Bangladesh receives approximately $24-27 billion in remittances annually, ranking among the top 10 globally, surpassing countries like Nigeria, Vietnam, and Indonesia. This significant inflow of funds has been a point of pride for successive governments in Dhaka over the past 20 years. However, a closer examination of the data reveals a concerning disparity.
A stark comparison can be drawn with the Philippines, which receives around $36-38 billion in remittances per year, placing it fourth worldwide. Despite having a diaspora of approximately 10 million individuals, Bangladesh boasts a larger diaspora of around 13 million.
Interestingly, the Filipino migrants remit nearly twice the amount sent home by Bangladeshi migrants, highlighting a substantial gap in per-migrant remittance. While various factors contribute to this discrepancy, one key factor within Bangladesh’s control is the high cost associated with leaving the country, one of the highest in the region.
For many unskilled or semi-skilled workers heading to the Gulf Cooperation Council (GCC) countries, the total cost can amount to several thousand dollars, often acquired through loans at exorbitant interest rates, leveraging assets like land and livestock. Consequently, these workers spend a significant portion of their initial contract tenure repaying these debts rather than sending money back home, acting as an unseen financial burden. When multiplied across the approximately one million Bangladeshis who depart for work annually, this hidden cost translates into billions of dollars, benefiting no one significantly.
Furthermore, the recruitment expenses disproportionately impact those who can least afford it, resulting in a dual burden at both the individual and national levels in terms of unutilized remittance flows. The global landscape is evolving in addressing these issues, as evidenced by the recent initiatives such as the G7 Employment Working Group’s focus on responsible recruitment of migrant workers.
The upcoming G7 toolkit on responsible recruitment aims to establish standards that destination governments and ethically screened employers will be expected to enforce within their supply chains. Countries like Bangladesh stand to benefit from demonstrating compliant recruitment practices, which could lead to better partnerships with international employers and improved job opportunities for their workers.
Notably, Bangladesh has shown promise in implementing zero-cost recruitment models, as exemplified by a successful deployment of workers to Qatar for the FIFA World Cup preparations. This successful case, monitored by international organizations like the ILO and IOM, highlights the feasibility of running large-scale recruitment corridors without burdening the workers with costs.
Moving forward, it is crucial for both the private sector and government to collaborate in reforming the recruitment process, ensuring fair and transparent practices that benefit all parties involved. By adopting sustainable and ethical recruitment methods, Bangladesh can position itself as a preferred destination for international employers, safeguarding the rights and well-being of its migrant workforce while maximizing remittance inflows.
As Bangladesh enters a new decade with a sizable working-age population, it is imperative to leverage all available resources to provide meaningful employment opportunities and support the growth of this demographic dividend. Embracing responsible recruitment practices not only aligns with ethical principles but also secures the country’s position in the global labor market, ensuring a prosperous future for its workforce.
