Post on 27-Mar-2018
D.U. Journal of Marketing, Vol. 16, No. 1, June 2013 (Published in December, 2015)
AN ANALYSIS OF MANPOWER EXPORT PROCESSING
FROM BANGLADESH
Dr. Md. Abul Kalam Azad1
Ms. Samsun Arefin2
Abstract: The scenario of manpower migration is changing all over the
world. Over a few decades Labor Migration takes place as an essential part
of the global economy. The purpose of this study is to examine the process
of manpower exporting and explore the situation of Bangladeshi manpower
in foreign countries. Economic reform in different countries has created
substantial changes in labor migration process. Policy makers are showing
greater interest in labor migration issues and this is one of the core issues
of policy dialogue and international co-operation. Considering the
importance of manpower export sector and emphasizing the contributions
of expatriate Bangladeshis, government created the Ministry of Expatriates’
Welfare and Overseas Employment on Dec 20, 2001 having vision to ensure
the rights and interest of Bangladeshi workforce both at home and abroad
and to facilitate overseas employment for rapid economic growth. This
study has identified the factors of the existing process by taking survey from
the respondents considering the visa processing system, training system,
transparency of recruiting agencies, behavior of the employers, payment
system, salaries or wages, rights of employee, insurance opportunities,
working environment.
Key words: Labor migration, global economy, and manpower exporting.
INTRODUCTION
Bangladesh is a developing country. Every year our government declares a
deficit budget .Foreign aids and remittance contributes a huge contribution in our
budget. So to nurse the manpower exporting process is a demand of time. The
contribution of remittance was about 14461.14 million US dollar in the budget
during 2012-2013 (Foreign Exchange Policy Department, Bangladesh Bank).The
rapidly changing global economy is driven by innovative technologies and
integrating markets. There has been a tremendous burst in the growth of
international trade in goods and services along with a significant rise in the
international financial flows. Movement of people within and across nations is on
the rise. In fact one of the biggest implications of a rapidly changing global
economy has been on the impact on the labor market. In the last decade, cross
border movement of people and remittances outflow from a large number of
1 Professor, Department of Marketing, University of Dhaka, Bangladesh.
2 Lecturer, Department of International Business, University of Dhaka, Bangladesh.
58 D.U. Journal of Marketing, Vol. 16, No. 1, June 2013
developed countries and remittances inflows into a number of developing
countries has been increasing steadily. Since 1980 the stock of migrants has
started moving two steps ahead of the average growth rate in the world
population. According to the United Nations Report of 2010, about 3 percent of
the world population is in transit. Sizable portions of the people living outside
their countries of origin send back regularly a part of their income home. Migrant
remittances have made it possible to bring about direct, immediate and far-
reaching benefits both to the families and the countries of the migrants. In fact
the migrant workers provide a constant source of income—an amount larger and
more predictable than the official development assistance, foreign direct
investment and other private inflows.
The emergence of remittances as a new strategy for poverty alleviation in
developing countries has spurred multilateral institutions, international
organizations, foundations, universities and national governments, including the
Asian Development Bank (ADB), Inter-American Development Bank (IADB),
International Monetary Fund (IMF), World Bank, and the United Nations among
others to seriously study, identify and implement measures on how these inflows
could be maximized and then harnessed for the development of the migrants’
countries of origin. There are three major positive effects of migration.
Expatriates who remain abroad contribute money via worker remittances.
Returning migrants, in particular, bring back their skills and work experience
from abroad, thus boosting productivity of the local economy. Migrants may also
invest capital in entrepreneurial ventures that facilitate transfer of knowledge or
technology to the developing countries and boost productivity and economic
development. While all three are equally important for the development of
Bangladesh, this report focuses only on the first major impact of migration, i.e.,
migrant remittances.
It is evident that Bangladesh has an edge over many other developing countries
in its abundance of human resources. On the other hand, Bangladesh has cheap
talent, good reputation of its overseas workers, its historical presence and strong
positions in some countries, great willingness of its citizens to migrate, growing
importance of manpower exports in the eyes of the government and the
willingness of NGOs and other private sector players. If the government can
devise a new strategy to explore new export markets for the country as expatriate
workers and ensure the wellbeing of Bangladeshi citizens working abroad,
significant remittance which would be channeled to contribute a lot to the
economic growth and poverty reduction.
In all over the world about 70 Lac Bangladeshi workers are working legally and
their remittance is the second highest foreign contributor in our GDP (Current
Affairs: April, 2011). We know the workers of Bangladesh face different types of
difficulties abroad and sometimes they returned from abroad. If the related bodies
of our country and the embassy of different countries are sincere in their own
responsibilities, the obstacles can be avoided.
An Analysis of Manpower Export Processing from Bangladesh 59
The researchers have gathered knowledge from study about the overall process of
exporting manpower from Bangladesh and remittance situation. The study was
conducted at Bureau of Manpower Employment and Training (BMET) and
others. The information was collected on the basis of BMET’s and BAIRA’s
websites, brochures and through personal contact with high officials. The data
were collected from most recent available sources during the period of 2012-
2013 fiscal years.
The study has focused on the process of exporting manpower of Bangladesh.
This section is hitherto and unexplored. In Bangladesh the contribution of
remittance in GDP is huge. The researchers have tried to focus on the process
and procedure of BMET’s manpower exporting system and also confined to
show the satisfaction level of expatriate workers and their relatives under the
existing process.
OBJECTIVES
The main objective of the study is to examine the process of manpower exporting
of Bangladesh. Specific objectives of the study are:
1. to know about the overall situation of manpower export,
2. to examine remittance situation of our country,
3. to analyze the problems of going to foreign countries,
4. to explore the situation of Bangladeshi manpower in foreign countries, and
5. to suggests some remedial measures for overcoming the said problems.
METHODOLOGY
The present study is exploratory in nature. Both primary and secondary data have been used in the study. The relevant and supporting secondary data have been collected through library research and website study and Directory of Bureau of Manpower, Employment & Training (BMET)‖ as a sampling frame. To know the overall existing process of exporting manpower, the researchers have collected some secondary data, such as- Ministry of Expatriates’ Welfare and Overseas Employment (MEWOE), Bangladesh Association of International Recruiting Agencies (BAIRA), Bureau of Manpower, Employment & Training (BMET), Bangladesh Overseas Employment & Services Ltd. (BOESL) etc. From these sources the researcher has gathered vast knowledge about the study.
Primary data have been collected from fifty random sample respondents. The researchers have tried to determine the perceptions of the target people about the existing overall process of exporting manpower. Here target population was ―Suppliers of the Grameen Phone‖. The researchers have chosen sample size on the basis of non–probability convenience sampling and judgmental method is used as a sampling method because all the peoples are not potential for collecting relevant information. So the researchers as an interviewer have used their judgment to select the respondents from convenient respondents.
60 D.U. Journal of Marketing, Vol. 16, No. 1, June 2013
To show the actual picture of the study theoretical and technical analysis were
used. The questioning technique was used to collect primary data. One set of
structured non-disguised questionnaire was used to obtain factual information
and opinion. Multiple choice types of questions were also used to obtain factual
information.
The questionnaire was made on the basis of some affecting factors of the existing
process, such as- visa processing system, training system, transparency of
recruiting agencies, behavior of the employers ,payment system, salaries or
wages, rights of employee, insurance opportunities, working environment etc.
FINDINGS
The Role of Different Agencies for Exporting Manpower
Bureau of manpower, employment & training (BMET): Bureau of
Manpower, Employment and Training (BMET) was established in the year 1976
by the Government of the People's Republic of Bangladesh as an attached
department of the then Ministry of Manpower Development and Social Welfare
with specific purpose of meeting the manpower requirement of the country and
for export of manpower as well. BMET is engaged for over all planning and
implementation of the strategies for proper utilization of manpower of the
country. Presently BMET is under administrative control of Ministry of
Expatriates Welfare and Overseas Employment. BMET is composed of two
wings namely, employment services Wing and training wing.
Table 1: Shows Different Categories of Bangladeshi Migrant Workers
Years Professional Skilled Semi-skilled Unskilled
1994 -1998 2.89% 29.98% 19.22% 47.90%
1999-2003 4.74% 32.05% 14.43% 48.77%
2004-2008 0.69% 31.11% 15.74% 52.46%
2009-2013 1.65% 31.60% 12.48% 54.27%
Source: Bureau of Manpower, Employment and Training.
The table 1 shows that from 1999 to 2008 the percentages of professional
workers were in a drastically decreasing rate due to political unrest. But the
percentage of semi-skilled workers was in an increasing rate. On the other hand
from 2009 to 2013 the percentages of professional, skilled and un-skilled workers
were in a increasing rate but the percentage of semiskilled workers was in an
decreasing rate. From the above table it is evident that the number of unskilled
workers is increasing in abroad. So for gaining the overall success in remittance
amount more and more professional and skilled workers should go abroad.
An Analysis of Manpower Export Processing from Bangladesh 61
Association of Recruiting Agencies Engaged in Manpower Export (BAIRA):
There are about seven hundreds licensed private recruiting agents engaged in
manpower export. They have association under the name and style of Bangladesh
Association International Recruiting Agencies (BAIRA). BAIRA cooperates with
the Ministry in implementing rules, regulation and directives of the Ministry. The
present number of BAIRA members is 724.
Bangladesh Association of International Recruiting Agencies (BAIRA) is one of
the largest trade bodies in Bangladesh affiliated with the Federation of
Bangladesh Chambers of Commerce and Industry (FBCCI), the apex body on
Trade & Industry, established in 1984 with a view to catering the needs of the
licensed recruiting agencies who are engaging themselves in promoting
manpower market abroad and deploy a good number of unemployed Bangladeshi
manpower in various foreign countries after imparting necessary training.
Manpower is one of the major national resources of Bangladesh. About 35
million people constitute this vast reservoir of manpower. Fortunately
Bangladesh is steadily turning her manpower into an asset through training and
skill development with a view to meeting the needs of a modern economy.
With a modes beginning in 1976, Bangladesh has, by now, become a notable
exporter of manpower. Between the years 1976 to 2001 a total of more than three
million Bangladeshis have been able to secure employment in foreign countries,
particularly in countries of the Middle East and Malaysia, Singapore of South
Korea through the members of BAIRA. The main objective of the BAIRA
members is to ensure supply of quality manpower at a minimum cost within the
time schedule given by the employers. With a view to ensuring the financial
security of migrating workers BAIRA, has already undertaken two Insurance
Schemes: one for the workers before their departure and the other is for their
families left behind, through BAIRA Life Insurance Company Limited, an
affiliated organ of BAIRA. In addition, BAIRA is going to set up a Bank to
ensure quick and easy monitory transaction service to the members of BAIRA
and the migrating workers, in addition to the public in general.
A sophisticated and highly technical & vocational training center is coming up
shortly to impart training to our youths in modern developed technology
including Information Technology (IT), to cater to the need of the country and
our valued overseas employers. To ensure proper medical check-up of the
migrant workers BAIRA is setting up a modern Medical Testing Center with
elaborate facilities. These will be in addition to the existing facilities already
available with some of the reputed members if BAIRA. BAIRA arranges short
term foreign language course & briefing sessions before allowing the selected
workers to emigrate.
Unemployed labor force of Bangladesh is estimated to be about 15 million.
Beside a huge number of un-skilled labor force, skilled, semi-skilled and
professional manpower is also available for foreign employment. All the
62 D.U. Journal of Marketing, Vol. 16, No. 1, June 2013
categories of personnel exported for employment are broadly classified into four
groups as: (a) Un-skilled, (b) Semi-skilled, (c) Skilled, and (d) Professional.
Foreign Remittance
Remittance: Remittance is transfer of money from one country or territory to
other country or territory in the form of government approved foreign currency
e.g. US dollar, Euro etc.
Remittances- "The money of the migrants": Fund transfer from one country to
another country goes through a process which is known as remitting process.
Suppose a local bank has 200 domestic branches and has the corresponding
relationship with a foreign bank say-―X‖, maintaining ―Nostro Account‖ in US$
with the bank.
Figure 1: Flow Chart of Remitting Process
Source: Filed Study.
Bangladeshi expatriates are sending foreign remittance to their local beneficiary,
through that account. Now, when the Bangladeshi expatriates through other
banks of different countries remit the fund to their ―Nostro Account‖ with ―X‖,
then the local bank’s Head office international division will receive telex
message and the remittance section will record the advice and generate the advice
letter to the respective branch of the bank. The branch will first decode the test,
verify signature and check the account number and name of the beneficiary.
After full satisfaction, the branch transfers the amount to the account of the
beneficiary and intimates the beneficiary accordingly. But sometimes complexity
arises, if the respective local bank has no branch where the beneficiary maintains
his account. Then the local bank has to take help of a third bank who has branch
there.
Foreign currency remitting procedures: There are two types of remittance.
In ward remittance. Inward remittance covers purchase of foreign currency in
the form of foreign Telegraphic Transfer (T.T), Demand Draft (DD) and Bills &
Travelers Cheque, Export Bill etc. sent from abroad favoring a beneficiary in
Bangladesh, purchase of foreign exchange is to be reported to Exchange Control
Department of Bangladesh Bank on form - Letter of Credit (L/C). Basically,
An Analysis of Manpower Export Processing from Bangladesh 63
these are the formal channels of receiving inward remittance. A local bank also
receives indenting commission of local firm also comes under purview of inward
remittance.
Figure 2: Modes of Inward Remittance
In word remittance are export proceeds, wage earners, Investment, Grand .Aids,
UN peace keeping. Commission/Service Charges, Fees, Tourisms, Business
Development, Fair etc.
Outward remittance. Outward remittance covers sales of foreign Currency by
Authorized Dealer (AD) or Formal Channel through issuing foreign Telegraphic
Transfer (T.T), Demand Drafts (D.D), Traveler's Cheque etc. as well as sell of
foreign exchange under L/C and against Import Bills retired. The Authorized
Dealers have to demonstrate Utmost caution to ensure that foreign Currencies
remitted or released by them are used only for the purposes for which they are
released. Most outward remittance is approved by the authorized dealer on behalf
of Bangladesh Bank.
Figure 3: Modes of Outward Remittance
64 D.U. Journal of Marketing, Vol. 16, No. 1, June 2013
Outward Remittance may be made for following purposes Travel, Medical
Treatment, Educational purpose, Attending Seminar, Balance Amount of Foreign
Currency Account, Profit of Foreign Companied, Technical Assistance, Letter of
Credit (L/C) payment, Fair, Exhibition for export promotion.
Remittance transfer channels: Foreign Remittance can be transferred in two
ways.
Formal channel. Fund transfer from one country to another country through
official channels, i.e. banking channel, post office and other private service
channels, such as– Western Union Money Transfer, Neno Money Order, Money
Exchanger etc.
Figure 4: Forms of Formal Channel
The Legitimate purposes of moving money abroad through formal channel are:
(a) to invest, (b) to Lend, (c) to meet Trading/Personal Obligations, and (d) to
safeguard assets against theft or seizure by repressive regimes.
Informal Channel. Fund transfer from one country to another country through
hand by hand or over telephone in an unofficial channel like – ―Hundi‖.
Figure 5: Informal Transaction Channel
Experts state that remittance collected by informal ―Hundi‖ rings are used to
finance illegal trade and transaction. Terrorist financing is also made by this sort
of channel, criminals use informal channel for moving money abroad because of
–Dealing in arms & ammunitions, Drug trafficking ,Financing terrorists’
activities ,Evasion of exchange regulations/control, Evasion of taxation, Disguise
or remove proceeds of threat/fraud/bribe, Making blackmail payments, Paying
random for Kidnappers.
An Analysis of Manpower Export Processing from Bangladesh 65
Public and private actors in remittance transfer: There are several actors
involved in the area of remittance transfer. Among them, Ministry of Finance
(MoF) and Bangladesh Bank (BB) are the two most important institutions.
Besides, Ministry of EWOE (MoEWOE); Ministry of Foreign Affairs (MoFA);
Ministry of Commerce (MoC); Bureau of Manpower, Employment and Training
(BMET); National Savings Bureau (NSB); Privatization Commission (PC) and
Board of Investment (BoI) are other relevant ministries and agencies in the public
sector. Nationalized Commercial Banks (NCBs), Private Commercial Banks
(PCBs).
Flow of Foreign Remittance in Bangladesh
Remittance has become a major contributor to the Bangladeshi economy. As the
emigrant workers from Bangladesh gradually increased over the years, the
amount of annual remittance to the country significantly rose. According to
World Bank, Bangladesh is now one of the largest recipients of remittance with
almost $14.5 billion as of June 2013.
Table 2: Foreign Remittance in Bangladesh from 1995 to 2013
Year/Month
Remittances
In million US dollar In million Taka
2013-2014* 10495.17 815968.55
2012-2013 14461.14 1156460.78
2011-2012 12843.43 1018827.79
2010-2011 11650.32 829928.90
2009-2010 10987.40 760109.59
2008-2009 9689.26 666758.50
2007-2008 7914.78 542951.40
2006-2007 5998.47 412985.29
2005-2006 4802.41 322756.80
2004-2005 3848.29 236469.70
2003-2004 3371.97 198698.00
2002-2003 3061.97 177288.20
2001-2002 2501.13 143770.30
2000-2001 1882.10 101700.10
1999-2000 1949.32 98070.30
1998-1999 1705.74 81977.80
66 D.U. Journal of Marketing, Vol. 16, No. 1, June 2013
Year/Month
Remittances
In million US dollar In million Taka
1997-1998 1525.43 69346.00
1996-1997 1475.42 63000.40
1995-1996 1217.06 49704.00
1994-1995 1197.63 48144.70
Top of Form
Source: Foreign Exchange Policy Department, Bangladesh Bank.
From the table 2 shows that in the fiscal year 2011-2012, this amount was about
US$ 12,843.43 million and in 2012-2013, this amount was about US$ 14461.14
million. The researchers found that the flow of overseas employment amount is
in a vulnerable situation .In some years it was in a increasing rate and in some
cases the time was unfavorable because of unrest political situation, economic
crisis, problem of diplomatic relation building etc.
Bangladesh Bank is very careful about the remittance flows in Bangladesh from
all over the world. This means it covers remittance of both long term and short
term migrants. Bank data shows that the remittances sent by the migrants have
grown over time. Nonetheless, the yearly growth rate of remittance is much less
than the total numbers of migrant workers throughout the last twenty-five years,
the remittance flows broadly indicate an average yearly increase of around 10
percent. The most important reason behind such gap in migrant and remittance
flows is that in recent times Bangladesh has exported more unskilled and semi-
skilled migrants whose wages are rather low compared to those of previous
skilled and professional ones. Wage rates have also fallen drastically over the
past decade.
One half of the total remittance came from one country, i.e., Saudi Arabia. Over
the years, the US has become the second largest remittance sending country,
Kuwait and the UAE being the third and fourth. Migrants use different methods
in sending remittance involving both official and unofficial channels. A section
of remittance is also transferred in kind. The goods that migrants bring along
while visiting or returning to Bangladesh, or send with
Overseas Employment and Remittance: Table 3 shows that till now the
amount of workers is working in ―Kingdom of Saudi Arabia (KSA) = 2629123,
which is 30.16 percent of total. It is the highest amount. Next the second highest
amount is in the ―United of Arab Emirates (UAE) = 2303223, which is 26.42
percent of total. The lowest amount of workers is working in ―Japan = 1231,
which is 0.01 percent of total. Some other findings are given below:
An Analysis of Manpower Export Processing from Bangladesh 67
Table-3: Shows the Top Ten Countries of Contribution during 1976-2013
Serial No. Countries Amount of workers Percentages
1 KSA 2629123 30.16%
2 UAE 2303223 26.42%
3 Malaysia 705054 8.09%
4 Kuwait 479656 5.50%
5 Oman 842784 9.67%
6 Singapore 486031 5.58%
7 Bahrain 273933 3.14%
8 Qatar 267304 3.07%
9 Libya 117433 1.35%
10 Lebanon 97032 1.11%
Source: www.bd bmet.org
From this table it is clear that first two countries KSA and UAE contribute for
about 56.58% of total. It is evident that Middle East is the main source of our
remittance. Therefore it is very crucial to continue the diplomatic relation with
these countries. But recent anarchies in some African countries especially in
Libya create some problems for our some workers in those countries. The total
number of workers has gone in abroad from 1976 to Dec.2013 is about 8,717,002
and the amount of remittance earned from abroad in time is about US$
118,837.73 million (Tk. 782,731.49 Crore).
Analyses of the Table: Overseas Employment of Female Workers: From this
table-8.1 it is found that the amount of total overseas female workers from 1991
to 2014 (July) was about 3,19,247. On the other hand the total amount of
overseas workers in this time was 8,717,002. So the percentage of female
workers is 2.41% of total which is very negligible. So the proper steps should be
taken for increasing this amount.
68 D.U. Journal of Marketing, Vol. 16, No. 1, June 2013
Table 4: Top ten countries of contribution for female migrants from
1991-2014 (July)
Serial No. Countries Amount of workers Percentages
1 UAE 83287 26.64%
2 Lebanon 85397 31.51%
3 KSA 32126 15.32%
4 Jordan 58058 8.75%
5 Kuwait 7658 3.71%
6 Mauritius 12837 4.86%
7 Malaysia 6520 3.14%
8 Bahrain 3691 1.70%
9 Oman 20224 3.11%
10 Libya 531 0.25%
Source: www.bmet.org.bd
From the above table it is clear that first three countries UAE, Lebanon and KSA
contribute for about 73.47% of total. So it is very crucial to continue the
diplomatic relation with these countries and to take necessary steps finding out
the new opportunities for female workers. For this reason training, easy migrant
system, proper knowledge about jobs, good diplomatic relation with different
potential countries are required.
EVALUATION OF EXISTING PROCESS THROUGH TARGET
MARKET SURVEY RESULTS
To find out the target market status about existing process of manpower
exporting, the researchers have conducted a survey of 50 target people through
personal interview. The sample structure and findings based on field survey are
given below:
Table-5: Shows the Sample Structure in the field Survey
Place Respondents Percentages Total Percentages
BMET
Male 30 60% 80%
Female 10 20%
BAIRA Male 7 14% 20%
Female 3 6%
Total 100%
Source: Field Survey.
An Analysis of Manpower Export Processing from Bangladesh 69
The above table shows that the researchers have collected the primary data from
two reliable sources: (a) Bureau of Manpower, Employment and Training
(BMET) (b) Bangladesh Association of International Recruiting Agencies
(BAIRA). From BMET total 40 (80%) samples are collected where male-30
(60%) and female-10 (20%).On the other hand From BAIRA total 10 (20%)
samples are collected where male-7 (14%) and female-3 (6%).
Table 6: Showing Opinions of the Respondents Regarding Existing
Visa Processing System
Status Number Percentage
1. Strongly Disagree 5 10%
2. Disagree 30 60%
3. Neither Disagree nor Agree 10 20%
4. Agree 5 10%
5. Strongly Agree 0 0%
Source: Field Survey.
Respondents were asked to mention about the existing visa processing system of
Bangladesh is good. The above table shows the 10% of the respondents voted
for strongly disagree, 60% of the respondents voted for disagree, 20% for neither
agree nor disagree and 10% for agree on the basis of Likert scale of that
comment.
Table 7: Showing Opinions of the Respondents Regarding
Present Training System
Status Number Percentage
1. Strongly Disagree 0 0%
2. Disagree 5 10%
3. Neither Disagree nor Agree 10 20%
4. Agree 30 60%
5. Strongly Agree 5 10%
Source: Field Survey.
Respondents were asked to mention about the existing training system through
the above comment. 10% of the respondents voted for disagree, 20% for neither
agree nor disagree and 60% for agree on the basis of Likert scale of that
comment.
70 D.U. Journal of Marketing, Vol. 16, No. 1, June 2013
Table 8: Showing Opinions of the Respondents Regarding Recruiting
Agency’s Transparency
Status Number Percentage
1. Strongly Disagree 5 10%
2. Disagree 30 60%
3. Neither Disagree nor Agree 10 20%
4. Agree 5 10%
5. Strongly Agree 0 0%
Source: Field Survey.
Respondents were asked about the existing agency’s transparency is satisfactory.
Table 8 shows the respondents pinion where 10% of the respondents voted for
strongly disagree, 60% of the respondents voted for disagree, 20% for neither
agree nor disagree and 10% for agree.
Table 9: Showing Opinions of the Respondents Regarding
Employer Behavior
Status Number Percentage
1. Strongly Disagree 5 10%
2. Disagree 15 30%
3. Neither Disagree nor Agree 20 40%
4. Agree 10 20%
5. Strongly Agree 0 0%
Source: Field Survey.
Respondents were asked about the employer behavior through the above
comment. 10% of the respondents voted for strongly disagree, 30% of the
respondents voted for disagree, 40% for neither agree nor disagree and 20% for
agree on the basis of Likert scale of that comment.
An Analysis of Manpower Export Processing from Bangladesh 71
Table 10: Showing Opinions of the Respondents Regarding Payment System
Status Number Percentage
1. Strongly Disagree 0 0%
2. Disagree 10 20%
3. Neither Disagree nor Agree 30 60%
4. Agree 10 20%
5. Strongly Agree 0 0%
Source: Field Survey.
Respondents were asked to mention about the existing payment system is perfect.
Table 10 shows the opinions of the respondents in this regard. 20% of the
respondents were opined that they disagree, 60% for neither agree nor disagree
and 20% for agree in this issue.
Table 11: Showing Opinions of the Respondents Regarding Payment
Status Number Percentage
1. Strongly Disagree 5 10%
2. Disagree 25 50%
3. Neither Disagree nor Agree 15 30%
4. Agree 5 10%
5. Strongly Agree 0 0%
Source: Field Survey.
Respondents were asked to mention about the payment amount which is
reasonable. The above table 11 depicted that. 10% for strongly disagree, 50% for
disagree, 30% for neither agree nor disagree and 10% for agree on the basis of
Likert scale of that comment.
Table 12: Showing Opinions of the Respondents Regarding Rights of ILO
Status Number Percentage
1. Strongly Disagree 20 40%
2. Disagree 15 30%
3. Neither Disagree nor Agree 15 30%
4. Agree 0 0%
5. Strongly Agree 0 0%
Source: Field Survey.
Respondents were asked about the ILO law are completely followed. The table
12 shows that. 40% respondents argued strongly disagree, 30% for disagree, 30%
for neither agree nor disagree on the basis of Likert scale of that comment.
72 D.U. Journal of Marketing, Vol. 16, No. 1, June 2013
Table 13: Showing Opinions of the Respondents Regarding Insurance
Procedure
Status Number Percentage
1. Strongly Disagree 20 40%
2. Disagree 20 40%
3. Neither Disagree nor Agree 10 20%
4. Agree 0 0%
5. Strongly Agree 0 0%
Source: Field Survey.
Respondents were asked about the existing insurance procedure through the
above comment. 40% for strongly disagree option and 40% for disagree, 20% for
neither agree nor disagree on the basis of Likert scale of that comment.
Table 14: Showing Opinions of the Respondents Regarding
Working Environment
Status Number Percentage
1. Strongly Disagree 20 40%
2. Disagree 15 30%
3. Neither Disagree nor Agree 10 20%
4. Agree 5 10%
5. Strongly Agree 0 0%
Source: Field Survey.
Respondents were asked about the working environment through the above
comment. 40% for strongly disagree option and 30% for disagree option, 20% for
neither agree nor disagree and 10% for agree on the basis of Likert scale of that
comment.
PROBLEMS OF MANPOWER EXPORT
Irregularity and corruption: There are huge complains of irregularity and
corruption against manpower export agencies in Bangladesh. Print and electronic
media covers about these quite frequently. Those who are affected also describe
their bitter experience in dealing with the agencies. The fact is that a powerful
coterie has been created among the Ministry of Expatriates’ Welfare and
An Analysis of Manpower Export Processing from Bangladesh 73
Overseas Employment, Bureau of Employment, Bangladesh’s missions abroad,
BAIRA and recruiting agencies who are involved in such irregularities and
corruption. Two Thousands of people lost everything but could not go to the
desired countries. Those who could reach their destination are not getting proper
job, being fined, thrown to jail, and getting other punishment. Many are forced to
be back to Bangladesh. The recruiting agencies are taking money even double of
the government rates.
Inefficiency of related institutions: Inefficiency, lack of interest and monitoring
of the Ministry, passive attitude of the foreign Missions, and illegal transactions
between employing and recruiting agencies may bring about disaster in
manpower export in near future. Already the United Arab Emirates has declared
that it will not receive Bangladeshi manpower through recruiting agencies. Some
countries including Malaysia, Qatar and Kuwait have been talking in the same
tone regarding manpower import from Bangladesh. Beside corruption and
malpractices, Bangladesh is lagging behind compared to neighbor India and Sri
Lanka mainly due to lack of skill and training.
Unskilled workers: The unskilled workers are vulnerable and are not paid what
they really deserve. The government has established some new science and
technological universities, polytechnic and vocational institutes for increasing the
number of skilled and professional personnel. But the number is still smaller than
what is required to meet the actual demand. Moreover, the quality of education
provided by these institutes is not up to the mark as compared to the institutes of
other leading manpower exporting countries.
Exploitation of Recruitment agencies: Recruitment agencies exploit the
migrating workers in many ways. Migrants are forced to pay huge fees as bribe
to get work permits and visa documents. The agencies sometimes export people
with fake documents which cause great suffering to the migrants.
Need of skill certificate: Skill certification requirements in the host country
either prevent market access causing a rejection of the work permit or visa
application, or limit his/her scope for work to specific activities once s/he enters
the overseas market, preventing him/her from practicing the core skills.
Social and cultural reasons: Due to social and cultural reasons, the percentage
of women workers is low who wish to be migrant workers. They comprise
around one or two per cent of the total overseas workers. They have restrictions
at various levels to go abroad. However, the global opportunities for some
occupations dominated by women are huge and competition is far less.
Illegal workers: In many countries where Bangladeshi immigrants work, there is
a substantial population of illegal migrants from Bangladesh as well as other
countries. This has made the host country governments and the locals
increasingly wary of migration. Bangladesh, however suffers from a serious
image problem abroad. Certain irregularities on the part of the Government of
Bangladesh officials and fraudulent practices followed by recruiting agencies
74 D.U. Journal of Marketing, Vol. 16, No. 1, June 2013
have had a negative impact on labor importing countries’ attitudes and been
detrimental to maximized growth and exploitation of this potentially lucrative
export sector.
Lack of utilization of remittance: In Bangladesh, a study has reported that less
than 5 per cent remittance is utilized for productive investment and a significant
portion of remittance is utilized for nonproductive purposes. So the remittances
cannot be utilized for economic development and industrialization that are
necessary for the socioeconomic development of the country.
Foreign policy and diplomatic relationship: A large proportion of the workers
abroad send the remittance via hundi instead of banking channel as bank
procedures are difficult and costly, and the money delivery takes comparably
long time. The Government’s foreign policy and diplomatic relationship and
promotional activities are important to increase manpower export. Although the
government has undertaken various strategies to boost manpower export,
Bangladesh is still far behind in establishing diplomatic relationships and
promotional activities as compared to the other countries.
SOME GOVERNMENT’S INITIATIVES
Bangladesh government has already taken some initiatives for raising export of
manpower. They are as follows:
Cost and harassment reducing program: The program of making the list of all
expatriate’s name with their occupation and skill is running at district
employment and manpower office for reducing the cost for employing worker
abroad, remove harassment and cheating with them.
Establishing database networking system: Information management through
ICT and the network have been expanded in Bureau of manpower, Expatriates
Welfare Ministry, Airport and BAIRA. Recruiting agencies and foreign
employee can choose and collect workers with their own demands directly by
this network. The system of illegal sub agent that means intermediary is
abolished in many times for establishing this database network.
Online emergence program: The program of giving online emergence permit of
outgoing workers is being implemented by Bureau of Manpower.
One stop service center: One stop service center has been created for rendering
all services to expatriate workers. Facilities of passport, outgoing, hotel and
restaurant, conference room, medical center, community center, destination of
employees and choosing workers have been expanding.
Establishing welfare desks: Two Expatriates’ Welfare Desk have been
established in Hazrat Shah-Jalal International Airport and one in Chittagong Shah
Amanat Airport and one in Sylhet Osmani Airport for catering every service to
the outgoing workers and wage earners.
An Analysis of Manpower Export Processing from Bangladesh 75
Initiative for exploring new labor market: The government has devised seven-
point strategy to ensure the wellbeing of Bangladeshi citizens working abroad
and explore new export markets for sending Bangladeshi manpower. Under the
strategy the government has taken initiatives to explore new labor markets in
Norway, Sweden, Russia, Poland and Canada. The government will discuss the
issue of migration management with the WTO and the International Organization
of Migration (IOM).
Introducing strict monitoring system: A strict monitoring system will also be
introduced to eliminate suffering, fraud deception of Bangladeshi citizens
working abroad and expatriates. For the best use of remittances the government
will encourage establishing a special economic zone and industries with the
money remitted by the expatriates, which will contribute to poverty alleviation
and economic development.
RECOMMENDATIONS
For sustainable growth of our economy through export of manpower and
migration the government should take some other initiatives which may be
outlined below:
The existing laws should be amended. To amend existing laws to prevent
illegal human trafficking and human rights violations and bring transparency in
the migration process.
To monitor the recruiting agencies. Private recruiting agencies should be
monitored carefully by the government. The government should be vigilant in
overseeing and preventing the use of unfair means in dealing with manpower
export business.
Reform the education system. The syllabuses of the schools, technical
institutions and universities should be upgraded and synchronized with the global
labor market trends and demands. Young people should be trained into skilled
labor from those educational institutions.
Improve the quality of education. The Ministry of Education should improve
the quality of graduates of the polytechnic institutes which producing mid-level
technical manpower (Civil, Mechanical, Electrical, Automobile, Computer
Diploma Engineers, etc.).
Taking initiative for upgrading the technical skills. BUET and other
technological institutes should train up the high level technical graduates who are
likely to work abroad. Medical university and college should take initiative to
upgrade skill of the physicians in line with global demands. Training program is
also important for paramedic and medical technicians.
More training sessions should be arranged. Training for educated unemployed
youths should be organized to send them abroad for jobs. Illiterate and less
76 D.U. Journal of Marketing, Vol. 16, No. 1, June 2013
educated unemployed youths should be involved in various training programs to
be competent for the global labor market.
Good networking system should be established between government and
recruiting agencies. There is a need for good networking with the governments
and the labor related organizations of the countries where they are likely to work.
Diplomatic relationship should be improved. Diplomatic Missions in the
countries where Bangladeshis go for work in large numbers should take a more
active role in labor-related negotiations and improving working conditions.
Information and help center should be established. Information booth should
be established in every district and upazila about the global labor market trends
and demands. Full information, e.g., employment opportunities in each country,
terms and working conditions, job application and visa application process,
contact details of licensed agencies etc. should be incorporated in the information
list.
Increasing the number of women migrants. Women migrant workers need to
be trained in their prospective jobs. They should also be given orientation on the
culture of the recipient countries. The employment opportunities as a health
worker and a household worker in developed countries should be utilized and
organizing the proper training programs should be organized for them.
Sufficient fund should be ensured. A large number of job seekers cannot go
abroad for lack of funds. They are unable to pay the required charges to the
recruiting agencies or to the government (BOESL). The government may
consider granting them loans to meet their needs and thereafter recover the
money from their remittances.
More and more financial institutions should be involved. The process of flow
of remittances would involve many credit institutions like banks and micro
finance institutions. These credit institutions will have to provide incentives to
the migrants for remittances to be transferred officially and thereby channelize
remittances into the national market for productive investment.
Liberal policy should be implemented. Bangladesh bank policy should be
Bangladesh Bank should adopt a more liberal policy both for public and private
banks in establishing linkages with banks and financial institutions of manpower-
importing countries to facilitate easy and quick money transfer by the expatriate
workers and stop hundi. Information technology especially the use of mobile and
internet is the most important for this purpose
CONCLUSION
Bangladesh is a developing country. Every year our government declares a
deficit budget .Foreign aid and remittance contribute a huge contribution in our
budget. In 2009-2010 budgets the contribution of remittance was about 19987.40
An Analysis of Manpower Export Processing from Bangladesh 77
million US dollar. So to nurse the manpower exporting process is a demand of
time. Bangladesh has already taken some initiatives for raising export of
manpower. For Example - The program of making the list of all expatriate’s
name with their occupation and skill is running at district employment and
manpower office for reducing the cost for employing worker abroad, remove
harassment and cheating with them. Information management through ICT and
the network have been expanded in Bureau of manpower, Expatriates Welfare
Ministry, Airport and BAIRA. Recruiting agencies and foreign employer can
choose and collect workers with their own demands directly by this network. The
system of illegal sub agent that means intermediary is abolished in many cases
for establishing this database network. The program of giving online emergence
permit of outgoing workers is being implemented by Bureau of Manpower. For
sustainable growth of our economy through export of manpower and migration
the government should take some other initiatives - Training for educated
unemployed youths should be organized to send them abroad for jobs. Illiterate
and less educated unemployed youths should be involved in various training
programs to be competent for the global labor market.
There is a need for good networking with the governments and the labor related
organizations of the countries where they are likely to work. Diplomatic Missions
in the countries where Bangladeshis go for work in large numbers should take a
more active role in labor-related negotiations and improving working conditions.
Information booth should be established in every district and upazila about the
global labor market trends and demands. Full information, e.g., employment
opportunities in each country, terms and working conditions, job application and
visa application process, contact details of licensed agencies etc. should be
incorporated in the information list. Women migrant workers need to be trained
in their prospective jobs. They should also be given orientation on the culture of
the recipient countries. A large number of job seekers cannot go abroad for lack
of funds. They are unable to pay the required charges to the recruiting agencies
or to the government (BOESL). The government may consider granting them
loans to meet their needs and thereafter recover the money from their
remittances. The process of flow of remittances would involve many credit
institutions like banks and micro finance institutions. These credit institutions
will have to provide incentives to the migrants for remittances to be transferred
officially and thereby channelize remittances into the national market for
productive investment. Finally it is argued that manpower exporting process is a
crucial factor for our economy and the country. Therefore, all should be sincere
about this matter from their own position.
78 D.U. Journal of Marketing, Vol. 16, No. 1, June 2013
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