prospects of migrant workers to become …iamrindia.gov.in/writereaddata/uploadfile/sk...

PROSPECTS OF MIGRANT WORKERSTO BECOME ENTREPRENEURS: A STUDY ON

SIX VILLAGES OF BANGLADESH

Sk Mashudur Rahman1

Shreekant Sharma2

ABSTRACT

In Bangladesh a significant number of people work asexpatriates in different countries. This paper accumulatessome of the basic information on the remittance earners todevelop a guideline for encouraging entrepreneurshipamong the remittance earner families. A sample size of 300respondents has been selected through purposive samplingtechnique among the six villages of Dhaka, Chittagong andSylhet divisions. The study finds that mostly young malemembers of the family with qualifications up to secondarylevel have migrated to other countries. The most preferreddestination includes Middle East countries followed byMalaysia and Maldives. Majority of them send about 1-3lac taka per year, which is mostly used for consumptionpurposes. Only 24 per cent of respondents spent theirremittances in productive investments though 48 per cent ofrespondents aspired to run businesses after returning home,for which it was suggested that government should conducttraining programmes to enhance their technical skills.

Keywords: Entrepreneurship, remittance, labour, and expatriate

Manpower Journal, Vol.LII, Nos.1&2, January-June 2018

1 Joint Director, Bangladesh Academy for Rural Development (BARD), Kotbari, Comilla,E-mail: [email protected] Associate Faculty Member, School of Entrepreneurship and Extension, National Institutefor Micro, Small and Medium Enterprises, Hyderabad, IndiaE-mail: [email protected]

7 8 Manpower Journal, Vol.LII, Nos.1&2, January-June 2018..............................................................................................................1. IntroductionBangladesh, meaning “Bengal nation,” is a low-lying country located on theBay of Bengal between Burma and India, and has a territory of nearly 57,000square miles (147,570 square kilometers). Bangladesh boasts of a populationof 158 million people, making the rather small country the seventh most populousin the world and one of the most densely populated countries. About 61 percent of the population of Bangladesh is of working age (15 to 64 years), while34 per cent is under the age of 14, indicating a moderate youth bulge.Those who are employed in the formal labour market often work just a fewhours a week at low wages. Thus, while the estimated unemployment rate isrelatively low at about 5 per cent, the problem of underemployment prevails.Widespread poverty, underemployment, and a youthful age structure have allcontributed to the predominance of economically motivated internationalmigration from Bangladesh. Sociologists have long analysed migration in termsof the “push-pull” model. This model differentiates between push factors thatdrive people to leave home, from pull factors that attract migrants to a newlocation. Push factors occur within sending states, that is, those that sendmigrants abroad, while pull factors occur within receiving states, that is, statesthat receive immigrants from sending states abroad. Since the 1980s,Bangladesh has been an increasingly important source country in internationalflows of contract labour migration. The primary destinations for Bangladeshimigrants have been the ArabGulf states, particularly members of the GulfCooperation Council (GCC). According to the official figures of the Bureau ofManpower, Employment, and Training (BMET) of the Government ofBangladesh, over 5 million Bangladeshis migrated to work in the GCC statesbetween 1976 and 2009, with Saudi Arabia and the United Arab Emiratesbeing the top country destinations.Workers’ remittances are major sources of foreign exchange inBangladesh, and it is among the top 20 countries receiving remittanceranging from US$ 2.8 billion to US$21.7 billion (IMF, 2005). Majority ofBangladeshi migrants are unskilled and come from rural areas and poorcommunities. The BMET has classified temporary migrant population intofour categories; professional, skilled, semi-skilled and unskilled. Labourersare classified as unskilled and Bangladesh is a huge labour abundantcountry. From 1976 to 2011, about 8 million people migrated temporarilyfrom Bangladesh. In 2010, the total amount of remittance was US$11,004.73 million and in the same year 3 million 90 thousand Bangladeshishave been employed overseas (Bangladesh Bank, 2011), which has beena remarkable contribution to employment and economy of the country.Therefore, it is a prime need to assess the prospect of remittance earnersas entrepreneurs as they normally return to their own country after stayingabroad for a certain period of time. Considering the importance ofremmitances in economic development of Bangladesh, the present studyexamines the impact of foreign earnings on various socio-economic facets

Prospects of Migrant Workers to become Entrepreneurs: A Study on Bangladesh 7 9..............................................................................................................of rural households. For the purpose of this study, a purposive sample of300 rural households was taken from six high remittance receivingdistricts.The paper is structured as follows. Section 2 presents the review of literaturefollowed by methodology of the study in Section 3. Section 4 presents analysesand results, and finally conclusions are presented in Section 5.2. Review of LiteratureAlthough there are many studies dealing with various issues such as trends,determinants and impacts of remittances in recipient countries (e.g., Turkey,India, Pakistan, Kenya, Jordan, Greece, Egypt, Philippines, Mexico), but onlya few studies are available in Bangladesh conducted by the BangladeshInstitute of Development Studies (BIDS), Bangladesh Unnayan Parisad(BUP), The Refugee and Migratory Movements Research Unit of DhakaUniversity. Siddiqui (2003) presents the trend and impacts of remittance inBangladesh, “Every year some 200,000 or more Bangladeshis leave thecountry officially to work elsewhere. In the last 29 years 3.8 million labourmigrants have been recorded. Add to this, more than 1 million Bangladeshliving permanently outside the country and the extent of emigration becomesapparent. Most of these migrants send part of their earnings at home on aregular/irregular basis”.Azad (2005) suggests using remittances for the development of micro-enterprises. Sarker (2007) focuses on structural changes of remittance inBangladesh. Nabi (2007) empirically examines the macroeconomicdeterminants of remittance inflows in Bangladesh. Sobahan and Hossain(2007) reveal that Bangladesh has potential to tap huge amount ofremittances. Ahmed and Das (2007) cite policy options to promote theremittance inflow of Bangladesh. Alam (2007) mentioned among the topremittance recipient countries, Bangladesh maintained a static position of13th from 1995 to 1997, and moved to 8th position from 1998 to 2002, attestingto the stability of remittance flows to Bangladesh as compared to globalflows. He also mentioned that remittance inflow position was very high andhence likely to be sustainable. The highly country-specific, job-specific andunskilled nature of labour migration showed a very risky scenario whichpointed to the danger of un-sustainability in remittance inflows. Any crisis inthese countries, especially in the Middle East region or in Saudi Arabia, wouldlead to reduced remittance balance for Bangladesh. This is also evident fromthe current global economic meltdown. According to the database of Bureauof Manpower, Employment and Training (BMET), some 38,568 peopleobtained jobs abroad in June, 2009, a downfall (24 per cent) from 50,632 ofJanuary, 2009 (Nabi and Alam, 2011).Remittance could have a significant and positive impact on economicgrowth through enhanced levels of investment. In the context of increasing

8 0 Manpower Journal, Vol.LII, Nos.1&2, January-June 2018..............................................................................................................returns (while there are backward and forward linkages in investmentactivities), an increase in investment of one household could increaseincomes of other households. Some studies (e.g. Stark and Levhari, 1982,Ahlburg, 1991) have shown that remittances have been primarily usedfor consumption followed by home construction, debt repayment andfinancing of future migration. According to this view, remittance hadraised levels of consumption without creating a firm basis for growth inthe domestic economy. Yang (2004) revealed that remittances could leadto improved schooling, reduced child labour, increased educationexpenditure, and higher investment. Other studies pointed out a positiverelationship between household investment and worker’s remittances indeveloping countries. For instance, Brown (1994) investigated therelationship between remittances, savings and investment in Tonga andSamoa, using a micro-level analysis of the use of remittances byhouseholds. It was found that remittances make a significant contributionto savings and investment in the Island economies. Luna-Martinez (2005)argued that, by establishing new savings and investment instruments forrecipient households, a large part of remittance flows could be channeledto productive investments, thus fostering economic growth. Ang (2007)investigated the relationship between remittances and economic growthat the national and regional levels in Philippines. He found that at thenational level the use of remittance varied from country to country; therecipients of remittances commonly used these for consumption, educationand investments (Carrasco and Ro, 2007).Above findings from different studies reveal that there is a positiverelationship between remittance and economic growth. Some studies assessedthe impact of the remittances for the improvement of schooling, reducingchild labour, increasing education expenditure and higher investment.Some studies also measured the micro and macro-economic determinants ofremittances. Moreover, some studies assessed the facts (exchange raterestrictions, blank market premium, hyperinflation, effect of home GrossDomestic Product) that discourage sending remittances in the formal sector.Therefore, it can be concluded that there are very few studies dealing withmajor sectors of remittance utilization. The present study concentrates onthe improvement of the socio-economic condition of remittance recipienthouseholds considering the issue of entrepreneurship development situation,utilization and potential of remittance uses.3. Methodology of StudyThe primary data from the remittance recipient households were collectedfrom 300 respondents. The study selected six comparatively high remittancereceiving districts in the south-east Bangladesh (6th Five Year Plan, 2010).From these districts six high remittance receiving Upazilas were identified,i.e. one from each district. Further, from each Upazila a Union was selected

Prospects of Migrant Workers to become Entrepreneurs: A Study on Bangladesh 8 1..............................................................................................................based on the remittance receiving figures. Finally, six villages were identifiedunder “Comprehensive Village Development Programme” (CVDP) ofBangladesh Academy for Rural Development (BARD) for conducting thestudy. The villages were selected due to their relatively easy access to theresearch team. The six districts were Narayanganj, Comilla, Nowakhali,Cox’s Bazar, Mowlobibazar, Hobigong covering three divisions. The selectedUpazila, Union, Villages along with the number of respondents are mentionedin Table 1.Table 1: Location of Respondents (Remittance receiving Households)

Division District Upazila Union Village TotalRespon-dentsDhaka Munshiganj Sirajdikhan Basail Char 50BishonathNarayanganj Sonargaon Pirojpur Kandergaon 50Chittagong Cox’s Bazar Chokoria Khutakhali Bakkumpara 50Nowakhali Begumgonj Mirowarishpur Lalpur 50Comilla Burichang Sholonal Soigoria 50Sylhet Hobigonj Madhobpur Cowmohni Horinkhola 50Total 300Source: authors’ surveyFifty remittance recipient households from each village of each district wereinterviewed using purposive sampling method. Thus, in total, the studycovered 300 remittance recipient households.

4. Findings of the Study

4.1 Socio-economic condition of remittance earners

4.1.1 Gender and Age Composition of Remittance EarnersGender is an important indicator for remittance earning process. Due topatriarchal Muslim ideology most of the Bangladeshis believe that malemember of the family should go out for earning. Sex composition ofexpatriates is mentioned in Table 2.It is understood from the Table 2 that there are 341 male expatriatesfrom the 300 households surveyed. During the field survey no femaleexpatriate was found in that area though few women were taking part inearning remittance. The mentionable aspect in the above table is that out

8 2 Manpower Journal, Vol.LII, Nos.1&2, January-June 2018..............................................................................................................Table 2: Sex Composition of Remittance Earners

Dhaka Chittagong Sylhet

No % No % No % No % No % No %Male 55 100.0 56 100.0 52 100.0 59 100.0 63 100.0 56 100.0 341 100.0Female 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0Total 55 100.0 56 100.0 52 100.0 59 100.0 63 100.0 56 100.0 341 100.0Source: Field Survey

Cha

rB

isho

nath

Kan

derg

aon

Bakk

umpa

ra

Lalp

ur

Soig

oria

Hor

inkh

ola

Gra

nd T

otal

Tota

l %

of 341 expatriates, 63 were from Soigoria of Comilla district underChittagong Division.Age structure of the remittance earners is also important in estimatingthe potential productive human resources (Figure 1). The figure showsthat majority (26.69 per cent) of remittance earners are young people (26-30 years) having potential of doing any type of hard work. According toNational Youth Policy 2002 of Bangladesh, a significant number of familymembers i.e. one-fourth of the total family members are youth. 18.77 percent respondents belong to the age group of 31 to 35 years and 17.01 perFigure 1: Age Composition of Sample Remittance Earners (in %)

Source: Field Survey

Gen

der

Prospects of Migrant Workers to become Entrepreneurs: A Study on Bangladesh 8 3..............................................................................................................cent belong to the age group of 36 to 40 years. 16.72 per cent remittanceearners are 21 to 25 years of age. 3.52 per cent remittance earners arebelow 20 years of age and 2.93 per cent remittance earners are from 51 to55 years of age group, these people have limited capability to earn more.But the longevity rate among the remittance earners is very poor and it isonly 0.88 per cent.4.1.2 Education and Destination CountriesEducation affects almost all aspects of human life. Different studieshave revealed that educational attainment particularly of expatriates hassignificant impact on socio-economic improvement. Education in its generalsense is a form of learning in which the knowledge, skills and habits of agroup of people are transferred from one generation to the next generationthrough teaching, training or research. Formal education means systemsof schooling involving institutionalized teaching and learning in relation to acurriculum, which itself is established according to a predetermined purposeof schools in the system. Necessary data regarding formal education ofthe respondents were collected to highlight the educational status of theexpatriates.Table 3 highlights that nearly 2.93 per cent expatriates were never enrolledin school. Literacy status plays a vital role in an efficient participation andoperational skill in technical activities of the expatriates. Education ofexpatriates helps to better access the relevant technical information and tomake rational economic decisions. It reveals that out of total respondents 2.35per cent have sign knowledge. Only 4.11 per cent people completed their HigherSecondary education. 26.10 per cent have primary education and 63.93 percent have secondary education. People with S.S.C and above education areonly 4.11 per cent. It is worth mentioning that only one expatriate had a diplomaand one BA/B.com/B.Sc. in Horinkhola of Sylhet and Char Bishonath ofDhaka division respectively.From Bangladesh people go to many countries of the world and theMiddle East countries are the priority market for Bangladeshi manpower.Table 4 shows that Saudi Arabia, Dubai, United Arab-Emirates, Qatar,Dubai, Oman, Kuwait are the big markets for Bangladeshi manpower andthe rate is highest in Saudi Arabia that is 27.27 per cent followed by Dubai(17.60). About 14.66 per cent respondents are in Malaysia as it is a countryof growing economy. 12.02 per cent expatriates are staying in Maldives asit is neighbouring country and is easy to access. Singapore is also a countryof growing economy that imports manpower as about 2.35 per centrespondents stay in Singapore. There is also a manpower market is SouthAfrica and the rate is 1.47 per cent.The expatriates engage themselves in many works for earning money.In different countries they do different types of works for their livelihood as

8 4 Manpower Journal, Vol.LII, Nos.1&2, January-June 2018

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

Ta

ble

3:

Ed

uca

tio

na

l S

tatu

s o

f th

e R

em

itta

nce E

arn

ers

Lev

els

Dh

ak

aC

hit

tag

on

gS

ylh

et

Gra

nd

Tota

l

Tota

l%

Ch

ar

Kan

der

gaon

Bak

ku

mp

ara

Lalp

ur

So

igo

ria

Hori

nk

hola

Bis

ho

na

th

No.

%N

o.

%N

o.

%N

o.

%N

o.

%N

o.

%

No

t en

roll

ed

00.0

04

7.1

41

1.9

25

8.4

70

0.0

00

0.0

010

2.9

3

Sig

n K

no

wle

dg

e0

0.0

02

3.5

73

5.7

72

3.3

91

1.5

90

0.0

08

2.3

5

Pri

mar

y7

12.7

39

16.0

729

55.7

711

18.6

417

26.9

816

28.5

789

26.1

0

Cla

ss-V

I3

5.4

52

3.5

73

5.7

72

3.3

92

3.1

70

0.0

012

3.5

2

Cla

ss-V

II5

9.0

94

7.1

44

7.6

92

3.3

94

6.3

53

5.3

622

6.4

5

Cla

ss-V

III

1221.8

225

44.6

42

3.8

517

28.8

19

14.2

911

19.6

476

22.2

9

Cla

ss-I

X19

34.5

54

7.1

47

13.4

613

22.0

317

26.9

86

10.7

166

19.3

5

Cla

ss-X

or

SS

C6

10.9

14

7.1

41

1.9

23

5.0

810

15.8

718

32.1

442

12.3

2

HS

C2

3.6

42

3.5

72

3.8

54

6.7

83

4.7

61

1.7

914

4.1

1

Dip

plo

ma

00.0

00

0.0

00

0.0

00

0.0

00

0.0

01

1.7

91

0.2

9

BA

/B.c

om

/B.S

C1

1.8

20

0.0

00

0.0

00

0.0

00

0.0

00

0.0

01

0.2

9

To

tal

55100.0

056

100.0

052

100.0

059

100.0

063

100.0

056

100.0

0341

100.0

0

So

urc

e:

Fie

ld S

urv

ey

Prospects of Migrant Workers to become Entrepreneurs: A Study on Bangladesh 8 5

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

Ta

ble

4:

Dest

ina

tio

n C

ou

ntr

ies

of

Rem

itta

nce E

arn

er

Cou

ntr

yD

hak

aC

hit

tag

on

gS

ylh

et

Gra

nd

Tota

l

Ch

ar

Kan

der

gaon

Bak

ku

mp

ara

Lalp

ur

So

igo

ria

Hori

nk

hola

Tota

l%

Bis

ho

na

th

No.

%N

o.

%N

o.

%N

o.

%N

o.

%N

o.

%

Sau

di A

rab

ia18

32.7

324

42.8

610

19.2

316

27.1

213

20.6

312

21.4

393

27.2

7

Mala

ysi

a3

5.4

511

19.6

425

48.0

81

1.6

91

1.5

99

16.0

750

14.6

6

Ku

wai

t4

7.2

70

0.0

00

0.0

06

10.1

70

0.0

00

0.0

010

2.9

3

Bah

rain

47.2

70

0.0

00

0.0

00

0.0

00

0.0

00

0.0

04

1.1

7

Un

ited

Ara

b5

9.0

90

0.0

04

7.6

920

33.9

00

0.0

00

0.0

029

8.5

0

Em

irat

es

Ital

y2

3.6

40

0.0

00

0.0

01

1.6

91

1.5

90

0.0

04

1.1

7

Sin

gap

ore

610.9

12

3.5

70

0.0

00

0.0

00

0.0

00

0.0

08

2.3

5

So

uth

Afr

ica

11.8

20

0.0

00

0.0

03

5.0

81

1.5

90

0.0

05

1.4

7

Ko

rea

11.8

20

0.0

00

0.0

00

0.0

00

0.0

00

0.0

01

0.2

9

Mald

ives

35.4

53

5.3

60

0.0

00

0.0

033

52.3

82

3.5

741

12.0

2

Du

bai

23.6

412

21.4

311

21.1

51

1.6

99

14.2

925

44.6

460

17.6

0

Qat

ar4

7.2

74

7.1

40

0.0

02

3.3

94

6.3

51

1.7

915

4.4

0

Om

an1

1.8

20

0.0

02

3.8

57

11.8

61

1.5

93

5.3

614

4.1

1

Ger

man

y1

1.8

20

0.0

00

0.0

00

0.0

00

0.0

00

0.0

01

0.2

9

Lib

ya

00.0

00

0.0

00

0.0

02

3.3

90

0.0

00

0.0

02

0.5

9

Iraq

00.0

00

0.0

00

0.0

00

0.0

00

0.0

02

3.5

72

0.5

9

Su

dan

00.0

00

0.0

00

0.0

00

0.0

00

0.0

01

1.7

91

0.2

9

Tu

rkey

00.0

00

0.0

00

0.0

00

0.0

00

0.0

01

1.7

91

0.2

9

To

tal

55100.0

056

100.0

052

100.0

059

100.0

063

100.0

056

100.0

0341

100.0

0

So

urc

e: F

ield

Su

rvey


..............................................................................................................well as the betterment of their family who are in Bangladesh. Table 5 showsthat highest per cent of workers are working in hotels (10.35 per cent)followed by 9.18 per cent expatriates working in shops and 8.94 per cent aspainting workers. Other common jobs were of mason, plumber, electrician,driver, carpenter, labourer, among others. Only one expatriate is found as apeace mission worker in this study. All villages have a similar type of villagecommunity based organisation named Comprehensive Village DevelopmentProgramme (CVDP) - 2nd phase. This programme provides short term (21days) electrical, plumbing and pipe fitting training to the rural youth, who areeconomically poor members of the village. Besides, CVDP has small trainingcourse on agriculture development, poultry, fishery, livestock, and accounts

Table 5: Type of Work of Remittance Earners

Type of work Number Percentage (%)Shop Worker 39 9.18Plumbing Worker 27 6.35Workshop Worker 32 7.53Park/Resort Worker 14 3.29Mason 37 8.71Electric Worker 29 6.82Painting Worker 38 8.94Official Job 18 4.24Hotel Worker 44 10.35Cleaner 22 5.18Peace Mission Worker 1 0.24Business 11 2.59Laborer 21 4.94Security Worker 8 1.88Patrol Pump Worker 9 2.12Driver 19 4.47Agriculture Labourer 5 1.18Fishing 6 1.41Wood Carpenter 16 3.76Tailoring 12 2.82Gardener 6 1.41Holding Worker 11 2.59Total 425 100.00

Note: Respondents were found to be engaged in more than one work.Source: Field Survey


..............................................................................................................keeping and leadership management. CVDP also introduces Nation BuildingDepartments (NBDs) to the villagers for providing services and networking.These efforts directly and indirectly help rural people to build up confidenceto take initiative for income generation, both at home and abroad. In thisregard, CVDP organises 21 days’ technical training at Technical TrainingCentre (TTC) of the Government. However, the training courses were lessas compared to huge demand due to financial constraints. The villagers wantmore skill training and smooth immigration procedures for remittance earning.

Table 6 shows that 40.45 per cent of expatriates sent 1 to 2 lac taka in ayear and 28.98 per cent of expatriates sent 2 to 3 lac taka per year. In thecase of comparatively new expatriates they sent below one lac taka.Around 21.98 per cent expatriates sent 3 to 7 lac taka in a year. Only 1.27per cent respondents sent 7+ lac taka per year, they were found to be thedwellers of Chittagong and Sylhet divisions.

4.2 Remittance Uses of receiving HouseholdsThe expatriates send money to the family members in the native land andthrough this money they try to improve the position as well as the socio-economic condition of the family. The family members do not use this moneyfor a single purpose, but for multiple purposes. The remitted money is alsoused as an investment thus contributing to further development of the country.They use remittance for consuming various durables and assets, investing,savings and others. This section describes the different uses of remittancein the study area.

4.2.1 Consuming various Durables/Assets/OtherThe money received by the family members from the expatriates is used forvarious purposes. The family members consume the money for increasingtheir standard of living and purchasing many modern things that were notwith them before.

Table 7 indicates that remittance receiving households have given toppriority to the purchase of mobiles, coat, enriched food, well or costly dress,high quality home appliance, electronic goods like television, refrigerator etc.They have also spent on recreation and hygiene. It is pertinent to mentionhere that 11.14 per cent households are now using a water filter for waterpurification. Some households (15.54 per cent) have given priority toconstruction of building.

4.2.2 Investment SectorsMost of the remittance recipient households use the money for consumingdaily commodities. Nonetheless, investment of remittances in productivesectors is also happening in Bangladesh but the rate of investment is ratherlow. There is a need to enhance the investment rate of remittance in future


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

Ta

ble

6: A

mo

un

t o

f M

on

ey

sen

t (I

n L

ac)

Per

Yea

r

Am

ou

nt

Dh

ak

aC

hit

tag

on

gS

ylh

et

Gra

nd

Tota

l

Ch

ar

Kan

der

gaon

Bak

ku

mp

ara

Lalp

ur

So

igo

ria

Hori

nk

hola

Tota

l%

Bis

ho

na

th

No.

%N

o.

%N

o.

%N

o.

%N

o.

%N

o.

%

Bel

ow

18

16.3

31

1.8

53

6.9

811

22.9

20

0.0

00

0.0

023

7.3

2

1 t

o 2

1428.5

719

35.1

934

79.0

731

64.5

818

29.5

111

18.6

4127

40.4

5

2 t

o 3

918.3

723

42.5

92

4.6

55

10.4

223

37.7

029

49.1

591

28.9

8

3 t

o 4

918.3

79

16.6

72

4.6

50

0.0

010

16.3

99

15.2

539

12.4

2

4 t

o 5

714.2

92

3.7

02

4.6

50

0.0

07

11.4

83

5.0

821

6.6

9

5 t

o 6

12.0

40

0.0

00

0.0

01

2.0

81

1.6

43

5.0

86

1.9

1

6 t

o 7

00.0

00

0.0

00

0.0

00

0.0

00

0.0

03

5.0

83

0.9

6

7 +

12.0

40

0.0

00

0.0

00

0.0

02

3.2

81

1.6

94

1.2

7

To

tal

49100.0

054

100.0

043

100.0

048

100.0

061

100.0

059

100.0

0314

100.0

0

So

urc

e:

Fie

ld S

urv

ey


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

Ta

ble

7:

Co

nsu

mp

tio

n a

t P

rese

nt

Fa

cil

itie

sD

hak

aC

hit

tag

on

gS

ylh

et

Gra

nd

Tota

l

Ch

ar

Kan

der

gaon

Bak

ku

mp

ara

Lalp

ur

So

igo

ria

Hori

nk

hola

Tota

l%

Bis

ho

na

th

No.

%N

o.

%N

o.

%N

o.

%N

o.

%N

o.

%

Rad

io6

10.9

13

5.3

60

0.0

00

0.0

00

0.0

00

0.0

09

2.6

4

Tele

vis

ion

3869.0

948

85.7

18

15.3

829

49.1

539

61.9

026

46.4

3188

55.1

3

Tele

ph

on

e2

3.6

41

1.7

91

1.9

20

0.0

01

1.5

90

0.0

05

1.4

7

Mo

bil

e47

85.4

550

89.2

949

94.2

346

77.9

750

79.3

750

89.2

9292

85.6

3

Refr

igera

tor

4174.5

538

67.8

65

9.6

225

42.3

733

52.3

88

14.2

9150

43.9

9

Ov

en

47.2

70

0.0

01

1.9

20

0.0

02

3.1

70

0.0

07

2.0

5

So

lar

Pan

el

11.8

20

0.0

00

0.0

00

0.0

00

0.0

07

12.5

08

2.3

5

Co

mp

ute

r1

1.8

20

0.0

00

0.0

01

1.6

92

3.1

70

0.0

04

1.1

7

Lap

top

00.0

01

1.7

91

1.9

21

1.6

92

3.1

70

0.0

05

1.4

7

Inst

an

t0

0.0

00

0.0

00

0.0

01

1.6

90

0.0

00

0.0

01

0.2

9

Pow

er

Su

pp

ly (

IPS

)

Bu

ild

ing

1323.6

411

19.6

41

1.9

27

11.8

610

15.8

711

19.6

453

15.5

4

DV

D15

27.2

716

28.5

70

0.0

00

0.0

03

4.7

60

0.0

034

9.9

7

(co

ntd

.)


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

Wate

r F

ilte

r11

20.0

014

25.0

01

1.9

25

8.4

77

11.1

10

0.0

038

11.1

4

Co

at

4683.6

450

89.2

947

90.3

848

81.3

650

79.3

750

89.2

9291

85.3

4

Alm

ira

4683.6

449

87.5

041

78.8

541

69.4

949

77.7

846

82.1

4272

79.7

7

Ward

rob

e32

58.1

825

44.6

48

15.3

814

23.7

336

57.1

430

53.5

7145

42.5

2

So

fa24

43.6

433

58.9

310

19.2

311

18.6

440

63.4

920

35.7

1138

40.4

7

Sew

ing

1120.0

018

32.1

416

30.7

73

5.0

822

34.9

227

48.2

197

28.4

5

mac

hin

e

Pro

per

Fo

od

4683.6

449

87.5

042

80.7

746

77.9

750

79.3

748

85.7

1281

82.4

0

Bic

ycl

e6

10.9

10

0.0

00

0.0

02

3.3

90

0.0

00

0.0

08

2.3

5

Mo

tor

Bik

e0

0.0

00

0.0

00

0.0

00

0.0

01

1.5

91

1.7

92

0.5

9

l D

ress

/40

72.7

348

85.7

141

78.8

543

72.8

850

79.3

748

85.7

1270

79.1

8

Clo

thin

g

Sh

ow

case

/9

16.3

68

14.2

97

13.4

68

13.5

60

0.0

01

1.7

933

9.6

8

Chai

r

So

urc

e:

Fie

ld S

urv

ey

(Tab

le7

co

ntd

.)


..............................................................................................................which would help the overall investment in the country to grow. Figure 2shows that only 24 per cent respondents invest their remittance in theproductive sectors, while 76 per cent respondents do not invest the money inany productive sector except family affairs.

Figure 2: Investment Status of Remittances


Every year Bangladesh gets huge amount of remittance which is mainlyused for consumption. Only a small amount of this remittance is invested inproductive sectors. Table 8 indicates the real scenario of investment ofremittance. The table shows that 65.40 per cent respondents do not investremittance for productive purpose and the rate of investment for productivepurposes is highest in Bakkumpara in Chittagong division. The investment ofremittance is found to be highest for rural land purchasing (11.73 per cent)among households of Soigoria in Sylhet division. Other than land purchasing,5.28 per cent respondents invest the remittance in constructing and repairinghouse and renting lands. Another 5.57 per cent respondents use remittancefor petty business, cultivating fish, purchasing city land and cattle etc.4.2.3 Area of SavingsThe benefits of saving money are not unknown to the people of Bangladesh.People save money for security. The family members of the expatriates alsosave money from remittance though the saving is not very high. The amountof remittance received is increasing every year in the country. Figure 3indicates that 57 per cent respondents saved money from remittances lastyear.

People who are desirous of saving money can use different instrumentsfor savings. Bangladesh also offers various possibilities for saving money.Table 9 shows that majority of households (44.33 per cent) save money byDPS and the rate is highest in Kandergaon in Dhaka division. The table also


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

Ta

ble

8:

Inv

est

men

t S

ecto

rs

Pu

rch

ase

or

Dh

ak

aC

hit

tag

on

gS

ylh

et

Gra

nd

Tota

l

Inves

tmen

tT

ota

l%

Are

a

Ch

ar

Kan

der

gaon

Bak

ku

mp

ara

Lalp

ur

So

igo

ria

Hori

nk

hola

Bis

ho

na

th

No.

%N

o.

%N

o.

%N

o.

%N

o.

%N

o.

%

No

t A

pp

licab

le40

72.7

334

60.7

140

76.9

241

69.4

933

52.3

835

62.5

0223

65.4

0

Pett

y B

usi

ness

23.6

40

0.0

00

0.0

01

1.6

90

0.0

00

0.0

03

0.8

8

DP

S P

urc

hase

00.0

00

0.0

00

0.0

01

1.6

90

0.0

00

0.0

01

0.2

9

Cit

y L

an

d1

1.8

20

0.0

04

7.6

90

0.0

01

1.5

90

0.0

06

1.7

6

Ru

ral L

an

d4

7.2

711

19.6

41

1.9

22

3.3

912

19.0

510

17.8

640

11.7

3

Catt

le3

5.4

54

7.1

40

0.0

01

1.6

90

0.0

00

0.0

08

2.3

5

Fis

h0

0.0

00

0.0

00

0.0

00

0.0

00

0.0

01

1.7

91

0.2

9

Cu

ltiv

ati

on

Oth

ers

00.0

01

1.7

95

9.6

24

6.7

84

6.3

54

7.1

418

5.2

8

To

tal

5090.9

150

89.2

950

96.1

550

84.7

550

79.3

750

89.2

9300

87.9

8

No

te:

Oth

ers

incl

ud

e co

nst

ruct

ion

an

d r

epai

r o

f h

ou

se, re

nt

(lan

d);

DP

S m

ean

s P

rem

ium

Sch

eme.

So

urc

e: F

ield

Su

rvey


..............................................................................................................Figure 3: Saving from Remittances (%)


shows that about 27 per cent respondents save their money throughco-operative savings and 8.67 per cent use fixed deposit schemes of banks.Around 6.0 per cent respondents save their money through insurance whichhas gained popularity in recent years in local areas of the country.

4.2.4 Other Expenditure from RemittancesBesides assets, savings and investments, the family members of theexpatriates use the money for other purposes such as paying tuition fees,buying clothes, food, paying loan etc.

People in Bangladesh use remittance in many ways. Most of them usethe remittance for purchasing food and buying clothes. Table 10 shows that24.45 per cent respondents of the study area use remittance for foodexpenditure and for purchasing clothes. 15 per cent respondents use themoney for paying tuition fees and 14.75 per cent use it for medical treatment.

4.2.5 After-Return PlanningPeople migrate to other country for earning more money and for living acomfortable life. But no one wants to stay there for entire life as is reflected inTable 11, which shows what the respondents plan to do after returning home.The table shows that maximum number of remit tance earners(48.36 per cent) plan to run a business on returning from abroad followedby 30.02 per cent respondents who want to engage in agriculture and11.66 per cent respondents want to own a shop. 3.44 per cent respondentswant to be contractors, 1.53 per cent wants to do service and 0.57 per centwish to do CNG driving. About 4.40 per cent respondents will take decisionafter coming back.


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

Ta

ble

9:

Ty

pes

of

Sa

vin

gs

Typ

eD

hak

aC

hit

tag

on

gS

ylh

et

Gra

nd

Tota

l

Ch

ar

Kan

der

gaon

Bak

ku

mp

ara

Lalp

ur

So

igo

ria

Hori

nk

hola

Tota

l%

Bis

ho

na

th

No.

%N

o.

%N

o.

%N

o.

%N

o.

%N

o.

%

Bu

y B

on

d3

5.0

00

0.0

00

0.0

00

0.0

00

0.0

00

0.0

03

0.9

6

Insu

ran

ce

1220.0

00

0.0

00

0.0

00

0.0

03

5.8

83

4.9

218

6.0

0

DP

S27

45.0

029

44.6

213

52.0

020

40.0

018

35.2

926

42.6

2133

44.3

3

Mo

nth

ly1

1.6

70

0.0

00

0.0

06

12.0

01

1.9

61

1.6

49

3.0

0

Ban

k S

av

ing

s

Fix

ed

Dep

osi

t0

0.0

011

16.9

20

0.0

01

2.0

09

17.6

55

8.2

026

8.6

7

in B

ank

Co

op

era

tiv

e1

1.6

725

38.4

611

44.0

04

8.0

020

39.2

220

32.7

981

27.0

0

Sav

ing

s

No

nin

sti-

1 1

.67

00.0

00

0.0

00

0.0

00

0.0

05

8.2

06

2.0

0

tuti

on

al

Pers

on

al

610.0

00

0.0

01

4.0

00

0.0

00

0.0

01

1.6

48

2.6

7

Sav

ing

s

CV

DP

915.0

00

0.0

00

0.0

019

38.0

00

0.0

0

0.0

0

To

tal

60100.0

065

100.0

025

100.0

050

100.0

051

100.0

061

100.0

0312

100.0

0

So

urc

e: F

ield

Su

rvey


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

Ta

ble

10

: It

em

-wis

e R

em

itta

nce U

se

Typ

eD

hak

aC

hit

tag

on

gS

ylh

et

Gra

nd

Tota

l

Ch

ar

Kan

der

gaon

Bak

ku

mp

ara

Lalp

ur

So

igo

ria

Hori

nk

hola

Tota

l%

Bis

ho

na

th

No.

%N

o.

%N

o.

%N

o.

%N

o.

%N

o.

%

Tu

itio

n F

ee

2111.2

337

17.2

138

19.0

031

15.4

226

12.6

231

14.2

2184

15.0

0

Fo

od

5026.7

450

23.2

650

25.0

050

24.8

850

24.2

750

22.9

4300

24.4

5

Ex

pen

dit

ure

Bu

yin

g C

loth

5026.7

450

23.2

650

25.0

050

24.8

850

24.2

750

22.9

4300

24.4

5

Giv

ing

DP

S11

5.8

87

3.2

62

1.0

04

1.9

97

3.4

04

1.8

335

2.8

5

Ho

use

42.1

43

1.4

011

5.5

06

2.9

93

1.4

64

1.8

331

2.5

3

Rep

air

ing

TV

Pu

rch

ase

52.6

710

4.6

52

1.0

07

3.4

811

5.3

413

5.9

648

3.9

1

Refr

igera

tor

63.2

114

6.5

12

1.0

08

3.9

89

4.3

711

5.0

550

4.0

7

Tre

atm

en

t37

19.7

928

13.0

223

11.5

026

12.9

430

14.5

637

16.9

7181

14.7

5

Pay

ing

Lo

an

31.6

015

6.9

822

11.0

019

9.4

520

9.7

118

8.2

697

7.9

1

Giv

ing

00.0

01

0.4

70

0.0

00

0.0

00

0.0

00

0.0

01

0.0

8

Rela

tiv

es

To

tal

187

100.0

0215

100.0

0200

100.0

0201

100.0

0206

100.0

0218

100.0

01227

100.0

0

So

urc

e:

Fie

ld S

urv

ey


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

Ta

ble

11

: P

lan

s a

fter

Retu

rn

ing

Area

of

Dh

ak

aC

hit

tag

on

gS

ylh

et

Gra

nd

Tota

l

Exp

end

itu

re*

Tota

l%

Ch

ar

Kan

der

gaon

Bak

ku

mp

ara

Lalp

ur

So

igo

ria

Hori

nk

hola

Bis

ho

na

th

No.

%N

o.

%N

o.

%N

o.

%N

o.

%N

o.

%

Bu

sin

ess

3768.5

250

44.2

542

48.2

832

54.2

450

44.6

442

42.8

6253

48.3

7

Serv

ice

11.8

50

0.0

06

6.9

00

0.0

01

0.8

90

0.0

08

1.5

3

Ag

ricu

ltu

re3

5.5

639

34.5

123

26.4

45

8.4

745

40.1

842

42.8

6157

30.0

2

Co

ntr

acto

r0

0.0

01

0.8

89

10.3

40

0.0

08

7.1

40

0.0

018

3.4

4

Sh

op

Ow

ner

712.9

623

20.3

57

8.0

58

13.5

68

7.1

48

8.1

661

11.6

6

Decis

ion

47.4

10

0.0

00

0.0

013

22.0

30

0.0

06

6.1

223

4.4

0

aft

er

Co

min

g

CN

G D

rivin

g2

3.7

00

0.0

00

0.0

01

1.6

90

0.0

00

0.0

03

0.5

7

To

tal

54100.0

0113

100.0

087

100.0

059

100.0

0112

100.0

098

100.0

0523

100.0

0

*O

ne

resp

on

den

t p

rov

ides

mo

re t

han

on

e an

swer

.

So

urc

e: F

ield

Su

rvey


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

Ta

ble

12

: R

eq

uir

ed

In

stit

uti

on

al S

up

po

rt

for

Bett

er

Rem

itta

nce U

se

Su

pp

ort

Dh

ak

aC

hit

tag

on

gS

ylh

et

Gra

nd

To

tal

Ch

ar

Ka

nd

erg

ao

nB

ak

ku

mp

ara

La

lpu

rS

oig

oria

Ho

rin

kh

ola

To

tal

%

Bis

ho

na

th

No

.%

No

.%

No

.%

No

.%

No

.%

No

.%

En

han

cin

g6

9.8

41

32

0.6

31

11

7.1

99

24

.32

11

19

.64

71

6.6

75

71

8.1

0

Tech

nic

al

Kn

ow

led

ge

Need

Tra

inin

g a

bo

ut

81

5.0

97

11

.11

15

23

.44

71

8.9

28

9.4

14

9.5

24

91

5.5

6

Ag

ricu

ltu

ral

Meth

od

Do

n�t

kn

ow

61

1.3

22

64

1.2

71

82

8.1

36

16

.22

12

14

.12

10

23

.81

78

24

.76

No

t N

ecess

ary

11

20

.75

69

.52

46

.25

38

.11

78

.24

37

.14

34

10

.79

Need

Lo

an

00

.00

00

.00

23

.13

00

.00

33

.53

49

.52

92

.86

Tra

inin

g o

n S

alt

00

.00

00

.00

69

.38

00

.00

00

.00

00

.00

61

.90

Cu

ltiv

ati

on

Tra

inin

g f

or

81

5.0

96

9.5

20

0.0

00

0.0

04

4.7

15

11

.90

23

7.3

0

Catt

le R

eari

ng

Fis

hery

Tra

inin

g7

13

.21

34

.76

34

.69

00

.00

33

.53

37

.14

19

6.0

3

Bu

sin

ess

rela

ted

47

.55

00

.00

00

.00

00

.00

00

.00

00

.00

41

.27

Tra

inin

g

Dri

vin

g T

rain

ing

35

.66

23

.17

57

.81

71

8.9

23

3.5

32

4.7

62

26

.98

Po

ult

ry R

eari

ng

00

.00

00

.00

00

.00

51

3.5

15

5.8

84

9.5

21

44

.44

Tra

inin

g

To

tal

53

10

0.0

06

31

00

.00

64

10

0.0

03

71

00

.00

56

65

.88

42

10

0.0

03

15

10

0.0

0

Fie

ld S

urv

ey


..............................................................................................................4.2.6 Views of Expatriates on Institutional SupportThe expatriates earn money in different countries in the world and send theirearnings as remittance. The family members of the expatriates use the moneymeeting their needs in their own way. Table 12 presents the views/suggestionsof the respondents towards institutional support for better use of theremittances.

To invest more money in the productive sectors the expatriates needinstitutional support. About 24.76 per cent respondents had no knowledgeabout the type of support needed by them (Table 12). Only 18.10 per centrespondents opined that they need support from the government to enhancetheir technical skill and 15.76 per cent viewed that they need training onagricultural practices. The remaining 41.38 per cent respondents expressedthe need for various types of production related trainings.5. ConclusionThe study concentrates on the improvement of the socio-economic conditionof remittance recipient households considering the issue of entrepreneurshipdevelopment situation, utilisation and potential of remittance uses.From Bangladesh most of the male youth workforce goes to work in SaudiArabia, Dubai, United Arab-Emirates, Qatar, Oman, Kuwait followed byMalaysia, Maldives, Singapore and South Africa. They mostly work inconstruction, hotels and shops. Around 64 per cent of the studied expatriateshad secondary level education. Training provided under ComprehensiveVillage Development Programme proved to be beneficial in building therequired skills to take up jobs at home and abroad. About 40 per cent and 29per cent of the expatriates earned 1 to 2 lac taka and 2 to 3 lac taka annually.The incomes were used mostly for consumptions, only 15.54 per centhouseholds invested in the construction of building and only 24 per cent ofthe respondents invested money in productive sectors. Almost all therespondents wanted to come back to their homes and start someentrepreneurial activity for which the respondents desired to have training.To invest more money in the productive sectors, the expatriates need moreinstitutional support and capacity building in the productive sectors.

ReferencesAhlburg, D. (1991), Remittances and Their Impact: A study of Tonga and WesternSamoa, Pacific Policy Paper No.7, The Australian National University, Canberra.Ahmed, N. and N.K. Das (2007), Making Bangladesh a Leading Exporter of HumanResources, Paper Presented at Bangladesh Economic Association Conference,December.Alam, M.M. (2007), Sustainability of Remittances Inflow: A case study of Bangladesh.

Prospects of Migrant Workers to become Entrepreneurs: A Study on Bangladesh 9 9..............................................................................................................Alvin P. Ang (2007), “Workers’ Remittances and Economic Growth in the Philippines,”DEGIT Conference Papers c012_029, DEGIT, Dynamics, Economic Growth, andInternational Trade.Azad, A.K. (2005), Migrant Workers Remittances: A Source of Finance for Micro-Enterprise Development in Bangladesh.Bangladesh Bank (2011), “Annual Report 2009-2010”, Bangladesh Bank, Dhaka.Brown (1994), Migrants’ Remittances, Savings and Investment in the South Pacific,International Labour Review, Vol.133, No.3.Carrasco, E. and J. Ro (2007), Remittance and Development, http:// www.uiowa.edu/ifdebook/ebook2/contents/part4-II.shtmlInternational Monetary Fund (IMF) (2005), World Economic Outlook 2005,Washington, DC, IMF.Luna-Martinez, José (June 2005), Workers’ Remittances to Developing Countries: ASurvey with Central Banks on Selected Public Policy Issues, World Bank PolicyResearch Working Paper No. 3638, Available at SSRN: https://ssrn.com/abstract=757265 or http://dx.doi.org/10.2139/ssrn.757265Nabi, G.M. (2007), An Empirical Inquiry into Macro-economic Determinants ofremittances inflows in Bangladesh, MS dissertation submitted at Department ofEconomics, North South University, Bangladesh.Nabi, Md & Md. Mahmudul Alam (2011), A Study on Performance and Challenges ofRemittance Inflow in Bangladesh, pp.165-194.Sarker, B. (2007), Structural Changes of Expatriates Remittances in Bangladesh, draftpaper submitted as working paper to Bangladesh Bank.Siddiqui, T. (2003), Migration as a Livelihood Strategy of the Poor: The BangladeshCase, Dhaka: Refugee and Migratory Movements Research Unit, Dhaka University,Bangladesh.Sobahan, F. and M. Hossain (2007), Policy and Public Benefit Interventions to HelpBangladesh Achieve an Annual Migrant Remittances of US$30 Billion by 2015, Paperpresented at the seminar of Strategy for Increasing Annual Migrant Remittances forBangladesh, organized by Bangladesh Enterprise Institute, Dhaka, Bangladesh, June.Stark, O. & D. Levhari (1982), On Migration and Risk in LDCs. Economic Developmentand Cultural Change, Vol.31 (1), pp. 191-96.Yang, D. (2004), International Migration, Human Capital, and Entrepreneurship:Evidence from Philippine Migrants’ Exchange rate shocks, Ford School of PublicPolicy, Working Paper No. 20-011, University of Michigan, Ann Arbor.6th Five Year Plan (2010), Republic of Bangladesh Government.

prospects of migrant workers to become …iamrindia.gov.in/writereaddata/uploadfile/sk...

Documents