Remitters expect key reforms in the migration sector

Highlights

• Remittances contribute $21 billion annually, accounting for 3.3% of Bangladesh's GDP and more than half of the nation's foreign reserves, highlighting the importance of migration to Bangladesh's economy
• International migrant workers played a pivotal role in the revolution by halting remittance transfers, pushing for essential reforms in the migration sector that significantly contribute to the nation's economy.

2024 marked the beginning of a new era for Bangladesh. In this year, a mass uprising led by students and the general public brought an end to an unelected autocratic regime.

Following the July Revolution, an interim government led by Professor Yunus has been working towards re-establishing a representative democratic system.

International migrant workers and long-term expatriates also played a direct role in the revolution by halting remittance transfers. They expect the interim government to implement necessary reforms in the migration sector, a key contributor to the economy. Although migration generates $21 billion annually and creates over one million jobs each year, the interim government has yet to establish a commission dedicated to migration reforms, despite forming 15 commissions in other areas. Civil society has called for the formation of such a commission.

International short-term labour migration has significantly improved the livelihoods and well-being of many Bangladeshis. In 2023, remittance accounted for 3.3% of Bangladesh's GDP, amounting to 4.4 times the overseas development assistance and seven times the foreign direct investment received by the country.

Remittances also constituted more than half of the nation's foreign reserves. That year, international migration generated employment for 1.3 million people, matching the annual increase in the labour force. Furthermore, households receiving remittances in 2020 had a poverty headcount 40% lower than those without, showcasing their resilience to external shocks such as Covid-19 or global financial crises.

Despite these benefits, studies have identified various complexities in the migration process, which have made labour migration less rewarding for workers.

Over the past decade, seven key issues have intensified: high migration costs, non-transparent visa procurement and recruitment processes, insufficient protection for female migrants, declining confidence in banks, the slow growth of remittance transfers, entrapment in low-skilled job markets, unstable labour markets, and institutional inefficiency.

During the Awami League government's tenure, a convergence of interests among policymakers, senior bureaucrats, and recruiting agencies significantly compromised migration governance. This not only affected the outcomes for migrants and their families but also undermined local and national economic benefits.

Although Bangladesh has made progress in drafting laws and policies to govern labour migration, implementation remains weak. The key challenges that have intensified in labour migration governance over the last ten years are multi-dimensional.

Institutional weakness is one of them. It shows that a number of institutions for managing labour migration are operational, yet there is functional overlap. Increasing the number of TTCs, establishing a separate bank for migrants, and creating the Wage Earners Welfare Board (WEWB) without ensuring allocation from the national budget all indicate interventions without proper planning and feasibility exercises by the previous government.

Transparency issues also persist. Recruiting agents linked to the previous ruling party have used their influence to shape policies in their favour, bypassing fair competition. For example, syndication in visa processing siphoned off $2 billion, and the unchecked growth of recruiting agencies indicates policymaker complicity in corrupt practices.

The unwillingness of the government to regularise the sub-agents, posting Labour Attachés (LAs) in places where labour migration does not take place, the high cost of migration, and the syndication of labour markets are some other outcomes generated by the convergence of common interests among policymakers, senior bureaucrats, and recruiting agencies.

The Bangladesh Civil Society for Migration (BCSM) has called for legal action against those responsible for the Malaysia syndicate and demanded financial penalties for defrauding 4.5 lakh people.

Payment for visa trading alone may have caused a loss of Tk1.3 trillion in remittances. The slower growth in remittance flows since 2021 has been linked to eroding trust in the banking sector after defaults by influential groups connected to the ruling party.

Female migrants, primarily employed as domestic workers, face additional challenges due to inadequate protection in destination countries and the absence of targeted skill development policies. Policy and administrative reforms are urgently needed to streamline labour migration.

Policy Reform

Following the recommendation of the parliamentary standing committee on Expatriate Welfare and Overseas Employment of 2009, a dedicated cadre service for the ministry should be introduced so that the knowledge and experience gained by the officials are retained and utilised within the ministry.

The Bureau of Manpower, Employment and Training (BMET) should be upgraded to a department with several directorates. The resources of the Wage Earners' Welfare Fund (WEWF) should be spent exclusively on direct benefits or services for migrants.

The current practice of using WEWF funds to pay the salaries and benefits of Wage Earners' Welfare Board (WEWB) officials should be replaced with allocations from the revenue budget. WEWB should annually disclose updated information about the WEWF to the public.

To enhance the efficiency of the Probashi Kallyan Bank (PKB), the original criteria for selecting the chairman of the board—allowing experienced retired bankers to hold the position—should be reinstated.

The PKB Board should include individuals with expertise in bank management, reducing the number of bureaucrats. PKB must expand its coverage by networking with other banks to disburse migration and reintegration loans. An assessment of the bank's financial viability should be conducted.

Rules for implementing the Overseas Employment and Migrants (Amendment) Act, 2023, should include specific criteria for selecting countries or cities for establishing LA offices. Positions of LAs in countries with minimal labour migration should be transferred to those requiring additional personnel.

The monopoly of the administrative cadre in LA appointments should end, allowing BMET and District Employment and Manpower Office (DEMO) officials to serve in these roles. Provisions for regularising sub-agents under the Act should be implemented, and necessary rules for their regulation should be framed without delay.

To avoid conflicts of interest, the government must ensure that individuals engaged in recruitment businesses refrain from participating in such activities while serving as members of parliament. The government should also demonstrate its commitment to the labour migration sector through increased budget allocations.

From 2002–03 to 2023–24, the annual budget allocation for the migration sector ranged between 0.05% and 0.10%. Migrants and civil society aspire to an allocation of at least 1% of the national budget or an amount equivalent to 5% of annual remittances sent by migrants. These funds should be used for the protection and services of workers' rights and their families, excluding the ministry's operational expenses, benefiting both short- and long-term migrants.

Administrative Reform

Accountability measures such as public hearings in parliament and regular functions of parliamentary standing committees must be ensured. Clear criteria for the representation of migrants in PKB and WEWB must be established and adhered to. Provisions for CSO representation in BMET arbitration should be introduced.

The Overseas Employment and Migrants (Classification of Recruiting Agents) Rules, 2020, should be enforced. Licenses issued to the immediate family members of recruiting agents should be revoked. To rationalise the number of recruiting agencies, licenses of non-performing or fraudulent agencies should be cancelled. The recent surge in recruiting license issuance should be investigated to ensure accountability among decision-makers.

Prosecution and punishment of key actors involved in syndication to Malaysia in 2012 and 2021 must be prioritised. Restoring migrants' confidence in the banking sector requires disseminating information on measures taken to stabilise the sector.

To reduce migration costs, the government should address visa trading in multilateral forums and bilateral negotiations. Strict restrictions should be imposed on recruiting agencies to prevent unnecessary increases in visa prices, ensuring competitiveness against other South Asian countries.

BMET arbitration and local mediations should set compensation for premature migrant returns at five times the government-determined cost.

Over the past 15 years, the number of TTCs has doubled to 110 without feasibility studies or adequate funding. Many trainees fail to secure overseas employment. TTCs must be evaluated and made effective, with recruiting agencies mandated to procure visas for skilled workers.

Skills development should be prioritised as the key pathway to accessing decent work. TTC training programmes should be reorganised and funded from the revenue budget. Women's skills training must be diversified to enable employment beyond domestic work.

Drawing on the Philippines' best practices, embassy staff should regularly monitor labour conditions, and shelter homes should be established as needed. In cases of suspected unnatural death, a second autopsy should be conducted in Bangladesh.

To ensure reliable and regular data, the BBS should include a migration module in the population census. BMET should establish an integrated data management system that includes information on return migration.

Dr Tasneem Siddiqui, Founding Chair, Refugee and Migratory Movement Research Unit