk. 5,000,000 and for Chittagongand Rajshahi Tk. 300,000. The results of cost estimationare presented in tabular form in Table 4.20. Table 4.20: AVERAGE CAPITAL COST OF MIGRANTS AND OF THE EMPLOYMENTEXCHANGE PROGRAMME (1978-79) (Taka)

Institute Degree Colleges Teachers' Training Colleges AgricultureCollege Medical Colleges EngineeringColleges AgriculturalUniversity EngineeringUniversity Universities (General) IntermediateColleges Polytechnic Institutes Nurses' Training Centres Paramedical Institutes Secondary Schools Vocational Training Institutes TechnicalTraining Centres Marine Diesel Training Centre Power Development Board Training Centres Primary Schools Bureau of Manpower, Employmentand Training

Average Capital Cost Per Student Enrolled 15,366 72,067 1,954,072 156,286 176,942 1,230,694 478,171 271,416 35,117 104,983 24,342 382,P31 24,466 13,716 214,106 294,118 826,446 1,394 50

Average Capital Cost Per Student Produced 46,870 79,620 6,815,988 242,434 289,437 2,618,722 993,951 463,237 61,972 202,574 36,801 403,347 33,691 26,764 252,665 375,940 826,446 1,648 .50

- 157 -

E.

Summary and Conclusion

4.29 In order to estimate total recurring cost, informationwas sought from various institutionson the number of students enrolled and produced, number of teachers available and their salary, amount spent on administrativeand supporting staff, etc. To determine the current cost of the employmentexchange programme informationwas obtained on the cost of administrativestaff, supportingstaff, allowancesand honoraria, etc. As described in the previous section, capital cost was estimated according to information obtainedfrom different institutionsabout currentmarket value of various fixed assets like land, buildings,laboratoryequipment, furniture and fittings,books and periodicals,etc. 4.30 Summary results of cost estimationis given in Table 4.21. There may be diverse reasons for one institutionto have a higher recurring cost than another. Generally it was found that technical institutionsincurredmore costs than nontechnical institutions. The agriculturaluniversitywas found to have the highest recurring expenditureper student enrolledwhereas the agriculturalcollege had the highest recurring cost per student produced. The reason for higher recurring expenditure per student enrolled in the agriculturaluniversitywas due to high administrativeand miscellaneousexpenditureand the difference in expenditureper student produced might be due to the fact that the turnout of graduates at the universitywas higher than that of the college. Price of land in Dacca and outside made a lot of differencein the capital cost. Since the agriculturalcollege in Dacca has a lot of farmland capital cost here is much more than that of the agriculturaluniversity.

Table

4.21:

AVERAGE RECURRING AND CAPITAL COSTS OF TRAINING MIGRANTS AND THE EMPLOYMENTEXCHANGEPROGRAM (1978-79) (Taka)

Institute Degree Colleges Teachers' Training Colleges Agriculture College Medical Colleges Engineering Colleges Agricultural University Engineering University Universities (General) Intermediate Colleges Polytechnic Institutes Nurses' Training Centres Paramedical Institutes Secondary Schools Vocational Training Institutes Technical Training Centres Marine Diesel Training Centres Power Development Board Training Centres Primary Schools Bureau of Manpower, Employment and Training

Average Recurring Cost Per Student Enrolled

Average Recurring Cost Per Student Produced

Average Capital Cost Per Student Enrolled

Average Capital Cost Per Student Produced

759 2,461 10,850 3,520 4,910 13,091 7,782 3,120 754 2,262 1.911 3,221 429 1,532 1,690 7,482

2,315 2,719 37,846 5,460 8,032 27,856 16,176 5,325 1,331 4,365 2,867 3,396 591 2,989 1,994 9,564

15,366 72,067 1,954,072 156,286 176,942 1,230,694 478,171 271,416 35,117 104,983 24,342 382,631 24,466 13,716 214,106 294,118

46,870 79,620 6,815,988 242,434 289,437 2,618,722 993,951 463,237 61,972 202,574 36,801 403,347 33,691 26,764 252,665 375,940

7,572 118

7,572 139

826,446 1,394

826,446 1,648

32

32

50

50

- 159 -

CHAPTER V

EFFECTS OF LABOUR MIGRATION ON MANNING OF PRODUCTION AND SERVICE ESTABLISHMENTS IN BANGLADESH

A.

Introduction

5.1 A labour surplus country like Bangladeshperhaps does not stand to lose anything substantialon account of the migration of unskilledworkers and semiskilled workers since the time and cost of their training is small and they are easily replaced. The large majority of the employers interviewedon this point generally agree with this position. This study will therefore confine itself to analysing the effect of export of educated and skilledmanpower on productionin Bangladesh,and for this they are classifiedinto 14 groups as follows: (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (1)

Post Graduate medical specialists Graduatedoctors Medical technicians Engineeringgraduates Engineering technicians Engineering craftsmen Fibre technologists Agriculturalprofessionals Master's Degree holders in natural sciences Master's Degree holders in economic sciences Master's Degree holders in social sciences Master's Degree holders in humanities

(m)

Training school teachers

(n) Generalists The types of manpower covered by each category is shown in the Appendix) Table 54. 5.2 To assess the impact of labour migration, the economy will be divided into the following sectors: (a) (b) (c) (d) (e) (f) (g)

Primary sector Economic overheads Socio-economicinfrastructure Manufacturing Finance Administration Miscellaneous

The details of the sectors are given in the Appendix,Table 55.

- 160 -

The Method of Enquiry 5.3 Based on the optimism of a 99% response experiencedby the Planning Commissionin all previous employmentsurveys undertaken,questionnaireswere mailed out to all employing units hiring educatedmanpower. These were followed by a visit to some of them by investigators. But unfortunatelythe response from the employerswas only 69%. The rate of response was as follows: Table 5.1: EXTENT OF RESPONSE Total Number of Establishments Contacted

Sector Primary Sector Economic Overheads Socio-economicInfrastructure Manufacturing Finance Administration Miscellaneous Total

Number of Respondents

Percentage of Response

349 827 735 742 72 380 284

244 645 573 451 58 198 156

70 78 78 61 81 52 55

3,389

2,325

69

5.4 Assuming that the rate of respondingestablishmentsconstituteda random sample from the population of total establishments,the number of vacant posts and the number of persons migrating have been estimated based on the information of this random sample. This assumptionwas confirmed and substantiatedby the findings of a post-enumerationsample which indicatedthat the estimatednumber of vacant positions and migrants differ nominally from those furnishedby the sample survey. In addition, examinationresults and present annual enrolment capacity of various branches of the national education and training network were collected to estimate the present and future supply of the types of manpower going abroad.

B. An Assessment of the Impact of Migration 5.5 The total job market for the educated as it stood on 30 June 1978 is shown below.

- 161 Table 5.2: DOMESTIC MANPOWER DEMAND VIS A VIS VOLUME OF VACANCY AND EXTENT OF MIGRATION

Type

Total Number of Total Job Number Aspirants of Jobs

Post GraduateMedical Specialists Graduate Doctors Medical Technicians EngineeringGraduates EngineeringTechnicians EngineeringCraftsmen Fibre Technologists AgriculturalProfessionals M.A.s in Natural Sciences M.A.s in Economic Sciences M.A.s in Social Sciences M.A.s in Humanities Trained School Teachers Generalists

411 506 -95 7,017 7,917 -900 10,105 14,363 -4,258 7,856 7,984 -128 16,211 17,496 -1,285 24,877 179,792 +154,915 1,041 4,862 -3,821 7,705 8,717 -1,012 10,232 8,857 +1,375 11,855 7,079 +4,776 14,086 5,128 +8,958 10,427 5,562 +4,865 102,793 267,152 -164,359 1,181,545 365,559 +815,986

Source:

Overall Estimated Estimated Surplus Volume Overseas or of EmployDeficit Vacancy ment

166 769 2,153 1,119 2,819 13,323 538 611 817 578 568 349 27,624 33,851

100 1,025 1,301 1,184 1,978 6,436 208 168 243 24 -

Informationon the total number of job aspirantsand total number of jobs is from the Planning Commission. Data on estimated volume of vacancy and estimated overseas employmentwas collectedfor this study.

The Approach to Estimationof the Impact of Labour Migration 5.6 Impact of labour migration on productionwill be shown in terms of the shortageof a particularoccupationor professionin relation to the demand for this occupation. Needless to say that it is difficult to directly relate migration of skilledmanpower to loss of production,since linear and direct relationship hardly exists between the absence of one or a group of members of staff and the total volume of productionof a productionunit. Twenty percent of the positions vacant do not necessarilymean 20% loss of production. 5.7 Now, an employed person going abroad may not leave a durable impact on the organisationhe has been serving. The effect may be shifted elsewhere. For instance, if a Professor of surgery from Dacca Medical College goes abroad, the post may be filled by transferringsomeone from MymensinghMedical College and the post in Mymensingh filled by promoting an Associate Professor from Sylhet Medical College and transferringhim to Mymensingh. It is quite possible that the post of Associate Professor at Sylhet Medical College remains vacant for quite some time. Similarly,the post of a migrating Senior Chemical Engineer from the Atomic Energy Commissionmay have been filled by someone who was working in the Chemical Corporationas a Junior Engineer, in this case, the person coming not on transfer but on resignationfrom his previous employer. Even if in the former case, it is remotelypossible on the part of the Directorateof Health to relate the vacancy at Sylhet Medical College to the migration from Dacca Medical College, it is

- 162 -

impossibleon the part of the Chemical Corporationto know that it has been affectedby somethinghappening in the Atomic Energy Commission. Therefore,a total assessment of vacant positions throughoutthe employmentmarket is necessary to assess the effect of labour migration. Now, the following situationsare relevanthere. Situation I 5.8 If overall surplus (d) of any particular occupationis higher than overseas employment (f), then manpower export is not a retarding factor for production, even if vacant positions exist. The vacancy in that case is due to administrativeformalitiesfor filling positions once vacancies occur. Under such circumstances,the vacancies would remain when new productionand service installations grow up within the country which must inevitablydraw the mid-order professionalsof the existing firms to fill senior positions in the new establishments. This is shown in Table 5.3. Table 5.3: CASES WHERE MANPOWER EXPORT HAS NO ADVERSE EFFECT Overall Surplus d

Overseas Employment f

d - f

M.A.s in Natural Sciences

1,375

243

1,132

M.A.s in Economic Sciences

4,776

24

4,752

Type

Situation II 5.9 On the strength of Table 5.4 there could be a tendencyto argue that if f - d is higher than the volume of vacancy (e), it could mean that manpower export is responsiblenot only for the volume of vacancy, but also for underqualified appointments to the extent of f - d - e.

Table 5.4: CASES WHERE MANPOWER EXPORT CAN BE IELDRESPONSIBLE FOR LOSS IN PRODUCTION

Type Post GraduateMedical Specialists Graduate Doctors Medical Technicians EngineeringGraduates EngineeringTechnicians Engineering Craftsmen Fibre Technologists AgriculturalProfessionals

Overseas Overall Employment Surplus f d 100 1,025 1,301 1,184 1,978 6,436 208 168

f - d

-95 195 -900 1,925 -4,258 5,559 -128 1,312 -1,285 3,263 -154,915 161,351 - 3,821 4,029 -1,012. 1,180

Volume of Vacancy e

f-- d - e

166 951 2,153 1,119 2,819 13,323 538 611

29 974 3,406 193 444 148,028 3,491 569

- 163 -

The logic is not tenable. This is because, for manpower shortage, overseas employment cannot be responsible beyond its own size. The argument would have been applicable, if d in Table 5.4 happened to be positive. In reality, however, they are all negative as shown in the Table. In fact, even without labour migration some categories of manpower will be in deficit supply to the extent as shown in the following Table. Table 5.5:

OVERALL DEFICIT AS PERCENTAGE OF THE TOTAL DEMAND

Overall Demand

Type Post

Graduate

Overall Deficit as % of Overall Demand

Overall Deficit

Overall Deficit as % of Overall Demand

Overall Demand

Overall Deficit

506 7,917 14,363 7,984 17,496 179,792 4,862 8,717

95 887 4,258 128 1,285 154,915 3,821 1,012

Medical

Specialists 304 Graduate Doctors 7,185 Medical Technicians 10,617 EngineeringGraduates 4,887 EngineeringTechnicians 11,416 EngineeringCraftsmen 114,160 Fibre Technologists 4,134 AgriculturalProfessionals 4,897

41 2,545 4,962 431 234 102,984 3,263 1,328

13.49 35.42 46.74 8.82 2.05 90.21 78.93 27.12

18.77 11.20 29.64 1.60 7.34 86.16 78.59 11.61

Situation III 5.10 Overseas employment is definitely harmful to production staffing to the extent the former is proportionate to the total deficit in a certain category of manpower. This is shown in the equation f/(f - d) x 100 in Table 5.6. Table 5.6:

OVERSEAS EMPLOYMENT PROPORTIONATE TO TOTAL MANPOWER SHORTAGE Overseas Employment

Type

f

Overall Surplus

d

f-d

f -d

fdXO

Post Graduate Medical

Specialists GraduateDoctors Medical Technicians EngineeringGraduates EngineeringTechnicians EngineeringCraftsmen Fibre Technologists AgriculturalProfessionals

100 1,025 1,301 1,184 1,978 6,436 208 168

-95 -900 -4,253 -128 -1,285 -154,915 -1,012

195 1,925 5,559 1,312 3,263 161,351 4,029 1,180

51.28 53.24 23.40 90.24 60.61 3.98 5.16 14.23

- 164 -

Situation IV 5.11 Partly because of manpower export, the country is not taking full advantage of the positions filled due to the resultant imperfect substitutions. The extent to which this is injuring production staffing is shown in column 6 of Table 5.7. Table 5.7:

EXTENT OF Il4PERFECTSUBSTITUTION OF JOBS

Number of Jobs c 2

Type 1

Volume of Vacancy e 3

Number of Positions Filled c - e 4

Imperfect Substitutions f - d - e 5

166 769 2,153 1,119 2,819 13,323 538 611

340 7,148 12,210 6,865 14,677 166,469 4,324 8,106

29 1,156 3,406 193 444 148,028 3,491 569

Post Graduate Medical Specialists 506 Graduate Doctors 7,917 Medical Technicians 14,363 Engineering Graduates 7,984 Engineering Technicians 17,496 Engineering Craftsmen 179,792 Fibre Technologists 4,862 Agricultural Professionals 8,717

5 as % of 4 6

8.52 16.17 27.89 2.81 3.03 88.92 80.74 7.02

Situation V 5.12 For types of manpower in which the country is deficit, overseas employment can be regarded as detrimental to production to the extent that overseas employment (f) is proportionate to the total demand for each category of manpower. This is shown in Table 5.8. Table 5.8:

Type

EXTENT OF MIGRATION AS PERCENTAGE OF THE TOTAL DEMAND

Total Demand for this Type of Manpower

Post Graduate Medical Specialists 506 Graduate Doctors 7,917 Medical Technicians 14,363 Engineering Graduates 7,984 Engineering Technicians 17,496 Engineering Craftsmen 179,792 Fibre Technologists 4,862 Agricultural Professionals 8,717

Size of Migration

Extent of Migration as % of the Total Demand for this Type of Manpower

100 1,025 1,301 1,184 1,978 6,436 208 168

19.76 12.95 9.06 14.83 11.30 3.58 4.28 1.93

- 165 -

SituationVI 5.13 Overseas employmentcan be detrimental to productionto the extent the resultantimperfect substitutionis proportionateto the total number of positions availablein the economy (i.e. the total demand) for each category of manpower. This is representedin Table 5.9. Table 5.9: INAPPROPRIATEPLACEMENT PROPORTIONATETO TOTAL DEMAND

Type 1

Total Demand for this Type of Manpower 2

Post GraduateMedical Specialists 506 GraduateDoctors 7,917 Medical Technicians 14,363 EngineeringGraduates 7,984 EngineeringTechnicians 17,496 EngineeringCraftsmen 179,792 Fibre Technologists 4,862 AgriculturalProfessionals 8,717

Imperfect Substitution f - d - e 3 29 1,156 3,406 193 444 148,028 3,491 569

3 as % of 2 4 5.73 14.60 23.71 2.42 2.53 82.33 71.80 6.53

In the ultimate analysis, the loss to productionon account of labour migration is somewhere between the value added implicationsof size of migration in Table 5.8 and column 3 of Table 5.9 with size of migration in Table 5.8 (size of migration and the inappropriatejob placement within the economy). C. The AnticipatedPosition in 1983 5.14 The 1978 position having been assessed,it may be pertinent to see what might be the position in the near future, say in 1983, due to the migration of the educated labour force from Bangladeshwhich is already in the pipeline. As can be seen from Table 5.10 the demand for educated and skilled manpower over a five year period has been generally 50% higher than that during the previous five year period.

- 166 -

Table 5.10:

NEW JOB OPENINGS CREATED Increment During 1973-78 Over 1968-73

1963-68

1968-73

Increment During 1968-73 Over 1963-68

Post Graduate Medical Specialists Graduate Doctors Medical Technicians Engineering Graduates Engineering Technicians Engineering Craftsmen Fibre Technologists Agricultural Professionals M.A.s in Natural Sciences M.A.s in Economic Sciences M.A.s in Social Sciences M.A.s in Humanities Trained School Teachers Generalists

89 728 1,810 1,388 2,763 31,068 326 1,778 1,264 1,199 931 770 10,749 27,401

131 1,050 2,548 2,079 3,974 44,953 469 2,581 1,816 1,735 1,340 1,118 15,444 39,579

47.19 44.23 40.77 49.78 43.82 44.69 43.86 45.16 43.67 44.70 43.93 45.19 43.67 44.44

202 1,523 3,746 3,097 6,080 65,632 728 3,820 2,761 2,620 1,983 1,643 23,938 60,951

54.19 45.04 47.01 48.96 52.99 46.00 55.22 48.00 52.03 51.00 47.98 46.95 54.99 53.99

Total

82,264

118,817

44.30

178,724

50.41

Type

1973-78

5.15 Roughly speaking, there can be two estimates of demand in 1983, one assuming a 50% increase over the 1973-78 demand and another on the assumption of a 100% increase. The supply can be estimated with a reasonable degree of accuracy on the basis of the present enrolment strength. This is shown in the following Table. Table 5.11:

POSSIBLE NEW JOB OPENINGS AND EXTRA JOB SEEKERS OVER 1978-83

Type Post Graduate Medical Specialists Graduate Doctors Medical Technicians Engineering Graduates Engineering Technicians Engineering Craftsmen Fibre Technologists Agricultural Professionals M.A.s in Natural Sciences M.A.s in Economic Sciences M.A.s in Social Sciences M.A.s in Humanities

Extra Manpower Demand 1978-83 Alternative I Alternative 2 303 2,284 5,619 4,645 9,120 98,448 1,092 5,730 4,141 5,930 2,979 2,464

404 3,046 7,492 6,194 12,160 131,264 1,456 7,640 5,522 5,240 3,966 3,286

Additional Job Seekers Over 1978-83 400 12,000 10,000 6,500 14,000 35,000 1,400 8,000 12,000 16,000 16,000 10,000

- 167 -

Table 5.11:

CONTINUATION

Extra Manpower Demand 1978-83 Alternative I Alternative 2

Type Trained School Teachers Generalists Total

D.

Additional Job Seekers Over 1978-83

35,907 91,426

47,876 121,902

72,000 250,000

270,088

357,448

463,300

Summary Results and Conclusions

5.16 In the near future, the country stands to lose by exporting the,categories of manpower listed in Table 5.12 since they are in deficit supply compared to their estimated demand. Table 5.12:

DEFICIT CATEGORIES OF MANPOWER Supply Compared to Demand (Percentage) Alternative 1 Alternative 2

Type Post Graduate Medical Specialists Ph.D.s in Engineering Ph.D.s in Agriculture Ph.D.s in Natural Sciences Ph.D.s in Economic Sciences Ph.D.s in Social Sciences Ph.D.s in Humanities

100.25 36.58 16.25 9.71 3.66 6.63 2.81

89.12 32.59 14.36 8.78 3.27 5.91 2.55

5.17 In the near future, the country does not stand to lose by exporting the categories of manpower listed in Table 5.13 since they are in excess supply over the estimated demand. Table 5.13:

Type Graduate Doctors M.A.s in Natural Sciences M.A.s in Economic Sciences M.A.s in Social Sciences

SURPLUS CATEGORIES OF MANPOWER Length of Experience

Less More Less More Less More Less More

than than than than than than than than

10 10 10 10 10 10 10 10

years years years years years years years years

Supply Compared to Demand Alternative 1 Alternative 2 184.47 5,813.75 201.19 982.46 327.99 1,100.73 463.68 1,827.90

169.57 5,408.14 181.84 889.42 293.11 984.39 413.38 245.09

- 168 -

Table 5.13: CONTINUATION Length of Experience

Type M.A.s in Humanities Generalists

Less More Less More

than than than than

10 years 10 years 10 years 10 years

Supply Compared to Demand Alternative I Alternative 2 290.10 1,534.33 128.89 1,050.72

251.41 1,395.48 120.83 985.02

5.18 Excess supply over the estimated demand for graduatedoctors may seem a little unusual in view of the high doetor:populationratio now prevalent in the country. It should, however,be appreciatedthat in a country where 80% of the populationis below the poverty line, not in a position to hire the services of graduate doctors and implementtheir prescriptions,clientele of medical graduates' exclusive private practices will not be big enough to absorb the number of doctors available after filling the salariedpositions as shown in Table 5.14. Table 5.14: JOB MARKET FOR MEDICAL GRADUATES

Alternative

Supply

Estimated Salaried Positions Including Those in Rural Areas

1 2

20,530 20,530

8,686 9,450

Balance 11,844 11,080

It should also be borne in mind that doctors in salariedpositions in Governmentowned health units enjoy a natural advantage in respect to private practice which, in fact, is dominated by them. 5.19 In determiningthe excess supply of other occupationsfor overseas employment, it is important to emphasize that presently there is considerableimperfect substitutionand inappropriateplacement in the job market. For instance,many of the posts meant for engineeringgraduates are not only filled by experiencedand senior diploma holding engineeringtechnicians,but also by Master's Degree holders in physics, applied physics, chemistry,applied chemistry and in some cases B.Sc.s and I.Sc.s who may or may not have acquired the desired efficiencythrough long in-serviceexperience and training. Likewise,many of the posts meant for engineering techniciansare held by B.Sc.s, I.Sc.s and matriculates. Post of medical technicians are filled more with I.Sc.s and matriculates than with the professionalcertificate holders. In posts meant for high level agriculturalprofessionals,there are many Master's Degree holders in chemistry,soil science,botany, zoology,B.Sc.s and in some cases I.Sc.s and graduates. Many of the posts for diploma holders in agriculture are occupiedby I.Sc.s and matriculates. The same is true of fibre technologists. 5.20 Some examplesmay be cited to illustratethe point. In 1975 two batches of engineeringgraduatesand engineeringtechniciansremained unemployedfor a considerableperiod of time and the situation improved only when opportunitiesin the Middle East were opened to them. This was at a time when the estimatedrequirement of graduate and diploma engineerswithin the country was higher than

Table

5.15:

OCCUPATIONS WHERE LIMITED OVERSEAS EMPLOYMENTCAN BE PERMITTED Additional

Additional Supply

Types

Medical Technicians 10,000 EngineeringGraduates 6,500 EngineeringTechnicians 14,000 AgriculturalProfessionals 8,000

Total

Additional

Requirement

as %

Demand Present Requirement of Availability AlterAlter- VacanAlterAlterAlterAlternative I native 2 cies native I native 2 native I native 2 5,619 4,645 9,120 5,730

7,492 6,194 12,160 7,460

2,153 1,119 2,819 611

7,772 5,764 11,939 6,341

9,645 7,313 14,979 8,251

77.72 88.68 85.28 79.26

96.45 112.51 106.99 103.14

Table 5.16: REQUIREMENTOF SELECTEDOCCUPATIONSWITH MORE THAN TEN YEARS EXPERIENCE IN 1983 Requirement AlterAlternative I native 2

Type

Availability

Medical Technicians

14,310

-

-

EngineeringGraduates

10,166

504

564

Engineering Technicians

19,238

AgriculturalProfessionals 11,270

-

-

294

333

Balance AlterAlternative 1 native 2

Requirement as % of Availability AlterAlternative I native 2 -

-

4.95

5.55

14,310

14,310

9,662

9,602

19,238

19,238

-

-

10,937

2.61

2.95

. 10,976

- 170 their availability. To give a recent example,presently the Ministry of Health finds it difficult to absorb a few batches of dental technicians (a scarce skill even by internationalstandards)producedrecently because-of the fact that posts are occupied by under-qualifiedpersons and new posts of dental techniciansin the hospitals and clinics are not big enough to fully absorb the continuousstream of dental technicians. Hence, in evaluatingthe job market for them within the country, the additionalsupply over 1978-83has to be comparedwith the additional demand over the same period. 5.21 Judged on the basis of this, the country stands to lose by an excessive export of the categoriesof manpower listed in Table 5.15. However, moderate overseas employmentof such professionalscan be allowed. A sizable imperfect substitutionor inappropriateplacementwill inevitablycreep in despite efforts to prevent it. 5.22 For the categoriesof manpower listed in Table 5.15 the availabilityof persons with more than 10 years experienceis higher than the requirement. This is shown in Table 5.16. 5.23 In respect to engineeringcraftsmen and fibre technologists,the share of institutionallytrained persons in the total demand in June 1978 was as follows: Table 5.17: SHARE OF INSTITUTIONALLYTRAINED PERSONS

Type 1

0

Engineering Craftsmen Fibre Technologists

Number of InstituNumber of tionally Total Vacant Positions Trained 5 as % of Demand Positions Filled Persons 4 X 2 707723 4 5 6 179,792 4,862

13,323 538

166,469 4,324

24,877 1,041

14.94 24.07

5.24 Given the recruitmentpractices,the share of institutionallytrained persons for the two types of manpower in questionwill not increase over the course of the next five years. Hence, from 1978-83 the job market for these two types of occupationswill be as shown in Table 5.18. For the present, the country can allow some migration of engineeringcraftsmen and fibre technologists.

Table 5.18:

Type Engineering Craftsmen Fibre Technologists

Additional Supply

35,000

i,400

Present Vacancies

JOB MARKET FOR ENGINEERING CRAFTSMEN AND FIBRE TECHNOLOGISTS 1978-83

Additional Demand AlterAlternative 1 native 2

Total Additional Requirement AlterAlternative I native

2

Additional Demand for Institutionally Trained Persons Relative Share In the Additional Total Demantd Absolute Nudber AlterAlterAlterAlternative I native 2 native 1 native 2

Total Additional Requirement as % of Total Additional Supply AlterAlternative I native 2

13,323

98,448

131,264

111,771

144,587

15.00

15.00

16,765

21,688

47.90

61.96

538

1,092

1,456

1,630

1,994

25.00

25.00

407

498

29.07

35.61

l4 F-

- 172 -

CHAPTER VTI PROJECTIONOF MANPOWER DEMAND IN THE MIDDLE EAST AND THE PROSPECTSAND POSSIBILITIESOF MANPOWER EXPORT FROM BANGLADESH A.

Introduction

6.1 Recently the labour-scarceand oil-richArab countrieshave made massive capital investments in developmentactivitiesfor which they are importing labour from both the developingand developed countries,so much so that more than half of the total labour force of the Arab countries is comprised of foreign labourers. The volume of labour trade has doubled within the last few years, and labour export has turned into a big source of foreign exchange earnings of the labour exporting developingcountries. It is therefore important to assess the demand for manpower in the Middle East in general, and the prospects and possibilitiesof manpower export from Bangladeshin particular. 6.2

Tne purpose of this study will be to obtain information and analyze the following:

(a) The existing structure of the labour market in the Middle East. (b) Projection of labour demand in the Middle East and North Africa according to sectors and occupations. (c) Supplementaryinformationwith regard to prospectivedemand collected by the author from his survey of the embassiesof the Middle Eastern countries located in Bangladesh. (d) Supply of manpower in the Middle East. (e) Existing structure of the labour market in Bangladesh. (f) Prospects and possibilitiesof supply of labour by skill and occupation from Bangladeshto the Middle East. B. The Structureof the Labour Market in the Middle East

(i) Demand for Labour

6.3 Economic forces are the basic determinantsof the internationalmigration of labour. In Arab countries it is the strengthof oil wealth and its uses which determine the volume, pattern and direction of demand for labour. The exploitationof oil resources and the investmentof royalties in the programme of modernizationin the Arab countriesgenerated the demand for manpower from abroad. At the early stage there was little attempt to expand economic

- 173 -

activities. During the 1960s oil revenue began to increase quickly and investment in social infrastructureand overheads began, at this stage, with the establishmentof schools,hospitals,constructionof roads, highways and airports and provision of essential utilities like water distillationplants, supply of drinkingwater, etc. This resulted in the demand for constructionworkers during this period. Since the early 1970s the oil revenues increased tremendously and the trend continuedthereafter. This increased revenue was invested in productivesectors and in overheads to facilitateproductiveactivities. More roads were constructed,transport and communicationsectors began to develop and some manufacturingactivities, especiallyin heavy industriesbased on oil energy, were established. With the modernizationprogramme,more social infrastructureswere provided, modern schools were set up, urban housing and dwelling units were constructed,and various utilities and serviceslike electricity, urban sewerage system, sanitationand health serviceswere provided. With the introductionand expansionof these activitiesthe responsibilityof the Government has increased. The administrationof justice, security and police services and the national defence had to be provided and a rapid educationalprogramme had to be undertaken to give minimum education to the nationals for all these lobs. It is obvious that these activitiesmainly involved constructionresulting in the demand for constructionworkers. A diversifieddemand for specialized skills and services is gradually being created in the health, education and urban sectors. Because of the shortage of basic infrastructuresthe development of industriesand agriculturehas been rather slow. However, as already mentioned earlier, the productive sectors have developed at varying degrees in the Arab countries. The countrywisedata will explain these characteristic phenomena. 6.4 United Arab Emirates. United Arab Emirates are comprised of Abu Dhabi, Dubai, Sharjan,Ras Al Khaimah, Fujairah, Ajman, Uman Al Qaiwan and a few other small islands. Current and future developmentprogrammes in UAE include developmentof urban-industrialareas for industriallocation,gas processing plants, a fertilizerplant, an iron and steel works, petro-chemicalplants and cement factories. Between 1968 and 1975 total employmentincreased 19% per annum and nationalmanpower supply increased at the yearly rate of 3.8% which is slightlymore than the populationgrowth rate of 3% per annum. So the ambitious programme of modernizationwill create increasingdemand for manpower with diverse skills from abroad. 1/ 6.5 Qatar. Qatar started the programme of modernizationin 1972. A fertilizerplant and a flour mill were established,infrastructuraland social services includingfresh water, electricity,schools,hospitals, roads and ports were developed. The current and future programme of modernizationincludes another fertilizerplant, a natural gas liquifactionplant, a petro-chemical complex,a steel mill and a cement plant, some infrastructuralprojects like power generatingplants, water distillationunits and expansion of port facilities, housing facilitiesand education facilities. A few light industries 1/

J.S. Birks and C.A. Sinclair,Country Case Study: The United Arab Emirates, InternationalMigration Project, Departmentof Economics,University of Durham, England, (June 1978), pp. 9-19.

- 174 for bricks, tiles, paper tissues, paints, detergents,cosmetics,batteries, car tyres and glass products will also be developed. So demand for manpower in all skills will be increased to a large extent over the coming years. 1/ 6.6 Bahrain. The economy of Bahrain is dominated by two activities,the oil industry and the import-exporttrade. Recently the economy has been developing diversifyingactivities like manufacturingindustriesmainly based on natural gas and oil, ship repairing,shipbuildingand engineeringand there has been a significantdevelopmentin banking and hotel industries. So port workers and service workers are the largest employmentareas in Bahrain. The following Table shows that service sectors employ the largest number of labourers and these sectors are gradually expanding over time. Table 6.1 (a): BAHRAIN: EMPLOYMENTBY ECONOMIC ACTIVITIES (Percent)

Agriculture and Fishing Mining and Quarrying Manufacturing Construction Services (Trading,Banking,Transport, Communication,Electricity,Gas, Government,Hotels, etc.) Total Source:

1959

1965

1971

9.5 1.0 21.2 10.1

8.7 0.3 13.7 15.6

6.7 0.1 14.0 17.5

58.2

.61.7

.61.7

100.0

100.0

100.0

J.S. Birks and C.A. Sinclair, Country Case Study: Bahrain, International Migration Project,Department of Economics,Universityof Durham, England (May 1978).

The above Table shows that the demand for manpower in the service industriesis the highest, and gradually the expandingproductive sectors will demand diverse occupationalclasses. 6.7 Kuwait. Economic development in Kuwait started in three phases. In the first phase Kuwait developedher infrastructureand social services. This phase continued from the early fifties up to 1962. During this period water, electricity,roads, hospitals and Government offices were established. During the second phase from 1962 to 1973 banking and a few large import substitution industriessuch as chemical fertilizers,asbestos,prefabricatedhousing materials, cement, metal pipes, flour mills and fisherieswere developed.2/ 1/

J.S. Birks and C.A. Sinclair,Country Case Study: Qatar, InternationalMigration Project,Department of Economics,University of Durham, England (February 1978).

2/

J.S. Birks and C.A. Sinclair, Country Case Study: Kuwait, International Migration Project, Part I, Department of Economics,Universityof Durham, England (July 1977), p.41 .

- 175 -

During the third phase which began in 1973, capital-intensiveindustriesbased on relativelycheap sources of energy and abundance of capital began to be established and with this more improved financial instituteslike the Industrial DevelopmentBank were established. During the 1976-81DevelopmentPlan 31.6% of the total allocationhas been made for housing, 20.6% for manufacturingand 12.1% for electricityand water. 1/ Employment statisticsin 1975 shows that 48.5% of the total expatriatelabourerswere employed in communityand personal services, 15.7% in trade, 14.4% in construction,10.5% in manufacturingand the rest in other sectors. 2/ Among the non-Kuwaitilabour force, productionworkers and unskilled labourers accounted for 34% , skilled and semi-skilledmanual workers accounted for 29.4%, skilled and semi-skilledoffice workers for 18% and the rest belonged to other occupations.3/ Skillwise the 1975 proportionatestructure of demand for expatriatemanpower appears to continue in view of the orientation of developmentprogrammes. The non-nationalsare more numerous than nationals in all occupationsexcept teaching. 4/ 6.8 Saudi Arabia. The GovernmentDevelopment Project compositionindicates that agriculture,constructionand industry are the three major sectors after mining. Transport and services come next. Plan allocationhas placedpredominant eumphasison education,physical infrastructureand manufacturing. The 1975-80 developmentprogrammemade the highest allocationto physical infrastructure (22.7%)followed by economic resource development (18.5%)and human resource development (16.1%).5/

1/

J.S. Birks and C.A. Sinclair,Country Case Study: Kuwait, International Migration Project, Part I, Department of Economics,University of Durham, England (July 1977), p. 41.

2/

Ibid., Table 11, p. 15.

3/

Ibid., Tables 13, 14, 15, pp. 22-24.

4/

Ibid.

5/

J.S. Birks and C.A. Sinclair, Country Case Study: Saudi Arabia, International Migration Project,Departmentof Economics,Universityof Durham, England (March 1979), p. 45.

- 176

-

Table 6.1 (b): COMPOSITION OF THE GOVERNMENT DEVELOPMENT PROGRAMME: SAUDI ARABIA (Billion US$) 1975-76

1975-80

Agriculture Mining & Quarrying

14.0 72.0

Industry Electricity & Gas Construction Trade

4.7 0.2 7.5 3.0

Government Finance Transport Services

2.4 2.0 3.8 3.3

Total

100.0 2/

Source:

Education Municipalities Manufacturing & Mining Water Desalination Roads Health Civil Aviation Social Services Housing Holy Cities Agriculture Telecommunication & Post Total

24.0 17.1 14.6 11.1 6.9 5.6 4.8 4.7 4.6 1.6 1.5 1.4 100.0 2/

J.S. Birks and C.A. Sinclair, Country Case Study: Saudi Arabia, International Migration Project, Department of Economics, University of Durham, England (March 1979).

The above trend in development indicates that there will be expanding demand for manpower in the fields of education and training, production and construction in Saudi Arabia. 6.9 Sultanate of Oman. It will be observed in the following Table that the share of agriculture in the GDP of Oman has gone down significantly from 15.8% in 1970 to 3.1% in 1974, while construction has increased from 8.2% in 1970 to 10.2% in 1974 and trade from 1.5% in 1970 to 4.8% in 1974. The largest number of foreign workers are concentrated in professional, technical and managerial trades. Nevertheless, the demand for semi-skilled, skilled, and manual workers has been increasing over time at a larger rate than that for the professional and technical groups. 1/ This trend in labour demand is explained by the highest rate of expansion in construction and trade sectors as shown in the following Table.

1/

2/

J.S. Birks and C.A. Sinclair, Country Case Study: Oman, International Migration Project, Department of Economics, University of Durham, England (July 1977). Total does not add because of rounding.

- 177 -

Table 6.1 (c): COMPOSITIONOF GOVERNMENT DEVELOPMENTPROGRAMME: OMAN (Percent) Sectors

1970

1974

Agriculture Mining Manufacturing Construction Transport Electricity & Water Trade Banking Ownership of Dwelling Government Other Services

15.8 68.5 0.2 8.2 0.7 0.1 1.5 0.5 1.4 2.2 0.9

3.1 68.5 0.4 10.2 2.2 0.2 4.8 0.6 0.8 8.2 1.2

Total Source:

100.0

100.0 2/

J.S. Birks and C.A. Sinclair, Country Case Study: Oman, International Migration Project, Departmentof Economics,University of Durham, England (July 1977).

6.10 Yemen Arab Republic. The feature of the compositionof the GDP in the following Table shows the Yemen Arab Republic has a diversifiedproductiveeconomy where agricultureis overwhelminglythe largest sector. YAR economy thus has some similaritywith that of Bangladesh. A single large agriculturalsector and tiny industrialand other sectors explain this common characteristic phenomenon. YAR has planned to develop infrastructure, human resourcesand industriesto achieve the long term objective of attaining self-sufficiencyin agriculture.1/ Thus it seems that YAR's developmenthas similaritywith the current development programme of Bangladesh. The nature of manpower trainingand manpower requirements is also similar between the two countries. Probably these common factors might encourage YAR to import more labour from Bangladesh.

1/

YAR StatisticalYearbook 1974-75,quoted by J.S. Birks, C.A. Sinclairand J. Socknot, InternationalMigration Project,Department of Economics, Universityof Durham, England (September1978).

2/

Total does not add because of rounding.

- 178 -

Table

Sector

1969

1970

1971

1972

1973

Agriculture Industry Construction Trade Government Finance Transport Housing Services

71.9 2.3 3.0 12.9 2.5 0.4 2.3 3.7 1.1

70.8 2.8 3.1 12.7 2.8 0.8 2.3 3.6 1.3

70.9 3.0 3.0 12.1 3.1 0.7 2.4 3.4 1.4

66.0 3.0 3.3 14.9 5.0 0.9 2.4 3.0 1.5

61.4 3.5 3.9 15.9 6.9 1.3 2.4 3.0 1.7

100.0

100.0

100.0

Total Source:

6.1 (d): COMPOSITION OF GOVERNMENT DEVELOPMENTPROGRAMME:YAR (Percent)

100.01/

100.0 1

YAR Statistical Yearbook 1974-75, quoted bv J.S. Birks, C.A. Sinclair and J. Socknat, International Migration Project, Department of Economics, University of Durham, England (September 1978).

6.11 Libyan Arab Jamahiriya. Libyan Arab Jamahiriya has a diversified economy. The shares of agriculture and industry in the GDP are increasing rapidly over time. The share of construction is also increasing simultaneously. The country's current and future development programmes have given highest priority to the development of agriculture followed by public health, industry and mining. Table 6.1 (e) shows the percentage shares of different sectors of the economy during 1973 and 1974, and Table 6.1 (f) shows the sectorwise allocation in the development programmes for 1976-80. Table 6.1 (e): COMPOSITION OF GOVERNMENT DEVELOPMENT PROGRAMME: LIBYA Sector

1973

Agriculture 60.0 Mining & Quarrying 1,136.8 Manufacturing 50.8 Construction 261.2 Electricity, Gas & Water 10.8 Transport 129.3 Trade 124.8 Government 345.8 Services 62.8 Total Source:

I/

2,182.3

%

1974

%

2.7

64.7

1.6

7.8

52.1 3.3 12.0

2,894.4 74.5 401.6

61.2 1.9 10.3

111.1 46.7 53.8

0.5 5.9 5.7 15.9 2.9

12.4 192.9 184.2 494.7 93.9

0.3 4.9 4.7 12.7 2.4

14.8 49.2 47.6 43.1 49.5

100.01/4,413.3

100.0

79.1

% Change

J;S. Birks and C.A. Sinclair, Country Case Study: Libyan Arab Jamahiriya, International Migration Project, Department of Economics, University of Durham, England (1978).

Total does not add because of rounding.

- 179 -

Table 6.1 (f) (ThousandLibyan Dinar) Total Allocations 1976-1980

% of the Total

Agriculture& Agrarian Reform InternalAgriculturalDevelopment Dams & Water Resources Nutrition & Maritime Wealth Industry& Mineral Wealth Oil & Gas Exploitation Electricity Education Information& Culture Manpower Public Health Social Affairs & Social Security Youth & Sports Housing Security Services Municipalities Transport & Communications Maritime Transport Trade & Marketing Planning & ScientificResearch Reserves for Projects

412,269 857,760 86,040 49,161 1,149,418 670,000 683,195 491,655 99,168 56,002 197,655 13,157 52,020 794,236 35,000 565,108 659,854 373,500 36,730 13,045 230,027

5.5 11.4 1.1 0.7 15.3 8.9 9.0 9.5 1.3 0.8 2.6 0.2 0.9 10.6 0.4 7.5 8.8 5.0 0.5 0.2 3.0

Total

7,525,000

Sector

Source;

100.0 l/

J.S. Birks and C.A. Sinclair, Country Case Study: Libyan Arab Jamahiriya, InternationalMigration Project, Departmentof Economics, University of Durham, England (1978).

6.12 To sum up, it appears that the general trend in the programmesof modernizationin all Arab countries is towards the expansionof the productive sectors and the development of human resources. Excepting a few specialized skills for the productionof specializedcommodities,the existing demand for various skills appears to expand in general. (ii) Supply of Labour 6.13 It is pertinent to mention here that all countries in the Middle East did not start modernizationat the same time nor is the strength of wealth the same for all of them. Among them the leading group consistsof Iraq, Iran, Egypt, Sudan and Libya. They have diverse resource bases which offer them the possibilitiesfor diversifiedprogrammesfor economic development. They have more water and cultivable land resourceswhich gives them more independentgrowth potentialities. The second group is comprised of Saudi Arabia, Kuwait, Yemen 1/ Total does not add because of rounding.

-

180 -

Arab Republic, Qatar, Oman, Bahrain and UAE. The second group of the Arab countries own vast barren terrain and desert lands, have a dry climate and limited water, sparse population and, in general, lack domestic food supply. As the population is small, these countries must import labour from neighbouring non-oil exporting countries, which have surplus population to man their development programmes. The countries under the first group export labour to the second group of countries and, excepting Egypt, also import cheaper labour of various skills from non-Arab countries. These skills include doctors, engineers and related skills, drivers, agricultural specialists, skilled and semi-skilled manual workers, etc. 6. 14 There is no data for Iraq and Iran but for the rest of the Arab countries, employment by nationalities can be shown as follows: Table 6.2:

Country

COMPOSITION OF EMPLOYMENT BY NATIONALITIES IN THE LABOUR IMPORTING COUNTRIES Employment of Nationals

Saudi Arabia Libya Kuwait United Arab Emirates Bahrain Qatar Total Source:

Non-nationals Employment

%

Total

826,400 454,100 91,844 45,000 45,771 12,500

773,400 332,350 208,001 251,500 29,285 53,716

48.4 42.2 69.4 84.8 39.0 81.1

1,599,800 786,450 299,845 296,500 75,056 66,216

1,475,615

1,648,252

52.8

3,123,867

J.S. Birks and C.A. Sinclair, Country Case Study: Summary, International Migration Project, Department of Economics, University of Durham, England (December 1978), Table 2, p. 8.

6.15 There is, however, a geographical difference in the supply of skills. The largest proportion of specialised and skilled workers come from Europe and America. Unskilled labourers come, by and large, from Yemen Arab Republic and Oman, while the majority of manual labourers are imported from India, Pakistan and Bangladesh. In particular, defence, state administration, administration of justice, police and security services are filled by the nationals and the same is true for activities like trade and business, clerical work, various services and ordinary manual work. A study by the World Bank on the occupational characteristics of 1.3 million emigrant workers in Libya, Saudi Arabia, Kuwait, Bahrain and the UAE shows that approximately 14% of this total are employed in professional, technical and managerial occupations, about 19% are employed in clerical and service jobs and the remaining 67% are semi-skilled and unskilled workers in construction, agriculture and other sectors. 1/ In 1978 about 2 million emigrant labourers were working in the oil exporting countries of the Middle East and North Africa and in a number of countries where the native supply of manpower is very small,

1I/

Zafer Ecevit and K.C. Zachariah, "International Labour Migration," Finance and Development, December 1978.

- 181 -

employment of non-nationals is greater than the nationals. For example foreign workers account for 84.8% in UAE, 81.1% in Qatar and 69.4% in Kuwait in 1978. In the whole region combined, the percentage of foreign workers is 52.8% which more than half of the total employment.

(iii)

Future

Structure

of Demand for

Labour

in

the

Middle

is

East

6.16 To estimate the magnitude and pattern of future demand for manpower in the Middle East, information about the present patterns of labour import, demography, education, employment and economic development and their future programmes and orientations is necessary. No published or unpublished information on these aspects is available from these countries. The embassies of the Middle Eastern countries were approached for data on the future development programmes and priorities in the Arab countries. Excepting the Libyan Embassy, none of the other Arab embassies was able to provide the necessary data for the analytical basis of this study. The information gathered was descriptive rather than quantitative. 6.17 The future trend in the structural change envisaged in the Arab countries, with the exception of Iraq and Iran which have a larger productive sector than the other Arab countries, can be briefly indicated. Over the next five to ten years professionals, skilled and semi-skilled labour will be in considerable demand. Firstly, during the coming decade, agriculture will be considered to be the priority sector in the National Development Programmes, creating additional demand for various skills in the agricultural sector. Since most of the Arab countries emphasize large scale mechanized farming, the agricultural labour will have to be trained to handle agricultural machinery and implements like tractors, irrigation machinery, harvesting and sowing machines, etc. Secondly, the demand for electrical engineers, electrical technicians, mechanical engineers, mechanics, and civil engineers will continue in the future. Thirdly, demand for drivers of all types of vehicles will increase as time passes. Fourthly, the labour demand for construction and communication sectors will mainly be comprised of masons, crane drivers, lifters, etc. Construction will still remain the largest sector. The major investment will be made on the construction of roads, housing, hospitals, schools and various agricultural overheads. Lastly, most industries will be agro-based and based on minerals. These are readymade clothes and garments, ordinary textiles, fish products, food canning, olive canning and petro-chemical industries. The demand for unskilled labour from abroad has been projected to be small. 6.18 From the above profile of the future demand, it appears that more diversified skilled labour will be needed with the gradual expansion of the productive sectors in the Middle East. The survey also indicates that the demand for teachers from abroad will gradually be smaller because firstly, partial need will be met from within the Arab countries because of common language and common culture, and secondly, the rest of the demand is open to the international competition in the supply market. 6.19 The findings of the survey corresponds to the demand for manpower in the Middle East as projected by the World Bank research group. Table 6. 3 (a) shows sectorwise estimated total demand for manpower to be generated as a result of the estimated growth of the sectors over the period 1980-85, while Table 6.3(b) shows the trend and magnitude of demand for manpower according to skills and occupations.

- 182 -

6.20 Table 6.3(a) shows that though construction will still employ quite a large number of labourers in proportion to the total employment during the early 1980s, the service sector will employ the largest amount of manpower, and gradually the trade and finance and agricultural labour force will be the third and fourth highest figures by 1985, though in proportion the share of the agricultural labour force will decline in 1985. In terms of change over time agriculture, utilities and manufacture respectively show the highest growth rates though the demand for agricultural labour force shows a gradually declining trend. There is a high and stable correlation between the growth rates of manufacture and utilities. This is obvious because with manufacturing activities there is a consequential aggregation of activities and human habitation which gives rise to the demand for urban utilities like sewerage systems, municipal services, supply of water and electricity, etc. With the expansion of more of the modern sector, the demand for utilities will increase further. The rate of increase of utilities will be even greater as more revenues will be spent to increase the standard of living of the people. Per head consumption of utilities will increase with the process of development, particularly in the urban sector. In 1985 these phenomena are reflected in the highest growth rate of the labour demand in utilities and the relatively low rate of growth in the demand for agricultural labour. Higher rates of increase of labour demand are expected in manufacturing, utilities, mining, construction, trade and finance. Transport, communication and the services sector do not, however, show this correlation, mainly because these sectors employ nationals and Arabs in the largest proportion and the lowest number of expatriates, as has been discussed earlier. 6.21 Table 6.3(b) shows that occupationwise the rate of increase in demand for unskilled manual workers will be the highest, followed by specialised professionals and technical hands during the early 1980s, while in 1985 unskilled and manual workers will be in least demand. This phenomenon is explained by the fact that with a higher level of modernization a larger proportion of labour saving devides like mechanical automation will be likely to be introduced, which will in turn reduce the demand for semi-skilled and unskilled manual workers. This trend thus corresponds with the sectorwise demand structure for manpower from abroad in Table 6.3 (a), which shows that the highest growth rate will be in the utilities and other productive sectors like agriculture and manufacturing in the early 1980s and from 1985 the demand for agricultural labour will fall, while the modern sectors will register larger increases. This observation cannot, however, be conclusive because larger numbers of national and non-national Arabs may also capture this section of labour demand over time or perhaps after the mid-1980s the growth of agriculture will be slowed down because of the natural barriers imposed by water shortages, lack of cultivable land or the limiting capacity of land development. The above data have been projected after due consideration of the future supply of local manpower education and training, employment and future prospects and possibilities for economic development.

-

183 -

Table 6.3(a): DEMAND FOR EXPATRIATE MANPOWER IN THE MIDDLE EAST AND NORTH AFRICA BY ECONOMIC ACTIVITY 1980-85

Agriculture % Change Mining/Oil % Change Manufacturing % Change Utilities % Change Construction % Change Trade & Finance % Change Transport & Communication % Change Services % Change Total % Change

1980

1981

1982

1983

1984

1985

227,006

277,574 22.2 57,338 3.8 193,985 12.3 57,512 15.6 744,068 0.9 390,718 6.1

332,662 19.8 59,580 3.9 218,925 12.9 66,411 15.5 729,436 -2.0 414,045 6.0

386,099 16.1 61,147 2.6 248,690 13.6 76,620 15.4 725,861 0.5 441,641 6.7

444,661 15.1 63,114 3.2 287,102 15.4 88,725 15.8 738,928 1.8 475,768 7.7

504,089 13.4 65,894 4.4 330,280 15.0 103,250 16.4 770,936 4.3 515,300 8.3

246,712 1.0 805,574 10.6

251,141 1.8 881,045 9.4

256,535 2.1 954,583 8.3

263,098 2.6 1,048,238 9.8

368,607 2.1 1,150,784 9.8

2,773,481 7.4

2,953,245 6.5

3,151,176 6.7

3,409,634 8.2

3,809,140 8.8

55,211 172,798 49,763 737,215 368,350

244,030 727,747

2,582,120

Source:

World Bank, September 7, 1979.

Note:

Projections cover the following countries: Algeria, Bahrain, Iran, Kuwait, Libya, Oman, Qatar, Saudi Arabia, United Arab Emirates.

- 184 -

Table

6. .3(b):

DEMANDFOR EXPATRIATE LABOUR IN THE MIDDLE EAST AND NORTH AFRICA BY OCCUPATION OVER 1980-85 1/ 1980

Professional & Technical 139,405 % Change Other Professional 252,636 % Change Sub-Professional & Technical 200,095 % Change Other SubProfessional 115,321 % Change Skilled Office & Manual 801.148 % Change Semi-skilled Office & Manual 599,118 % Change Unskilled 474,417 % Change Total % Change

2,582,140

1981

1982

1983

1984

1985

149,179 7.0

159,195 6.7

170,730 7.2

184,073 7.8

210,769 14.5

271,614 7.5

291,234 7.2

313,506 7.6

337,300 7.6

380,960 12.9

221,327 10.6

238,262 7.6

254,173 6.7

275,317 8.3

313,322 13.8

125,245 8.6

130,577 4.3

133,078 1.9

138,399 4.0

151,371 9.5

858,594 7.2

914,064 6.4

973,108 6.4

1,043,997 7.3

1,152,784 10.4

660,478 10.2 487,044 2.7

721,919 9.3 497,994 2.2

793,902 10.0 512,659 3.0

882,674 11.2 547,874 6.9

947,988 7.4 551,946 0.7

2,773,481 7.4

2,953,245 6.5

3,151,156 6.7

3,409,634 8.2

3,709,140 8.8

Source:

World Bank, September 7, 1979.

Note:

Projections cover the following countries: Algeria, Bahrain, Iran, Kuwait, Libya, Oman, Qatar, Saudi Arabia, United Arab Emirates.

l/

This occupational classification is different from the classification made by the experts of this Labour Migration Project in Bangladesh. In our classification we have five occupations groups, viz: Professional, Technical, Skilled, Semi-skilled and Unskilled. The details of both the classifications appe.arin the Appendix. Therefore, occupationwise analysis of demand and supply of manpower between the Middle East and Bangladesh is a rough approximation between the two classifications.

- 185

C.

Existing

Structure

-

of Labour

Market

in

Bangladesh

6.22 Demand for Labour in Bangladesh. The economic activities create demand for labour, while the existing volume of activities determines the extent of current demand for manpower. The future expansion of economic activities and future changes in the structure of activities determine the nature, character and magnitude of demand for manpower over time. In general, the magnitude of unemployment indicates that the domestic market is not adequate to absorb the country's present and prospective labour force. Yet the index of supply and demand shows that there is a much bigger market for absorption of certain skills like doctors, engineers, etc. who are in short supply according to the needs of the country at present and in future. 6.23 Supply of Labour in Bangladesh. Bangladesh, with 85 million people in an area of 55 thousand square miles in 1977-78, is one of the most densely populated countries in the world. The total labour force in the country was estimated to be 29.9 million in the same year, increasing at a rate of 2.5% per year. The level of unemployment in 1978 was estimated to be 8.1 million. 1/ 6.24 Demand and Supply of Educated and Trained Manpower in Bangladesh. Looking at the relative position of supply and demand in Bangladesh according to skill and training, it appears that there is a surplus of more than 500,000 graduates and post graduates in both general and science education, although there is an acute shortage in the supply of professionals like doctors, electrical and mechanical engineers and of technical skills like electrical foremen, overhead electricians, etc. 2/ Not much is known about the magnitude of unemployment and the extent of disguised unemployment in terms of skill classification and activities. Similarly, information with regard to hidden unemployment in the sense that many over-qualified graduates are employed where lower level educational degrees could serve the purpose, is not available. But estimating the supply of skilled and trained manpower from the enrolment strength in the various educational and professional institutions in Bangladesh, 3/ and from the register of BMET showing people with different trades and skills seeking employment abroad in 1979, it comes out clearly that there is a scarcity of certain skills and an oversupply of other skills. Thus the phenomenon appears to create a situation of crisis among abundances. 6.25 Projection of Supply of Manpower in Bangladesh. It is also relevent to project the supply of manpower according to education and training in Bangladesh over a certain period in the future. This will indicate the feasibility of expanding the export of various skills given the demand for manpower by the Middle East as projected in the preceding section. Projection of supply can be made with two alternative hypotheses: (a)

If the supply of the educational and training institutions remains constant.

1/

See Table 1.1.

2/

See Table 5.2.

3/

See Table 1.4.

- 186 -

(b) If the supply of the educationaland training institutions is increasedor reorganized. Under the first assumptionit is difficult to project the supply of doctors, engineers and certain rare skills like powerhouseforeman or overhead electricians who have 5 to 10 years of job experience. The primary school leavers from 40,313 primary schools,a large number of high school dropouts, graduates from 9,299 secondaryand higher secondary schools, graduates from 338 degree colleges,honours graduatesand Master's degree holders from 6 universities,and graduatesfrom about 1,830 Madrasahs can almost meet the entire projected demand for semi-skilledand unskilledmanual and clericalworkers in the Middle East over 1980-85. 1/ This rough estimation does not include the uneducatedmanpower available for manual work of an unskilled or semi-skillednature, especiallyin construction,repairs, municipal and various other services. BMET also shows a large number of surplus graduates from 114,155enrolmentswhich will be available for export to meet the increasingdemand for technical,skilled and semi-skilledmanpower. 2/ Under the second hypothesis,with the reorganizationand reorientationof educationaland and training institutionsand the expansion of the base of on-the-jobtraining, the supply of all categoriesof occupationcan be increased to a large extent, particularlyin the technical, skilled and semi-skilledcategory if training and augmentationare provided to the millions of unemployablesecondaryand higher secondary school graduates,Madrasah graduates,dropouts from all levels and graduates and degree holders from colleges and universities(of course the reorientation programmemay reduce the importanceof colleges and general educational institutions). So under the second hypothesis, the entire demand of almost all categories,excepting some areas of professionaland technical skills, may be supplied.

D. Prospects and Possibilitiesof Export of Labour from Bangladesh to the Middle East 6.26 Technicallyand organizationallythe manpower industryis different from other industrieswhich manufacturegoods and services. Decisionsmade about manpower planning need to take account of the existing and prospectivedemand. The trend in the structureof manpower developmentwill depend upon the trend in the developmentand structuralchanges of the entire economy at home. Orientation for export requires similar informationabout the countrieswhich import manpower. The forces of activitieswhich generatedemand for various skills in the Middle East have been analysed. The existing structureof demand for manpower in the Middle East is likely to continue for quite a long time. And with the gradual increase of productionactivities through the expansion of agriculturaland manufacturingindustriesadditional demand for agriculturaland industriallabour forces, both skilled and unskilled,will be created. But the prospects of supply from Bangladeshare constrainedby many factors,both internal and external.

1/

The number of educatedpeople below university level was estimated at over 11.3 million in 1976.

21

See Table 1.3.

- 187 -

6.27 Internal Constraints. Data on labour export by occupation from Bangladesh to the Arab countries for the years 1976, 1977 and 1978 were provided earlier. l/ The character of export of manpower shows that Bangladesh is currently supplying almost all skills. But the prospect of supply appears to be unlimited for semiskilled and unskilled labour from Bangladesh. This category of unlimited supply may also include a large number of unemployed and unemployable general graduates from high schools, senior high schools, post high school levels and dropouts from all levels. Currently these semi-skilled and unskilled labourers are supplied by the Arab countries and they are not in much demand from abroad. But Madrasah graduates from Bangladesh can always be made available to meet this demand as explained in the preceding paragraphs. The specialists, professionals, doctors, engineers, and skilled technicians are in great demand in the Middle East and this is likely to continue over quite a long period of time. Bangladesh unfortunately has an acute shortage of these skills to meet internal requirements. These skills are migrating to the Middle East by evading Government controls and restrictions and this causes a high social cost to Bangladesh. Without making changes in the structure of training and education to enhance the supply of these skills, the prospect of future export of these selected skills appears to be negative. Measures for quality control will remain important for promotion of manpower export from Bangladesh. The elimination of indiscriminate selection, the drive for exploration of vacancies and job contracts, and the goodwill of the Bangladeshi workers abroad are a few of the measures upon which the future expansion of the export of manpower from Bangladesh will largely depend. 6.28 External Constraints. Bangladesh is also expected to face constraints from external sources which are worth considering in future planning. The international supply market of manpower is highly competitive. The competitive labour suppliers of all categories from Asia are Afghanistan, Bangladesh, Indonesia, India, Malaysia, Pakistan, the Philippines, Sri Lanka and Thailand. The competition has been made tougher because of the participation in labour supply by the developed countries like the United States of America, Japan and European countries. Table 6.4(a) shows the participants in manpower trade. The volume of intra-Arab trade in manpower is quite big and will be a potential source of competition in even rare skills after the Arab countries develop their own skills through education and training. Tables 6.4(b)I and 6.4(b)II show the volume of intra-Arab countries manpower trade while Table 6.4(c) shows the countrywise shares in the manpower export trade.

1/

See Appendix to Chapter IX Table 16.

- 188 -

Table

Destination: Source: Egypt Europe & Others UK USA Bulgaria

6

.4(a): IMMIGRANT LABOUR IN THE MIDDLE EAST AND NORTH AFRICA BY SOURCE AND DESTINATION IN 1975 1/ (Thousands) UAE

12.7 2.94 3.16

1.31 1.57 -

Fiance Poland Romania Yugoslavia

Jordan Morocco Syria Tunisia Turkey YAR, PDR, & Yemen Other Asian Countries Africa Iran Iraq Kuwait Lebanon Oman Saudi Arabia

Qatar

Iraq

Bahrain

Kuwait

Iran

Libya

Oman

2.7

2.3

1.2

37.6

-

175.0

5.5

9.2 -

0.7 -

.04 3.49 .84

2.0 -

10.0

-

25.0 -

-

-

-

-

-

--

-

-

-

-

-

9.0

1.7 0.4 -

3.1 0.2 -

1.8 0.1 -

47.7 16.5 -

1.2

7.0 1.8 15.0 29.0 8.0

2.6 1.5 -

3.5

2.6

-

1.3

11.4

-

-

1.0

.4 2.45 .62 4.06 1.0 -

0.5 -

-

1.0

1.1

-

-

UAE

-

-

-

-

-

-

1.77 1.62 2.45 94.0 73.0 7.03

14.5 19.8 10.5

0.9 0.3 0.9

223.3

61.9

8.4

80.0

77.0

1.0

Percent of Total Employment Source:

1/

-

-

3.6 -

6.4 3.4 -

Afganistan Other Gulf States Sudan Somalia Bangladesh Pakistan India Others Total

-

4.0 2.0 2.0 2.0 6.0 3.0

-

.05 1.98

.12 .06 .12 1.38 .22 .41 -

6.7 9.0 .65

-

5.0

-

_

-

-

-

-

28.59 17.99 7.23 2.64 -

-

-

-

-

-

-

-

_

_

12.0

-

-

-

14.0

_

_

.87 11.0 21.5 4.95

-

-

-

2.4 4.4 -

5.0 2.0 24.0

20.2 24.8 8.2

30.5

211.07

182.0

294,8

67.4

38.0

71.0

2.0

33.0

44.0

Zafer Ecevit and K.C. Zachariah.,"International Labour Migration," Finance and Development (December 1978), p. 37.

Countrywise labour import figure for Saudi Arabia is not quoted. by Saudi Arabia was 770,000 labourers from all sources in 1975.

Total import

-

189 -

Table 6.4(b)I: INTRA-ARAB COUNTRIES VOLUMEOF MANPOWERTRANSACTION VIS-A-VIS THE SHARE OF MANPOWEROF OTHER REGIONS OF THE WORLD (1975)

Origin: Countries of Employment: Saudi Arabia Libya UAE Kuwait Qatar Bahrain Total % Share by Origin Source:

Iranians Turks Africans & Others

Total Number of Migrant Workers

Arabs

Asians

699,900 310,350 62,000 143,280 14,870 6,200

38,000 5,500 163,500 33,616 34,000 16,600

15,000 7,000 6,000 2,028 846 4,442

20,500 9,500 21,000 29,077 4,000 2,039

773,400 332,350 252,500 208,001 53,716 29,285

1,236,600

291,216

35,316

86,116

1,649,248

75.0

17.7

Europeans

2.1

5.2

100.0

J.A. Birks and C.A. Sinclair, Country Case Study: Summary, International Migration Project, Department of Economics, University of Durham, England (December 1978), adapted from Table 3, p. 10. Table 6.4(b)II

Origin:

Arabs

Destination: Middle East Total 1,350,000

Asians

Others

Total

1,044,000

-

2,394,000

43.6

-

100.0

% of the Total by Country of Origin

Source:

56.4

Adapted from IMF Survey, Vol. 7, No. 17, September 4, 1978.

-

Table 6.5(c):

190

MIGRANT WORKERS TO THE MIDDLE EAST IN 1977

Supplying Countries

Number of Migrants

Afghanistan Bangladesh Egypt India Jordan Korea Pakistan Sri Lanka Sudan Yemen Arab Republic Yemen People's Democratic Republic Total Source:

-

% of the Total

200,000 50,000 350,000 214,000 150,000 60,000 500,000 20,000 50,000 500,000 300,000

8.3 2.1 14.6 8.9 6.3 2.5 20.9 0.9 2.1 20.9 12.5

2,394,000

100.0

IMF Survey, Ibid.

Table

6.4(d):

MANPOWEREXPORT FROM BANGLADESHCOMPAREDWITH THE TOTAL IN 1975-1978 1975

1976

1977

Bangladesh*

-

6,087

Growth

-

-

258%

-

2,394,000

-

145%

Rate

Total Export to the Middle East**

1,648,252 -

Growth Rate

15,725

1978 22,809 145%

*See Chapter I. **J.S. Birks and C.A. Sinclair, Ibid. Source:

IME Survey,

Ibid.

6.28 It can be seen from Table 6.4(a) that quite a large number of countries participate in the manpower export trade. Among the labour importing countries, UAE, Qatar and Kuwait had the largest percentages of foreign employment in proportion to the total employment in 1975. These proportions are 80% for UAE, 77% for Qatar, and 71% for Kuwait. Except for short term variations arising from political differences, the geographical proximity, linguistic, social and cultural homogeniety cause an obvious preference for manpower from other Arab countries. This is clear from Tables 6.4(b)I and 6.4(b)II. During 1975 the share of all Asia was only 17.7% of the export of manpower and Bangladesh shared only 0.2% in proportion to the total export of manpower to the Middle East. The Asian emigrants have increased from 17.7% in 1975 to 43.61% in 1977. 6.29 Table 6.4(d) shows that the rate of increase of manpower export from Bangladesh has been growing steadily. The rate of increase of manpower export from Bangladesh is greater than the rate of increase of the total export. The rates

-

191

-

of increase of manpower export from Bangladesh are 258% from 1976 to 1977 and 145% from 1977 to 1978 and the total volume of manpower export from all countries combined increased by 145% from 1975 to 1977. The data of 1975 for Bangladesh are not available for comparison. 6.30 Concluding Remarks. Since the economic activities will be increasing in the Middle East the time is ripe for Bangladesh to tap an increasing share in the demand for manpower from this region. But what the proportional share of Bangladeshi manpower will be in the potential demand of the Middle Eastern countries is rather difficult to predict accurately. In addition to conventional factors of manpower promotion in Bangladesh and promotion of friendly relations with the Arab countries, there is a genuine limitation due to the intra-Arab exchange of labour which is based upon intra-Arab factor cost differences and differences in the level of development and amenities of life and living. Given the fact that some of the Middle Eastern countries have made more progress than others in the field of education and training and have a large number of skilled people educated and trained abroad, they might trade on manpower to earn gain out of factor cost and standard of living differentials. Egypt alone can supply trained manpower in different skills to other Arab countries. In addition Egypt trains manpower from other Middle Eastern countries. Though Iraq, Yemen, Jordan, Syria, Lebanon, Tunisia, Oman, Algeria and Morocco heavily import various skills from both Arab countries and outside, a large proportion of their nationals work in other Arab countries. For example, the total volume of manpower imports of Saudi Arabia, Libya, Kuwait, Qatar, Bahrain and UAE in 1978 was 1,648,252, out of which 1,236,600 (75%) was supplied by the Arab countries. This phenomenon is observable from Table 6.4(b)I above. 6.31 The most serious impediment in Bangladesh appears to arise from the internal limitation of the system to increase the supply of the categories of skills that will be in demand abroad. The structure of demand is not stable but changes with the changing structure of development of the economy of the Middle East. These processes are irreversible and non-exchangeable. Under the existing physical, climatic and socio-economic conditions, programmes in most of the Arab countries probably had to choose a model where priority was given to construction of socioeconomic infrastructure like roads, bridges, highways, educational and technical institutions and other administrative buildings. This infrastructure model may take 5 to 10 years and this type of monolithic model is possible in Arab countries which are undeveloped and dependent upon a single resource, petroleum, which is exchanged for everything. Naturally, under the construction model, the construction workers both skilled and unskilled, some service workers, machine operators, drivers, etc. were needed. So to meet these requirements orientation in manpower training and education would be necessary to supply appropriate types of construction workers and construction engineers. But in the next stage the development model may shift to investment in direct productive activities, in industries and in agriculture. In this case the change in demand will be towards specialists in these fields and to meet this changing demand, the reorientation of the system of education and training will be called for in Bangladesh. This readjustment is not easy and may not be feasible economically and socially. Economic cost will involve capital investment in buildings, machinery and instruments and recurring expenditure will involve hiring trainers in this new field. Training the trainers will also be necessary first, thus a time factor is involved. However, this is of minor importance in a country like Bangladesh where there are supplies for a minimum number of trainers

- 192 -

in most fields, but the capital cost required will be a greater burden. 6.32 What will happen to the trained people already exported abroad to meet the demand for the construction model when they return home after a few years? The same question may be posed for all other stages in the changing structure of demand. The social cost appears to be more complicatdd adjustment and reorientation. Readjustment and reorientation also are constrained by scarcity of resources. How can the conflict and cost in this process be evaluated? Problems will be infinite; questions are difficult to answer and can not be dealt with in this study. 6.33 Though it is not within the scope of this project, it will be useful to make a study of comparative wage levels of different skills in a few selected countries which compete for labour exports. Thus we can see the comparative advantage of a few or all categories of skill among the labour exporting countries. Such a study might help in programming to increase the supply of the skills which are in high demand in the Arab countries. 6.34 It will be noticed in Table 6.4(c) above that the proportionate share of labour export from Bangladesh is one of the lowest among the Asian countries. The reason is that Bangladesh has turned to the issue of manpower export promotion much later than other Asian countries. Recently a larger proportion of Bangladeshi labourers are in demand because it is said that they are the cheapest to employ. But this increasing trend has been counter-balanced by the indiscriminate substandard recruitment by the recruiting agents, corruption among the Government officials and fraudulent practices by the emigrants under individual efforts. So the share in the supply largely depends on the non-economic factors arising from the qualities of the organisations and institutions handling various aspects of manpower promotion and manpower exports in Bangladesh. The extent to which Bangladesh will be able to expand the volume of manpower export will depend upon the future strength of supply of the most demanded skills on one hand and on the comparative strength in the competitive supply market on the other. A planned and concerted effort is therefore imperative for future expansion of manpower export from Bangladesh.

- 193 CHIPTER VII AINPOWMREXPORT FROMBANGLADESH

SOCIAL COST-BENEFIT ANALYSIS OF

A. Introduction

7.1 Bangladesh joined the Great Rush to the Middle East just about half way in the decade of the seventies, and since then both the annual outflow of migrants as well as the iniflow of remittance sent by them have growrn by leaps and bounds. From a meagre 6,087 in accelerated to 24,485 by 1979. The rate 1976, the rate of emigration of Tk.4.05 swelled at the same time from a trickle of remittance million per month in 1974 to a torrent of Tk.241 million in 1979. In fact total remittance in the fiscal year 1978-79 (amounting to Tk.2,437.8 million ) had a size of nearly one-fourth of the total export earnings of Bangladesh. Both the outflow of manpower and the inflow of remittance repercussions on various in this scale are bound to have significant sectors

essential

of

the

domestic

for formulating

economy.

An evaluation

a socially

of these

desirable

policy

consequences

is

of manpower export.

analysis, however, can encompass 7.2 A conventional cost-benefit of large-scale emigration. Quite only a part of the manifold consequences a few of its impacts on social welfare cannot be quantified adequately quantifiable consequences and some not at all. Thus, only the directly the loss of domestic production and the such as the flow of remittance, must of necessity form on savings and distribution impact of remittance the major ingredients of such an analysis. As we shall see, even these specially in a entities do not lend themselves to easy quantification, country like Bangladesh where the quality of record-keeping on various enthusiasm of manpower export does not quite match the national aspects for

this

phenomenon.

7.3 However, even before one sets about the task of quantification safe hypothesis that at least in of details, one may make the reasonably terms of the conventional ingredients of cost-benefit analysis, it is to the Middle 3ast hardly likely that migration of Bangladeshi nationals undesirable. The reason is simply that may prove in general to be socially is quite large given the on the one hand the gain in terms of remittance level of overseas wages; and on the other hand the loss in domestic is often much less than what it appears to be, owing to the production existence of huge unemployment and underemployment. Y'he impact distribution may not always be in the right direction, but this very likely to outweigh the direct gain of resources.

7.4

The practical

in a situation

(i)

like

usefulness this

lies

in

of a cost-benefit answering

the

analysis

following

on income is not

of emigration

questions:

among different categories of 'Lhat is the inter-ranking workers in terms of the social dividends emanating from their emigration ? Is there any specific type of manpower harmful ? whose loss to the country will be socially

- 194

-

(ii) What is the relative importanceof different elements of costs and benefits in determiningthe net present value of emigration? (iii) How large is the absolutemagnitude of the net present value derived from emigration? Is it likely to be cancelledout if social costs and benefits are defined in the broadest sense ? 7.5 Answers to these questionsare crucial for the fornulationof any enlightened policy of manpower export. The present exercise should be viewed as a contributiontowards that direction.In the next few sections,we try to quantify the various ingredientsrequired for a social cost-benefitanalysis and these are brought together in the final section for calculatingthe net presentvalue of emigration.

- 195 -

B. Level of Remittance 7.6 The most important direct benefit of emigration is the remittance sent home by the migrants working abroad. What we shall need for our analysis is the estimateof the per capita remittancesent by different categoriesof workers in a recent year. Unfortunately,there is no easy way of deriving such estimateson the basis of available data. As we shall see, there is enormous confusion regarding the total remittance itself, not to speak of its breakdown according to the skill-categories of workers. 7.7 Total remittance may be defined so as to include the remittance sent through official financial channels as well as the direct import of goods through the Wage Earners' Scheme (WES)j. But data on the use of remittancefor direct import is available only for the period from August, 1978 to September,1979. For this period, the ratio between financial remittanceand direct WEESimport is 79:21 (estimatedfrom Table 19, Appdx. to Ch.II). The annual series of total remittancecan be estimated by applying this blow-up factor on the level of financial remittance (see Table 7.1). There is, however,a problem for 1979 since data is not available for the October-Decemberperiod.For these months, monthly remittanceis assumedto be at the leveloftheaverage for the July-September period which is Tk.243 million (in cash and kind combined).The total remittancein 1979 is thus estimatedto be Tk.2916 million ./. Table 7.1 : ANNUAL FLOW OF REMITTANCE (in million Taka)

Year

Financial Remittance

1974(Sept.-Dec.) 1975 1976 1977 1978 1979

12.60 184.80 358.40 1236.60 1655.90 2504.00

Estimated total Remittance

Monthly Average

16.12 236.54 458.75 1582.90 2119.55 2916.00

4.03 19.71 38.23 131.91 176.63 243.00

Note: Based on Table 2.1, Ch.II. Annual figures are at the prevailingofficial exchangerates. The devaluationin mid-1975 changed the official exchange rate from US $ 1=Tk.8 to US $ 1 =Tk.15 (approximately). 7.8 The above figures relate to total remittancefrom all over the world, while our immediate interest is to estimate remittancefrom the Middle East. There are some officialfigures of remittanceby country of origin (see Table 20, Appdx. to Ch.II). j/

L~/

This would leave out the consumer durables brought in by the returning migrants under the personal baggage rules and more importantly, remittance in Ch.II. channels; see Ashraf Ali's discussion sent through illegal Although direct import under WTESwas stopped after August, 1979. we assume would have found its way through amount of remittance that an equivalent channel in the later months of 1979. the financial

- 196 -

But these do not provide the informationwe need, because it is well-known that a substantialpart of remittanceoriginatingfrom the Middle East is routed through western financial centres and there is no way of identifying the actual origin of remitted funds recorded against the names of these centres.It is therefore necessary to adopt an indirect approach to estimate the remittancefrom the Middle East. 7.9 During the period from 1976 to 1979, the emigrationof Bangladeshi workers to countries outside the Middle East has been negligiblecompared to emigrationto the Middle East. As such, the increase in remittance from all over the world between these two years can be explainedby two factors: (i) remittancesent by the new emigrantsin the Middle East and (ii) the rise in the level of remittancefrom the existing stock of Bangladeshi emigrantsall over the world in 1976, consequentupon the increase in their money wages jI.To eliminate the latter effect, we inflate the level of world remittancein 1976 by a factor of 1.45 which is the UK wages/earningsindex for July, 1979 with 1976 as the base. The adjustedfigure stands at Tk.706.5 million. Therefore,out of the total remittanceof Tk.2916 million in 1979, Tk.2209.5million is due to the increase in the net stock of migrants between 1976 and 1979, */ 7.10 According to official records, the flow of emigrantsfrom Bangladesh to the M1iddle East increased from 6.1 thousand in 1976 to 24.5 thousand in 1979 (see Chapter I). For estimating remittance per migrant in 1979, it should be borne in mind that not all of the 24.5 thousand new migrants in that year would possibly send remittance for the full year. This number should therefore be reduced to the 'migrant year equivalent' for matching against the annual flow of remittance. For this we make two assumptions : (i) that the volume of migration remained the same in each month of 1979, and (ii) that a new migrant starts remittingmoney with a lag of one month after leaving the home country. These two assumptions together imply that out of the total number of new migrants in 1979, only 46 percent should be counted as 'migrantyear equivalent'

j

One may think of yet another factor, namely, the incentiveeffect of the Wage Earners' Scheme. This scheme must have had a salutary effect on the remittance from the existing stock of emigrants even at given levels of earnings, as is evidenced by the sharp increase in the remittance flow after 1974, the year in which the Scheme was initiated. (A part of this increase is however nominal due to the devaluationof Taka in 1975: see Table 7.1). We have assumed that the time-lag in the response to the new incentive would not extend beyond two years so that the increase in remittance after 1976 was entirely due to the two factors mentioned in the text.

.g/

This would indicate that a very substantial proportion of remittance money originating from the Middle East is routed through the Western financial markets. Official records show that remittance from the Middle East constituted only about half of the total financial remittance during January-June, 1979. By using this low figure of remittance from the Middle East as shown in the official records, both Ashraf Ali (Ch.II) and Siddiqui (Ch.VIII) seriously underestimate the level of remittance per worker from the Middle East.

- 197 so far as remittance in that year is concerned,jj. Similarly,of the total number of migrants in 1976, 54 percent will contribute to the annual flow of remittanceonly after the end of that year. 7.11 Thus the 'effective'increase in the stock of migrants between the full years of 1976 and 1979 turns out to be about 56 thousand.It would be remembered that this figure is based on informationabout official gross out-migration, that is, it does not take into account either unofficial/ illegal migration or the return of migrants. It can however be taken to represent the net increase in the stock of Bangladeshi emigrants in the Middle East under the assumption that the unknown figure of unofficial (or illegal) migration is compensated by the number of returning migrants (we shall call it Assumption 1). Alternatively, we shall assume that the actual net migration in these years is 10 percent higher than the official figure for gross migration (Assumption 2). We thus have the following two alternativeestimates of the net 'effective'addition to the stock of Bangladeshi emigrants in the Middle East between the full years of 1976 and 1979: Assumption Assumption

1 2

Matching these figures against million, we have the following from the Middle East : Assumption Assumption

1 2

56.0 thousand 61.6 thousand.

:

: :

the estimated annual estimates of monthly

remittance remittance

of Tk.2209.5 per worker

Tk.3,545 Tk.3.223.

7.12 Alternative estimates of remittance can also be made using data from other sources. One such source is the household expenditure survey conducted by Rizwanul Islam (see Chapter III). He t,ives figures for monthly remittancereceived per family of migrants both for rural and urban areas. Within the rural and urban areas, random sampling was used so that the results can be taken to be representativefor each area. The national estimate of per family remittance can be derived by weighting the rural and urban figures in the ratio of 78:22; this ratio corresponds to the rural-urbanorigin of migrants as found in the BMET sample survey (ChapterI). Since the survey was conducted in mid-1979, the estimatedremittancecorrespondsto the migrants' earningslevel in that year. We thus have the following estimates of the average monthly remittancereceived per family in 1979: Rural Urban National

1/

Tk.4,036 Tk.3,927 Tk.4,013.

If N is the number of migrants in 1979,the number of 'migrantyear equivalent'is given by N i

N111+1 2+

12

+

....

+

1 12)i

=0.46N. 0

- 198 -

It may be noted, however, that the above exchange rate: prevailing under the Wage WES premium rate of 29 percent (average therefore deflate the above estimate of at a figure of Taka 3,111 at the official

value of remittance is at the Earnerst Scheme. By using the for January-July, 1979), we remittance per family to arrive exchange rate.

7. 13 It- may be noted at this stage that the migrant workers' earnings abroad vary considerably over different skill-categories so that the average level of remittance per worker is significantly affected by the skill distribution among migrants. Table 7.2 shows two separate estimates of the breakdown of emigrants by categories of skill, one from Rizwanul Islam's household survey data and the other from official macro-level data. The latter estiimate is taken from the Draft Second Five-Year Plan and is based on BMET records of migrants for the period from 1976 to 1979. Rizwanul Islam reports skillwise breakdown of emigrants for rural and urban areas separately. 'de have obtained the combined national estimates by weighting these in the ratio of 78:22 which is the proportion of rural-urban origin of migrants as found in the BMEITsample survey based on the data for 1977 and 1978 (see chapter I). Table 7.2 DISTRIBUTION OF EMIGRANTSACCORDINGTO SKILL CATEGORIES Estimate from Macro-data Professional Sub-professional and technical Skilled Semi-skilled and unskilled Unemployed or not classified Total

Estimate from Survey Data Rural Urban Weighted

5.6

0.4

20.8

4.7

5.1

31.3

3.4 51.7

11.7 36.4

5.1 48.5

58.0

31.8

29.9

31.4

Nil

13

Nil

10.3

100

100 2/

100 2/

(in percentage)

100

We now proceed to estimate remittance per worker according to skill 7.14 categories. The estimated level of migrants' savings abroad can be taken to represent the amount of potentially remittable funds. The estimates of actual of potential remittance. such estimates remittance can then be checked against Anwar Hossain has used the same data in Chapter I, but his skill classification is somewhat different from the one followed by the paramedics, Planning Commission and adopted by us. Thus, we include nurses, typists, clerks, etc., in the group we call technical and sub-professional of group. This we do on the consideration rather than in the professional for Also, we find it convenient in the levels of earnings. comparability and unskilled workers in the same our analysis to treat semi-skilled category.

2/

Total

does not add because

of rounding.

-

199

-

migrants during early 1979, Ashraf Based on a sample of 189 returning to the of migrants according the frequency distribution Ali reports range of monthly savings of the migrants in the Middle East (see Table 7.3 below). Table 7.3 DISTRIBUTIONOF MIGRANTS ACCORDING TO LEVEL OF MONTHLY SAVINGS ABROAD Monthly Savings(inTaka)

CumulativeFrequency

()

of Migrants

Below 2,000 2,000 - 4,000 4,000 - 6,000 6,000 - 8,000

bottom 6%

6%- 27%

"

27%

-

39%

8,000 -10,000

39% - 60% " 60% - 68%o

above 10,000

"

"

68%-IOO6p

Source: Table 36, Appendix to Ghapter II. From the above table, it is not possibleto estimatedirectly the average level of savings for the entire sample or according to the skill categories of workers. We have however attempted an indirect estimationof saving according to skill categoriesby using the technique of interpolation. Ashraf Ali reports the distributionof migrants in his sample according to skill categories (Table 32, Appendix to Chapter II). We may reasonablyassume that the skill level and the level of earnings (and, therefore,the level of savings)are positivelyrelated. On this assumption,the different skill categoriescorrespondto different ordinal saving groups as follows: /

Semi-skilled

and unskilled

Ordinal

saving

botton

70%o

Skilled Technical Professional

t ,t

groups

7% - 25% 25% - 53°, 53% - 100%

7.15 We can now find the median level of savings for each skill category by interpolation. Thus the savings level of the 16th from the bottom is the median savings level for skilled workers and similarly for other groups. The median saving of professionals(77th from the bottom) has to be estimated by extrapolation. For the first category(i.e., unskilled workers), it is difficult to apply this method and an estimatemade otherwise- for example, I may be noticed at once that Ali's sample is quite unrepresentativeso It far as the skillwisedistributionof migrants is concerned;but this should not be a problem for our estimationhere.

- 200

-

by taking a proportion of the savings of skilled workers - may be more appropriate. The estimated savings according to skill categories turns out to be as follows: Professional Sub-professionaland technical Skilled Semi-skilledand unskilled

Tk.12,250monthly Tk. 6,000 Tk. 2,950 Tk. 2,250

" " "

These savings are presumablyreportedat the official exchange rate (i.e., Tk.15.5 = US$ 1). Using the skill compositionof migrants as weights, the estimated savings abroad per migrant in the Middle East is Tk.3,200 per month. I/ However, there may be a downward bias in the amount of savings reported by the migrants particularly if a part of such savings is remitted through unofficial channels.(Ifso, the reported savings should correspond savings.) more to actual officialremittancethan to entire 7.16 Ashraf Ali also reports the distributionof migrants according to migrants' expenditureabroad (Table 35, Appendix to Chapter II). By using we can again estimatemigrants' similarmethod as in the case of savings, We can then look at the implied expenditure abroad skill-categorywise. of the migrants by adding their savings and expenditure monthly earnings low given all other alternative abroad. These turn out to be implausibly earnings. This seems to confirm our suspicion about migrants' information about the possible downward bias in the reported savings. An indirect on the basis of independent estimate of savings can now be attempted expenditure income abroad along with the estimated estimates of migrants' the range of salary as obtained above. Anwar Hossain reports of migrants which is used as the basis of negotiationsfor job contracts in the Middle East (Chapter I). We have considered the mid-point of this range for each skill category as the possible average of actual earnings. We have also the occupationwise salary structure in the Middle Eastern countries considered Taking all (Table 61, Appendix to Chapter VIII). as reported by Siddiqui in presented we arrive at the set of estimates these into consideration, Table 7.4. 2/ j See Table 7.2; the estimate based on macro-data. income and expenditurealone. Besides salary 2jWe are consideringhere-:monetary professionaland technicalworkers are providedfree accommodationand skilled and unskilled workers get both free accommodationand food; see Chapter I. Ashraf Ali's estimate of migrants expenditute presumablyexclude the above benefits in kind. Ali also reports the average income of his sample of migrants by s4ill category and the distributionof the migrants according to income groups;Table31 and 34, Appendixto Chapter II. These income levels are far too high (makinghis savingsand expenditurefigures combinedall the more inconsistentwith the reported income levels) and probably include the money value of benefits in kind. We have, however, igaored Ali'F all income figures in our estimates.

- 201 -

Table 7.4: ESTIMATED MONTHLY EXPENDITURE AND SAVINGS (POTENTIAL RE1aTTANCE) PER MIGRANT IN THE MID-)LE EAST. of Category Workers

Weight

__________ _ ._

Professional

Estimated Expenditure in Middle East

Assumed income in Middle East

Estimated Savings (Potential Remittance)

.056

6,350

18,600

12,250

.051 .313

2,750 1,800

10,000 6,000

7,250 4,200

.580

1,500

3,800

2,300

Sub-professional

and technical Skilled Semi-skilled and

unskilled All groups (weighted)

3,820

monthly

The estimates presented in the above table implies a savings rate varying from 65% to 72/ of cash income. 7.17 Bringing all the evidence together, we have the following estimates of monthly remittance per worker in the Middle East at the earnings level of 1979: Actual Remittance From Macro-data: Assumption 1 Assumption 2 From Survey data

Tk.3,545monthly Tk.3,223

"

Tk.3,136

Potential Remittance Lower Estimate Higher Estimate

Tk.3,220 Tk.3,820

"

"

7.18 All the above estimates are comfortably close to each other. There is thus little support from these estimates about the alleged differential between the potentially remittable fund and the actual remittance. In fact, it is the proximity rather than the differential between the two that is really intriguing. Of the two estimates of potential remittance, we would prefer the higher one, for otherwise there would be virtually no gap between the estimated potential and actual remittance to allow for some unofficial

- 202 -

transfer of funds and migrants' propensityto retain some savings abroad. On the side of actual remittance,the lower estimate obtained from the macro-leveldata seems more acceptablesince it is supported by evidence from the household survey data. j One would in fact expect the estimate based on household remittancedata to be higher than the one based on the official macro-date since the latter excludes any unofficialremittance.Here again, there maybea bias against disclosingunofficialmethods of remittanceso that the surveyed households may have divulged informationon official remittance only,

T The estimates of actual remittance (from both household survey data) exclude goods imported visiting migrants under the personal baggage to that extent lower than the total value of

macro-data and by returning or rules and are remittance.

- 203 -

C. Direct Cost of Emnirration: ProductivityLoss and Cost of Training

7.19 The most importantdirect cost of emigrationis the loss of domestic productionas a consequenceof loss of manpower. The issue of how to measure the loss of domestic productionis, however, fraught with a number of conceptualand empirical complexities.The measure of loss usually adopted varies depending on the type of worker emigrating. In the case of an unskilled labourer,the output foregonemay be assumed equal to the marginal product of labour in agriculture,in keeping with the premisesof the 'surpluslabour, dual economy' models. For skilled workers it is argued that only the cost of obtaininga replacement,and not the marginal product of the emigrating worker himself, should be counted as the relevant cost. j/ The argument runs as follows: as a skilled laboureremigrates,a replacementcan always be found from the pool of unemployed and underemployedworkers so that the marginal product of the emigratingworker is not lost to the society in the ultimate sense. The society,however, does incur some costs in so far as (i) the marginal output of the replacementworker in his earlier occupationis lost to the society, (ii) resources are used up in training the replacementto bring (iii) output is either lost or skill level,and him up to the desired reduced during the period of training. It is thus argued that these three elements of cost rather than the marginal product of the emigratingworker constitutethe direct cost of emigrationof a skilled worker. 7.20 But the validity of this argument depends on certain implicit labour market. If the assumptions about the nature of the particular skill formation usually takes place through a process of informal or On the departure valid. on-job training then the argument is certainly worker, the employer finds an unskilled replacement,who of the emigrating him up. The cost in this case is and then trains is always available, obviously the three costs of replacement enumerated above. But if training is obtained formally prior to employment, the 7. 21 argumentwill be valid only if training facilitiesare being consciously created to meet the anticipateddemand for replacementresulting from emigration.For only in this case one would say that emigrationgenerates forces of its own replacement,so that it is the cost of obtaining the replacementthat matters. But if the extent or nature of training is not affected by the existenceof emigration,then the cost activities It is a sunk cost of emigration. of training is no longer the relevant cost to the society which would have been incurred regardless of whether emigration took place or not. Would then the marginal product of the / See, for example,Guisinger, S., "A Framework for AssessingBenefits and Costs in InternationalLabour Migration",mimeo,1979 and Lucas, R., "InternationalMigration:Economic Causes, Consequences,Evaluation and Policies",Boston University,mimeo, 1979.

- 204 -

emigratingworker be the relevant cost here ? That again will depend on whether the market is demand-constrainedor supply-constrained.If demand is the dominant constraintso that a fair proportionof the trained people always remain unemployed (in additionto the usual frictionalunemployment),then migration does not entail any loss of output at all. Employmentof a replacementworker simply reduces the pool of the unemployed.As a result, the marginal output of the emigratingworker is recovered without curtailingoutput anywhere (and also the cost of training the replacementis in any case a sunk cost). So there is no cost at all. j But if on the other hand the market is supply-constrained,the replacementcan be obtained only by cutting down employmentand output elsewhere.The relevant cost here is obviously the marginal output of a worker in the concernedlabour market. 7. 22 Thus depending on the nature of the labour market, the direct cost of emigrationof a skilled worker can be any one of the following three: the marginal product of the emigratingworker, the cost of or simply nil. It should be remembered that in the replacement training cost is always the cost of replacement; sense the relevant an ultimate only its measure varies depending on the particularcharacteristicsof the labour market concerned.The relevant considerationsare (i) whether is on-job or formal, (ii) whether trainingfacilitiesare being training out of emigrationand of future demand arising developed in anticipation We or demand-constrained. (iii) whether the market is supply-constrained of labour market in Bangladesh for shall now look into the structure the direct cost of workers and try to estimate different skill-categories analysis. of their emigrationon the basis of the preceding Unskilled Workers The categoryof unskilled workers is taken here to include both 7.23 in and workers in the urban informal sector, labourers agricultural workers in the modern sector. The social addition to the unskilled measured by the is generally labourer cost of an unskilled opportunity which in turn is usually labour from agriculture cost of withdrawing economy. The first part of this assumed to be nil in a labour-surplus any demand for nexus whereby rural-urban is based on a presumed premise in the urban sector is assumed to be met labourer unskilled an additional eventuallyby migration of a rural worker to the urban area. The social cost of such migration,measured by the loss of output in agriculture,is believed to be zero because of the presumedexistence of surplus labour in agriculture. I/ The private valuation of such training can still be positive because of (i) the work-sharingtype of underemploymentamong the self-employed and (ii) the subsidisationof the training facilitiesby the government.

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7,24 But these premises are not universallyaccepted. In the specific case of Bangladesh at least one study has argued that surplus labour in Bangladesh agriculture is a purely seasonal phenomenon and any permanent withdrawal of labour is likely to reduce agricultural output. 21 As for the presumed rural-urban nexus, a recent study at the Boston Universitysuggests that this nexus, if it at all exists, is very weak at the moment because of a large overhangof migrants from rural areas already looking for jobs in the urban centres. 2 The implication of the. latter position is that the opportunity cost of an unskilled labourer in the urban sector cannot be measured by the loss of output in agriculture resulting from migration to the urban area; and the former position implies that even if the "loss of output in agriculture" were a valid measure, the value of this measure would not be zero. The thesis of zero opportunity cost of labour is thus doubly threatened. 7.25 But Muqtada's methodologyhas been questioned, and by using a differentmethodology,the same set of data has been shown to reveal a withdrawalsurplus. _3/Moreover, Ahmad 4/ and Masum ./ have shown in two independentstudies that underemploymentin Bangladeshagriculture representsa structuralsurplus although Masum's estimate of surplus is very much on the low side. The relative strength of evidence thus suggests that the opportunitycost of withdrawing labour from Bangladeshagriculture is indeed zero.

2

See Xuqtada, M., "The Seed-FertilizerTechnologyand Surplus Labour in Bangladesh Agriculture",The BangladeshDevelopmentStudies, October, 1975.

/ Farashuddin,M. et al.,

Shadow Prices for Bangladesh,Boston University,

1979. _/ Islam, R., and Rahman, R.I., "SurplusLabour in Bangladesh AgricultureA Comment", The Bangladesh Development Studies, Summer, 1978. 4/ Ahmed, I., "Enployment in Bangladesh - Problems and Prospects", published in The Economic Development of Bangladesh edited by Robinson, E.A.G., and Griffin, K., MaciI4illan, 1974. 5/ Xasum, M., "Unemploymentand Underemploymentin Agriculture":Case Study of Bangladesh,unpublishedPh.D. thesis, University of Delhi, 1977.

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7.26 The Boston study I/ would, however, argue that in the context of emigrationof an unskilled worker from the urban area, existence of surplus in agriculture is not a relevant factor in the present state of migrants' overhang in urban Bangladesh.We have two observationsto make regarding this thesis. First, although rural-urbanmigration did take place at an unprecedentedrate in the early seventies,there is no demographicevidence that the overhang created thereby still exerts a dampening effect on further migration. In fact, casual empiricismwould suggest the contrary. Secondly,even if one accepts the thesis of a weak rural-urbannexus and thus accepts the irrelevanceof surplus labour in agriculture,it does not follow that the opportunitycost of an urban unskilled. worker must be positive. The Boston study argues that the wage rate in the most competitivasegment of the urban informal sector should be accepted as the relevant opportunity cost. This seems to be a rather curious argument specially in view of the explicit recognition of the existence of migrants' overhang in the urban areas. Such an overhangwould normally be expected to imply work-sharing underemployment and very low earnings. The withdrawal of a worker under these conditions would only mean that the remaining workers will be more fully employed, thus preventing any loss of output to the society. The competitiveness of urban labour markets and the existence of a positive at all. Just as in the case of wage rate are not relevant considerations agriculture,what matters is whether there exists a withdrawablesurplus. It is difficult to give a definitiveanswer to this question,as the operation of the urban informal sector in Bangladeshis still very much a virgin territoryfor our researchers.However, if casual empiricismis any guide, we would assume that the labourers engaged in porteringin the urban Kutcha Bazar (which the Boston study indentifiesas the most competitivesegment of the urban labour market) are substantially underemployed.Thus regardlessof whether an unskilled worker is assumed to emigrate to the Middle East from the rural or urban area, we would assume that it does not entail any loss of domestic production. Semi-skilledWorkers 7.27 Semi-skilledworkers are demanded mostly in the formal sector, and their skill acquisition takes place largely through on-job training as an apprentice.Such workers are not in potentiallyshort supply, as it takes very little time for an unskilled labourerto acquire the status a large pool of unemployed and of a semi-skilledone 2/ and there exists of a semi-skilled underemployed unskilled labourers. The withdrawal worker would not therefore result in a direct loss of production.Only the cost of training(including the partial loss of output during the period of training)and the opportunitycost of unskilled labour would thus be the relevant cost of emigration.But the predominanceof on-job training implies that direct cost in training is virtually nil,

j

Farashuddin,M. et al., 2p. cit.

/

Half a year on the average according to a survey by the Boston study.

carried

out

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-

and the opportunity cost of unskilled labour has already been argued to be zero. Thus the only relevant cost is the partial loss of output during the period of training. 7.28 The Boston study referred to earlier has shown that apprentice workers in the industrialunits are paid 50% of the regular pay during the period of training.On this basis, it argues, and quite rightly so in our judgement,that the other 50%,is the privatevaluation of loss of output during this period.The annual equivalentof this indirectcost of training can be estimated by using an appropriatecapital recovery factor to take into account the fact that the cost will be amortized over the working lifetimeof the worker. j However, if we accept the assumptions of the Boston study that the period of apprenticeshipfor a semi-skilled laboureris less than a year and that his working lifetimeis about 35 years, the annual cost is likely to be quite negligible so that we can ignore it for our purpose. Skilled Workers 7.29 This category of workers also generally acquire their skill through the process of on-job training,although quite a few technical institutesare available to offer formal training.Relative to demand these trainingfacilitiesare not potentiallyin short supply, as is evidencedby the existence of widespreadunder-utilizedcapacity in the training institutes.2 Additionaldemand for such category of workers arising from emigrationto the Middle East can thus be met for quite some time without incurring any additionalcapital cost. Only the recurring costs of a few types would then be the cost of emigration to the extent that replacementsare obtained by encouragingadditionalenrolment in the formal training institutes. However, in view of the preponderanceof on-job training as the means of skill formation, we shall ignore the recurring costs of these institutes and equate the cost of a skilled wo±ker with the cost of acquiring such a worker through on-job training. (.30 By an argument analoguous to the one made in the context of semiskilled workers, the only relevant cost is the partial loss of output during the time taken by an apprenticeto become a skilled worker. According to the Boston Study, the period of apprenticeshipfor skilled workers is on the average 3 years during which time the worker is paid 50 percent less than the full salary in the first year, 40% less in the second year and

1/It is implicitlyassumed that after the emigratingworker returns home, there is no redundancyin the particularskills concerned so that all skilled workers including the returning migrants can be gainfully employed. Otherwise,the cost of training the replacementhas to be amortized only over the period during which the emigrating worker stays abroad. 2/ See the Report on Technical Education by the National Foundation for Research on Human Resource Development,Dacca, 1979.

-

208 -

300 less in the third year. Taking a monthly salary of Tk.850 for skilledworkers, L/ the total value of output forgone during the training period can be taken to be Tk.12,240.Applying a capital recovery factor of .07 (as estimated in the Boston study), the annual cost turns out to be Tk.857. Professionalsand Technicians 7. 31 Unlike the other categoriesof workers, professionalsand techniciansare generally recognisedto be in short supply relative to demand, and they acquire skill mostly through formal training.We have argued earlier that if training facilitiesare developedto meet anticipatedhigher demand arising from emigration,then the cost of expanding these facilitiesis the relevant cost of emigration.But this does not seem to be the case in Bangladeshbecause of the lack of articulationbetween the educational system and the labour market which leads to very long lags between changes in demand for and changes in productionof professionals.v As a result, additionaldemand for professionalsconfrontsvirtually zero elasticity of demand. Consequently, the opportunitycost of a professionalworker would be measured by his marginal product. For technical workers in certain occupations, there may be some imperfect substitutionif replacements can be found from among skilled workers. 3/ On the other hand, we should also take into account that there may exist complementarities among different skill categories of workers so that the emigration of a technical or professional worker may have a more significant impact on reduced output than the marginal product of the emigrant, narrowly defined, would convey. v 7.32 It is extremely difficult to come by any reasonable estimateof the marginal product of a professionalor technicalworker, however defined. In Bangladesh,most professionaland technicalworkers are employed either in the government or in the public corporate sector.

S

The estimate of the average monthly workers are discussed later.

wage for

different

categories

See Farashuddin,M., et al., op.cit. 3/ In this case, the loss of output due to imperfectsubstitution and the opportunitycost of the replacementworker in his original trade would together constitutethe cost of emigration.

/ See Guisinger,S., Qa.cit.

of

-

209 -

The scarcity factor in different professionsdoes not play an important role in the determination of salaries in the public sector. Also, considerable wage differentialsexist between the public and private sectors. At this stage, we can perhaps do no better than make some reasonable guesses. Thus we shall assume that the opportunity cost is 25 percent higher than the average earning level for professionals and 15 percent higher for sub-professionalsand technicians.The estimation of the average earning levels for different categories of workers will be discussedlater.

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D. ImPact of Remittance

on Income and Consumption

of Migrants'

Families

7.33 The difference between the value of remittance and the loss of domestic output is the net gain to the society resulting from emigration. This additional flow of resources can be either saved or consumed. If to be the there is a premium on savings in the economy, as seems likely resource flow that supports case in Bangladesh, the part of additional increased consumption should be assigned a lower social value relative to savings. Also, if different distributional weights are to be assigned to the consumption of different income groups, the social value of increased consumption would depend on the income distributional consequences of migration. To assess the social costs and benefits of of remittance money look at the effects migration, we have to therefore on the income and consumption levels of migrants' families. 1/ 7.34 To analyse the distributional consequences of migration, it is both before and families to know the income levels of migrants' important after migration. The household survey of Rizwanul Islam (Chapter III) can give us information on the income of migrants' families after migration, but there is no direct information on income before migration. Ashraf Ali reports the previous income level of his sample of returning migrants, but his estimates are unreliable for the skilled and unskilled categories (Table 31, Appendix to Chapter of workers because of too few observations for professional and technical II). We, however, accept Ali's figures to the level of on the average, workers and assume that these correspond, these for mid-1977. 2/ We arrive at the 1979 income levels by adjusting rate in the economy between 1977 15 percent general inflation an estimated and 1979. 7.35 For skilled and unskilled workers, the Bangladesh Bureau of reports the daily wage rates in agriculture, Statistics (BBS) regularly construction and different manufacturing industries. For July 1979, the labourer varies from Tk.420 to Tk.480 in most monthly wage of a skilled industries but is much higher for' engineering manufacturing industries, (Tk.716) and construction (Tk.937). For an unskilled labourer, the wage rate varies from Tk.330 to Tk.488 across the economy. of that the emigration It should be remembered, at this stage, workers may affect the income and consumption of other families as well by creating additional employment or by raising the wage the net level. This has to be taken into account while estimating increase in consumption due to emigration. Ali's survey the average,

was conducted reported that

in early 1979 and the respondents, they had been in the Middle East

on for

years. y1

See the different Bangladesh.

issues

of the Nlonthly Statistical

Bulletin

of

- 211 -

An alternativeestimate can be obtainedfrom the results of a 1976-77 survey conductedby the authors of the Boston study discussed earlier. After adjusting for the increase in the general wage level, j/ the estimatedmonthly wage in 1979 is Tk.777 and Tk.534 for a skilled and an unskilled labourerrespectively. The estimatesby the Boston study includes fringe benefitsand other benefits in kind while these are possiblyexcluded in the wage rates reported by the BBS. We have also consideredthat the better-paidmay have a higher chance of getting employmentabroad. Taking all this into account, we may finally accept in emigrants of prospective for monthly earnings figures the following Bangladesh (at the 1979 level of earnings): Previous Income of IMigrants Professional Sub-professionaland

Tk.2,360monthly

technical

Tk.1,450

tt

Skilled Semi-skilled

Tk. Tk.

850 500

" "

and unskilled

the total family income of prospective We now proceed to estimate Households may have more than one earning memaber migrants before migration. and technical and may have non-wage sources of income. For professiOnal groups, we assume that the migrants are the heads of respectivefamilies. The results of the 1976-77 household expendituresurvey of the Bangladesh Bureau of Statisticsshow the proportionof household income contributed by the head of the family in different household income groups. g/ We have consideredthis proportionfor the relevanthousehold income groups for both rural and urban areas to estimatethe percentagecontributionof prospectivemigrants to their family's income according to the skill categories. For skilled and unskilled workers, we have estimated a range of 7.36 family income.The lower estimateis obtainedin the same way as described above. The higher estimate is based on the assumptionthat the migrant can be any one of the earning members (and not necessarilythe head) of the family. In this case we have used the average number of earners per family (again in the appropriatehousehold income range and after appropriatelyweighting the rural and urban figures) to blow up the migrants' individualearning.

j

The BBS general wage index for July 1979 with 1976-77 as the base is used. v

See the StatisticalBook of Bangladesh, 1979.

-

212 -

-e thus have the following estimates of family income:

Previous Monthly Income of Migrants' at the 1979 Level of Earnings

Family

Tk.2,645 Tk.1,668

Professional and technical Sub-professional Skilled Semi-skilledand unskilled

Tk.977

- Tk.1,445

Tk.565 - Tk. 850

7.37 As for family income after migration,Rizwanul Islam's survey providesinformationfor various income groups, whereas we need information according to the various categoriesof workers. However, Islam's study also providesinformationon the proportionbetween the remittanceand non-remittancecomponents of income according to household income groups. We can apply this proportionbetween the two sources of income (for the relevant income groups) to our previouslyestimated remittanceper migrant to get an estimateof the total income of the migrant's family. For this exercise,we take the lower estimateof potentialremittance per worker as estimated from Ashraf Ali's survey findings. We have chosen the lower estimate of potentialremittancebecause the implied per worker remittance(weighted for all skill categories)is very close to our estimates of actual remittanceper worker. To consider the income of migrants' family, the remittancehas 7.38 to be first valued at the premium rate of exchange prevailingin the Wage Earners' Scheme market. Total family income correspondingto the level of remittancefor each skill-category of migrants is then estimated for both rural and urban households.Finally,the estimates of rural and urban family income for each category of migrants are weighted by the rural-urban proportionof such migrants to get the national estimates.These estimates are presentedin Table 7.5. Table 7.5 INCOMEOF MIGRANT'S FAMILYAFTERMIGRATION kTaka per month) Remittance at Remittance at Total Family Non-Remittance Income exchange 'WIESexchange official Professional Sub-professional and Technical Skilled Semi-skilled and unskilled

Income

rate.

rate

12,250

15,558

6,000 2,950

7,620 3,747

2,250

2,858

20,500

4,942

10,100 5,200

2,480 1,453

4,000

1,142

-

213 -

7.39 It is interesting to compare the above estimates of income of migrants' family after migration with our earlier estimates of income of the prospective migrant and his family before migration. It is clear that the value of remittance is many-fold higher than the migrant's previous income. Emigration thus has the capacity to create a class of new elites by causing migrants' families to jump several rungs of the income ladder all at a time. We may also notice the rather high level of families as shown in Table 7.5. non-remittance income of the migrants' If we assume that the previous earning of the emigrant is lost to the family after he emigrates, the non-remittance part of income should, in principle, correspond to the difference between the previous income of the emigrant and that of his family which we estimated earlier. That this (i) the generally held is not so may suggest any Or all of the following: background compared to other belief that migrants come from more affluent workers in the same skill-category; (ii) that the migrants' families have acquired income-yielding assets by using remittance; and (iii) that there bias for over-reporting of non-remittance income in is a systematic Rizwanul Islam's survey. Given the large discrepancy, probably all these factors are true to some extent. families, one also needs 7.40 Besides the income of emigrants' in the information on the average level of income (or consumption) weights. distributional economy in order to be able to assign appropriate The 1976-77 Household Expenditure Survey conducted by the Bangladesh Bureau on average household income in 1976-77 of Statistics provides information prices increase in GNP at current for rural and urban areas. The percentage to arrive at the between 1976-77 and 1978-79 is applied to these figures estimate of average household income in 1979 for rural and urban areas. estimate is derived by weighting the rural and urban figures The national of 9:1. Thus, for 1978-79, we have the following in the proportion estimates of average income per household: Rural : Urban : National:

Tk.844 monthly Tk.1,290 " Tk. 888 "

estimate of average household income in 1978-79 7. 41 An alternative ./ national income statistics. can be obtained directly fxom the official The two alternative estimates of average household income are compatible, methodology of estimating particularly if we consider the different income statistics agricultural output in the BBS Survey and in the national prices (the former uses retail prices which are higher than the harvest used by the latter). 2/This estimate turns out to be Tk.754 per month. An average family size of 5.6 is assumed on the basis 1976-77 Household Survey.

of the BBS

- 214 -

7. 42 It can be seen that even for the categories of unskilled workers, is more than 3 times larger than the the estimated amount of remittance previous average household income in the economy. Also, the estimated income of the migrant's family lies well above the average household income in the economy for all categoriesof migrants except unskilled workers.j/ We may also recall that our estimates of previous income of migrants' families are probablyon the lower side as indicated by Rizwanul Islam's survey findings.The weight of evidence thus supports the hypothesis that emigration is helping only the better-off familiesto move further up in the income scale. In contrast, the poorer householdsdo not appear to have benefitted much from emigration.

7. 43

The household income-expendituresurvey of RizwanulIslam provides informationon the savings behaviour of householdsreceiving remittances from abroad in comparisonwith householdsnot receiving such remittances. The data from the survey are available in respect of rural and urban households separately.The estimates of marginal and average savings rates presentedin Tables 7.6A-7.6D are based on the survey findingsreported by RizwanulIslam (see Chapter III). Table 7.6A SAVINGS OF RURAL HOUSEHOLDSRECEIVING REMITTANCES Household Income Group

:

Average Income

Average Savings

:

Average Savings Ratio

Marginal Savings Ratio R

1.16 -39

3

1,304 1,807

-180 403

--14 .22

4

2,480

667

.27

44

5 6

3,959 6,056

1,322 2,865

.33 .47

.74 .76

7 8

8,462 12,238

4,683 7,998

.55 .65

.88 .97

9

18,590

14,163

.76

2

1/Even for unskilled workers, our estimate of the previous income of the migrant's family would seem quite high in relationto the average household income. This is not surprisingsince in our estimate of unskilled workers' previousincome, we consideredthe wage earned by workers and also assumed that the workers were employed the better-paid for 30 days in a month. There is, however, considerableunderemployment and in the urban informal workers both in agriculture among unskilled sector in Bangladesh.

-

215 -

Table 7.6B REMITTANCES SAVINGS OF RURAL HOUSEHOLDS NOT RECEIVIIhG Household Monthly ' Income Group' Income

Monthly Average Savings Savings ' Ratio

Marginal Savings Ratio

1

634

2

1,235

-

629

-0.51

0.84

3

1,719

-

213

-0.12

0.86

4

2,472

21

0.09

0.31

5

3,814

588

0.15

0.42

6

5,663

766

0.14

0.10

-1,136

-1.79

Table 7.6C SAVINGS OF URBAN HOUSEHOLDSRECEIVING REMITTANCES Household Inc6me Group

Monthly Income

Monthly Savings

Average Savings Ratio

Marginal Savings Ratio

1 and 2

1,095

-632

-.57

3 and 4

2,158

-463

-. 21

5

3,851

1,187

.31

*97

6

5,862

2,018

*34

.41

7 and 8

10,029

3,970

.39

.47

.16

Table 7.6D SAVINGS OF URBAN HOUSEHOLDSNOT RECEIVING REMITTANCES Hcisehold ' Monthly Income Group ' Income

Monthly Savings

Average Savings , Marginal Savings Ratio Ratio

2 and 3

1,467

-526

-. 36

4 and 5

2,956

-302

-. 10

.15

6

5,370

1,308

.24

.66

7

8,333

2,093

.25

.26

8

12,769

3,382

.26

.29

Note: The household income groups correspondto those in Table 3.18, Ch.III. Some extreme income groups are omitted because these contain very few observations.In the case of urban households,the estimates for the combined income grGups are based on the simple arithmeticaverage of cell means in Table 3.18; The actual average for the combined income groups cannot be calculated because cell frequencies are not knowm.

- 216 -

7.44 A consistentand systematicpattern of savings behaviour comes out from the estimates presented in the above tables. Both average and marginal saviags rates are higher for remittance-receiving households than for other households. And this is true for both rural and urban The difference in the savings behaviour is quite samples of households. First, and can be explained by at least two factors. plausible behaviourally since remittanceincome is like windfall gains, householdsreceiving such remittancesare unlikely to considerthese as a permanentsource of income. Second, since the emigrantworker (usuallythe head of the family) is away, the total consumptionof the migrant's family is likely to be less than the consumption of other families at similar levels of household income. 7.45 Let us now considerthe net increasein both income and consumptionof the migrant's family resultingfrom emigration.(It may be rememberedthat we do not here take into account the migrant's own consumptionabroad or any part of his income retained abroad .) This can be better explained diagrammatically.In Fig. 7.1, the consumptioncurve for householdsreceiving remittancesis denoted by C1 and for other households by C2 . As such, these can be taken as the consumptioncurve of the migrant's family before and after migration. It may be noted that C1 indicates a higher value of both average and marginal saving rates comparedto C2. C2 Consumption

A/

Yl Figure 7.1

Y2

~~~~Income

Also, negative savings at lower income levels are implied by both the curves. Let us take Yl to representthe previous level of income of the migrant's family. The level of household consumption before emigration is thereforegiven by the point A on the higher consumptioncurve. After emigration,the income of the migrant's family is given by Y2; the net increase in the income of the migrant's family (that is, Y2 -y1 ) can be taken to be the value of the remittanceminus the loss of the emigrant's previousincome. The post-migrationlevel of consumptionis given by the point B on the lower consumption curve (since emigrationnot only increases income but also shifts the consumptioncurve of the migrant's family).

- 217 -

7.46

Followingthe above methodology,we can estimatethe net increase in the consumptionof the migrant*s family in the case of each skill categoriesof migrants. First, we take the pre-migration level of income of the migrant's family estimated earlier. The correspondingpre-migrationlevel of consumptionis estimatedby applying the savings rates as obtain in the case of householdsnot receiving remittances. (The amount of savings corresponding to given levels of income can be estimated from Table 7.6A-D by applying the method of is taken net increase in income of the migrant'sfamily interpolation.)The at the WES exchange rate as the difference between the value of remittance (see Table 7.5) and the estimated previous income of the migrant. The post-migrationlevel of income is obtained accordingly.The level of consumption corresponding to post-migration income is estimated by applying the savings rates of households receiving remittances (again by interpolation). The exercise is done for rural and urban households separately (since the savings estimates are different for rural and urban households). The are estimates of net increase in consumption for rural and urban households of rural-urban origin of migrants in then weighted by the proportion different skill categories.V/

Table7.7 ESTIMATED NET INCREASE IN INCOME AND CONSUMPTIONOF MIGRANT'S FAMILY Previous

Family

Net

, increase

Professional

(3) as a

in consumption,% of (2)

in income

Income

11)

Net increase

t

(2)

(3)

2,645

13,198

5,740

43

al and technical1,668

6,170

2,223

36

1,445

2,897

856

30

850

2,358

636

27

Sub-profession-

Skilled Semi-skilled

and uiskilled

It would appear from the above estimates that about 60% to 70o of the net increase in income is saved by emigrants'families.Itshould be remembered, that these implied marginal savings rates incorporatethe effect of the of migrants are as follows: j./The estimated rural-urban proportion - 7% :~93%; sub-professionalsand technicians - 52%o: 48%; professionals skilled - 84%: 16%; and semi-skilled and unskilled - 80% 20%. These estimates are based on Table 7.2,.

- 218 -

shift in the consumptioncurve due to emigrationas discussedearlier.2. 7. 47 The social value of savings out of remittedmoney would also depend on the way such savings are used. Savings are defined in Rizwanul Islam's study so as to include,besides monetary savings,expenditureon such items as consumerdurables, land purchase,constructionand improvementof houses, repayment of debt and investment in agriculture, industry or business. Of these items, expenditureon consumerdurables should be treated for our purposeas consumptionrather than investment. Expenditureon constructionand improvementof houses (particularly, constructionof luxury houses) should also be assigned a lower social value as compared to productiveinvestmentwhich contributeto the growth of employmentand labour productivityin the economy.The repayment of debt and expenditure on land purchaseare both transfer paymentsand the effect of such expenditurehas to be traced to the ultimate users of such funds. The use of remittance money to purchase land is likely to raise the price of land and benefit those who sell land. To the extent that the sellers of land increasetheir consumptionbecause of the higher price of land, a part of migrant's expenditureon land purchase is, in effect, converted into consumption.- As regards direct investmentby the migrant's family in agriculture or in other productivesectors of the economy, this may be assigned the same social value as uncommittedfundsfor investmentprovided such investmentdo not deviate from the sociallydesirable pattern of investmentallocation.Lastly, monetary savings in whatever form represent 'potential'funds for investmentin the current period; but if the accumulated funds are spent on consumption upon the return of the migrant, resourceswill be drawn away from investment in a future period. 7. 48 Expenditure by the migrants' families on some of the items discussed above can be estimated only very roughly on the basis of the survey findings reported by Rizwanual Islam. Table 7.8 shows the estimated average monthly expenditure by the remittance-receiving householdson land purchase,constructionand improvementof houses and purchase of consumer

j/ Althoughthese estimatesare derived from Rizwanul Islam's survey are findings,his own estimates of "savings out of remittances" derived from questions concerninghow much was spent on consumption from remittancemoney see Table 3.26. This is rather a doubtful methodology and can give misleading results particularlywhen there are considerabledissavingsat the pre-migrationlevels of income. 2/ If the sale of land is in the nature of distress sale by poorer households,the increase in the price of land will mean that less land has to be sold to meet the same level of subsistenceconsumption In this supply curve in the land market). (implyinga backward-sloping case, no increase in consumptiontakes place.

- 219 -

durables. Figures in parentheses show the expenditure on each item as percentageof the level of remittance (at the WES rate). J/ If we assume that at the pre-migrationlevel of income, the expenditure of the migrants' families on these items is negligible,the entire amount of expenditure shown in Table 7.8 can be taken to have resultedfrom remittances. Table 7.8 AVERAGE MONTHLY EXPENDITUREOF THE MIGRANT'S FAMILY ON LAND PURCHASE, HOUSE CONSTRUCTIONAND CONSUMERDURABLES

Land Purchase Professional Sub-professional and technical Skilled Semi-skilledand unskilled

Monthly Taka Expenditureon Consumer Durables House Construction

1,556

1,556

(1o%)

(10%)

(

622

4%)

991 (13%)

914 (12%)

(

229 3%)

600 (16%)

525 (14%)(2%

457 (16%)

400 (14%)

75

(

57 2%)

Note: Figures within parenthesesshow itemwise expenditureas a percentage of monthly remittance.

iI

Rizwanul Islam reports the amount of money spent on these items during the previous5 years; Table 3.22 - 3.24. The average expenditureper from these table.s for his rural and urban samples family can be estimated received Also, the average remittance households. of remittance-receiving from Tables 3.31 per family during the previous 5 years can be estimated can be made since the only very rough estimates - 3.33. (Unfortunately, latter tables do not include informationon all households).The expenditureon different items is then estimated as a percentageof remittancereceivedduring the previous5 years. These percentagesare estimated for each skill categoriesof workers by appropriatelyweighting the rural and urban estimates.The percentagesare then applied to the value of monthly remittanceto estimate the average monthly expenditure on the different items of expenditure. skill-categorywise

- 220 -

7.49

Besides affectingthe income and consumptionof migrants4 families the emigrationof workers may have other indirecteffects on income and consumptionin the economy.Unfortunately,not all such indirecteffects can be easily quantified.Some income effects are, however, implied by the very logic of our analysis of the forgone domestic output due to emigration.Thus, in the case of unskilled workers, we have assumed that although the migrant's previous earning is lost to his family, there is no correspondingloss of output in the economy.In this case, the previousincome of the migrant will probably go to one or more of the underemployedworkers who will now find more employment.By the same logic, however, it can be argued that there would be no rise in the wage rate consequentupon the emigrationof unskilled workers. In the case of emigrationof a skilled worker, the net income gain accruing to non-migrantworkers would be equal to the new income of the replacementworker. j/ For professionaland technicalworkers, we have argued that the loss of output would be higher than the income earned by such workers; this additionalloss would probablyaccrue to the owners of capital.

j/ The previousincome of the replacementworker will accrue to other unskilled wof'kersthrough higher employmentwhile the difference between the previousand the new income of the replacementworker will, of course, accrue to the replacementworker himself.

- 221 -

E. A Framework foriCost-BenefitAnalysis

7.50 The empirical significanceof the componentsof benefits and costs can now be brought together in a mumerical exercise to estimate the magnitude of the net present value (NPV) derived from emigration. In fact, severalvariants of such an exerciseare made possible by the existence of alternativeestimates of many of the importantvariables. We shall present here one such variant for each of the four categories of workers. The exercise is preliminaryin the sense that our knowledge about the value of the variables is not yet well-foundedand many of the indirect costs and benefits remain to be quantified. 7.51 The numerical estimate of NPV relates to the case of benefits and costs associatedwith the temporarymigration of a Bangladeshiworker to the Middle East. The net social benefit is estimated for each year of the emigrant'sstay abroad; the discountedsum of the net benefits over all the years representsthe NPV for emigration.The estimated NPV relates to the welfare impact within the political boundaries of the country, that is, it does not take into account overseas consumption of the emigrant. The numer#Are (i.e., the unit of account) is taken to be uncommitted public income measured in freely convertiblecurrency or "free foreign exchange". Uncommitted public income is taken here to represent resourcesfor public investmentand no distinctionis made between the value of investibleresourcesavailable to the public sector and to the private sector. 7.52 The estimatedvalue of the relevant variables and parametersare set in Table 7.9. The analysis of social costs and benefits corresponding to one year of the emigrant'sstay abroad is displayed in Table 7.10. The first item of cost is the forgone output due to emigration.The value of output forgone at domestic prices for each skill category of workers has already been discussedin a previoussection. On the basis of the estimated output conversionfactor, this value is convertedinto value at border prices (row 1, Table 7.10). 7.53 The increasedconsumptionreduces the availabilityof resources for investmentso that it enters as a cost. However, increased consumptionhas a social value depending on the relevant distributionweight. For reasons discussed earlier expenditureon consumption-likeinvestmentsuch as constructionof houses and purchaseof consumer durables is treated as equivalentto consumption.The net increase in the consumptionof the migrant's family is estimated accordingly (see Tables 7.7 and 7.8). In the case of skilled and unskilled categoriesof workers, we have to also take into account the increasedconsumptionof the families of workers not emigrating (see our discussion in the previous section).It is assumed that the marginal propensityto consume out of the increased income of non-migrant workers is .7. The entry in row 10 of Table 7.9 is estimated accordingly.The market value of increased consumptionis converted into value at border prices by using a consumptionconversionfactor (CCF) of .6.

- 222 Table 7.9 DATA FOR COST-BENEFIT ANALYSIS OF MIGRATION (Absolute values are annual flows at appropriate 1979 prices)

Professional

1. Forgone output (at domestic prices)

Tk.35,400

2. Output conversion factor

Category of Workers Sub-professional Skilled and technical

Tk.20,100

Semi-skilled and unskilled

Tk. 850

0

.77

.77

.77

.77

Tk.35,520

Tk.24,132

Tk.23,T60

Tk. 7,104

Tk. 4,826

Tk.4,632

Tk. 4,015

5. Net increase in consumption of migrant's family Tk.95,016 (at domestic users' prices)

Tk.40,392

Tk.17,472

Tk.13,116

3. Pre-migration consumption of migrant's family 4. Pre-migration consumption of the migrant

Tk.20,076

6. Consumption conversion factor

.6

.6

.6

.6

7. Distribution weight

.20

.32

.39

.46

8. Value of private consumption relative to the numeraire

.48

.48

.48

.48

9. Remittances (in US$) 10. Increased consumption of families of workers not migrating

9,800

4,800

2,360

0

0

Tk. 4,284

1,800

Tk.

4,200

- 223 -

Table 7.10 SOCIAL COSTS AND BENEFITS OF EMIGRATION (Annualflows in US$ at 1979 prices) Category of Workers Professional Sub-professional Skilled and technical

Semi-skilled and unskilled

Costs 1. Forgone output

1,817

1,027

2. Net increase in consumption of migrant's family

3,801

1,616

44

0

699

525

171

168

914

693

3. Increased consumptionof families of workers not migrating 4. Total social costs

0

0

5,618

2,643

9,800

4,800

Benefits

5. Remittances

2,360

1,800

6. Social value of (a) previousconsumption of the migrant (b) net increase in consumptionof migrant's family

45

49

58

59

608

414

218

193

0

0

137

134

(c) increased consumption of families of workers not migrating 7. Total social benefits 8. Net annual social benefits

10,453

5,263

2,773

2,186

4,835

2,620

1,859

-1,493

- 224 -

7.54 WAhenconsumptionis estimatedas an item of social benefit, an appropriatedistributionweight has to be assigned to it. Unlike most projectswhich effect income distributiononly marginally,the emigration of workersinvolvesa substantialchange in the income class of the emigrant'sfamily. It is not at all obvious whether the increased consumptionof emigrants'families should be assigned the distributionweight of their previous consumptionlevel or their new consumptionlevel. As a compromise,we shall use the average of the two distributionweights -one related to the pre-migrationlevel of consumptionand the other related to the post-migrationlevel of consumption.The distributionweight for the i-th category of migrants is estimated from the formula di = (c/ci) where n is the elasticityof marginal utility of consumption,c is the average consumptionper household in the economy and ci is the consumptionof the families of i-th category of migrants. The average consumption per household in the economy is taken to be equal to our earlier estimate of average income per household, that is, Taka 888 per month. The value of n is set at unity. 7.55 The market value of consumption (multiplied by weight) is expressed in terms of the numeraire by using which is entered in row 8 of Table 7.9. This conversion the value of private consumption at domestic prices( of consumption)relative to the numeraire. .3

the distribution a conversion factor factor measures at the average level

7.56 The net present value (NPV) is estimated by assuming that the migrant stays abroad for 4 years. The annual level of remittance is assumed to be the same as our lower estimate of potential remittance discussed earlier. The same flow of remittance and hence consumptionis assumed for each of the four years. A social discount rate of 8 per cent is assumed to calculatethe net present value. The estimated NPV's for each category of workers are shown in Table 7.11. Table 7.11 NET PRESENT VALUE OF EMIGRATION OF A WORKER FOR A FOUR-YEAR PERIOD

(in US$ at 1979 prices) Professional Sub-professionaland technical Skilled Semi-skilled All groups (weighted)

1

17,295 9,372 6,650 5,340 6,625

Its value is derived by assuming that the social discount rate is 8%, marginal productivityof capital is .10 and CCF is .6.

-

225 -

7.57 It is clear that the net present value from emigrationis not only positive but also quite large. The most importantfactor in attaining this level of net social benefits is the size of remittances, which are in turn related to the level of overseaswages. We have not however taken into account certain cost elements such as the psychological costs of separationfrom the family or the dislocationcosts arising from a mass re-entry of migrants. But the statisticalmagnitude of such cost componentswould hl e to be very large to reverse our finding of sizeablenet social gair from emigration.1/

2/

See Guisinger, S., op. cit.

-

226 -

CHAPTER VIII

POLICY RECOMMENDATIONS AND IMPLICATIONS FOR PROMOTING MANPOWEREXPORT 'FROM BANGLADESH

A.

Introduction

8.1 The rapid increase in the outflow of manpower from Bangladesh for short-term employment, from about 6,000 in 1976 to approximately 23,000 in 1978, is an indication of the opportunities that exist in the Middle Eastern countries and that were missed by a lack of definite and clearcut policy towards export of manpower until late 1975. Post-1975 measures helped eager job seekers and employers in search of new sources of cheap labour. Free service rendered by the Government machinery and the enthusiasm with which such services were rendered in initial years attracted unexpected numbers of employers. Compared with the similar flow of manpower from other Asian countries, Bangladesh, with its substantially increased outflow, still occupies one of the lowest positions and to maintain even this low position she is in need of rationalising, strengthening, and streamlining the administrative and legal measures followed thus far to promote employment of her workers abroad. Equally urgent appears to be the necessity to attend to the problems generated by a quick rise in the rate of outflow in a relatively short period. 8.2 Bangladesh will need to develop an image of a reliable source of quality manpower as opposed to that of a supplier of cheap labour. The confidence generated in foreign countries in the ability of the Government machinery to handle speedy and merit-based recruitment during 1976-78 will need to be established. A realistic picture of job prospects will have to be projected to the job seekers at home so as to prevent foreign employment opportunities from becoming a means of money making, support seeking and patronage distribution. From the position of a supplier of manpower, it will be essential to mature into that of a competitor for construction and other projects, if the flow of manpower is to be accelerated. 8.3 In the past it has been a question of taking advantage of the opportunities avjailable. In the 19 8 0s however, the competition will be more severe because of employers increasing preferrance for Far East Asian countries due to the demonstrated ability of these countries to take full responsibility for technologically complex projects in difficult working conditions. All supplying countries will have to improve upon their past performance not only because of mutual competition but also because of the emergence of the People's Republic of China as a potential competitor. 1/ It must be admitted that Bangladesh does not possess any natural advantage over her competitors. It is imperative therefore to develop and demonstrate superior management ability in meeting the manpower requirement of Middle Eastern and other countries.

1/

See Far

Eastern

Economic

Review,

30 November

1979.

- 227 -

8.4 This will mean a drastic change in the attitude and practice of employers in the public and private sectors in recruitment, training and utilisation of manpower for their establishments. The nation's trainable reserve must be utilised and the skills of the employed unskilled workers have to be upgraded. Administrative bottlenecks and lapses, reluctance to overcome temporary dislocation through anticipatory measures and the current apathy to the need for proper selection and training of manpower have to be removed.

8.5

Much more serious attention than has been paid hitherto, will be necessary to formulate and implement an appropriate policy in this regard. This will involve, among other things: (a)

Assessing the nature and characteristics of demand from abroad, including countries other than those in the Middle East.

(b)

Assessing the nature and characteristics of available manpower at home in the context of the foreign demand for the purpose of adopting a realistic target.

(c)

Identifying them with

(d)

Devising measures to employment abroad.

(e)

Promoting the demand for nationals, particularly those who are surplus to the national requirement, in the overseas employment market.

(f)

Tmplementing procedures for quick recruiting while ensuring the quality demanded by foreign employers.

(g)

Introducing educational programmes for prospective migrants.

(h)

Adopting countries

(i)

Strengthening measures to maximize use.

(j)

Promoting

(k)

Streamlining procedures departure and remittance

(1)

Sponsoring measures for resettlement on completion of contract.

(m)

Defining unambiguously the in promoting and processing

(n)

Instituting and study.

training a view to

and retraining attaining the prevent

measures and above target.

shortage

at

implementing

home while

promoting

adequate safeguards to ensure fair working conditions in of employment, including those for settlement of disputes.

welfare

measures

machinery

for

remittance

dependents

to redluce corrupt of savings.

to

and their

productive

of migrants. practices

returning

home

role of the private and public overseas employment.

sectors

keep

the

of migrants

in recruitment,

situation

under

constant

review

- 228

-

8.6

Whether or not Bangladesh should allow emigration employment opportunities arise is not the principal question. to whether Bangladesh has the determination and capability ister an appropriate emigration policy.

of her nationals when The question is formulate and admin-

8.7

Here an attempt is made to analyse institutional and other problems related to the export of manpower from Bangladesh, examine the future prospects and possibilities of manpower export and suggest policy measures required to promote foreign employment of Bangladeshi workers in the 1980-1985 period.

B.

Procedural Matters

8.8

Though a sharp difference in the attitude of the Government towards foreign employment before and after 1975 is clearly discernible, the reasons for such a substantial increase in manpower export from Bangladesh are not entirely the Government efforts. Other contributing factors are: (a)

Pre-independence migrants to Saudi Arabia and UAE and their continuous efforts to promote the foreign employment of their relations and friends.

(b)

The policy of the manpower importing the source of manpower supply.

(c)

enthusiasm Extraordinary foreign employment.

(d)

Ever increasing countries.

demand

Governments

of individual

for

manpower

job

in the

to

seekers

labour

diversify

to

secure

importing

8.9

Government measures contributed significantly to the increase in the flow of manpower, though such measures were not based on systematic assessments of the cost and benefit of such migration. This is not to suggest that the private agents exporting labour had any notion of cost and benefit themselves. The Government measures also suffered from the usual weaknesses of the public administrative machinery of a developing country. Some of the positive measures of the Government are the following: (a)

Posting labour attaches in Iran and Kuwait in 1976.

Saudi

Arabia,

Iraq,

Qatar,

(b)

Creation of the Bureau of Manpower, Employment and Training (EMrET)in 1976, to undertaken among other things, processing foreign labour demand, organising training for the foreign labour market, promotional campaigns for foreign employment, maintaining statistics, and regulating fair working standards for those processed by private recruiters.

(c)

facilities to private recruiters Providing available to exporters of commodities.

similar

to

Libya,

those

- 229 -

(d)

Simplification for foreign

of procedures employment.

for

issue

of passports

and exit

(e)

Signing bilateral promotional agreements between of Bangladesh and the Governments in Iran, Iraq,

(f)

Signing agency agreements between the Bureau of Manpower, flployment and Training and prominent foreign firms.

(g)

Sponsoring delegations of Government officials, private recruiters, representatives of the Telephone and Telegraph Department, Works and construction firms to the labour importing Departments, countries.

(h)

Extending invitations to and receiving heads of foreign labour ministries to visit Bangladesh.

(i)

Arranging additional funds for training in establishments and industries.

the Government and Libya.

(j) Achieving a workable degree of coordination between the principal Government agency (BMET) and other agencies like immigration and passport, airlines and civil aviation, Bangladesh Bank and foreign missions located in Dacca. 8.10

The major weaknesses in the measures undertaken by the Government are: (a)

Failure to present a realistic picture of job prospects to intended migrants, resulting in overcrowding of applicants in categories not in demand and non-availability of persons in categories in high demand.

(b)

Failure to adopt a uniform policy in the release of selected applicants or in forwarding applications of prospective migrants by major employers in the public and private sectors.

(c)

Failure to make available to the foreign recruiting tsams suitable oremises for conducting tests and interviews and failure to control the number of interviewees and their occasional unrulv behaviour, Darticularly during recruitment of unskilled workers.

(d)

Inadequate arrangements for maintenance of records of applicants.

(e)

Inadequate financial, manpower and physical resources at the disposal of the principal agency (EMET) dealing with the task.

(f)

Lack of uniform practice in respect to processing and handling of labour recruitment by foreign missions located in Bangladesh.

(g)

policy regarding the export of certain Absence of a clearcut skill categories like medical personnel, Power Board employees, etc. for foreign employment.

- 230 -

(h)

Absence of any safeguard against non-fulfillment of promised recruitment by foreign Enployers.

(i)

against Absence of any safeguard employers. obligations by foreign

(j)

Inadequate efforts towards procuring of skills.

(k)

Absence of briefing arrangements for prospective migrants.

non-fulfillment

demand

of contractual

for

surplus

categories

(1) Absence of institutional measures for welfare of migrants and their dependents., (m) Cumbersome recruiters.

procedures

to

regulate

the

activities

of the

private

(n)

Absence of clearcut demarcation of the roles to be played by the Ministry of Manpower, Bureau of Manpower, labour attaches, and foreign missions located in Bangladesh.

(o)

No firm guideline in respect to terms and conditions of foreign employment.

(p)

Corrupt ploy-ers

practices of middlemen, and Government officials.

private

recruiters,

foreign

em-

8.11 While the issue of whether or not to pursue an active foreign employment policy will be discussed later, it is necessary to consider improvements in the measures instituted in the immediate future to relieve problems created in namely harrassment of intended migrants, the gap between popular the process, and realities, and the bottlenecks in processing the prospective expectation migrants. The sudden increase in the number of overseas placements has given rise to a high expectation among all segments of society and it is widely believed that with the support of influential persons, greasing the palms of middlemen and officials, and persistent efforts, it is possible for any person to obtain a high-salaried job in the Middle East. Numerous instances of cheating, frustration, and harrassment have failed to dampen this spirit. The procedure of continuous registration and issuing interview cards from a master register and the practice of issuing interview cards to daily callers and persons recommended by influential of a booklet in Bengali persons have added to this belief. The belated publication detailing the essential information has not produced the desired result due to its limited circulation and because of conflicting practices and diverse press of the press and the public, it may be worthstatements. To keep the interest while for the Director General of RiET to hold fortnightly briefing sessions for the press, radio and television. The crucial procedural issue seems to be whether to advertise in the 8.12 press all vacancies (in which case unmanageable numbers of anulications are received) or to depend on the registrants at employment offices (in which case the processing of applicants is criticised being subject to manipulation by officials). Another issue of similar nature is how to provide equal opportunity to all eligible

- 231 -

aspirants, particularly those in the procedural matters are:

in the

outlying

districts.

Other

important

issues

(a)

How to pre-select the candidates for interviews, in what proportion to the number needed, by which agency and using what criteria.

(b)

How to organise systematic and smooth interviews and tests, how to avoid large crowds, and how to deal with sudden changes/ additions! deletions in the job list made by the employer or his representative.

(c)

How to arrange trouble-free departure of selected candidates, including arrangement for medical examination, issue of passports, visas, air tickets and emigration clearance.

8.13 Before discussing appropriate procedures it must be reiterated that the procedure should be well-documented, publicly announced and, once such announcement has been made it should be adhered to rigidly. Hence the procedure should not include provisions which are not likely to be followed strictly because of social and other types of pressure. It should also be adequate to meet the present target of the Government, namely to present candidates within 3 to 4 weeks of the receipt of lists of job openings. Some of the present procedural maladies can be removed or at least minimised if the premises of the office dealing with foreign employment is large and spacious, containing: (a)

Large waiting halls for general information, post-selection information, submission of applications and to obtain clearance for emigration purposes. In each of these halls bank-like counters could be opened to meet queries and deliver services.

(b)

An immigration and passport

(c)

A bank

(d)

An airline

office.

(e)

A separate

enclosure

(f)

A separate area for record rooms.

office.

office.

for

use

by recruiting

teams.

Needless to say, the present premises are inadequate and that without relaxing the ceiling for Government renting, premises of the required type will not be available. 8.14 Certain other procednuralmeasures can be.adopted for operational efficiency: (a)

The procedure for registration and pre-selection should be based entirely on merit. To judge the relative eligibility of applicants for skilled work, practical tests could be conducted. For the unskilled workers physical fitness required of a police constable or an army Jawan could be prescribed and tests conducted at the police or army headquarters. In all district offices one

- 232 -

week every month could be fixed for conducting tests, for the technical trades in the polytechnic institutes and for the unskilled trades in the police line. Applicants with recuired training, education and experience would appear at such tests. Particulars of those qualifying in the tests would be retained in the district offices and one copy sent to the central office of the Bureau. After conducting such tests for six months, the picture of exportable manpower will be available, and programmes for further training can be organised where needed. Meanwhile, those who have qualified in the tests in accordance with test grades could be interviewed. The list of trades mentioned in the Bengali booklet should be revised in line with the present pattern of demand and tests be limited to persons belonging only to these trades. Everyone qualifying in the test could be issued a card containing a photograph, signature, essential details, the dates and place of testing and the results of the tests. (b)

Every employer in the public and private sectors employing persons belonging to the eligible trades could be provided with subsidies for training replacements if 10% or more of the firm's employees have already left for employment abroad. In return, no employee should be denied the opportunity to compete for foreign employment.

(c)

A police contingent of appropriate size could be financed by the Ministry of Manpower to be placed at the disposal of the Director (Protocol) of BMET. The interview site should preferably be a training centre and the number of interviewees should be limited to not more than two per vacancy, if the testing arrangements can be followed.

(d)

As opposed to the present system of maintaining several copies of applications in envelopes, only the test results in a card form should be maintained by occupation. For every occupation there should be three registers, one containing cards awaiting interviews, the second for cards pre-selected for interviews, and the third for cards selected by the employer. Those rejected by the interviewer should go back to the register of cards awaiting interviews with a stamp showing that the applicant has been interviewed once. Those rejected twice should be sent back to the applicants. There should be four officers, two dealing with cards awaiting interviews and one each to deal with cards pre-selected for interviews and cards selected for departure. A full-time Deputy Director should be in charge and to this section Officer should be attached a Public Relations of tested cards daily. to announce the position

(e)

section of EMET should be in a separate The foreign employment location. The Director (Foreign Employment) of BVIFT should have financial authority to sanction expenditure up to Tk. 25,000 to deal with any aspect of recruitment. Similar authority to

- 233 -

expenditure up to Tk. 50,000 and up to Tk. 100,000 sanction should be delegated to the Director General of BMET and the machine, of the Ministry of Manpower. A telex Secretary public address system, a fixed space in one English and one Bengali newspaper, and a fixed five minute period of radio and television per week are some of the essential facilities needed by BME. The staffing of the foreign employment section should be reviewed and in view of the fluctuating nature of the workload, a system of hiring temporary executive assistants may be introduced to meet the extra workload. (f)

Foreign missions located in Bangladesh may not be allowed to deal with applicants directly, except when they are authorised by an employer to conduct interviews.

(g)

Employees of all categories should be allowed opportunities to compete, and departments of health, power, natural resources and similar organisations showing reluctance to release employees may be requested to undertake a manpower planning exercise to justify their position to an inter-ministerial body to be constituted for the purpose, or to a committee of the newly created National Council for Skill Development and Training.

(h) A non-refundable processing fee of US11 5 per person may be realised from all foreign employers including foreign missions. Firms not fulfilling contractual obligations may be blacklisted for future recruitment and such violations reported to the appropriate authorities in the home Government of the foreign firms. (i)

Besides unskilled labour, educated young persons of middle class families trainable for clerical, catering, public relations, teaching and executive jobs are available in large numbers. Attempts may be made to enter into contracts with British, European and American firms supplying such manpower to the Middle East countries to organise training prograrmes at hone at the cost of the willing trainees.

(j)

By utilising the Instructional Resources Preparations Unit (IRPU) of EMET slides, transparencies, charts and other audio-visual aids may be prepared for briefing the selected persons before their departure.

(k) The Presidential announcement to set up an office for welfare activities of the migrants should be followed and such a Directorate within the Bureau of Manpower, Employment and Training should be established to look after the problems of migrants and their dependents including those of remittance, utilisation of remittance, import of goods and problems of dependents left behind.

- 234 -

(1)

A regulation division within WMET may be set up with authority to prosecute, where necessary, licensed recruiters who violate rules and procedures. Renewal of licenses should be made contingent upon satisfactory performance. Unlicensed recruiters, except -the individual Bangladeshi nationals residing abroad who secure group visas, should be penalised heavily. Those securing group visas may be asked to deposit a non-refundable fee of US$ 5 per person and two sureties at home to ensure fulfillment of contractual obligations before they are permitted to proceed with recruitment. Licensed recruiters' only obligation should be to inform the Bureau of Manpower of the vacancies received and of the particulars of persons departing for foreign employment. No clearance of persons processed by licensed recruiters should be necessary from the Bureau of Emigration, and the regulation division of the Bureau should have authority to inspect the records of such recruiters as frequently as necessary, but not less than twice a year.

(m)

Guidelines relating to minimum wages and other conditions of foreign employment should be decided upon in consultation with private recruiters and this should be done in all cases including those with group visas. The present indicative guidelines used in YiET appear to be on the low side.

(n) Unusual sensitivity has been noticed in the past in respect to foreign employment in all segments of the society. Consequently the decision making process has been shifted upwards and routine matters like pre-selection of interviewees have occasionally been dealt with at very high levels. It is necessary to clearly demarcate the role of various agencies of the Ministry of Manpower. The suggested measures are: (i)

In matters of receiving vacancies, pre-selection for interviews, conducting interviews, arranging departures and other operational activities, Director (Foreign Enployment) should be the final decision making authority.

(ii)

Appeal against such decisions should rest with the Director General.

(iii)

Policy and procedure making should be the responsibility of the Secretary, Ministry of Manpower in consultation with the D.G. of BIMT.

(iy)

There should be quarterly reviews of activities in the Ministry by a formally constituted committee including representatives of other agencies like immigration, passport, banks, Biman, etc.

(v)

There should be an advisory comnittee consisting of, among others, ron-Governmental members, and presided over by a Minister, which should meet at least twice a year.

- 235

(vi)

(o)

-

Labour attaches should be under the administrative control of BMET and these posts should be borne on the strength of Th4ET.

To minimise corruption, the Emigration Act should be revised to provide for strict penal measures for: (i)

Middlemen: Severe penalty should be imposed on middlemen who pose as the contact persons with officials, foreigh employers, and others in a position to influence selection of job seekers.

(ii)

Officials: Very severe penalties should be provided for officials found to be encouraging middlemen as well as tampering with records or using official positions to favour a job seeker for money or for non-monitary considerations.

(iii)

Licensed recruiters: They should be dealt with in the same manner as officials.

(iv)

Foreign Employers: Foreign employers or their representatives or persons claiming to be in such positions, should also be penalised for accepting money or other favours from recruiters, job seekers or for making false promises to them.

(v)

Job seekers: Job seekers offering bribes either directly or through middlemen, or trying to influence decisions through illegal means, should be penalised by imprisonment.

(vi)

Others: Anyone making unfounded with the press, should be dealt job seekers.

(vii)

The revision of the trial of complaints, of EMET should have courts.

C.

allegations, including in the same manner as

Act should also provide for summary and the proposed regulation division powers of prosecution in such summary

Institutional Arrangements

8.15 The procedural reforms suggested in the previous section are based with the export regarding the institutional arrangemetns on certain assumptions of manpower from Bangladesh. It is accepted that some of the conclusions drawn changes in administrative arrangements which are open to argument, some involve may have implications in other sectors of the economy and some are based on value judgements and are matters of ideology. In this sense the suggestions are somerather than policy solutions. times more in the nature of policy indications

- 236 -

8.16

This section will discuss the role, function and responsibility of the Bureau of Manpower, Employment and Training in the export of manpower from Bangladesh and sDecificallv examine the Derformance of the private agents and of IMET. The discussion is expected to help in arriving at institutional arrangements which will not only maximize the manpower export and foreign exchange earnings but also minimize social costs arising out of corruption, malpractice, etc. and rationalize the system. 8.17 A case has often been made in favour of using agents rather than BMET, in the belief that private enterprise will inspire greater efforts to obtain Middle East jobs. There is something in this argument but all the experience in other countries suggests that agents will cream off the easy work and increase exploitation unless there are constraints placed on their activities. 8.18 Agents appear to be successful but in fact they are able to get few vacancies fram the Middle East by their own efforts. They are successful only in that they are able to get between eager job seekers and employers anxious to engage them. If agents merely charged for services rendered this situation would not cause too much anxiety, but in fact they are extracting the highest possible price for a job which is really not theirs to sell. The market in which they operate is prepared for them by publicity which encourages workers to take too optimistic a view of prospects so that they are prepared to raise large sums to pay for what they expegt to be a job, but which is only a ticket in a lottery for a job. The social evils in this system are such that it must be changed, not just for social reasons but because in the long run it will have an adverse economic effect on the market in which competition is intense. 8.19 There are mixed feelings about BMET and how much foreign employment it should deal with. The varied opinions seem to st6m from a mistrust of the civil service, its bureaucratic procedures and the temptation for civil servants to extract some price from the job seeker for the service given. 8.20 The work of EMET and of private agents will be examined later, but at this stage it ought to be said that both IMET and private agents are working in new territory with little experience; that the climate in which they work needs to be changed and that the opportunities in the Middle East are large_enough for both private and public agencies to operate. Competition is needed, but competition between private agencies will not bring .down the price of getting a job, and unless strict rules of conduct are enforced corruption will continue unabated. So the extra competition of BMET and some part of a Government department is needed to enforce the rules. 8.21 Before discussing the rules for market competition, the climate in which IMET works will be examined. In developing countries, when job vacancies are to be filled it can be said that -Who you know- is more important than 'What you know. In short, the sezurity of people is built upon the help given by relations and friends. Additionally it is accepted that people have little or no obligation to those outside this group. This system is adequate in the traditional society where the number of qualified people is greater than the number of jobs available, even though it contains elements of unfairness to the poor who have little influence and accept a measure of exploitation (possibly being unaware of it). With development come increasing skill demands and shortages of supply and then

- 237 'What you know' becomes more important than ~Whoyou know.' It then becomes important for attainments and skills to be measured and for workers to be selected by objective criteria. 'What you know' becomes more important and "Who you know' has to act in a different role. At present BIMT staff are plagued, from highest to lowest, by the 'Who you know' problem. All friends and relations, senior officers and others with status assume that they have the right to indicate in one way or another their interest in a job seeker. The result is that a straightforwar-d selection job occupies far more time than it ought to because of these interventions. The only sensible way to allow BMET to work is for the man of influence who wants to help a job seeker to write a small testimonial saying what he knows of the job seeker and why he considers him to be a worthy candidate. It is clear that EhET on its own cannot effect this change even though its senior officers have courage and integrity. People outside WMET cannot be expected to recognize the need for change and, in any event, will not accept the need for change if they see very senior people continuing in the present ways. The change has to start at the top and the intentions must be publicized. 8.22 Simultaneously with this change another is needed. It is commonly acthat he cepted that a person who gets a job in the Middle East is so fortunate ought to share his wealth. This is true and he does share with his extended family. But it is also accepted that anyone who can get between him and the job is entitled to extract his price. This is the equivalent of highway robbery. A toll on the highway is justified in that the toll taken is charged for help given, e.g. for the cost of a bridge which makes the journey easier. So there are legitimate fees for services rendered, charged on an approved scale. The illegitimate fees need to be eliminated. This will be difficult. To effect this change in other countries has also been difficult and those who have been through it know that there is no half wvay. It has to be laid down in regulations what fees are lawful, and no agent must charge a fee from a worker to submit his name for a vacancy or to obtain a job. A fee may be charged to an employer to obtain a qualified worker. But even then it is difficult for a public employment service to justify a fee; the benefit to the economy at large when an employer gets a suitable worker is full justification for a free employment service. 8.23 Things said in the previous paragraph are enshrined in an This implies that there is morality in the argument, but it is also sense. While there are some developed countries which make charges using the public employment service, none charge the worker for the service. The convention is the target for all ILO members.

ILO convention. sound economic to employers minimum

8.24 A prerequisite for the proper functioning of IMET is that Government at the highest level should state two things: (a)

Job seekers should not be charged a fee to be considered for a job or to obtain a job. Fees for other services would be prescribed.

(b)

Those who wish to support job seekers in their search for work should restrict their efforts to giving testimonials, and they should not intervene in the work of BMhT. As a corollary EMET can then enforce the rule that during office hours MEMT staff will not discuss foreign employment with anyone other than in their prescribed duties.

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If these things are stated, one director can be given the responsibility to select and submit a job seeker to the employer; his work can be checked by the Director General as necessary. Role

of IMET:

Information

8.25 The first need cf the Government in dealing with foreign employment is for labour market information and while this is available from a number of sources it must be focussed on HMET because that is the agency charged by the Government with this responsibility. So that policy makers can make sound decisions there is a need for activities in three areas. (a)

Interpreting demand. For this IMET needs access to information from the Middle East and other countries and which will come from surveys (e.g. by World Bank), from reports from labour attaches, from specific visits and from regular contacts with employers, agents and job seekers. By implication this means that IMhT must do placement work; without it the staff will never have the understanding of the market necessary to advise Government policy makers.

(b)

Assessing overall supply. The problem of assessing supply is one for professionals working in the market because supply is related to demand and the wage levels offered by employers. In some occupations supply is so abundant that no strict assessment is needed, e.g. for sweepers, agricultural labourers (when vacancies in these occupations occur-the main preoccupation for IMET is to avoid being overwhelmed by the volume of job seekers). But for the majority of occupations workers are employed in many small firms, or they are self-employed. So the only satisfactory way to measure supply is to register job seekers, assessing and testing their skills, and then maintaining a master register. Workers will register only if registration might lead to employment so BMETmust be able to submit workers to jobs either directly or through agents.

(c)

Assessing specific supply in key occupations. There is a group of occupations which are in short supply and there are key occupations on which a careful check is needed. Most frequently in Bangladesh these will be in public corporations, or in private enterprises which come under other ministries. To decide whether the country can release people in key occupations EMET will require information and in turn the establishments concerned will need to plan for release by training replacements.

8.26 In the out clearly: (a)

context

of the

information needs, three recommendations come

EMET must bring into use the Bangladesh Standard Classification of Occupation (which is now being prepared) as soon as possible. Not only should this be used by EMET and other ministries and Government organisations but by all concerned with training.

- 239 -

Only by the use of a standard classification system can the different needs of precise skills be integrated into a national plan for skill development.

Role

(b)

IMET must have staff operating in as large a sector of the market as possible to be able to understand it and guide the efforts to increase its penetration by Bangladesh.

(c)

Bangladesh employers in all sectors must be encouraged to develop manpower planning at the level of the firm. BhET has a part to play in this (e.g. in improving recruitment practices) and in encouraging the development of professional personnel managers.

of

BEET: Use of Information

8.27 Having amassed and used information in its own work and to assist Government policy makers, BMET has then to meet its other responsibilities. It has to give information to all sections of the public, including private agents, about opportunities overseas. As protector of migrants (and potential migrants) it has a duty to inform the public about the correct methods of doing business and about malpractice.

Role

(a)

Representatives of BMET should appear regularly on teleyision and be prepared to subject themselves to questions. The television time should not be paid for; employment is news and the time immediately before and after a programme of this kind is prime advertising time.

(b)

B4ET should be responsible for briefing visiting delegations and for protocol work except at the highest levels. To this end hMETneeds a hospitality fund; BMET is selling a worthwhile product and the profit will pay the advertising expenses.

(c)

Private agents should regard BEET as an ally in the information field with a free exchange of information about problems.

of

BMhT:

Placemenit

Work

8.28 That BMET is responsible for certain placement work is beyond question. If foreign governments wish to hire workers for their armed services, civil service, essential public services or public corporations, RAET is involved (other arms of Government would also be involved). It is clear that only rarely will a private agency be involved. BMET will be able to use its master register for this work. It would, however, be wrong to restrict the use of the BME'Tmaster register to this narrow range of foreign employers. The service offered to both the job seekers and the foreign employers should be similar to that provided for employment in Bangladesh. The minimum service to be offered by BMBT is to classify the jobs, to classify the job seekers and then to submit for the employers consideration a selection of job seekers in accordance with agreed criteria. This service should be offered to foreign employers and to private agents acting for foreign employers. There should be no charge for this minimum service, but IMET should be able to make charges for services other than

-

240 -

this, e.g. testing job applicants, making the actual selection for an employer, etc. Interviewing facilities should be offered freely by 4MET,even to agents interviewing job seekers submitted to them by EMET. But employers or agents who wish to have test facilities might be charged for them. BMhT can, of course waive charges in the interests of Bangladesh. 8.29 Similarly with job seekers IMET gives a minimum service freely but if it is c_nsidered desirable by the Government BMET could be permitted to levy charges for other services rendered. These charges would be similar to those charged by agencies. This is a framework for the activities of EMET. Before the detailed operations are considered, some consideration should be given to the role of agencies. The Role of Employment Agencies 8.30 In examining the problem of the exploitative nature of private enterprise agents and the malpractice of wrongdoers, the outside observer is puzzled by the apparent absence of voluntary agencies (or charities). For example, there seems to be a possibility of charitable agencies from Middle East countries recruiting orphans for employment. This absence, however, means that the onus for controlling the activities of agents falls squarely on the Government, and that under present law involves BMTT. 8.31 There should be a separation of functions. BMET to some extent competes with agents, and it would be wrong for a competitor to police the agents. Separation might be achieved by having one directorate responsible for the policing and another for the competition. This would, in most respects, be the best solution because whoever does the administrative control of the agents must have staff experienced in operating in the labour market. Much would depend on the attitude of the controlling director, and on the cooperation extended to agents by the other directorates in IM.ET. There is the added advantage that arguments could be resolved at Director General level with a right of appeal to the Ministry of Manpower. 8.32 The activities of agents cannot be controlled without a registration system. The first problem is that of the unregistered agent. This can be resolved by a form of temporary registration, but first what will be required of the agents must be considered. Agents are not required to recruit job seekers. Anvone who has a vacancy can find job seekers either through the BMIT master register, by newspaper, radio or television, or by some other form of advertising. People should therefore not be accepted for registration as employment agencies if all they are going to do is to create a list of job seekers. If they are unable to make a profit from this, the incentive for them to do so disappears. This type of agent should not be registered. Charging fees for this service should be illegal and it should also be illegal for unregistered employment agents to operate. Such a law would make it difficult for unscrupulous foreigners to operate in Bangladesh in this way, as the law would also apply to them. 8.33 That Bangladesh needs is job vacancies from Middle East countries. Registered employment agencies would have the task of getting these vacancies, preferably by direct contact with employers. The aim should be to get a number of agents to operate in a professional way, preferably to a large extent a selfdisciplining body of people working full time in that field. There would be

- 241 -

no objection to an employment agency operating in conjunction with a travel agency. Part time agents seeking quick profit by creaming off easy business would be gradually eliminated by a performance requirement, e.g. 50 vacancies filled per year. The performance required would be such as to guarantee an agent an adequate salary, exclusive of other activities, by the charging of a standard fee to the employer (e.g. the equivalent of one month's salary of the worker placed) to be paid when the worker has completed three months satisfactory service. 8.34 The main problem to deal with after registering agents for full time operation is how to deal with the very large number of vacancies which came to Bangladesh in informal ways, mainly from Bangladeshis already in the Middle East. There are two readymade solutions to this. Firstly, the person who has the vacancy can give it to a registered agent who will then be able to build up his contacts in the Middle East. Secondly, the employer can appoint, for example, a Bangladeshi coming from the Middle East as his representative. Confirmation of the genuine nature of this appointment will be required and this would best be given by a Bangladeshi labour attache, or a foreign embassy in Dacca. Once assured of the genuine nature of the vacancies the representative would be registered as a temporary agent by EMhT, which would give him assistance, if he needed it, to locate workers and to get workers to their employer. 8.35 Once the ground rules have been laid down it is a relatively straightforward task to write the conditions of registration and the rules for conduct of business. BMET, or the Ministry if it were responsible for registration, would encourage the formation of an Employment Agencies Association, would consult such an association and keep it informed about things affecting their work. In the best of situations the Agents Association would agree on rules of conduct and IMET would lay down which rules would be backed by force of law. 8.36 When an agent applies for registration he must agree to certain conditions. He should state the area in which he will operate. He may be an agent for certain Middle East employers, he may operate in specified countries or he may specialise in certain types of skill of occupations. The list of agents will be published by IMET periodically so that the public knows to whom they can turn; they will know that anyone not on the register should not be trusted. If they have doubts about a temporary agent a quick check with IMET will reassure them. Alternatively BMET can publish each month a list of approved temporary agents and their terms of reference. Other conditions for registration can be readily listed but one that exists at present should be reviewed; that is the financial performance bond. It is doubtful if this serves its purpose in the present situation where rewards from the highwayman type of operation are so great. Perhaps it should be replaced by a registration fee designed to cover the costs of the scheme including services to the agents by BMET. Indeed it might cover membership fees collected on behalf of the professional association if the association so wished. In time the annual fee could be negotiated between the Government and the Thployment Agents Association. 8.37 It will be seen fram the above sections that what is proposed is the balanced development of BhET and responsible private enterprise employment agencies. Both the public sector and the private sector need to develop the skills of recruitment and selection, including testing (and in the case of EMET

- 242

-

in training as well) based on the Bangladesh Standard Occupational Classification. The introduction of BSOC is essential for good employment and training services connected with employment at home and abroad; it is essential for manpower planning.

D.

Emigration P6licy

8.38

In a country with a very high density of population, a sluggish economic growth rate, and a huge labour surplus, encouraging emigration of the population is perhaps a necessity. If it is accepted as a rational approach then the major issue is whether Bangladesh is capable of administering an emigration policy without generating any adverse impact on the economy, in the context of the demand pattern now emerging in the world labour market, particularly in the Middle Eastern countries. The measures so far adopted by Bangladesh have ignored the demand potential in regions other than the Middle East. In the United States of America an estimated one million Asian workers are employed. Canada, a country with a low population growth rate, is in need of foreign manpower and the number of Indian and Pakistani workers in Canada is substantial. The UK, a traditional market for Bangladeshi manpower, is virtually closed to her now, though some Asian countries, notably the Philippines, have succeeded in securing substantial employment in the UK in recent years. 1/ In countries like Germany, Sweden and France, the number of non-national workers is significantly large and Bangladesh has made no effort to secure employment of her nationals in these countries. Australia and New Zealand also allow immigration and nearby South Pacific and Asian countries besides India and Sri Lanka have availed themselves of these facilities. Fiji, Papua New Guinea, Hong Kong, Japan, Singapore, Malaysia, and several countries in Africa including Nigeria, Tanzania, Liberia, Algeria and Zambia acquire contractual workers from abroad. Several South American countries, notably Brazil, also allow immigration. The present poverty level in Bangladesh, where close to 50% of the population live below the poverty line, and the likely continuation of a similar situation over the next twenty years, make the case for other countries to accept Bangladeshis as humanitarian and urgent as that of political refugees. This statement is made only to bring home the need for Bangladesh to give serious attention to emigration prospects in countries other than those in the Middle East. 8.39

The number

1979 is -very small these countries.

1/

of Bangladeshis

placed

abroad

from

January

when compared with the number of non-nationals

See Appendix to Chapter VIII, Table 58

1976

to

July

working

in

- 243 -

Table

Country

8.1: NON-NATIONALS WORKING IN MIDDLE EASTERN COUNTRIES Non-nationals

Bangladeshis

Bahrain (1976)

36,022

2,305

Kuwait (1975) Libya (1975) Oman (1975) Qatar (1975) SaudiArabia UAE (1975) Iran (1975) Iraq (1975) Others (1975)

213,195 331,632 69,630 52,800 772,912 254,500

5,743 4,795 6,546 5,346 6,138

Total

6.4 2.7 1.4 9.4 10.1

o.8

18,064

N.A.

1,6o6

N.A. N.A.

4,059

7.1

_

3,471 1/

1,730,691

Source:

Bangladeshis as % of Non-nationals

58,073

3.86

InternationalLabour Review, Vol. 118, No. 5, p. 592.

Also see Chapter I.

It will be seen that out of a total or more than 1.7 million non-nationalsin these countries, Bangladeshisaccount for less than 0.06million. Almost all other Asian countries encouragingforeign employmenthave more nationals in these countries. The number of workers from India, Pakistan, Korea, Philippinesand Taiwan are more and those from Thailand and Sri Lanka are about the same as that of Bangladesh. 8.40 The number sent abroad is also insignificant campared to the employment level in the national economy of Bangladesh and in its modern sector. Thployment level in establishments employing 20 or more workers was found to be 1,096,699 in the 1977 survey of the Bureau of Manpower, and if adjustments are made for employment in shops and commercial establishments covered by labour laws, the modern sector employment in 1978 would be around 1.5 million. Adding another 0.5 million Government employees to the modern sector employment level, the proportion of those securing jobs abroad is less than 3% of the employmentlevel in the modern sector. With hear stagnationof the economy during 1970-76 when GDP increasedat an average rate of only 1.6% and with the manufacturing sector registering an average growth rate of 1.8% per annum, there should be no seriously adverse impact on production due to withdrawal in more than three years of 3% of the employedpersons. This appears to be the situation in the manufacturing sector, where increase in output and profit, as apparent from press reports, has taken place during 1976-78, a period when outflow of manpower has accelerated. 8.41 Evidenceof an adverse impact in the Bangladesheconomymay therefore be sought in the services sector, includingpublic utilities. Adverse impact may also have been felt in manufacturingestablishmentsemployingworkers with narrow specialisations. Difficulties may have been experienced in recruiting persons for occupations requiring several years of training or for occupationis for which training facilities are not available in the country. The outflow may 1/

This

includes

2,485

departures

not shown by countries

in Chapter

I.

- 244 -

also have adversely affected the already low quality of workers in certain occupations. In the services sector health services appear to have suffered due to an outflow of 1,024 doctors and nurses during 1976-1979. Restrictions have been imposed on their outflow reducing the number going abroad from 608 in 1977 to

51 in the January-Juneperiod of 1979. The problem of medical manpower planning is a complex one, regardlessof whether such manpower is allowed to emigrate or not. In Bangladeshthere are more medical professionalsthan nurses. Effectiveness of hospital servicesis minimised due to this peculiar situationas well as due to the lack of medicine, equipment,and facilitiesfor clinicalinvestigation. Professionalpositions in rural hospitals or rural health centres and in preventive medical serviceslike school health services, are difficultto fill. The majority of the medical professionalsbeing civil servants, determinationof their pay, status and working conditionsin comparisonwith other civil servantshave posed serious problems involving strike threats by the medical professionalsin recent periods. On the other hand, the personnelpolicy of the Health Ministry in manning rural positions has remainedwhimsical. Medical professionalsdepend more on private practice outside the hospital or duty hours and resent and resist transfer to rural areas with poor prospects for private practice and poor facilitiesfor their children'seducation. Hence, the problem of recruitingmedical manpower cannot be ascribedto their outflow alone. It is necessaryto discuss the problems of manpower planning in the health sector at the nationallevel by an interministerial research group, with a view to adopting an appropriatehealth manpower policy. Meanwhile,the questionto be asked in the context of an emigration policy is: Can a ban on the foreign employmentof medical doctors provide any relief to the existingproblems, namely supplyingsuch manpower to rural areas or to preventive sectors,and low effectivenessof hospital services? Obviously, such a ban will prevent further deteriorationof this situation,though it is unlikely to effect any improvement. The remedy lies in finding alternativemeans for deliveringservices and not so much in the ban, which can be easily evaded. The situationpossibly calls for a restrictionin the shape of permittingan annual outflow of about 20% of the annual output, in all categoriesand a higher percentageof relativelysurplus categorieslike dentists, general practitioners, and paramedicalpersons other than nurses. The bulk of this 20% should be selected from those serving in rural hospitals. This issue may be decided in a committee of the National Council for Skill Development and Training recently establishedin the Ministry of Manpower. 8.42 Among public utilities, the electricity generation and distribution sector may have suffered to a larger extent than other sectors like transport, telephone,telegraph and postal services. 1,434 powerhousetechnicianshave secured employmentabroad during 1976 to June 1979, and the outflow has decreased from 532 in 1976 to 33 in the first half of 1979, presumablybecause of restrictions imposed. This sector also resemblesthe health sector insofar as professional and technical manpower are reluctant to work in the remote power generating stationslike Kaptai, Shahgi Bazar, etc., just as the medical manpower is reluctant to serve in rural hospitals and in preventive services. It has not been possible to devise an appropriatepersonnel policy involvingrotationbetween the preferred and dislikedpositions nor to utilise the substitutabilitypotential in full between degree level engineersand diploma level engineers qualifyingfrom university colleges and polytechnicinstitutionsrespectively. The technicians,whether formally or informallytrained, form the group of key personnel in this sector of

-

245 -

public utility and the possibility of utilising them in more responsible positions has not been taken into account either. Due to lack of serious attention to these aspects of manpower planning by the administrative agency, an attempt to train replacements in anticipation of future departure, did not succeed. Recent discussions among Power Development Board employees, as reported in the press, confirmed the impression that inefficiency in the delivery of services was more due to management inadequecies like wastage, corruption, lack of spare parts, equipment and materials and quality of managerial personnel than the departure of its employees for foreign employment. It appears feasible, at least conceptually, to allow unrestricted foreign employment of power generation and supply personnel, provided proper manpower planning techniques, including anticipatory replacement training, are applied by the management.

8.43 The same appears to be the situation in respect to postal and telecommunications personnel. Lack of consistency in the department's approach to the foreign employment of its employees became evident, when less than two months after the visit of a departmerntaldelegation to the Middle Eastern countries to promote foreign employment, the department refused, on grounds of scarcity, to release workers selected by recruiting teams from some of the countries visited. Similar inconsistencies have been noticed in other departments also. Even in the manufacturing sector, certain corporations claimed existence of surplus workers on their payroll only to change this position soon thereafter. In a few instances, like the Chittagong Steel Mills, management succeeded in sparing their employees for foreign employment by instituting a suitable replacement training programme. So is the case with, to a lesser degree, the Chemical and Fertiliser Corporation. Some establishments expressing the inability to release persons selected for foreign employment, refused to reabsorb returnee migrants in the same trade. Small establishments like those manufacturing specialised textile products suffered loss of production owing to their inability to organise replacement training. Due to a large number of vehicle drivers who have gone abroad, several training institutions sprang up in the private sector, though employers have found the quality of the replacement workers to be of a lower level. The same is the case with clerical workers, hotel and catering workers and construction workers. 1/ 8.44

Wage increase and the consequent increase in production cost is another possible area adversely affected by foreign employment. The situation in Bangladesh is different, however, as the bulk of the modern sector is under state control and wages are determined by expert commissions like the 1974 and 1978 commissions for Government employees, corporation employees and industrial workers. In the reports of these commissions there was no indication of the need to take into account the scarcity factor, in respect to any occupation. Other surveys have revealed large numbers of vacant posts, kept vacant as economy measures or due to procedural com-

plexities. The foreign employmentof about 60,000 workers during the recent past has brought to the limelight the callous manner in which employers in the public and private sectors have dealt with the recruitment and training of manpower for their establishments. Increasing attention now required in arrangement replacement training on an anticipatorybasis, is proving beyond the capacityof the Bangladeshi management in the public and private sector. Unless this capacity is developed, Bangladesh cannot adopt an emigration policy of any consequence, and the present situation is a reflection of this management inability. 1/

For a description

of the paradoxes in the labour market situation,see Chapter I.

- 246 -

8.45 Foreign demand being largely limited to persons with several years experience even in unskilled categories (dock labourers, for example), the process of skill formation and experience accumulation needs to be studied. In the construction sector, where the foreign demand is very high, skill formation takes place nostly outside the institutions. Masons, brick layers, shuttering carpenters, rod binders, pipe fitters, and plumbers are not trained in any institution in Bangladesh even now. The trainee begins as a helper with a master craftsman and learns his trade by observation and practice. The employer does not incur any training expenditure and the margin of profit in construction trade has been traditionally very high. The construction firms are not required to maintain more than a modest establishment as the work is usually sub-contracted and as the client (mostly Government institutions) takes responsibility for supplying construction materials, layout plan and other essential inputs. Any change from this position will obviously be resented by employers. This situation needs to be remedied irrespective of the foreign employment issue. The National Council for Skill Development and Training, set up as a precondition for a World Bank loan, may establish training committees for construction trades consisting of employers to organise training, testing, and certification. 8.46 In the manufacturing sector, the skill formation process is similar. A temporary substitute worker recruited at the gate, is appointed as helper after successive substitutions and becomes a semi-skilled worker through observation and practice. Similar arrangements as suggested for the construction trades are necessary whether foreign employment is a consideration for workers in manufacturing establishments or not. Since institutional training is mostly limited to basic engineering trades for maintenance and repairs, it should be dealt with seperately from the production trades. A survey of existing training, testing, and certification systems should be undertaken tradewise and a national system for each trade should be introduced with the help of employers, providing adequate scope for informally trained workers to take advantage of the opportunities. The system should be flexible enough to enable an unskilled worker to compete for professional examinations by stages. An unskilled worker's personality development should be a major aim of training in addition to training in higher skills.

8.47

Besides the above limitation imposed by management inadequacy the other constraints in adopting a bold emigration policy are: (a)

Capability of the Government machinery to project an image of Bangladesh as a reliable source of quality manpower.

(b)

Capability of the Government machinery to project a realistic picture of job prospects to national aspirants.

(c)

Capability of the Government machinery to ensure adoption of a meritbased recruitment process by public and private sector recruiting agencies.

(d)

Capability of the construction firms in the public and private sector to secure contracts abroad.

(e)

Expansion of air communications, banking, postal and telecommunications facilities between Bangladesh and the Middle East.

- 247 -

(f)

Capability of the Government machinery and the money market to offer adequate investment opportunities to small investors from amongst those working abroad.

(g)

Capability of the banking system to attract deposits from nationals working abroad.

(h)

Capability of the education and training system to respond to the needs of labour market which arise out of foreign employment.

Some of these issues have been discussed earlier. Depending on the seriousness of the administrative ministry and its capability to influence decisions of other agencies, an emigration policy can be formulated aiming at meeting a realistically predetermined proportion of the estimated foreign demand.

8.48 Anticipating the magnitude and characteristics of demand for expatriate workers remains a major problem despite numerous studies undertaken by agencies in recent periods. Then again, the portion of the estimated demand which can be secured by Bangladesh will depend almost entirely on the Bangladeshi management ability. However the following characteristics of demand pattern deserves mentioning:

8.49

(a)

Close to half the additional demand for expatriate workers in the Middle Eastern region will be generated in Saudi Arabia, with another one-fourth being generated in Libya and Iraq.

(b)

There will also be additional vacancies created by the manpower importing countries' policy to diversify the source of supply.

(c)

Many of these additional vacancies, including those arising out of replacement, will go to oriental countries like South Korea, Taiwarn,and the Philippines who have shown proven capability to undertake turnkey projects with their own capital, technology and manpower, thus relieving the employer of the troublesome tasks of recruitment and management of expatriate workers. Among South Asian countries, India has developed this capability both in the private and public sector, and Pakistan has begun to do so.

(d)

Bangladesh and Sri Lanka, with acute shortage of foreign exchange, and with a low technology base are not likely to be in a position to secure such turnkey projects, though they are likely to sueceed better in securing sub-contracts from the bidder which will require the establishment of a closer liaison with firms securing turnkey projects. Growth

rates

in the

non-national

component

of the

labour

force

which

varied from 4 to 15% in these countries in the recent past, do not reflect the actual recruitment made, as replacernXnt of expatriates on expiry of contract is not accounted for in the increase. For Bangladesh, potential recruitment is more relevant than potential increase in the size of the non-nationalsegment of the labour force. Assuming that during 1980-85,the magnitude of recruitmentin the Middle East will be the same as that of the 1975 level of employment of nonnationals, and assuming that Bangladesh will be able to secure 20% of the

- 248 -

vacancies in countries with which she had entered into bilateral agreements and 10% in the rest, the demand pattern emerges as shown in the Table below. Table

8.2:

Manpower Country

ESTIMATE OF POTENTIAL DEMANDFOR BANGLADESHIWORKERSCOUNTRYWISE

Importing

Estimated Demand for Manpower Import

Potential Share of Bangladesh

(1980-1985)

Bah-rain Kuwait Libya Oman Iraq

3,600

36,022 213,195

21,320

69,630

66,326 6,963

50,000+

10,000

331,632

Iran

1,606+ 5,280

N.A.

52,800

Qatar Saudi Arabia

772,912

77,291

UAE

254,500

25,450

All Countries

1,780,691

217,836

+Assumed on the basis of discussions with concerned officials. Source:

International Labour Review, Vol. 118,

No.

5, p. 592.

The above exercise, however unreliable, will point out that the present optimistic announcements by policy makers of adopting an annual target of 100,000 workers places abroad is unrealistic. To achieve the target implied in the above Table of securing 43,566 vacancies per year, efforts must be substantially strengthened, particularly in Saudi Arabia and Libya. It has to be noted that so far the number of Bangladeshi workers has not reached 10% of the non-nationals in any country except Qatar, and in Saudi Arabia the number is less than 1% (see Table 8.1). 8.50 The implications of the above target are obvious. Much greater attention will have to be paid to the labour market in Saudi Arabia, Libya, Kuwait and Iraq. In these countries annually 15,412, 13,265, 4,264 and 2,000 vacancies will need to be secured for Bangladeshi workers. Taking note of the fact that close to 60% of employment was secured by individual effort, travel facilities to those countries will need to be liberalised. Private construction firms will need to be provided with incentives and facilities to compete in the Middle East. Credit facilities in foreign exchange will be essential for such firms. An organisation in the pattern of the Korean Development Corporation which undertakes construction work in Middle Eastern countries as well as promotes private construction firms, may be set up. Private recruiters will need to be assisted in contacting foreign firms on a selective basis. 8.51 It is believed that the 1975 pattern of demand will continue during 1980-85, which means that 60% of the foreign employees needed will be unskilled workers possessing several years experience in the trade. 41t of the foreign workers including the unskilled experienced workers will be required in the construction sector. The policy implications of this is that training of workers now employed as helpers in construction, public utilities, transport and communications, ports,

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and in selected manufacturing industries like fertiliser plants, refineries, and in selected occupations like welder should be intensified including training in personality development. Training of unemployed persons for this purpose should be discontinued and if the Government intends to assist special groups like freedom fighters and nominees of the Youth Ministry, they should first be appointed as helpers in a local firm before being allowed to undergo training. In conclusion, it needs to be reiterated that much more serious attention will need to be paid by the Bangladesh management including the Government, employers, and the training institutions and the present impression widely held in Bangladesh that foreign employment opportunities can be had by everybody, irrespective of experience, physical fitness and skill should be dispensed with.

E.

Remittances

and Related

Issues

8.52 Though satisfaction is being expressed over the increase in remittance from a monthly average of Tk. 4.03 million in 1974 to Tk. 221.18 million in January-June 1979, what must be examined is whether it has been possible to attract the full potential of migrants' remittances to the official banking channel and if not, why not. It is also necessary to examine the impact such remittances have on the economy, mainly to find out whether it is possible to put such remittances to better use. An analysis of the remittance pattern will also indicate the quality of employment of Bangladeshis abroad.

8.53 An attempt to make any estimate of potential remittance will involve assumptions of an arbitrary nature in the absence of reliable figures. Assuming that the number of Bangladeshi workers in the Middle East as of December 1978 was 100,000, including the 44,503 sent abroad during 1976-78, and assuming their distribution between professional, skilled and unskilled (including semi-skilled) to be slightly different from that in Chapter I, and assuming that an amount of $400, $250, and $100 can be saved monthly by the professional, skilled and unskilled workers respectively, the potential monthly saving from the workers' earnings in the Middle East can be estimated at US$ 37 million as shown in the Table below. Table

8.3:

ESTIMATE OF THE POTENTIAL SAVINGS OF BANGLADESHI WORKERS ABROAD

Category Professional Skilled Unskilled All Categories. Add for UK and the Rest of the World 1/ All

Countries

Number of Bangladeshi Workers Abroad (Thousands)

7.5 42.8 49.7

Savings Potential Per Month (Thousand US$) 3,000

10,700 4,970

100.0

18,670

N.A.

19,670 37,34o

1/ See Chapter II. Migrants are estimated to be 93,521 in number and remittance from outside the Middle East is shown as more than 50% of the

total.

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Converted into Bangladesh currency at the rate of Tk. 15 to a Dollar, the potential remittance appears to be Tk. 560.1 million per month compared to the monthly

average

of Tk. 221.18 million

recorded

in January-June

1979.

Taking only the Middle

approximately half of the total Eastern countries, remittance from which constituted to during January-June 1979, the potential monthly remittance appears remittance from compared to a monthly average of Tk. 87.09million be Tk. 280.05 million 1979. If the assumed rate of countries recorded during January-June Middle Eastern remitthe potential remittance will be 20% more than the actual saving is halved, tance from all countries and 38% more than the actual remittance from the Middle East.

8.54

Actual remittance per worker from Middle Eastern countries appears to be much less than the possible savings. Calculating remittance per worker as Difference in average monthly remittance between 1979 and Number of vacancies secured during 1976-1978

R 1/ W

1977

The remittance per worker per month is the lowest from Oman (US$ 5) and the highest from Saudi Arabia (us$ 466). The average remittance per worker per month for the nine countries in the Middle East in US$ 100. Remittance from Bahrain, UAE is also low at US$ 28 and US$ 32. Oman, UAE and Bahrain are the three countries where most of the employment has been secured through individual efforts or on group visas. The low remittance, particularly from Oman, lends credence to the belief that a substantial proportion of the newcomers enter these countries either on very low paid jobs or with what is known as KFree No Objection Certificates.' These documents entitle a person to enter the country with an offer from an employer who is just lending his name against monetary considerations and who will release him from his imaginary employment after the job seeker has found a genuine job.

8.4:

Table

REMITTANCE PER WORKER BY COUNTRY (Per Month)

Country

Source:

Appendix

The above will need

Table to be

1/

See Appendix

Amount

Saudi Arabia Iraq

us$ 466 us$ 186

Iran Kuwait Libya

US$ 170 US$ 122 US$ 100

Qatar

us$ 60

UAE Bahrain Oman

US$ US$ US$

All

US$ 100

Countries Table

should further

Table

20 and Chapter indicate the strengthened.

59.

32 28 05

I.

countries

where

efforts

to

mobilise

savings

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8.55 Indications for countrywise intensification of efforts will also be available if the comparative position of these countries is considered, regarding the volume of remittance and remittance per worker and the number of workers as shown in the Table below. Table 8.5: COMPARATIVE POSITION OF RECEIVING COUNTRIES IN RESPECT TO REMITTANCE, NUMBER OF WORKERS AND REMITTANCE PER WORKER Position in Respect to Number of Workers+

Country

Position in Respect to Remittance (Jan.-June 1979)

Position in Respect to Remittance Per Worker

Bahrain Iran Iraq Kuwait Libya Oman

8 9 7 5 6 4

8 6 3 4 7 9

8 3 2 4 5 9

Qatar Saudi Arabia UAE

3 2 1

5 1 2

6 1 7

+Workers who secured employment during 1976-78. The above Table shows that remittance is not related to the number of workers alone. In UAE, where the number is largest, remittance is low possibly because of low quality of employment, successful operation by middlemen and remittance through unofficial channels, despite the presence of a Bangladeshi bank in the country. The same may be the case in Qatar. Oman appears to be a case of very low quality employment as no recruitment seems to have been made by the Government agency and no embassy of Bangladesh has been established there. Higher remittance per worker in Kuwait, Iran, and Iraq can be explained by the larger proportion of professional and skilled workers in that country. 1/ In Libya lower remittance may be due to the procedural difficulties and inadequate banking facilities between Libya and Bangladesh. The situation in Saudi Arabia seems to be more favourable and the reasons may be:

1/

(a)

A favourable proportion of professional, from Bangladesh in Saudi Arabia.

(b)

Satisfactory banking facilities between Saudi Arabia and Bangladesh.

(c)

Fewer middlemen operating and less use of unofficial channels.

(d)

Absence of home Government's restriction in remitting savings abroad.

(e)

Better organised labour wing of the Bangladesh Mission.

(f)

Successful negotiation of agency arrangements with non-national firms by the Government agency.

See Appendix Tables 59 and 60.

skilled

and unskilled

workers

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8.56 The embassy s labour wing in all countries may strengthen their promotional efforts to mobilise remittance through official channels, and Bangladeshi banks may further streamline their systems to ensure speedy receipt of remittances by beneficieries. One single policy measure likely to have a significant impact on the flow of remittance is the payment of 75% of the salary in foreign exchange to the worker's foreign currency account in Bangladesh. In one case, a non-national firm had made similar arrangements to the advantage of both the workers and the firm, with active cooperation of a leading Bangladeshi bank. The worker on pay day, would receive 25% of his salary and a document showing remittance of the remaining salary to his foreign currency account in Bangladesh. 8.57 Use of remittance for productive purposes is a complex problem. The potential saving of an unskilled Bangladeshi working abroad is about Tk. 24,000 per year, which is inadequate for any worthwhile investment by an individual. In the case of the professional categories, the potential saving per annum comes to Tk. 96,000 which is also inadequate. It is therefore not surprising that most of the workers purchase land after meeting their immediate consumption needs. The money market in Bangladesh is unable to offer any alternative source of investment capable of yielding returns at a rate higher than or comparable to the increase in the resale value of land. The opportunities of pooling small savings are limited in view of the lack of trust in such ventures. However, some of the following ideas may be considered in this context: (a)

Tax free import of X-ray machines, hospital equipment, and similar machines for the purpose of setting up private medical clinlics.

(b)

Similar import facilities for equipment required by automobile repair and maintenance workshops and general engineering workshops.

(c)

Similar facilities to set up small restaurants in Dacca and other major cities.

(d)

Facilities to set up shops and trading stores in urban areas.

(e)

Facilities for rural workshops to repair agricultural machinery, and for rural electrification and transport.

(f)

Facilities to enlist contractors with the Ministry of Work and the Ministry of Rural Development.

(g)

Facilities to set up cinema houses, cold storage and other projects.

What is being highlighted by the above suggestions is the need to work out possible areas of investment by the returnee migrants. A financial organisation in the private sector may be considered to finance these and other types of projects. The migrants can be shareholders in such an organisation besides borrowing for projects eligible for financing. 8.58 Equally complex is the problem of exploitation of migrants in respect to remittances. In addition to the measures suggested earlier, a post of Banking Attache may be considered in Bangladesh Missions in countries where the number of Bangladeshi workers has exceeded 5,000. South Korea has Construction Attaches in

- 253 -

some of their

8.59

missions

abroad

to help

the

Korean firms

secure

contracts.

Last but not least, the educationprograammefor adult workers needs to be strengthened significantly irrespective of the consideration for foreign employment. Most of the adult workers lack confidencein themselvesand allow middlemen to exploit them in almost all walks of life. It is not in the nature of an adult worker because of the traditionally inflated social value attached to literacy and white collar occupations, to luestion even impossible proposals coming from a seemingly educatedurban person. Though these workers do not lack common sense, they easily fall victim to false promises. An information and educationprogramme for adult workers appears,therefore, to be an urgent necessity to highlightthe exploitativenature of middlemen and to generate self-conlidence.

-

254 -

APPENDIX TO CHAPTER I LIST OF TBE COMPLETED TABLES Table

1:

Classification

of the Migrants

on the basis

of Major Occupational

Groups

Table 2: Breakdown of Major OccupationalGroups into Detailed Occupations Table 3: Percentile Breakdown of Migrants According to their Country of Migration Table 4: Breakdown of Migrants According to their Major OccupationalGrouping and Country of Migration Table 4A: Individual Countrywise

Breakdown of Major Occupations of Migrants

Table

5:

Breakdown of Major OccupationGroups on the Basis of their Period of Contract

Table

6:

Breakdown of Migrants of Migration

Table

7: Breakdown of Major Occupational

According

to their

Districts

Groups According

of Origin to District

and Country Origin

Table 8: District Breakdown of Migrants According to their Place of Origin and Religious Affiliation Table 9: Breakdown of Migrants on the Basis of Level of Education Table 10: Breakdown of Migrants According to their Level of Education and Major OccupationalGrouping Table 11: Breakdown of Major OccupationalGroups According to Country and Nature of Firms Table 12: Breakdown of Migrants According to their Period of Contractand Country of Migration Table

13: Distributionof Age of the Migrants

Table 14: Breakdown of Major Occupationsby Types of Skill Table 15: Classificationof each Trade by Types of Skill under Each Major Group of Occupation Table 16: Number of Persons Leaving to go Abroad on EmploymentDuring 1976, 1977, 1978

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SUMMARYOF THE TABLES

Table 1. This Table shows the occupationwise classification of the migrants. This Table is related to Table 2, Table 14 and Table 15. Out of the total number of migrants the highest number (71.75%) are in the major occupational group 07/08/09, prod-uction and related. workers including skilled. and unskilled constru.ction labour, followed by major group 05, service workers (8.37%) including catering workers and domestic servants. The major group 01, professional and technical migrants, constitutes only 7.98%. All other occupations such as clerical and related, sales, agriculture, fishery, etc., claim 6.80% of the migrants. Details of 5.1C%of the migrants were not available for study in this Table. Further description follows

in Table 2. Table 2. This Table shows the classification into detailed occupation of migrants under each major occupation. This Table is closely related to Table 1, Table 14,

and Table 15. Major Occupation Group 01 (professional, technical and related):

As in Table 1

these migrants are only 7.98%of the total. Seventy occupationshave been available in this group of occupations. As to the percentage distributionwithin this single group civil engineermigrants claim7.02% mechanical engineers 3.86%and electrical enginees's 2.1%. There is another category called t engineertclaiming 10.53%, further details were not available as to what kind of engineers they are. Nevertheless, engineers and thereby civil engineers seem to be in the highest demand among the professionalmigrants in the Middle East, followedby medical doctors (9.47%o), nurses (7.02%),accountants(4.91%)and teachers (2.81%). The demand for differenttechnical manpower constitutes 32.28% of the total number of migrants under the occupationgroup 01 (professional,technical and related). Major OccupationGroup 02 (managerialand.administrative): This occupationdoes not seem to be in any significantdemand. Major.OccupationGroup 03 (clericaland related workers): As in Table 1 these migrants are only 1.79% of the total. Twenty occupationshave been includedunder this m'ajorgroup. Clerks are in the highest demand (42.19%)followed, by store keepers (10.94o),typists (7.81%),office assistants (6.25%) and cashiers (4.69%). Remaining migrants (28.13%) are in 15 different trad.es under this group. Major Occupation Group 04 1.37% of the total. Four which salesmen make up the assistants (26.53%),sales

(sales workers): As in Table 1, these migrants are only occupations have been included in this major group of largest number of migrants (65.31%) followed by shop assistants (4.08%) and sales representatives (4.08%).

Major OccupationGroup 05 (serviceworkers): As in Table 1, these migrants are 8.37%of the total. Of the 37 trades under this occupation group, cooks are in great demand (42.81%)followedby sweepers (12.71%). Other trades having considerable demand are housekeepers (6.02%),waiters (4-35%), washermen (4.35%) and cleaners (4.01%). The remaining trades constitute25.75%o of this group of migrants.

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-

Major OccupationGroup 06 (agriculture,animal husbandry,forestryworkers, fishermen and hunters): As in Table 1, these migrants are 3.64% of the total. Five trades have been included under this major group of occupations, of which fishermen have the highest demahd (80.77%) followed by sailors (7.69%), farmers and gardeners (5-38%) each and cultivators less than 1%. Major OccupationGroup 07/08/09 (productionand related workers, transport equipment operatorsand labourers): As in Table 1, these migrants claim 71.75%oof the total. This is the single major labour exporting-groupof occupations. 175 trades have been available under this major group, 29.03% of which is unskilled labour followedby carpenters (9.52%),masons (9.09%o),electricians(7.84%), drivers (5.97%), mechanics/operators(3.86%),rod binders (2.26%),tailors (2.42%),agriculture labourers (2.26%)and welders (2.22%). The remainingmigrants (25.53%) are in 165 different trades in this group., Major OccupationGroup 10 (workersnot classifiedby occupation): As in Table 1, these migrants are less than 1% of the total. In this group the sample size is only 25 distributed over 8 different trades. Sufficient information of these trades is not known. As for the category tsupervisort it is not known what type of super visors they are. Job descriptions of 7 other unknown trades were also not available. However, the number of 1igrating workers in the group is not significant; so this will not limit the study. Table 3. This Table shows the countrywise migration of Bangladeshi workers to the Middle East. This Table is related to Table 4A. The maximum Bangladeshi labour (32.31%) seems to have migrated to UTA1 and then Saudi Arabia (12.57%), Oman (12.74%), Kuwait (9.13%),Libya (8.39%), Qatar (8.34%) and Iraq (7.31%); the remaining 9.21% have migrated to other countries under study. Table L. different

This Table shows the major occupationsof the workers migrating to the countries under study.

Major Group 01 (professional,technical and related): This group belongs to professionaland technicalmanpower. Out of the total migrants in this group Libya alone imported 32.28%, whereas the same country imported a very small number of other categoriesfrom Bangladesh (see Table 4A). Bangladeshiprofessionalsand techniciansare also wanted in Iraq, Saudi Arabia and UAE, each importing over 14% of the total export under this category. The remaining-24.20% migrated to different countries under study. Algeria, Nigeria and Malaysia imported no other category than professional and technical manpower from Bangladesh. Major Group 03 (clerical and related workers): This category from Bangladesh has the largest market in UAE (32.81%) followedby Oman (25%), Saudi Arabia (18.75%), Qatar (10.94%), Bahrain and Kuwait (4.69% each), and Iraq and Iran (1.56% each). Major Group 04 (sales workers): This category has maximum demand in UAE (61.22%) and Qatar (22.45%) followed by Oman (8.16%), Bahrain (6.12%) and Kuwait (2.04%). Major Group 05 (service workers): Four coun-tries mainly have imported this category in large numbers from Bangladesh, UAE (20.07%), Saudi Arabia (21 .24%), Oman (20.07%) and Kuwait (21 .07%). The other countries importing this category are Iran (7.02%), Bahrain (4.68%), Qatar (2.68fo) and Iraq, Libya, etc. (2.67%).

-

257

-

Major Group 06 (agricultureworkers, fishermen,etc.): Kuwait has imported 78.46% of the total export und.erthis category. The only other three countriesdemanding this category are UAE (2.85%), Libya (9.23%) and Oman (8.46%). Major Group 07/08/09 (productionandlrelated, transport equipment operator and labourer): The majority of manpower export from Bangladesh fell under this category and the largest number was exported to UAE (38.31%), Oman (13C07o%)and Saudi Arabia (12.31%). The remainingmigrants were scattered in almost equal numbers to all the countries under study with the exception of Nigeria which accommodated an insignificant number and Algeria and Malaysia who imported. none. Table 4A. This Table shows the migrants to each country pational groups. This Table is related to Table 3.

according

to major occu-

UAE: As in Table 3 UAE imported 32.31% of the total export of manpower from Banglad.esh.Out of the total number of Bangladeshiworkers in UAE 85105% are in major occupationgroup 07/08/09, productionand.related workers including construction labour and transport equipment workers. This is followed by service workers

(5.20%), professionals and technicians (3.55f), salesworkers(2.60%)and clerical

(1.82%);

the number of migrants

in agriculture

trades

is insignificant.

Saudi Arabia: As in Table 3 this country imported 12.5i% of Bangladeshtstotal number of migrants. Out of the total Banglad.eshi workers in Saudi Arabia 69.26% are in major occupationgroup 07/08/09,production and related workers, transport equipment and constructionlabour etc., followedby service workers (14.48%),

professional and technical(9.13%5and clerical(2.67%). There is no migrationto Saudi Arabia in major occupationgroups 02, 04 and 06, administrative,sales and agriculturerespectively. Libya: As in Table 3 Libya accommodated. 8.39% of the total export of manpower from Bangladesh. Out of the total Bangladeshmanpower in Libya 55% are in major occupationgroup 07/08/09, productionworkers, constructionlabour and transport equipmentworkers followedby professionaland technical (30.67%) and.agriculture (4%). There is no migration to Lib;raunder major occupations02, 03 and 04, administrative,clerical and sales respectively. Oman: As in Table 3. Oman is the second largest Bangladesh manpower importing country after UAE. The export of manpower to Oman is 12.74% of the total export from Bangladesh. Out of the total Bangladeshiworkers in Oman 73.63% are in major

occupation

07/08/09,

productionworkers,construction labourand transportequip-

ment operators,followedby service workers (13.19%),

(3.52%l), clerical(3.52%) and agriculture (2.42%).

professionaland technical

A smallnumberhas alsomigrated.

in sales trades. Qatar: As in Table 3, Qatar claims 8.34% of the total export of manpower from Bangladesh. Out of the total Bangladeshiworkers in Qatar 83.89% are in major occupation07/08/09, productionworker, constructionlabour and transport equip-

ment workers,followedby salesworkers(3.69%), serviceworkers.(2.68%), clerical (2.35%)

and professional (1.01%).

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Bahrain: As in Table 3, Bahrain claims 4.09% of the total export of manpower from Bangladesh. Out of the total Bangladeshiworkers in Bahrain 80.14% are in major occupation07/08/09,productionworkers, constructionlabour and transport equipment workers, followed. by service workers (9.59%),professionaland technical (4.79%), clerical and sales (2.05% each). There is no migrationto Bahrain in agriculture trades. Kuwait: As in Table 3, Kuwait claims 9.13% of the total export of manpower from Bangladesh. Out of the total number of Bangladeshiworkers in Kuwait 45.70% are in major occupationalgroup 07/08/09, prod-uction workers, constructionlabour and transport equipmentworkers, followedby agricultureworkers and.fishermen (31.29%), service workers (19.32%) and professionaland technical (1.84%). Clericaland sales workers have an insignificantnumber of migrants. Iraq: As in Table 3, Iraq claims 7.31% of the total export of manpower from Bangladesh. Out of the total Bangladeshiworkers in Iraq 53.26% are in major occupational group 07/08/09, prod.uction workers, construction labour and transport followed by professional and technical (16.09%), service workers equipment workers, to Iraq in administrative, (1.15%) and. clerical (0.38%). There is no migration sales and agriculture trad.es. Iran: As in Table 3, Iran claims 3.86% of the total manpower exported from Bangladesh. Out of the total number of Bangladeshiworkers in Iran 71.01% are in major occupation 07/08/09, production workers, construction labour and transport equipment workers, followed by service workers (15.22%), profesa;ional and technical (11.-59%); a small number of migrants exists.in clerical trades while no migration took place in administrative, sales and agriculture trad.es. Algeria,Nigeria and Malaysia: As in Table 3, these countries claim less than 1% each of the total export of manpower from Bangladesh. While Nigeria has a small number of migrants in production trades, all three countries imported only professional and technicalmanpower from Bangladesh. Table 5. This Table shows the period of employmentcontracts by major occupation. This Table is related to Table 12. 60.82% of the total number of migrants have 34.98% two years and only 4.10%o three years. contractsup to one year in d.uration, Only a small number (0.10%o) of the migrants have more than a three year contract. It is, however, interestingthat while most of the workers in group 07/08/09 (prod.uction workers, etc.) have contractsup to one year, the professionalsunder group 01 have contractsmostly up to two years. In group 01 37.11% have one year while in group 07/08/09 contracts,43.30% two year and 19.59% three year contras;ts 63.36% have one year contracts,33.42%otwo year and only 0.14% three year contracts. Contracts for all other occupationshave similar tendencies, i.e. short periods of one year. Table 6. This Table shows the breakdown of migrants by their home district in Bangladeshand the countries of migration. Chittagongdistrict: 28.19% of the total number of migrants from Bangladeshcomefrom this district. These workers are in all countriesunder this study except Algeria and Malaysia. Among the overseas Bangladeshi workers people from Chittagong are in number than other Bangladeshis in UAE (34.83%),Qatar (42.62%), greater Bahrain (27.40%) and.Oman (66.81%).

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Dacca district: 12.51% of the total number of migrants from Bangladeshcome from the districtof Dacca. These workers are in all the countriesunder this study. Among the overseas Bangladeshiworkers people from Dacca are greater in number than other Bangladeshisin Iran (42.03%), Iraq (26.82%), Saudi Arabia (18.49%). Libya (16%o) Algeria (5%), Nigeria (56.25%) and Malaysia (50%). Noakhali district: 7.03%o of the total number of migrants from Bangladesh come from this district. These workers are in all countriesunder this study except Algeria, Nigeria and Malaysia. Among the overseasBangladeshiworkers people from Noakhali are a large majority in all countries althoughthey do not have a single majority in any country. Sylhet: 11.25% of the total number of migrants from Bangladesh come from this district. These workers are in all countriesunder this study except Algeria. Among the overseas Bangladeshi workers people from Sylhet are greater in number than other Bangladeshis in Kuwait. Although they do not have a single majority in any other country, they are a large majority in all the countries. Comilla district: 2.83% of the total number of migrants from Bangladesh come from this district. These workers are in all countries under this study except Algeria, Nigeria and Malaysia. The overseasworkers from Comilla do not form a single majority in any country,but are present in large numbers in Iran (7.97%), Irac (6.90%), Saudi Arabia (4.90%) and Libya (5.33%). Other districts: None of the other districtshas yet been exporting any significant numbers of manpower. Table 7. This Table shows the home district (place of supply) of the migrant workers by their major occupationgroup. This Table is related to Table 6. Professionaland technicalmanpower (major group 01): 35.44% of the migrants in

this groupare fromDacca district,10.18% from Chittagong, 4.56% fromSylhet, 3.86%o from Noakhali and 3.16% from Comilla. The remaining districtshave insignificant numbers each while sSlaridpur district, ChittagongHill Tracts, Rajshahi, Pabna, Bogra, Jessore and Patuakhali have none. Clericaland related workers (major group 03):

The migrants are from Chittagong

(32.81%), Dacca (17.19%), Comilla(6.25%), Tangail(3.13%)and Noakhali(3.13%). There is no migrant in this group from the districts of Faridpur,Mymensingh, ChittagongHill Tracts, Rajshahi,Pabna, Bogra, Jessore, KUshtia Fnd Patuakbali. The other districtshave insignificantnumbers. Sales workers (major-group04):

The largest numbers of migrants are from Sylhet

(32.65%) followedby Chittagong(30.61%), Dacca and Noakhali(6.12% each). There is no migrant in the group from the districts of Tangail, ChittagongHill Tracts, Rajshahi, Pabna, Bogra, Rangpur, Kushtia, Barisal and Patuakhali. The remaining districtshave insignificantnumbers. Service workers (major group 05):

The largest numbers of migrants are from Dacca

district(29.10%) followedby Chittagong(18.73%), Sylhet(11.37%)and Noakhali (5.69%). There are no migrants in this group from the district of Tangail, Chittagong Hill Tracts, Rajshahi, Bogral Rangpur, Jessore, Kushtia and Patuakhali. The remaining districts have insignificant numbers of migrants.

- 260 -

Agricultureworkers, fishermen,etc. (major group 06): The largest numbers are from Chittagongdistrict (36.15%) followed by Noakhali (8.46%), Comilla (2.31%) and Sylhet (1.54%). No other district claims migrants under this occupationgroup. Production,transport and constructionworkers (major group 07/08/09): The largest numbers of migrants are from Chittagong (31.92%) followedby Sylhet (12.95%), Dacca (8.86%), Noakhali (7.37%) and Comilla (2.89%). All the other districts have insignificantnumbers of migrants under this occupationgroup. Table 7 may be'read districtwiseto get the percentage distributionof the total number of migrants in each district accordingto their occupation. Dacca district: This districthas migrants in all occupations: 35.44% in major group 01 (profestional and technical), 29.10%o in major group 05 (service workers), 17.19% in major group 03 (clerical), 8.86%o in major group O7/08/09 (production, transport and constructionworkers), and 6.12% in major group 04 (sales workers). There is no migrant under major group 02 (administrative) and major group 06 (agriculture,etc.) from this district. Faridpur district: This district has 2.04%o of the migrants under major group 04 (sales workers), 0.33% in major group 05 (serviceworkers), and 0.39% in major group 07/08/09 (production,etc.). This district does not send migrants under any other occupation. Tangail district: This districthas O.'C% of the migrants under major group 01 (professional,etc.), 3.13% in major group 03 (clerical),and 0.12% in major group 07/08/09 (production,etc.). Mymensingh district: This district has 1.49%o of the migrants under major group 01 (professional,etc.), 2.04% in major group 04 (sales workers), 0.3310 in major group 05 (serviceworkars) and 0.31% in major group 07/08/09 (production,etc.). Chittagongdistrict: This districthas migrants in all the occupations except group 02 (administrative, etc.). 36.15% of the migrants are in major group 06 (agriculture, fishermen, etc.), 32.81% in major group 03 (clerical, etc.), 31.92% in major group 07/08/09 (production, etc ) 30.61% in major group 04 (sales workers), 18.73% in major group 05 (serviceworkers ' 10.18o in major group 01 (professional, etc.). Comilla district: This districthas migrants in all the occupationsexcept major group 02 (administrative). There are 6.25% of the migrants in major group 03 (clerical),3.16% in major group 01 (professional),2.31% in major group 06 (agriculture,fishery, etc.), 2.89% in major group 07/08/09 (production,etc.), 2'.04% in major group 04 (sales workers), 1.34% in major group 05 (serviceworkers). Noakhali district: This districthas migrants in all occupationsexcept major group 02 (administrative). There are 8.46% of the migrants in major group 06 (agriculture,fishermen,etc.), 7.37% in major group 07/08/09 (production,etc.), 6.12% in major group 04 (sales workers), 5.69% in major group 05 (serviceworkers), 3.86% in major group 01 (professional,etc.) and 3.13% in major group 03 (clerical).

-

261

-

Sylhet d.istrict:This districthas migrants L.nall the occupationsexcept major group 02 (administrative). There are 32.65% of the migrants in major group 04 (sales workers), 12.95% in major group 07/08/09 (production,etc.), 11.37% in major group 05 (serviceworkars), 4.56% in major group 01 (professional),1.56% in major group 03 (clerical)and 1.54% in major group 06 (agriculture,etc.). ChittagongHill Tracts: This districthas 0.04% of the migrants in major group 07/08/09 (production,etc.). Rajshahi district: This districthas 1.05% o.fthe migrants in major group 01 (professional,etc.) and 0.08% in major group 07/08/09 (production,etc.). Pabna district: This districthas 0.33%oof the migrants in major group 05 (service workers) and 0.12% in major group 07/08/09 (production,etc.). Bogra district: This districthas 0.35% of the migrants in major group 01 (professional,etc.). Rangpur district: This districthas 2.11% of the migrants in major group 01 (professional,etc.), 1.56% in major group 03 (clerical),0.08% in major group 07/08/09 (production,etc.). Khulna district: This districthas 2.04/%of,the migrants in major group 04 (sales workers), 1.75% in major group 01 (professional,etc.), 1.56% in major group 03 (clerical),0.33% in major group 05 (serviceworkers), and 0.04% in major group 07/08/09 (production,etc.). Jessore district: This districthas 2.04/oof the migrants in major group 04 (salesworkers) and 0.23% in major group 07/08/09 (production,etc.). Kushtia district:This districthas 0.04%oof the migrants in major group 01/08/09 (prod.uction, etc.), and 0.35%oin major group 01 (production,etc.). Barisal district: This districthas migrants in all but two occupations. There are 1.56% of the migrants in major group 03 (clerical),1.54% in major group 06 (agriculture,etc.) 1.40% in major group 01 (professional),0.67% in major group 05 (serviceworkers3 and 0.35% in major group 07/08/09 (production,etc.). Patuakhali district: This districthas 0.04% of the migrants in major group 07/08/09 (production,etc.). Table 8. This Table shows the breakdown of the migrants according to the rural or urban source and their home district. Of the total number of migrants in the available sample 7.84% are rural while 22.16% are urban. Out of the total number of rural migrants Chittagong has the highest number (49.02%) followed by Sylhet (20%), Noakhali (13.54%, Dacca (8.58%), Comilla (5.2/4%) and. Barisal (1%). All the other districts have less than 1% of the rural migrants. Out of the total number of urban migrants, Dacca has the highest number (57.34%) followed by Chittagong (24.85%), Sylhet (8.41%);Noakhali, Khulna7 Rangpur and.Comilla have a little over 1% of the urban migrants each. All the other districts have less than 1% of the urban migrants.

- 262 -

This Table also shows the diktributionof migrants by their religion. There are 95.44% Muslim migrants; they are mostly from Chittagong (43.98%), Dacca (1,.99%), Sylhet (17.81%), Noakhali (11.36%) and Comilla (4.54%). There are 2.51% Hindu migrants, mostly from Chittagong (58.62%), Dacca and Sylhet districts (17.24% each). The remainingHind.umigrants (6.88%) come from Noakhali, Barisal, Comilla andlTangail. There are 1.90% Christianmigrants, they are from Dacca district (93.18%), Chittagong (4.64%) and-Barisal (2.27%). There are only 3 Buddhist migrants and they are from Chittagong. Table 9. This Table shows the ed.ucational qualificationsof the migrants. This Table is related to Table 10. 82.84% of the migrants are below secondary school level; 10.23% have second.ary school certificatesand higher second.ary certificates, 4.33% have Bachelor's d.egreesand 2.60% are post grad.uates.It may be noted.that the level of educationwas not available in most of the samples;so study has been made of a reduced sample. Further details on the educationallevel of migrants may be seen in Table 10. Table 10. This Table shows the levels of education of the migrants by their occupation groups. Profecsional and technical manpower (major group 01): In this group 38.18% of the migrants are graduateshaving Bachelor'sd.egrees,208Oare post graduates, 2G% are diploma holders and 3.64% are specialists. 9.09% are HSC and SSC level and the remaining 9.10% are below SSC level of education. Clerical and related workers (major group 03): In this group 28.57% have Bachelor's degrees, 28.57% HSC level, 28.57% SSC level and 14.29% have ed.ucation from class VI to VIII Sales workers (major group 04): 28.57% of the migrants in this group are between class I and V, 42.86% are between class VI and X, 14.29% HSC and 14.29% are post graduates. Service wo-kers (major group 05): The largest number of migrants (46.43%) in this categoryare between class VI and VIII followedby 35.71% between class I and.V, 10.71% between class IX and.X, 3.57% SSC, 1.79% HSC and.1.79% post graduates. Agricultureworkers, fishermen,etc. (major group 06): categoryhave education below SSC.

All the migrants in this

Production, transport and.constructionworkers (major group 07/08/09): Almost all the migrants (91.45%) in this categoryhave education levels below SSC. 5.87% have SSC and.2.20% have HSC, 0.24% have diploma and 0.24% have Bachelor's degrees. Table 11* This Table shows the distributionof migrants into public and private employment. The migrants are mostly in public employmentin Libya, Iraq, Malaysia, Algeria and.Nigeria while they are mostly in private employmentin all the remaining countries importing Bangladeshilabour.

- 263 -

Table 12. This Table shows the period of contract of the migrants in each ;ountry. This Table is related. to Table 5. Most of the countrieshave been hiring Bangladeshi manpower for a contractperiod.of one year; but migrants are wanted in Libya, Bahrain, Iraq, Iran, Nigeria and.Malaysia for a longer period, usually more than one year and less than three years. Table 13. This Table shows the distributionof age of the migrants. The migrants are mostly below 40 years of age (95.52%). The employers seem to prefer the age group between 20 and 30 years (64.10%). The number of migrants between age 15 and 19 years is 2.50%, between 31 and 40 years 28.92% and 41 years and above 4.48% There is no migrant worker below 15 years of age. Table 14. This Table shows the distributionof migrants by their skills within major occupations. Table 14A shows the distributionof the migrants into each skill and occupationas a percentageof the total migration from Bangladesh. These Tables are related to Table 1, Table 2, and Table 15. Professionalmanpower: Professionalmigrants are only 5.408% of the total manpower exportedfrom Bangladesh. This number is 67.72% of the total migrants within major group 01 (professionaland technical). Technicalmanpower: Technicalmigrants are only 2.58% of the total manpower exported from Bangladesh. This number is 32.28% of the total number of migrants within major group 01 (professionaland technical). Skilled workers: Skilled workers are 48.88%of the total manpower exported from Bangladesh. This number consistsof 0.53% clericalworkers (major group 03), 4.98%service workers (major group 05), 0.28% agriculture,fishery, etc. (major group 06), 42.67% production, transport and constructionworkers, etc. (major group

07/08/09). Semi-skilledworkers: Semi-skilledworkers are 10.53% of the total manpower exported from Bangladesh. This number consists of 1.18% clericalworkers (major group 03), 0.95%sales workers (major group 04), 1.3'%service workers (major group O5), 3.14% agriculture,fisheries,etc. (major group 06), 3.81% production, trFmnsport, constructionworkers (major group 07/08/09). Unskilled workers: Unskilled labour is 28.08% of th-etotal manpower exported from Bangladesh. This number consistsof 0.08% clericalworkers (major group 03), 0.42% sales workers (major group 04), 2.02% service workers (major group Os), 0.22% agriculture,fisheries,etc. (major group 06), 25.28% production,transport and constructionworkers (major group 07/08/09). Table 14A may be read occupation-wise to get the following percentagedistribution of the migrants into different skills. Major group 01 (professional,technical,etc.): In this group professionalmigrants

are 67.,2%and technical32.28%. Major group 03 (clericaland related): In this group skilled worker migrants are 29.69%, semi--killed65.62%oand unskilled 4.690o

- 264 Major group 04 (sales workers): and unskilled. 30.61%.

In this

group semi-.4killed

migrants

are 69.39%

Major group 05 (serviceworkers): In this group skilledworkers are 59.53%, semi-skilled 16.39% and unskilled. 24.08%. Major group 06 (agriculture, fishery, etc.): are 7.69%o semi-skilled 86.15% and unskilled

In this 6.15%.

group

skilled

worker migrants

Major group 07/08/09 (prod.uction, transport and.constructionworkers): In this group skilledworker migrants are 59.46%, semi-skilled. 5.31% and unskilled 35.23%. Table 15. This Table gives the name of available trades identifyingtheir respective skills and number of migrants. In the Table tPt stands for professional, IT' for technical, 'I' for skilled.,tSS' for semi-skilledand tUS' for unskilled. Table 16. This Table gives the number of persons who left Bangladesh for employment in -various Middle Eastern countriesin 1976, 1977 and. 1978. The Table provides the informationboth countrywiseand by skill classification.

-

Table 1:

Major Occupation

265 -

CLASSIFICATIONOF THE MIGRANTSON THE BASIS OF MAJOR OCCUPATIONAL GROUPS

Group

MAJORGROUP01 Professional,technical and related workers MAJOR GROUP 02 Administrative workers MAJOR GROUP03 Clerical MAJOR GROUP04 Sales MAJOR GROUP05 Service

Percentage of the Total

285

7.98

-

_

64

1.79

49

1.37

299

8.37

130

3.64

and managerial

and related

workers

workers workers

MAJOR GROUP06 Agriculture, animal husband.ry, forestry workers, fishermen and hunters MAJOR GROUP

Number of Migrants,

07/08/09

Production and related workers, transport equipment operators

and labourers MAJORGROUP10 Workers not class-fiable occupation Occupation

Total

not known

2,563

71.75

25

0. 70

by 157

4.40

3,572

100.00

- 266 -

Table 2: BREAKDOWN OF MAJOR OCCUPATIONALGROUPS ITTO DETAILED OCCUPATIONS MAJOR GROUP 01 (Professional,technical,and related)

IndependentOccupation Accountant Accountant cum Clerk Accounts Officer AdministrativeOfficer AgricultureEconomist Agriculture Teacher Architect Assistant Engineer Assistant Pharmacist Assistant Register (Y.edical)

Number of Migrants 14 1 1 1 1 1

Percentage of the Total 4.91

0.35 0.35 0.35 0.35 0.35

5

1.75

1

0.35

9 2

3.16 0.70

1

0-35

Civil Engineer Civil Foreman Concrete Engineer Concrete Technician ConstructionTechnician

20

7.02 1.05

1 1 1

0-35

Dental Surgeon Dentist Diploma Civil Engineer Doctor

2 1 1 27

0.70 0.35

Engineer Engineer (Air Conditioning) EngineeringTechnician ElectricalAircraft Technician ElectricalEngineer ElectricianEngineering/Technician Electrician Technician Executive

30 1 3 1 6 1

10.53

8

2.81

1

0.35

Field Engineer

2

0.7Qs

H-B Technician

1

0.35

Jet Engine Technician

1

0.35

Laboratory Lecturer

4 7

2.46

Biochemist

Technician

3

0.35

0.35

0.35 9-47 0.35 1.05

0.35 2.10

0.35

1.40

-

267 -

Table 2: CONTINUATION Number of Independent

cupatI

on

Manager Manager (Hotel) Master Grade 1

Migrants 2 1 1

Percentage of the

Total

0.70 0.35 0.35

Material Engineer MechanicalEngineer Mechanical Superintendent Mechanical Technician Medical Officer Medical Technician

1 11 1 1 8 3

0.35 3.86 0.35 0.35 2.81 1.05

Nurse

20

7.02

Overseer

1

0.35

Physician

3

1.05

Principal Water Engineer Professor

1 1

0.35 O.35

Radio Technician Radiographer

1 2

0.35 0.70

Sanitary Inspector Senior Draftsman Senior ElectricalEngineer Senior Engineer Soil Chemist Specialistin InternalMedicine Staff Foreman Sub-assistantEngineer SupervisorConstruction Surveyor Surveyor (Civil) Surveyor (Land)

2 1 1 1 1 1 1 1 2 14 1 1

0.70 0.35 0-35 0.35 0.35 0.35 0.35 0.35 0.70 4.91 0.35 0.35

Teacher Technical Assistant (Civil) Technician Technician (Dental) Technician (Power) Telephone Technician Translator Trawler Headmaster

4 1 25 1 2 1 2 1

2.81

3

1.05

285

100.00

Veterinarian Total

0.35 8.77 0.35 0.70 0.35 0.70 0.35

-

268 -

Table 2: BREAKDOWN OF MAJOR OCCUPATIONALGROUPS I1TO DETAILED OCCUPATIONS MAJOR GROUP 03 (Clericaland Related Workers)

IndependentOccupation

Number of Migrants

AccountsAssistant Assistant Storekeeper

1 1

1.56 1.56

Bus Boy

2

3.13

3 27 1

4.69 42.19 1.56

Office Assistant Office Supervisor

4 1

6.25 1.56

Peon

1

1.56

ReservationAssistant

1

1.56

Senior Clerk Senior Secretary Sorting Clerk Store Cashier Store Inspector Storekeeper

2 1 1 1 1 7

3.13 1.56 1.56 1.56 1.56 10.94

Telephone Operator Time Keeper Typist

1 2 5

1.56 3.13 7.81

64

100.00

Cashier Clerk Clerk (Postal)

Total

Percentage of the Total

- 269 -

Table 2:

BREAKDOWN OF MAJOROCCUPATIONAL GROUPSIN~TODETAILEDOCCUPATIONS MAJOR GROUP 04 (Sales Workers)

IndependentOccupation

Number of Migrants

Percentage of the Total 4.08 4.o8

Sales Assistant Sales Representative Salesman Shop Assistant

2 2 32 13

26.53

Total

49

100.00

65.31

- 270 -

Table

2:

BREAKDOWN OF MAJOROCCUPATIONAL GROUPSflTO DETAILEDOCCUPATIONS MAJOR GROUP05 (Service

Independent

Occupation

Attendient Ayah

Workers) Number of Migrants

Percentage of the Total

1

0.33 1.34

4

Bar Waiter Barber Bearer Boy Catering Catering Supervisor Cleaner Cook Cook Chief

1 2 2

0.33

0.67

3

0.67 1.00

1 1 12 128

0.33 0.33 4.01 42.81

3

1.00

Dishwasher

3

1.00

Governess

1

0.33

Hotel Bearer Hotel Boy Housekeeper

1 1 18

House Boy House Maid House Servant

2 1

0.33 0.33 6.02 1.34 1.34 0.67 0.33

Ironman

4

1.34

Hoouseman

4 4

Khadem

1

0.33

Kitchen Boy/Cook Helper Kitchen Helper

3 1

1.00 0.33

Laundry Boy Laundryman

2 1

0.67 0.33

Maid Servant

3

1.00

Office

1

0.33

1

0.33

7

2.34

Private

Bearer Servico

Room Boy

- 271 -

Table 2:

Independent

CONTflUATION

Occupation

Number of Migrants

Percentage of the Total

Servant

9

3.01

Service Sweeper

7 38

2.34 12.71

Waiter Wash Boy Washerman White Washer

13 1 13 1

Total

l/ Total does not add because of rounding.

299

4.35 0.33 4.35 0.33 100.00 _/

- 272 -

Table 2:

BREAKDOWN OF MAJOR OCCUPATIONAL GROUPS INTO DETAILED OCCUPATIONS

MAJOR GROUP 06 (Agriculture, Animal Husbandry, Forestry Workers, Fishermen and Hunters)

Independent Occupation Cultivator Farmer Fishing/Fisherman Fisherman/Sailor Gardener

Total

1/ Total does not add because of rounding.

Number of Migrants

Percentage of the Total

1

0.77

5.38 105 10

80.77 7.69

7

5.38

130

100.00 1/

- 273 -

Table

2:

BREAKDOWN OF MAJOR OCCUPATIONAL GROUPSIlNTODETAILEDOCCUPATIONS

MAJOR GROUP 07/08/09 (Productionand.Related Workers, Transport Equipment Operator,, and Labourers) Independent

Number of Migrants

Occupation

Agriculture Labour Air Cond.itioning and Refrigerating Aircraft/Airframe Aircraft Maintenance Mechanic Aluminium Fabricator Aluminium Fitter Aluminium Worker Armament (Defence) Armature Wind.er Assembly Operator (Weaving) Assistant Carpenter Assistant Denter AssistantDriller Assistant Fitter AssistantMason AssistantMechanic Assistant Painter Assistant Panel Beater Assistant Rod Binder Auto Electrician Baker Baker's Helper Bar Binder BatchingPlant Operator Bell Captain Binder (PrintingPress) Blacksmith Block Labour Block Maker Boiler Attendent Boilerman Book Binder Brick Maker BulldozerOperator cum Driver Butcher Cable Jointer Car Denter Car Electrician Car Mechanic Carpenter CarpenterHelper Carpet Fitter

Mechanic

Percentage of the Total

58 10 1 1 1 2 1 1 1 2 1 1 1 4 1 4 1 1 1 5

2.26 0.39 0.04 0.04 0.04 0.08 0.04 0.04 0.04 0.08 0.04 0.04 0.04 0.16 0.04 0.16 0.04 0.04 0.04 0.19

4 2 8 1 1 1 4 1 17 1 1 2 3 1

0.16 0.08 0.31 0.04 0.04 0.04 0.16 0.04 0.66 0.04 0.04 0.08 0.19 0.12 0.04

2 1 1 2 244 1 1

0.08 0.04 0.04 0.08 9.52 0.04 0.04

5

- 274

Table 2: Independent

Occupation

-

CONTINUJATION Number of Migrants

Percentage of the Total

Chain Yan Chemical Laboratory Technician Chief Mechanic Maintenance Compositor Concrete Foreman Concrete Worker Construction Foreman Crane Operator/Driver Cushion Maker

1 1 1 2 1

Denter D.D.E. Operator Diesel Mechanic Dispenser Dispenser- t s Assistant Distiller Plant Operator Dock Worker Draftsman Drilling Labour Driver Driver (Drill) Driver (scraper) Dumper Operator Dyer

1 135 1 1 1 1

Electric Electric Electric Electric Electrician Electric Electrician Excavator

2 1 1 2 201 1 8 1

o.08 0.04 0.04 0.08 7.84 0.04 0.31 0.04

4 1 11 1 3 1 27 1

0.16 0.04 0.43 0.04 0.12 0.04 1.05 0.04

and. Gas Welder Lineman Mechanic Worker Foreman Helper

Fabricator Fiberglass Maker Fitter Fitter (Electridal) Fitter (Instrument) Fireman Foreman Fuel Plant Operator

3

0.04 0.04 0.04 0.08 0.04 0.12

2

0.081

4 1

0.16 0.04

9

0.35

1 2 1 1 1 18

5

0.04 0.08 0.04 0.04 0.04 0.70 0.19 0.04

5-97 0.04 0.04 0.04 0.04

-

Table Independent

CONT2TUATION Number of Migrants

Occupation

1 1

Gas Turbine Operator Gas Welder Goldsmith Group Supervisor Heavy Truck Driver/Heavy Heavy Vehicle Mechanic Helper House Electrician

2:

275 -

4 2 Driver

5 1 40 2

Percentage of the Total 0.04 0.04 0.16 0.08 0.19 0.04

1.56 0.o8

Insulator

1

0.04

Jointer

1

0.04

Khalashi

3

0.12

Labour Construction Labour Supervisor Lift Mechanic Lift Operator Lineman

7 2 1 1 2

0.27 0.08 0.04 0.04 0.08

Machine Operator Machinist Helper Marine Engine Operator Mason Mason Helper Mechanic (Carbureter) Mechanic/Operator MechanicalAssembler Milking Machine Operator Mosaiknan Motor Grader Driver Moulder Municipal Labour

1 1 1 233 2 1 99 3 1 2 1 2 4

0.04 0.04 0.04 9.09 0.08 0.04 0.04 0.12 0.04

Painter Partner Pipe Fitter Pipe Fitter Helper PIP Driving Khalashi PhysiologyAssistant Plasterman Plumber Port Labour PsychiatricAssistant

51 1 66 4 1 1 5 26 7 1

1.99 0.04 2.57 0.16 0.04 0.04 0.19 1.01 0.27 0.04

0.o8 0.04 0.08 0.16

- 276

Table 2: Independent

Occupation

Radiator Repairer Rigger Roadman Rod. Binder Rubber Stamp Maker Sailor Seaman (Electrician) Shovel Driver/Operator Sign Maker Skilled. Labour Skilled. Worker Slinger Sorter Sponge Maker Spray Painter Spring Specialist Stableman Steel Binder Steel Cutter Steel Fabricator Steel Fitter Helper Steel Fitter Steel Fixer Steel Workers Survey Assistant Surveyor Helper Tailor Tailor Tailor

(Car) (Gents) *Tailor (Master) Textile Worker Tile Mixer Tin Maker Tracer Tractor Driver Truck Driver Turbine Electrician Turbine Mechanic Turbine Operator Turbine Operator (Electrical) Turbine Operator (Mechanical) Turner Turner Helper *Technical Helper

-

CONTINUATION Number of Mi.grants

Percentage of the Total

1 30 1 58 1

0.04 1.17 0.04 2.26 0.04

4 1 2 1 2 2 1 4 1 1 1 1 3 1

0.16 0.04 0.08 0.04 0.08 0.08 0.04 0.16 0.04 0.04 0.04 0.04 0.12 0.04 0.19

5 10 1 24 1 1 1

0.39

62 1 1 1 27 1 1 1 19 6 1 1 1 1 1 1 1 2

2.42 0.04 0.04 0.04 1.05 0.04 0.04 0.04

0.04 0.94 0.04 0.04 0.04

0.74 0.23 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.08

- 277 -

Table 2:

CONTINUATION

IndependentOccupation Unskilled Labour Vehicle Electrician Vehicle Mechanic

Number of Migrants

744

Percentageof the Total 29.03

1 6

0.04 0.23

Warp Cutting Operator

1

Warp Knitting Machine Operator

2

Warper Weaver Welder Winchman Windingman Worker

1

0.04 o.o8 0.04 0.16 2.22 0.12 0.04 0.19

Total

1/ Total does not add because of rounding

4 57 3 1

5 2,563

100.00 l/

-

Table 2:

278 -

BREAKDOWN OF MAJOR OCCUPATIONAL GROUPS INTO DETAILED OCCUPATIONS MAJOR GROUP 10 (Workers not Classified by Occupation)

Independent

Occupation

Number of Migrants

Percentage of the Total

Demi Chief De-rang

1

4.00

Equiper Erector

2 1

8.00 4.00

House Colony

2

8.00

Local Operator

2

8.00

1 14

4.00 56.00

Tabuk

2

8.00

Total

25

Senior Workers Grade B Supervisor

100.00

- 279 -

Table

Country UAE Saudi Arabia Libya

3:

PERCENTILE BREA1ODOWN OF MIGRANTSACCORDINGTO THEIR COUNTRY OF MIGRATION Number of Migrants

Percentage of the Total

1,154

32.31 12.57 8.39 12.74 8.34 4.09 9.13 7.31 3.87

449 300

Oaan

455

Quatar Bahrain Kuwait Iraq Iran Algeria Nigeria Malaysia Others

298 146 326 261 138 2 16 2 25

Total

3,572

0.05 0.45 0.05 0.70 100.00

Table

4;

BREAKDOWNOF MIGRANTS ADCORDINGTO THEIR MAJOR OCCUPATIONAL GROUPING AND COUNTRY OF aI':GRATION

Group 05

30 (61.22)

-

21 (32.81) 12

60 (20.07) 65

-

(18.75)

41 (14.39) 41

-

(14.39)

92

-

(32.28)

-

16 (5.61) 3 (1.05) 7

Oman Qatar Bahrain

-

-

(2.46)

-

6 (2.10) 42

Kuwait Iraq

_

Others

Note:

1/

Figures

-

(12.57)

(033)

(9.23)

(6.44)

(16.00)

(16.56)

16 (25.00) 7 (10.94) 3

4 (8A6) 11 (22.45)

60 (20.07) 8 (2.68) 14

11 (8.46)

335 (13.07) 250 (9-75)

2 (8.00) 3 (12.00) 2

11 (7-01 ) 16 (10.19)

(4.69)

(6.12)

(4.68)

-

3 (4.69)

1 (2.04)

63 (21.07)

102

3

-

3

-

-

-

(1.05)

-

-

-

-

64

-

(100.00)

-

49 (100.00)1/

3 (1.00) 21 (7.02)

-

(78.46) -

117 (4.56)

149 (5.81) 139 (5.42) 98 (3.82)

-

_ -

-

-

(0.08)

-

-

-

4

-

15

(1.34)

-

-

299 (100.00)

within parentheses represent percentages of total namber.

Total does not add because of rounding

1,154 (32.31) 449

-

-

-

/

8 (5.09) 14 26

-

1

7 (28.00) 6

(8.92)

(0.70)

(1o.oo)~-

-

982 (3631) 311

5 (3.85)

4

-

285

Total

Total

(;4400)

-

2

Malaysia

Not Known

165

-

(4.91)

Occupation

(12.13)

-

14

Nigeria

Mlajor

Group 10

12

-

(0.70)

07/08/09

1

-

-

-

1Major Group

(21.74)

-

-

-

Major

Group 06

-

-

2

Algeria

-

1 (1.56) 1 (1.56)

-

(14.74) 16 (5.61)

Iran

Major

Group 04

UAE

Libya

Major

Group 03

Group 02

GrouwP01

Saudi Arabia

Major

Major

Major

Country

130 (100.00)

(8.00) -

_ -

1 (4.00)

_ -

2 (1.27) 76 (48.41) 1 (0.64)

300 (8.39)

455 (12.74) 298 (8.34) 146 (4-09)

326 (9.13) 261 (7.31) 138 (3.87)

2

-

-

-

-

-

-

(0.05)

-

-

_

_

16 (045) 2

-

(0.05)

3 (1.91)

(0.70)

2 _

(0.58)

2,563 (100.00)-/

_ -

25

157

(100.00)

(100.00)

25 3,572 (100.00)I/

co

- 281 -

Table

4A: INDIVIDUAL COUNTRYWISE BREAKDOWN OF MAJOROCCUPATIONSOF MIGRANTS UAE,

Major

Occupation

Major Group Technical Major Group Managerial Major Group

01 (Professional, and Related Workers) 02 (Administrative and Workers) 03 (Clerical and Related

Workers)

Major Group 04 (Sales Workers) Major Group 05 (Service Workers) Major Group 06 (Agriculture, Animal Husbandry, Forestry Workers, Fishermen and Hunters) Major Group 07/08/09(Prod.uction and Related Workers, Transport Equipment Operators and Labourers) Major Group 10 (Workers not Classified by Occupation) Occupationnot Known Total

Number of Migrants

Percentage of the Total

41

3.55

-

-

21

30 60

1.82 2.60 5.20

5

0.43

982

85.10

7

0.61

8

0.69

1,154

100.00

- 282 -

Table

4A: INDIVIDUAL COUNTRYWISE BREAKDOWN OF MAJOROCCUPATIONSOF MIGRANTS SAUDI ARABIA

Major Occupation Major Group 01 (Professional, Technical and Related Workers) Major Group 02 (Administrative and ManagerialWorkers) Major Group 03 (Clericaland Related) Major Group 04 (SalesWorkers) Major Group 05 (ServiceWorkers) Major Group 06 (Agriculture,Animal Husbandry,ForestryWorkers, Fishermenand Hunters) Major Group o0'/o8/o9 (Productionand Related Workers, Transport Equipment Operators and Labourers) Major Group 10 (Workersnot Classified by Occupation) Occupationnot Known Total

Number of Migrants

41

Percentage of the Total

9.13

12 65

14.48

-

-

311

69.26

6 14

1.34 3.12

449

100.00

_

2.67 -

- 283 -

Table

4A: INDIVIDUAL COUUNTRYWISE BREAKDOWN OF MAJOROCCUPATIONSOF MIGRANTS LIBYA

Major Occupation Major Group 01 (Professional Technical and Related Workers) Major Group 02 (Administrativeand Managerial Workers) Major Group 03 (Clericaland Related Workers) Major Group 04 (SalesWorkers) Major Group 05 (ServiceWorkers) Major Group 06 (Agriculture,Animal Husbandry,ForestryWorkers, Fishermen and Hunters) Major Group 07/08/09 (Productionand Related Workers, Transport Equipment Operatorsand Labourers) Major Group 10 (Workersnot Classified by Occupation) Occupationnot Known Total

Number of Migrants

Percentage of the Total

92

30.67

-

-

1

0.33

12

4.00

165

55-00

4 26

1.33 8.67

300

100.00

- 284 -

Table

4A:

DTDIVIDUALCOTJNTRYWISE BREAKDOWN OF

MAJOR OCCUPATIONS OF MIGRANTS OMAN

Major Occupation Major Group 01 (Professional Technical and Related Workers) Major Group 02 (Administrative and ManagerialWorkers) Major Group 03 (Clericaland Related Workers) Major Group 04 (SalesWorkers) Major Group 05 (ServiceWorkers) Major Group 06 (Agriculture,Animal Husbandry,ForestryWorkers, Fishermen and Hunters) Major Group 07/08/09 (Productionand. Related Workers, Transport Equipment Operators and Labourers) Major Group 10 (Workersnot Classified by Occupation) Occupationnot Kno n Total

Number Migrants

Percentage of the Totel

16

3.52

-

-

16 4 60

3.52 0.88 13.19

11

2.42

335 2 11

455

1/ Total does not add because of rounding.

73.63 0.44 2.42

100.00 1!

- 285 -

Table

4A: INDIVIDUAL COUNTRYWISEBREAKDOWNOF MAJOR OCCUPATIONS OF MIGRANTS QATAR

Number of Major

Occupation

Major Group 01 (Professional Technical and Related Workers) Major Group 02 (Administrativeand Managerial Workers) Major Group 03 (Clericaland Related Workers) Major Group 04 (Sales Workers) Major Group 05 (ServiceWorkers) Major Group 06 (Agriculture,Animal Husbandry, ForestryWorkers, ishermen and Hunters) Major Group 07/08/09 (Productionand Related Workers, Transport Equipment Operators and Labourers) Major Group 10 (Workersnot Classified by Occupation) Occupationnot Known Total

Migrants

3 -

7 11

8 -

250 3 16 298

Percentage of the

Total

1.01 2.35 3.69 2.68

83.89 1.01 5.37 100.00

- 286

Table

4A:

-

INDIVIDUAL COUNTRYWISEBREAKDOWNOF MAJOR OCCUPATIONS OF MIGRANTS BAHRAIN

Ma.jor

Occupation

Number of Migrants

Major Group 01 (Professional Technical and.Related.Workers) Major Group 02 (Administrative and Managerial Workers) Major Group 03 (Clerical and Related

Workers) Major Group 04 (Sales Workers) Major Group 05 (Service Workers) Major Group 06 (Agriculture, Animal Husbandry, Forestry Workers, Fshermen and Hunters) Major Group 07/08/09 (Prod.uction and Related Workers, Transport Equipment Operators and Labourers) Major Group 10 (Workers not Classified by Occupation) Occupation not Known

Total

1/

Total does not add because of rounding

7 -

Percentage of the Total

4.79 -

3

2.05

3 14

2.05

-

-

9.59

117

80.14

2 -

1.37 -

146

100.00 /

- 287 -

Table

4A: INDIVIDUAL COUNTRYWISE BPREKDOWN OF MAJOROCCUPATIONS OF MIMGANTS KUWAIT Number of Migrants

Major Occupation Major Group Technical Major Group Managerial Major Group

01 (Professional and Related. Workers) 02 (Administrative and Workers) 03 (Clerical and Related

6

1.84

-

-

3 1 63

0.92 0.31 19.32

102

31.29

149

45.70

2

0.61

326

100.00

Workers)

Major Group 04 (Sales Workers) Major Group 05 (Service Workers) Major Group 06 (Agriculture, Animal Husband.ry, Forestry Workers, Fishermen and Hunters) Major Group 07/08/09 (Production and Related Workers, Transport Equipment Operators and Labourers) Major Group 10 (Workers not Classified by Occupation) Occupation not Known Total l/

Total does not add because

Percentage of the Total

of rounding.

1/

- 288 -

Table

4A: INDIVIDUAL COUNTRYWISE BREAKDOWN OF MAJOR OCCUPATIONSOF MIGRANTS IRAQ

Major Occupation Major Group 01 (Professional Technical and Related Workers) Major Group 02 (Administrativeand ManagerialWorkers) Major Group 03 (Clericaland Related Workers) Major Group 04 (SalesWorkers) Major Group 05 (Service Workers) Major Group 06 (Agriculture,Animal Husbandry, ForestryWorkers, Fishernien and Hunters) Major Group 07/08/09 (Productionand Related Workers, Transport Equipment Operators and Labourers) Major Group 10 (Workersnot Classified by Occupation) Occupationnot Known Total

Number of Migrants

Percentage of the Total

42

16.09

-

-

1

3 -

139

0.38

1.15 -

53.26

-

-

76

29.12

261

100.00

- 289 -

Table

4A: IlDIVIDUAL COUNTRYWISE BREAKDOWN OF MAJOR OCCUPATIONS OF MIGRANTS IRAN

Major Occupations Major Group 01 (Professional Technical and Related Workers) Major Group 02 (Administrativeand ManagerialWorkers) Major Group 03 (Clericaland.Related. Workers) Major Group 04 (SalesWorkers) Major Group 05 (ServiceWorkers) Major Group 06 (Agriculture,Animal Husbandry, Forestry Workers, Fishermenand Hunters) Major Group 0o/08/09 (Productionand Related Workers, Transport Equipment Operatorsand Labourers) Major Group 10 (Workersnot Classified by Occupation) Occupationnot Known Total l/

Number of Migrants

Percentage of the Total

16

11.59

-

-

1 21

0.72 15.22

-

-

98

/1.01

1 1

0.72 0.72

138

Total does not add because of rounding.

100.00 l/

- 290 -

Table 4A: INDIVIDUALCOUNTRYWISEBREAKDOWN OF MAJOR OCCUPATIONSOF MIGRANTS ALGERIA Major Occupations Major Group 01 (Professional Technical and Related Workers) Major Group 02 (Administrativeand ManagerialWorkers) Major Group 03 (Clericaland Related Workers) Major Group 04 (SalesWorkers) Major Group 05 (ServiceWorkers) Major Group 06 (Agriculture, Animal Husbandry, Forestry Workers, Fishermen and Hunters) Major Group 07/08/09 (Productionand Related Workers, Transport Equipment Operators and Labourers) Major Group 10 (Workers not Classified by Occupation) Occupationnot Known Total

Number of Migrants

Percentage of the Total

2

100.00

-

-

-

-

-

-

-

2

i00.00

- 291 -

Table

4A:

INDIVIDUAL COUNTRYWISE BREAKDOWN OF MAJOROCCUPATIONSOF MIGRANTS NIGERIA

Major

Occupations

Number Migrants

Major Group 01 (Professional Technical and Related Workers) Major Group 02 (Administrativeand Managerial Workers) Major Group 03 (Clerical and Related Workers) Major Group 04 (SalesWorkers) Major Group 05 (Service Workers) Major Group 06 (Agriculture,Animal Husbandry,Forestry Workers? Fishermen and. Hunters) Major Group 07/08/09 (Productionand Related Workers, Transport Equipment Operators and.Labourers) Major Group 10 (Workers not Classified by Occupation) Occiupation not Known Total

Percentage of the Total

14

87.50

-

-

-

-

-

_

12.50 16

100.00

-

Table

292 -

4A: INDIVIDUAL (JOUNTRYWISE BREAKDOWN OF MAJOROCCUPATIONSOF MIGRANTS MALAYSIA

Ma,jor Occupation Major Group 01 (Professional Technical and Related Workers) Major Group 02 (Administrativeand Managerial Workers) Major Group 03 (Clerical and Related Workers) Major Group 04 (SalesWorkers) Major Group 05 (ServiceWorkers) Major Group 06 (Agriculture,Animal Husbandry, Forestry Workers, Fishermen and Hunters) Major Group 07/08/09 (Productionand Related Workers, Transport Equipment Operators and Labourers) Major Group 10 (Workersnot Classified by Occupation) Occupationnot Known Total

Number of Migrants

Percentage of the Total,

2

100.00

_ -

-

-

-

-

-

-

-

2

100.00

- 293 -

Table

OF BREAKDOWN DTDIVIDUAL COUNTRYWISE 4A: MAJOR OCCUPATIONSOF MIGRANTS OTHERCOUNTRIES

Major Occupation Major Group 01 (Professional Workers) Technical and Related. and Major Group 02 (Administrative ManagerialWorkers) Major Group 03 (Clericaland Related Workers) Major Group 04 (Sales Workers) Major Group 05 (ServiceWorkers) Major Group 06 (Agriculture,Animal Husbandry,ForestryWorkers, Fishermenand Hunters) Major Group 07/08/09 (Production and Related Workers, Transport Equipment Operators and Labourers) Major Group 10 (Workersnot Classified by Occupation) Occupationnot Known Total

Number of Migrants

Percentage of the Total

3

12.00

-

-

4

16.00

_

_

15

60.00

3

12.00

25

100.00

- 294 -

GROUPS ON THE Table 5: BREAKDOWN OF MAJOR OCCUPATIONT BASIS OF THEIR PERIOD OF CONTRACT Major Occupation Group

Less than 1 Year

Major Group 01 Major Group 02 Major Group 03 Major Group

04

Major Group 05 Major Group 06

1-2 Years

36

42

(37.11)

(43.30)

2-3 Years

More than 3 Years

19 (19.59)

Total

97 (100)

-

2

-

43

_

10 (23.81) 94 (4;.OO)

(4.65) 11 (5.50)

(100) 42

42

15

-

(73.68)

(26.32)

-

28 (65.12)

13 (30.23)

32 (7.6.19) 95 (47.50)

(100) 200

_

(100) 57 (100)

Major Group

07/08/09

927

Major Group 10 Occupationnot Known Total

(33.42) 7 (58.33)

9 (69.23)

4

1,172

(60.82) Note:

489

(63.36) 3 (25.00)

(30.77) 674 (3A.98)

45 (3.08) 2

(16.67)

2

(0.14) _ _

-

-

_

79 (4.10)

(0.10)

2

1,463

(100) 12

(100) 13 (100) 1,927

(100)

Figures in parentheses representpercentage. The Table has been prepared using a reduced sample because information about the period of contractin respect to 1,645 migrants is not known.

Table

Chittagonz

Countrv

402 (34.83)

UAE

127

Qatar Kuwait Iran Iraq

Libya Bahrain

14

33

16 (1.39)

-

3 (1.01)

-

(3.62)

8

70

30

10

18

(26.82) 83 (i8.49) 48 (16.00)

(11.49) 38 (8.46) 29 (9.67)

5

(3.83) 70 (15.59) 21 (7.00)

Pabna

(6.90) 22 (4.90) 16 (5.33)

-

Faridvar

1 (0.09)

4

-

(0.33)

-

_ 2 (1.45)

2

3

(0"77) 4 (0.89) 1 (0.33)

(1.15) 4 (0.89) 2 (0.67)

-

-

1 (0.22) 1 (0.33)

40

24

5

30

2

-

_

_

(16.44)

(3.42)

(20.55)

(1.37)

-

-

-

-

-

_

_

_

_

_

_

-

_

_

_

_

_

_

-

-

-

-

1

(50.00)

2

9

(12.50)

(56.25) 1 (50.00)

-

1

(6.25) 1 (50.00)

_ -

-

35

33

6

-

(7.25)

(4.83)

(0.32)

-

(32,00)

(28.00)

(8.00)

(12.00)

(4.00)

-

-

1,007 (28.19)

447 (12.51)

251 (7.03)

402 (11.25)

101 (2.83)

4 (0.11)

15 (0.42)

within

parentheses

8

7

2

represent

22 3

percentages

1

of total

number.

1 (0.22) 1 (0.33)

2 (1-37)

1 (6.25)

-

-

1

-

_ 1 (0.22) 1 (0.33)

7 (0.61)

-

3 (0.92) 5 (3.62)

-

1 (0.09)

KymensinRh

-

1 (0.31) 1 (0.72)

(7.69)

Figures

3 (0.26)

Ra.ishahi

(27.40)

304

Other

Barisal

(1.34) 1 (0.31) 2 (1.45)

(66.81)

Oman

Note:

146 (12.65)

6 (1.84) 11 (7.97)

-

TotalNmber of miizrants

64 (5.55)

Comilla

(11.07) 60 (18.40)

-

Malaysia

14

Sylhet

(4.70) 14 (4.29) 22 (15.94)

-

Nigeria

54 (4.68)

Noakhali

(4.70) 43 (13.19) 58 (42.03)

_

Algeria

Dacca

(42.62) 55 (16.87) 8 (5.80) (3.06) 35 (7.79) 18 (6.00)

SaudiArabia

BREAKDOWNOF MIGRANTS ACCORDING TO THEIR DISTRICTS OF ORIGIN AND COUNTRY OF MIGRATION

6:

-

-

20 (O.56)

-

_

-

1

2

(0.22)

(0.44)

_ -

5 (0.14)

_ 16 (0.45)

Table 6:

Patuakhali

Countrv UAE Qatar

Jessore

Khulna

(0.09)

1

-

-

-

-

-

-

(0.33)

-

-

-

-

1

1

-

-

-

(0.31) 1 (0.72)

(0.31)

-

-

Iraq

1

-

tahrain

-

2

(1.45)

--

1 (0o78)

(0.38)

-

3

2

(0.67) 1 (0-33)

(0.44) 1 (0-33)

_

_

-

-

-

-

-

-

2

-

(1.45)

1

1

(0.38)

(0.38)

-

_

2

1

-

Libya

-

-

-

_

-

-

-

-

-

-

1

-

(6.25)

-

-

_

_

_-

1

_

Other

_

-

_ Total Number

of Migrants

1 (0.03)

Note:

Figures

within

1

(100)

141 16

(11.59) 115 (44.06)

1

181

(40.31)

_

2

157

_

(0.67)

(52.33)

(100)

(28.77)

(100)

_

-

-

-_

-

(50.00)

42

2

(100) (100)

2

-

-

-

-

-

_

_

_

_

_

-

_

_

_

_

_

_

51

-

-

-

-

-

-

(11.21)

_

_

_

_

_

_

4

-

-

-

-

-

(16.00)

8

2

1

7

1

9

(0.22)

(o.o6)

(0.03)

(0.20)

(0.03)

(0.25)

numler.

146

-

-

9

300

-

(12.50)

total

449

(100)

1

_

of

138 (ioo) 261 (100)

(0.33) 1 (0.68)

_

percentages

326

(0.22)

_

represent

298

(43.25)

2

(0.22)

1,154 (i0o) (100)

(1-45) 2 (0.77)

(0.25) parentheses

101

Total

(33.89)

_

-

-

-

456 (39.51)

_ -

(0.22)

-

-

-

1

Name of the District not Known

(0.44)

-

-

Oman

(0.09)

-

-

Malaysia

-

1

(0.09)

-

-

-

Iran

Nigeria

RanRpur

-

-

Algeria

Tangail

1

-

SaudiArabia

Bogra

Kustia

Chittagong Hill Tracts

(0.09) -

Kuwait

CONTINUATIQN

1 266 135.44)

16

2

(100)

455 (100)

25

(100) 3,572 (ioo)

Table

District Dacca

BREAKGOWNOF MAJOR OCCUPATIONAL GROUPS ACCORDING TO DISTRICT ORIGIN

7:

Major Group 01

Major Group 02

101 (35-44)

-

Major Group 03 11 (17.19)

Faridpur Tangail

-

-

-

2

-

2 (3.13)

(0.70) Mymensingh

4 (1.40) 29 (10.18) 9 (3.16) 11 (3.86) 13 (4.56)

Chittagong Comilla Noakhali Sylhet Chittagong Rajshahi Pabna Bogra Rangpur Ehulna

Jessore

Hill

Tracts

-

-

-

_

-

21 (32.81) 4 (6.25) 2 (3-13) 1 (1.56) _

Major Group 04 3 (6.12) I (2-04)

Major Group 05

Maj or Group 06

Major Group 07/08/09

Major Group 10

OccupatLon Not Known

87 (29.10)

-

227 (8.86)

5 (20.00)

13 (8.28)

1

-

-

-

-

-

_

-

1 (2.04) 15 (30.61) 1 (2.04) 3 (6.12) 16 (32.65) _

(0.33)

1 (0.33) 56 (18.73) 4 (1.34) 17 (5.69) 34 (11.37) -

_

47 (36.15) 3 (2.31)

11 (8.46) 2 (1-54) _ -

10 (0-39) 3 (0.12) 8 (0.31) 818 (31.92) 74 (2.89) 189 (7-37) 332 (12.95) 1 (0.04) 2 (0.08)

-

3

-

(1.91)

-

3 (12.00) 3 (12.00) _ -

2 (8.00) -

2 (1.27) 18 (11.46) 3 (1.91) 18 (11.46) 2 (1.27)

-

3

-

-

-

-

(0-33)

-

(0.12)

-

-

-

-

-

-

_ 2 (0.08)

_ _

_ 1

_ _ _ -

-

1

-

_ _ _ -

(0.33)

-

_

-

-

(0.04) 6

-

(0.23)

_

(0.64)

1

1 (2.04) I1 (2.04)

402

5

-

(1.56)

251

-

-

-

101

-

-

-

1,007

1

_

(1.75)

16

-

_

-

7

-

_

1 (1.56) 1

15

-

-

-

447

-

3 (1.05) _1

(0.35) 6 (2.11) 5

Total

-

1

4 1 9 9 8

Table 7: District Kushtia

Major Group 01

Major Group 02

Major Group 03

Major Group 04

Major Group 05

Major Group 06

Major Group 07/08/09

Major Group 10

1 (0-35)

_ -

-

-

-

-

2

1 (0.04) 9

-

1 (1.56)

2

_

(0.67)

(1.54)

(0.35)

-

-

(0.04)

4 (1.40)

Barisal

CONTINUATION

-

1

patuakhali

Total

Note:

Figures

within

Total

-

2

1

1

20

(4.00)

(0.64)

-

-

-

-

-

96 (33.68)

-

20 (31.25)

7 (14.29)

95 (31.77)

65 (50.00)

876 (34.18)

11 (44.00)

96 (61.15)

1,266

285 (7.98)

-

64 (1.79)

49 (1.37)

299 (8.37)

130 (3.64)

2,563 (71.75)

25 (0.70)

157 (4.40)

3,572 (100)

-

Others

Occupation Not Known

parentheses

represent

percentages

of total

number. l0

Table 8: flintrict

DISTRICT BREAKDOWN OF MIGRANTSACCORDING TO THEIR PLACEOF ORIGIN ANDRELIGIOUS AFFILIATION

Rural

9

Urban

9

Total

Xuslim M

---

Hindu

Reli ions Buddhist

%

<

Christian

Dacca Chittagong

154 880

8.58 49.02

293 127

57.34 24.85

447 1,007

19.38 43.67

396 968

17.99 43.98

10 34

17.24 58.62

3

100

41 2

Noakhali

-

<

93.18 4.64

243

13.54

8

1.56

251

10.88

250

11.36

1

1.72

-

-

-

Barisal

18

1.00

2

0.39

20

0.87

18

0.82

1

1.72

-

_

1

Patuakhali Khulna Jessore Kushtia Rangpur

1 1 7 2 1 15

0.05 0.05 0-39 0.11 0.05 0.83

1 9 8 2 9 15 5 16 392 100 4 1 6 1

0.04 0.41 0.36 0.09 0.41 0.68 0.23 0.73 17.81 4.54 0.18 0.04 0.27 0.04

-

-

-

-

-

-

-

0.61 20.00 5.24 0.17 0.05 0.28

0.04 0.39 0.35 0.09 0.39 0.65 0.22 0.69 17.43 4.38 0.17 0.04

-

11 359 94 3 1 5

1 9 8 2 9 15 5 16 402 101 4 1 7 1

Faridpur Rajshahi Mymensingh Sylhet Comilla Pabna Bogra Tangail Chittagong Dinajpur

-

Hill

Tracts

1,795

Percentage and Rural Note:

Total

8 1 8 5 5 43 7 1

-

-

-

_

1.56 0.19 1.56 0.98 0.98 8.41 1.37 0.19 -

2 1

0.39 0.19 -

Total

1/

-

-

100.001/

511

0.30 0.04

100.00

2,306 100.001/

22.16

The name of the district is not available 1. BMET channel - 1977 - total number of 2. Private channel - 1977 - total number 3. BMETchannel - 1978 - total mnmber of 4. Private channel - 1978 - total number does not add because

of rounding

2.27

-

-

-

-

-

-

-

-

-

-

-

-

-

10 1 -

-

_

_

_

_

17.24 1.72 -

-

-

-

-

-

-

-

-

-

-

44

100.001/

1

1.72

-

-

58

100.00

-

2,201

of Urban 77.84

-

100.00

on the following cards

107

of cards 340 cards 239 of cards 580

cards:

100.001/

3

100.00

- 300

Table 9:

-

BREAKDOWN OF MIGRANTSON TEE BASIS OF LEVEL OF EDUCATION Total

Percentage of the Total

I - V

209

36.22

VI - VIII

212

36.74

Level of Education

IX - X

57

9.88

SSC - HSC

29

5.03

Diploma

12

2.08

HSC - Graduate

18

3.12

Graduation

25

4.33

Post-graduateDegree

13

2.25

2

0.35

Specialised

Qualification

577

Total Note:

100.00

Educational informationis not available on the following series of cards: (a)

BMET

(b) Private c) BMET (d) Private Total

1977

1977 1978 1978

243

995 524 1,233 2,995

No educationa-l informationis available from private channelsin 1977.

Table 10: Level

GROUPING TO THEIR LEVEL OF EDUCATIONANDMAJOROCCUPATIONAL OF MIGRANTSACCORDING BREAKDOWN

Major Group 01

of Education

2

I -v

Major Group 02 -

VI -VIII

(3.64) 1 (1.82)

IX - X

2 (3.64)

-

1

-

SSC - HSC Diploma

HSC Graduate Graduation Post

Graduate

Specialised

Degree Qualification

Total

Note:

Figures

within

-

Major Group 03

Major Group 04

2 _ 1 (14.29) -

2 (28.57)

(28.57)

_

2

6 (10.71)

2 (5.71)

46 (11.25)

-

-

_

_

-

1 (14.29)

-

1 (14.29)

-

_

18

2

-

24

-

-

-

(5.87) 44 (0.24)

_

_

-

-

1 (50o00)

-

-

9 (2.20)

_ _

1I

1

(0.24)

(50o00)

-

-

-

1 (1.79) _

-

-

57

29

12 18

-

25

1 (1.79)

-

-

-

_

_

_

13

_

_

_

_

_

_

2

-

-

-

409 (70.88)

2 (0.35)

6 (1.04)

(3.64)

-

-

-

-

-

55 (9-53)

-

7

7

56

35

-

(1.21)

(1.21)

(9.70)

(6.07)

of total

212

(33.33)

(3.57)

-

_

percentages

209

1 (14.29)

2 (28.57) 2 (28.57)

represent

4 (66.67)

-

-

parentheses

-

_

4 (7.27) 21 (38.18)

-

166 (40.59)

162

-

-

15 (42.86)

Total

(39.61)

-

-

20 (35.71)

Occupation Not Known

(51.43)

-

2

Major Group 10

26

-

11 (20.00)

07/08/09

(46.43)

-

-

Major Group

2

-

-

Major Group 06

(2B.57)

(1.82) 11 (20.00)

-

Major Group 05

mimber.

Educational

qualifications

577 (100)

are not known for 2,995 migrants.

Table 11: Major Grouc 01

ANDNATUREOF FIRMS TO COUNTRY GROUPSACCORDING OF MAJOROCCUPATIONAL BREAKDOWN Major Groun 02

Major Group 03

Major Group 04

Major Group 05

Major Group 06

Major Group 07/08/09

Major Group 10

Occupation Not Known

Total

UAE

Public Private Sub-total Saudi Arabia Public Private Sub-total

Libya Public Private

Sub-total Oman

Public Private Sub-total Qatar Public Private Sab-total

9

_

2

_

2

2

97

1

2

(7.83) 30 209s) 39

_

(1-74) 19 -87) 21

-

(1.74) 58 (5.71) 60

(1.74) 3 (0.29) 5

(84.35) 864 (85.04) 961

(0.87) 6 (0.59) 7

(1.74) 6 (0.59) 8

1

_

16 (25.40) 295 (76.42) 311

-(1

-

30 (2-95) 30

2 (3.17) 10 (2.60) 12

-

-

(1.59) 64 (16.58) 65

-

-

-

-

_

_

-

-

-

-

-

_

_

_ 1 (0.75) 1

-

-

-

-

-

-

-

-

30 (47.62) 11 (2.85) 41

-

74 (44.58) 18 (13.43) 92

-

-

-

-

16 (3.56) 16

-

2 (2.17) 1 (0.48) 3

-

-

-

-

2 (50.00)

-

12 (8.95) 12

66 (39.76) 99 (73.88) 165

-

1 (25.00)

-

-

6 (1.55) 6 -

4 (2.98) 4 -

-

16 (3.56) 16

4 (0.89) 4

58 (12.89) 60

11 (2.44) 11

334 (74.22) 335

2 (0.44) 2

3 (3.26) 4 (1.94) 7

-

1 (1.09) 7 (3.40) 8

-

68 (73-91) 182 (88.35) 250

3 (3.26)

11 (5.34) 11

_ -

_

-

3

115 (100.00) 1,016 (100.00) 1,131

-

63 (100.00) 386

-

(100.00)

14 (22.22)

14

449

26

166 (100.00) 134 (100.00) 300

1 (25.00)

4 (100.00)

26 (15.66) -

9 (2.00) 10 15 (16.30) 1 (0.48) 16

450 (100.00) 454 92 (100.00) 206 (100.00) 298

o

Major Group 01

Major Group 02

Major GrouP 03-

Table 11:

CONTINUATION

Major Group 04

Major Group 05

Major Group 06

Major Group 07/08/09

Major Group 10

Occupation Not Knowi

Total

Bahrain Public

Private Sub-total Kuwait

Public Private

Sub-total Iraq Public Private Sub-total Irean

public Private

Sub-total Algeria Public Private Sub-total

2

-

12

-

-

19

(10.53) 12 (9.45) 14

-

2 (1.57) 2

-

-

(63.16) 105 (82.68) 117

-

(100.00) 127 (100.00) 146

31 (73.81) 32 (11.27) 63

-

(21.43)

-

(100.00)

102 (35.91) 102

140 (49.29)

-

2 (0.70) 2

284 (100.00) 326

-

-

3 (4.22) 3

-

77 (40.53) 62 (87.32)

76 (40.00)

-

139

-

76

190 (100.00) 71 (100.00) 261

-

-

1 (0.99) 1

-

-

16 (44.44) 82 (81.19) 98

-

-

11 (30.56) 10 (9.90) 21

4

-

(21.05) 3 (2.36) 7

-

(5.26) 2 (1.57) 3

2 (4h76) 4 (1.41) 6

-

3 (1.06) 3

37 (19.47) 5 (7.04)

-

-

I (1.41)

42

-

1

-

9 (25.00) 7 (6.93) 16

-

-

-

-

i (0.99)

-

-

1

-

3 (2.36) 3 -

1 (0.35) 1

-

-

-

-

9

149

-

-

-

-

-

-

-

-

2

-

-

-

-

-

-

-

-

(100.00) -

-

-

-

-

-

-

-

-

2

-

-

-

-

-

-

-

-

42

36 (100.00) 101 (100.00) 137 2 (100.00)

2

Nigeria

14

Public

Major Group 04

Major Group 05

Major Group 06

2

Major Group 10

Occupation Not Known

_

2

_

_

-

-

-

-

-

-

-

-

_

_

_

_

14

-

_

_

_

_

2

-

-

-

-

-

-

-

-

(12.50)

-

_

_

_

-

_

_

_

_

Sub-total

2

-

_

_

_

_

_

_

_

-

-

1

-

-

-

-

-

-

-

-

-

2

Public

(66.67) Private

-

Sub-total

_ 2

Note;

The nature

of firms

UAE Others UAE Others Oman Iran Others

-

64 (1 .81

-

are not known in respect

Major Group 01 liajor Group 01 Major Group 07/08/09 Major Group 07/08/09 Occupation Not Known Occupation Not Known Occupation Not Known Total

-

-

282 (7.99)

Total

-

-

-

2 1 21 14 1 1 1 41

to the

49 (1.39) following:

(33.33)

3 (50.00)

4 299 (8.47)

-

-

130 (3X68}

1 (16.67)

1 2,528 (71.59)

-

(100.00) 16

2

-

Private

Others

Total 16

-

_

-

-

(100.00)

Msajor Group 07/08109

-

-

(87.50)

Sub-total Malaysia Public

Major Group 03

Major Group 02

Major Group 01

CONTIliUATION

11:

Table

(100.00) _

2

-

33

-

(100.00)

2 (33.33)

_

2

25 (0.71)

154 (4.36)

6 (100.00)

9 3,531 (100.00)

43

Table

12:

BREAKDOWNOF MIGRANTS ACCORDING TO THEIR PERIOD OF CONTRACTAND COUNTRYOF MIGRATION Information

Less than 1 Year

Country

415 (35.96)

UAE

Saudi Arabia Libya Oman Qatar Bahrain Kuwait Iraq Iran

90 (20.04) 8 (2.67) 363 (79.78) 104 (34.90) 47 (32.19) 105 (32.21) 9 (3.45) 20 (14.49)

Algeria -

Nigeria

1 (6.25)

Malaysia

Total

Note:

1 (9 (15.51)

119 (26.50) 51 (17.00) 37 (8.13) 82 (27.52) 56 (38.36) 59 (18.10) 52 (19.92) 31 (22.46) 2 (100.00) -

_ -

(40.00)

6 (24.00)

1,172 (32.81)

674 (18.87)

_

Others

1-2 Years

10

2-3 Years

More than 3 Years

not Available 546 (47.31)

14 (1.21)

17

223

(3.79)

(49.67) 241 (80.33) 52 (11.43) 99 (33.22) 42 (28.77) 155 (47-54) 194 (74.33) 71 (51.45)

-

3 (0.66) 13 (4-36) 1 (0.68) 7 (2.15) 6 (2.30) 14 (10.14)

_ _ _ _

_

2 (1-45) -

2 (12.50) 2 (100.00)

13 (81.25)

_

Total 1,154 (100)

449 (100) 300 (100) 455 (100) 298 (100) 146 (100) 326

(lOo) 261 (100) 138

(100) 2 (100) 16 (100) 2

-

-

_

9 (36.00)

(100) 25 (100)

19 (2.21)

2 (0.06)

1 645 (46 05)

3X572 (100)

_

-

Figures in parenthesesrepresentpercentage.

-

-

Table Age Group

306 -

13: DISTRIBUTION OF AGE OF THE MIGRANTS Total

Percentage

of the Total

15 - 19

38

2.50

20 - 25

459

30.24

26 - 30

514

33.86

31 - 35

281

18.51

36 - 40

158

10.41

41 - 45

42

2.77

45 and. Above

26

1.71

1,518

100.00

Total Note:

2,054 migrarntstage groups are not known.

Table 14: T'Ypes of Skill Professional Technical

Major Group 02

Major Group. 01

-

S -

-

-

-

(4.69)

-

_ _

_

-

-

285 (7.98)

-

64 (1.79)

_ Skill Not Known

Total

-

_ Table 14A:

Professional Technical

193 (5.40) 92

k(258) Skilled

-

-

-

-

-

Semi-skilled

-

-

-

Unskilled

-

-

-

-

-

Skill Not Known

Note:

-

(65.62) 3

Unskilled

Total

-

19 (29.69) 42

285 (7-98) Figures within parentheses

-

-

represent

Major Group 05

Major Group 04 -

-

-

Skilled

Semi-skilled

Major Group 03

-

193 (67.72) 92 (32.28)

BY TYPES OF SKILL OF MAJOROCCUPATIONS BREAKDOWN

-

-

Major GrouP 06

_ _

_ _

-

-

-

-

(69.39) 15

(16.39) 72

(86.15) 8

(30.61) _ -

(24.08) _ -

299 (8.37)

49 (1.37)

Occupation Not Known

-

10 (7.69) 112

34

Major Group 10

-

178 (59.53) 49

-

Major Group 07/08/09

(6.15) _ -

130 (3.64)

1,524 (59.46) 136

(5-31) 903 (35.23) -

2,563 (71.75)

Total 193 92

15 (60.00) 3

-

1,746

-

376

(12.00) 2

-

(8.00) 5 (20.00)

25 (0.70)

157 (10.00)

157 (4.40)

1,003 162

3,572 (100)

BY TYPES OF SKILL OF MAJOROCCUPATIONS BREAKDOWN -

19 (0s53) 42 (1.18) 3 (0.08) _ -

64 (1.79) percentages

-

34 (0-95) 15 (0.42) _ -

49 (1-37) of total

178 (4-98) 49 (1-37) 72 (2.02) _ -

10 (0.28) 112 (3-14) 8 (0.22) _ -

1,524 (42.67) 136 (3.81) 903 (25.28) _ -

15 (0.42) 3 (0.08) 2 (0.06) 5 (0-14)

157 (4-39)

193 (5.40) 92 (2.58) 1,746 (48.88) 376 (10.53) 1,003 (28.08) 162 (4-53)

299 (8-37)

130 (3.64)

2,563 (71-75)

25 (0.70)

157 (4-40)

3,572 (100)

-

-

number.

-

-

-

-

-

-

-

-

-

-

-

-

-

- 308 -

Table

Major

CLASSIFICATION OF EACH TRADE BY TYPES OF SKILL UNDER EACH MAJOR GROUP OF OCCUPATION

15:

Group

01:

PROFESSIONAL, TECTNICAL AMD RELATED WORKERS Quantity

Group

14 1 1 1 1 1

2

P T P P P P P P T P

1

P

Civil Engineer Civil Foreman Concrete Engineer Concrete Technician Construction Technician

29 3 1 1 I

P T P T T

Dental Surgeon Dentist Diploma Civil Engineer Doctor

2 1 1 27

P P T P

Electrical Aircraft Technician Electrical Engineer Electrical Engineering/Technician Technician Electrical Engineer (Air Conditioning) Engineer Technician Engineering Executive

1 6 1 8 30 1 3 1

T P T T P P T P

Field Engineer

2

P

H-B Technician

1

T

Jet Engine Technician

1

T

Laboratory Lecturer

4 7

T p

Occupation Accountant cum Clerk Accountant Officer Accounts Officer Administrative Economist Agriculture Teacher Agriculture Architect Assistant Engineer Assistant Pharmacist Assistant Register (rmedical) Biochemist

Technician

5 1

9

-

309 -

Table 15: CONTITUATION Occupation

Quantity

Group

Manager Manager (Hotel) Master Grade 1 Material Engineer MechanicalEngineer Mechanical Superintendent MechanicalTechnician Medical Officer Medical Technician

2 1 1 1 11 1 8 3

P P T P P T T P T

Nurse

20

P

1

T

3 1 1

P P P

1 2

T T

Sanitary Inspector Senior Draft anan Senior Electrical Engineer Senior Engineer Soil Chemist Specialistin InternalMedicine Staff Foreman Sub-assistantEngineer SupervisorConstruction Surveyor Surveyor (Civil) Surveyor (Land)

2 1 1 1 1 1 1 1 2 14 1 1

T P P P P T P T T P T

Teacher Technical Assistant Civil Technician Technician (Dental) Technician (Power) Telephone Technician Translator Trawler Headmaster

4 1 25 1 2 1 2 1

P T T T P T P P

3

p

Overseer Physician Principal Professor

Water Engineer

Radio Technician Radiographer

Veterinarian Total

1

285

- 310 Table

15:

Major Occupation Accounts

CLASSIFTCATION OF EACH TRADE BY TYPES OF SKILL UNDER EACH MAJOR GROUP OF OCCUPATION Group

03:

CLERICAL AND RELATED WORKERS Quantity

Assistant

Group

1

SS

Assistant Storekeeper

1

SS

Bus Boy

2

US

3 27 1

S SS SS

Office Assistant Office Supervisor

4 1

SS SS

Peon

1

US

ReservationAssistant

1

SS

Senior Clerk Senior Secretary Sorting Clerk Store Cashier Store Inspector Storekeeper Storeman

2 1 1 1 1 7 1

S S SS S SS S SS

Telephone Operator Time Keeper Typist

1 2 5

SS SS S

Cashier Clerk Clerk (Postal)

Total

64

- 311 -

Table

15:

CLASSIFICATIONOF EACHTRADEBY TYPES OF SKILL UNDEREACHMAJOR GROUPOF OCCUPATION Major

Occupation

Group 04:

SALES WORKERS Quantity

Sales Assistant Sales Representative Salesman Shop Assistant

2 1 32 13

Total

49

Group US Ss SS US

- 312 -

Table

15:

CLASSIFICATION OF EACH TRADE BY TYPES OF SKILL UNDER EACH MAJOR GROUP OF OCCUPATION Major

Occupation

Group

05:

SERVICE WORKERS

Quant ity

Group

Attendant Ayah

1

US

4

US

Bar Waiter Barber Bearer Boy

1 2 2 3

US SS US US

Catering

1

SS

Catering Supervisor

1

S

Cleaner

12

SS

Cook Cook Chief

128 3

S S

Dishwasher

3

US

Governess

1

S

Hotel Bearer Hotel Boy

1

US US

House Boy

4

US

1 18 4

SS US

Ironman

4

SS

Khadem

I

US

Kitchen Boy/Cook Helper Kitchen Helper

3 1

US US

Laundry Boy Laundryman

2 1

Ss SS

Maid Servant

3

US

Office Bearer

1

US

Private Service

1

US

Room Boy

7

US

House Servant Housekeeper Houseman

- 313 -

Table 15: CONTINUATION Occupation

Quantity

Group

Servant Service Sweeper

9 7

US US

38

S

Waiter Wash Boy Washerman White Washer

13 1 13 1

US US SS SS

Total

299

- 314 -

Table

Major

15:

CLASSIFICATION OF EACH TRADE BY TYPES OF SKILL UNDER EACH MAJOR GROUP OF OCCUPATION

Group

06: AGRICULTURAL, ANIMAL HUSBANDRY, FORESTRY WORKERS, FISHERMEN AND HUNTERS

Occupation

Quantity

Cultivator

1

US

7 10 105

US S SS

7

SS

Farmer

Fisherman/Sailor Fishing/Fisherman Gardener Total

130

Croup

- 315 -

Table

Major

15:

CLASSIFICATION OF EACH TRADE BY TYPES OF SKILL UNDER EACH MAJOR GROUP OF OCCUPATION

Group 07/08/09: PRODUCTION AND RELATED WORKERS, TRANSPORT EQUIPMENT OPERATORS AND LABOURERS

Occupation Agriculture Labour Air Conditioning and Refrigeration Aircraft/Airframe Aircraft Maintenance Mechanic Aluminium Fabricator Aluminium Fitter Aluminium Worker Armament (Defence) Armature Winder Assembly Operator (Weaving) Assistant Carpenter Assistant Denter Assistant Driller Assistant Flter Assistant Mason Assistant Mechanic Assistant Painter Assistant Panel Beater Assistant Rod Binder Auto Electrician Baker Bakers' Helper Bar Binder Batching Plant Operator Bell Captain Binder (Printing Press) Blacksmith Block Labour Block Maker Boiler Attendent Boiler Man Book Binder Brick Maker Bulldozer Driver/Operator Butcher Cable Jointer Car Denter Car Electrician Car Mechanic

Carpenter Carpenter Helper

Quantity

58 Mechanic

Group

1

US S S S S S US S S S SS SS SS SS SS

4

SS

1 1 1

SS SS SS

5

S

10 1 1 1 2 1 1 1 2 1 1 1

4

4

SS

2 8 1 1 1

US S S SS SS

4

S

1 17 1 1 2

US

5 3

S S

1

SS

2 1 1 2

S S S S

244 1

S SS S SS

S US

- 316 -

Table 15: CONTINUATION Quantity

Occupation

Group

Carpet Fitter Chain Man Chemical LaboratoryTechnician Chief Mechanic Maintenance Compositor Concrete Foreman ConcreteWorker ConstructionForeman

1 1 1 1 2 1

Crane Operator/Driver Cushion Maker

4

SS US US S S S US S S

1

US

Denter

9

S

D.D.E. Operator Diesel Mechanic Dispenser Dispenser/Assistant Distiller Plant Dock Worker Draftsman Drilling Labour

Operator

Driver Driver Driver Dumper Dyer

(Drill) (Scraper) Operator

Electric and Gas Welder Electric Lineman Electric Mechanic Worker Electric Electrician Electrician Foreman Electrician Helper Excavator Fabricator Fiberglass Fitter

Fitter

Maker

(Electrical)

Fitter (Instrument) Fireman

Foreman Fuel Plant

Operator

Gas Turbine Operator Gas Welder Goldsmith Group Supervisor

3 2

1 2 1 1 1 18

S S S SS S SS

5

S

1

SS

135

S

1 1 1 1

S

S S SS

2 1 1 2 201 1 8 1

S SS S US S S US S

4 1 11

S S S

1

S S

3 1

S

27

S

1

S

1 1

S S

4

S

2

S

- 317 -

Table Occupation Heavy Truck Driver/Heavy Driver Heavy Vehicle Mechanic

15:

CONTINUATION Quantity

Group

5

S S

1

Helper

40

US

House

2

S

Insulator

1

S

Jointer

1

S

Khalashi

3

SS

Labour Construction Labour Supervisor Lift Mechanic Operator Lift Lineman

7 2 1 1 2

US US S SS SS

1 1 1 233 2 1

SS SS S S US S

Electrician

Machine Operator Helper Machinist Marine Engine Operator Mason Mason Helper (Carbureter) Mechanic

Mechanic/Operator Mechanical Assembler

99 3

S S

1

S

2 1 2 4

S S S US

Painter Partner Pipe Fitter Helper Pipe Fitter PIP Driving Khalashi Physiology Assistant Plasterman Plumnber Port Labour Assistant Psychiatric

51 1 66 4 1 1 5 26 7 1

S US S US US S S S us S

Radiator Repairer Rigger Roadman Rod Binder Rubber Stamp Maker

1 30 1 58 1

S SS US S SS

Milking

Machine

Operator

Mosaikman Motor Grader Driver Moulder Municipal Labour

- 318 Table 15: Occupation

CONTITUATION Quantity

Gmo-up

Sailor Seaman (Electrician) Shovel Driver/Operator Sign Maker Skilled Labour Skilled Worker Slinger Sorter SpongeMaker Spray Painter Spring Specialist Stableman Steel Binder Steel Cutter Steel Fabricator Steel Fitter Steel Fitter Helper Steel Fixer Steel Worker Survey Assistant SurveyorHelper

4 1 2 1 2 2 1 4 1 1 1 1 3 1 5 10 1 24 1 1 1

US S S SS SS S SS SS SS S S US S S S S SS S SS SS US

Tailor Tailor (Car) Tailor (Gents) Tailor (Master) TechnicalHelper Textile Worker Tile Mixer Tin Maker Tracer Tractor Driver Truck Driver Turbine Electrician Turbine Mechanic Turbine Op erator Turbine Operator (Elect-ic) (Mechanical) Turbine Operator Turner Turner Helper

62 1 1 1 2 27 1 1 1 19 6 1 1 1 1 1 1 1

S S S S SS SS SS S S S S S S SS ss SS S US

Labour

744

US

Electrician Mechanic

1 6

Unskilled Vehicle Vehicle

S S

- 319 -

Table 15:

Occupation Wrap Cutting Operator Wrap KnittingMachine Operator Wraper Weaver Weldler Winchman Windingman Worker Total

CONT=UATION

Quantity 1 2 1 4 57 3 1

5 2,563

Group SS S S

S S SS S US

-

Table

Major

15:

320 -

CLASSIFTCATION OF EACH TRADE BY TYPES OF SKILL UNDER EACH MAJOR GROUP OF OCCUPATION

Group

10:

WORKERSNOT CLASSIFIED BY OCCUPATION

Occupation

Quantity

Group

Demi Chief De-rang

1

Equiper Erector

2 1

S

House Colony

2

US

Local Operator

2

SS

1 14

SS

Senior Worker Grade B Supervisor Tabuk

2

Total

25

Note:

157 migrants' occupations are not available. P T S SS US

-

Professional Technical Skilled Semi-skilled Unskilled

Total number of occupations - 319 Total number of migrants - 3,415

S

Table

16:

Occupation

NUMBER OF PERSONS LEAVING TO GO ABROAD ON EMPLOYMENT DURING

U.A.E.

Qatar

Iraq

Bahrain

Kuwait

Muscat

Iran

Saudi Arabia

1976

Libya

Nigeria

Others

Total

Professional, Technical, Related & Others Doctor/Nurse Engineer Power House Technician Telephone Technician

-

-

72

22

93

270

38

-

4

468 30

12

27

24

-

-

15

-

-

-

-

-

27 585

63

2

10

4 12

44

3 12

12

70 38 48

-

-

-

-

54 5

17

_

-

2,366

70

-

-

-

824

150

117

1

25 3

142

-

532 38

215

Skilled Workers Construction Workers (Skilled) Vehicle Driver

1,609

109

369

116

22

12

120

-

130 25

-

125 85

-

610 150 48

-

_

-

-

-

-

587

338

Semi-skilled Workers Port Worker Catering Worker Agriculture Worker

-

4

-

-

-

-

1

869 543 75

-

483

483

16

512

-

-

26

-

-

-

-

-

-

643

113

281

214

173

-

Unskilled Worker Miscellaneous

Total

1,989

1,221

6,087

Table

NUMBEROF PERSONS LEAVING TO GO ABROADON EMPLOYMENTDURING

16:

U.A.E.

Occupation

Qatar

Bahrain

Iraq

Kuwait

Uganda

Saudi Arabia

Iran

1977 Oman

Nigeria

Libya

Others

Algeria

Total

Technical, Professional, & Others Related Engineer Teacher Doctor/Nurse Power House Technician Telephone Technician Other Professional

98 -

1

11

23

82

-

14

3

-

-

1

-

14

-

-

-

_

-

-

223

191

-

1

43 14 185

32 32

4

19 1

-

-

322

10

-

-

75 608

7

-

1

11

-

-

-

-

516 70

761

26

-

62

-

-

21

-

-

-

-

-

-

-

-

43

31

52

97

21

35

55

1

189

-

-

851 48 225

168 32 37

306 301 333

148 21

17 168 118

135 8 2

26 71

6 _ _

138

-

-

-

-

38 93

610

-

-

-

-

-

-

152

20

556

-

-

Labourers Post Not Known

752 3,279

225

-

-.

710

105 904

Total

5,819

129 70

262

235

2

-

Skilled Worker Construction Worker (Skilled) Vehicle Driver ,Mechanic Semi-skilled

1,795

-

-

-

71

-

17

55

22

4

404 393

-

1

5 1

262

125

159 458

188 128

42

1,238

870

3

339

1,379

718

121

4

10 59

1,795 567 870

Worker

Port Worker Catering Worker

-

648 490

Unskilled Worker

2,262

1,315

703

1,492

-

2,100

1

158

6,903

11

158

15,725

w

}

Table

Occupation

NUMBEROF PERSONS LEAVING TO GO ABROAD ON EMPLOYMENT DURING 1978

16:

Kuwait

Saudi Arabia

U.A.E.

Qatar

120 35 3

-

-

_

_

1

6

119

15

2

6

17 -

75 -

4

7

Iran

Iraq

Libya

Bahrain

Algeria

Nigeria

Uganda

Malaysia

Oman Others

Total

Professional, Technical, Related & Others Engineer (Civil) Engineer (Electrical) Engineer (Mechanical) Engineer (Others) Teacher & Other Professional Doctor Nurse & Paramedical Personnel Administration/ Management & Clerical Staff Technician (Civil) Technician (Power) Technician (Telephone) Technician (Textile) Technician (Others)

6

3 169 21 138 26 -

1

5

-

4 -

38 6

12

15 8

-

-

-

-

210

4 3

23 2 2 3

108 29

1

_ _

7 20

43

61 127

14

-

48

31

29

24

2

44

88 16

-

45 -

3

284

6

133

44

6

-

1

1

6

559

164

945

75

370 419 106 255 125 607

35 15 111 15 -1 23

78 24 17 15 265 111 1 6

18 3 3 194 40

24.

103 12 13

99

-

117 96

9 109 -

1

_

2

17

-

-

11 -

--

_ 1

_ _

2

1

_ _

2

1

-

-

-

-

-

_

-

29 2 6 -

-

-

-

75 8

-

-

_ -

-

_

_

-

1

1

_

5 -

50

4 -

470 223

-

98

-

-

-

-

-

-

-

91

168

9

_

_

17 187 10 215 30 327 6 251 6

9 77 81 114 89 183 331

18 154

6 69 25 54 31 7 39

_

_

_

_

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

67 307 115 281 391 37 203

46

54 100

4

-

-

-

-

53

-

-

-

66

1

3 -

32 -

1

397

166 115 1

112

17

1

2 -

65

428 101 353 34 , 210

2

750

Skilled Worker Welder Cable Jointer Mechanic Electrician Carpenter Mason Vehicle Driver Cook & Catering Workers Rigger/Steel Fixer Pipe Fitter

-

17

37 79

108 78 -

-

_ -

-

-

-

-

-

300

8

1,613 1,315 1,165 1,101 1,308 7 1,007 535 825

Table

Odcupation Semi-skilled

U.A.E.

Kuwait

CONTINUATION

Iran

Iraq

-

-

Saudi Arabia

Libya

Bahrain

Algeria

Nigeria

Uganda

Malaysia

Oman

Others

Total

Worker

Sweeper Unskilled

Qatar

16:

-

7

-

3

-

21

-

-

821 97

387 56

_

_

_

1

762

17

6

-

-

_

_

_

_

12

-

470 568

-

43

Worker

Labourer Miscellaneous

2,234 832

Total

7,512

600 117 1,303

1.048 597 2,243

232 93

84 62

982 1,434

1,587 225 3,152

2,394

2

23

2,877

7,463 3

2,651

22

22,729

4N l

- 325 -

APPENDIX TO CHAPTER II

LIST OF THE COMPLETED TABLES

Table

17:

Level of Remittances and Post Office fron Under Direct Payment

Made by Migrants to Bangladesh Through Banks 1974 to 1979 (Excluding Cost of Goods ITmported or Baggage Rules)

Table

18:

Level of Imports into Bangladesh the Years from 1975 to 1979

Table

19:

Level of Remittances Made by Migrants During the Period frcm August 1978 to

Under

the

Wage Earner

Scheme During

to Bangladesh in September 1979

Cash

or Kind

Table 20:

Countrywise Level of Remittances Made by Wage Earners to Bangladesh Through Banking Channels During the Years 1977, 1978 and 1979 (to September)

Table

21:

Remittances to September

Table

22:

Indicative Exchange Wage Earners Market

Table

23:

Countrywise

Table

24:

Districtwise

Table

25:

Classification of Remittances Received Through Foreign Currency Accounts of Wage Earners

from Bangladesh Under the Wage Earners 1979 for Purposes Other than Imports

Scheme

fram

July

1977

in the Rates of U.S. Dollars and Pound Sterling at the End of EAch Month fran January 1977

Distribution Distribution

of the

Sample

of the

Sample

Account Account

Holders Holders

Table 26:

Distribution of Migrants Interviewed by Hame District

Table 27:

Distribution

Table 28:

Distribution of Migrants Interviewed by Age

Table 29:

Distribution of Migrants by Dependents

Table 30:

Distribution

Table 31:

Distribution of Wage Earners by Occupation and Average Earnings Before and After Ehigration

Table 32:

Distribution of Migrants Abroad by Occupation

Table 33:

Distribution of Migrants by Length of Stay in the Middle East

of Migrants

of Migrants

Interviewed

by Level

by

Country

of Education

of Work

Before

Migration

- 326 -

Table

34:

Distribution

of Migrants

by Their

Level

of Incare

Table

35:

Distribution

of Migrants

by Their

Level

of Expenditure

Table

36:

Distribution

of Migrants

by Level

of Savings

Table

37:

Distribution

of Wage Earners

Table

38:

Average Time Taken in Bangladesh

Table

39:

Distribution

of Migrants

Table

40:

Investnents

in Bangladesh

Table

41:

Distribution

of Migrants

Table

42:

Distribution Their Return

of Migrants by the to Bangladesh

Table

43:

Consolidated and Categorywise Value of Goods Irmported Earners Scheme During the Years from 1974 to 1979

Under

Table

44:

Value

from 197T4 to 1979

of Goods

by the

Imported

by Method

Remittance

Used

Abroad for

Sending

Money to Reach

by Source

of Their

Money

the

Securing

Recipients

Emnployment Abroad

by Migrants by the

Under

Period

They

Profession

the

Intend

to

They Intend

Wage Earners

Scheme

Stay to

Abroad Take up After

the

Wage

- 327 -

SUMMARY OF THE TABLES

Table 17. This Table gives a monthly breakdown of remittances fran 1974 to 1979 by migrants through banks and post office (excluding cost of goods imported under direct payment or baggage rules). From September to December 1974 remittances totalled 12.60 million Taka; in 1975 the total was 184.80 million Taka; in 1976, 358.40 million Taka; in 1977, 1,236.60 million Taka; in 1978, 1,655.90 million Taka and fran January to September 1979 the total was 1,709.50 million Taka.

Table 18. Tmports under the Wage Earner Scheme each month frra 1975 to 1979 are shown in this Table. In 1975 imports totalled 489.37 million Taka; in 1976 they were 736.59 million Taka; in 1977, 1,058.67 million Taka; in 1978, 1,479.12 million Taka; and fron January through September 1979 the total was 1,460.60million Taka. Table 19. In this Table remittancesare broken down into those received through banks, post office, goods imported by direct payment abroad during the months of August through December of 1978 and January through September of 1979. Total remittance amount channelledthrough banks in 1978 was 673.60 million Taka and 1,604.00 in 1979. Remittancesreceivedby the post office in 1978 were 36.10 million Taka and in 1979 were 105.50 million Taka. In 1978, 216.00 million Taka worth of goods were importedby direct payment abroad; in 1979 that figure was 411.80 million Taka. The net inflow for 1978 was 925.70 million Taka, and for 1979 it was 2,121.30 million Taka. Table 20. This Table providesa countrywisebreakdown of remittancesreceived through banking channelsduring 1977, 1978 and 1979. In 1977, 603.93 million Taka (70.61T) was received fran migrants in the United Kingdom; in 1978 this figure was 729.10 millionTaka (47.55%) and during the first nine months of 1979, 666.78 million Taka (39.66%)was received. Remittancesfram Middle Eastern countries totalled 191.36 million Taka (22.37%) in 1977; 650.96 million Taka (42.45%) in 1978 and 821.-56 million Taka (48.87%) in January through September 1979. Migrants in all other countries sent 60.06 million Taka (7.02%) in 1977; 153.36 million Taka (10.00%) in 1978 and 192.91 million Taka (11.147%) in the first nine months of 1979. Table 21. Remittances from Bangladesh under the Wage Earners Scheme for purposes other than imports are given in this Table by six,monthintervals beginning in July 1977 and ending in September 1979. Total remittances fran Bangladesh fram July to December 1977 were 163.49 million Taka. In January to June of 1978 remittances totalled 123.90 million Taka; the total for the second half of 1978 was 77.10 million Taka. 93.90 million Taka was sent fran Bangladeshin the first half of 1979 and 60.30 million Taka in the period fran July through September.

- 328 -

Table 22. This Table lists indicative exchange rates of U.S. Dollars and Pound Sterling in the Wage EArners Market at the end of each month from January 1977 to September 1979. Table 23. In this Table the percentage of sample foreign currency account; holders is contrasted by country with the percentage of overall migrants as report by BMET. Table 24. This Table gives the districtwise distribution of sample foreign currency account holders. 35% of the account holders are from Dacca, 24% from Sylhet, 14% from Chittagong and 13% from Noakhali. Table 25. Remittances received through foreign currency accounts are sent; by demand draft, which takes between 31 and 60 days in 21% of the cases, Mail Transfer, 25% of which take between 21 and 25 days, and Telegraphic Transfer which takes 6 to 10 days 4 5 % of the time and 1 to 5 days 36% of the time. Table 26. 189 migrants were interviewed, and this Table lists 31% as coming from Dacca, 16% from Comilla andl14% from Noakhali. Table 27. Of the migran-.s interviewed 25% worked in Saudi Arabia, 19% in Iran, 15% in Iraq, and 14% in Libya. Table 28. The ages of the migrants interviewed were as follows: 28% were 26 to 30 years old; 28% were 31 to 35; 22% were from 36 to 40 and 17% were 41 and over. Table 29. dependents East.

This Table shows that 66% of the migrants have more than in Bangladesh and .23% have one or more dependents in the

four Middle

Table 30. Of the 189 migrants interviewed, 48% held Professional or Diploma degrees or training. 26' held Professional degrees. Table 31. This Table shows the distribution of wage earners by occupation and average earnings before and after emigration. Top salaries were earned by Professionals (1,790 Taka per month) before emigration and after migration (23,325 Taka per month). Workers classified as Semi-skilled earned the least before emigration (578 Taka per month) and after migration (6,666 Taka per month). Table 32. Technicians

Of the 189 migrants interviewed, and 18% were Skilled workers.

47% were

Professionals,

28% were

- 329 -

Table 33. None of the migrants interviewed stayed in the Middle East for less than one year, 80% stayed for a period of one to two years, and 20% stayed for more than two years. Table 34. 33% of the migrants earned more than 20,000 Taka per month, 32% earned between 5,001 and 10,000 Taka per month and 16% earned between 10,001 and 15,000 Taka per month. Table 35. This Table shows that 34% of the migrants interviewed spent more than 5,000 Taka per month, 26% spent less than 2,000 Taka per month and 18% spent between 2,001 and 3,000 Taka per month. Table 36. The level of savings of the migrants is as follows: 32% save more than 10,000 Taka per month; 21% save between 2,001 and 4,000, and between 6,001 and 8,000 per month; and 12% save between 4,001 and 6,000 Taka per month while they are abroad. Table 37. 50% of the migrants interviewed use Drafts to remit money to Bangladesh. 34% use a variety of methods, and 13% use Mail Transfers. Table 38. Remittances, on the average, take 37 days to reach the recipients and 49 days by Mail Transfer. Transfer and Draft, in Bangladesh by Telegraphic Table 39. Of the 189 migrants interviewed 54% secured employment abroad through BIMET,12% through relatives abroad and 11% through a recruiting agent or their own efforts. Table 40. This Table shows that of the total investment made in Bangladesh by migrants 54% (8,452 Taka) goes for land and building and 35% (5,579 Taka) is deposited in savings or fixed bank accounts. Table 41. Migrants were asked how long they intended to stay abroad and responded as follows: 37% said less than one year, 18% were undecided, 11% intended to stay from 3 to 4 years and 10% said they would stay 2 to 3 years. Table 42. 43% of the migrants interviewed said they intended to return to their old profession after they returned to Bangladesh; 39% said they would like to introduce private bus service. Table 43. The value of goods imported under the Wage Earners Scheme by consolidated categories are shown in this Table. From July through December 1974, 104.85 million Taka worth of goods was imported; in 1975 the figure was 489.37 million Taka; 734.39 million Taka was imported in 1976; 1,058.67 million Taka in 1977; 1,479.12 million Taka in 1978 and 968.87 million Taka from January through June of 1979. Table 44. This Table gives the full list of goods imported under the Wage Earners Scheme from July 1974 through June 1979. The value of the consolidated categories of goods have been given in Table 43.

- 330 -

Extract from the Import Policy Order for July-December 1974 issued by the Ministry of Commerce (Foreign Trade Division), Goiernment of the Peoplets Republic of Bangladesh. 23.

(a)

Import

by Bangladesh Nationals from their Earnings Abroad

shall be permitted to import from their earnings Bangladesh Nationals in List IV. The goods can be consigned either abroad the items listed in their own names or in the name(s) of their nominee/nominees who should also be Bangladesh Nationals.

Permit ments:

under this

(i) (ii) (iii)

scheme shall

Applications for issue of Import

be accompanied

by the

following

docu-

Invoice Bill of Lading/Air Consignment Note/Foreign Postal Receipts Original copy of the receipted treasury challan showing

payment

of Import

Licence

Fees as mentioned

in Paragraph

20 above and Import Licence Tax as mentioned in 21 above. (b)

In addition to the facilities mentioned at (a) above, Bangladesla

Nationals maintaining deposit account with commercial bank in accorby the Bangladesh Bank may either dance with the procedure prescribed import goods specified in List IV in his own name or through his nominee. This scheme shall shall not be applicable of Sector Corporations

remain in force up to 31st December, 1974 and employees to Bangladesh Government servants, and other similar agencies.

- 331

-

List IV Items to be imported.out of the

foreign exchange earnings of Banglad.eshNationals.

1. 2. 3.

Industrial raw materials, packing materials and.spares Lubricants including brake fluid. Cotton and synthetic textiles

4. 5.

Cement C.I. sheets

6.

Cigarettes (filter tipped only) Coconut oil (refined) 8. Dry cell batteries including torch/flash lights 9. Electromed.icalapparatus and appliances including X-ray, ECG equipment and parts and accessories thereof 10. Earthenware wash basins, sinks, closets, earthenware pipes and fittirgs thereof excluding bathtubs, but including builders sanitary ware for indoors and parts of such wlareof iron and steel glazed tiles, mosaic materials, N.O.S. mosaic chips and powder 11. Edible oil including butter oil and vanaspti (ready for use) 12. Gramophone records 13. Hardware iron mongery, all sorts including buckles brass water fitting, bolts and nuts,iron and. steel rivets, iron and. steel nails and washers, roofing screw, wood screw but excluding tools, crowncork Kodali (hoe) and nail cutters 14. Homoepathic and.biochemic med.icines including raw materials thereof, neutral glass phials and sugar of milk but excluding cosmetic and.medicated.hair oil 15. Door locks 16. Marine diesel engine and spares 17. Milk food including Ovaltine, Milo, Horlicks and Bournvita 18. Motorcycle and Motor scooters (two wheelers only) 19. Parts and accessories of all automotive vehicles including parts of auto rickshaws 20. Patent and. farinecous food. 21. Photographic films, plates and paper including sensitised paper, photographic chemical and photographic instruments 22. Prussian blue 23. Power pumps 24. Power tillers of the standardised. make 25. Ready-made garments (new) 26. Razor sets and razor blades 27. Requisites and accessories of the following games and sports only excluding playing cards, sports shirts and garments: Cricket, Football, Hockey, Tennis, Badminton, Basketball, Vollyball, Table Tennis, Billiards, Squash, Fisaing (fish hooks only) 28. Second hand clothing (cotton and wooLen) 29. Sacharine (in tablet form only) 30. Soda ash (washing soda) 31. Trucks and buses, microbuses and four wheel drive vehicles (CKD and built up) exclud.ing motor cars

7.

-

32.

33. 34. 35.

332

-

Three wheeler auto rickshaw without body including fare meter Tools and workshop equipment

all sorts Toilet requisites, Tyres and tubes,,all sorts 36. Vegetable and flower seeds 37. X-ray films and plates 38. Spices including Zeera 39. 40.

Smokers requisites including pipe tobacco Electric motors and belt thereof

- 333

-

Table 17: LEVEL OF REMITTANCES MADE BY MIGRANTS TO BANGLADESH TEROUGH BANKS AND POST OBFFCE FRCM 1974 TO 1979 (EXCLUDING COST OF GOODS IMPORTED UNDER DIRECT PAY)ENT OR BAGGAGERULES) (Million Taka) Month

1974

1975

1976

1977

1978

1979

January February March April May June July August

-

11.00 13.10 14.60 18.00 13.10 22.20 20.40 6.50

34.80 23.60 22.80 22.90 26.80 22.20 25.70 24.10

64.90 7(.30 83.90 92.70 90.60 114.70 115.30 112.30

160.80 135.60 141.50 132.60 137.50 121.10 117.10 122.20

172.90 158.00 182.50 170.90 188.30 188.90 193.20 217-40

September October November December

0.60 1.60 4.70 5.70

9.60 17.80 20.10 18.40

20.70 35.10 55.00 44.70

117.70 121.10 10'.90 138.20

124.90 151.90 168.30 142.40

237.40

12.60

184.80

358.40

1,236.60

1,655.90

1,709-50

Total Source:

-

-

-

Statements of the commercial banks compiled by the Exchange Control Department of Bangladesh Bank.

- 334 -

Table

18:

Month

1975

January February March April May June July August September October November December Total

LEVEL OF IMPORTS INTO BANGLADESHUNDER THE WAGEEARNER SCHEKE DURITG THE YEARS FRCM 1975 TO 1979 + (Million Taka)

1976

1977

1978

1979

38.22 39.22 39.23 37-30 35.70 39.10 43.80 26.40 34.10 46.70 52.90 56.70

59.50 53.10 56.70 47-90 52.10 61.00 65.70 68.20 60.00 74.50 68.29 69.60

66.50 56.50 59.90 74.00 81.30 100.47 122.20 123.80 81.30 80.30 100.10 112.30

121.10 89.10 107.02 98.60 127.90 140.30 84.40 113.90 137.20 147.70 162.40 149.50

216.00 136.60 135.00 152.60 178.40 150.20 153.00 158.90 179.90 -

489.37

736.59

1tO58.67

1,479.12

1 460.60

-

+The figures prior to August 1979 do not include the value of goods imported on payment of the costs directlyfrom the migrants' fund.s abroad. Source:

Chief Controllerof Imports and Exports and Exchange Control Department, BangladeshBank.

- 335 -

Table

19: LEVEL OF REMITTANCES MADE BY MIGRANTS TO BANGLADESHIN CASH OR KIND DURING THE PERIOD FROM AUGUST 1978 TO SEPTEMBER 1979

(MillionTaka)

Month 1

Amount Received Through Banks Post Office 2 3

Value of Goods Imported by Direct Payment Abroad 4

Net Inflow 2 + 3+ 4

1978 August September October November December

114.90

Total

46.40 24.80 40.80 57.80 46.00

168.80 149.70 192.70

134.90

7.30 4.80 8.70 7.80 7.50

673.60

36.10

216.00

925.70

163.70 149.60 173.00 162.10 177.30 174.30 183.70 197.30 223.00

9.20

59.00 25.60 25.20 44-40 71.20 40.20 40.70 44.80 60.70

231.90

411.80

2,121.30

120.10

143.20 160.50

226.10

188.40

1979 January

February March April May June July

August September Total Source:

1,604.00

8.40 9.50 8.80 11.00 14.60 9.50 20.10 14.40 105.50

183.60 207.70 215.30 259.50 229.10 233.90 262.20 298.10

The figures in column 2 and 3 are from Bangladesh Bank and those column 4 are from the Chief Controller of Imports and Exports.

in

- 336

-

COUNTRYWISELEVEL OF REMITTANCESMADE BY WAGEEARNERS TO BANGLADESH Table 20: THROUGHBANKING CHAIhELS DURING THE YEARS 1977, 1978 AND 19 !9 (TO SEPTEMBER)+

(MillionTaka)

Country United Kingdom Middle East Saudi Arabia Kuwait UAE Libya Iraq Qatar Iran Bahrain Oman Other Countries U.S.A. West Germany Canada Malaysia Singapore Australia

Total

Jan.-Sept. 1979

1977

7

1978

603.93

70.61

729.10

47.55

666.78

39.66

(191.36)

(22.37)

(650.96)

(42.45)

(821.56)

(48.87)

3.57

12.04

1.42 2.15 2.50 2.43 1.08 -

172.30 67.90 124.40 37.10 59.00 69.00 84.80 21.47 14.99

19.10 5.38 6.59 3.32

1.50 1.05

319.00 95.70 114.98 59.11 93.63 58.46 57.18 15.43 8.07

(60.06)

(7.02)

(153.36)

(10.00)

(192.91)

(11.47)

49.20

5.75

127.30

8.90

140.77 42.88

8.20

30.51 23.93 50.91 12.13 18.38 21.40 20.77 9.24 4.09

5.82 3.06

0.36 1.00 0.62

855.35

2.80

5.95

-

-

12.18

4.75 8.69 2.59 4.13 4.83

5.43

-

2.52 _

-

1-45

-

-

2.22 1.76

-

-

1.25 3.54

100.00 1,533.42

remittances +The figures do not include and funds transferred currency accounts

3.52 3.52 -

3.83

5.52 3.57

5.57

100.00

1,681.25

100.00

deposited locally into foreign to Bangladesh in the form of

goods. This would explain the differencebetween the figures in this Table and Table 17. Source:

BangladeshBank.

- 337 -

Table 21: REMITTANCES FROM BANGLADESH UNDER THE WAGE EARNERS SCBEKE FROM JULY 1977 TO SEPTEMBER 1979 BOR PURPOSES OTHER THAN IMPORTS (Million Taka) July-Dec.

Jan.-June

July-Dec.

Jan.-June

July-Sept.

1977

1978

1978

1979

1979

Cost of Passage 2.99 Travel Expenses 29.30 Miscellaneous Payments 129.90 Transfer to Account Holder l1.30

2.40 36.60 73.60

1.20 55.80 15.70

2.50 82.50 6.70

1.20 54.30 4.20

11.30

4.40

2.20

0.60

163.49

123.90

77.10

93.90

60.30

Purposes

Total Source:

Bangladesh Bank, Exchange Control Department.

_ 338 -

RATES OF U.S. DOLLARSAND POUMDSTERLING IN Table 22: INDICATIVE EXCHANGE THE WAGEEARNERSMARKET AT THE D OF EACHMONTHFROM JANUARY1977 U.S. IDollars Wage :3arners Rate

Month

Pound Sterling Wage Earners Official Rate Rate

Premium 5

1977 January

20.20

35.60

February March April May June

20.20 20.10 22.70 23.60

34-15 34-15 38.40 40.00 41.60

July

August September

25-.65 24X.80 24.40

November

24.55 22.70 22.35

December

20.95

October

42.00 41-75 42.20 39.85

26.65 26.65 26.65 26.65 26.65

26.65 26.65 26.65

34 28 28 44 50 56 58

57

26.65

58

40.10 38.00

26.90 27.35 27.60

48 47 38

38-35 37.85 37.68 36.69 33.93 35.00 35.84

28.70 28.70 28.70 28.00 28.00 28.00 28.00

34 32 31 31 21 25 28

1978 January February

20.30 19.75

March April

20.30 20.60 18.82 18.98 18.95

May June July

August

19 .15

36.89

28.50

29

September October November December

20.40 19.37 191.55 19.50

40.07 38.83 38.25 38.70

29.55 30.50 30-50 30.50

27 25 27

19.60 20.03 20.07 20.35 19.99 19.92 18.85 19.45 19.34

39.00 39.96 41.10 41.60 41.00 42.50 42.75 42.25 42.50

31.10 31.10 31.10 32.00 32.98 32.98 32.98 34.69 34-69

25 28 32 34 24 29 30 22 23

43

1979

January February March April May June July

August September Source:

BangladeshBank, Exchange Control Department.

- 339 -

Table 23:

COUNTRYWISE DISTRIBUTION OF THE SAMPLEACCOUNTHOLDERS Number of Sample Account Holders

Country Saudi Arabia Libya Iran Iraq Qatar UAE Kuwait

Percentage

172

24

77 41 74

11 6 10

72

10 12

83

Percentage of Overall Migrants as Reported by EBMET+

12.57 8.39 3.87 7.31 8.34 32.31 9.13 4.09 12.74

8

Bahrain

62 11

Oman

14

1 2

114

16

1.25

720

100

100.00

Countries the

Outside

Middle

East

Total +Source: People's Source:

Records

Bureau of Manpower, Employment and Training, Republic of Bangladesh. of foreign

currency

accounts

Government

in commercia-, banks.

of the

- 340 -

Table 24:

DISTRICTWISE DISTRIBUTION OF THE SAMPLEACCOUNTHOLDERS Number of Account Holders

Name of the District

Percentage

35

254 172

Dacca Sylhet Chittagong Noakhali Comilla Mymensingh Barisal Faridpur

9

Khulna Kushtia Jessore Rangpur Pabna Patuakhali Rajshahi Dinajpur Bogra Tangail

8 7 4 4 3 2 2 2 1 1

24 14 13 6 2 2 1 1 1 0.5 0.5 0 0 0 0 0 0

720

100.0

98 90 40 12 11

Total Source:

Records

of foreign

currency

accounts

in commercial

banks.

- 341 -

Table 25: CLASSIFICATIONOF REKITTANCESRECEIVEDTHROUGH FOREIGN CURRENCY ACCOUNTSOF WAGEEARNERS Periocl

Involved-

1 to 5 Days 6 to 10 Days 11 to 15 Days I6 to 20 Days 21 to 25 Days 26 to 30 Days 31 to 60 Days 61 to 90 Days

91 Days & Above Total

Source:

Demand Draft Number

77

Mail Transfer Telegraphic N Number % Number

163

8 16

11 17

187

18

39

133 119 87 217 32 12

13 12 8 21 3 1

72 87

1,027

100

345

54 52 7 6

Transfer V

3

34

36

5 11

42 5

45 5

21 25 16 15 2 2

1 2 6 4

1 2 6

-

-

-

-

1100

94

100

5

Records of foreign currencyaccounts maintained. by commercialbanks.

- 342 -

Table 26: Home District Barisal Bogra Chittagong Comilla Dacca Faridpur Jessore Khulna Kushtia Mymensingh Noakhali Pabna Rajshahi Rangpur Sylhet Tangail Total

DISTRIWJTION OF MIGRANTSINTERVIEWEDBY HOME DISTRICT Number of Migrants

Percentage

11

6

5

3 4

7 31 6 4 4 5 6 27 3 5 4 10 3

16 31 3 2 2 3 3 14 1 3 2 5 2

189

100

58

- 343 -

Table 27: Country Bahrain Iran Iraq Kuwait Libya Nigeria Oman Qatar Saudi Arabia Sudan UAE Total

OF WORK DISTRIBUTION OF MIGRANTSINTERVIEWEDBY COTJNTRY Number of Migrants

Percentage

36 29 16 26 1 4 10 48 1 14

2 19 15 9 14 1 2 5 25 1 7

189

100

4

- 344 -

Table 28: DISTRIBUTIONOF MIGRANTS IlTERVIEWEDBY AGE Age Group Under 25 Years From 26 to 30 Years From 31 to 35 Years From 36 to 40 Years 41 and.Over Total

Number of Migrants

Percentage

5

10 52 53 41 33

28 28 22 17

189

100

- 345 Table 29:

DISTRIBUTION OF MIGRANTSBY DEPENDENTS

Number of Dependents in Bangladesh

Number of Migrants

Nil One Two Three Four Above Four

12 6 9 15 23 124

6 3 5 8 12 66

Total

189

100

% of Migrants

Number of Dependents in the Middle East Nil One Two Three Four Above Four

Number of Migrants

% of Migrants

145 5 18 8 6 7

77 3 9 4 3 4

189

100

- 346 -

Table Level

30:

DISTRIBUTION OF MIGRANTS BY LEVEL OF EDUCATION BEFORE MIGRATION

of Education

Non-matric Matriculate Intermediate Bachelor's Degree Masterts Degree Professional Diploma/Training Professional Degree

Number

Total

of Migrants

Percentag

12 3 8 13 14 90 49

6 2 4 7 7 48 26

189

100

-

Table

Occupation Professionals Technicians Skilled Semi-skilled Un skilled

347

-

31: DISTRIBUTION OF WAGE EARNERS BlY OCCUPATION AND AVERAGE EARNINGS BEFORE AND AFTER EMIGRATION (Taka) Average Earnings Per Month Before Emigration 1,7 9D 1,083 776 578 767

Average Earnings Per Month After Migration 23,325 12,987 9,447 6,666 7,300

- 348 -

Table 32: Occupation

DISTRIBUTION OF MIGRANTS ABROAD BY OCCUPATION Number of Migrants

Percentage

Professionals Technicians

89 54

47 28

Skilled

34

18 5

Semi-skilled Unskilled Total

9 3 189

2 100

- 349 -

Table 33:

DISTRIBUTION OF MIGRANTS BY LENGTH OF STAY IN THE MIDDLE EAST

Length of Stay

Number of Migrants

Percentage

Less than 1 Year

Nil

1 to 2 Years

151

80

38

20

189

100

More than 2 Years

Total

-

- 350 -

Table Income

34:

DISTERIBUTION OF MIGRANTS BY THEIR LEVEL OF INCOME

Group

Number

Under Tk. 5,000 Per Month

of Migrants

Percentage

7

4

60

32

Tk. 10,001 to Tk. 15,00C

30

16

Tk.

29

15

63

33

189

100

Tk.

5,001 to

15,001

to

Tk.

Tk.

Above Tk. 20,000 Total

10,000

20,000

- 351 -

Table Expenditure

35:

DISTRIBUTION OF MIGRANTS BY THEIR LEVEL OF EXPENDITURE

Group

Number of Migrants

Percentage

50

26

Tk. 2,001 to Tk. 3,000

34

18

Tk. 3,001 to Tk. 4,000

26

14

Tk. 4,001 to Tk. 5,000

15

8

Above Tk. 5,000

64

34

189

100

Up to

Total

Tk.

2,000

Per Month

- 352 -

Table

36:

Level

of Savings

Up to

2,000

Per

DISTR'IBUTION OF MIGRANTS BY LEVEL OF SAVINGS ABROAD Number Month

of Migrants

PereentaLe

11

6

Tk.

2,001

to

Tk.

4,000

39

21

Tk.

4,001

to

Tk.

6,000

23

12

Tk. 6,001 to Tk. 8,000

39

21

Tk. 8,001

16

8

61

32

189

100

to Tk. 10,000

Above Tk. 10,000 Total

- 353 -

Table Method

37:

DISTRIBUTION OF WAGEEARNERS BY METHODUSED FOR SENDING MONEY

Used

Number

of Migrants

Percentage

Telegraphic Transfer Mail Transfer

3 25

2 13

Draft Travellerts Cheque Private Agent Mixed

93 2 64

50 1 34

187+

100

Total

+Two cases involving no remittance from abroad.were excluded.

- 354

Table

38:

-

AVERAGETIME TAKEN BY THE REMITTANCE MONEYTO REACHTHE RECIPIENTS IlNBANGLADESH

Method Used Telegraphic Transfer Mail Transfer Draft TravellerstCheque Agent

Period

Involved

37 Days 49 Days 37 Days

- 355 -

Table

Source

39: DISTRIBUTION OF MIGRANTS BY SOURCE OF THEIR SECURING EKPLOYMENTABROAD

of Employment

Number of Migrants

Percentage

Bureau of Manpower Recruiting Agent Construction Firm Local Relations Abroad. Delegation Government Own Efforts Direct Recruitment by Foreign Government

102 21 4 23 5 21

54

13

7

Total

189

100

11 2 12 3 11

- 356

Table

-

40: INVESOTPS IN BANGLADESH BY MJIIGRANTS (Thousand. Taka)

% in Nature

of Investment

Agriculture Ind.ustry Business Land andl Building Bank Deposits (Savings Fixed Account) Total

Total

Investment

Total

Relation

to

Investment

100 750 785 8,452

1

5 5 54

5,579

35

15,666

100

cr

- 357 -

Table

41:

DISTRIBUTION OF MIGRANTS BY THE PERIOD THEY INTEND TO STAY ABROAD

Period-

Less than 1 Year 1 to 2 Years 2 to 3 Years 3 to 4 Years 4 to 5 Years More than 5 Years Undecided Total

Number

of Migrants

Percentage

70 17 18 21 16 14 33

37 9 10 11 8 7 18

189

100

- 358 -

Table Nature

42:

DISTRIBUTION OF MIGRANTSBY THE PROFESSION THEY INTEND TO TAKE UP AFER THEIR RETURNTO BANGLADESH

of Profession

Return to Old. Profession Set Up Industry Shop Keeping Introduce Private Bus Service Contracting and. Consulting Business Export-Import and Indenting Business Higher Study

Percentage

58

43

3

2 7

9

Farming

Total

Number of Migrants

4 52 3 2 3 134+

3 39 2 2 2 100

+Out of 189 sample questionnaires, 55 sets do not indicate anything about the future profession to be taken up by the migrants after their return 1,o Bangladesh.

- 359 -

Table

43: CONSOLIDATED AND CATEGORYWISE VALUEOF GOODSIMPORTEDUNDER THE WAGEEARNERSSCHEME DURINGTEE YEARSVROM1974 TO 1979 (MillionTaka)

Categoriesof Goods Tmported

July-Dec. 1974

1975

1976

1977

1978

Jan.-June 1979

72.05

183.90

255.29

194.69

112.08

95.62 25.61

140.11 41.12 622.15

250.82 91.14 942-47

205.16 69.63 582.00 968.87

Essential Consumer Goods 12.11 InessentialConsumer Goods 23.70 Capital Goods 2.79 Raw Materials 66.25

296.09

159.96 38.79 351.74

Total

489.37

734.39 1,058.67 1,479.12

Note:

104.85

The classificationsare based on the followingprinciples: Essential Inessential

consumer goods: consumer

Capital goods: Raw materials:

goodls:

Items of consumption by the general populace. Items of consumption by higher income groups. Items which can be used.more than once and and generate income in future periods, or can be used for further prod-uction. Items which require further processing before they can be put to use or are componentsof a final prod.uct.

- 360 -

Table 44: VALUE OF GOODS IMIPORTEDUNDER THE WAGE EARNERS SCHEME FROM 1974 TO 1979 (MillionTaka) July-Dec.

Name of Goods

1974

ESSENTTIALCONSUMERGOODS Betelnuts Books Drugs & Medicines

Edible Oil Seconcl-hand Clothing Grinding Slones

-

-

Jan.-J-ne

1975

1976

1977

1978

1979

3.78

31.72

25.65

26.94

16.64

0.04 6.11

0.19 2.98

0.11 6.29

0.08 6.78

0.96

10.97

153.69 0.28

76.75

-

-

0.01

0.13

0.01

11.06

62.18

130.95

-

0.03

0.04

0.11

0.32 -

0.06 -

6.01

170.11

0.11

Homeopathic Medicine

0.27 -

-

-

-

5.57

14-95

50.22

Others

-

0.04

0.02

0.02

6.36 0.06

Total

12.11

72.05

183.90

255.29

194.69

112.08

5.80

5.18

Dry Chillies Salt

0.77

INESSENTIAL CONSUMERGOODS Dry Cell Batteries 7.54 Electric Iron ElectricAppliances Electric Accessories Electric Bulb FountainPen Ink 0.51 FountainPen Feeding Bottle Locks 0.17

0.71 1.65 1.96 0.62 1.66

Needles

-

Razor Blades/ Sets 2.92 Spices 5.38 Stationery Torch/FlashLight Vacuum Flask Watches, Clocks andlParts Woolen Fabric/ Blankets Milk Food, Conden0.35 sed Milk Sugar Buttons -

-

0.75

8.51

0.28

0.44 0.94

4-79

-

1.13

0.29

-

1.02

0.354

1.36

3.41

3.35 3.67 0.16 4.22 0.22 3.02 1.18

3.66 1.10 0.77 4.88 0.27 24.84 0.51

1-94 0.55 0.2C 4.68 0.25 2.34_

1.25

1.76 1.07 0.15 4.37 3.01 1.58

2.15 14.34 0.37 0.59 0-75

5-.5 26.57 2.55 1.26 0.69

3.80 28.41 3.31 0.81 0.67

7.30 26.75 3.52 3.94 1.17

6.94_ 12.71 0.28 4.940.63

0.88

1.81

1.24

2.44

2.47

0.93

4.19

0.28

51.75

7.00 -

1.35 34.08 -

0.57 -

-

-

0.13

0.31

-

0.1C)

- 361 Table 44: CONTINUATION Name of Goods

July-Dec. 1974

Filter Cap Cigarettes 0.43 Domestic Refrigerator Fruits 0.40 Gramophone Records 0.56 Imitation Jewellery Musical Instruments Radio Cassette Recorder Ready Made Garments 0.44 Smokers Requisites 0.84 Tape Recorder TelevisionSet Toilet Requisites 0.84 Fish Hooks Glass Bangles Playing Cards Bicycles Motorcycle and Scooter 0.02 Motor Car (New and Second-hand) Tyres and Tubes (ExcludingThose for Bicycles and Scooters) 3.09 Bamboo Painters' Materials Requisites,Accessories for Games 0.21 Vegetable and Flower Seeds Alcoholic Drink Earthenware Paper, All Sorts Others Total

23.70

1978

Jan.-June 1979

5.54

12.66

17.02

1.01 18.54

0.56 13.11

1.27 21.88

3.20 8.33

0.16

0.13

0.09

0-05

-

0.26

0.25

1.03

0.52

-

0.21

0.22

0.16

0.05

0.50

1.13

1975

1976

1977

8.09

6.98

0.17 6.47 1.11

-

-

-

0.83

1.69

1.09

0.82

0.27

1.78 2.03 0.20 -

1.95 -

3.15 -

6.84

3.07

0.89

0.42

2.39

2.01 2.66 0.60 0.63 6.36

-

2.87 0.10 0.27 1.00

3.34 0.15 1.15 2.90

2.44 4-56 0.34 0.53 1.76 3.25

1.36

0.92

0.26

0.86

0.20

18.37

38.18

87.80

28.69

-

-

-

31.55 1.30 0.26

7.86 4.29 0.49

4.99 3.12 0.28

6-52 4.73 o.65

4.71 0.26

0.70

0.31

2.16

0.20

0.25

0.02 -

0.04 -

-

1.07 -

0.37 0.11

-

-

-

0.02 95.62

-

0.16 159.96

0.18 139.51

0.20 250.82

0.82 26.76 0.18 215.16

- 362 -

Table

44:

CONTDTUATION

July-Dec.

1974

Name of Goods CAPITAL GOODS Domestic Knitting Machine Domestic Sewing Ma&chin-e

-

Hardware

0.01

Servicing & Repairing Equipment for Auto Vehicles Tugs and.Passenger Vessels Trucks & Buses Marine Diesel Engine & Spares 0.75 Electric Motors & Belts Thereof -

Jan. -June

1975

1976

1977

1978

1979

-

0.01

0-05

0.14

0.19

-

O.82

0.17 0.47

0.29 1.40

0.89 0.50

0.94 0.1:3

0.12

0.30

-

0.02

4.31

-

0.01

-

2.92

8.17

8.33

46.14

37.55

2.93

1.40

1.06

1.23

1.11

2.82

1.59

3.49

6.23

1.60

-

0.11

0.26

0.31

0.32

O.60

0.49

0.07

0.04

0.02

o.89

0.26

-

-

2.98

1.52

4.68

4.75

0.38

1.18

2.74

2.32

1.81

1.6.4

1.38

3.05

-

7.55

3.82 17.06

2-45 16,44

4.67 19.69

5.00 18.38

-

-

0.34

2.18

Instruments,Apparatus & Appliances (Weighing Scales, etc.) Power Tillers &

Tractors

-

ElectricMedical

Apparatus Office

-

Machines

&

Equipment Scientific

o.63 & Surgical

Instruments

-

Tools & Workshop

Equipment Factory Machines Reconditioned & Machinery Shallow

Engines

Tubewell

-

-

-

0.15

Others

0.02

0.62

0.04

0.02

0.07

0.06

Total

2.79

25.61

38.79

41.12

91.14

69.63

42.50

141.93

172.55

176.85

331.53

192.18

0.74

0.69

0.13

0.48

0.29

0.19

0.19

0.20

8.31

5.98

5.68

3.42

-

RAWMATERIALS Cotton & Synthetic

Textile Cinematographic

Film Pressure

-

Parts Sago Air

-

Lamps & -

0.38

-

-

-

-

-

-

Conditioner

Parts

0.83

3.48

- 363 -

Table 44: Name of Goods

July-Dec. 1974

G.I. Pipe

-

Television

-

1977

1978

Jan.-June 1979 10.81

4.1o

2.75

1.61

7.45

2.48 18.03

12.99 1.30

7.94 0.12

8.43 o.98

2.93

2.79

6.18

2.84

1.07

0.88

1.28

1.82

1.70

1.11

0.66

o.48

0.06

0.31

0.40

0.09

0.21

0.43

1.02

-

1.28

1.81

6.42

3.83

-

1.07

1.37 2.03

1.33 52.94

1.o8 0.12 0.41 -

-

-

-

2.04 3.74 0.97

5.02 0.81 0.03

7.58 1.59 0-57

1.15

11.00 2.39

18.71

-

Parts & Accessories of Automotive Vehicles 9.12 Accumulators& Batteries PhotographicInstruments & Chemicals Power Pumps & Spares 0.09 Spare Parts for

1976

14.62

-

Marble Stone/Chips, Mosaic Tiles/Chips/ Powder & Glazed Tiles 0.15 Cement 0.42 C.I. Sheet 0.16 Bicycle & Scooter Tyres & Tubes Bicycle Parts

1975

CONTINUATION

-

Ball Roller & Tapper Bearing

-

IndustrialSpares 2.08 Typewriter Parts

-

Coal Electric Insulating Materials MedicinalHerbs & Crude Drugs Sewing Thread in Hands Only

-

Optical Lenses & Frames 0.02 Cotton Yan- 80 Count & Above

-

8.08 -

5.45 -

-

0.01

0.93

2.74

-

0.32

0.10

1.52

0.30

0.17

0.43

0.74

1.15

1.75

1.68

1.95

2.98

-

0.26

0.01

O.O(

0.18

8.63

8.64

2.83

-

8.21

-

4.32

0.03

1.80

2.32

0.34

1.16

0.10

-

Aluminium Ingot Sheet

--

-

PhotographicFilms, Plates

& Papers

Cotton Yarn Below 80 Count Coconut Oil Dyes & Chemicals Iron & Steel Materials

-

-

-

-

-

-

-

0.92

250.87

231.31

1.40

2.21

17.14

5.42

30.26

59.38

23.36

66.06

71.65

11.99

6.96

9.12

1.87

29.38

-

-

- 364 -

Table 44:

CONTINUATION

July-Dlec. Name of Goods Soda Ash

Thermo-plastic

Jan.-June

1974

1975

1976

1.44

2.24

0.83

1977

1978

1979

-

1.97

-

6.67 1.58 0.34

1.04 2.06 0.60

0.14 0.17 0.58

1.88 0.26

0.23

0.12

Moulding

Compound Wax Parafin Arrowroot

5.56

13.81

13.51

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1.18

4.37

-

-

-

-

0.50

-

-

0.20

1.07 16.50 0.62 0.29 2.16

-

Formica (Laminated Plastic Sheet) G.I. Wire Glue Gum & Resins Limestone

-

0.96

Lurex/Silk/Acrylic Yarn

Manila & Other Pigment & Dry ColourPetroleum Jelly M.S. Billets Lubricants 0.18 Wood & Timber Ropes

Nylon Twine/Yarn

-

-

0.iO -

0.79 0.57

4.12

0.14 -

0.76 0.60

1.80 0.30

2.69

0.29

0.18

0.13

4.74

0.17

0-30 7.62

0.21

0.26

139.88

164.40

942.41

581.75

0.49

X-ray Films & Others

-

0.03

-

Duplicating Stencils Art Silk

Asphalt Tar/Felt Other Raw Materials Total

-

10.09

66.25

-

-

-

54.33

47.65

96.11

351.74

622.15

-

296.29

0.01 -

- 365 -

APPENDIX TO CHAPTER V

LIST OF TEE COMPLETED TABLES

Table

45:

Ektent of Under7staffing Reported in 1978

Table

46:

Estimated

Table

47:

Volume of Unemploynent

Table

48:

Ideally

Table

49:

Number of Persons

Table

50:

Estimated

Table

51:

Total

Number of

Table

52:

Total

Number of Jobs

Table

53:

Total Number

Table

54:

BreaLdown

of the

Occupational

Table

55:

Breakdown

of the

Econcnic

Table

56:

Estimated Eaperience

Availability as of 1983

and Requirement (Alternative 1)

of Manpower

by Iength

of

Table

57:

Estimated Availability and FRequirement 2) Experience as of 1983 (Alternative

of Manpower

by Length

of

Overall

Under-staffing

Required

in

in 1978

1978

Experience

Mix

Reported

to

Have Gone to

the

Middle

East

with

Jobs

of Migration

Size

Jobs

of Posts

as of 30 in the Vacant

June

1978

Reporting in the

Organisations Reporting

as of 30 June

Organisations

Classes

Sectors

1978

-

366 -

SUMMAvRYOF THE TABLES

Table 45. This Table reports that in 1978 there were 642,509 positions in the reporting organisations, 60,920 (9.48%) of which were vacant in that year. The Table gives a breakdown by occupation of these vacancies. Table 46. In 1978 there were 900,974 jobs in the economy, 85,467 (9.48%) of which were vacant. "2hisTable gives a breakdown of these vacancies by occupation. Table 47. This Table shows the volume of unemployment in 1978 broken down by occupation. The total number of job seekers was 1,406,161. Given the total number of job openings as 900,974, the number of unemployed job seekers was 505,187. Table 48. The ideally required experience mix is set forth in this Table for eight job categories and sub-groups within those categories. Table 49. The number of persons reported to have gone to the Middle East with jobs is given in this Table as 9,313 people from among 14 occupation classes. Table 50. The 14 occupational classes are used in this Table on the estimated size of migration. There were 642,509 positions in the reporting organisations; 9,005 people were reported to have migrated (1.40%). The total number of positions in.the economy was 900,974 and the estimated size of migration was 12,667. Table 51. This Table b:^eakE' down the total number of jobs in the economy as of 30 June 1978 by 14 occupational classes. The totals are as follows: Primary 26,302; Economic Overhead 171,202; Socio-economic Infrastructure 373,699 Manufacturing 91,503; F:Lnance 34,401; Administration 192,286 and Miscelleaneous 11,581. Table 52. The total nunber of economic sector jobs in the reporting organisations as of 30 June 1978 are broken down in this Table by 14 occupational classes. The totals are as follows: Primary 19,480; Economic Overhead 120,283; Socio-economic Infrastructure 269,448; Manufacturing 64,516; Finance 25,618; Administration 134,331 and Miscellaneous 8,833. Table 53. This Table breaks down the total number of economic sector posts vacant in the reporting organisations by 14 occupational classes as follows: 27,073; Primary 1,704; Economic Overhead 10,598; Socio-economic Infrastructure Manufacturing 5,951; Filance 2,259; Administration 12,555 and Miscellaneous 780.

- 367 -

is

a list

of the

breakdown

of the

14 occupational

classes.

Table

54.

This

Table

55.

This is a list of the breakdown of the seven economic sectors.

Table 56. The estimated availability and requirement of manpower by length of experience as of 1983 (alternative 1) is set forth in this Table. Twenty-two occupational classes are divided into groups of less than five years experience, between five and ten years of experience, 10 to 15 years of experience and more than 15 years experience. These headings are further broken down into ideal figures and actual figures. Table 57.

This Table is the second alternative to that set forth in Table

56.

- 368 -

Table

45:

EXTENT OF UNDER-STAFFING REPORTED IN 1978 Total Number of Positions in the Reporting

Type

Organization

Post Grad.uate Medical Specialists Graduate Doctors Medical Technicians

391

4,547 9,910

Engineering Graduates EngineeringTechnicians Engineering Craftsmen Fibre Technologists AgriculturalProfessicnals M.A.s in Natural Scierces M.A.s in Economic Sciences MJ.A.sin Social Sciences M.A.s in Humanities Trained School Teachers Generalists

5,908 12,422 127,214 3,501 6t538 6,377 5,026 3,846 3,949 189,678 263,202

Total

642,509

Number

of Posts

Reported Vacant

Vacant Positions as Percentage of Total Number of

Posts Reported

128 546

32.74 12.01

1,486 828 2X001 9,427 387 458 588 411 426 248 24,373

14.99 14.01 16.11 7.41 11.05 7.01 9.22 8.17 11.07 6.28 10.34 9.26

60,920

9.48

19,613

- 369 -

Table

46:

ESTIMATED OVERALL UNDER-STAFFING IN Total

Type

Number

of Jobs in the Economy

Reported

1978

Rate

of Und-erstaffing

Estimated Total Under-staffing

Post GraduateMedical Specialists 506 GraduateDoctors 7,917 MedicalTechnicians 14,363 Engineering Graduates 7,984 Engineering Technicians 17,496 Engineering Craftsmen 179,792 FibreTechnologists 4,862 Agricultural Professionals 8,717 M.A.s in NaturalSciences 8,857 M.A.s in EconomicSciences 7,079 M.A.s in SocialSciences 5,128 M.A.s in Humanities 5,562 Trainedl SchoolTeachers 267,152 Generalists 355,559

Total

900,974

32.74 12.01 14.99 14.02 16.11 7.41 11.07 7.01 9.22 8.17 11.07 6.28 10o34 9.26

166 951 2,153 1,119 2,819 13,323 538 611 817 578 568 349 27,624 33,851

9.48

85,467

- 370 -

Table 47: Type

VOLUME OF UNEKPLO)9E&T IN 1978

Total Number of Job Seekers

Post GraduateMedical Specialists.

411

7,017 10,105 7,856

Graduate Doctors Medical Technicians Engineering Graduates Engineering Technicians Engineering Craftsmen Fibre Technologists Agricultural Professionals

Total Number of Job Openings

506 17,917

Generalists

1,181,545

14,363 7,984 17,496 179,792 4,862 8,717 8,857 7,079 5,128 5,562 267,152 365,559

Total

1,406,161

900,974

16,211

24,877 1,041

7,705

M.A.s in Natural Sciehces

10,232

M.A.s in Economic Sciences M.A.s in Social Sciences M.A.s in Humanities

11,855 14,086 10,427

Trained School Teachers

102,793

UnemploT ent

-95 -goo -4,258 -128

-1,285 -154,915 -3,821 -1,012

+1,375 +4,776 +8,958 +4,865

-164,359 +815,986 505,187

- 371 -

Table I.

IDEALLYREQUIREDEXPERIE[CE MIX

48: Post

Graduate

Medical

Specialists Associate Professor

Assistant Professor

10

3

-

1

7

2

Assistant Surgeon

Clinical Assistant

Professor Years of Experience

Ideal Ratio

II. Graduate Doctors Civil Surgeon Years of Experience Ideal Ratio

12

3

-

1

100

1:1 With Professors/ AssociateProfessors

III. Medical Technicians For medical techniciansholding professionaldegree or certificates,no experience is required for any post meant for them. IV. GraduateEngineers

Chief Engineer Years of Experience Ideal Ratio

18 1

Superintending Engineer

Executive Engineer

12 5

7 15

Assistant Engineer 125

V. EngineeringTechnicians For engineeringtechniciansholding a diploma in engineeringtechnology,no experience is required for any post meant for them.

- 372 -

Table 48: CONTINUATION VI.

Years

Engineering

Foreman/ Equivalent

Head Mechanic/

15

10

-

1

5

125

Equivalent

Ratio VII.

Fibre

Technologists

Weaving Master/ Spinning Master/ Dyeing Master Years

Asstt. Asstt. Asstt.

WM/ SM/ DM

Supervisor

of

Experience Ideal

Mechanic/ Equivalent

of

Experience Ideal

Craftsmen

Ratio VIII(A): (Positions Headquarters Officers

Years of Experience Ideal Ratio

15

7

-

1

5

50

Agricultural outside

Professionals

teaching

Divisional Officers

15

District Officers

10 4

1

and research) Sub-divisional Officers

Thana Officers

5

3

-

20

60

475

VTII(B): AgriculturalProfessionals(Teachingand Research), Engineering Professionals (Teaching and Reset.rch), Professionals in Natural Sciences,

Economic Sciences, Social Sciencesand Humanities.

Professor/ Equivalent Ideal Ratio Share of Ph.D.s Years of Experience Share of M.A.s Years of Experience

Associate Professor/ Equivalent

2

3

75%

75% 5

c 25F 15

25% 10

Assistant Professor/ Equivalent

Lecturer/ Equivalent

10

10

50% 50% 5

100

-

Table

Tvye Post Graduate Medical Specialists Graduate Doctors Medical Technicians Graduates Engineering

Engineering Technicians EngineeringCraftsmen Fibre Technologists AgriculturalProfessionals M.A.s in NaturalSciences M.A.s in Economic Sciences M.A.s in SOcial Sciences M.A.s in Humanities Trained School Teachers Generalists Total

49:

NUMBER OF PERSONS REPORTED TO HAVE GONE TO THE MIDDLE EAST WITH JOBS Economic Overhead

Primary

847

77 728 898 94

894

16

2,006

21

-

-

-

_ -

-

44 79

123

_

-

-

_

Socio-economic Infrastructure

20

6 16

-

-

manufacturing

Finance

Administration

Miscellaneous

Total

-

77 728 898 1,184 1,405 4,555 148 126 175 17

_

_

-

-

243 495 2,484 148 41 139

-

_ -

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

17

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

17

_

3,767

1,856

3,550

-

9,313

Table

Pypo

1

50:

in the Number of Positions llReporting Organisations 2

ESTIMATED SIZE OF MIGRATION Number Reported Have MiRrated 3

Post Graduate Medical Specialists Doctors Graduate Medical Technicians Engineering Graduates Technicians Engineering Engineering Craftsmen Fibre Technologists Agricultural Professionals Sciences M.A.s in Natural M.A.s in Economic Sciences M.A.s in social Sciences M.A-s in Humanities Trained School Teachers Generalists

391 4,547 9,910 5,908 12,422 127,214 3,501 6,538 6,377 5,026 3,846 3,949 189,678 263,202

77 728 898 876 1,405 4,555 148 126 175 17

Total

642,509

9,005

-

Total

to 3 as % of 2 4 19.69 116 01 9.06 14.83 11-31 3.58 4 23 1.93 2.74 0.34 -

_ _

-

-

1.40

Number of Positions in the Eoonomv 5 506 7,917 14,363 7,984 17,496 179,792 4,862 8,717 8,857 7,079 5,128 5,562 267,152 365,559 900,974

Size Estimated migration 6 100 1,025 1,301 1,184 1,978 6,436 208 168 243 24 -

-

12,667

of

Table 51:

Medical Specialists Graduate Doctors Medioal Technicians Engineering Graduates Technicians zPgineering Engineering Craftsmen

Post

Fibre

Graduate

Technologists

Professionals Agricultural M.A.s in Natural Sciences M.A.s in Economic Sciences Sciences in social M.A.s in Humanities

Primarv

Eoonomic Overhead

-

-

205 240 302 318 2,265

Socio-Uconomic Infrasttucture 506

116 414 4,399 8,796 97,591

6,827 12,796 1,002 1,676 15,t74 79

_

-

TOTALNUNEEROF JOBS AS OF 30 JUNE 1978

4,874 382 378

610 391 384

2,392 6,434 4,235

5

2

5,116 5,346

M.A.s

-

Trained School Teachers Generalists

2 17,331

Total

26,302

-

Manufaoturina

Finance

-

-

448 716 1,843 3,575 34,161 4,601

756 1,570 968 _

administration

-

228 1,924 -

49 -

738 -

Total 506

-

-

89 4

MI cellanwous 67 4 24 30 162

165 187 408 2,873 28,515

7,917 14,363 7,984 17,496 179,792

182

-

4,862

36 80 348

-

8,717 8,857 7,079

5 216

-

-

28

5,128 5,562

219 58,280

266,537 45,577

370 42,495

31,363

24 159,247

11,266

267,152 365,559

171,202

373,699

91,503

34,401

192,286

11,581

900,974

AS OF 30 OF JOBS IN THE REPORTINGORGANISATIONS Table 52: TOTALNUMBER Primary

Tyre Medical post Graduate Doctors Graduate Medical Teohnioians Graduates Engineering Engineering Engineering Fibre

Specialists

Technicians Craftsmen

Technologists

Professionals Agricultural Sciences M.A.s in Natural M.A.s in Economic Sciences M.A-s in Social Sciences M.A.s in Humanities Trained School Teachers

Economio Overhead -

-

77

147 i62

284

227 217 1,705

3,254 6,207 69,828 470 274 285 3.

282 273 7 -

Generalists

57 12,792

Total

19,480

391 3,774

-

94 39,507 120,283

Manufacturin&

-

754 1,207 10,737 1,814 4,651 2,948 3,831 3,787 189,052 37,611 269,448

Finance

496

1,356 2,574 24,183

3,310 572 1,106 722

Administration

66 4 6 140 1,374

43

Miscellaneous 47

117

Total

391

_

-

-

319

8,83i

60

-

-

3,611

Socio-Eoonomic Infrastructure

JUNE1978

4,547

132

i

9,910

297

14

5,908

2,057 19,209 131 28

20 178

12,422 127,214

-

3,501

-

23,451

5 162 76 111,808

8,554

6,538 6,377 5,026 3,846 3,949 189,678 203,202

25,618

134,331

8,833

642,509

64

_

534

-

-

_

_

399 29,479 64,516

-

-

245

1.9 -

Table53: TOTALNUMBER OF POSTS VACANTIN THE REPORTINGORGAWISATIONS Type Post

Primary Graduate

Medical

Specialists

Graduate Dootors Medioal Teobnioians EngineeringGraduates EngineeringTebknioians Engineering Craftsmen Fibre Technologists Agricultural Professionals M.A.s in Natural Sciences K.A.s in Economic Sciences M.A.s in Social Sciences M.A.s in Humanities

-

Economic Overhead

128

-

18 24 32 37 121 _ 256

10 43

454 1 ,005 5,109 -

32

26

26

22 1

23

_

Trained School Teachers Generalists

1,167

Total

1,704

-

socio-Economic Infrastructure

-

_

18 3,878 10,598

Manufacturing -

Finance

-dministration

-

453

37

1,322 105 192 803 6 126 427 245 424

76 191 409 1,795

-

8 1 1 26

97

366 39

-

103

_

3

57

42

3 4 11 -

387

-

458

6

-

2,061

27,073

5,951

2,259

12,555

-

-

546 1,486 828 2,001 9,427

2

34 2,844

-

6

15

19,555 3,049

238

-

Total 128

-

14 20 42 328 1,491

20 1 10 6 10,600

-

Misoellaneous

588

2

411 426 248

-

754

19,613 24,37)

780

60,920

-

-

Table I.

134: Post

378 -

EREAKDOT4OF THE OCCUPATIONALCLASSES

Graduiate

Medical

Specialists

Anaesthesiology Anatomy Dent istry Dearmitology E. N. T. Gynaec ology Medlicine Opt halmology Pat; hology Pediatr ic s PhaIrmae ology Physiology Radciology Radiotherapy Surgery II.

Graduate

Doctors

M. B. B. S. B.ID. S. III.

Medical

Technicians

Compounder Dental Technician Laborat ory Technic ian Lacdy Health Visitor Mid,wif e Nulr s e Pharmac i st Physiotherapy Rac iographer Technician Rac iological Radiotherapy Technician Inspector Sanitary IV.

Engineering B. Sc . B. Sc. B. Sc. B. Sc. B. Sc. B. Sc. M. 'c . M.Sc.

in in in in in in in in

Graduates Arrchitecture Engineering Chemical Ci-vil Engineering ELectrical Engineering Engineering Mechanical Metallurgy Chemistry Applied Applied Physics

-

V.

Engineering Diploma in Diploma in Diploma in Diploma in Diploma in Diploma in Diploma in Diploma in Diploma in Diploma in Diploma in Diploma in Diploma in Diploma in Diploma in Diploma in Sub-overseer

VI.

Engineering

379 -

Technicians Architecture Architecture Draftsmanship Autodiesel Technology Automobile Technology Building Technology Chemical Technology Civil Engineering Electrical Installation and Maintenance Electrical Technology Farm Technology Industrial Wood Machineshop IMIechanical Technology Power Technology Radio Electronics Survey Technology

Craftsmen

Armature Winder Auto Electrician Auto Mechanic and Vehicle Operator Automotive Trades (Auto Mechanic & Diesel Mechanic ccmbined) Blacksmith Carpenter Die Maker Diesel Mechanic Draftsman, Mechanical (Wireman & Armature Winder combined) Electrician Farm Machinery Mechanic Foundry and Moulding Gas and Arc Welder General Mechanic Hand and Machine Forging Machine Shop Practice (Turner and Machinist combined) Machinist Plumber and Pipe Fitter Power Pump Operator Electronics Radio Television Tool Maker Turner Typewriter and Office Equipment Mechanic Watch and Clock Repairer Welding and Sheet Metal (Welding and Sheet Metal combined) Wireman, Fouse Wiring

- 380 -

VII.

Fibre

Technologists

Diploma Diploma Diploma VIII.

in Jute Technology in Textile Chemistry in Textile Technology

Agricultural

Professionals

B.Ag. B.Sc. (Agricultural Engineering) B.Sc. (Animal Husbandry) B.',c. Honours (Forestry) B.Sc. (Veterinary Science), D.V.M. Diplcma in Agriculture M. Ag. M.Sc. (Agricultural Economics) M. Sc. (Animal Husbandry) M.',c. (Veterinary Science) IX.

Master

s Degree

Holders

in Natural

Holders

in

Sciences

Biochemistry Bot any Chemistry Geography Geology Mathematics PhELrmacy Physics Soil Sciences Zoology X.

Master

s Degree

Economic

Sciences

Accountancy Dusiness Administration Economics Management Stetistics XI.

Master

s Degree

Holders

History International Relations Islamic History Political Science Psychology Public Administration Social Welfare/Social Sociology

in Social

Work

Sciences

- 381 -

XII.

Master's Degree Holders in Humanities Arabic and Islamic Studies Bengali English Philosophy Sanskrit and Pali Urdu and Persian

XIII.

Trained School Teachers B.Ed., B.T. B.P.Ed. (Physicial Education) C.Ed. Diploma in Physical Education H.C.Ed. M.A. (Education) M.Ed.

XIV.

Generalists B.A. (Pass) B.Com. (Pass) B.Sc. (Pass) H.S.C. (all others) H.S.C. (Science) S. S.C.

- 382 -

Table I.

55: Primary

BRhAKDOWN OF THE ECONOMIC SECTORS Sector

Agriculture Fisheries Forestry Livestock IT.

Economic Overheads Construction Postal Services Power Telecommunication Transport Water

IIT.

Socio-econcamic

Infrastructure

Agricultural Education tngineering Education Health Higher Education(General) Primary Education Research Organizations Secondary Education Social Welfare IV.

Manufacturing Chemicals Engineering Jute Industries Miscellaneous Industries Small Industries Textiles

V.

Finance Audit and Accounts Banking Finance

VI.

Administration General Government Administration Semi-government Administration

- 383 -

VII.

Miscellaneous Advertising Chartered Hot el s Indenting Newspapers Travelling

Firms Accountant Firms Agents

Firms

Table TYLe

56:

BY LENGTHOF EXPERIENCEAS OF 1983 (ALTERNATIVE1) ESTIMATEDAVAILABILITY AND REQUIREMENTOF MANPOWER Less than Ideal

72B POst Graduate Medical Specialists 8,608 Graduate Doctors 19,982 Medical Technicians 317 Ph.D.s in Engineering Graduates En6ineering 634 (Education and Research) Engineering Graduates 8,849 (Other than Education and Research) 26,616 Technicians Engineering 265,496 Emgine.ring Craftsmen 5,316 Fibre Technologists 802 Ph.D.s in Agriculture Agricultural Professionals 1,604 and Research) (Education Professionals Agricultural 9%971 and Research) (Other than Education 2,600 Ph.D.s in Natural Sciences 5,199 M.Sc.e in Natural Sciences 2,202 Ph.D.s in Economic Sciences 4,404 M.A.s in Economic Sciences 1,621 Ph.D.s in Sbcial Sciences 3,210 K.A.s in Social Sciences 1,605 Ph.D.s in Humanities 3,210 M-.As in Humanities 121,224 Trained School Teachers 182,794 Generalists

Five Years Actual 400 12,000 10,000 44 6,500 14,000 35,000 1,400 49

5 & 10 Years Actual

Between Ideal -

_ -

143 317 1,770 532 360

160 3,879 4,310 62

81 80 -

95 47

3,666 5,238 6,827 168 71

10 & 15 Years Actual

Between Ideal

354 -

10,620 241

97 1,528 1,518 58

More than Ideal

1,427 5,369 5,361' 221 82

154 3,123 4,279 39

32

-

15 Years Actual

71 -

2,124 106 -

2,763 5,604 12,689 652 26

Total Ideal

Actual

809 8,686

19,9B2 555 1,030 11,044 26,616 278,240 5,954 1,403

811 20,530 2v,iu5 203 -

14,356 30,211 59,877 2,441 228

1 w X

8,000 96 12,000 32 16,000 41 10,000 19 10,000 72,000 250,000

802 373 1,170 2,599 990 1,622 729 1,605 722 1,605 121,224 182,794

3,270 98 3,689 44 6,558 49 4,099 23 4,099 39,934 221,215

120 75 780 390 661 243 487 241 482 241 36,367 54,838

80

1,613 151 2,668 52 2,477 54 2,566 20 2,566 30,513 299,885

19 -

260 -

220 -

162 161 24,244 36,559

-

2,679 197 3,718 13 3,53t 44 4,926 17 3,602 31,986 660,445

2j606

-

10,438 4,550 8,448 3,853 7,156 2,837

15,562 442 22,073 141 27,p20 t88 25,93g 79 20,265 174,432 1,431,545

5,270 2,809 5,217 303,059 456,985

Table

TvDe

57:

BY LENGTII OF EXPEIBNCE AS OF 1983 (AtERMNAIVE 2) OF MANPOWER ESTIMATEDAVAILABILITY AND REQUIREMENT Less than Ideal

819 Post Graduate Medical Specialists 9,364 Graduate Doctors 21,885 Medical Technicians 356 Ph.D.s in Engineering Graduates Engineering 712 (Zducation and Research) Graduates Engineering 9,936 and Research) (Other than Education 29,656 Engineering Technicians 296,809 EngLneering Craftsmen 5,641 Fibre Teahnologists 908 Ph.D.s in Agriculture Agricultural Professionals 1,816 (Education and Research) Agricultural Professionals (Other than Education and Research)11,290 2,876 Ph.D.s in Natural Sciences 5,752 M.Sc.s in Natural Sciences 2,464 Ph.D.s in Economic Sciences 4,928 M.A.s in Economic Sciences 1,819 Ph.D.s in Social Sciences 3,638 M.A.s in Social Sciences 1,770 Ph.D.s in Humanities 3,539 M.A.s in Humanities 126,011 Trained School Teachers 194,984 Generalists

Five Years Actual 400 12,000 10,000 44

Between 5 & 10 Years Actual Ideal -

160 356

-

6,500 14,000 35,000 1,400 49 8,000 96 12,000 32 16,000 41 16,000 19 10,000 72,000 250,000

1,987 -

564 408 908 422 1,294 2,876 1,109 2,464 818 1,819 797 1,769 126,011 194,984

160 3,879 4,310 62 3,666 5,238 6,827 168 71 3,270 98 3,689 44 5,667 49 6,558 23 4,099 39,934 221,215

Between Ideal

10 & 15 Years Actual 91 86

-

107 53 397 11,873 232 272 136 84 863 431 739 369 545 273 531 265 37,803 58,495

97 1,528 1,518 58

More than Ideal

1,427 5,369 5,361 221 82

-

35 79 -

2,374 113 -

1,613 151 2,668 52 2,523 54 2,477 20 2,566 30,513 299,885

154 3,123 4,279 39

-

-

15 Years Actual

2,763 5,604 12,689 652 26

22 287 -

246 -

182 177 25,203 38,998

Actual

910 9,450 21,855 623

811 20,530 20,105 203

1,156 12,399 29,656 311,056 6,398 1,588 2,951

91

-

Total Ideal

2,679 197 3,718 13 3,531 54 4,926 17 3,602 31,986 660,445

14,356 30,211 59,877 2,441 228 -

15,562 11,818 442 5,033 22,073 9,346 141 4,312 27,720 8,007 188 3,182 5,912 25,959 79 3,098 20,265 5,750 174,432 315,028 487,461 1,431,545

X

- 386 -

APPENDIX TO CHAPTER VI

MENA Classification: Project Regional Definition

of Occupation

Occupational Classification System for the Mediterranean

Aggregation

- 387 -

MENA CLASSIFICATION OCCUPATIONALCLASSIFICATION SYSTEM FOR THE MEDITERRANEANREGIONAL PROJECT The following classification system was used in the OECD Mediterranean Project 11: the system categorizes all the occupations in the ISCO 2/ into four groups according to the educational and training requirements of the occupations. All code numbers are those of the ISCO which should be consulted for the detailed content of each occupational category and for the definitions of the occupations. Class A Scientific and Technical Occupations: Architects (unit group 0-01) Engineers (unit group 0-02) Physical scientists and mathematicians (minor group 0-1; occupations O-Y9.35) Biologists, veterinarians, agronomists, and related scientists (minor group 0-2) Professional medical personnel (a) Physicians and surgeons (unit group 0-31) (b) Dentists (unit group 0-32) (c) Other professional medical workers (unit group 0-51, 0-52, 0-59) University teachers, sciences (occupation 0-61.30) Secondary school teachers, sciences (occupation 0-69.40) 3/ Other Occupations: Administrative, executive and managerial workers (major group 1) (a) Administrative and executive officials, government (group 1-0) (b) Directors, managers and working proprietors (minor group 1-1) 4/

1/

Herbert S. Parnes, Forecasting Educational Needs for Economic and Social Development, Organization for Economic Cooperation and Development, The Mediterranean Regional Project, October 1962, 113 pp. 0-

2/

International

fice, 3/

Standard

C2 assification

of Occupations,

International

Labour

Of-

Geneva, 1958, 236 pp.

The ISCO does not differentiate between teachers of science and other teachers at

the secondarylevel. For purposes of the classificationsystem for the OECD project, therefore, ISCO occupation0-69.40 was divided into two sub-groups.

4/

Note that working proprietors in wholesale and retail trade are excluded from this category and includedamong sales workers. Other proprietorswho are not primarily directing and managing enterprisesor services,but principallyperform professional,technical,craft, service or other functionsare also excluded from this category and are classifiedaccordingto the particular function they perform.

- 388 -

University teachers, except sciences (occupations 0-61.20, 0-61.90) Teachers not elsewhere classified, not including elementary and nursery school teachers (occupation o-69.90) Secondary school teachers, except sciences (occupation o-69.40) Economists, professional accountants, actuaries, and statisticians (unit group 0-YE, o-Y 4) Social scientists other than economists (minor group 0-8; unit group 0-Y2, occupation

0-Y9.20,

0-Y9.23,

Artists, writers, Class A workers

pations

0-Y9.26,

and related not elsewhere

0-Y9.29, creative classified

0-Y9.32,

0-Y9.38, 0-Y9.41,

artists (minor (minor group

0-Y9.44,

group 0-9) 0-7; unit group

0-Y3;

0-Y9.47) occu-

0-Y9.50, 0-Y9.59, 0-Y9.90)

Class B Science and engineering technicians and draftsmen (minor group 0-X) (a) Technicians, engineering (occupation (0--iX9.20) (b) Technicians, research laboratory (occupation 0-X9.30) (c) Technicians, industrial laboratory (occupation o-x9.40) (d) Science and engineering technicians not elsewhere classified and laboratory assistants (occuration 0-X9. 90) (e) Draftsmen (unit group 0-41) Surveyors (unit group 0-03) Medical and dental technicians (unit group 0-53- occupation 7-41.45) Nurses, professional (unit group 0-41) Class B workers in transport and communications (a) Deck officers, engineer officers, and ships pilots (minor group 6-0) (b) Aircraft pilots, navigators, and flight engineers (minor group 6-2) (c) Radio communication operators (unit group 6.72) (d) Inspectors, traffic controllers and dispatchers (minor group 6-6, except occupations 6-62.40 and 6-62.50; unit group 6-93) Non-working foremen 1/ Primary and nursery school teachers (occupations 0-69.30 and 0-69.20) Salesmen of insurance and securities (occupations 3-11.20, 3-11.4o, 3-11.70, 3-11.90) Class B workers not elsewhere classified (minor group 9-7; minor group 9-8; except occupation 9-81.90- occupations 0-Y9.35, O-Y9.56, o-Y9.62, o-Y9.65, 0-Y9.90; 7-61.50, 7-69.4o) 2/

1/

There is no category of 'foremen' in the ISCO. Non-working foremen should be classified here. Working foremen are classified in the same occupation as the workers they supervise.

2/

Code number 0-Y9.90 is included here as well as under Class A occupations. This is a residual group, professional, technical and related workers not elsewhere classified. It is intended that professional occupations not elsewhere classified will be included in Class A, while semi-professional occupations not elsewhere classified will be included here.

- 389 -

Class C Clerical workers (major group 2) Sales workers not elsewhere classified (major group 3, except unit groups 3-32 and 3-39 and occupations 3-11.20, 3-11.40, 3-11.70 and 3-11.90) Skilled manual workers Skilled service and recreation workers Athletes, sportsmen, and related workers (minor group 9-6)

Class D Farmers, fishermen,hunters, loggers, and related workers (majorgroup 4) (a) Farmers, and farm managers (minor group 4-0) (b) Farm workers not elsewhere classified (minor group 4-1) (c) Hunters,fishermen,loggers, and related workers (minorgroups 4-2, 4-3 and 4-4) Unskilled sales workers (unit groups 3-32 and 3-39) Unskilled manual workers Unskilled service and recreation workers

- 390

-

DEFIITITION OF OCCUPATIONAGGREGATION The ISCO (1968)3-digit codes correspondingto the proposed occupational groups are shown below: A-1:

Professional and Technical Occupations

0-11, 0-12, 0-13, 0-41, o-42, 0-43, 0-51, 0-52, 0-53, 0-61, 0-63, o-65, o-67, 0-79, 0-81, 0-82, o-83, o-69, 0-21, 0-22, 0-23, 0-24, 0-25, 0-26, 0-27, 0-28, 0-29. A-2:

Other Professional Occupations

1-21, 1-22, 1-29, 1-31, 1-32, 1-35, 1-39, 1-41, 1-51, 1-59, 1-61, 1-72, 1-74, 1-91, 1-92, 1-93, 1-94, 0-95, 1-99, 0-90, 1-10, 2-01, 2-02, 2-11, 2-12, 2-19. B-1:

Sub-professional anc Technician Occupations

0-14, 0-31, 0-32, 0-33, 0-34, 0-35, 0-36, 0-37, o-38,0-39, 0-54, o-62, o-64, o-66, o-68, 0-71, 0-73, 0-75, 0-76, 0-77, 0-84, 4-31, 5-92, 8-61. B-2:

Other Sub-professional 1-33,

C-1:

Skilled 3-00, 3-95, 5-81, 8-33, 9-21,

C-2:

1-34,

1-73,

Office 3-21, 3-99, 5-82, 8-41, 9-61.

Semi-skilled

Occupations

3-10, 3-51,

3-52,

3-59,

5-00.

3-42, 4-41, 7-21, 8-51,

3-80, 4-42, 7-23, 8-52,

and Manual Occupations

3-22, 3-31, 4-00, 4-21, 5-91, 6-oo, 8-42, 8-43, Office

3-39, 4-22, 7-00, 8-44,

3-41, 4-32, 7-13, 8-49,

3-91, 3-92, 4-43, 0-72, 7-31, 7-44, 8-54, 8-55,

Unskilled Occupations

5-51,

5-52,

3-94,

4-90, 6-25, 7-51, 7-79, 8-35, 9-55, 9-89, 7-71, 8-34, 9-54,

5-89, 6-26, 7-52, 7-81, 8-39, 9-56, 5.31, 7-72, 8-57, 9-69,

1-80, 8-32, 8-62,

and MIanual Occupations

o-74, 1-75, 3-60, 4-10, 4-61, 5-10, 5-20, 1-49, 3-70, 6-11, 6-12, 9-85, 5-32, 5-4o,5-70, 5-99, 6-21, 6-22, 6-27, 6-28, 6-29, 6-32, 7-11, 7-12, 7-33, 7-34,7-41, 7-54, 7-55, 7-56, 7-59, 7-61, 7-62, 7-73, 7-74, 7-76, 7-82, 7-83, 7-89, 7-93, 7-94, 7-95, 7-99, 8-02, 8-03, 8-53, 8-80, 8-91, 8-92, 8-94, 8-95, 8-99, 9-02, 9-10, 9-57, 9-59, 9-73, 9-74, 9-79, 9-81, 9-82, 9-83, 9-84, 7-22, 7-24, 7-25, 7-26, 7-27, 7-28, 7-29, 7-42, 7-49, 7-75, 7-78, 7-91, 7-92, 7-96, 8-01, 8-11, 8-12, 8-20, 8-71, 8-72, 8-73, 8-74, 8-93, 9-01, 9-22, 9-25, 9-27, 9-72. D:

3-93, 1-63, 7-45, 8-56,

5-6o, 6-23,

6-31,

6-41,

6749,

6-71,

9-99.

4-52, 6-24, 7-43, 7-77, 8-19, 9-23, 9-86, 7-53, 8-31, 9-41,

- 391 -

APPENDIX TO CHAPTER VIII

LIST OF THE CCMPLETED TABLES

Table

58:

Overseas

Table

59:

Canparative Position Regarding Number of Workers, Remittance per Worker in Selected Countries

Placement

of

Eilippino

Workers Remittance

and

Table 60:

Occupationwise Distribution of Persons Securing Thployiuentin Selected Countries During 1976-78

Table 61:

Wage Ccmparison Between Bangladesh and Middle East Countries

- 392 -

SUMMARY OF THE TABLES

Table 58. This Table shows location and numbers of Filippino workers working abroad from 1969-71 and 1975-77. In 1969-71 there was a total of 6,947 workers in six regions 'Africa, Asia, Europe, Middle East, Oceania, and the Americas) and in 1975-77 there were 40,605 workers in those six regions. Table 59. The comparative position of the number of workers by nine selected countries (UAE, Saudi Arabia, Qatar, Oman, Kuwait, Libya, Iraq, Bahrain and Iran) and amount of remittance by country is set forth in this Table. For all countries the increase in the number of workers during 1976-78 was )44,540. During January - June 1979 remittances from all countries totalled 502.-53 million Taka, and in 1977 that total was 191.36 million Taka. Remittance per worker per month for al:Lcountries was 1,504 Taka. Table 60. Five countries were selected for this Table (Oman, Iraq, Iran., Saudi;Arabia and UAE) and the numbers and percentages of Professional, Skilled and Unskilled workers in those countries is listed. The totals are 6,724 (15%) for Professionals, 15,619 (35%) for Skilled workers and 22,278 (50%) for Unskilled workers. Table 61. This Table compares wages paid in Bangladesh with those paid in eight Middle East dountries by seven occupational groups (Professional, Administrative and Managerial, Clerical, Highly Skilled, Skilled, Semi-skilled and Unskilled). The selected countries are UAE, SAudi Arabia, Oman, Libya, Kuwait, Qatar, Iraq and Bahrain.

- 393

Table

58:

-

OVERSEAS PLACEMENTOF FILIPPINO

Reior

1969-71

Africa

WORKERS 1975-77

nil

847

Asia Europe

2,801 829

11,485

Middle East Oceania Americas

nil 135 3,182

15,383

Total

6,947

40,605

Source:

Overseas Manila; Manila.

6,782 668 .5,44o

lEployment Development Bank, Bureau of Employment Service,

Table 59: COMPARATIVEPOSITION REGARDING NUMBEROF WORKERS, REMITTANCE AND REMITTANCE PER WORKERIN SELECTED COUNTRIES

Increase in Number of Workers During 1976-78 2

Country 1

15,320

UAE

Remittance During Jan.June 1979 (Million Taka)

Remittance During 1977 (Million Taka)

3

4

68.o8

50.91

Remittance Per Worker Per Month (Taka)

Remarks

6 470

Column 5 (2xCol.3)-(Col.4)

12xCol.2) SaudiArabia

4,805

199.80 4.o6

30.51 21.40 4.09

7,000 900 80

Qatar

4,786

36.78

Oman

4,482

Kuwait

4,201

56.31

23.93

1,826

Libya Iraq Bahrain

3,285 3,279 1,970

34.74 58.29 9.60

12.13 18.38 9.24

1,500 2,790 422

Iran

1,602

34.87 502.53

20.77 .191.36

2,504

All Countrieg Source;

- -r44,540.

Chapter I and Chapter II.

1,504

Table

Country

60:

OCCUPATIONWISE DISTRIBUTION OF PERSONS SECURING EMPLOYM1PT-W IN SELECTED COUNTRIES DURING 1976-78

Professional

Oman

Skilled

551 (12 3) 490 (15.0) 716

Iraq Iran

1,800 (4o.1) 2,498 (76.O) 334 (20.9) 1,151 (23.9) 6,275

(44.7) Saudi

Arabia

UAE

709 (14.8) 1,662

(10.9) All

Note:

Countries

Figures

(40.9)

6,724 (15-0) in parentheses

15,619 (35.0) give

percentages.

Unskilled 2,131 (47.6) 291 (9.0) 552

(34.4) 2,945 (61.3) 7,383

(48.2) 22,278 (50-0)

Total

Remarks

4,482 (100) 3,297 (100) 1,602

Lowest remittance per worker Second highest remittance per worker High remittance

(100)

per worker

4,805 (100) 15,320

(100) 44,621 (1O0)

Highest remittance per worker Low remittance

per worker

TabIe 61: Major Occupation & Average Salary in Bangladesh

UAE

Saudi

WAGECOMPARISON BETWEENBANGLADESHAND MIDDLE EAST COUNTRIES

Arabia

Oman

Libya

Kuwait

Qatar

Iraq

Babrain

Professional Tk 1,750

DH 1500 Tk 6,114

SR 3,000 Tk 13,882

O -. 250 Tk 11,2527

LI) 250 Tk 13,133

KD225 Tk 12,668

QR 1,500 Tk 6,183

ID 150 Tk 7,899

ED 150 Tk 6,115

Administrative & Managerial Tk 3,000

DH 1,400 Tk 5,706

SR Tk

2,100 9,718

OR Tk

LD 200 Tk 10,506

KD 200 Tk 11,261

QR 1,400 Tk 5,771

ID 130 Tk 6,846

BD 130 Tk 5,300

DH 750 Tk 3,057

SR Tk

1,500 6,941

OR 300 Tk 13,508

LD Tk

100 5,253

KD Tk

100 5,630

QR 1,000

Tk 550

Tk 4,122

ID 100 Tk 5,266

BD 100 Tk 4,077

Highly Skilled Tk 750

DH 1,400 Tk 5,706

SR Tk

2,000 9,255

OR Tk

200 9,005

LD Tk

120 6,304

KD Tk

120

QR 1,200

6,756 Tk 4,947

ID 120 Tk 6,319

BD 130 Tk 5,300

Skilled Tk 650

DH 1,200 Tk 4,891

SR Tk

1,200

5,553

OR Tk

100 4,503

LD Tk

80 4,202

KD Tk

4,5o4 Tk 3,298

LD 80 Tk 4,213

BD 90 Tk 3,669

Semiskilled Tk 500

DH 1,075 Tk 4,381

SR Tk

1,000 4,627

OR Tk

90 4,052

LD Tk

68 3,572

KD Tk

70 3,941

ID 65 Tk 3,423

BD 80 Tk 3,261

SR

900

OR

80

LD

Tk

4,165

Tk

KD Tk

3,378 Tk 2,886

Clerical

Unskilled

Tk 400 Note:

DH

800

. XTk3,261

.

200 9,005

3,602 Tk

60

3,152

80

60

QR

800

QR 600 Tk 2,473

QR

700

ID

60

Tk 3,160

BD 60 Tk.2,446

Local currencies have been converted into Taka equivalent using average 1979 exchange rates.

PUB HG3881.5 .W57 W67 no.454 Ali, Syed Ashraf. Labor migration from Bangladesh to the Middle

East /

PUB HG3881.5.W57 W67 no. Ali, Syed Ashraf.

45 4

Labor migration from Bangladesh to the Middle East /

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