Migrant Workers Remittances in Bangladesh PDF
Migrant Workers Remittances in Bangladesh PDF
Migrant Workers Remittances in Bangladesh PDF
A Project Sponsored by
Royal Danish Embassy in Dhaka
Project Team
Professor Sougata Ray (Project Director)
Professor Anup Kumar Sinha
Professor Shekhar Chaudhuri
September 2007
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subject. Without naming them specifically, as the list is quite long, we would like to
thank them all.
The team also gratefully acknowledges suggestions, insights and comments from a large
number of people across the globe, too many to be mentioned individually, some of
whom are affiliated to well known organizations such as Department for International
Development (DFID), International Organization of Migration (IOM), International
Labour Organization (ILO), International Monetary Fund (IMF), Organisation for
Economic Cooperation and Development (OECD),World Bank, World Trade
Organization (WTO), United Nations (UN), Directorate General for Italians Abroad and
Migration Policies, American Staffing Association (ASA), Japanese Staffing Association
(JSA), Manchester University, Japan Institute of Labour Policy and Training, Adeco
Corporation, Manpower Inc., UK and India, Team Lease, etc.; some are accomplished
non-resident Bangladeshi, Indian, Pakistani and Filipino professionals and businessmen
and many more are not so fortunate migrants from Asia, Africa and Latin America
toiling hard in the foreign soil to have the both ends meet. They were generous and
enthusiastic in meeting, speaking, discussing and even exchanging mails and contributing
meaningfully in development of the report.
The report takes a long term strategic view of a sector influenced by myriad dynamically
evolving factors not amenable to any forecasting methods. The future projections made in
this report should be interpreted as being indicative of likely trends assuming a
continuation of past patterns and likely acceleration of certain trends, rather than precise
forecasts of what will inevitably happen. They should be regarded as a ballpark estimates
for debates and discussions and should be used in conjunction with a variety of other
sources of information and intelligence. Given the vastness and sensitivity of the subject
we have deliberately guarded against being too specific in the strategy / policy
recommendations. Specific detailed plan of actions on each of the strategy
recommendations made in the report need to be worked out by teams of people involved
in human resource development, deployment, management and export in Bangladesh
drawing from multiple stakeholders Government, Industry, NGO, Education and Civil
Society who have developed deep understanding and insights into the finer nuances and
have the passions to drive the execution. During the course of this research, which has
taken away an important year from each of our life, the authors have developed a firm
conviction on the potential of this sector and recommended strategic road map for
Bangladesh. The real satisfaction would accrue to us in seeing the dream being realized
by Bangladesh. The authors will be more than happy to extend any help in this regard in
the future.
Finally, we wish thank our Institute to allow us to work on such an important research
project. However, the opinions expressed in this report are those of the authors and do not
necessarily reflect the views of Indian Institute of Management Calcutta.
Sougata Ray
Anup Kumar Sinha
Shekhar Chaudhuri
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TABLE OF CONTENT
ABSTRACT................................................................................................................... 9
I. INTRODUCTION & OVERVIEW ....................................................................... 12
II. EXPORT OF MANPOWER AND MIGRANT REMITTANCES: AN
ALTERNATIVE DEVELOPMENT STRATEGY............................................ 15
The Changing World of Jobs ........................................................................................ 16
The Impact of Increasing International Migration........................................................ 17
Moral Outcomes, Country Risk and Government Policy ............................................. 18
Wages, Skills and Remittances ..................................................................................... 19
The Economic Impact of Remittances.......................................................................... 20
The Macro Effects......................................................................................................... 21
The Micro Effects ......................................................................................................... 22
The Persistence of Unofficial Channels........................................................................ 23
The Migration Transaction ........................................................................................... 25
Some Challenges for Adopting a Strategic Approach to Remittance Flows ................ 27
The Scope of Governments Role................................................................................. 28
Concluding Remarks..................................................................................................... 30
III. OVERSEAS MANPOWER INDUSTRY IN BANGLADESH ........................ 31
Global Bangladeshi Diaspora ....................................................................................... 34
Migrant Remittances to Bangladesh ............................................................................. 35
Analysis of Remittances Globally ................................................................................ 35
Recent trends in Asian labour migration ...................................................................... 41
Global Level Issues in Manpower Export .................................................................... 42
Performance of the manpower export industry of Bangladesh..................................... 45
Types of Bangladeshi migrant workers ........................................................................ 45
Destination countries of Bangladeshi overseas workers............................................... 46
Major Occupations of Bangladeshi overseas workers .................................................. 46
Categories of overseas employment ............................................................................. 49
Rewarding Job Categories ............................................................................................ 50
Comparison of salary structures.................................................................................... 65
Top remittance sources for Bangladesh ........................................................................ 56
Cost of overseas employment ....................................................................................... 57
Issues of Bangladeshi Migrant Labor ........................................................................... 60
IV. WHICH COUNTRY TO TARGET? COUNTRY ATTRACTIVENESS
INDEX. .................................................................................................................. 63
Country Attractiveness Index ....................................................................................... 65
Dimensions of Attractiveness ....................................................................................... 67
Clustering of Countries in terms of Attractiveness....................................................... 72
V. OCCUPATIONS IN DEMAND GLOBALLY .................................................... 89
Trends in the age composition of those employed...................................................... 106
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LIST OF TABLES
Table 3.1: Number of Bangladesh immigrants in industrialized countries ...................... 34
Table 3.2: Global flows of international migrant remittances ($ million)........................ 37
Table 3.3: Top Remittances Sending Countries ($ million) ............................................. 38
Table 3.4: Top 15 Remittances Receiving Countries ($ million) ..................................... 44
Table 3.5: Different categories of Bangladeshi migrant workers ..................................... 45
Table 3.6: Overseas Employment by Profession ............................................................. 46
Table 3.7: Destination countries for Bangladeshi migrant workers ................................. 47
Table 3.8: Country wise break up of major Occupations of Bangladeshi workers migrated in
2005................................................................................................................................... 48
Table 3.9: Job Type wise grouping of Bangladeshi overseas workers in 2005................ 49
Table 3.10: Percentage of pre-departure occupation ....................................................... 49
Table 3.11: Destination countries with number of workers wanted ................................. 50
Table 3.12: Comparison of skills of migrant workers between destinations ................... 51
Table 3.13: Percentage distribution in the advertisement................................................. 51
Table 3.14: Rewarding job categories .............................................................................. 52
Table 3.15: Average monthly salaries of skilled job opportunities ................................. 52
Table 3.16: Average monthly salaries of un-skilled job opportunities............................. 53
Table 3.17: Sources of Remittances to Bangladesh (in million US$) .............................. 57
Table 3.18: Estimated Cost of migration .......................................................................... 58
Table 3.19: Size of Remittances Market in Bangladesh ................................................... 59
Table 4.1: The Demographic Implosion in the Developed World.................................... 64
Table 4.2: Immigrants as % of Total Labour Force in Leading Migrant Dependent Countries
........................................................................................................................................... 64
Table 4.3: Ranking of Countries on Country Attractiveness Index.................................. 66
Table 4.4: Cluster of Countries......................................................................................... 74
Table 4.5: Top Remitting Countries and Flow of Bangladeshi Migrants......................... 81
Table 4.6: How do the countries stack up in terms of individual earning potential ......... 84
Table 4.7: How do the countries stack up in terms of individual remitting potential....... 86
Table 5.1: Key Occupations in Demand from Bangladesh in 2005 ................................. 89
Table 5.2: Annual Salary and Remittance Potentials for Occupations in Semi Skilled and
Unskilled Category ........................................................................................................... 91
Table 5.3: Annual Salary and Remittance Potentials for Occupations in Skilled Category 92
Table 5.3: Annual Salary and Remittance Potentials for Occupations in Skilled Category92
Table 5.4: Annual Salary and Remittance Potentials for Occupations in High Skilled Category
........................................................................................................................................... 94
Table 5.5: Occupation in Demand Select Asia-Pacific Countries ................................. 98
Table 5.6: Occupation in Demand Middle East Countries ............................................ 99
Table 5.7: Occupation in Demand Select European Countries.................................... 100
Table 5.8: Occupation in Demand North American Countries.................................... 103
Table 5.9: Occupation in Demand Oceania Countries................................................. 104
Table 5.10: Occupation with Expected Highest US Demand in 2014............................ 113
Table 5.11: Occupation with Moderate US Demand in 2014 in the US......................... 116
Table 5.12: Demand and Salary Data of Occupation to be Targeted in the US ............. 118
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Table 5.13: Occupation in order of Expected Highest Additional Demand in the US 122
Table 6.1: Major Sources of Migrants to Leading Remitting Countries ........................ 125
Table 6.2: Major Migrant Workers Sending Countries Across Continents
127
Table 6.3: Average Annual Migrants Leaving for Jobs Abroad (in thousands)............. 128
Table 6.4: Top 15 Remittances Receiving Countries ($ million) ................................... 128
Table 6.5: Skill-wise Listing of Major Source Countries ............................................... 130
Table 6.6: Profile of the Major Competitors................................................................... 132
Table 6.7: South Asian Competitors: Trends in Population, labour Force, Employment and
Unemployment................................................................................................................ 135
Table 6.8: Deployment of OFWs.................................................................................... 137
Table 6.9: Major Destinations of OFWs......................................................................... 138
Table 6.10: Number of Pakistanis who proceeded abroad for Foreign Employment..... 141
Table 6.11: Country-wise Remittances Received from Abroad (million US $)............. 142
Table 6.12: Emigration for Employment from India ...................................................... 143
Table 6.13: Annual labour Outflows from India by Destination (2000-04) (%) ............ 143
Table 6.14: Sri Lanka: Foreign employment by country/gender 2000-2004.................. 145
Table 7.1: Occupation wise grouping of Bangladeshi overseas workers in 2005 .......... 146
Table 7.2: Country wise break up of major occupations of Bangladeshi migrant workers (2005)
......................................................................................................................................... 147
Table 7.3: Job Categories of Bangladeshi Migrants ....................................................... 148
Table 7.4: Home District wise Job Seeker Registration ................................................ 149
Table 7.5: Annual Incomes of Migrants Households before Migration........................ 151
Table 7.6: Unemployed Youth labour (15-24 yrs) by Level of Education..................... 151
Table 8.1: Country-wise demand for skills can be met by Bangladesh ......................... 169
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LIST OF FIGURES
Figure 3.1 Remittance Flow to Developing Countries .................................................. 39
Figure 3.2 Remittance Payments 2005 .......................................................................... 41
Figure 3.3 Worker Remittances Flows to Latin America and the Caribbean................ 42
Figure 3.4 - Top five countries with the highest % of migrants in the countrys population43
Figure 3.5 Different categories of Bangladeshi migrant workers.................................. 47
Figure 3.6 - Percentages of demanding job categories ..................................................... 54
Figure 3.7 - Renewal options of job opportunities ........................................................... 55
Figure 3.8 Comparisons of salary structures relating to food cost bearers.................... 56
Figure 3.9 Growth comparison between Bangladesh and developing countries ........... 56
Figure 3.10 Growth comparison between number of migrant workers and remittance 58
Figure 4.1 Increase in Aging population across continents ........................................... 65
Figure 4.2 Attractive Countries in the World Map ....................................................... 69
Figure 4.3 Attractive Countries on Different Dimensions ............................................ 70
Figure 4.4 Average Dependency Ratio and Remittance 2005 ....................................... 77
Figure 4.5 Average Dependency Ratio and Remittance 2015 ....................................... 77
Figure 4.6 Average Unemployment Rate and Remittance 2005 ................................... 78
Figure 4.7 Average Unemployment Rate and Remittance 2015 ................................... 79
Figure 4.8 Average Crude Birth Rate and Remittance 2005 ......................................... 79
Figure 4.9 - Average Crude Birth Rate and Remittance 2015.......................................... 80
Figure 4.10 Average Population Density and Remittance 2015.................................... 80
Figure 4.11 GINI Index and Remittance 2015................................................................ 81
Figure 4.12 Average Dependency Ratio and Ease of Migration 2015 .......................... 82
Figure 4.13 Share of Bangladesh in Total Remittance Outflow.................................... 84
Figure 4.14 Projected Remittance Potential 2015.......................................................... 85
Figure 5.1a Skill Wise break up of Countries targeted by Bangladesh in 2005 ............ 92
Figure 5.1b - Skill Wise break up of Countries targeted by Bangladesh in 2005............. 93
Figure 5.2 Difference in Remittance Potential Welder and Taxi Driver .................... 97
Figure 5.3 - Difference in Remittance Potential Die Casting Machine Operator and Carpenter
........................................................................................................................................... 98
Figure 5.4 - Difference in Remittance Potential Construction Worker and Cleaner House
keeping.............................................................................................................................. 98
Figure 5.4 - Difference in Remittance Potential Bus Driver and Plumber .................... 99
Figure 5.5 Demand for Labour in the US .................................................................... 110
Figure 5.6 - Migrants Dominated Occupation in the US ................................................ 111
Figure 5.7: The 10 industries with the largest employment Opportunities (2005-2014) 111
Figure 6.1 Global Services Location Index, 2005 ....................................................... 133
Figure 6.2 - Deployment of OFWs ................................................................................. 137
Figure 6.3 - Distribution of Remittances Received by India .......................................... 144
Figure 8.1 - Basic Model for Migrant Remittances ........................................................ 163
Figure 8.2: Seven Pronged Strategy................................................................................ 164
Figure 8.3: Direction of Change in Country Mix ........................................................... 164
Figure 8.4: Market Potential Matrix ............................................................................... 165
Figure 8.5: Mapping the Target Markets ........................................................................ 166
Figure 8.6 Share of Bangladesh in Total Remittances Outflow from Select Countries 167
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Figure 8.6 Share of Bangladesh in Total Remittances Outflow from Select Countries 167
Figure 8.7: Direction of Change in Skill Composition ................................................... 168
Figure 8.8 - Flow Chart of Migration Process of a Typical Bangladeshi Migrant Worker 174
Figure 8.9 Suggested Human Resource Export Process in Bangladesh ...................... 177
Figure 8.10 - Structure of Overseas Staffing Services Forum ........................................ 180
Figure 8.11: Changing Mix of Remitting Channels........................................................ 188
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ABSTRACT
The impact of globalization on the world economy is becoming increasingly allpervasive. Its positive impact is no longer confined to the developed countries. Even a
developing country like Bangladesh, with its weak economy, is looking at globalization
to strengthen its base. In the last decade cross border movement of people across nations,
especially the movement of skilled and the unskilled labour from developing to
developed countries has resulted in significant increases in the incomes of the former
through remittances of foreign exchange by their overseas citizens. This phenomenon has
given a boost to the economies of the developing nations. Bangladesh has an edge over
many other developing countries in its abundance of human resources. This has resulted
in its emergence as a key global player as a source country for the supply of manpower to
the developed nations. The report sets out to:
1. International migration yields two fold benefits to the source country. The migrants
earn more resulting in their economic betterment. They also remit a part of their
earnings to their families in their home countries resulting in their well being and as a
result strengthening the nations economy. These potential benefits have prompted
many developing nations to integrate migration and labour export policies into their
overall development strategies. The significance of international migration to national
economies has also prompted international organizations like the World Bank, ILO
and the UN to undertake extensive research in these areas and suggest policy
frameworks for emigration of people and on the ensuing remittances.
2. The forces of globalization are contributing to greater integration of labour
markets. Emerging technologies call for new skills in new growth poles and emerging
demographic patterns call for old skills in new locations. These developments
together mean that a much wider variety of people can potentially migrate. This
would benefit both the source country as well as the host nation.
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8. The government needs to play the overall role of an enabler in the migration
process and also in the inducement of the migrants to remit funds back home. It must
also ensure the optimal use of these funds.
9. The government has to provide legitimacy to the formation of an overseas staffing
services forumthe core hub around which the entire development strategy of
promoting official migration and remittances will revolve.
10. A number of different types of organizations will have to be involved to form
partnership with the government. The civil society organizations like the NGOs
working in the rural areas have an essential role to play in creating awareness
regarding migration opportunities among the potential migrant households. Other
organizations like self help groups can take up the task of evolving proper framework
and creating opportunities for the best use of the remitted funds. By extending such
services these organizations work as intermediaries between the government and the
people. People have a better understanding of the government policies. These
organizations thus form a strong bulwark in the national development strategy.
11. The private sector companies or the businesses need to play an integral part in the
training, funding migrants, identifying jobs, and in forming liaison with the staffing
companies at home and abroad. They need to come forward and make use of the
commercial opportunities present by creating additional facilities like vocational
training centres, providing staffing services, and make financial intermediation like
setting up micro finance institutions.
12. Bangladesh has a strong foundation. What it needs to do is to frame policies,
create partnerships, allow responsible private entrepreneurship to flourish and inject
professionalism in the management of the manpower export. All these can
significantly improve the returns to the country from migration. There is no doubt
about the gainsall it needs to do is to learn to reap maximum benefits out of this
opportunity.
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decade there will be a much greater freedom of movement of temporary workers, at least
in some areas, among the member countries of WTO. Hence, it is likely that there will be
a cumulative temporary and permanent migration of about 80-100 million labourers
around the globe.
This trend holds out a remarkable promise for the labour exporting nations like
Bangladesh, if it works out and executes an effective strategy of developing, nurturing
and exporting human resources in the coming years. Bangladesh is an important supplier
of human resourcesin fact in some developed destination countries it is a major
supplier and accounts for about 3 per cent of the global remittance income. More than
four million Bangladeshis work abroad and over a quarter million Bangladeshis join the
migrant work force every year. Currently it receives an annual remittance amount of US
$4.8 billion through official and an additional amount of US $3.0-4.0 billion through
unofficial channels. The countrys man power export industry is poised for a dramatic
growth. To date this industry has played a major role in reducing the balance of payments
problems by generating valuable foreign exchange earnings in the form of remittances.
Millions of Bangladeshis have benefited directly from the industry.
Recognizing the potential development impact that can be made in this sector, the Royal
Danish Embassy in Dhaka has sponsored this study to look into possible strategic
interventions that can help Bangladesh achieve annual remittances of US $ 30 billion by
2015. Therefore, the central question that we have addressed in this report is: How can
Bangladesh achieve an annual remittance level of US $ 30.0 billion by 2015?
This report attempts to outline a possible path and set the agenda for all the important
stakeholders in the overseas manpower industry in Bangladesh so that this ambitious
target becomes a reality. The following is a brief chapter-wise outline of the report:
Chapters II & III: An analysis of the current situation providing the economic
justification for following the given strategy taking into account the social and the
developmental issues that are important for the future well being of the country.
Chapter IV presents the analysis of the global labour market dynamics highlighting
the trends towards greater integration in labour markets and identifies and ranks the
potential labour receiving countries in terms of attractiveness to the Bangladesh
manpower export industry.
Chapter V presents a trend analysis of the occupations and skills in demand globally
and an assessment of the size of the present and the future global demand in the
professional, skilled, semiskilled and unskilled categories.
Chapter VI discusses the relative position of Bangladesh as a labour exporting
country vis--vis other major competing countries, and identifies its areas of
competitive advantages and disadvantages.
Chapter VII deals with the dynamics of the supply side of the labour market in
Bangladesh and identifies areas of improvement in education and training
infrastructure in the country and recommends various governmental and non
governmental initiatives to be taken to increase the demand for Bangladeshi migrant
workers in the international market.
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Chapter VIII presents a medium and long term strategic road map for diversifying the
portfolio of target markets and occupational categories through major transformation
of the management process, remittance transfer mechanisms, redefinition of the roles
of the existing stakeholders, and induction of new stakeholders in the manpower
export industry.
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international emigration of its citizens. Section 8 remarks on the scope and importance of
government intervention. Section 9 contains some concluding observations.
The Changing World of Jobs
The growth of international trade and investments has reduced cross border barriers quite
dramatically. Market integration has been pushed with the advent of the WTO. It is also
expected that the future increases in global trade and investments will be large with
positive economic gains accruing to all the participating countries. Compared to this
growth and reduction of transaction costs of trade, the barriers for movement of labour
remain high. There is still a hangover from the past about the necessity of protecting local
labour markets. However, the nature of jobs, their international locations and the labour
demand relative to locally available supply have all been changing with a breath taking
speed. Cutting edge technical jobs require high-end education and skills. The demand for
high skilled personnel is increasing at a rapid rate relative to supply. Most of these jobs
are located in developed high-income countries. People with requisite skills are
converging to the destination of high-income economies to avail of these opportunities. It
does not matter where one is from. If one has the skills and the education, the job is
available. For instance the IT clusters like the famous Silicon Valley, financial hubs like
Wall Street, and all the major IT firms, investment banks and consulting firms employ
people from all over the world, a large number of them coming from low-income
countries including Bangladesh. Wages and remuneration in these sectors have increased
at an astonishing pace. Many new hubs are coming up in new locations where there is a
dense network of highly skilled people.
Many developing low and medium income countries are pursuing successfully their own
industrial modernization like the countries of East Asia and particularly China, thereby
opening up new employment opportunities that require a different set of skills and
discipline. These skills are important in sustaining productivity changes in manufacturing
and related industrial activities. The creation of these jobs also calls for migration,
although for most developing countries the migration is likely to be internal rather than
international. Alongside this, jobs in activities that exhibit increasing costs (or
diminishing returns) in the entire value chain of integrated production structures, are
shifting to locations where semi-skilled people are abundant and the wage costs are low.
These could be jobs in the low end of the information technology sector like the
information technology enabled services (ITES) or the automotive ancillaries sector, and
the whole movement of outsourcing and off-shoring jobs from high income countries to
the low income countries. These sectors too provide opportunities of new employment
with some rudimentary skills.
As incomes rise in a country, the preference to see employment as the returns to
investment in human capital becomes evident. Low skill jobs and tedious jobs are much
less preferred than more skilled and hence more rewarding jobs. This situation is
becoming clear in many high-income countries. The lack of voluntary supply of labour is
compounded by the demographic changes that accompany long periods of sustained high
incomes. Population growth rates in these countries had fallen much earlier, and hence
the current population is aging very fast. This implies two distinct but interrelated
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situations arising in the unskilled labour market (for instance, being a janitor) or in
services where, (at least in terms of current technologies) virtual delivery is just not
possible. Nursing is an example of such a service. The first implication is that there is a
serious shortage of workers who are ready to accept such jobs in the local labour pool.
The second is the demand for such jobs (with low local supply response) is likely to grow
in the future as the demographic changes become more pronounced. In such situations the
supply has to be forthcoming from external sources, namely immigration (temporary or
otherwise) of labours from low-income countries. This area represents in the short to
medium-term the biggest potential opportunity for migration from low-income countries.
Over and above the nature of labour market changes discussed above, there are few
countries where there is a genuine shortage of people compared to existing and emerging
employment opportunities, independent of demographic changes or high investments in
human capital. The countries of the Middle East and some other African countries would
fit the description. However, in these economies, as development and integration with the
world economy increases, the resulting future demand for jobs may actually decline as
returns to human capital investments and development becomes more inclusive.
High rates of economic growth driven by new technologies and emerging markets,
combined with the international demographic pattern of aging, are leading to significant
relocations of investments and employment. In the long haul, the demand for high skills
will be the most important factor driving migration, but in the shorter duration of the next
couple of decades the demand for specific skills and low-end skills will be setting the
tempo for the increase in migration flows.
In this context it may be prudent to note that many low-income countries particularly in
Asia have abundant labour force. Most of these economies have surplus labour,
especially in terms of the low and unskilled work force. Thus the total global supply of
available jobs in high and medium income economies will be less than the number of
people who would wish to avail of these opportunities and migrate. In other words, there
will be competition for these jobs on a global scale.
It is in this context that the low-income countries like Bangladesh need to adopt a clear
set of enabling policies that will be an integral part of their overall development strategy.
The gains from international migration are not only to be viewed as the outcome of a
choice made by an individual economic agent. Instead they should be viewed as gains
availed by society, through appropriate macro policies that ensure that the maximum
number of individuals from that country stand to gain. The policies should also ensure
that the costs of availing of these opportunities are minimized, and that the benefits are
shared by society in terms of the positive externalities that migration can cause in a
number of different ways, especially through financial remittances.
The Impact of Increasing International Migration
Increasing international migration from a low-income economy is driven by push factors
such as the expected income that can be obtained in another economy where real wages
are higher and the quality of life perceived to be better. The pull factors are primarily
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driven by the changing pattern of employment opportunities and hence the derived
demand for labour. Broadly, as discussed in the previous section, the job opportunities
are in three segments high skill, knowledge intensive jobs, low or unskilled jobs, and
finally jobs in selected services where some specific skills are necessary, such as in the
area of nursing or paramedical support.
An interesting feature of actual migration in the last four decades indicates that the
growth in the number of international migrants has been high and constant. The growth in
remittances from these migrants has however, grown at an increasing rate during the
same period. This implies that the remittance per migrant is increasing. The developing
countries receive about 70% of total global remittances. In many developing countries
the remittances sent have become a significant source of foreign exchange earnings. This
trend has, in turn, led to some serious research on migration issues and also led to the
High Level Dialogue on International Migration and Development at the United Nations.
A number of interesting issues are being revealed from recent research being carried out
to know more about the phenomenon of international migration. One result is the fact that
migration and remittances are concentrated among and within countries. In other words
international migration affects some countries and some regions in countries more than
others. International migration also affects men and women in different ways, implying
the existence of significant gender issues. The core question that needs an answer is: How
is international migration related to the process of development? The more we understand
the emerging links between the two, the more confident we can be of designing policies
to influence the impact of international migration in the migrant sending countries.
Moral Outcomes, Country Risk and Government Policy
With increased flows of migration from the country of origin, a number of concerns crop
up. One such concern regards the migration of low or unskilled people many of whom
could be illiterate, or just functionally literate without much knowledge about the entire
transaction that entails migrating from ones home country to a new social environment.
The scope of opportunistic behaviour is high in such situations. Unscrupulous recruiting
agents can take job seekers for a ride by charging more than is warranted, providing
incomplete and incorrect information about prospects and adopting illegal processes that
can make the migrant vulnerable to prosecution under the law of the country of
destination. Many such recruiting agents could work hand in glove with similar agents in
the country of destination such that the migrating workers can be used as a cheap
resource without rights and protection under the law. Exploitation of ignorant or
vulnerable migrants is a well-known fact of life.
It may be argued that migration is a private decision taken by an individual, and hence
whatever is the outcome and consequences of that decision (positive or negative), the
regulators and policy makers should refrain from intervening. This argument is not quite
acceptable. There are two reasons for this. The first difficulty arises from a moral ethical
standpoint. When ignorant people are duped and exploited by people not adhering to
legal and moral norms, the least a government can do is to ensure that such cases become
much less frequent in the future. This, in turn entails, not only having a position on
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ensuring justice and rule of law, but also coordinating with the governments of country of
destination of the migrant. This regulatory cooperation and the deterring of opportunistic
behaviour through a set of laws governing migration are of great human consequence.
The second reason why this argument for passivity is unacceptable is the more strategic
reason as to the long-term consequences for the flow of migration from the country of
origin. Illegal migration thwarts both the push and the pull factors driving migration in
the long run. Rising risks increase the costs of migrating, and can reduce the flow. The
collective upshot of a set of private decisions to migrate illegally (with or without fully
comprehending the consequences) has an externality effect on the reputation and image
of the country of origin. That may suffice to drastically reduce acceptance of migrants
from a country where large illegal traffic is the norm rather than the exception.
In the concern for insuring a minimal quality of the lives of migrants the International
Labour Office (ILO) has developed the concept of decent work. Decent work is based
on four distinct aspects of earning a livelihood. The first pertains to employment through
which individuals not only earn their livelihood to meet basic human needs, but also use
work to affirm their identity. Jobs should be voluntarily chosen and be productive in
nature. The second aspect of decent work is about protection of rights at work. Every
worker should enjoy a certain set of basic rights in the workplace determining the
conditions of work, remuneration and leisure. These should be irrespective of the sector
and type of employment, whether organized or informal, permanent or temporary, male
or female, and non-discriminatory in every other way. Social protection is important too
especially from the vulnerabilities of sickness, old age, accidents and other contingencies
that a person out of employment is exposed to. Finally, there should be the possibility of
social dialogue that ensures that employers and employees can resolve their differences,
defend their rights, and promote future employment opportunities.
Low-income countries that send out a significant number of low or unskilled migrants
must take particular care in working with the ILO and ensuring that migrants from their
own country are subject to decent work norms. Needless to add, the obligation to ensure
this lies equally, if not more, on the part of the receiving country, where such violations
are likely. This short digression on the concept and importance of decent work as
propounded by the ILO is to re-emphasize the need to minimize the illegal flow of
migrants.
In this section the discussion so far was around the issues of migrants protection, the
paramount importance on enabling and insisting on legal flows of migration and the
necessity of the government of the country of origin taking a strategic policy position in
these matters. We now turn to the impact of emigration on the country of origin.
Wages, Skills and Remittances
In low-income labour surplus economies, the emigration of low and unskilled workers
reduces pressure on local labour markets for similar services. This is certainly a positive
gain for the individuals who remain and for the country as a whole. Even if this does not
produce instantaneous rise in local wages, the probability of getting a job locally
improves. There are positive externalities too, as the outcome of migration can be a
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reduced pressure on scare public goods and civic facilities. It may also reduce the cost of
providing future public goods.
The second positive impact pertains to the demand for skills that are required in getting
jobs abroad. They could be wide ranging from basic education and language proficiency
to more specific vocational skills. It could also raise the demand for higher education in
technical fields like engineering or management. As education becomes more oriented to
labour market outcomes, the demand for an improvement in the functional quality of
educational services will also come about. Here again, a coordinating agency is required
with the legitimacy derived from the government of the country of origin. This agency
has to monitor and scan the global job opportunities that arise and the kind of skills they
demand. It is important to grab opportunities fast and have local institutions that can be
flexible enough to impart a variety of skills quickly at affordable costs.
The third and arguably the most important positive and tangible impact is the flow of
remittances from migrants incomes earned abroad. Migrants incomes are typically sent
privately to their immediate or extended families. The augmented income of the
household that receives the remittances is of obvious positive consequence. These flows
of income not merely support higher consumption levels, but are also frequently used for
buying of assets like land or farm implements, setting up a small business venture,
ensuring education of children in the family, improving healthcare and acquiring human
capital. Sometimes remittances are in kind like medicines, or food or general supplies in
the event of an emergency. In other words this possibility is like a general insurance
facility that can be relied upon. Finally, sometimes remittances can arrive in the form of
specific purposes for a community like a village or a small rural town. For instance, a
migrant may feel obliged to build a school in his native village where he grew up. He
may have realized the hard way of the value of having a good school where others can
get themselves educated. Migrants often reveal a social commitment to give back to their
social roots. These commitments often result in activities that clearly go beyond the
private benefits of a particular family or individual. In cases where a number of people
have emigrated from a close knit neighbourhood, the remittances that flow in can be used
by collective consent for community projects and improvements in the neighbourhood
infrastructure. A part of private benefits are transferred to the community precisely
because other similar contributions are forthcoming from neighbours.
Remittances, while growing in countries such as Bangladesh, do not mean that all
migrants are going away permanently. A lot of migration is temporary in nature even
though while the migrant is away remittances are sent. The migrant may or may not
return with adequate financial capital to start and sustain a small business as a means of
livelihood, but he does certainly bring back a significant dose of experience and learning
while living and working in unfamiliar social and cultural milieus. The next section will
discuss the impact of remittances in greater detail.
The above discussion on the possible varieties of positive economic impact that migration
can bring about on the country of origin reiterates the need to receive the remittances
through legal channels. It is estimated that globally, as well as in Bangladesh, only about
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half the remittances are sent through official and transparent channels. There are two
implications of this. The first is the need to investigate what reasons lie behind migrants
choosing the unofficial channels. The second is the need to reduce this flow and expand
the official channels. That would enable the government to take steps to improve
incentives to send remittances and such that the remitted financial resources may be put
to the best possible use for addressing overarching priorities like providing economic
security, reducing deprivation and poverty and promoting small businesses and
opportunities for sustainable livelihoods.
The Economic Impact of Remittances
Remittances emanating from international migration have a number of beneficial
economic effects. Some of these effects are microeconomic in nature and have direct
consequences on the well being of the household that receives remittances. The most
obvious being an augmentation of income. Other effects are more economy wide in
nature, provided the remittance flows arrive through official channels, and have macro
economic ramifications. This section reviews some of the more important potential gains
from remittances.
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greater availability of foreign exchange resources enhances the ability of the economy to
import more essential raw materials or universal intermediates that are crucial for the
production economy. These are non borrowed resources and hence can be used for
purposes where the immediate gains are not commercial but more developmental in
nature. The second impact is the augmentation of the domestic saving rate that
remittances provide, adding to the potential flow of investable resources in the economy.
In low-income economies the added resources for investment made available without
curtailing current consumption is undoubtedly useful.
Other important issues on which international migration is expected to have an effect are
poverty alleviation and income inequality, productivity in rural agricultural and nonagricultural activities including investments and social sector spending such as schooling
and healthcare. The effects could be directly on the remittance receiving family as well as
indirectly through induced effects on the local region. Similarly some effects may be
short-run in nature, while other effects could be discernable only after some time such as
the investments in the social sector.
A very significant finding of the research on migration pertains to the impact on
inequality and poverty. Remittances into areas from very few have migrated increase
inequality while remittances into areas from where many have migrated reduce
inequality. Similarly, remittances into areas with low migration rates increase poverty,
while remittances into areas with high migration rates reduce poverty. The reason for this
result is not surprising. The first stream of migrants comes from middle and upper middle
of the income distribution. The remittances sent by them are received by relatively well
to do families in the neighbourhood. Thus inequality increases and there is no impact on
absolute poverty. As migration increases, the risks and costs decline and poorer families
can avail of migration opportunities, remittances begin to be received by poor families
and that obviously has to reduce inequality and poverty. So, creating high density
migration regions is welfare improving. This has to be a focal point of policy
interventions in developing economies.
An economy can find remittances a useful way to get resources for investment in
development projects. Indeed, many countries are beginning to focus on labour export
strategies to boost development. It must be kept in mind that to obtain these resources
though, the country has to sacrifice some human resources through migration. The loss of
such resources can have adverse short term effects on local economic production. At the
household level every household is not expected to be good both at producing output as
well as exporting labour. Most households will have an advantage in one of these
activities. The solution to this problem is to link the two types of households in the local
economy through some resource enhancing schemes such as micro credit.
Another significant potential that increased flows of migration bring is the creation of
Diasporas that can have enormous positive network externalities in creating greater
investment and business opportunities for the country of origin. The long-term benefits
that active Diasporas can bring are well documented and discernable in many parts of the
developing world especially in Asia. Remittances should therefore be looked upon as
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something more than the short-term financial gains that they provide. The long-term
potential benefits of a depository of rich experience and knowledge is well worth
nurturing. Even when migration is temporary and the migrant returns, he brings back not
only some financial capital, but a wide history of encounters with people from other
cultures and societies, work experience and business knowledge.
International financial remittances, when sent through official channels inevitably involve
the financial sector and its institutions like banks. This service produces additional
employment opportunities in banks and financial institutions. Networking with other
global financial institutions provides excellent opportunities for banks to develop their
business skills and their handling of a more diverse portfolio of assets. Financial business
experience grows and the general efficiency of the banking sector is likely to be
positively affected. In a similar fashion, improving remittance flows by minimizing
transaction costs of the remitters entails greater transparency and stronger regulatory
frameworks. This will have a beneficial spillover effect on the entire financial services
sector.
All the macroeconomic benefits discussed above are economy wide in nature and many
of them have effects that are visible in the long-term. Hence the importance of a strategic
approach to the entire issue of migration and remittances requires a comprehensive policy
package.
The Micro Effects
The microeconomic effects are more direct in the sense that the individual or the
household receiving the remittance immediately experiences a rise in disposable income.
What is done with the additional income could vary substantially within different income
groups and different localities and individual priorities. The priorities could range from
increasing essential consumption to increasing non essential consumption, it could imply
setting up and financing micro business, it could imply acquiring assets such as land, or
investments in human capital such as completion of a family members education and
training.
Each of these uses of financial resources obtained through remittances clearly has
positive effects on the local economy. Any increase in consumption expenditure induces
a rise in aggregate demand that in turn, induces additional production and employment.
Remittances act as injections of autonomous spending that have a multiplier effect on the
local economy. Remittances, moreover, are not related to local economic outcomes and
shocks. Hence remittances are truly an insurance against income fluctuations and
entitlement failures. The other types of uses are related to more long term benefits in
terms of returns that are expected to flow in the future, as in the case of the purchase of
agricultural land or the investment in human capital.
It is clear however, that households are likely to pursue the best strategies perceived for
their welfare. It could be freedom from immediate deprivation and poverty, the meeting
of a social obligation or pursuing a plan to increase the flow of future incomes. In every
single case the benefits that accrue to individuals and households at the micro level have
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a macro counterpart. Governments of low income countries spend a lot of scare resources
to promote sustainable livelihoods and reduce the level of poverty and deprivation.
Remittances have a very high opportunity cost in the sense that each taka of remittance,
liberates a taka from fiscal resources to be spend on alternative ends. This is particularly
true when remittances come into households that are more poor and vulnerable.
Just as the macro opportunity of benefiting from the externalities of networked Diasporas
accrues substantially with the passage of time, the learning for the recipients of
remittances is large. The most obvious claimant for receiving remittance from a migrant
is his immediate family or next of kin in the country of origin. The relationship between
the migrant and his family is private, but it is reasonable to assume that the migrant,
through his experiences, bring home a learning that is durable and positive. The
possibility of improving ones lot by availing of opportunities and by working hard is not
a remote abstract story told by a politician or narrated in the media. It is a living tale of
success from which much nuanced learning is possible by the family of the migrant. The
value of this learning cannot be underestimated as it may have very durable impact on
attitude to work, optimism and the importance of learning from ones mistakes. The
negative aspects of a migrants experience are unlikely to be revealed publicly, but may
be privately shared within the family.
So far we discussed micro effects that unambiguously improve individual welfare and
create positive stimulating effects in the local economy. There is also a potential of
harnessing remittances (or some part of the flow) to promote community assets in a poor
neighbourhood. It is often the case that migrants move out from a particular locality or
area, possibly driven by the demonstration effect of initial successful migration from the
area. Thus in such cases the recipients of remittances are likely to be living in the same
area and closely clustered in a set of activities such as agriculture or handicrafts. It may
be a rare case where the clustered recipients collectively decide to use part of their
additional incomes to improve local amenities or local infrastructure. Such collective
action at the local level is of great significance but these instances are likely to be
infrequent and not widespread. The potential is there to be utilized by some strategic
incentives that the government may provide to ensure additional resources if such
projects are put under consideration for execution and delivery. The design of these
incentives and the creation of innovative financial instruments are not easy. But the
potential of using remittances as an instrument of community transformation cannot be
ruled out. The community improvements have tremendous potential in improving
education (such as building new schools, or appointing more teachers) and the
improvement of healthcare services and the availability of paramedical personnel.
Finally, in the handling of remittances, provided they reach the recipient through official
channels such as banks, the externality accruing in terms of improved banking habits
cannot be ignored. Quite often, the first experience of new transaction technologies like
modern banking facilities or even the use of modern communication facilities such as a
cell phone come about through the experience of handling the migration relationship.
This creates demand for improved and more modern services. The economic impact of
such demand is obvious enough.
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Remittances should be viewed in the totality of its impact, including long-term and many
non tangible effects. This is important if the migration process is to be viewed as one of
the most important source of export earnings in terms of foreign exchange. The migration
transaction, beginning from the identification of the potential migrant to the final
developmental outcome has to be nurtured and made enduring. The countrys reputation
has to be built up patiently as an efficient exporter of labour. The essence of this
approach is an optimal mix of international trade and human resource development
strategies.
The Persistence of Unofficial Channels
We have been emphasizing the importance of official channels being used for remitting
and receiving international remittances. This is the only way to fully utilize the potential
economic benefits from the flow of remittances. However, a number of estimates by
monitoring agencies, including the ILO have put the volume of unofficial flows at around
50% of the total. This is clearly too much especially when one considers the
macroeconomic gains and the community gains that are foregone. While it may not be
realistic to expect that the unofficial channels will disappear altogether, it may be
worthwhile to seek answers to the question as to why so many people prefer the
unofficial channel so many times. There are a number of reasons, and addressing each of
these ought to be part of the overall strategy to increase remittances in general and
official channel remittances in particular.
The first and arguably the most important reason is the exchange rate premium obtained
in the black market. The demand for foreign exchange in the black market is usually
linked to illegal transactions such as smuggling, narcotics trafficking and gun running. If
the exchange rate premium could be reduced, then the Bangladesh economy would be
contributing less to illegal activities and thereby increasing overall welfare and reputation
of its economy. Exchange rate management should keep a close watch over the amount
of the black market premium. If the premium is substantial and growing, then it may be
advisable to review the market valuation of the Bangladesh Taka.
There could be another reason why people may prefer the unofficial route. The unofficial
service providers are in most cases efficient and user-friendly. The services are provided
door to door with promptness and with no paperwork. Many illiterate or just functionally
literate migrants may prefer this route where they do not have to fill up lengthy forms and
sign in a number of places. The modicum of risk that they take is usually offset by the
low transaction costs of such routes. Usually one known person taps a large number of
migrants and builds up a reputation in service provision and offers attractive premium on
exchange rates. Thus a network is established which may be difficult to dislodge.
However, the official agencies would have to take up the challenge in providing low cost
services that are competitive with the networks mentioned. This is certainly not
impossible, but the initial push has to be very decisive and well orchestrated. It is
possible to reduce the unofficial flows therefore, with close exchange rate management
and the competitive provision of customized needs across a large cross section of
remitters.
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The third and final reason why a migrant may consciously choose the unofficial route is
when the person is himself in an illegal activity or his status is not fully legitimate. In
such cases opting for the official channel may be too risky for comfort. This reason may
persist and be difficult to control. This is where cooperative efforts across international
borders to prevent money laundering and check the links these monetary flows have with
international crime are likely to come in handy.
The Migration Transaction
It may be useful to review the entire migration transaction beginning from the
identification and encouragement of the potential migrant to the optimal utilization of the
remittances for development and reduction of poverty. This exercise would be essential
in the formulation of a feasible strategy to increase and sustain remittances, and
maximize the economic benefits of the process.
The first step begins with the understanding of the demographic pool of potential
migrants, their age and skill profiles, and their location. Results of research from the
study of existing migrants may help to profile the potential migrant better. Care should be
taken to match this demographic study with the internal labour market requirements of
Bangladesh. This is the supply side beginning of the entire transaction.
The next step would be to have a data bank of labour market conditions in other countries
that are likely to be countries of destination of migrants from Bangladesh. This data base
should not be entirely based on numbers. The requirements of skills and language
proficiency should also be mapped. Finally, country specific and job sector specific
procedural requirements should be documented and listed. There must also be well
constructed training modules for orienting a migrant to the country of destination. It has
to be appreciated that when a migrant moves, there are problems of adjusting in new
social milieus, labour market dynamics and deeper issues of cultural integration and
coexistence. The matching of existing supply to global potential demand in a dynamic
fashion is the essence of this manpower mapping.
The manpower mapping in both demand and supply dimensions require a clear
understanding of procedures, needs as well as individual strategies and preferences of
potential migrants. For instance, the migration decision is made by the individual in his
capacity as a free agent. The matching of supply to demand cannot entail forcing or
coercing any individual to take up a job or go to a location against his wishes. This would
jeopardize the macro strategy of enabling the growth of the biggest foreign exchange
earning sector. Policy makers and regulators should be sensitive about the fact that
dealing with labour market players is very different from exporting commodities or other
services.
Over and above the planning aspect of the manpower mapping, there is need to ensure as
complete information as possible about recruiting agencies in Bangladesh as well as
foreign recruiting agencies. Who are to be allowed, and what regulatory requirements
they have to adhere to, are decisions that have to be made and communicated in a clear
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way. It may be reiterated, that the government must ensure that people moving through
official channels are checked, trained, and when they finally go to their foreign employer,
the concept of decent work mentioned in an earlier section insisted upon. The long term
credibility of the labour export strategy would be critically dependent on these factors.
Some Challenges for Adopting a Strategic Approach to Remittance Flows
In the description of the complete migration transaction, there are some crucial aspects
that will need special attention and effort. These aspects can be broadly classified into
two interrelated categories. The first category of challenges revolves round the imperative
to reduce risks by providing adequate resources including human capital through
education and training. It is indeed obvious that such interventions have social
externalities that can spread beyond the migration question. It will also entail legislations
and regulatory procedures that are transparent (from the perspective of clear and easy to
follow rules), ethically sound (from the perspective of human dignity and rights) and safe
(from the perspective of identifying migrants and ensuring that labour export does not get
entangled with illegal activities). The second category of challenges revolves round the
need to reduce transaction costs. Appropriate financial instruments and institutions have
to be designed along with the need to avoid wide fluctuations in the foreign exchange
rates. This section briefly discusses the areas of special challenge.
One of the most important of these is the systematic reduction of unofficial flows of
international money coming into the economy. To achieve the objective a combination of
approaches for exchange rate incentives for migrants, an efficient and customized
delivery system of remittances door step to door step, and reduction in the demand for
foreign exchange for illegal purposes is required. The difficulties in doing these are
certainly much less than the anticipated gains.
The second challenge is the maintenance and updating of the multi-country multi-sector
data bank about global labour markets. Qualitative reports about legal procedures,
cultural differences and language proficiency have to be prepared and revised
continuously. The data has to be reliable and easily obtained by any who seek
information.
The third challenge is the identification, screening and regulation of a set of agents, or
recruiter agencies both in Bangladesh and in the most important set of countries of
destination. Some tie-ups and close cooperation will be essential in ensuing that the
Bangladesh citizens get the best deal. International trust is the basis of building enduring
business relationships. Bangladesh must gain increasing credibility as a reliable and high
quality supplier of labour services. Internal reforms and institution building will be
necessary to remove any possibility of exploitation of people by shrewd opportunistic
businessmen and any possibly violation of human rights in the country of destination.
Innovative use of information technology like superior tracking of individuals and their
records are necessary.
The challenge of providing enabling services in preparing the potential migrant in
acquiring technical skills, language proficiency and cultural awareness of differences is
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going to be critical in the strategic plan to boost migration remittances significantly and
steadily. Here one ought to think of specialized and expert services for designing the
programme for preparing different categories of migrants headed for different locations.
These specialized institutions should be tied very closely, if not located within the same
institutions, with the institution that maintains the data bank and prepares more analytical
forecasts for labour demand patterns in the globe.
The biggest challenge will be to convert a growing part of the volume of remittances in
low income rural areas where the incidence of poverty is very high, into a source of
developmental micro finance to be used for creating physical infrastructural assets and
promoting sustainable livelihoods for the deprived sections of the population. This is
where the most imaginative administrative approaches, innovative financial instruments
and schemes, along with active support from civil society organizations will be required.
It will be a classic collective action challenge where community leadership and political
will are bound to be decisive.
Finally, in ensuring that migrants get decent work in destination countries, the
Government of Bangladesh must keep continuous dialogue open at diplomatic levels for
anticipating, preventing, and resolving migrants work related problems.
The Scope of Governments Role
The above sections have stressed the potential of international migration as a tool of
economic development. Economic factors such as the ability to take risks and bear costs
determine the decision to migrate. The initial impetus comes without any government
interventions. Then, as migration flows increase and remittances grow, economic benefits
emerge. This argument may seem to imply that the government can remain passive and
watch the migration process unfold. This is however, an erroneous argument.
International migration cannot be a substitute for sound development polices. While
remittances provide greater opportunities for sustainable livelihoods and improved
opportunities in the receiving country, without the right economic environment migration
can create crches and old age homes without creating the dynamics of development.
International agencies like the United Nations and its related organizations along with the
World Bank have been emphasizing the need to better integrate migration into
development policy and planning. Countries should have comprehensive migration
policies and the capacity to implement them. These policies would need continuous fine
tuning to match changing global supply of and demand for labour. These policies will
have to factor in the need for different skills emerging in different regions and cultures.
Governments need to work closely with Diasporas and develop their links with their
country of origin. This is specifically the space for government intervening in an enabling
role. Some crucial lessons for policy formation that emerge form the recent research
literature are worth keeping in mind when formulating policies. These are as follows:
Lack of development and economic opportunities drives migration. Remittances from
migration have a large potential to contribute to the creation of new economic
opportunities and reduction of poverty.
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labour market segments. It may also help identify specific factors that determine the
volume of remittances. We have already mentioned the importance of having an
integrated nodal research, planning and training agency that prepares the data and
analyses them for policy purposes.
Bangladesh has a liberal foreign exchange rate system where nationals are allowed to
have unrestricted access on the current account transactions and foreign currency
accounts held by nationals are repatriable. The exchange rate is floating and banks have
the right to set their own rates competitively in line with market forces. Remittances are
moreover, tax exempt in Bangladesh. Apart from banks, the other formal channel is the
Post Office. Bangladesh also has an outstanding foundation for linking people together
through self help groups and micro credit networks. The potential for improving on and
leveraging remittances for economic development and poverty alleviation is enormous.
Bangladesh needs to put it all together and make a quantum leap in transforming its
economic and social fabric.
Concluding Remarks
This chapter has outlined the contours of a development strategy that has international
migration as a critical pivot. The benefits are potentially very significant but they cannot
be fully reaped by individual initiatives alone. The government has to facilitate the
reaping of benefits so that social impacts are large. Laws have to be framed to minimize
illegal traffic and labour exploitation. Networking with other governments and Diasporas
is of paramount importance. Institutions must be created to process labour market
information and trends. Training institutions and financial institutions have to play an
imaginative and enabling role. This is where the government has to create incentives for
private sector partnering the public sector in reaching developmental goals. There are
challenges too for ensuring that some of the remittances are used for durable capital
accumulation and the creation of local public goods. Labour markets are changing quite
rapidly, and labour market integration is perhaps the next stage of globalization.
Competition from other developing countries is likely to be intense. Bangladesh has a
head start in having created migration flows of strength and value. The next challenge is
to sustain this advantage and leverage global opportunities in a decisive and unambiguous
manner. A comprehensive policy plan may be able to deliver all the gold that lies at the
bottom of the migration pyramid.
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Mr. Nahid Ahmed of Value Plus Consulting, Dhaka, Bangladesh has contributed significantly towards
development of this chapter.
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process of workers and provide necessary information to them and also to advise the
government for revising foreign policy according to the current discourse of manpower
export.
Under the Ordinance, the government grants license to recruitment agents for a year
which is renewable annually on recommendation of BMET on deposit of security money,
police verification of authenticity and recommendation from two members of BAIRA. In
line with the provisions of the Ordinance, a Code of Conduct for recruiting agents has
been developed to govern their business, the violation of which has provision for
punishment in the form of warning, forfeiture of security, suspension or cancellation of
license. To provide more emphasis to the overseas employment sector, the Government
has established the Ministry of Expatriates Welfare and Overseas Employment
(MEWOE) on 20 December 2001. The main functions of the Ministry are to ensure the
welfare of the expatriate workers and enhancement of the overseas employment. The
MEWOE is entrusted with protecting the rights and the interests of migrants in the host
country, as well as when they return to or are about to leave Bangladesh. More
specifically, its tasks consist of (1) ensuring the welfare of the expatriates; (2) facilitating
overseas employment; (3) increasing the resource capabilities to make them competitive;
(4) developing the skills of the labour force.
Presently BMET is under the administrative control of Ministry of Expatriates Welfare
and Overseas Employment. The BMET is the lead agency of the government in providing
national employment services to migrant workers including regulation, policy
implementation, repatriation as well as skill development. With respect to employment
BMET is involved in registration and placement of job seekers, gathering and
dissemination of information on labour market, developing curricula for training in
accordance with the demands in the international labour market facilitating workers
taking up jobs overseas, monitoring and controlling the licensed recruiting agencies,
holding the briefing sessions and issuing of clearance to those employed abroad and
facilitating the repatriation of workers in case of war and emergencies and negotiating for
their compensation. BMET provides all assistance for overseas employment free of cost.
BMET receives complaints made by any person against any recruiting agency regarding
breach of contract for employment, illegally receiving any amount in violation of any
provision of the service contact, cheating by any means by recruiting agencies etc. and
addresses grievances of the complainant. The Government has also undertaken different
savings and investment facilities for non-resident Bangladeshis. Moreover, tax holiday
and tax exemptions are also provided to encourage remittance flow into the country and
utilize it for economic development.
It is evident that there is a legal framework to regulate the recognized recruitment agents.
However, many operate without license and most recruitment is done at individual level
as can be observed from the empirical data. The recruitment process is mostly privatized
either at the level of recruitment agents or individuals. More than 700 registered
recruiting agents recruit migrant workers and they collectively recruit little less than 50
per cent of the migrant workers. These agents licensed by the government collect
information on demands and orders for foreign employment on their own initiative. The
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labour wings of overseas missions are required to examine the authenticity of the demand
notes issued by the foreign employers/agencies. After taking permission from the BMET,
the agencies recruit workers as per specifications of the foreign employers and then
process their cases for employment. The agencies depend on their own sub-agents for
recruitment. They also advertise in the newspaper for the recruitment of the workers. On
receiving application, they go through the process of selection, testing, medical
examinations and contract of employment in line with the work order. Each of the
recruits needs a clearance certificate from BMET. The recruitment agent organizes the
visa, travel documentation, air ticket and placement of workers in the receiving country
against fees which are sometime shared between the worker and employer or borne by
the employer or the worker depending upon the demand situation and competition among
the supplying countries.
The concerned department of the government has specified the level of fees that can be
charged by an agent for different services and there are specified punitive provisions for
violation. Individuals secure visas through friends and relations deployed in the host
country through their own contacts. Every employed person overseas tries to make
provision for other family members, then for relations to be followed by friends.
Sometimes such visas may also be sold to interested parties. In all cases, the travel
formalities including issue of passport, visa stamp, air ticket and BMET clearance which
are completed by travel agents against a small fee. This used to be the prevailing practice
upto 1998, when the government restricted recruitment to licensed recruitment agents
only. But in reality the practice continues even today in connivance with licensed
recruitment agents who are willing to share their stamp of approval against a fee.
The Public sector plays a very insignificant role in the recruitment of migrant workers.
Less than 2 per cent of migrant labourers from Bangladesh have been placed by the
public sector, mostly through Bangladesh Overseas Employment Services Ltd. (BOSL),
which is a wholly owned company of the government. BMET also engages in recruitment
on a limited scale. Placement by BMET was significant in the initial period and declined
dramatically since mid 1980s when the BOESL and the private sector took over.
BOESL operates as a model institution in the manpower sector to work in healthy
competition with the private agencies, but like the private recruiting agent it operates on
an adhoc basis. Any overseas employer keen to employ Bangladeshi workers sends a
letter of demand to BOESL directly or through Bangladesh embassy in the migrant
employing country. The foreign employer may also enter into an agency agreement with
BOESL for this purpose. The selection of workers by the BOESL is done is two ways.
First, the BOESL invites application through advertisements indicating positions,
requisite experience and qualification, salary and other terms of services offered. BOESL
also draws on its manpower databank of prospective migrant workers. The BOESL then
shortlists the prospective candidates and sends the list to the employer for scrutiny.
Employer may send its representative to test and interview the candidates. In such a case,
BOESL provides all logistics including trade testing facilities for the selection process.
Secondly, the BOESL may select the candidates through a committee of experts by
adhering to the criteria set by the employers. The BOESL does not charge any fee from
the clients, instead it charges a nominal permissible service fee from selected candidates.
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USA
5,00,000
Italy
70,000
Canada
35,000
Japan
22,000
Australia
15,000
Greece
11,000
Spain
7,000
Germany
5,000
South Africa
4,000
France
3,500
Netherlands
2,500
Belgium
2,000
Switzerland
1,400
Total
1,178,400
Source: The main source of this information was educated guess made by Government officials of
Bangladesh who have first hand experience with the immigrant country, reported at Siddiqui, Tasneem
(2004), Institutionalizing Diaspora Linkage the Emigrant Bangladeshis in UK and USA.
The population census data of Bangladesh does not include information on migration,
internal or international. BMET, the repository of information on short-term migration,
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34
does not have any mechanism to keep record on the long-term migrants. A study was
conducted to collate information from informed sources having first hand knowledge on
the long-term immigrants of Bangladesh. The countries on which such estimation
available are: UK, USA, Italy, Japan, Australia, Greece, Canada, Spain, Germany, South
Africa, France, Netherlands, Belgium and Switzerland. The table above presents the
estimated number of Bangladeshi migrants in these countries. It provides estimates of
fourteen countries. In these countries there are about 1.178 million Bangladeshis now
living abroad permanently either as citizen or with other valid documents.
Migrant Remittances to Bangladesh
The contribution of remittances to Bangladesh by the migrant workers and diaspora has
been significant both socially and economically. The Bangladeshi overseas workers as
per the official estimates have sent US$4.8 billion in 2006 which is 25 per cent higher
then that in the previous year. This figure represents the remittances officially recorded
by the central bank of Bangladesh. However, it has been widely reported in the media
and in the banking channels that a significant amount of remittance is made outside the
banking channel for reasons of better exchange rate, time saving, low transaction cost and
ease of remittance. Some sources, estimate that the size of unofficial remittance may be
around the same amount as the remittance made in the official channel. The unofficial
estimates indicate a much higher figure of remittances of close to US$8 billion.
Therefore, Bangladesh currently has a share of about 2-3 per cent of the global inflow of
remittances. Over the past decade, the remittances inflow owing to the export of
manpower has made a significant contribution to countrys economic growth. The
remittances have grown roughly three-fold between 2001 and 2006, from US$1.6 billion
in 2001 to US$4.8 billion in 2006, accounting for 6 per cent of the increase in GDP
between 2001 and 2006. The remittances have made significant contribution to the GNP
and helped in offsetting the unfavourable balance of payments by providing about 30 per
cent of the export earnings and 20 per cent of the import payments. The remittances of
the migrant workers constitute about 30 per cent of the national savings of the country.
Analysis of Remittances Globally
Remittances are the monies that migrants return to the country of origin. If labour is
considered an exportable commodity, than remittances are that part of the payment for
exporting labour services that returns to the country of origin. Worldwide flows of
remittances, including those to high-income countries, are estimated to have to grown to
US$268 billion in 2006. It should be emphasized that remittance data are generally under
reported, and that the IMF estimates the remittances accruing to countries that report late
or do not report, so that published world and regional remittances are larger than those
reported for individual countries. The remittances sent home by migrants from
developing countries had reached US$199 billion in 2006, up from US$188 billion in
2005, and more than double the level in 2001 and close to four times the level in 1995 as
shown in Table 3.2.
This amount, however, reflects only transfers through official channels. Econometric
analysis and available household surveys suggest that unrecorded flows through informal
channels may add 50 per cent or more to recorded flows (Global Economic Prospects
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2006). Including these unrecorded flows, the true size of remittances, is larger than
foreign direct investment flows and more than twice as large as official aid received by
developing countries. Remittances are the largest source of external financing in many
developing countries. Bangladesh is receiving only 1.8 per cent of the total remittance
Table 3.2: Global flows of international migrant remittances ($ million)
1995
2000
2001
2002
2003
2004
2005
estimate
2006
estimate
All
developing 57,798
85,231
96,348
116,697 145,016 163,176 188,170
199,098
countries
Low-income countries
12,776
21,792
25,897
32,048
39,572
40,534
45,815
46,785
Middle-income
45,021
63,439
70,451
84,649
105,444 122,642 142,355
152,313
Lower MICs
30,475
43,263
48,079
61,485
75,319
86,076
95,325
101,194
Upper MICs
14,546
20,176
22,372
23,164
30,125
36,566
47,030
51,119
East Asia & Pacific
9,701
16,682
20,105
29,476
35,309
38,774
43,934
45,317
Europe & Central Asia
8,120
13,383
12,980
14,386
17,299
22,691
30,812
32,377
Latin
America
& 13,420
20,127
24,381
28,097
34,856
41,103
47,556
53,406
Caribbean
Middle-East & North 13,358
13,202
15,082
15,595
20,702
23,419
23,542
24,773
Africa
South Asia
10,005
17,212
19,185
24,155
31,094
29,787
34,883
35,762
Sub-Saharan Africa
3,193
4,625
4,615
4,988
5,756
7,403
7,443
7,464
World
102,292 131,786 147,015 169,688 204,671 230,495 257,496
268,424
Source: The main sources of official data on migrants' remittances are the annual balance of payments
records of countries, which are compiled in the Balance of Payments Yearbook published annually by the
International Monetary Fund (IMF). Remittances are defined as the sum of workers remittances,
compensation of employees, and migrant transfers2.
flow and 2.4 per cent of the remittances flowing to developing countries. Going by the
past decades trend and with more multi lateral and bi lateral discussions, the global flow
of remittances will be expanding rather rapidly with the estimated remittance crossing
US$600 billion mark by 2015. It is expected that with implementation of better
international agreements including, GATS Mode 4, flow of temporary workers outside
the country of origin will increase significantly in near future.
To achieve a target of US$30 billion by 2015 Bangladesh has to improve its share of
global remittances substantially to about 5 per cent of the expected global remittances of
2 In migration literature, the term "migrant remittances" has generally come to refer to the transfers in cash
or in kind from a migrant to household residents in the county of origin. However, the IMF data presented
in the tables are based on a much broader definition and include three categories of data:
Workers' remittances refer to transfers in cash or in kind from migrants to resident households in the
countries of origin. Usually these are ongoing transfers between members of the same family, with
persons abroad being absent for a year or longer.
Compensation to employees refers to the wages, salaries, and other remuneration, in cash or in kind,
paid to individuals who work in a country other than where they legally reside. For example, the wages
earned by seasonal or other short-term migrant workers (i.e., abroad for less than a year) would be
included in this category, as well as border workers who work, but do not reside, in a neighboring
country. It also includes wages and salaries earned by the local staff of foreign institutions, such as
embassies and international organizations, and companies based abroad but operating locally.
Migrants' transfers refer to capital transfers of financial assets made by migrants as they move from
one country to another and stay for more than one year.
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over US$ 600 billion by 2015. If one believes the unofficial estimates, still Bangladesh
has to improve its share from current level of 3 per cent to 5 per cent.
$ billion
175
150
125
100
Private debt
and portfolio
equity
FDI
Recorded
Remittances
OD
75
50
25
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
e
20
05
e
The above chart shows the distinct growth line for remittance to the developing countries.
The other three sources of finances (private debt, Foreign Direct Investment and ODA)
have ups and downs. However, migrant remittance grew consistently. Thus, there is a
natural expectation that the industry will continue to perform similarly or better.
Table 3.3: Top Remittances Sending Countries ($ million)
1995
2000
2001
2002
2003
2004
2005
United States
Saudi Arabia
Switzerland
Germany
Spain
Russian Federation
Luxembourg
Italy
Netherlands
Malaysia
22,181
16,594
10,114
11,270
868
3,939
2,215
1,824
2,802
1,329
30,961
15,390
7,591
7,761
2,059
1,101
2,720
2,582
3,122
599
34,592
15,120
8,380
7,609
2,470
1,823
3,138
2,710
2,850
634
36,126
15,854
9,223
9,572
2,914
2,226
4,011
3,579
2,889
3,826
36,545
14,783
11,411
11,172
4,012
3,233
5,077
4,369
4,238
3,464
39,305
13,555
12,839
11,983
6,977
5,534
6,009
4,745
5,153
4,991
41,072
14,318
13,200
12,519
7,733
7,651
6,599
5,815
5,686
4,991
France
4,935
3,791
3,960
3,804
4,391
4,883
4,867
Lebanon
..
..
..
2,521
4,081
4,233
4,233
Korea, Rep.
634
972
1,014
1,474
1,852
2,497
3,336
United Kingdom
2,581
2,044
3,342
2,439
2,624
2,957
3,060
Belgium
3252
Source: IMF Remittances Statistics
3,588
3,958
1,846
2,329
2,618
2,756
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37
Table 3.4 presents the top 15 remittances receiving countries in the past two years. Most
of these countries have been the top remittances receivers for the past one decade. One
notable absentee in the list is Poland which has emerged as an important remittances
receiving country in the past few years with estimated remittances of over US$7 billion.
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38
2000
2001
2002
2003
2004
2005
2006
estimate
Mexico
4,368
7,525
10,146
11,029
14,911
18,143
21,772
25,038
India
6,223
12,890
14,285
15,754
21,727
19,843
23,548
23,548
China
1,053
6,244
8,385
13,012
17,815
19,014
22,492
22,492
Philippines
5,360
6,212
6,164
9,735
10,243
11,471
13,566
14,923
France
4,640
8,631
9,194
10,353
11,310
12,663
12,742
12,742
Spain
3,235
4,517
4,720
5,178
6,072
7,528
7,927
7,927
Belgium
4,937
4,005
3,811
4,674
5,871
6,863
7,158
7,158
United
Kingdom
2,469
3,614
4,825
4,485
5,029
6,350
6,722
6,722
Germany
4,523
3,644
3,933
4,685
5,697
6,557
6,542
6,542
Lebanon
1,225
1,582
2,307
2,544
4,850
5,723
5,723
5,723
Morocco
1,970
2,161
3,261
2,877
3,614
4,221
4,724
5,196
Bangladesh
1,202
1,968
2,105
2,858
3,192
3,584
4,251
4,810
Serbia
and
Montenegro
..
1,132
1,698
2,089
2,661
4,129
4,650
4,703
Pakistan
1,712
1,075
1,461
3,554
3,964
3,945
4,280
4,600
116
143
124
132
4,466
4,466
Romania
9
96
Source: IMF Remittances Statistics
The country receiving the most remittances was Mexico with over US$25 billion, closely
followed by India ($23.5 billion) and China ($22.5 billion). For Bangladesh the
remittances are shown as US$4.8 billion, much lower than the internal unofficial estimate
of about US$8 billion. Due to a lack of authentic data, remittance flows to Sub Saharan
African countries are also grossly underestimated. Major parts of the remittances are
concentrated in a few countries: the top 20 recipients accounted for 66 per cent of the
world total in 2004, eight being developed countries. In addition, a large, unknown
amount is transferred through informal channels or to countries that do not report
statistics on remittances. Among South Asian countries, India, Pakistan and Bangladesh
were among the top recipients. When remittances are calculated in per capita terms or as
a share of GDP, a different picture emerges. The top 20 recipients in shares of GDP are
all developing countries; all receive more than 10 per cent of GDP as remittance flows. In
South Asia, Nepal is amongst the countries most dependent on remittances. This makes
its economy more vulnerable.
It is important to note that total remittances have not declined as migration streams
"matured" in Mexico, Turkey, Egypt, Philippines and many other labour-exporting
nations. There are many reasons, including the fact that the willingness of migrants to
remit depends on economic and savings policies in the host and home countries,
exchange rate and risk factors, and the availability and efficiency of transfer facilities. In
some emigration countries, changed economic policies encouraged migrants to send
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39
home more remittances; in other cases, simply making it easier or cheaper to send money
home has increased and/or sustained remittances.
With increasing awareness of the size, magnitude and development impact of
remittances, authorities in many other developing countries are now pro-actively trying to
attract remittances. Pakistans central bank governor recently advised banks to increase
their level of commitment and interest in provision of remittance related services to
overseas Pakistanis. The central banks and governments of Bangladesh, Sri Lanka,
Philippines and India have also put in place measures to increase remittance inflows,
creating special departments within central banks or ministries for diaspora-related
issues, implementing special schemes (low-interest housing loans, insurance), facilitating
local and foreign-currency deposits, and even granting dual nationality. There are efforts
to reduce remittance costs in some countries such as Mexico, Philippines and India which
are enabling greater inflow of remittances. Some of the countries, particularly the Latin
American and Caribbean countries have benefited significantly by targeted policies and
improving the infrastructure for remittances as is evident from the following figure.
2001
2002
23
Billions
32
Billions
2005
2003
2004
38
Billions
45+
Billions
45+
54+
Billions
Billions
14
t
res
of
the
rld
Wo
the
the
US
US
US
US
US
rld
Wo
the
of
m
fro
40
est
9r
the
the
rl
Wo
m
fro
36
the
the
rld
Wo
rl
Wo
the
of
of
the
m
fro
32
t
res
of
om
6 fr
25.
t
res
est
6r
6.4
4.3
om
6 fr
18.
Figure 3.3 Worker Remittances Flows to Latin America and the Caribbean
There has been a gross mismatch between total inflow and outflow of remittances in the
IMF Data. For example, while total world inflow of remittances recorded in 2004 and
2005 are US$257.5 billion and US$268.5 billion, total world outflow of remittances
recorded are US$163 billion and US$177 billion. Without going into the causal analysis
of this discrepancy, it is safe to assume that actual remittances through formal and
informal channels are likely to be higher to the extent of 30-40 per cent for many
countries as compared to data reported in IMF Statistics.
Many countries admit foreigners for the sole purpose of employment. Usually they are
granted temporary permission to stay and work in the receiving country but the type of
work performed may be restricted. Migrant workers are often tied to a specific job and a
specific employer during the validity of their work permits. Low-skilled migrant workers
admitted temporarily are usually not allowed to bring their families with them. Skilled
migrants are more likely to be accompanied or joined by their spouse and children.
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40
The following diagram shows the top five countries with highest percentage of migrants.
It is interesting to note that, in 2005, 54 per cent of the Bangladeshi overseas workers
migrated to UAE, Kuwait, Jordan, and Singapore. Thus, Bangladeshi workers are already
in the societies where migrant workers constitute a larger section of the work force. This
phenomenon is helpful in various ways. Bangladeshi overseas recruiting companies have
greater understanding of the market and better access to information on the labour
market. The current migrant workers residing in respective countries can be used as
mentors to the new migrants. The returned migrant workers can be used to train
prospective migrant workers.
80%
74%
70%
58%
% of migrants
60%
50%
40%
40%
37%
34%
30%
20%
10%
0%
UAE
Kuwait
Jordan
Israel
Singapore
Some of the important trends of the migration of labour from Asian countries as
discussed in various research studies are summarized below:
Temporary migration of labour: labour migration in Asia is mostly on fixed term
contracts representing temporary migration. Permanent or settler migration still takes
place on a limited scale to Australia and New Zealand. The short duration has obvious
implications for recognition of migrant rights and their economic and social integration in
receiving countries.
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41
IIIIIM
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42
The international mobility of highly skilled workers is likely to increase in the near
future, prompted by faster and cheaper transportation and information, the expansion of
global labour markets, a shortage of highly educated workers in the information-age
economies and an ageing workforce in industrialized countries. There is a need to
regulate these flows through agreements to avoid unnecessary conflicts. While the Berne
Initiative seeks to develop an understanding between sending, receiving and source
countries, a harmonized global regime for the cross-border movement of people is some
way off. Agreements are the best way to harmonize policies concerning the movements
of people. These can take the form of bilateral agreements between sending and receiving
countries. The GATS process promises to better coordinate MNP through a multilateral
and legally enforceable agreement on trade in services. However, this requires expanding
and standardizing GATS definitions on occupations and duration of stay.
The movement of skilled labour has widened the gap between the developing and
developed worlds. The loss of skilled workers can hamper national development in
developing countries while contributing to the economic growth of industrialized
countries. The worker receiving countries should compensate sending countries whose
skilled migrants have acquired their education or training at public expense in the country
of origin. At present most emigrant workers pay taxes only to their host country. To
compensate sending countries, it is suggested that the taxes that migrant workers pay in
the host country would be transferred to the home country as compensation.
Temporary employment abroad can help developing countries by exposing their workers
to the working standards and labour practices of more developed countries. This
knowledge can then be applied in the home country. However, these knowledge gains
seldom result in a benefit for the sending country as, historically, these workers usually
remain in the receiving country and in most of the cases they are joined later by their
families. Financial incentives can be used by the home countries to encourage migrant
workers to return home rather than settle permanently in their host country. Further fiscal
incentives would encourage this money to be used as investment in projects upon their
return.
Sending countries are undergoing a brain-drain caused by the often permanent emigration
of their skilled workers. Developed countries, to protect the interest of developing
countries, should encourage return migration, place restrictions on recruitment, establish
good practices, and regulate recruitment agencies. In turn, developing countries need
policies that clearly define temporary status and encourage return and avoid recruitment
from sectors at risk of a brain-drain.
The first round of negotiations under the GATS resulted in very little liberalization of
Mode 4 service provision. Furthermore, commitments that were made are undermined
by cumbersome and lengthy immigration procedures, which can result in considerable
loss for businesses wishing to provide time-critical services in a foreign country. The
GATS visa would be a new class of visa with more streamlined application procedures,
and more flexible conditions, to facilitate the movement of people covered by a countrys
Mode 4 GATS commitments.
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Most remittances are returned privately by unskilled migrants, many of whom lack bank
accounts. The transaction costs of sending remittances home are extremely high. In
addition, the potential development effects of remittances are often not realized because
of the way in which remittances are transmitted and spent. Policy interventions in the
home countries are needed to make remittances a more effective development tool and
maximize the economic benefits of remittances for developing countries.
Workers living and working outside their home country continue to constitute a
vulnerable group as the rights for themselves and their families are often not addressed by
the national laws of receiving countries. Therefore the international community must
provide or improve measures of protection.
Performance of the manpower export industry of Bangladesh
The size of Bangladeshi migrants is estimated to be 5 million and it is growing steadily.
Officially, overseas employment of Bangladeshis started in 1976. There has been a steady
growth over last 30 years, both in terms of worker migration and remittances flow.
However, the remittance growth in last few years is encouraging. As mentioned earlier,
remittance grew by 25 per cent from the last year to US$4.8 billion. Systematic recording
of information on migration of Bangladeshi workers began in the mid-70s. Bureau of
Manpower, Employment and Training of Labour Ministry maintains the record. BMET
has classified temporary migrant population into four categories. These are professional,
skilled, semi-skilled, and unskilled. Doctors, engineers, nurses and teachers are
considered as professionals. Manufacturing or garments workers are considered as
skilled; while tailor, mason etc. as semi-skilled workers; housemaid, cleaner, laborers are
classified as unskilled.
Types of Bangladeshi migrant workers
Officially, 4.1 million Bangladeshi workers migrated for working mainly to 22 countries
from 1976 to 2005. The top two destinations are Saudi Arabia (50.58 per cent), UAE
(13.24 per cent). However, in 2006 for 377591 Bangladeshi migrant workers the top two
destinations are UAE (36 per cent), Saudi Arabia (29 per cent). Table 3.5 shows the
categories of the migrant workers that have migrated from Bangladesh at different
periods since 1976. However, there are differences of opinion on slotting migrant
workers between semi-skilled and skilled categories. Some people believe that a large
proportion of the workers classified as skilled actually belong to semi-skilled category.
Table 3.5: Different categories of Bangladeshi migrant workers
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Years
Professional
Skilled
Semi-skilled
Unskilled
1976-1985
6.34%
34.76%
7.35%
51.54%
1986-1995
4.72%
32.12%
20.18%
42.97%
1996-2004
3.90%
32.01%
15.19%
Source: Bureau of Manpower, Employment and Training
48.88%
44
From the above table, it appears that Bangladeshi migrant labour force is mostly
unskilled and semi-skilled. The contribution of professional and skilled labour is small.
However, there is a growth in the overall export of semi-skilled and skilled manpower
from Bangladesh.
60.00%
50.00%
40.00%
1976-1985
1986-1995
30.00%
1996-2004
20.00%
10.00%
0.00%
Professional
Skilled
Semi-skilled
Un-skilled
Worker's Category
Professional Skilled Semiskilled
Unskilled
1995
6352
59907
32055
89229
1996
3188
64301
34689
109536
1997
3797
65211
43558
118511
1998
9574
74718
51590
131785
1999
8045
98449
44947
116741
2000
10669
99606
26461
85950
2001
5940
42742
30702
109581
2002
14450
56265
36025
118516
2003
15862
74530
29236
134562
2004
12202
110177
28327
122252
Source: Bureau of Manpower, Employment and Training
The Table 3.6 depicts that the skill composition of those who migrated over this period,
in general, indicates a consistent level of comparatively high proportion of semi and
unskilled migrant workers. In 1995, less than 36 per cent of the migrant workers were in
professional and skilled category, and the rest of the 64 per cent were in semiskilled and
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45
unskilled category. By the year 2003, although the number of migrant workers increased
significantly, the proportion of professional and skilled category; and semiskilled and
unskilled category remained almost unchanged. However, there was a surge in the
proportion of professional and skilled migrants in 2004 - 44 per cent against 56 per cent
in semiskilled and unskilled category. In fact a large proportion of migrant workers
classified as skilled in BMET data have low skills and often do not possess
internationally accredited skill certification. Moreover, the proportion of migrant workers
from Bangladesh with at least a college level education has been less than 20 per cent as
compared to close to 50 per cent for Filipino overseas workers. Therefore, in reality the
export of low skilled, semi-skilled, and unskilled workers has been the dominant
behaviour of the overseas manpower industry in Bangladesh.
Increase in the flow of semi- skilled and unskilled workers in proportion to professionals
indicates two things. Firstly, Bangladesh hardly took into account that in order to advance
and protect its international market of professional and skilled workers it needed to invest
in development of its human resources in accordance with the market need. Failing to do
so has resulted in losing its traditional market to other competing countries and also to
newly emerging ones. Secondly, according to migration experts, during the early years of
the oil price hike, the Middle Eastern countries mostly needed professional and skilled
persons for their rapid infrastructure development. The 1990s saw the gradual slowing
down of the pace of infrastructure development. This does not mean that there has been
an overall reduction in the need for labour. Rather, these economies now need more semiskilled and unskilled labour for maintenance purpose and domestic work. This trend has
also affected the composition of the migrant workers from Bangladesh to these countries.
Destination countries of Bangladeshi overseas workers
The Bangladeshi migrant workers are mainly choosing the Middle Eastern countries as
their destination along with a small percentage (6 per cent-7 per cent) to South East Asia.
The following table shows the key destination countries. The most popular destination
country in the Middle East is Saudi Arabia. Half of all Bangladeshi migrant workers have
migrated to this country in the last 29 years, i.e., between 1976 and 2005. Saudi Arabia is
followed by the UAE (with about 480,000 migrants) and Kuwait (more than 380,000
labour migrants officially), Oman (more than 230,000), and to a lesser extent Bahrain,
Qatar, Libya and Iraq (until the Gulf War of 1991). In South-East Asia, Malaysia has
been the main destination country with officially more than 250,000 Bangladeshis labour
migrants during the same 29-year period. Singapore and to a much lesser extent South
Korea receive a significant number of labour migrants as well. In the last few years, the
most popular countries remained Saudi Arabia, the UAE and Kuwait, while the SouthEast Asian countries are gaining ground.
Bangladesh is receiving remittance mostly from the Middle East, USA and UK. Top five
countries contribute 86 per cent of the total remittance flow. It should be noted that
though more than 50 per cent of the migrant workers from Bangladesh are in Saudi
Arabia, but remittance flow from Saudi Arabia is around 41 per cent, indicating a
preponderance of unskilled and semi skilled Bangladeshi workers visiting this country.
IIIIIM
IM
MCCCaaallclccuuutttttataa
46
IIIIIM
IM
MCCCaaallclccuuutttttataa
2003
37346
162131
26722
28
5304
7482
4029
94
2004
47012
139031
41108
224
6948
9194
4435
1268
2005
61978
80425
47029
2911
9651
10716
4827
2114
2128
6022
44
2055
550
215
166
28
3771
3
980
1802
9101
1381
2793
950
223
14
191
2855
203
606
37
972
37
5
396
3424
8582
254190 272958
72
848
2006
129155
108671
35483
20452
20077
16301
8038
7662
7372
2798
2058
1597
1426
992
822
604
174
107
50
49
12
5148
4141
12240 9550
252702 377591
47
Table 3.8: Country wise break up of major Occupations of Bangladeshi workers migrated in 2005
Job
Bahr Italy Jordan Kuwait
Labour
4303 910
1136
16341
Cleaning Labour
145
1
22
2536
Driver
274
1
16
13002
Cook
256
6
8
4156
Farmer
23
651
House Boy
116
3
7615
Agriculture Labour
5
4
90
Worker
1421 7
234
19
Machine Operator
9
4735
4
Female Labour
2
145
Mason
533
17
Carpenter
299
62
Construction Worker 5
1
Operator
27
4
1818
12
Electrical Technician 76
2
121
Tailor
1082
102
245
Servant
167
1
5
277
Welder/ Fabricator
90
1
96
Labour
Painter
108
32
Helper
54
443
7
Source: Bureau of Manpower, Employment and Training
IIIIIM
IM
MCCCaaallclccuuutttttataa
Qatar
723
9
232
71
32
59
1
4
14
6
223
203
23
51
22
26
99
1
1
56
1291
1
5
13
1
89
3
2
42
49
6
10
1
4
27
72
Saudi Arabia
16802
15212
5651
704
2213
39
5050
122
103
4679
1289
1463
2107
215
1670
1288
14
403
2797
763
209
Spore Sudan
2828
599
5
144
3
1
4
1
1832
13
72
9
29
2083
37
212
4
1
1326
59
4
33
1
UAE
20204
3352
1917
3856
3311
12
1239
1638
517
2507
2276
54
469
1696
952
2735
921
45
1712
1509
UK Total
215 65227
466 21920
21103
256 9324
8300
7880
7474
23
6635
5482
4826
4593
4339
4323
32
4003
3879
2
3682
3299
1
2869
2846
4
2742
6
2399
48
Group
Percentage Cumulative %
Labour
89,822
38.4%
38.4%
Cleaning
31,903
13.6%
52.1%
Driver
21,496
9.2%
61.3%
Technical Personnel
20,327
8.7%
69.9%
Agriculture
16,093
6.9%
76.8%
Construction Labour 16,000
6.8%
83.7%
Catering Services
12,493
5.3%
89.0%
Source: Bureau of Manpower, Employment and Training and authors estimate
Occupation
Percentage
1
2
3
4
5
6
7
8
9
10
11
12
13
25
25
22
10
6
4
2
1
1
1
1
1
1
100
A bottom up approach has been adopted to get a more fine tuned understanding of the
more dominant current target markets and the occupational categories for Bangladesh.
There are different recruiting media that facilitate Bangladeshi citizen in obtaining
overseas employments. Some of them frequently publish job opportunities in the national
dailies. An investigation on various aspects of overseas employment opportunities that
are advertised in the newspapers could give us a better understanding of the industry.
Data were collected from the leading national newspapers, e.g. The Daily Ittefaq, The
Daily Jugantor, and The Daily Prothom Alo. However, The Daily Ittefaq is the most
popular in overseas job advertisement. Thus, we decided to focus on The Daily Ittefaq as
the population of our survey. We collected the publications of The Daily Ittefaq during a
49
Destination
Recruiting media
Overseas employer
Position name
Number of jobs
Salary
Experience required
Contract duration
Contract renewal options
Accommodation and other facilities
No. of Advertisement
22
7
1
1
1
1
1
34
% of workers wanted
71.92
12.57
8.69
4.49
0.86
0.86
0.57
100
Between January 2006 and May 2006, 29 per cent of the total overseas employees
migrated to Saudi Arabia while 36 per cent migrated to UAE. However, in case of
advertised overseas jobs, the scenario is different. 72 per cent job advertisement is for
UAE and only 12 per cent for Saudi Arabia. This is a reflection on the differences in
recruitment practices followed in two of the major destination countries. Table 3.12
shows the percentage distribution of skill categories that migrated to Saudi Arabia and
UAE for overseas employment as reported in BMET data. Table 3.13 shows skill
50
category wise overseas employment opportunities as per the advertisements in the said
countries.
Table 3.12: Comparison of skills of migrant workers between destinations
Destination/Skill Level
Saudi Arabia
UAE
Saudi Arabia
UAE
6
13
35
58
40
8
18
8
The above tables also show the difference between the profile of migrant workers who
actual departs from Bangladesh and the same of the employment opportunities in the key
destination countries. The tables show that demand for skilled and semi-skilled
employees is higher in the UAE. Further, the jobs for unskilled categories are far lee
advertised compared to other categories as the recruitment of unskilled workers is
primarily done through either referrals or agents at the grass root level.
Categories of overseas employment
It was noted that 51 advertisements published about 300 types of overseas employment
opportunities. We have categorised these job offers into different occupational classes.
For example, different welding related job offers were grouped under Welder. Thus, the
advertised job opportunities were grouped into 33 job categories.
In absence of specific reference to the Bangladeshi Migrant Industry, we put the 33 job
categories into four groups based on skill levels required to perform the jobs. The groups
are professional, skilled, semi-skilled and un-skilled. We extensively reviewed
documents relating the classification of occupation, e.g., Job classification guide from US
Equal Opportunity Commission, International Standard Classification of Occupations
(ISCO-08) Conceptual Framework, etc for an understanding of the grouping. We
consulted the Bureau of Statistics at ILO for clarification regarding skilled and semiskilled workers. We also consulted with a few stakeholders at the local industry level.
However, wherever needed we have applied our judgement for the classification of job
titles into different broader groups based on level of skills. Key destinations, average
monthly salary, number of workers required, average experience required, average
contract period are given in Annexure 1.
Jobs Currently in Demand
We have defined different job categories based on the number of positions advertised in
the newspaper. We have defined them as the demanding jobs. The most demanding job
51
categories are Mason, Cleaner, Fabricator, Carpenter and Garments Operator. Their
demand position in overseas countries is shown in the following diagram.
16
Percentages
14
12
10
8
6
4
2
0
Mason
Cleaner
Fabricator
Carpenter
Garments
Operator
Job group
Doctor
Programmer
Engineer
Teacher
Surveyor
Managerial Jobs
Please note that sample sizes are small. Thus, the information should be used as an
indication of average monthly salary.
Rewarding Skilled Job Category
12 types of skilled job categories were advertised during the study period. Average
salaries of top five categories are given in the following table.
52
Job Category
Foreman
Steel Fixer
Welder
Machine Operator
Mechanic
Job Category
Cook
Guard
Labour
Cleaner
Garments Operator
Press man (laundry)
Among the above mentioned job categories, the lowest salary is offered to the pressman
for laundries by the employers of different countries.
Renewable Job Categories
Most of the jobs are renewable (68 per cent). Only in a single advertisement, a
Bangladeshi NGO named ASA which operates its Micro Credit Programme in The
Philippines specified that the job would be not renewed (1 per cent). Remaining 31 per
cent did not specify regarding the scope for renewal after the contract period. Secondary
information suggests that the current duration of overseas stay is 5.18 years. However, as
per our study, the workers are generally contracted for 2-3 years. So, it can be said on the
basis of collected data and available information that most of the overseas jobs are
renewable.
53
1%
31%
Renewable
Not Mentioned
Not Renewable
68%
54
1600
1400
1200
1000
800
600
400
200
0
Engineer Surveyor Fabricator Mechanic Electrician Foreman Technician
Without Food
Comp. Food
Job Categories
The indifference or rather discrepancies by the companies in their salary structures may
have caused due to the difference in actual nature of the job that will be performed.
4.5
160
4.0
140
3.5
120
3.0
100
2.5
80
2.0
60
1.5
40
1.0
20
0.5
0.0
180
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
Remittance in Bangladesh
Year
Developing Countries
Bangladesh
55
In the above chart, the remittance flow to Bangladesh grew almost in parallel to that to
other developing countries. Only recently, the performance has become comparatively
better. For further development of the industry, Bangladesh needs not only more
expatriate workers but also more trained expatriate workers.
Growth relationship between overseas workers and remittance
The following chart compares the growth of overseas migrant workers and the flow of
remittance. In the initial years (19761990) there existed a similar growth for both
number of overseas workers and the remittance. However, during the 1990s there was a
large gap between the growth of number workers and the remittance flow.
Growth comparison - Placement and Remittance
300
4.5
4.0
250
200
3.0
2.5
150
2.0
1.5
100
3.5
1.0
50
0.5
0.0
0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Year
# of workers
Remittance
56
2003
1312.95
470.10
349.31
338.46
234.80
110.22
114.29
83.63
64.02
28.92
5.93
33.51
8.73
18.78
1.31
1.01
1.22
0.32
0.12
3177.63
2004
1463.30
477.64
390.49
380.39
342.56
125.29
123.29
92.70
62.64
35.34
35.38
12.61
19.18
0.44
0.19
3561.44
2005
1609.29
673.67
496.48
445.27
404.05
153.25
147.36
108.00
70.19
55.98
25.23
22.41
11.09
10.76
6.73
4.80
4.24
0.85
0.22
4249.87
In the initial stages the recruiting agencies used to receive commission from the overseas
employers for their services and did not charge the recruited workers. At that time the air
tickets were also borne by the overseas employers. But, over time, heavy competition
developed among the sending countries and the recruiting agencies. Consequently, the
arrangements drastically changed and services charges are levied now on the workers
recruited and expenses of air tickets also are borne by the workers. Over the last few
decades labour market conditions in the region have changed considerably. Nepal and
Vietnam have emerged as new sources of labour supply. This situation has pushed wages
down by about 50 per cent in some sectors of employment particularly in the Middle
East. The labour market in the South East Asia that was expanding before has also
suffered from the economic crisis that swept the region.
Overseas employment is more of demand driven market and is therefore highly biased in
favour of the labour receiving countries, which dictate the terms and conditions of
57
employment. In the labour migration process labour sending countries as well as labour
receiving countries play their roles and as such without corresponding and reciprocal
efforts from the labour receiving countries, the labour sending countries can only hope to
mitigate the negative effects of overseas employment on the workers.
All these market conditions have impact on levels of wages as well as expenses of
migration. With the shift in the incidence of airfare and commission on the migrant
workers, the Government of Bangladesh fixed the level of commission that can be
charged but in view of the secretive nature of transaction, it is hardly enforceable. Even
the migrant workers perceive that the permissible fee (commission) chargeable is much
above the government approved rate.
A study carried out by International Organization for Migration (IOM) indicates an
estimated average cost of around US$ 1500 for migration, most of which comes from
personal and family source, followed by sale/mortgage of landed property and private
loans. Obviously, the major component of the cost is the air fare and the payment to the
recruitment agent in the form of migration/visa fees. This component is unusually high in
Bangladesh when compared to other migrant sending countries in South and South East
Asia. Besides, given the complexity in migration process and long chain of intermediaries
involved, the prospective migrant workers many a time get cheated by advancing money
for employment and even when successful they may not get placement in the job
negotiated for or the wage level agreed upon. Based on a few assumptions we have
assessed the actual cost of an overseas work. There are wide variations across countries
in migrant worker policies, practices and associated costs thereof for a number of
components. As most of the Bangladeshi workers are going to Saudi Arabia, we have
taken standard prices for an average job in Saudi Arabia.
Table 3.18: Estimated Cost of migration
Sl.
No.
1
2
3
3a
3b
3c
3d
3e
4
5
6
7
8
Cost components
Cost of Work Permit
Fee to the govt. of destination countries
Fees and tentative expenses required at BMET
Advance income tax
Welfare fund
Registration on the Database
Fee for BAIRA
Others
Air Ticket
Visa Fee
Medical Test Fee
Fees to the Recruiting Agents
Training & Grooming
Total
Cost in US$
350
520
10
20
10
10
20
360
20
30
900
58
The actual cost for overseas employment rarely exceeds US$1,000 without factoring the
agency fees and training fees for people going to Middle East and other Asian countries.
The cost of migration to most of the European countries should not exceed US$1,500.
For migrating to North America, a Bangladeshi migrant worker may have to spend as
much as US$2,500.
The remittance industrys revenue from overseas Bangladeshi workers and migrant flows
is estimated at between US$250 million to US$400 million per year. The industry as
defined here includes not only the banks and money transfer agents but also the courier
companies and foreign exchange houses. The estimates are arrived at by the following
assumptions:
Table 3.19: Estimated Size of Remittances Market in Bangladesh
Item
The estimated system revenues currently may be much higher than US$300 million as the
unofficial estimate of total remittance flows to be as high as US$8 billion. Moreover,
many money transfer agencies charge much higher than the US$10.00 per transfer used
and the Fees for other transfer methods such as door to door or pick up are much higher.
Foreign exchange spread may range from 0.7 per cent to 3 per cent. With the projected
remittances of US$30 billion by 2015, the remittance industrys revenue is expected to
cross US$1 billion, a huge business opportunity for all players in the industry.
From its current position Bangladesh has to grow its remittances income by 20 per cent
year-on-year to generate remittances income of approximately US$30 billion 2015.
Bangladesh has to improve its current market share and to capture more than 5 per cent
share of the global inflow of remittances. By 2015 a stock of 7-8 million Bangladeshi
migrants have to be gainfully employed in the global labour market to generate the
targeted remittances. Therefore, the industry needs to find employment for over 6-7
million Bangladeshis in the next one decade, generate new employment opportunities for
800,000-900,000 people annually. In the process, the industry can cause indirect
employment a few hundred thousand people domestically. However, the major future
challenges that are identified for Bangladesh for achieving such ambitious yet achievable
goal of US$30 billion remittances by 2015 and harnessing remittance for economic
development of the country as below:
Lack of Skilled and Professional Personnel: Although the number of skilled and
professional personnel is increasing, but it is still 44 per cent of total manpower exported.
The unskilled workers are vulnerable and are not paid what they really deserve. The
59
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.
Constraints on Money Transfer: At present, no MFIs/NGOs can involve in the process
of transferring remittances to the families of migrants due to regulatory constraints. In
Bangladesh only the formal banking sector has the authority to transfer remittances. The
MFIs/NGOs are still unable to tap migrant families with diversified savings and credit
products. Only the formal financial institutions have the authority to offer different
savings and credit products. Moreover, according to the nature of Microfinance
operations in Bangladesh most of the MFIs/NGOs follow the target group approach and
their target group are poor people. However, most of the families of migrants are
somewhat well off and therefore they do not fall in the target group category of
MFIs/NGOs.
Utilization of Remittance in Non-productive Investment: This is another crucial
challenge for Bangladesh. In Bangladesh, a study has reported that less than 5 per cent of
remittances are utilized for productive investment and a significant portion of remittances
are utilized for non-productive investment. So the remittances cannot be utilized for
economic development and industrialization that are necessary for the socioeconomic
development of the country.
Government Foreign Policy: The Government foreign policy and diplomatic
relationship and promotional activities are important to increase manpower export.
Although the government has undertaken different strategies to boost manpower export,
Bangladesh is still far behind in establishing diplomatic relationships and promotional
activities as compared to the other countries.
Issues of Bangladeshi Migrant Labour
Some of the important issues and problems facing the migrant labour as reported in
various studies and media are:
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.
A large proportion of the workers abroad send the remittances via hundi instead of
through bank transactions as bank procedures are difficult and costly and the funds
delivery takes comparably longer time.
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 he/she enters the overseas market, preventing him/her from practising the
core skills.
60
Although intra-corporate movement is already one of the most liberal categories within
GATS Mode 4, due to negligible presence of Bangladeshi enterprises abroad, Bangladesh
is not in a position to benefit from this opportunity unlike India and China. Most of the
unemployed skilled and non-skilled workers need to migrate to other countries on the
basis of acquired market access through bilateral foreign relations or markets explored by
the recruiting agents.
Bangladesh is a Muslim country and has a dubious international image due to some
religious extremist groups. Hence it is not on the priority list for many of the labour
demanding countries. There is a crying need to build a proper image of the country
abroad to get benefit of foreign labour markets.
The trade attachs of the country abroad normally facilitate Bangladeshi emigrants or
take care of them in emergencies. The competitive situation, however, demands that they
should go further and find market access to promote this sort of trade.
Due to social and cultural reasons the percentage of women workers is low. 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.
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.
In Bangladesh, migrant workers lack proper bodies to represent them both in their home
country as well as the host countries. Associations that represent migrant workers are the
Welfare Association of Repatriated Bangladeshi Employees (WARBE) and the
Bangladeshi Ovhibashi Mohila Sramik Association (BOSMA), formerly known as the
Bangladeshi Women Migrant Association (BWMA). These associations are plagued by
shortage of financial resources and organizational capacity and have very limited reach.
61
PROFESSIONAL
Broad Job
Categories
SL
No
Job
Categories
1
2
Doctor
Engineer
3
4
5
Programmer
Teacher
Managerial
Job
Surveyor
Main
Destination
Avg. Salary
/ Month (USD)
Position
Number
Saudi Arabia
UAE, Saudi
Arabia
Japan
Saudi Arabia
UAE, Saudi
Arabia
UAE, Saudi
Arabia
1380
1000
106
2.8
6
Avg.
Contract
Period
2
2.3
1150
690
620
15
2
78
5.5
7.5
2.3
650
28
5.6
2.3
410
229
5
4.6
2.5
570
16
7.2
410
540
400
370
420
81
192
304
94
2.5
6
5.1
5
5.9
2.5
2.2
2
2.5
2.3
5.2
4.8
5.2
5.5
6.8
3
2.8
2.4
2.8
2.5
2.6
2.6
2.5
2
2.5
3
2.6
3
2.7
3
2
2.3
2.5
Total Position
1
2
SKILLED
3
4
5
6
7
8
9
10
11
12
Company
Assistant
Foreman
Nurse
Steel Fixer
Electrician
Fabricator
Machine
Operator
Mechanic
Technician
Welder
Driver
Supervisor
Saudi Arabia
UAE
UAE, Saudi
Arabia
Saudi Arabia
UAE
Saudi Arabia
UAE
Mauritius
UAE
UAE
Saudi Arabia
UAE
Saudi Arabia
420
360
430
380
400
Duct Man
Mason
Plumber
Painter
Pipe Fitter
Sales Man
Scaffolder
Carpenter
Garments
Operator
UAE
UAE
UAE
UAE
UAE
Australia
UAE, Qatar
UAE
Mauritius
310
240
320
240
300
29
22
164
215
23
1145
23
501
71
26
141
240
290
150
299
267
4.3
4.8
4.4
4.6
4.3
4
5
5.6
4.1
Labour
Guard
Cook
Cleaner
Press Man
Kuwait
UAE
Saudi Arabia
170
170
200
150
110
1328
255
52
25
304
12
4.3
4
4
4.5
3.5
SEMI-SKILLED
Total Position
UNSKILLED
Total Position
1
2
3
4
5
6
7
8
9
1
2
3
4
6
Avg
Exp
UAE
Total Position
62
63
Japan
126,505,000
104,920,000
Italy
57,343,000
41,197,000
-16,146,000
Ukraine
50,658,000
39,302,000
-11,356,000
Spain
39,634,000
30,226,000
-9,408,000
Germany
82,178,000
73,303,000
-8,875,000
Rumania
22,402,000
16,419,000
-5,983,000
Bulgaria
8,279,000
5,673,000
-2,606,000
Hungary
10,076,000
7,488,000
-2,588,000
36,255,000
-2,485,000
Poland
38,740,000
Source: UNDP, 2000
1987
25.4
2004
24.9
Austria
5.4
15.3
Belgium
6.8
11.5
Canada
18.5
17.8
France
6.3
11.3
Germany
6.9
12.2
Ireland
2.5
10.0
Italy
1.3
5.6
Netherlands
3.0
11.1
Spain
0.4
11.2
Sweden
4.9
13.3
Switzerland
16.6
25.3
United Kingdom
3.3
9.6
United States
6.7
15.1
Source: ILO International Labour Migration Database
The report observes that for Italy, Japan, the Republic of Korea and Europe, a level of
immigration much higher than experienced in the recent past would be needed to offset
population decline. Moreover, to offset declines in the working-age population
significantly, the numbers of migrants needed would be much larger than the actual
population decline. If retirement ages remain essentially where they are today, increasing
the size of the working-age population through international migration is the only option
in the short to medium term to reduce declines in the potential support ratio. The levels of
migration needed to offset population ageing (i.e., maintain potential support ratios) are
64
extremely large, and in all cases entail vastly more immigration than occurred in the
past".
There is also the problem of labour shortages in key areas like agricultural production,
science, information technology, craft, and technical skills as well as health, education
and personal services. The latter are the jobs that cannot be relocated to low wage
developing country regions unlike manufacturing or backroom office jobs. In addition,
these jobs are not attractive to locals because of the relatively low pay and onerous
working conditions. In this chapter we present an assessment of the countrys
attractiveness as a potential destination for export of manpower. Determination of an
attractiveness index is an attempt to scale the difference that exists between the countries
in terms of opportunities it offers for migrants from Bangladesh.
Globalization is a major driving force of international labour migration. Globalization has
made migration much easier through better communications, dissemination of
information through mass media and improved transport, among others. It is the
increasing trade and investment flows in the Asian region, which facilitated interest and
awareness in migration to such countries as Japan, the Republic of Korea and the Taiwan
province of China. Globalization forces have reinforced the movement of skilled workers
who move with FDI flows and multinational investments. Professional managers, highly
skilled persons and technicians are welcomed by many countries to attract foreign
investment.
The global movements of labour from the source countries to the supply constrained
countries are subject to different constraints which in turn impact the source countries
like Bangladeshs ability to exploit the market opportunity fully. Some of these
constraints are: the political willingness and easing of regulation to source labour from
other countries by the supply constrained countries, the proactive policies adopted by the
supplying countries, and more transparent, coordinated and organized value chain to
move labours globally by all the parties involved which include the employers, the
recruitment agencies, staffing companies and the regulators. The growing off shoring of
manufacturing and services will also pose limits to the global movement of labour.
Country Attractiveness Index
It is important to note that not all countries are equally affected by the above trends.
Therefore, some countries will be more attractive than others. We have assessed this
differential potential of different country markets by creating a Country Attractiveness
Index (CAI) for Bangladesh as shown in the Table 4.3. Figure 4.2 shows the position of
the top 50 most attractive countries in the world map. The CAI evaluates the position of a
country in the world map on the basis of, (a) development, (b) growth potential, (c) state
population and workforce; (d) national savings; and (e) ease of migration. The higher the
position of a country in the attractiveness list greater is its potential to attract Bangladeshi
migrants. It is expected to help the full service staffing firms from Bangladesh understand
and prioritize the destination countries.
65
Ranks
Country
Ranks
Luxembourg
France
37
Austria
38
Singapore
El Salvador
39
Qatar
Thailand
40
Japan
41
Ireland
Egypt
42
Saudi Arabia
Belgium
43
Malaysia
Iran
44
Hong Kong
Italy
45
Switzerland
10
Peru
46
Norway
11
Spain
47
Oman
12
Dominican Rep
48
Brunei Darussalam
13
Estonia
49
Kuwait
14
Tunisia
50
Canada
15
Germany
51
Taiwan
16
Paraguay
52
Guatemala
17
Albania
53
Australia
18
Uzbekistan
54
Korea, South
19
Turkey
55
New Zealand
20
Greece
56
Kazakhstan
21
Morocco
57
Denmark
22
Ecuador
58
Finland
23
Latvia
59
Cyprus
24
Russian Federation
60
Jordan
25
Portugal
61
Sweden
26
62
Chile
27
Slovenia
63
Bahrain
28
Hungary
64
Botswana
29
Brazil
65
Mauritius
30
Panama
66
Costa Rica
31
Puerto Rico
67
Israel
32
Colombia
68
United Kingdom
33
Lithuania
69
Netherlands
34
Kyrgyz Republic
70
Mexico
35
Czech Rep
71
36
Cuba
72
66
67
Population3
People residing in a particular area or region have important bearing on the prosperity of
the region. There is wide acceptance of the view that various links exist between
economic, environmental and population phenomena. Increased population pressure
gives rise to problems like, unemployment, uneducated, and undernourished mass of
deprived people. A good number of the people are forced to live in substandard housing
in slums, shanty-towns and squatter settlements. Population also has direct impact on the
environment and natural resources. As population grows it adds up to the number of
consumers. The increased population puts additional claims to natural resources and
produce pollution that it damages the environment. Conversely, deterioration of the
environment damages the economy. Thus countries with high population pressure as
indicated by population growth rate, labour growth rate and less equity as represented by
high GINI index, etc. would be less attractive for the migrants.
Development4
Economists have defined development as a process of maintaining suitable economic,
social and political environments, in which balanced growth may be realized, increasing
the wealth of the community. It typically deals with the job and income generated within
the country along with improvements in human development, education, health, choice,
and environmental sustainability. Thus major developed economies across the world
would be more attractive for the migrants.
Savings
Savings can be defined as the excess between resources available to economic agents and
the current consumption and when appropriately allocated have been beneficial to
economies5. Thus aggregate savings is an important factor for economic development.
The main determinant of savings in an economy is income along with several other
indicators like dependency ratio and macroeconomic fundamentals. But if savings is too
high it would lead to decrease in consumption there by decreasing the aggregate demand
in the economy leading to a fall in economic growth. Thus higher savings rate would be a
negative factor for attractiveness of a country.
Ease of Migration
Migration can also be attributed to the cultural linkages. Colonial past, similar language
and religion could be important factors affecting migration decision. As a surrogate of
measurement of ease of integration into the host society we have taken language as a
qualitative indicator. This is because similarity of language would help the migrants to
communicate freely into the host country. Thus, integration into the host society would
become much easier if the migrant can communicate well. Along with this, if the
migrants belong to same religion as practiced by the host country, it would expedite the
integration process. It is expected that the migrants would face lesser problems if they
move to a country where the majority of population belong to the same religion and
speak the same language as that of the migrants.
3 http://www.un.org/popin/icpd/recommendations/expert/4.html
4 http://government.cce.cornell.edu/doc/html/MethodologyGuide_TermsUsed.htm
5 http://www.econlib.org/library/Enc/Saving.html
68
The following moon chart shows the attractiveness of countries in terms of different
dimensions. A brief country profile for some of the important countries is given in the
Appendix 1.
Figure 4.3 Attractiveness of Countries on Different Dimensions
Name of Country
Growth
Population
Development
Savings
Ease of
Migration
Luxembourg
Singapore
Qatar
Ireland
Saudi Arabia
Malaysia
Hong Kong
Switzerland
Norway
Oman
69
Growth
Population
Development
Savings
Ease of
Migration
Brunei Darussalam
Kuwait
Canada
Taiwan
Guatemala
Australia
Korea, South
New Zealand
Kazakhstan
Denmark
Finland
Cyprus
Jordan
Sweden
70
Growth
Population
Development
Savings
Ease of
Migration
Chile
Bahrain
Botswana
Mauritius
Costa Rica
Israel
United Kingdom
Netherlands
Mexico
France
Austria
El Salvador
Thailand
71
Growth
Population
Development
Savings
Ease of
Migration
Japan
Egypt
Belgium
Iran
Italy
Peru
Spain
LEGEND:
High Attractiveness
Low Attractiveness
Other than generating a rank list we also grouped the countries based on their
attractiveness potential based on the above dimensions. First of we did cluster analysis on
the data for 157 countries. For this, we first carried out the Hierarchical clustering to
determine the number of clusters. The analysis of the agglomeration schedule (finding
out the difference in coefficients of the agglomeration schedule bottom-up and selecting
the highest difference in coefficient) made us believe that there should be 5 clusters of
countries. After that, we proceeded to carry out a 5-means clustering. The analysis of the
results gave us the following 5 clusters:
Cluster 1 - Lower end developing nations of the World. Includes many South
American, African and Asian nations.
Cluster 2 - Extremely rich countries of the World - USA and Saudi Arabia
72
Cluster 3 - Developing countries to the core like India, China, Brazil, South
Africa, South-East Asian countries like Indonesia, Malaysia, Myanmar etc
Cluster 5 - Includes all the developed countries of the World. Most of these
nations are powerful forces - includes most of the European countries
Then, we decided to reduce the set of 157 countries to just 90 countries by eliminating
the under-developed and the developing nations at the bottom. We did this by eliminating
clusters 1, 4 and 5 and just selecting the countries from clusters 2, 3 and 5. Next, we
repeated the clustering process for these 90 countries. The Hierarchical clustering process
gave us an indication that there should be 6 clusters in this reduced data. Hence, we
proceeded to carry out 6-means clustering analysis. The analysis of the results gave us the
following 6 clusters:
Cluster 2 - Developed Nations of the World - almost all of these are OECD
countries
Cluster 4 - Paradise for migration. For e.g. Saudi, Kuwait, Singapore & UAE.
Cluster 6 - The best developing or emerging economies of the world. These may
be the possible future powerhouses of the World, e.g. China, India and S.E. Asian
nations.
The list of countries included in each of the clusters is given in the following Table. We
observe that countries belonging to cluster 4 are the most attractive countries, closely
followed by countries belonging to Cluster 2. The countries belonging to the cluster 6
will be attractive destinations for migrant workers from Bangladesh in the distant future.
73
Countries in
Cluster 2
Australia
Countries in
Cluster 3
Puerto Rico
Countries in
Cluster 4
Bahrain
Countries in
Cluster 5
Algeria
Countries in
Cluster 6
Albania
Bulgaria
Austria
Qatar
Cyprus
Botswana
Armenia
Croatia
Belgium
Serbia and
Montenegro
Hong Kong
Brazil
Azerbaijan
Cuba
Canada
Taiwan
Ireland
Chile
Belarus
Czech Rep
Denmark
Kuwait
Costa Rica
China
Estonia
Finland
Mauritius
Dominican Rep
Georgia
Greece
France
Saudi Arabia
Ecuador
India
Hungary
Germany
Singapore
Egypt
Iran
Korea, North
Israel
United Arab
Emirates
Indonesia
Kazakhstan
Latvia
Italy
Jamaica
Korea, South
Lithuania
Japan
Jordan
Moldova, Rep
Macedonia,
FYR
Luxembourg
Mexico
Malaysia
Poland
Netherlands
Mongolia
Myanmar
Romania
New Zealand
Morocco
Russian
Federation
Slovakia
Norway
Panama
Ukraine
Slovenia
Portugal
Peru
Vietnam
Sri Lanka
Spain
Philippines
Thailand
Sweden
South Africa
Trinidad and
Tobago
Switzerland
United
Kingdom
United States of
America
We have also plotted a set of relatively important countries on several three dimensional
bubble charts CAI score in one axis, one of the several dimensions of the attractiveness
index on the other axis and size of the bubble indicating the annual remittances outflow
in 2005 and projected to be in 2015. While the country attractiveness index provides a
consolidated view, these bubble charts are meant to highlight relative and differential
attractiveness of countries on various dimensions and provide a more fine grained
understanding of the potential target countries for Bangladeshi migrant workers.
74
Saudi Arabia
Botswana
0.70
Syria
Jordan
0.50
UK
Spain
Austria
Malaysia
Sweden
Israel
Belgium
France
Netherlands
Japan
Luxembourg
Norway
Denmark
Australia Switzerland
Canada
Kazakhstan
USA
Singapore
Singapore
Ireland
Bahrain
S Korea
Peru
0.30
Hong Kong
Finland
Estonia
El Salvador
Cyprus
Panama
Kuwait
Mauritius
Tunisia
New Zealand
0.10
-5.00
15.00
Kuwait
35.00
55.00
75.00
95.00
CAI Score
0.70
New Zealand
Peru
AVG DEPENDENCY RATIO
Saudi Arabia
Botswana
Syria
Jordan
Israel
Belgium
0.50
Austria
Luxembourg
Norway
USA
Australia
UK
Spain
Malaysia
Sweden
Denmark
France
Switzerland
Canada
Netherlands
Kazakhastan
Japan
Singapore
Bahrain
Ireland
S Korea
Hong Kong
0.30
Estonia
Finland
Mauritius
Panama
Kuwait
Cyprus
0.10
-5.00
15.00
35.00
CAI SCORE
55.00
75.00
95.00
The Figure 4.4 and 4.5 depict the relative position of the countries when plotted against
the country attractiveness index and dependency ratio. Dependency ratio6 is the ratio of
the economically dependent portion of the population to the productive portion. The
higher the ratio, the greater is the strain on the productive wage earning population to
support the economically dependent members of society. As indicated by the bubble
charts above, European countries, countries in the Middle East and South East Asia
6 Dependency ratio = ((# of under 15) + (# of 65 and over)) / (# of 15 to 64)) x 100
75
exhibit a higher dependency ratio. Population growth trend indicates an imbalance with a
decreasing growth rate in the more developed, industrialized countries and an increasing
growth rate in developing and underdeveloped countries. This shows that the existing
population in some of the developed countries will not be able to service the economies
on its own and will have to depend on manpower from other countries.
As shown in the bubble charts below, plotted with CAI score and unemployment rate,
countries in the Middle East, Gulf exhibit larger unemployment rates compared to
countries in South Asia, Europe and America. Unemployment rate measures the
condition and extent of joblessness in the economy. It is calculated as the number of
unemployed workers to the total civilian labour force. The greater the unemployment
rate, lower is the demand for external labour, thereby indicating a lower remittance
outflow. Countries like Japan, Netherlands, Denmark, Switzerland, New Zealand, USA,
Singapore are more attractive as potential destination countries for Bangladeshi workers.
AVG UNEMPLOYMENT RATE & REMITTANCE 2005
Tunisia
Bahrain
Oman
Dom Republic
Jordan
14.00 Spain
Panama
Estonia
Syria
Mauritius
France
9.00
Finland
Israel
Egypt
Peru
Canada
Belgium
Australia
Sweden
El Salvador
USA
New Zealand
Switzerland
Costa Rica
UK
Japan
4.00
Austria
Cyprus
Saudi Arabia
S Korea
Denmark
Ireland
Singapore
Malaysia
Netherlands
Kazakastan
Norway
Luxembourg
Switzerland
Thailand
Guatemal
Kuwait
-4.00
-1.00
16.00
36.00
56.00
76.00
CAI SCORE
76
Tunisia
Oman
Bahrain
Dom Republic
14.00
Jordan
Spain
Panama
Estonia
Syria
France
Finlan
Israel
9.00
Peru
Belgium
Canada
Sweden Australia
New Zealand
UK
Japan
4.00
USA
Hong Kong
S Korea
Saudi Arabia
Cyprus Denmar
Kazakstan
Netherlands
Austria
Ireland
Singapore
Norway
Malaysia
Luxembourg
Switzerland
Guatemal
Kuwai
-4.00
-1.00
16.00
36.00
56.00
76.00
CAI SCORE
The Figure 4.8 and 4.9 depict the relative position of the countries when plotted against
the CAI Score and crude birth rate. Crude birth rate of a population is the number of
childbirths per thousand persons, per year. The higher the birth rate, the greater the net
addition to the population, the younger the population and therefore lower the demand for
temporary migrant population. A lower birth rate over a period of time results in a
shrinking number of new entrants into the internal labour market which when combined
with low fertility and increasing longevity of the population leads to an aging population
and raises supply side concerns that can be addressed through migration. Hence, most
countries in Europe, Japan, New Zealand, Singapore, the USA, etc. are likely to exhibit
strong demand for migrant labours in the coming years.
30.00
Syria
Botswana
25.00
Saudi Arabia
Jordan
Egypt
Oman
Dom Republic
20.00
El Salvador
Peru
Panama
Malaysia
Israel
Kuwait
Costa Rica
Tunisia
USA
Kazakastan
Bahrain
15.00
Ireland
S Korea
New Zealand
France
10.00
Spain
Australia
Denmark
UK
Belgium
Austria
Japan
Netherlands
Finland
Sweden
Luxembourg
Norway
Switzerland
Singapore
Hong Kong
Cyprus
5.00
-5.00
5.00
15.00
25.00
35.00
45.00
CAI SCORE
55.00
65.00
75.00
85.00
95.00
77
Syria
25.00
Saudi Arabia
Botswana
Jordan
Oman
Dom Republic
El Salvador
Peru
20.00
Panam
Malaysia
Israel
Kuwait
Kazakastan
USA
Bahrain
15.00
Ireland
S Korea
New Zealand
Cyprus Australia
France
Spai
10.00 Estonia
UK
Belgium
Austria
Sweden
Luxembourg
Denmark
Finland Canada
Norway
Netherlands
Switzerland
Japan
Singapore
Hong Hong
5.00
-5.00
15.00
35.00
CAI SCORE
55.00
75.00
95.00
The Figure 4.10 depicts the relative position of the countries as on 2015 when plotted
against the country attractiveness index and population density. Population density is the
concentration (or dispersal) of people in an area and is measured as the number of
residents per unit of land surface.
Netherlands
Belgium
350.00
Israel
Japan
UK
250.00
Luxembourg
Switzerland
Dom Republic
Kuwait
150.00
France
Syria
Spain
Austria
Tunisia
Panama
Estoni
Peru
a
Guatemala
Denmark
Cyprus
Costa Rica
Malaysia
Jordan
Ireland
50.00
-5.00
Swede Finland
New Zealand
Botswana
Canada
Kazakistan 35.00
Australia
15.00
Norway
USA
Saudi Arabia
Oman
55.00
75.00
95.00
-50.00
CAI SCORE
78
As a rule countries such as Bangladesh which are densely populated are labour exporting
countries. Population density is directly related to the population growth of a country
with the more attractive countries being those that have a low birth rate and larger land
area. Hence, countries like the USA, Saudi, New Zealand, Canada, Malaysia, Australia countries with lower population growth and large land mass are attractive for export of
manpower from Bangladesh.
The Figure 4.11 depicts the relative position of the countries when plotted against the
CAI Score and GINI. GINI is the GINI coefficient (used as an income inequality metric)
expressed as a per cent age which is measured by multiplying the GINI coefficient with
100. The value ranges between 0 and 100 where Zero corresponds to perfect income
equality and 100 corresponds to perfect income inequality. Countries closer to the base
are said to have greater equalities of income than countries towards the top. Income
inequality is one of the factors that initiate temporary migration. The developed countries
have a greater equality in distribution of income and attract migrants. Thus European
countries, the US, and the South East Asian countries are the more attractive countries for
temporary migration as compared to those countries where there is greater inequity in
distribution of wages and inefficient utilization of labour resources.
90.00
80.00
Cyprus
Kuwait
Oman
Bahrain
S Korea
Syria
70.00
Saudi Arabia
Botswana
GINI INDEX
60.00
Panama
50.00
Peru
El Salvador
USA
Malaysia
Dom Republic
40.00
France
Austri
a
Japan
Belgium
Singapore
Hong Kong
UK
Tunisia
Spain
30.00
Guatemala
New Zealand
Jordan
Australia Switzerland
Canada
Kazakistan
Netherlands
Finland
Norway
Sweden
Denmark
Ireland
Israel
Luxembourg
20.00
10.00
-5.00
5.00
15.00
25.00
35.00
45.00
55.00
65.00
75.00
85.00
95.00
CAI SCORE
Earlier, the average dependency ratio was plotted against the most attractive countries
resulting from the Country Attractiveness Ranking. While dependency ratio is one of the
most important quantitative parameters that assesses the potential of a county, it attains
greater significance when it is compared with a qualitative criteria such as Ease of
Migration. Religion and Language are the two most significant paradigms determining
the extent of socio cultural assimilation within the host country society. Countries which
79
have a higher qualitative score are more attractive destinations for Bangladeshi migrants
since the cultural similarity makes it easier for them to integrate into the host country
society. Given proper training which incorporates cultural differences, acceptable
behaviour and norms within societies of different destination countries, socio-cultural
amalgamation will be easier thereby enhancing the Ease of Migration.
2.05
Jordan
Kuwait
1.95
Australia
1.85
Hong Kong
New Zealand
Singapore
1.65
1.45
1.35
Bahrain
Q u a lita tiv e s c o re
1.55
Denmark
Tunisia
1.75
Malaysia
USA
Finland
Canada
Ireland
Estonia
S Korea
1.25
1.15
Russia
1.05
Israel
Botswana
Switzerland
Austria
Cyprus Norway
Belgium
Kazakhstan
France
Peru
Spai
Luxembourg
Syria
0.95
El Salvador
Brazil
0.85
Polan
0.75
0.20
Oman
Saudi
0.30
0.40
Italy
Portugal Japan
Sweden
Netherland Peru
Avg Dependency
Ratio
0.50
0.60
0.70
0.80
It is evident from the following table that the export of migrant workers from Bangladesh
has been limited to only a few countries among the most attractive destination countries.
In most countries Bangladesh does not export manpower at all. Even in the countries
where Bangladesh has been exporting manpower, it has a weak presence except a few
Middle Eastern countries. It is also evident from the following figure that among the top
remitting countries only in UK, the US and a few Middle Eastern countries such as Saudi
Arabia, Kuwait, Bahrain and Oman, Bangladesh has a reasonable share of the total
remittances out of these countries. A significant development to be noted here is that
Bangladesh has gained substantial grounds in terms of the share of remittances out of
Singapore in the recent years. This is primarily due to the effort of a few overseas staffing
companies which have taken a route of training and certification as per Singaporean
Authoritys requirement before exporting Bangladesh worker to Singapore.
80
Remittances
Outflow in
2005
Projected
remittances in
2015
(Conservative)
Projected
remittances in
2015
(Optimistic)
Flow of BNG
Migrants
in 2006
Remittances
to Bangladesh
in 2006
United States
41072
70049
98069
673.67
Saudi Arabia
14318
17595
24633
Switzerland
13200
14084
19717
Germany
12519
14798
20717
Spain
7733
12970
18157
Russian Federation
7651
13887
19441
Luxembourg
6599
6738
9434
Italy
5815
5897
8255
Netherlands
5686
8937
12512
Malaysia
4991
9624
13473
France
4867
9371
13119
Lebanon
4233
6650
9310
Korea, Rep.
3336
6630
9282
992
United Kingdom
3060
7612
10657
1597
404.05
Belgium
2756
3640
5096
China
2602
6169
8636
Austria
2543
5003
7004
Kuwait
2402
4832
6765
35483
445.27
Israel
2287
6038
8454
Oman
2257
3974
5564
8038
147.36
Czech Republic
2135
2641
3698
Kazakhstan
1672
3368
4716
Australia
1356
2308
3231
Japan
1281
3538
4953
Denmark
1226
2583
3617
Indonesia
1200
1819
2547
Portugal
1151
1882
2635
Bahrain
1120
2577
3608
New Zealand
1093
1512
2117
South Africa
1056
1755
2457
India
1008
2170
3037
Norway
953
1559
2183
Ireland
923
1324
1854
108671
1609.29
11.09
12
1426
25.23
20452
22.41
4.24
174
10.76
16301
70.19
50
Greece
809
1470
2058
Source:-Remittance figures World Bank; Bangladesh Data:-BMET; Remittances in million US$
81
Table 4.5: Top Remitting Countries and Flow of Bangladeshi Migrants Continued..
Country
Remittances
Outflow in
2005
Projected
remittances in
2015
(Conservative)
Projected
remittances in
2015
(Optimistic)
Libya
790
1222
1711
Cote d'Ivoire
634
703
984
Sweden
611
532
744
Poland
596
1128
1579
Brazil
498
1218
1705
Jamaica
394
855
1198
Jordan
349
753
1054
Hong Kong
335
697
975
Singapore
400
613
858
Cyprus
273
444
621
Peru
Flow of BNG
Migrants
in 2006
107
Remittances
to Bangladesh
in 2006
0.22
2798
6.73
20077
55.98
164
431
603
Source:-Remittance figures World Bank; Bangladesh Data:-BMET; Remittances in million US$
82
The figure below presents the top 30 attractive countries as per the projected remittance
potential in 2015 in the world map. Bangladesh has to ensure exporting workers to all
these countries and capture a reasonable share in many of these country markets to
achieve US$30 billion remittances by 2015.
83
Table 4.6: How do the countries stack up in terms of individual earning potential?
(US$ per annum)
Country
Annual
Average
Salary All Skills
Annual
Median
Salary All Skills
Annual
Average
Salary Professional
/High Skills
Annual
Median
Salary Professional
/High Skills
78,237
Annual
Average
Salary Semi /
Low
Skills
47,187
Annual
Median
Salary Semi /
Low
Skills
73,249
Switzerland
87,768
83,419
50,326
101,171
67,029
Austria
76,010
72,732
32,244
89,664
41,685
69,248
30,148
70,164
Luxembourg
69,282
63,294
44,548
101,971
72,110
63,294
41,744
39,288
Brunei
61,159
55,914
36,696
90,071
59,339
55,914
34,404
34,693
Sweden
59,301
57,389
26,104
68,738
32,607
53,118
24,432
58,026
Ireland
56,611
53,436
34,284
69,221
45,555
50,947
31,877
51,026
Netherlands
54,158
51,475
26,787
66,524
35,751
49,489
25,125
46,285
Spain
54,143
51,360
25,339
66,890
33,960
49,069
23,677
46,913
Belgium
52,481
49,953
25,621
64,255
34,128
47,457
23,910
46,250
New Zealand
50,733
46,383
17,645
74,717
28,533
46,383
16,543
28,777
Finland
46,071
43,788
25,846
54,725
33,515
41,828
24,220
41,747
UAE
45,514
41,589
22,757
66,993
36,836
41,589
21,325
25,802
Singapore
45,514
41,589
27,217
66,993
44,055
41,589
25,505
25,802
Australia
45,495
41,184
17,825
66,348
28,546
41,184
16,850
25,559
Japan
45,241
41,465
24,629
66,782
39,915
41,465
23,240
25,504
Norway
44,583
42,695
30,156
52,569
38,207
40,446
28,446
40,878
France
41,218
38,747
17,608
52,355
24,468
36,924
16,429
33,173
UK
40,372
37,134
12,128
56,557
17,785
37,134
11,449
28,051
Cyprus
37,612
34,363
10,434
55,365
16,878
34,363
9,781
21,322
Kuwait
35,440
32,325
22,880
52,107
36,977
32,325
21,466
20,079
Israel
35,206
32,408
11,231
47,654
16,504
32,169
10,557
24,441
South Korea
33,570
30,698
13,153
49,441
21,267
30,698
12,332
19,047
Bahrain
32,824
29,989
10,530
48,309
17,035
29,989
9,871
18,581
Chile
32,376
29,606
14,336
47,682
23,181
29,606
13,441
18,370
Hong Kong
30,723
28,092
19,405
45,247
31,377
28,092
18,193
17,431
Qatar
29,326
26,916
14,663
43,357
23,540
26,916
13,801
16,704
Botswana
26,040
23,810
22,124
38,350
35,774
23,810
20,742
14,772
Taiwan
25,128
22,978
8,644
37,008
13,977
22,978
8,104
14,257
Mauritius
24,371
22,354
12,951
36,005
21,006
22,354
12,180
13,871
Thailand
24,067
21,908
14,590
35,285
23,483
21,908
13,732
13,593
21,199
19,389
9,476
28,969
Source: Authors estimates using multiple data sources
14,059
19,389
8,893
14,322
Denmark
Annual
Average
Salary Skilled
Annual
Median
Salary Skilled
84
Table 4.6: How do the countries stack up in terms of individual earning potential?
(US$ per annum)
Country
Annual
Average
Salary All Skills
Annual
Median
Salary All Skills
Annual
Average
Salary Professional
/High Skills
Annual
Median
Salary Professional
/High Skills
18,964
Annual
Average
Salary Semi /
Low
Skills
14,708
Annual
Median
Salary Semi /
Low
Skills
11,770
Malaysia
20,745
18,964
15,687
30,551
25,367
KSA
20,627
18,857
11,567
30,375
18,705
18,857
10,845
11,701
Tunisia
20,154
18,376
9,642
29,610
15,558
18,376
9,057
11,400
Oman
19,374
11,609
7,606
18,704
8,085
11,609
9,225
7,193
Panama
18,129
16,527
7,941
26,637
12,815
16,527
7,458
10,256
Guatemala
17,475
15,978
4,495
25,736
7,268
15,978
4,214
9,915
Peru
16,673
15,255
5,849
24,656
9,499
15,255
5,464
9,499
Mexico
16,289
14,860
6,395
23,935
10,318
14,860
6,007
9,221
El Salvador
15,097
13,774
4,418
22,185
7,127
13,774
4,150
8,546
Jordan
14,767
13,485
6,220
21,730
10,063
13,485
5,831
8,377
Syria
12,711
11,597
6,546
18,678
10,561
11,597
6,149
7,196
Egypt
12,221
11,149
3,872
17,958
6,247
11,149
3,637
6,916
Kazakhstan
11,587
10,564
5,249
15,476
7,690
10,130
4,787
9,331
Costa Rica
9,954
9,083
2,805
14,628
4,526
9,083
2,635
5,635
Dominican Rep
8,963
8,273
3,825
13,274
5,999
8,301
3,647
5,151
2,817
2,891
1,640
1,793
Iran
3,168
2,891
1,746
4,656
Source: Authors estimates using multiple data sources
Annual
Average
Salary Skilled
Annual
Median
Salary Skilled
The salary potential for high skilled, skilled and semi skilled categories is highest
primarily in the OECD countries. It is to be noted that Bangladesh has weak presence in
all these markets.
85
Table 4.7: How do the countries stack up in terms of individual remitting potential (US$ per annum)
42,001
Annual
Average
Remittance
Potential Semi / Low
Skills
42,249
Annual
Median
Remittance
Potential Semi / Low
Skills
42,001
70,797
29,764
28,586
29,764
65,567
64,376
25,262
25,236
25,262
98,899
54,043
56,859
20,816
20,800
20,816
25,262
74,074
30,258
55,308
25,543
24,198
25,543
56,611
32,361
75,222
41,920
52,394
30,901
29,693
30,901
Netherlands
54,158
25,460
72,283
32,903
50,568
22,892
22,466
22,892
Spain
54,143
24,036
72,564
31,304
50,351
21,955
21,359
21,955
Belgium
52,481
24,387
69,906
31,369
48,751
22,579
21,876
22,579
New Zealand
50,733
16,132
82,037
25,987
47,166
10,009
10,002
10,009
Finland
46,071
24,565
59,741
30,700
43,004
23,420
22,678
23,420
UAE
45,514
20,794
73,671
33,497
42,292
12,901
12,892
12,901
Singapore
45,514
24,870
73,671
40,062
42,292
15,430
15,419
15,430
Australia
45,495
16,136
72,858
25,995
42,664
10,014
10,006
10,014
Japan
45,241
22,574
73,319
36,356
42,335
13,884
13,481
13,884
Norway
44,583
28,879
56,486
35,558
41,901
27,650
26,849
27,650
France
41,218
16,553
57,276
22,366
38,253
14,172
14,061
14,172
UK
40,372
11,155
59,206
16,990
37,842
8,426
8,457
8,426
60,843
15,358
34,965
5,915
5,910
5,915
Annual
Average
Remittance
Potential Professionals /
High Skills
116,897
Annual
Average
Remittance
Potential
Skilled
Annual
Median
Remittance
Potential Skilled
58,011
82,016
98,268
38,035
40,698
112,146
61,159
33,548
Sweden
59,301
Ireland
Annual
Average
Remittance
Potential All Skills
Annual
Median
Remittance
Potential All Skills
Switzerland
87,768
47,832
Austria
76,010
30,853
Luxembourg
69,282
Brunei
Country
Cyprus
37,612
9,532
Source: Authors estimates using multiple data sources
IIIIIM
IM
MCCCaaallclccuuutttttataa
Annual Median
Remittance
Potential Professionals /
High Skills
86
Table 4.7: How do the countries stack up in terms of individual remitting potential (US$ per annum) continued
12,963
Annual
Average
Remittance
Potential Semi / Low
Skills
12,949
Annual
Median
Remittance
Potential Semi / Low
Skills
12,963
32,881
7,797
7,898
7,797
19,371
31,210
7,463
7,457
7,463
53,103
15,498
30,514
5,961
5,963
5,961
13,110
52,350
21,114
30,100
8,134
8,127
8,134
30,723
17,743
49,679
28,578
28,563
11,009
11,000
11,009
Qatar
29,326
13,458
47,079
21,679
27,370
8,352
8,344
8,352
Botswana
26,040
20,229
42,107
32,582
24,209
12,550
12,541
12,550
Taiwan
25,128
7,904
40,631
12,731
23,362
4,904
4,900
4,904
Mauritius
24,371
11,879
39,529
19,133
22,728
7,371
7,180
7,371
Thailand
24,067
13,280
38,738
21,389
22,467
8,240
8,233
8,240
Denmark
21,199
8,667
31,451
12,949
19,761
6,402
6,574
6,402
Malaysia
20,745
14,340
33,545
23,102
19,286
8,900
8,892
8,900
KSA
20,627
10,575
33,355
17,034
19,176
6,562
6,556
6,562
Tunisia
20,154
8,791
32,522
14,165
18,775
5,454
5,450
5,454
Oman
19,374
4,558
20,593
7,343
23,567
2,824
2,823
2,824
Panama
18,129
7,239
29,259
11,667
16,886
4,492
4,489
4,492
Guatemala
17,475
4,109
28,257
6,619
16,247
2,550
2,548
2,550
Peru
16,673
5,351
27,077
8,649
15,442
3,332
3,329
3,332
Mexico
16,289
5,834
26,280
9,397
15,174
3,620
3,617
3,620
El Salvador
15,097
4,030
24,358
6,491
14,064
2,501
2,499
2,501
Annual
Average
Remittance
Potential Professionals /
High Skills
57,275
Annual
Average
Remittance
Potential
Skilled
Annual
Median
Remittance
Potential Skilled
33,640
32,973
51,736
15,202
12,027
54,280
32,824
9,620
Chile
32,376
Hong Kong
Annual
Average
Remittance
Potential All Skills
Annual
Median
Remittance
Potential All Skills
Kuwait
35,440
20,869
Israel
35,206
10,338
South Korea
33,570
Bahrain
Country
IIIIIM
IM
MCCCaaallclccuuutttttataa
Annual Median
Remittance
Potential Professionals /
High Skills
87
Table 4.7: How do the countries stack up in terms of individual remitting potential (US$ per annum) continued
3,528
Annual
Average
Remittance
Potential Semi / Low
Skills
3,522
Annual
Median
Remittance
Potential Semi / Low
Skills
3,528
11,841
3,706
3,703
3,706
5,689
11,385
2,191
2,190
2,191
16,975
7,010
10,494
4,227
4,102
4,227
2,559
16,059
4,122
9,273
1,588
1,587
1,588
3,531
14,055
5,665
8,475
2,198
2,196
2,198
5,111
2,566
2,951
988
988
988
Annual
Average
Remittance
Potential Professionals /
High Skills
23,890
Annual
Average
Remittance
Potential
Skilled
Annual
Median
Remittance
Potential Skilled
9,153
13,728
20,507
9,619
3,532
19,718
11,587
4,785
Costa Rica
9,954
Dominican Rep
8,963
Annual
Average
Remittance
Potential All Skills
Annual
Median
Remittance
Potential All Skills
Jordan
14,767
5,680
Syria
12,711
5,972
Egypt
12,221
Kazakhstan
Country
Iran
3,168
1,593
Source: Authors estimates using multiple data sources
IIIIIM
IM
MCCCaaallclccuuutttttataa
Annual Median
Remittance
Potential Professionals /
High Skills
88
Key Markets
Labour
68173
Cleaning Labour
21920
Driver
21103
Cook
9324
Farmer
8300
House Boy
7880
Kuwait (7615)
Agriculture Labour
7474
Worker
6635
Singapore (1832); UAE (3311); Bahrain (1421); Malaysia (908); Oman (325)
Machine Operator
5482
Female Labour
4826
KSA (4679)
Mason
4593
Carpenter
4339
Construction Worker
4323
Operator
4003
Electrical Technician
3879
Tailor
3682
Servant
3299
Welder/Fabricator
2869
Painter
2742
Helper
2399
Salesman
1930
Steel Fixer
1696
Technician
1650
Plumber
1410
Gardener
1211
Waiter
1158
IIIIIM
IM
MCCCaaallclccuuutttttataa
89
Key Markets
Shepherd
1093
Barber
1044
Kitchen Worker
1035
UK (1016)
Private Service
1022
Mechanics
967
Fitter
761
UAE (493); Singapore (154)
Source: Bureau of Manpower, Employment and Training and authors estimate
From the available data we have constructed the above table which presents occupationwise migration of Bangladeshis to the major destinations during 2005, thus highlighting
the key occupations in demand from Bangladesh at present. It is quite clear from the
above Table and the following Figures 5.1a and 5.1b that workers with traditional and
often low end skills have been dominating the skill export from Bangladesh.
Skill Wise break up of Countries targeted by Bangladesh in 2005
100%
80%
60%
40%
20%
BAHRAIN
KSA
UK
OMAN
SINGAPORE
JORDAN
QATAR
Fitte r
M e ch a n ics
P riva te S e rvice
K itch e n W o rke r
B a rb e r
S h e p h e rd
W a ite r
Ga rd e n e r
P lu m b e r
Te ch n icia n
S te e l Fixe r
KUWAIT
S a le sm a n
P a in te r
UAE
H e lp e r
W e ld e r/Fa b rica to r
S e rva n t
0%
Others
IIIIIM
IM
MCCCaaallclccuuutttttataa
90
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
UAE
KUWAIT
BAHRAIN
KSA
UK
OMAN
SINGAPORE
MALAYSIA
JORDAN
QATAR
Ta ilo r
E le ctrica l
Te ch n icia n
O p e ra to r
C a rp e n te r
C o n stru ctio n
W o rke r
M a so n
Fe m a le L a b o u r
M a ch in e O p e ra to r
W o rke r
A g ricu ltu re
Labour
H o u se B o y
Fa rm e r
Cook
D rive r
C le a n in g L a b o u r
Labour
0%
Others
The salary and therefore the remittance potential for individual workers employed in the
low end jobs will be much lower than those of more skilled workers and professionals,
which is evident from the following Tables. The data recorded in the tables are the global
averages. It should be noted that the standard deviations in most occupational categories
have been very large. Therefore, for the migrant workers, the economic gains from labour
migration vary across skills and country destinations because foreign wages and
placement costs also vary accordingly. On the whole, wages increase with skill level,
with professionals receiving higher wages than domestic helpers; however, wages vary
significantly within each skill category according to country of destination.
Table 5.2: Annual Salary and Remittance Potentials for Occupations in Semi Skilled
and Unskilled Category
SKILLS
Sewer Hand
20,807
14,750
18,298
10,287
6,836
9,955
Laundry Operator
21,321
14,916
18,375
10,532
6,913
9,991
Dishwasher
21,277
14,998
18,449
10,536
6,861
10,055
Cleaner Housekeeping
21,557
15,136
18,627
10,661
7,014
10,142
Host/Hostess Restaurant
22,133
15,529
19,113
10,936
7,192
10,394
Porter
22,257
15,611
19,216
11,003
7,234
10,457
Cleaner Hospital
23,377
16,412
20,199
11,561
7,605
10,998
Bindery Worker
18,399
16,786
11,444
9,036
7,655
6,580
IIIIIM
IM
MCCCaaallclccuuutttttataa
91
Table 5.2: Annual Salary and Remittance Potentials for Occupations in Semi Skilled
and Unskilled Category continued
SKILLS
24,046
16,860
20,757
11,886
7,812
11,294
Production Helper
18,967
17,298
11,794
9,316
7,874
6,782
Packager Hand
24,665
17,320
21,313
12,201
8,026
11,608
Telephone Operator
19,428
17,728
12,085
9,542
8,082
6,948
Office Helper
25,286
17,760
21,857
12,508
8,231
11,904
Gate Guard
24,340
18,069
19,361
11,923
8,373
10,189
Reservation Clerk
19,880
18,139
12,364
9,764
8,248
7,110
Janitor
25,860
18,187
22,377
12,800
8,318
12,194
20,646
18,844
12,838
10,143
8,473
7,388
Security Guard
27,172
19,594
22,259
13,283
9,399
11,687
Deliverer
28,058
19,704
24,249
13,879
9,132
13,207
Gardener
22,069
20,134
13,725
Source: Authors estimates using multiple data sources
10,840
9,147
7,893
Table 5.3: Annual Salary and Remittance Potentials for Occupations in Skilled
Category
Annual Salary (US$)
SKILLS
Mean
Median
Std Dev
Median
Std Dev
Material Clerk
22,576
20,604
14,038
11,091
9,265
8,079
Cable Puller
22,762
20,792
14,154
11,186
9,203
8,154
22,913
20,946
14,253
11,264
9,147
8,217
Taxi Driver
30,123
21,098
25,981
14,884
9,777
14,132
Receptionist
23,611
21,514
14,681
11,592
9,840
8,431
Orderly
30,664
21,563
26,531
15,176
9,878
14,456
Lab Clerk
23,750
21,679
14,768
11,668
9,726
8,500
Miller
23,932
21,913
14,896
11,772
9,546
8,600
Repairer
22,309
22,052
12,610
10,953
9,607
7,480
Polisher
24,443
22,414
15,226
12,031
9,765
8,801
Glass Cutter
24,716
22,540
15,370
12,139
10,282
8,837
Die Cutter
24,635
22,541
15,326
12,114
9,819
8,843
24,826
22,797
15,478
12,224
9,932
8,952
25,453
23,212
15,843
12,494
10,618
9,090
Cashier
33,195
23,291
28,664
16,413
10,792
15,604
25,486
23,332
15,860
12,535
10,164
9,155
26,843
24,594
16,712
13,207
10,714
9,653
IIIIIM
IM
MCCCaaallclccuuutttttataa
92
Table 5.3: Annual Salary and Remittance Potentials for Occupations in Skilled
Category continued
Annual Salary (US$)
SKILLS
Mean
Median
Std Dev
Audio Video Repairer
27,447
25,101
17,074
Payroll Clerk
27,491
25,220
17,127
Plastics Fabricator
27,604
25,260
17,175
Camera Operator
27,944
25,456
17,383
Maintenance Mechanic
26,234
25,953
14,835
Construction Worker
28,581
26,207
17,802
Precision Grinder
28,629
26,245
17,830
Window Repairer
26,552
26,246
15,008
Computer Operator
28,994
26,529
18,041
Bus Driver
29,026
26,599
18,072
Chauffeur
38,157
26,723
32,910
Welder
29,609
27,143
18,439
Transmission Mechanic
29,867
27,348
18,589
Blacksmith
27,754
27,434
15,687
Painter
30,026
27,471
18,682
Camera Repairer
28,017
27,661
15,829
Secretary
31,479
28,683
19,579
Sheet Metal Worker
29,118
28,827
16,469
Administrative Assistant
30,743
28,904
22,377
Water Treatment Plant Operator
29,327
28,935
16,568
Bookkeeper
31,735
29,019
19,741
Biologist
29,214
29,908
15,868
Xray Technician
30,367
29,970
17,156
Locksmith
32,786
29,995
20,400
Paramedic
33,397
30,274
20,837
Meter Repairer
31,027
30,642
17,533
Truck Crane Operator
32,110
30,652
19,858
Electronics Technician
34,614
31,257
19,600
Laser Technician
31,825
31,528
18,012
Plumber
31,928
31,548
18,045
Botanist
30,835
31,584
16,752
Co-pilot Non Jet
31,934
32,264
16,906
Custom Tailor
35,476
32,389
22,061
Copy Writer
32,865
32,408
18,565
Heating & AC Repairer
34,063
33,339
19,100
Diesel Mechanic
34,203
33,688
19,324
Electric Meter Repairer
34,328
33,939
19,405
Surveyor
35,017
34,634
19,798
Source: Authors estimates using multiple data sources
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Table 5.4: Annual Salary and Remittance Potentials for Occupations in High Skilled
Category
Annual Salary (US$)
Mean
Median
Std Dev
Production Foreman
27,341
27,870
14,825
13,395
12,199
8,893
Food Technologist
28,113
28,733
15,255
13,787
12,577
9,176
Engineer
34,780
35,579
18,882
17,056
15,581
11,355
Librarian
36,092
35,659
20,396
17,715
15,534
12,093
Mechanic Foreman
35,328
36,012
19,156
17,307
15,763
11,490
Estimator
35,273
36,332
19,606
17,334
15,906
11,705
Lab Assistant
37,311
36,849
21,083
18,311
16,052
12,495
Graphic Designer
37,504
37,080
21,200
18,409
16,155
12,567
Drafter
38,236
37,761
21,608
18,765
16,450
12,806
Pipefitter
54,334
38,492
113,863
25,036
17,037
45,150
Cloth Finisher
39,310
38,760
22,204
19,280
16,885
13,137
Chemist
38,240
38,815
20,791
18,773
17,157
12,532
39,397
38,846
22,254
19,324
16,922
13,166
Line Repairer
38,287
39,121
20,774
18,775
17,124
12,495
Electronics Mechanic
40,223
39,700
22,723
19,736
17,295
13,459
Accountant
39,704
40,271
21,135
19,413
18,301
12,832
Foreman
41,416
40,836
23,394
20,313
17,789
13,840
Fleet Supervisor
41,762
41,205
23,592
20,489
17,950
13,969
Construction Foreman
41,685
42,472
22,604
20,418
18,590
13,550
Civil Engineer
41,540
42,547
22,576
20,389
18,626
13,605
Aircraft Mechanical
43,180
42,666
24,405
21,196
18,587
14,471
Architect
42,093
43,076
22,858
20,651
18,857
13,763
Actuary
42,954
43,210
22,598
21,060
19,893
13,813
Environmental Engineer
43,230
44,583
23,750
21,213
18,563
14,285
Biochemist
43,594
44,625
23,678
21,391
19,533
14,261
Assembly Supervisor
46,277
45,377
26,575
22,681
19,768
15,535
Line Supervisor
44,548
45,410
24,156
21,825
19,876
14,489
Computer Programmer
45,039
45,930
24,426
22,067
20,106
14,655
Mining Engineer
45,441
46,552
24,695
22,303
20,379
14,880
Chemical Engineer
46,136
47,094
24,211
22,589
21,292
14,756
Electrical Engineer
46,785
47,830
25,428
22,964
20,977
15,324
Auditor Internal
50,499
49,765
28,526
24,762
21,679
16,863
Plant Engineer
48,824
49,838
25,622
23,907
22,536
15,618
SKILLS
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Table 5.4: Annual Salary and Remittance Potentials for Occupations in High Skilled
Category continued
SKILLS
Machine Shop Foreman
Industrial Engineer
52,855
54,069
28,697
25,930
23,666
17,276
Administrative Service
58,308
59,274
31,635
28,535
25,945
18,900
Aeronautical Engineer
64,692
61,872
48,218
32,052
28,030
28,876
Veterinarian
61,850
63,599
34,284
30,362
27,838
20,508
Pharmacist
64,364
65,543
33,761
31,484
29,633
20,517
Economist
66,988
68,559
36,380
32,869
30,010
21,910
Construction Engineering
Supervisor
77,141
78,595
Source: Authors estimates using multiple data sources
41,830
37,786
34,401
25,076
50,000
48,000
46,000
44,000
42,000
40,000
38,000
36,000
34,000
32,000
30,000
28,000
26,000
24,000
22,000
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Welder Median
Remittance
The high value of standard deviation in all skill categories also indicate that wide
variation exist in salary and potential remittance income across countries. Export of
migrant workers with similar skills to some countries is likely to generate more
remittances potential than others. The above Tables indicate such high margin
countries for various occupations. Some Bangladeshi overseas companies who may have
limitation in scaling up the operation will be better of in concentrating in such high
margin countries which may not have large demand but can provide better profitability.
Welder
Taxi Driver
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50,000
48,000
46,000
44,000
42,000
40,000
38,000
36,000
34,000
32,000
30,000
28,000
26,000
24,000
22,000
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Carpenter Median
Remittance
Carpenter
Figure 5.3 - Difference in Remittance Potential Die Casting Machine Operator and
Carpenter
Remittance Potential-Construction Worker & Cleaner Housekeeping
Construction Worker
Median
50,000
48,000
46,000
44,000
42,000
40,000
38,000
36,000
34,000
32,000
30,000
28,000
26,000
24,000
22,000
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Construction Worker
Cleaner Housekeeping
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50,000
48,000
46,000
44,000
42,000
40,000
38,000
36,000
34,000
32,000
30,000
28,000
26,000
24,000
22,000
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
Plumber Median
Remittance
Bus driver
Plumber
If we compare the above estimates from multiple global sources with the data obtained
from Bangladesh as reported in Chapter 3 (Tables 3.14 3.16), it is apparent that in most
countries Bangladeshi workers are earning much less than the average market based
estimates. Low bargaining power of Bangladeshi overseas manpower agencies vis--vis
their clients is definitely coming in their way to negotiate reasonable salaries for the
Bangladeshi workers. If the income of the staffing companies is tied to the salary of the
workers, as is done by most recruiting firms in the world, there will be an incentive for
them to negotiate better salaries for the prospective migrant workers from Bangladesh.
Better information about the labour market in the host countries and direct contact with
the prospective employers may yield positive results. The industry body should take the
primary responsibility to create and maintain labour market information about various
host countries.
The tables below indicate the skills in demand for all categories - professional, high
skilled, skilled, semi-skilled and un-skilled - in the major countries of different
continents. There are significant demand-supply gaps in most country markets. The listed
skills are indicative only. It is to be noted that even in the so called unskilled categories a
minimum acceptable proficiency is needed, the standards for which vary across countries
and continents. There is a common trend across countries that the minimum acceptable
standards are rising across the globe. Therefore, Bangladesh needs to provide basic
training and grooming for even the so called un-skilled categories in the foreseeable
future. Given that the competition in this category is going to severe with many LDCs
from African and Asian Continent joining the fray, Bangladesh needs to differentiate its
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un-skilled manpower in some way, otherwise severe competition will push down the
salary, living standard and the potential remittances for Bangladeshi migrant workers.
Table 5.5: Occupation in Demand Select Asia-Pacific Countries
COUNTRY
Professional / High
Skilled
Hong Kong
Engineers
IT Staff (primarily
programmers/
developers)
Skilled
Technicians
(primarily
production/operations,
Buying/ Procurement
Staff
Management/
Executives
Semi-skilled
Construction
tradesperson
Cook
Tailors
Unskilled
Domestic
workers
Waiters/
Waitresses
Cleaners
Designers
Accountants
Quality Controllers
Project Managers
South Korea
IT professionals
Entertainers
Engineers
Technicians
Personal Care
Language Teachers
Sales
Accountant
Nurses
Researchers
Language Teachers
Japan
ICT professionals
Taiwan
Managers/Executives
Technicians
Clerks
Agricultural
labours
Sales
Machine Operators
Singapore
Doctors
Sales
Plumbers
Engineers
Drivers
Construction
tradesperson
Scientist
Nurse
Welder
Domestic
workers
Waiters
Project managers
Technical Sales
Mauritius
IT professionals
Drivers
Waiters
Thailand
IT professionals
Drivers
Welder
Domestic
workers
Language Teachers
Sales
Cook
Personal care
workers
Pilots
Technicians
Fitter
Printing press workers
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Professional / High
Skilled
Skilled
Semi-skilled
Malaysia
IT professionals
Supervisors
Customer service
Managers
Technicians
Clerks
Quality Controllers
Sales
Construction
Tradesperson
Unskilled
Domestic
Workers
Agricultural
labours
Machine Operators
Trade/craft workers
Assemblers
Brunei
Doctor
Technicians
Welder
Waiters
IT workers
Drivers
Carpenter
Cleaners
Managers
Sales
Fitter
Childcare
workers
Nurses
Mechanic
Domestic
workers
Machine Operators
Skilled
Technician
Semi-skilled
Welder
Unskilled
Labours / workers
Engineers
Sales
Carpenter
Waiters/ Waitresses
IT specialists
Social Worker
Cook
Maids/Cleaners/ childcare
workers
Teachers/ University
Lecturers
Nurses
Plumber
Helpers
Finance Professionals
Supervisors
Mechanic
Construction workers
Scientists
Chef
Fitter
Managers
Clerk
Veterinarian
Machine
Operators
Fitter
Project Directors
Electricians
Medical
Assistants/
Orderlies
Barber
Tailors
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Professional / High
Skilled
ICT professionals
Skilled
Semi-skilled
Unskilled
Electrical Technicians
Machine operators
Housekeepers
Nurses
Printers
Customer Service/Sales
Clerks
Trade/craft workers
Construction trades
Austria
Technical Sales
Drivers
Cooks
Waiters/Waitresses/
Bartender
Stonemason/Bricklayer
Construction Labours
Clerks
Cleaners
Sales
Belgium
Engineers
Drivers
Managers
Nurses
Construction
tradesperson
ICT professionals
Cyprus
ICT professionals
Machine operators
Waiters/waitresses/
Barmen
Agricultural labours
Metal workers
Denmark
Doctors
Social work
Machine operators
Agricultural labours
Teachers
Nurses
Plumbers
Waiters / waitresses /
Bartenders
Biologist/Botanist
Mining technicians
Glaziers
Cleaners
Accountants /
Finance Professionals
Secretaries
Electricians
Drivers
Bookkeepers
Chef
Painters
Butcher
Cook
Carpenters
Construction
tradesperson
Sales
Estonia
Engineers
Machine Operators
Construction labours
Carpenters
Floor/Tile setters
Plasterer
Insulation workers
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Professional / High
Skilled
Pilots
Skilled
Semi-skilled
Unskilled
Social work
Plumbers
Construction workers
Architects
Drivers
Cleaners
Engineers
Secretaries
Welders
Helpers
Doctors
Accounting/
Finance clerks
Electrician
Housekeepers
Dentists
Medical assistants
Bricklayers/ Stonemason
Waiters/waitresses/
Bartenders
Veterinarians
Chefs
Electronic equipment
operator
Hand/pedal drivers
Accountants /
Finance Professionals
Nurses
Embroiderers/Tailors
Agricultural labours
Economists
Travel
attendants/stewards
ICT professionals
Cooks
Manufacturing
labours
Teachers
Machine operators
Managers
Construction
tradesperson
Tech Sales
Sales
Assemblers
Electrical mechanic
Finland
Dentists
Barbers/Hairdressers
Housekeepers
Nurses
Cooks
Accountants /
Finance Professionals
Protective service
workers
Sales professionals
France
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Engineers
Accounting Finance
clerks
Butchers
Managers
Electrical technicians
Bakers
Housekeepers
Technical Sales
Engineering
Technicians
Construction
Tradespersons
Insurance reps
Tellers/Counter clerks
Nurses
Sales
101
Professional / High
Skilled
Tech Sales
Skilled
Semi-skilled
Unskilled
Drivers
Sales
Helpers
Secretaries
Carpenters
Agricultural labours
Accounting/Finance
clerks
Clerks
Cleaners
Machine operators
Waiters/waitresses/
Bartenders
Protective service
workers
Norway
ICT professionals
Drivers
Insulation workers
Helpers
Barbers/Hairdressers
Hand Launderers
Bricklayers/Stonemasons
Waiters/waitresses/
Bartenders
Plumbers
Sales
Spain
Doctors
Steno/Typist
Welders
Housekeepers
Tech Sales
Cooks
Waiters/waitresses/
Bartenders
Teachers
Electrician
Agricultural labours
Bricklayers/Stonemason
Construction labours
Carpenters
Handlers/Helpers
Sales
Cleaners
Cashiers/ticket clerks
machine operators
Gardeners
Sweden
Life Science/Health
professionals
Drivers
Plumbers
Doctors
Nurses
Metal workers
Dentists
Welders
Pharmacist
Barbers/Hairdressers
Teachers
Construction
tradesperson
Architects
Bricklayers/Stonemason
Engineers
Sales
Managers
Assemblers
ICT professionals
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Professional / High
Skilled
Switzerland
Managers
Plumbers
ICT professionals
Painters
Electrical mechanics
Cooks
UK
Teachers
Doctors
Engineers
Managers
ICT Professionals
Skilled
Social workers
Drivers
Supervisors
Tech Sales
Nurses
Semi-skilled
Bricklayers/Stonemason
Carpenters
Clerks
Sales
Assemblers
Data Entry operators
Unskilled
Manufacturing
Labours
Housekeepers
Cleaners
Waiters/waitresses/
Bartenders
Canada
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Professional / High
Skilled l
Nurses
Skilled
Semi-skilled
Retail Sales
Unskilled
Cleaners
Waiters/waitresses/Bar
men
Housekeepers
Teachers
Managers
Accountants/Finance
Professionals
ICT Professionals
Tech Sales
Dentists
Engineers
Medical assistants
Teachers
Customer Service
Cook
Drivers
Technicians
Clerks
Carpenters
Engineers
Construction project
managers
Veterinarian
Doctor
Pharmacist
Technicians
Mechanics
Construction workers
Social Worker
Lab technicians
Driver
Nurses
Machinist
Welder
Tool & Die Maker
Carpenter
Fitter
Fabricator
Metal workers
Agricultural worker
103
Professional / High
Skilled
Skilled
Semi-skilled
Unskilled
Australia
Manager
Secretaries
Barbers/Hairdressers
Gardener
Librarian
Baker
Architect
Social Worker
Blacksmith
ICT professionals
Electrician
Dentist
Sports Coach
Butcher
Engineers
Nurses
Doctors
Chef
Cook
Accountants/Finance
Professionals
Fitter
Acupuncturist
Bricklayer/Stonemaso
n
Scientist/Physicist
Tailor
Designers
Mechanic
Teacher
Painter
Sales
Welder
Mariners
Machine operator
Pilot/Instructor
Polisher
Counsellors
Veterinarian/Zoologi
st
Urban Planner
Journalists/Media
Professionals
New
Zealand
Manager
Electrician
Doctors
Nurses
Plumber
Engineers
Chef
Mechanic
Veterinarian
Baker
Pharmacist
Bricklayer
University Lecturer
Butcher
ICT professionals
Teachers
Accountants/Finance
Professionals
Architect
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It is important to note that there has been a widespread increase in the educational levels
of employed people across the EU and other developed markets. The shift in demand
towards workers with higher educational levels comes from the following three main
sources:
Sectoral shifts towards activities demanding higher skill levels and more years of
education, in particular towards high-skill market services (mainly business
activities), health care and education, activities in which there are proportionately
more jobs for managers, professionals and technicians than elsewhere in the
economy. Conversely, employment has tended to decline, especially in relative
terms, in agriculture and industry and within the latter, in low-skill sectors, in
particular, reflecting both a shift in demand away from these activities and higher
productivity growth;
Occupational shifts within sectors towards managerial and other jobs requiring
relatively high levels of education, partly reflecting a trend towards automation
and tasks requiring intellectual abilities rather than physical effort or manual
dexterity;
The first and last tendencies are common to the new Member States as well as the EU-15
countries, the second tendency less so. In all EU-15 countries, therefore, apart from the
UK and Ireland, where the shifts have had a neutral effect, the shifts in the sectoral
structure of employment have of themselves in recent years given rise to an increase in
jobs for managers, professionals and technicians relative to occupations generally
requiring a lower level of education. This is also the case in all the new Member States
except Latvia and Lithuania. It has been accompanied by a parallel shift towards higher
skill occupations within sectors, the only exception in the EU-15 being Italy, though this
is also the case in four of the 10 new Member States - Estonia, Latvia, Malta and Poland.
At the same time, there is evidence of a shift within sectors to low-skill manual jobs in 6
of the EU-15 Member States, including France and Italy, and in four of the new Member
States (Estonia, Slovenia, Cyprus and Malta). The proportions of sales and service jobs
have also increased in a number of the EU-15 countries as well as in half the new
Member States. By contrast, there has been an almost universal decline in the EU-15 in
both jobs for office staff (e.g., for clerks and secretaries) and those for skilled manual
workers and a slightly less widespread reduction in the new Member States.
The shift in the occupational structure of demand in itself has increased the education
level of those in employment in nearly all countries (the exceptions being Italy, where the
shift has had a neutral effect, Latvia and Lithuania), pushing up the share of workers with
tertiary level qualifications This tendency has been combined with an increase in the
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employment with such qualifications within occupational groups, large enough more than
to offset the adverse shift effect in Latvia and Lithuania.
The widespread occupational shift towards the employment of university graduates was
accompanied by an equally widespread shift though more in the EU-15 than the new
Member States away from jobs requiring (in the sense of being disproportionately filled
by those with) upper secondary level qualifications (the exceptions being Greece and
Portugal, the Czech Republic and three Baltic States). In the EU-15, however, this shift
has in most countries been more than outweighed by a relative increase in the
employment of those with upper secondary qualifications within occupations. In the new
Member States, in sharp contrast, the share of workers with this level of qualification has
declined. Occupational shifts have also had the effect in most Member States of reducing
the employment of workers with no qualifications beyond basic schooling, in the new
entrants as well as in the EU-15 countries.
Trends in the age composition of those employed
These trends in the structure of employed have occurred at the same time as the available
work force has aged and increasing numbers of women have entered the labour market ,
partly offsetting the ageing effect. In practice, as is well known, the proportion of women
in work still varies markedly across countries, though there are signs of gradual
convergence. The contribution of those aged 50 and over to total employment also varies
considerably from over 30 per cent in Sweden to only around 18 per cent in Malta and
Austria, though it is similar in most of the new Member States to that in the EU-15
countries. There is an equally large variation in the contribution of those under 25, the
number of whom in work make up a larger share of employment in the EU-15 countries
than in the new Member States and, within the EU-15, over 16 per cent of the total
employed in the Netherlands as against only around 7 per cent in Italy and 6 per cent in
Luxembourg.
Since, for the most part, the age structure of the working-age population is similar across
the enlarged EU (though in both Ireland and Malta, there are significantly more young
people and less in older age groups than elsewhere in the EU), these differences reflect
variations in both the extent of participation of those concerned in the labour market and
their success in finding work. Among those under 25, however, they also reflect the
differential extent to which education and initial training is combined with work
experience or the pursuit of a part-time job, as well as the extent to which they are
engaged in education and training as such. At present a disproportionate number of those
of 50 and over across the EU are employed in either low-skill services which also
employ a large proportion of those under 25 who are in work, especially in the EU-15
(some 45 per cent of the total on average) or agriculture, which is on the decline.
Trends in employment rates by education level
The difficulty of increasing the proportion of people with low education in work is
highlighted by the extent to which employment rates of those with only basic schooling
fall below those with higher levels of education across the EU. While employment rates
of those aged 25-64 with tertiary education are very similar in all EU-25 Member States
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(ranging from a low of 81 per cent to a high of 89 per cent) and rates for those with upper
secondary education vary only slightly more (between 69 per cent and 81 per cent,
Poland apart where the figure is only 61 per cent), the proportion of those with only
basic schooling who are in work differs markedly (from a high of 72 per cent , still much
lower than for those with tertiary education, to a low of 27 per cent). The proportion is
particularly low in the new Member States, where it averages fewer than 40 per cent.
Here the rate is almost as low for men as for women, whereas in the EU-15 countries, it is
for women that the rate is particularly low (just over 40 per cent - still more than in the
new Member States - but almost 30 percentage points less than the rate for men).
Nevertheless, despite the fall in recent years in the share of employment accounted for by
those with only basic schooling, as indicated above, the employment rate for this group
has in fact tended to increase in the majority of EU-15 countries since 2001, especially in
relation to the rates for those with higher education levels, which have in most cases
declined. This in part reflects the rise in the employment rate of those aged 50 and over.
The same, however, is not the case in the new Member States, where employment among
those with this education level has, in most cases, declined.
The explanation for the rise in the EU-15 countries lies in the scale of relative changes on
the demand and supply side of the labour market. While the demand for those with only
basic schooling may have declined, in some cases significantly, the number of people of
working age with this level of education has fallen by even more thanks in part to the
priority accorded by policy-makers to reducing those leaving the education system
without at least upper secondary qualifications. This has clear implications for possible
developments in the coming years given the continuation of current trends. It also
suggests that in the EU-15 countries over the most recent period at least, any tendency for
employers to recruit people with higher education levels than jobs strictly require has
been more than offset by a reduction in the availability of those with low education
levels.
There is an equal need to reconsider policy on immigration, to encompass the possibility
that labour shortages in future years will not be confined to high skill activities but might
extend to the lower end of the job market as well. It is perhaps not without relevance in
this regard that most of the migrants working in the EU at present, including those that
have arrived illegally, are employed in low skill rather than high skill jobs, which
indicates that there is a demand for their services, even if it is one which is often based on
their acceptance of low wages and poor working conditions.
Besides EU countries, these types of occupational shifts are evident across the other
OECD countries and even some of the emerging economies, though they vary in relative
importance between countries. The OECD countries, particularly the EU countries and
the USA and Canada have been mulling over a need to reconsider the policy on
immigration; taking note of the possibility that labour shortage in future years may not be
confined to high skill activities but might extend to the lower end of the job market as
well. It is to be noted that most of the migrants working in the EU at present, including
those that have arrived illegally, are employed in low skill rather than high skill jobs,
which indicates that there is a demand for their services, even if they are often based on
IIIIIM
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107
210
200
M
Labor Needed
i
190
Labor Available
l
180
l
i
170
o
160
n
s
150
140
130
2002 2006 2010 2014 2018 2022 2026 2030
Figure 5.5 Demand for Labour in the US
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108
DRYWALL INSTALLER
37%
69%
RESTAURANT COOK
29%
58%
20%
60%
ELECTRONICS ASSEMBLER
37%
76%
MAID/HOUSEMAN
34%
91%
FARM WORKER
58%
49%
JANITOR
CONSTRUCTION LABORER
1980
66%
GARDENER
2005
48%
9%
26%
64%
20%
Employment services
1,342
770
759
Full-service restaurants
641
635
Hospitals, private
632
518
433
406
Figure 5.7: The 10 industries with the largest employment Opportunities (20052014)
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109
It is also observed during the past one decade the demand for foreign workers in the US
have not been linked to the business cycle (employers continued to hire foreign workers,
even during recessions). In many areas native-born substitutes are often not available,
because young, native-born workers shun immigrant jobs, and low U.S. fertility rate
has reduced supply of new entrants to labour force. It is important to note that though
some employers (mainly agricultural) could reduce foreign-labour requirements through
mechanization, but service and construction firms usually cannot.
Figure 5.6 presents the top 10 industries with highest employment opportunities in the
US. The projected demand in 2014 in the US for various categories of occupations is
shown in various tables below. While such detailed projections are not publicly available
for other potential target countries, based on our interactions with many officials and
experts in many developed countries such as Australia, Canada, France, Germany, Italy,
Japan, Singapore, South Korea, and some emerging economies such as China, India,
Poland and Russia and sporadic information quoted in various reports make us believe
that the US demand data are reasonable proxy for most of the OECD countries and other
potential target countries as well. Through the US demand data we shall establish that for
certain occupational categories world demand is going to be huge and Bangladesh can
build up training capacity for preparing Bangladeshis with requisite skills for those
occupations for catering to the global demand.
Occupations with the most openings
The Table 5.10 shows the occupations projected to have the most job openings in 2014
for people who have education less than a bachelors degree in the US. The tale also
shows the occupation-wise lowest and median hourly earnings in 2004. One can enter
most of the occupations shown on the chart, if one has a high school diploma. Workers
often qualify for jobs after less than one month of on-the-job training. However, six of
the occupations customer service representatives, truck drivers, bookkeeping,
accounting, and auditing clerks, registered
nurses, executive secretaries and
administrative assistants, and general maintenance workers require more specific
training. These are also the highest paying occupations. Customer service representatives,
who often receive 1 month to 1 year of training, usually start their jobs by observing
experienced workers. Truck drivers usually need 1 month to 1 year of training on the job;
some attend vocational schools to learn the basics of commercial driving. Registered
nurses, unlike the other occupations on the chart, almost always have some college
training. In fact, among registered nurses in 2005, more than 35 per cent had an associate
degree and more than 55 per cent had a bachelors or higher degree.
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110
PROJE
CTED
NEED
(1000's)
GROWT
H%
Retail Salespersons
2,283
17.3
1,796
MEDIAN
WAGE
HIGH
SCHOOL
OR LESS
PER CENT
40.7
Retail
3.1
64.3
Retail
1,534
16.7
53.6
Hospitality
1,298
17.1
69
Hospitality
Registered Nurses
1,203
29.4
18
26
1.7
Health Care
1,042
10.2
10
71.3
Construction,
Transportation
778
22.8
13
36.9
Retail
569
12.9
12
22
23.5
Retail
516
22.3
10
60.7
Health Care
507
12.9
10
16
71.7
Transportation
503
5.9
14
37.7
Financial
490
19.7
78.5
Hospitality
486
22.4
16
25
6.8
Financial
464
11.6
82.4
Hospitality
431
56
60.7
Health Care
Team Assemblers
410
7.3
11
71.8
Auto, Advanced
Manufacturing
Carpenters
405
13.8
10
17
73.3
Construction
400
41
59.8
Health Care
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BOTTO
M
WAGE
INDUSTRY
111
PROJECTED
NEED (1000's)
GROWTH
%
BOTTOM
WAGE
MEDIAN
WAGE
HIGH
SCHOOL OR
LESS
INDUSTRY
385
17.5
66.5
Hospitality
Cooks, Restaurant
373
16.6
78.9
Hospitality
363
3.8
10
16
40.8
Retail, Auto
Security Guards
349
12.6
10
51.1
Security
339
15.7
16
65.5
Auto
314
16.4
78.9
Hospitality
Tellers
313
6.8
10
45.8
Financial
312
16.6
12
54.3
Hospitality
282
17.1
12
17
22.8
Health Care
277
23.1
54.7
Hospitality, Retail
Medical Assistants
273
52.1
12
35.3
Health Care
268
48.4
23
37
3.9
Info Tech
265
15.5
13
22
19.9
Security
259
15.7
12
71.7
Transportation
Bartenders
258
14.8
44
Hospitality
253
10.1
82.7
Transportation
Dishwashers
251
15.8
90.8
Hospitality
212
24
21
67
0.9
Health Care
209
10.9
15
25
65.2
Construction
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112
PROJECTED
NEED
(1000's)
GROWTH
%
BOTTOM
WAGE
MEDIAN
WAGE
208
207
197
31.4
11.8
15.6
21
12
6
32
20
7
9.4
51.4
78.7
Info Tech
Construction, Energy
Hospitality
194
193
189
184
183
182
180
175
5.9
15.7
42.7
21.4
23
3.7
43
12.4
8
12
9
9
12
8
25
15
12
20
14
13
20
12
39
25
80.1
66.9
32.9
45.9
16.5
65.7
3.9
46.1
Construction
Construction
Health Care
Financial
Info Tech
Transportation
Info Tech
Auto
174
7.9
10
80.4
173
2.7
13
22
58.6
170
7.9
13
80.9
164
161
13.6
14.4
6
15
11
29
61.4
23.5
157
16.3
44
Advanced
Manufacturing
Auto, Advanced
Manufacturing, Energy
Construction,
Transportation
Transportation
Retail, Advanced
Manufacturing
Hospitality
153
54.6
18
29
9.4
Info Tech
Fire Fighters
150
24.3
10
19
22.2
Security
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HIGH
SCHOOL
OR LESS
INDUSTRY
113
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MCCCaaallclccuuutttttataa
PROJECT
ED NEED
(1000's)
142
GROWT
H%
11.6
138
137
136
135
131
125
124
123
122
121
117
107
102
BOTTOM
WAGE
11
MEDI
AN
WAGE
17
HIGH
SCHOOL OR
LESS (%)
77.5
INDUSTRY
38.4
1.4
13.8
17
12.6
5
25.9
10.4
6.6
17.2
2
28.6
4.3
18
6
6
9
10
10
26
20
11
6
18
8
10
28
9
10
13
15
15
45
34
20
9
30
12
16
13.4
78.9
71.7
36.1
74.7
75.2
6.7
40.9
21.2
45.5
6.2
32.1
66.3
101
101
24.6
19
30
9
42
14
1.2
70.2
Info Tech
Hospitality
Retail
Health Care
Construction, Auto
Advanced Manufacturing
Info Tech
Construction
Financial
Hospitality
Info Tech
Health Care
Advanced Manufacturing,
Auto,
Health Care
Hospitality
98
94
93
91
11.8
17.3
7.7
2.3
6
10
11
7
8
15
18
11
78.9
35.2
35.3
82.9
Hospitality
Financial
Transportation, Geo space
Advanced Manufacturing
88
15.3
13
22
54.4
Transportation
Construction
114
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MCCCaaallclccuuutttttataa
PROJEC
TED
NEED
(1000's)
87
GROWT
H%
BOTTOM
WAGE
MEDIAN
WAGE
HIGH
SCHOOL OR
LESS (%)
INDUSTRY
19
11
18
60.1
Construction
83
82
82
80
80
77
76
76
74
74
74
72
72
72
64
61
61
58
57
56
55
21.7
16.4
43.3
18.2
8.8
16.5
23.2
25
27.3
20.5
27.3
15.9
12.2
36.7
24.8
10.3
14.5
16.7
28.4
9.8
8.1
9
7
18
15
6
21
15
10
8
16
8
10
10
21
6
10
7
9
16
14
11
15
10
29
24
8
31
22
15
12
22
12
15
17
30
10
17
10
15
21
23
19
61.4
73.2
4
27.5
72.4
3.4
9.1
17.5
18.1
17.5
18.1
82.9
67.3
2.2
61.3
75
86.6
46.6
3.9
28.2
54.4
Transportation
Auto
Health Care
Construction
Hospitality
Construction
Health Care
Health Care
Health Care
Health Care
Security
Construction
Construction
Health Care
Transportation
Auto
Construction
Hospitality
Health Care
Energy
Auto
54
51
23.3
38.2
9
17
14
30
77.6
9.1
Transportation
Info Tech
115
Table 5.12: Demand and Salary Data of Occupation to be Targeted by Bangladesh in the US
OCCUPATION
PROJECT
ED NEED
(1000s)
GROWT
H%
BOTTO
M
WAGE
MEDI
AN
WAGE
INDUSTRY
HIGH
SCHOOL OR
LESS (%)
1,298
17.1
69
Hospitality
1,042
10.2
10
71.3
Construction, Energy,
Transportation
507
12.9
10
16
71.7
Transportation
490
19.7
78.5
Hospitality
464
11.6
82.4
Hospitality
Team Assemblers
410
7.3
11
71.8
Auto
Carpenters
405
13.8
10
17
73.3
Construction
385
17.5
66.5
Hospitality
Cooks, Restaurant
373
16.6
78.9
Hospitality
339
15.7
16
65.5
Auto
314
16.4
78.9
Hospitality
259
15.7
12
71.7
Transportation
253
10.1
82.7
Transportation
Dishwashers
251
15.8
90.8
Hospitality
First-Line Supervisors/Managers of
Construction Trades and Extraction Workers
209
10.9
15
25
65.2
Construction
197
15.6
78.7
Hospitality
Construction Laborers
194
5.9
12
80.1
Construction
193
15.7
12
20
66.9
Construction
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116
Table 5.12: Demand and Salary Data of Occupation to be Targeted by Bangladesh in the US continued
OCCUPATION
PROJECT
ED NEED
(1000s)
GROWT
H%
BOTTOM
WAGE
MEDIAN
WAGE
HIGH
SCHOOL
OR LESS
(%)
INDUSTRY
182
3.7
12
65.7
Transportation
Helpers-Production Workers
174
7.9
10
80.4
Advanced
Manufacturing,
Energy,
Transportation
170
7.9
13
80.9
Construction,
Transportation
142
11.6
11
17
77.5
Construction
137
1.4
78.9
Hospitality
Driver/Sales Workers
136
13.8
10
71.7
Retail
131
12.6
10
15
74.7
Construction
125
10
15
75.2
Advanced
Manufacturing, Auto,
Construction, Energy
108
14.4
11
17
66.2
Auto, Transportation,
Construction
Machinists
102
4.3
10
16
66.3
Advanced
Manufacturing, Auto,
Aerosp
101
19
14
70.2
Hospitality
98
11.8
78.9
Hospitality
91
2.3
11
82.9
Advanced
Manufacturing
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117
Table 5.12: Demand and Salary Data of Occupation to be Targeted by Bangladesh in the US continued
OCCUPATION
82
16.4
10
HIGH
SCHOOL
OR LESS
PER
CENT
73.2
80
8.8
72.4
Hospitality
72
15.9
10
15
82.9
Construction
72
12.2
10
17
67.3
Construction
Roofers
65
16.8
15
87.6
Construction
HelpersCarpenters
61
14.5
10
86.6
Construction
61
10.3
10
17
75
Auto
54
23.3
14
77.6
Transportation
46
10
17
84.8
Construction
44
16.6
11
86.6
Construction, Energy
Helpers-Electricians
43
11
86.6
Construction, Energy
43
4.5
10
84.1
Auto
43
4.1
12
73.4
Construction
42
12
12
20
79
Construction
Helpers-Brickmasons, Blockmasons,
Stonemasons, and Tile and Marble Setters
35
14.9
12
86.6
Construction
34
14
69
Advanced
Manufacturing, Auto,
Construction
IIIIIM
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MCCCaaallclccuuutttttataa
PROJECT
ED NEED
(1000s)
GROWT
H%
BOTTOM
WAGE
MEDIAN
WAGE
INDUSTRY
Advanced
Manufacturing, Auto,
Energy
118
Table 5.12: Demand and Salary Data of Occupation to be Targeted by Bangladesh in the US continued
OCCUPATION
PROJECT
ED NEED
(1000s)
GROWT
H%
BOTTOM
WAGE
MEDIAN
WAGE
HIGH
SCHOOL
OR LESS
(%)
INDUSTRY
30
10
15
79.9
Construction, Energy
25
15
11
20
65.8
Construction
24
2.9
10
14
74.1
Energy, Construction,
Aerospace
23
22.9
10
17
77.7
Construction
22
31.2
10
16
68.9
Energy
22
2.8
10
16
67.3
Advanced
Manufacturing, Auto,
Energy
Pipelayers
21
9.9
14
66.9
Energy
19
15.6
10
15
87.6
Construction,
Transportation
Carpet Installers
19
8.4
16
77.7
Construction
Glaziers
17
14.2
10
16
69.7
Construction
16
8.2
10
16
84.6
Construction
15
0.4
10
15
75.2
Advanced
Manufacturing, Auto,
Construction
14
11.5
10
86.6
Construction
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119
2014
Retail salespersons
Registered nurses
Postsecondary teachers
Postsecondary teachers
4,256
2,394
1,628
1,628
4,992
3,096
2,153
2,153
736
703
524
524
2,063
2,534
471
2,374
2,813
440
2,252
2,627
376
2,150
2,516
367
624
624
974
974
350
350
1,455
1,781
325
1,807
2,115
308
701
701
988
988
287
287
1,457
1,722
265
Bachelor's degree
1,176
3,138
1,440
3,401
264
263
Bachelor's degree
Short-term on-the-job training
2,430
2,678
248
1,133
1,379
246
1,177
1,407
230
1,738
1,962
223
460
460
682
682
222
222
1,332
1,533
202
Medical assistants
387
589
202
Medical assistants
387
589
202
1,547
1,739
192
1,454
1,641
187
IIIIIM
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MCCCaaallclccuuutttttataa
Change
2004
Moderate-term on-the-job
training
120
Carpenters
1,349
1,535
186
Teacher assistants
1,296
1,478
183
1,280
1,456
176
889
1,064
175
1,422
1,587
165
1,042
1,206
164
487
640
153
Bachelor's degree
487
640
153
Bachelor's degree
340
486
146
Bachelor's degree
431
573
143
231
357
126
Bachelor's degree
Dental assistants
267
382
114
Moderate-term on-the-job
training
278
385
107
Bachelor's degree
Dental hygienists
158
226
68
Associate degree
224
291
67
Associate degree
Physical therapists
155
211
57
Master's degree
182
237
55
Bachelor's degree
Database administrators
104
144
40
Bachelor's degree
Physician assistants
62
93
31
Bachelor's degree
Occupational therapists
92
123
31
Master's degree
59
85
26
Associate degree
72
97
25
Doctoral degree
60
81
21
Associate degree
42
57
15
Associate degree
43
57
15
45
60
15
Associate degree
Environmental engineers
49
64
15
Bachelor's degree
38
50
12
Moderate-term on-the-job
training
21
29
Associate degree
10
13
Associate degree
Hydrologists
11
Master's degree
Biomedical engineers
10
13
Bachelor's degree
Job title
IIIIIM
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MCCCaaallclccuuutttttataa
2004
2014
Change
121
The Bureau of Labour Statistics of the US issued projections for 21 million more workers
for the decade 2004 to 2014 indicating a remarkably strong demand for workers with few
formal skills. Among the occupations with the fastest projected growth are registered
nurses and university teachers; however, seven of the 10 occupations with the fastest
growth are in low-wage services that require little education. These occupations are retail
salespersons, customer service representatives, food-service worker, cashier, janitor,
waiter and nursing aide and hospital orderly. These latter jobs tend to employ significant
numbers of immigrants. At the same time, 15 of the 30 occupations projected to have the
largest numerical growth require only short, on the job training, and these jobs are
projected to account for 24 per cent of total labour force growth.
As mentioned earlier that as per the estimates of the Bureau of Labour Statistics of the
US there will be a supply shortfall of 12 million by 2014 and 21 million by 2020 in the
US all occupations put together. Using the US demand data as the basis for global
demand we observe that the top 45-50 countries in the list of attractive countries
presented in Chapter IV together will constitute a demand of 3-4 times of the US demand
in most occupational categories. ICT or e-skill is one area where the demand supply gap
would continue to rise in most parts of the world including the developed economies and
the fast growing emerging economies. Different estimates indicate an overall shortfall of
e-skills ranging from 80,000 to 1,50,000 in Europe, over 200,000 in North America and
close to 0.5 million in other fast growing emerging economies by 2015. Further, the
OECD countries collectively would face a manpower shortfall of 25 million by 2014 and
50 million by 2020. This shortfall is to be met by allowing migration of people from
labour surplus countries like Bangladesh. Therefore, it can be concluded that there will be
a huge potential market to be tapped by countries like Bangladesh in many occupational
categories in the next few decades provided they upgrade the supply infrastructure to
develop quality manpower resources that meet the demanding standards of those host
countries.
IIIIIM
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122
Source Countries
Switzerland (2001)
Germany (2003)
Spain (2005)
Luxembourg (2001)
France (2123); Portugal (2293); Belgium (1490); Germany (657); Italy (602);
United States (163); Netherlands (201); Spain (152)
Italy (2005)
IIIIIM
IM
MCCCaaallclccuuutttttataa
123
Source Countries
Netherlands (2002)
Malaysia (2004)
France (2004)
Belgium (2003)
Austria (2001)
Kuwait (2003)
Oman (2005)
Australia (2005)
Japan (2005)
Denmark (2002)
Portugal (2003)
Bahrain (2004)
United Kingdom (17,078); China (5,629); South Africa (4,484); India (3,490);
Samoa (2,656); Fiji (2,628); USA (2,061); Korea (2,058); Tonga (1,122);
Philippines (1,107)
IIIIIM
IM
MCCCaaallclccuuutttttataa
124
Source Countries
Norway (2005)
Greece (2005)
Sweden (2005)
Poland (3166); Iraq (2198); Thailand (2120); Serbia (1905); Denmark (1667);
Turkey (1027); Iran (1016)
Poland (2003)
Germany (2335); USA (1137); Ukraine (350); Italy (251); France (247)
Cyprus (2004)
Europe
Australasia
Asia
366382
1207
29260
Bangladesh
Canada
China
88436
Germany
India
98299
53407
16724
26182
1625
16334
12904
95592
3370000
2137
728679
259000
Indonesia
Iran
16925
Iraq
Middle East
1280000
16434
1272
18883
2079
Korea
25117
Pakistan
25097
26199
Philippines
71727
15545
Poland
15660
176852
Russia
17740
42112
210000
3846
60728
1675000
5346
461544
975000
Sri Lanka
2587
16717
745000
Thailand
1705
234492
35298
19900
3639
31130
2476
292000
Turkey
159300
UK
20268
22893
Ukraine
16629
17993
USA
Vietnam
2586
33496
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The following table shows the average flow of temporary migrants from different
competing Asian countries. It is quite apparent that Philippines have consolidated its lead
over other rival countries in the last one decade. Bangladesh, though is still behind
Indonesia and India, but has improved its position vis as vis most other Asian
competitors.
Table 6.3: Average Annual Migrants Leaving for Jobs Abroad (in thousands)
Country
Bangladesh
1990-1994
174
1995-1999
263
2000-2004
270
China
75
375
India
377
360
353
Indonesia
118
328
387
Pakistan
145
118
130
Philippines
489
746
867
Sri Lanka
52
165
195
Thailand
87
193
165
Vietnam
13
83
Sources: ILO International labour Migration Database.
The following table presents the trend of remittances flowing to different labour
exporting countries. The country receiving the most worker remittances was Mexico with
over US$25 billion, closely followed by India ($23.5 billion) and China ($22.5 billion) in
2006. These three countries along with the Philippines have been receiving the highest
amount of remittances for the past one decade. For Bangladesh the remittances are shown
as US$4.8 billion, much lower than the internal unofficial estimate in Bangladesh which
is close to US$8 billion.
Table 6.4: Top 15 Remittances Receiving Countries ($ million)
1995 2000
2001
2002
2003
Mexico
25,038
India
23,548
China
22,492
Philippines
14,923
France
12,742
Spain
7,927
Belgium
7,158
United Kingdom
6,722
Germany
6,542
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2001
2002
2003
2004
2005
2006 estimate
Lebanon
5,723
Morocco
5,196
Bangladesh
4,810
4,703
4,600
4,466
96
116
143
124
132
4,466
Due to a lack of authentic data, remittance flows to Sub Saharan African countries are
also grossly underestimated. Remittances are concentrated in a few countries: the top 20
recipients accounted for 66 per cent of the world total in 2004, eight being developed
countries. In addition, a large, unknown amount is transferred through informal channels
or to countries that do not report statistics on remittances. Among South Asian countries,
India, Pakistan and Bangladesh were among the top recipients. When remittances are
calculated in per capita terms or as a share of GDP, a different picture emerges. The top
20 recipients in shares of GDP are all developing countries; all receive more than 10 per
cent of GDP as remittance flows. In South Asia Nepal is amongst the most dependent on
remittances. This makes its economy more vulnerable.
The following tables show the major suppliers of skills in different continents. It is
evident that in general while some of the OECD countries have been the major suppliers
of the professionals and skilled workers, the developing countries have been the suppliers
of semi skilled and unskilled workers. However, countries like India and the Philippines
have been fast emerging as the important suppliers of skilled and professional workers in
some parts of the globe. If Bangladesh has to expand its market presence beyond its
current market, it is going to face stiff competition from a few countries in each region,
some being common competitors and some being unique to that region. A few countries
such as China, India and Philippines are going to be the common competitors of
Bangladesh in most regions. Other than these countries, Bangladesh has to face
competition from Turkey, Poland, and some other East and Central European countries
such as Romania and Bulgaria and Sub Saharan countries such as Morocco, Somalia and
Tunisia in Europe; Mexico, Jamaica, and Colombia in the North America; Vietnam and
Fiji in Australasia.
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EUROPE
Professionals
Skilled
Semiskilled
Unskilled
Germany
USA
Italy
UK
Denmark
France
Ukraine
India
South Africa
Australia
New Zealand
Japan
Canada
Russia
Germany
Italy
Denmark
France
Ukraine
India
Bulgaria
Thailand
Austria
Norway
Chile
Iceland
Turkey
Morocco
Somalia
Croatia
Philippines
Sri Lanka
Vietnam
Thailand
Tunisia
Chile
Congo
Nigeria
Zimbabwe
Turkey
Morocco
China
Somalia
Croatia
Iran
Philippines
Sri Lanka
Vietnam
Tunisia
Congo
Nigeria
Zimbabwe
Poland
Jamaica
Jamaica
Afghanistan
Afghanistan
Brazil
Brazil
Poland
NORTH AMERICA
Professionals
Skilled
Semi
skilled
Unskilled
India
China
Philippines
Korea
Pakistan
UK
Iran
Ukraine
Jamaica
India
China
Philippines
Dominican Rep
Korea
Pakistan
UK
Russia
Iran
Mexico
Vietnam
Haiti
Jamaica
Sri Lanka
Turkey
Afghanistan
Algeria
Colombia
Mexico
Vietnam
El Salvador
Guatemala
Haiti
Peru
Sri Lanka
Turkey
Iraq
Germany
Ukraine
Afghanistan
France
Jamaica
Algeria
Germany
Colombia
France
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AUSTRALIA-NZ
Professionals
Skilled
Semi
skilled
Unskilled
UK
India
South Africa
Korea
USA
Samoa
Singapore
Germany
Japan
China
India
Malaysia
Korea
Samoa
Singapore
Germany
Japan
Hong Kong
China
Philippines
Fiji
Sri Lanka
Vietnam
Afghanistan
Taiwan
Turkey
Somalia
Philippines
Fiji
Sri Lanka
Vietnam
Indonesia
Iraq
Afghanistan
Turkey
Somalia
Hong Kong
Tonga
Tonga
Iran
Iran
Canada
Canada
Netherlands
Netherlands
Taiwan
Ireland
Ireland
Russia
Russia
Poland
MIDLE EAST
Professionals
Skilled
Semi
skilled
Unskilled
Iran
UK
Russia
India
Iran
Pakistan
Yemen
India
India
Bangladesh
Philippines
Sri Lanka
India
Egypt
Pakistan
Yemen
Philippines
Jordan
Bangladesh
Thailand
Philippines
Turkey
Sri Lanka
Jordan
Sudan
Indonesia
Syria
Thailand
Nepal
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ASIA
Professional
Skilled
Brazil
US
Canada
UK
Australia
India
India
Korea
Japan
Philippines
Semi
skilled
Unskilled
Bangladesh
Philippines
Thailand
Vietnam
Nepal
India
Pakistan
Sri Lanka
Indonesia
Bangladesh
Philippines
Thailand
Vietnam
Nepal
Pakistan
Sri Lanka
The following table presents the profile in terms of supply and the historic migration
pattern of those countries which are likely to be the main competitors of Bangladesh
while exporting manpower in different parts of the world.
Table 6.6: Profile of the Major Competitors
COUNTRY
PAKISTAN
SUPPLY OF SKILLS
Engineers, Doctors, Nurses, Teachers,
Accountants, Managers, mason, car
painter, electrician, cook, plumber,
waiter, steel fixer, painter, laborers,
technician, mechanic, cable jointer,
driver, operator, tailor, surveyor, fitter,
denter, system analyst &
computer/programmer, designer,
goldsmith, rigger, salesperson, craftsman,
blacksmith
MIGRATION PATTERN
Europe Semiskilled
Middle East - Skilled, Unskilled
North America - Professional,
Skilled
Asia - Semiskilled, Unskilled
PHILIPPINES
SRILANKA
INDIA
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SUPPLY OF SKILLS
Scientists, Technicians, Doctors,
Teachers, Construction workers,
Managers, Clerical workers, Sales &
service workers, Agriculture workers,
Production workers
MIGRATION PATTERN
Europe - Professional, Skilled
Middle East - Professional, Skilled,
Unskilled
North America - Professional,
Skilled
YEMEN
VIETNAM
MEXICO
NEPAL
NIGERIA
SUPPLY OF SKILLS
Housemaid, Construction workers,
Welding, Concrete operators/construction
workers, Machining, Plumbing, Metal
pressing, Agricultural laborers, Nursing,
Teaching
MIGRATION PATTERN
Australasia Unskilled
North America Unskilled
Asia - Unskilled
CHINA
Europe Unskilled
Australasia Skilled, Semiskilled
North America Professional,
Skilled
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A recent survey by CIO Magazine clubs off shoring destinations in three categories:
Main destinations: Ireland, India, Israel, Canada, Philippines and South Africa.
Upcoming: Ukraine, Russia, Czech Republic, Poland, China, Pakistan Brazil, Argentina
and Mexico.
Others: Chile, Venezuela, Thailand, South Korea, Malaysia, Vietnam, Singapore and
Romania.
The above countries, particularly those belonging to the first two categories, are likely to
face tight labour market and skill shortage for their export oriented domestic industries in
the next decade as they will be buoyed by the outsourcing opportunities from many of the
developed economies like US and Europe. The domestic labour market is going to
provide ample job opportunities for many occupations, particularly those suited for the
knowledge based and services industries in these countries. Therefore, in the long run
these countries will face difficulty in exporting manpower even though they have
competitive advantage over Bangladesh. The symptoms are already visible as many of
the Indian overseas manpower companies have been reporting stiff supply side
challenges in exporting manpower to the Middle East.
The following table presents some of the important demographics of the leading South
Asian competitors of Bangladesh. Bangladesh is likely to face competition from Nepal in
the coming years both in the Asian as well as Middle East markets in the export of
unskilled manpower. In the semiskilled category, Bangladesh will be facing stiff
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challenge from Pakistan, Sri Lanka and to some extent from India. In the skilled category
the toughest challenge for Bangladesh will be to compete with India in all markets.
Table 6.7: South Asian Competitors: Trends in Population, Labour Force,
Employment and Unemployment
Country
Bangladesh*
India*
Nepal*
Pakistan
Sri Lanka*
Description
Population
87.1
106.3
123.8
145.2
Rate of Growth
1980-90 1990-00 200004
2.01
1.54
1.36
Labour Force
30.9
51.2
40.8
46.3
5.18
3.21
Employed:
30.6
50.2
39.0
44.3
5.07
3.24
Unemployed:
0.3
1.0
1.8
2.0
12.79
2.67
Population
683.3
846.3
1028.6
1090.6
2.16
1.97
1.47
307.0
379.9
406.1
407.6
2.15
0.67
0.09
Labour Force(CDS)
243.2
323.1
363.3
385.3
2.88
1.18
1.48
Employed (UPSS)
301.1
372.5
397.0
398.5
2.15
0.64
0.09
Employed (CDS)
221.4
305.9
336.8
353.3
3.29
0.97
1.20
Unemployed (UPSS)
5.9
7.4
9.1
9.2
2.29
2.09
0.27
Unemployed (CDS)
21.8
17.2
26.6
32.0
-2.34
4.46
4.73
Population
15.0
18.5
23.2
24.8
2.12
2.29
1.68
Labour Force
6.1
9.9
9.8
n.a
4.96
-0.10
Employed:
n.a
7.7
8.9
12.4
1.46
Unemployed:
n.a
2.2
0.9
n.a
-8.55
Population
84.0
132.4
139.1
150.6
4.66
0.49
2.01
Labour Force
25.4
33.7
42.4
45.2
2.87
2.32
1.61
Employed:
n.a
30.8
38.9
41.8
2.36
1.81
Population
15.0
17.02
19.36
19.46
1.27
1.30
Labour Force(million)
5.5
5.9
6.8
8.0
0.70
1.43
4.15
Employed(million)
4.9
5.0
6.37
7.3
0.20
2.34
3.75
Unemployed(million)
0.6
0.8
0.5
0.7
2.92
-4.59
8.78
8.64
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2002 (table 11, pg 147). The figures for 1980, 1990, 2000 and 2004 are obtained by interpolation for the
mid-points of the respective years
(b) UPSS estimates are from the Report of the Task Force on Employment Opportunities, GOI, PC, 2001.
(c) In India, the absolute number of CDS unemployed is measured in million person years.
5. The employment estimates for Nepal for 1990 is for 1995. This and the 2004 figure are taken from the
revised draft RPP Report. The 2000 estimate is from the earlier draft RPP Report. The 1990 and 2000
figures are for the age group 10 and above. That for 2000 is for 15 and above. The employment growth
figure for 1980-90 is from the Nepal Statistical Profile. That for 1990-00 is calculated from the
employment estimates for 1995 and 2004.
Source: Asian Development Bank and RPP Reports
The following section profiles some of the leading manpower exporting countries which
are the key competitors of Bangladesh.
Philippines
The Philippines government has been treating temporary labour migration as the foreign
policy priority in both bilateral and regional trade negotiations for the past three decades.
The Philippines experienced a huge outflow of high and low skilled workers during the
last several decades. Before the 1970s these outflows were sporadic and largely
unorganized. The determining factor of the migration process was mainly the initiative of
the individual to work abroad. In the mid-seventies, largely in response to increased
demand for contract workers by the oil exporting countries of the Middle East, the
Philippines government established control over the temporary contract workers flows by
instituting a regulatory system overseeing the process of the Philippines agencies to
recruit workers. As early as 1974, the Philippines had an official government policy on
labour migration. In the 1970s and 80s several government agencies were created to
monitor the migration of Filipino labour and to provide assistance and support to the
Filipino diaspora. Specifically, the Philippine government created in 1982 the Philippines
Overseas Employment Administration (POEA) and the Overseas Workers Welfare
Administration (OWWA).
The POEA is the institution that manages temporary migration. This agency regulates the
work of Filipinos abroad under the authority of the government. The main responsibility
of that agency is to provide contract labour to foreign employers. The main destinations
of Filipino workers are to Middle Eastern, Asian and European countries. In order to
leave the country to work abroad, Filipinos must be accepted into the program by either a
licensed recruiter, a specialized government agency, or must have their contract approved
by the POEA and enrol in the official benefits program. Later, the government launched
the LINKAPIL programme to enable Filipino migrants to support development projects
at home, including infrastructure projects, education, healthcare, etc. The total amount of
contributions Filipino migrants have made through LINKAPIL amount to more than 1
billion US$. The Philippine government has also floated development bonds targeting
migrant worker investors and established a special pension fund which includes
resettlement and medical services for returning migrant workers. Most recently the
Philippine government established the Inter-Agency Committee on the Shared
Government Information System for Migration to better co-ordinate and share
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information among the various agencies dealing with migration and diaspora outreach
issues.
Following are some of the significant trends in the migration of Filipinos:
The predominance of the Middle East as a work destination in the seventies and
early eighties gave way to the emergence of Asia in the nineties and thereafter.
A male-dominated labour migration stream in the seventies gave way to an
increasing feminization of these streams in the mid-eighties and the nineties as the
number of female workers has continued to outnumber their male counterparts
since 1992.
The preponderance of production, transport, construction, and related workers in
the skill composition of the labour migration stream in the seventies and mideighties has shifted to an ever increasing proportion of service workers,
particularly domestic helpers, health workers, teachers, and entertainers in the
mid-eighties and nineties.
Table 6.8: Deployment of OFWs
Asia
1998
307,261
1999
299,521
2000
292,067
2001
285,051
2002
292,077
2003
255,287
2004
266,609
2005
255,084
Middle East
279,767
287,076
283,291
297,633
306,939
285,564
352,314
394,419
Europe
26,422
30,707
39,296
43,019
45,363
37,981
55,116
52,146
Americas
9,152
9,045
7,624
10,679
11,532
11,049
11,692
14,886
Africa
5,538
4,936
4,298
4,943
6,919
8,750
8,485
9,103
Oceania
2,524
2,424
2,386
2,061
1,917
1,698
3,023
2,866
638,343
640,331
643,304
662,648
682,315
651,938
704,586
740,360
193,300
196,689
198,324
204,951
209,593
216,031
229,002
247,983
Total OFWs
831,643
837,020
841,628
867,599
891,908
867,969
933,588
988,615
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It is quite evident that the Philippines have been systematically strengthening its position
as a global supplier of manpower in all the regions of the world. While retaining its
stronghold in some of the traditional Middle East and Asian countries, the Philippines
have progressively penetrated some of the important European and American markets.
They have not only started sending OFWs to many new markets, but also made
substantial presence in some of these markets such as Ireland, Israel, Italy, UK, the USA
and China.
Table 6.9: Major Destinations of OFWs
Saudi Arabia
1998
193,696
1999
198,556
2000
184,724
2001
190,732
2002
193,157
2003
169,011
2004
188,107
2005
194,350
Hong Kong
122,337
114,779
121,762
113,583
105,036
84,633
87,254
94,568
UAE
35,485
39,633
44,631
44,631
50,796
49,164
68,386
82,039
Taiwan
87,360
84,186
51,145
38,311
46,371
45,186
45,059
46,737
Japan
38,930
46,851
63,041
74,093
77,870
62,539
74,480
42,633
Kuwait
17,372
17,628
21,490
21,956
25,894
26,225
36,591
40,306
Qatar
10,734
7,950
8,679
10,769
11,516
14,334
21,360
31,421
Singapore
23,175
22,812
22,873
26,305
27,648
24,737
22,198
28,152
Italy
20,233
21,673
26,386
21,641
20,034
12,175
23,329
21,267
United Kingdom
502
1,918
4,867
10,720
13,655
13,598
18,347
16,930
Lebanon
1,342
1,674
2,783
3,350
3,046
2,786
7,795
14,970
Korea
2,337
4,302
4,743
2,555
3,594
7,136
8,392
9,975
Bahrain
5,180
5,592
5,498
5,861
6,034
6,406
8,257
9,968
Brunei
16,264
12,978
13,649
13,068
11,564
9,829
10,313
9,083
USA
3,173
3,045
3,529
4,689
4,058
3,666
3,831
7,752
Malaysia
7,132
5,978
5,450
6,228
9,317
7,891
6,319
6,599
Ireland
18
126
793
3,734
4,507
5,642
5,439
5,710
Libya
7,084
5,937
5,962
5,489
6,114
5,083
5,728
5,328
Oman
5,199
5,089
4,739
4,512
3,303
3,662
4,279
5,308
Israel
2,022
3,488
4,429
5,582
5,049
5,094
5,639
5,121
China
1,280
1,858
2,348
1,979
2,046
2,168
2,942
4,608
Jordan
551
456
541
560
701
812
1,166
3,844
Canada
1,957
2,020
1,915
3,132
3,535
4,006
4,453
3,629
Thailand
1,384
1,014
1,015
2,056
1,162
2,139
1,750
2,401
2,226
2,097
1,987
1,743
1,542
1,463
2,616
2,072
Greece
593
2,145
1,618
1,402
1,819
1,880
991
1,656
Russia
31
56
112
77
57
67
317
1,274
Spain
1,940
1,557
1,913
1,783
1,751
1,258
1,452
907
Australia
182
184
234
148
138
156
250
586
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the capabilities of the worker, all applicants for domestic helper shall undergo skills
assessment by the Technical Education and Skills Development Authority (TESDA).
TESDA-certified workers will be issued Certificate of Competency. Domestic helpers
with years experience as household workers abroad can directly go through TESDA skills
assessment system. The worker will also undergo a country-specific language and culture
training to be sponsored by the Overseas Workers Welfare Administration (OWWA) free
of charge to the worker. The POEA Governing Board also approved the minimum wage
of US$400, doubling the prevailing wage rate of US$200 especially in the Middle East
countries. The Philippine Overseas Employment Administration shall not process
contracts of employment of domestic helpers without the TESDA-issued COC and the
OWWA-issued certificate of completion of the orientation of country-specific language
and culture.
The "no-placement-fee" policy for host countries where laws and regulation requires the
employer to pay the cost of hiring will be strictly applied to recruitment and placement of
domestic helpers. Any violation by the recruitment agency will result to the cancellation
of license. With highly trained household workers, recruiters in the Philippines can
demand higher service fees from employers, which include the placement fee that is
usually asked from the worker. Also under the new policy, the Philippine Overseas
Labour Offices (POLO) will be strict in their pre-qualification system to determine the
employers fitness to hire domestic workers, including personal interview of the
employer. The POLO and the POEA shall blacklist employers who have committed cases
of abuse and maltreatment against Filipino workers and cases of contractual breaches
especially non-payment or underpayment of salaries. Incidentally, the government
prohibits its citizens to overstay visas in host countries. It maintains a list of workers who
have violated the conditions of their deployment and are therefore banned from future
contracts. In large part this is done in order to support the governments efforts to market
Filipinos abroad as a worldwide high-quality "brand name" of migrant labour. Countries
like Japan, Singapore, Korea and to some extent Middle East prefer Filipinos over other
Asian countries.
In 2006, over 1 million Filipinos have been sent to more than 180 countries for temporary
employment. In spite of a high base the Philippines have been maintaining a steady
growth of overseas employment was propelled by the following factors: a) continued
preference of foreign principals and employers for Filipino labour; b) efforts of POEA to
strengthen its foothold on the traditional markets and increase its share in new markets; c)
steady increase in the accreditation of new principals employing land based workers and
Filipino seafarers; d) inbound marketing program realized through the DOLE Labour
Opportunities Program (DOLOP) which successfully showcased Filipino skills and
talents to foreign principals and employers; e) outbound marketing missions to the
Middle East, Taiwan and Cyprus; f) increase in the demand for more skilled and
professional workers, particularly in the medical and allied services; g) a rapid increase in
the placement of workers hired through the government-to-government arrangement,
particularly the RP-Korea Employment Permit System; and h) shorter processing time of
employment contracts through the e-submit hub of the OFW e-Link Program.
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In many ways, the Philippine government has gone much further than other countries in
terms of promoting labour migration as a deliberate strategy while at the same time
reaching out to its diaspora and including them in national development strategies and
economic policy. Indeed, over the past few years the Philippines has entered into multilateral and bilateral labour agreements with several countries in the Asia-Pacific, the
Middle East, and Europe where most Filipino workers are found. They have also signed
memoranda of understanding on manpower, economic, commercial, trade, and technical
co-operation have been signed with several countries.
Pakistan
With an aim to establish employment opportunities for Pakistani citizens seeking
overseas deployment and in order to control and regulate labour migration flows, the
Bureau of Emigration & Overseas Employment (BEOE) was established as a centralized
agency by order of the president in 1972. The BEOE adheres to two basic goals: to
combat unemployment in Pakistan and to earn foreign exchange through salary
remittances from workers abroad. The objectives of the BEOE comprise implementation
of foreign employment policies; protection of migrant workers rights abroad;
enhancement of remittances sent back and directing them to cover the balance of
payments deficit and development of national project; lessening unemployment pressures
at home; and contributing to Pakistan prosperity through achieving transparency of the
foreign employment process and utilization of legal channels to assist in sending workers
abroad.
Table 6.10: Number of Pakistanis who proceeded abroad for Foreign Employment
Country
1980
1985
1990
1995
2000
2004
Saudi
Arabia
80,124
53,870
79,435
73,815
67,991
71339
U.A.E
16,639
16,503
20,083
27,550
27,726
66118
Oman
7,839
8,938
8,364
9,120
4,500
9068
Qatar
1,294
2,239
1,367
562
3,404
2397
Kuwait
4,388
2,067
1,338
3650
127
18557
Bahrain
2,113
2,881
2,516
1,363
926
855
Iraq
7,821
856
2,076
Libya
2340
435
S. Korea
486
1071
2474
USA
702
130
UK
21
235
1419
480
1,114
2072
Others
9,629
1,107
341
Source: Bureau of Immigration, Government of Pakistan
The Ministry of Labour, Manpower & Overseas Pakistanis has established its agencies,
called Community Welfare Attaches (CWAs), in countries with large concentrations of
Pakistani workers. The CWAs are in charge of practically all issues concerning Pakistani
workers in their host countries. They provide support to the temporary workers and assist
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with repatriation and resolution of legal questions that arise at a migrants workplace. The
office of the Protector of Emigrants regulates the activities of the overseas promoters and
agents. Overseas employment promoters and agents are always encouraged by
government to boost the export of manpower from Pakistan through legal channels.
Since 1999 over 270,000 people have been sent to work abroad through the Overseas
Employment Promoters (OEPs), that reports to the BEOE An average of over one billion
US$ per year has been Similar to the Sri Lankan case there are private recruiting agencies
that hire workers for deployment abroad. The Government of Pakistan applies stringent
criteria for granting licenses to these agents and overseas employment promoters in the
country. According to the information found on the official Ministry of Labour website,
the Overseas Employment Corporation [established 1976 to promote employment in the
public sector abroad] has sent over six thousand Pakistanis to work on a government to
government basis. The Corporation maintains a data bank and a website with background
information on registered professionals, skilled, semiskilled and unskilled workers. That
enables to quickly match a workers particular skill-set with new opportunities abroad.
Table 6.11: Country-wise Remittances Received from Abroad (million US $)
Country
Bahrain
1980
33.04
1985
51.07
46
1995
35.9
2000
29.36
2004
67.71
Canada
7.33
6.49
13.98
4.91
3.86
18.84
Germany
57.38
36.43
31.54
27.71
10.47
38.55
Japan
26.84
6.9
1.58
4.45
Kuwait
111.64
205.39
167.25
57.86
135.25
144.86
Norway
14.46
13.47
19.75
13.4
5.6
8.52
Qatar
63.2
59.05
30.65
11.52
13.29
74.06
Saudi
Arabia
795.46
1245.23
792.19
554.08
309.85
468.83
Oman
73.57
166.41
99.97
61.49
46.42
87.03
U.A.E
129.93
189.87
172.03
178.26
147.79
500.31
U.K
149.72
135.98
178.16
109.96
73.27
273.15
U.S.A
61.47
105.35
209.24
141.09
79.96
998.72
167.12
114.65
56.79
40.14
Others
92.31
78.91
Source: RPP 2005 Pakistan country report
1990
India
India has traditionally been a large source country for skilled and unskilled migration.
There are an estimated 20 million plus Indians living abroad, who generate about US$160
billion in annual income, and account for US$400 billion worth of output. Movement of
service suppliers is significant for the Indian economy in many respects. First and
foremost is its financial contribution to the Indian economy through remittances, foreign
exchange earnings, and increased savings. Remittances have constituted between 1 to 2
per cent of GDP in India.
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If the migration of Indian workers to the Gulf states was the dominant story of the 1970s
and the 1980s, the migration of information technology (IT) workers, principally to the
United States, has been the trend since the mid-1990s. Though, the temporary migration
to the Middle East continues to be the dominant phenomenon in terms of numbers, in
terms of remittances received the US and Europe have emerged as the dominant
destinations. The migration of primarily professionals and skilled workers to the US and
Europe has helped India steadily increase the per capita remittances from these regions.
Moreover, the success of the Indian IT services company riding on the wave of global
outsourcing has also played a part in greater remittances to India.
Table 6.12: Emigration for Employment from India
Year
2000
2.43
2001
2.79
2002
3.68
2003
4.66
2004 4.75
Source: India RPP 2005 country report
Table 6.13: Annual labour Outflows from India by Destination (2000-04) (%)
Country
2004
2003
2002
2001
2000
UAE
22.66
19.26
25.85
30.83
36.90
Saudi Arabia
24.15
28.01
27.05
26.03
26.01
Kuwait
12.78
14.26
1.32
11.67
10.96
Oman
6.23
11.12
11.21
7.89
7.01
Malaysia
1.90
2.20
2.86
5.77
6.62
Bahrain
6.54
5.88
5.66
5.31
4.84
4.96
3.43
3.06
3.44
14.31
22.62
9.44
4.34
100.00
100.00
Qatar
Others
25.74
Total
100.00
100.00
100.00
Source: India RPP 2005 country report
Indian migration to the United States doubled in the 1990s, mostly through the use of H1B temporary worker visas, which allow those in specialty occupations to work in the
country for up to six years with the possibility of receiving permanent residence. Indian
software engineers became an important element of the US IT boom. Indians are mainly
engaged in occupation such as managerial and professional (43.6 per cent), technical
sales and service sectors (33.2 per cent) and skilled laborers (23.3 per cent). Even in the
Gulf countries, the number of Indian professional and managerial workers has been
increasing steadily. Since the 1990s there has been an upscaling in the skill content of the
Indian workers with rising share of professionals (10 per cent) and white-collar groups
(20 per cent). This new "class" of high-skilled Indian workers has greater purchasing
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power as well as more saving potential than lower-skilled workers. The fact that they
have migrated more recently, keeps them more connected to India. The growth of India's
home-grown IT services industry has also helped foster strong business connections
between India and Indian IT professionals abroad. Thus, the relative number of Indian
professional workers going abroad has been growing rapidly during the past decade. The
change in patterns of emigration has led to a significant shift in the source regions of
remittances to India. It is estimated that 44 per cent of remittances originate in North
America, 24 per cent in the Gulf region, and 13 per cent in Europe as shown in the
following Figure. In contrast, studies show that in 1990-1991, 40 per cent of the
remittances came from Gulf countries and 24 per cent from North America.
Source: Reserve Bank of India. "Invisibles in India's Balance of Payments." RBI Bulletin, November 2006.
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regulated by SLBFE through the licensing system. Accredited Sri Lankan Recruitment
Agencies are professional organizations that maintain strong working relationships with
the Bureau. There is also explicit statistical data, as in the case of the Philippines,
regarding the destination and gender of the people migrating abroad for work. The total
numbers of departures from Sri Lanka for foreign employment has increased by 1.7 per
cent from slightly less than two hundred and ten thousand in 2003 to over two hundred
thirteen thousand in 2004 (with distribution between genders being: 63 per cent female
and 37 per cent male workers).
Table 6.14: Sri Lanka: Foreign employment by country/gender 2000-2004
Country
2000
2001
2002
2003
2004
Male
Female
Male
Female
Male
Female
Male
Female
Male
Female
Saudi Arabia
26,161
35,198
26,672
40,013
27,622
43,868
25,812
50,283
23,893
46,998
Kuwait
5,340
28,293
6,041
29,059
6,686
35,156
6,770
31,853
7,039
29,494
U.A.E
10,346
22,469
9,169
19,122
12,538
20,355
14,362
17,955
15,468
17,243
Lebanon
443
12,752
442
14,993
423
12,269
356
12,851
376
17,442
Jordan
383
6,971
447
7,629
388
6,146
520
6,562
1,177
7,722
Qatar
9,350
2,787
11,169
2,884
17,153
3,591
18,700
5,098
24,877
4,972
Oman
1,284
3,680
1,266
2,403
1,335
2,243
1,546
2,585
1,618
1,789
Bahrain
1,484
4,993
948
2,790
948
3,578
1,179
2,552
966
2,833
Cyprus
448
1,891
639
2,451
681
2,412
625
2,418
501
2,622
Maldives
2,078
977
1,727
665
1,500
1,395
2,090
1,103
2,111
343
Singapore
147
1,470
229
1,278
112
1,158
85
984
123
855
South Korea
654
201
280
73
421
101
1,798
238
1,182
122
Hong Kong
22
352
12
370
267
222
154
Malaysia
1,165
39
185
151
99
282
30
209
30
211
Others
488
322
581
319
613
430
629
424
610
684
Total
59,793 122,395 59,807 124,200 70,522 133,251 74,508 135,337 79,979 133,484
Source: Sri Lanka Bureau of foreign employment / Annual Statistical report of foreign employment -2004
Sri Lanka is putting a lot of effort in protecting its workers abroad. Bilateral agreements
between countries providing terms and rules of settlement of employee grievances and
the recognition of employment contracts constitute some of the main priorities of the
SLBFE. To curb any illegal activity and offer sufficient protection the Sri Lankan
government requires that all migrants are registered with SLBFE. As its core benefits
SLBFE provides free insurance (health, repatriation and disability), training and
awareness programs, payment of embarkation tax, provision of scholarships for workers
children, career guidance, and monitoring the process of their education, setting up
runaway houses in Saudi Arabia and Kuwait to accommodate women who have been
compelled to leave their places of employment; and also providing the Sri Lankan
embassies in the Middle Eastern host countries with Labour Welfare Offices.
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Labour
Total
Worker
89,822
Percentage
38.40%
Cumulative %
38.40%
Cleaning
31,903
13.60%
52.10%
Driver
21,496
9.20%
61.30%
Technical Personnel
20,327
8.70%
69.90%
Agriculture
16,093
6.90%
76.80%
Construction Labour
16,000
6.80%
83.70%
Group
Catering Services
12,493
5.30%
89.00%
Source: Bureau of Manpower, Employment and Training and authors estimate
Mr. Nahid Ahmed of Value Plus Consulting, Dhaka, Bangladesh and participants from Bangladesh who
attended the Top Management Programme at IIM Calcutta have contributed significantly towards
development of this chapter.
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Table 7.2: Country wise break up of major occupations of Bangladeshi migrant workers (2005)
Job
Labour
Bahr
4303
Italy
910
Jordan
1136
Kuwait
16341
Cleaning Labour
145
22
2536
Driver
274
16
13002
Cook
256
4156
Farmer
23
House Boy
116
7615
Agriculture
Labour
90
Worker
1421
234
19
Machine Operator
4735
145
Libya
283
Malay
161
Oman
722
Qatar
723
Saudi Arabia
16802
Spore
2828
Sudan
599
UAE
20204
UK
215
Total
65227
20
15212
144
3352
466
21920
232
5651
1917
71
704
3856
2066
32
2213
3311
8300
34
59
39
12
7880
1084
5050
1239
7474
908
325
122
1832
100
103
13
651
Female Labour
30
1638
533
17
14
Carpenter
299
62
Construction
Worker
Operator
27
Electrical
Technician
1
1
56
223
1289
203
1463
29
2107
2083
13
2276
4339
54
4323
42
215
37
33
469
76
121
51
49
1670
212
1696
Tailor
1082
102
245
1288
952
Servant
167
277
89
10
14
2735
Welder/Fabricator
90
96
403
1326
921
2797
27
763
72
209
Labour
108
32
Helper
54
443
7
Source: Bureau of Manpower, Employment and Training
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4593
1291
26
99
6635
2507
23
22
9324
4826
12
Painter
23
517
1818
256
4679
Mason
72
21103
32
3879
2
3682
3299
45
59
4003
2869
2846
1712
2742
1509
2399
145
The following table provides an idea about the occupations in different skill categories in
which Bangladesh has been exporting manpower. If we compare this list with the
occupation categories that are globally demanded as discussed in the Chapter V, we
observe that Bangladesh is conspicuous by absence in the export manpower in many
occupational categories. It appears that many of the occupation categories Bangladesh
does not have adequate supply both in terms of quality and quantity of manpower
resources.
Table 7.3: Job Categories of Bangladeshi Migrants
Professional
Medical Doctors (All
specialities)
Skilled
Drivers (All types)
Un-skilled
Housekeeping/Cleaners (All types)
Semi-skilled
Auto equipment
servicing
Agricultural worker
Construction Worker
Lifeguard
Gardener
IT (designers, programmers,
testers etc)
Potter
Caretaker
Fixer
Guard
Engraver
Accountants
Blacksmith
Barber/Hairdresser
Auditors
Porter
Finisher
Economists
Janitor
Cooks
Joiner
Peon
Electrician
Binder
College/University Lecturers
Pump attendant
Auto Mechanic
Extraction workers
Locksmith
Delivery Man
Welder
Waiter
Tailor
Butcher
Plumber
Grinder
Fitter
Driller
Masons
Carpenter
Miller
Goldsmith
Nurses
The huge majority of international migrants come from rural areas, concentrated in
Noakhali, Sylhet, Chittagong, Comilla, Faridpur and increasingly Dhaka districts of the
country as shown in the following Table. Most migrants are young unskilled labours aged
between 15 and 30 years, and poorly educated. The bulk of migrants are male (85 per
cent).
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2005
Comilla
22155
33792
01/01/06 to
31/08/06
29312
Chittagong
15189
22885
17789
Dhaka
13045
19342
12787
Tangail
11678
18479
18030
Brahmanbaria
10147
16126
15038
Chandpur
8996
12852
10173
Munshiganj
7128
11587
8669
Noakhali
7630
10960
8253
Narsingdi
5908
9748
8188
Gazipur
5878
9431
7485
Narayanganj
5477
8818
6826
Feni
5436
8813
6343
Sylhet
6503
7637
4627
Manikganj
4854
7328
5766
Lakshmipur
4308
6390
5445
Mymensingh
4190
6272
6095
Kishoreganj
3874
6221
6474
Moulvibazar
4716
5947
4121
Faridpur
3377
4989
4366
Barisal
3096
4134
2995
Habiganj
2713
3661
2722
Shariatpur
2099
3579
2959
Madaripur
2346
3437
2704
Bogra
3827
3256
2901
Nawabganj
1787
3093
3341
Pabna
2179
2683
2044
Jessore
2935
2582
2327
Sunamganj
1954
2430
1393
Kushtia
1838
2134
1860
Jamalpur
1823
2107
1667
Jhenaidah
1734
2007
1304
Pirojpur
1499
1642
1303
Naogaon
1347
1569
1289
Cox's Bazar
1514
1505
1205
Bhola
1190
1489
1169
Sirajganj
1194
1404
955
Gopalganj
1093
1275
1039
147
2004
2005
Jhalakati
887
1236
01/01/06 to
31/08/06
820
Rajbari
1108
1222
1067
Meherpur
1029
1137
1364
Natore
1113
1122
858
Narail
852
1009
693
Satkhira
1178
997
717
Rajshahi
766
953
884
Magura
852
950
704
Chuadanga
834
936
576
Bagerhat
965
907
578
Gaibandha
809
899
799
Patuakhali
783
885
621
Khulna
1260
881
666
Barguna
730
856
607
Rangpur
703
779
528
Netrakona
456
659
518
Jaipurhat
492
546
415
Dinajpur
912
536
425
Sherpur
348
526
318
Kurigram
315
348
230
Nilphamari
145
228
270
Thakurgaon
277
204
174
Khagrachari
101
138
84
Lalmonirhat
101
122
75
Panchagarh
46
80
48
Rangamati
44
48
43
Bandarban
30
34
35
Total
203793
289842
235081
Source: Bureau of Manpower, Employment and Training
The following table suggests that the majority of Bangladeshis migrating overseas belong
to lower and middle income groups. Studies examining the poverty profile of short term
migrants abroad show that they lack land assets and are categorised as poor in the
majority. In many cases, the decision is taken at family level. Specially in those families
where some members are already working abroad and contributed significantly to overall
financial and social status of the family.
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Percentage of households
Up to 30,000
0.5
30,001-60,000
4.8
60.001-90,000
9.1
90,001-1,20,000
10.4
1,20,001-1,50,000
24.3
1,50,001-1,80,000
20.5
1,80,001-2,10,000
14.8
2,10,001-2,40,000
10.0
5.7
Total
100.0
Source: RPP 2005 Bangladesh Country Report
The following were identified as the key reasons for pursuing overseas job by
Bangladeshis:
Unemployment
Pressure from the family to go overseas and earn a good salary rather than
underutilizing the time and money in Bangladesh
In the urban areas, some of the migrant workers may leave the country for
political reasons
Low salary from existing job inspires a lot of migrant workers as there is scope
for higher income.
Supply of Human Resources in Bangladesh
Bangladesh is a country with an estimated population of close to 150 million. The size of
the labour force is estimated to be 57 per cent of the population with high unemployment
rate of 4.3 per cent of the population. Interestingly, the unemployment rate among the
educated labour force is much higher. Fore example, 7.8 per cent of those who have
passed SSC (10 Years of education), HSC (12 Years of education) or equivalent and 9.5
per cent of those who have passed Degree (14 Years of education) or above are
unemployed. For an understanding, a breakdown of the unemployed youth labour force is
given in the following table.
Table 7.6: Unemployed Youth labour (15-24 yrs) by Level of Education
Level of education
No education
Grade 1-5
Grade 6-10
SSC/HSC
Degree & above
Total
Source: 1999-2000 labour Force Survey BBS.
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It is estimated that by 2006 the size of the unemployed labour force below the age of 25
has crossed 15 million in Bangladesh. Besides a huge number of un-skilled and semiskilled labour force who are under employed provide a deep pool of exportable
manpower resources. However, the pool of skilled and professional manpower in
Bangladesh which has greater per capita remittance potential is very shallow, not even
adequate to meet the demand for the growing domestic industries. Some relevant
information on different types of manpower resources available in Bangladesh are given
below:
Technical Manpower
The mid-level technical and vocational training systems in the country produce a sizable
number of skilled workers and technicians. Mid level technical education is provided
after tenth year of schooling. Polytechnic sub-system offers 3 year's diploma courses in
engineering and technology. There are twenty one Polytechnic Institutes in the country
with annual intake capacity of 5268 students. Besides Polytechnics, there are a number of
agricultural and allied industrial, textile and leather technology institutes and commercial
institutes and other specialized polytechnic institutes offering diploma level course in
their respective fields.
There is an Islamic Institute of Technology (IIT, formerly Islamic Centre for Technical &
Vocational Training & Research, ICTVTR), a subsidiary organ of the Organization of the
Islamic Conference (OIC). The Centre has been mandated to provide technical training of
international standard needed for the industrial, economic and social development of
Muslim Ummah through offering of long regular courses in engineering and technologies
and trades and organizing short and special knowledge and skill updating courses along
with technological and industrial research and research in the field of human resources
development with particular emphasis on technical and vocational education. In IIT a
great variety of academic and training programs are offered starting from the lowest trade
Level to the highest Post Graduate Diploma and Master's Degree in Technical Education
encompassing Certificates and Diploma in Vocational Education, Diploma a B.Sc. in
Technical Education, Higher Diploma and B.Sc. Engineering Degree in Electrical and
Electronic and Mechanical Engineering with various specialization in different rare
technologist, such as Computer Science and Technology, Power System, CAD/CAM,
Energy, Production and instrumentation Engineering.
There are 51 Vocational Training Institutes (VTI's) and 13 Technical Training Centers
(TTC's) and one Bangladesh Institute of Marine Technology (BIMT) which cater to the
training needs for craftsmen in the basic trades. Diploma in Marine Technology is also
offered from BIMT. The Marine Academy at Juldia, Chittagong trains certificated
officers for merchant navy. These 13 TTC's and one BIMT produce annually about 7,000
highly skilled technicians on different trades, suitable for overseas employment. Tele
Communication Engineers and Technicians tradesmen skilled in basic engineering and
building trades like electricians, petrol/diesel mechanics, air conditioning mechanics,
radio/TV mechanics, fabricators, marine mechanist, moulders, tatters, plumbers, pipe
fitters, painters, steel fixtures, carpenters, masons, garments workers, draftsmen, etc.
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Testing facilities on different occupations are available in the modern Technical Training
Centers both in public and private sectors.
Medical Manpower
Bangladesh has facilities for imparting graduate and post-graduate medical education and
training in the country. Facilities exist in the country for producing 2500 medical
graduates and 200 dental surgeons every year. Facilities to train Blood Bank Technicians,
Radio Therapist, x-ray technicians, Radiographers, paramedical staffs, Dressers, Dental
Technicians, Health Assistant, Sanitary Inspectors, etc. also exist in the country.
Bangladesh has about 47000 paramedics and medical personnel available for
employment at home and abroad. There are also 38 Nursing Training Institutes which
offer 4 years Diploma course (including one year Midwifery). At present 8500 Diploma
and 800 Graduate nurses are trained every year.
Engineering Manpower
Engineering Institutes (2 University of Engineering & Technology,
Institute of Technology, 4 Engineering College and 1 Marine Academy)
1000 Graduate Engineers annually. In addition 21 Polytechnic Institutes
produce about 3000 Diploma Engineers annually. At Present about 1000
25000 Technicians are available for employment at home and abroad
4 Bangladesh
produce about
in the country
Engineers and
Industrial Manpower
The country's industries employ about 1.5 million workers of different categories.
Professional, managerial, administrative, technical, skilled, semi-skilled and unskilled
workers including experienced garments workers, both male and female with several
years of experience in different industrial fields are available for overseas employment.
Computer Personnel
Bangladesh has now a large number of Computer Operators, Computer Engineers (both
Hardware and Software), Programmers, Web Page Developer, Networking Specialist,
System Analyst, etc. available for domestic and overseas employment.
Road Transport Workers
Professional, technical and skilled personnel experienced in operation, repair and
maintenance of all categories of vehicles including trucks and heavy vehicle equipment's
are available for employment.
Manpower for Financial Institutions, Insurance, Audit and Accounts
Bangladesh has a network of commercial Bank and Financial Institutions covering even
the remotest areas of the country. Normally University Graduates are recruited for
supervisory and managerial positions in the banking institutions and go through a scheme
of special training for bankers. In addition, the Bangladesh Institute of Bank Management
provides higher training of international standard to in-service banking personnel.
Similarly, Chartered Accountants Cost Management Accounts, Actuaries, and persons
with long experience in Insurance business, Government and Commercial Audit and
Accounting are available in the country.
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Bangladeshi workers are loyal, disciplined, and hardworking and have the rare
quality of adaptability to new situation
Kinship ties play a positive role in financing the cost of migration in Bangladesh
Bangladeshi emigrant labours are predominantly youth and young adults and are
willing to work for longer hours
Being cheap labour, Bangladeshis find easy acceptance
The propensity to save is more for Bangladeshi migrants
They are respected for their valour and resilience
They are creative and keen learners
Weaknesses:
In Bangladesh, the majority of migrant workers are low-skilled and less educated.
Its emigrant population is often devoid of the free flow of information and access
to simple information technology, which could have saved them from harassment,
exploitation and loss of money.
Bangladeshi migrants are frequent victims of human rights violation in terms of
living and working condition
Women in particular are subject to blatant gender discrimination
They often receive lower wages than stipulated in the contract.
Bangladeshi migrants are prone to money-related problems, including debts in the
process of emigration and misuse of income on gambling and women.
Bangladeshi migrants are prone to health problems, including actual hygiene, lack
of proper diet, deaths from and fear of nocturnal death syndrome, mental stress
and strain, and homesickness.
Many Bangladeshi workers face problems related to verbal communication and
socio-cultural adaptation, including lack of language skills leading to limited
chance of being promoted, and to being isolated from and feared by other ethnic
groups
As is evident from the Chapter V, there are a large number of occupational areas where
huge global demand exists. However, Bangladesh can not address global demand in all
occupational categories due to supply constraints. Keeping in mind the domestic
requirements, Bangladesh needs accord maximum priority to those occupations for
export where it has surplus labour. For instance in the health services, Bangladesh has
acute shortage of medical doctors, dentists, nurses and health technicians, especially in
the rural areas. Moreover, movement of a large number of teaching professionals can also
negatively affect the ongoing efforts to raise the education level in the country. However,
given that there are huge export opportunities in these occupation areas it should not
completely rule out export of health sector professionals and teachers in the medium and
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long run. The same is the case with the IT industry. Engineers and technologists are
though not surplus in Bangladesh but their controlled export to advanced countries can be
of use to help transfer high-tech knowledge into the country as they, on return, would
certainly be equipped with advanced knowledge and experience in their respective fields.
In fact, a more strategic approach towards these occupations is needed as export of
manpower with these occupations would not only benefit Bangladesh in terms of
remittances but also help develop a brand Bangladesh as a power house of knowledge
workers.
In the short and medium term Bangladesh should target occupations such as agriculture
professionals; agriculture workers; clerical and secretarial occupations; bookkeeping
professionals; technical skill holders; plant and machine operators; construction workers;
chefs and caterers; security professionals; craft makers; accountants, technicians, drivers,
carpenters, masons, mechanics, electricians and drivers. Bangladesh should build
specialized high quality institutes to develop health care professionals, managers and
administrators; lawyers; business and financial professionals; business and financial
associate professionals so that the country is in a position to export them in the long run.
It is also important to explore sectors/occupations where women workers can be safely
exported. Some of the sectors in a number of OECD countries where women workers can
migrate safely are: packing, dress designing, textile related occupations, food processing,
garments, reception and secretarial occupations, artistic works, beauticians, bookkeeping,
banking, etc.
Development of Human Resource in Bangladesh
The structure of the formal education system in Bangladesh mainly consists of primary,
secondary, higher secondary and college/university education. At present, the mainstream
education system in Bangladesh is structured as follows:
One or two year pre-primary education imparted in private schools/kindergartens, and
informally in government primary schools for six months. Five-year compulsory primary
education for the 6-10 year age group is imparted mainly in government and nongovernment primary schools. In metropolitan cities, however, government and nongovernment primary schools cater to the educational needs only of the poorer sections of
the people, as the better-off families usually send their children to Private English
Medium schools/ secondary schools that run primary sections as well. There, however,
exists a substantial number of NGO run non-formal schools catering mainly for the dropouts of the government and non-government primary schools. Very few NGOs however
impart education for the full 5-year primary education cycle. Because of that, on
completion of their 2-3 year non-formal primary education in NGO run schools, students
normally re-enter into government/non-government primary schools at higher classes.
NGO run schools differ from other non-government private schools. While the private
schools operate like private enterprises often guided by commercial interests, NGO
schools operate mainly in areas not served either by the government or private schools
essentially to meet the educational needs of vulnerable groups in the society. They
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usually follow an informal approach to suit the special needs of children from the
vulnerable groups.
On completion of primary education, students (11+) enrol for junior secondary education
that spans over 3 years. At the end of this phase of education, some students branch out to
join the vocational stream, offered at Vocational Training Institutes (VTI) and Technical
Training Centres (TTC) run by the Ministry of Education, and the Ministry of labour and
Employment respectively. While, students in the mainstream continue in government and
non-government secondary schools for a 2-year secondary education in their respective
areas of specialization, i.e. humanities, science, commerce, etc. At the end of their
secondary education, the students sit for their first public examination (S.S.C.) under the
supervision of six education boards.
The students of religious education and English medium streams also sit for their
respective public examinations, Dakhil and 'O' level, conducted by the Madrasah
Education Board, and London/Cambridge University respectively, facilitated by the
British Council in case of the latter.
After 10 years of schooling at primary and secondary level, students (16+) who succeed
in passing the Secondary School Certificate (S.S.C.) examination have the option of
joining a college for a 2-year higher secondary education in their respective areas of
specialization, or enrol in technical/ poly technical institutes for technical education.
After 2-year higher secondary education, one has to sit for another public examination
called Higher Secondary Certificate (H.S.C.) Examination conducted by the Education
Boards to qualify for further education. Students of Religious and English Medium
streams also sit for their respective public examinations, Alim and 'A' level, conducted by
the Madrasah Education Board and London/Cambridge University respectively to qualify
for further education.
Under-graduate education of various durations (2 to 4 years) is offered to 18+ students at
a number of public and private universities/degree colleges/technical colleges/specialized
institutions. Post-graduate education normally of 1-2 year duration is provided at
universities and selected degree colleges and institutions.
The enrolment capacity in the primary schools is 16 million children and in the secondary
schools is 5 million. The primary enrolment ratio is 63 and that of secondary and tertiary
are meagre 17 and 4 respectively. There are about 2300 vocation/technical training
institutes in Bangladesh. Though these institutes are admitting more than 188,000
students, but not even half of the students complete their courses. Besides, a sizable
portion of the successful students are not placed in the local market. The technical
vocational education and training (TVET) policy guidelines and implementation
strategies are decided by the National Council for Skill Development and Training
(NCSDT) and the Bangladesh Technical Education Board (BTEB). The TVET is
provided at the secondary level. For the largest number of non-formal trade courses the
TVET starts after eight years of schooling and for few selected trades, after secondary
level. The TVET programmes run by the Government agencies, NGOs, and private
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institutions are non-standard and non-formal except the Vocational Training Institutes of
the Ministry of Education (MOE) and Technical Training Centres of the Ministry of
labour and Manpower (MOLM).
The Bangladesh Technical Education Board is responsible for developing the curriculum
of the vocational training programme as per the NSS set by the NCSDT. The curricula for
the NSS grade II, III and basic level for different trades have been developed. The
duration for the NSS basic trade training is 360 hours and its entry requirement is open
and decided as per the requirement of trade. The duration of training for the NSS III and I
is nine months of institutional training three months industrial attachment for each grade.
The entry requirement for NSS III is eight years of schooling for most trades and 10 years
of schooling for a few selected trades. The entry requirement for NSS II is NSS III. The
NSS grade I and Masters are yet to be developed by the NCSDT. The skill testing is done
by the Bangladesh Technical Education Board for the regular trainees of the BTEB
affiliated and approved training institutions. The affiliated institutions follow the BTEB
curriculum and regulation for the implementation of the training programme. The
approved training institutions follow their own regulations and curricula that cover the
BTEB requirement. The employed skilled workers can be the NSST conducted by the
BTEB in the designated centres. The employed skilled workers are required to qualify in
the pre-test before sitting for NSST. The VTIs and TTCs are the BTEB affiliated
vocational training institutions following curriculum designed as per the NSST. The
trainees of these institutions are taking NSST.
Although there are a number of approved NGO institutions following their own
regulations and curricula, their trainees need to take NSST. The total number of seats for
NSS III and II in the VTIs and TTCs is over 10,500. The capacity of the approved NGO
institutions for NSS III and II is about 600 only. The UCEP trade training programmes of
the three trade schools have been affiliated by the BTEB for 13 trade courses of NSS
level III from 1994. The curricula of the UCEP have been adjusted to conform to the NSS
requirements specified by the BTEB and the training programme is implemented as per
the BTEB regulation. The NGO institutions like TTC of Swedish Free Mission and of the
Rabitat-Al-Alam A1-Islami are affiliated with the BTEB. The combined capacity of VTI,
TTC, UCEP and the NGO institutions for NSS III and II are about 11,500 seats.
There are a large number of private trade training schools run by individuals and trust
initiatives. The main motive of the private trade schools is commerce and profit. The
growth of private trade schools in the country is primarily hinged to the large scale export
of skilled and unskilled manpower to the Middle East and other countries. These types of
private trade schools offer non-formal and non-standard training of short duration. It is
very difficult to get the exact number of private trade schools and the type and quality of
training they offer. They are not registered or affiliated with any training agencies. They
prepare their own syllabuses and arrange for testing and certification. They do not in
most cases have qualified teachers and proper training facilities. Their certifications are
in most case not recognized outside Bangladesh.
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Along with the students enrolled in technical institutions, there is a surplus of 12th grade
students who could not pursue their education further. For example, there is an annual
supply of approximately 300,000 HSC students every year and in 2006, 275,000 students
appeared in different graduate level (14 or 16 years of education) examinations. Only 31
per cent, i.e., around 85,000 could pass these examinations. Thus, there is a large pool of
unsuccessful students who have passed the HSC examination but could not complete
their higher education. It is observed that a large section of these unsuccessful students
pursue their career abroad.
As reported in various reports on Bangladesh, the current vocational and technical
education system is deficient in a number of respects. Some shortcomings of training
programmes are:
Technical and vocational education is limited and is viewed as an option for only those
students who are not bright enough to go to the university: This view is deeply rooted in
the society. Consequently, for those who are enrolled in technical schools, motivation is
low and the drop out rate is high. This perception would be changing if more and more
skilled people get jobs abroad at a much higher salary.
Deficiencies in quality of training: The technical and vocational education system in
Bangladesh suffers from serious deficiencies in training equipment, facilities and
instructional materials. As a result, the quality of the students from these programmes has
not been matching the international standard.
Lack of adequate high level training: A majority of training programmes in Bangladesh
are designed towards entry level jobs. The capacity to provide high level training despite
demand for workers with technical and professional skills is grossly inadequate even for
the domestic demand.
Lack of adequately trained teachers: One of the problems with the current vocational
and training system is the lack of trained teachers. Currently, most vocational and
technical education teachers lack practical, on the job experience. Furthermore, they are
not trained in the provision of technical and vocational education. Also, vocational and
technical school teachers neither receive good salaries nor enjoy the prestige associated
with school college and university teachers. As a result, the low quality of teachers results
in the provision of low quality education.
Lack of information on skills in demand in the labour market: Currently, there is no
adequate information available on the skills that are needed in the labour market.
Therefore, training provided is often not geared towards meeting skills deficiencies in the
labour market.
Poor linkage between training and skills needs: One of the major problems with the
current vocational education and training system is the poor linkage of these programmes
with employers in both Bangladesh as well as foreign markets. Employers have not been
adequately brought into the training process to determine what their needs are, and how
vocational education and training programmes can be organized to meet those needs.
Inadequate monitoring and evaluation of training programmes: Currently, there is no
regular mechanism to monitor and evaluate the impact of the vocational education and
training programmes that are being offered. As a result, there is no objective way of
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assessing which of the training programmes being offered are effective and which are
not. The real impact of these programmes can only be properly assessed through a tracer
study of their graduates.
The Way Forward
The flow of remittances is influenced by the stock of Bangladeshi migrant population, the
size of demand for Bangladeshi migrant workers in overseas markets, competition from
migrants from other countries, labour nationalization laws and economic recession in host
countries, and job credential issues that downgrade migrant wages. The overseas
employment market is a highly imperfect but competitive market, a phenomenon which
gives rise to the evils of malpractices by intermediaries, low wages, poor working and
living conditions, ill treatment and exploitation of workers. The following categories of
skilled and semi-skilled workers will come in for the highest demand: electricians,
plumbers, carpenters, drivers, welders, fitters, machine operators, general workers and
housemaids. Bangladesh has been facing and will continue to face competition from
countries like India, Nepal, Pakistan, Sri Lanka, Indonesia and the Philippines.
How does Bangladesh develop and sustain competitive advantage in the manpower
export? The rich heritage of research on competitiveness has identified innumerable
factors that influence global competitiveness of industries. Macroeconomic factors such
as fiscal and monetary policies of the government, exchange rates, interest rates, fiscal
and budget deficits, long run productivity growth, higher saving and investment rates,
government's emphasis on quantity and quality of education and investment in public
infrastructure, geopolitical situation of the subject nations, performance of the national
and global economies and the economic agenda of trade blocks will have influence on
global competitiveness of manpower industry from Bangladesh. Industry level factors
such as characteristics and dynamics of the industry in domestic and world markets,
industrial policies and regulations, size and quality of home demand, factor conditions,
and nature of competition among the manpower recruitment agencies, training and
placement companies will also shape the competitiveness of the industry. Moreover,
cooperation among firms at the national level is found to be an effective means to achieve
global competitiveness. It is the overseas recruitment companies that actually do
business, compete in the international market, bring jobs and export manpower. Hence,
the role of these companies also becomes highly critical in searching for the new markets,
establishing business offices in those markets, contacting the local recruiting agents,
staffing companies and prospective employers and servicing them consistently to their
satisfaction. In this way only, Bangladesh will be able to develop and sustain global
competitiveness in manpower export beating the other competing countries.
However, to improve their working and living conditions abroad, it is important for these
Bangladeshi workers to upgrade their skills. It will not only help them get better jobs but
also boost countrys image as a quality human resource supplier. Pre-departure
orientation also plays an important role. Increasing globalisation and ageing population in
most of the OECD countries would accelerate opportunities for migration of people from
labour surplus countries such as Bangladesh to these countries for employment. By the
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year 2020, these developed countries would have majority of their population over 50
years. It is therefore incumbent that Bangladesh takes immediate steps for preparing its
young workforce to take up the challenges of future needs in the overseas employment
market. It is often found that Bangladeshi workers, due to lack of knowledge about the
emigration procedures and about laws, language and culture of the destination country,
get into all kinds of difficulties, including financial and physical exploitation.
Achieving greater penetration of the global labour market and moving up the value chain
in terms of proficiency level for Bangladesh is going to be no easy task. A few key issues
could prove to be stumbling blocks if not systematically addressed. First, the number of
skilled people and the skills and quality of the exportable people need to be improved,
since only a few thousand technical and professional graduates passing out with relevant
skill sets for the global economy, only 10-20 per cent of the certified people from over
2300 vocational training institutes and less than 10 per cent of general college graduates
are exportable. If Bangladesh has to penetrate the more lucrative markets in terms of
salary and remittances potential it must improve the quality and skills of its workforce.
Language skills also become a major deterrent of manpower export to many of the
European and more developed Asian countries such as France, Germany, Sweden,
Russia, Japan, Italy, South Korea and Spain.
Second, as margins come under pressure in the traditional markets, the overseas
manpower companies must be able to add to their international marketing infrastructure
and skills to explore new markets, establish contacts with staffing companies in the
respective host market and even to deal with the employers directly in addition to
exporting diversified portfolio of skills and more skilled people. Third, massive
upgrdation and scaling up of training infrastructure and curricula need immediate
attention, as prospective employers globally would look for globally recognized
certification. And lastly, as the export of manpower gathers momentum for high skilled
workers Bangladesh will also confront a potential shortage of skilled workers within the
country in the next few years, particularly in the high growth industries like garment,
telecommunication, IT, construction and health care.
It is to be seen that some countries China and India have used effectively their huge
population as a source of competitive advantage through sustained investment in human
resource development and allowing the emergence of a growing and sizable middle class.
Both these countries have invested in developing local industries based on human
resources which were developed by providing reasonable quality education and training
initiatives. These developments were supported by successive governments; it is this
quantity and quality of human resources which have given these countries a competitive
advantage. Bangladesh could respond to these issues by upgrading the quality of
preparatory education augmented by special skills training, identifying new labour
markets, and negotiation with host governments for the proper accreditation of workers
academic and work experience.
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The flow of remittances is influenced by the stock of the migrant population, the nature
and size of demand for the Bangladeshi migrant workers in the overseas markets, the
breadth and depth of manpower supply pool of Bangladesh, competition from the
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migrants from other countries, national labour laws and economic condition and income
potential in the host countries, job credential issues that downgrade migrant wages, the
migrants propensity to remit, and the efficiency of the remitting channels as depicted in
the following diagram. Bangladesh could respond to these issues by augmenting the
capacity of specialised training at the secondary and tertiary level, upgrading the quality
of its preparatory education augmented by special skills training and certification, proper
accreditation of workers academic and work experience, identifying new labour markets,
negotiating with the host governments for long term supply contracts, professionalizing
the manpower export industry, and improving the infrastructure and the efficiency of the
official remittances channels.
Characteristics of the migrants
Characteristics of the
migrants
Number of
migrants
Available pool of
resources
Propensity to
remit
Amount of
remittances
Remitting mechanisms of
the country of origin
In line with the above discussion a seven-pronged strategy is proposed for achieving US
$ 30 billion annual migrant remittances by 2015 as depicted in the Figure 8.2.
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US$ 8
billion
ll
Greater penetration
in destination countries
2006
US$ 30
billion
2015
Augmenting capacity
of labour supply
Building Brand
Bangladesh
It is evident that the export of manpower from Bangladesh is concentrated in only few
countries dominated by the Middle East. Bangladesh needs to progressively change this
country mix as depicted in Figure 8.3 to achieve and a sustained high export growth over
a long period of time.
100%
15
90%
21
80%
70%
11
12
60%
50%
13
OECD Countries
Middle East Market
Emerging Markets
40%
30%
20%
10%
12
17
0%
2006
2015
2020
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Based on more fine-grained analyses we have mapped the future target markets for
export of human resources from Bangladesh in the Figure 8.4 and 8.5. The potential of a
country has been arrived at by calculating the difference between the current remittance
outflow and the forecasted remittance outflow in 2015. The destination countries where
the Bangladeshs presence is negligible or absent are indicated in capital letters.
Low
High
High
United States
Stars
Bright Sparks
Spain
C
O
U
N
T
R
Y
P
O
T
E
N
T
I
A
L
Saudi
France
Austria
Malaysia
ISRAEL
Korea
AUSTRALIA
Britain
Kuwait
Japan
Canada
Netherlands
Bahrain
Oman
KAZAKHASTAN
BELGIUM
Jordan
Norway
SWITZERLAND
Italy
FINLAND
New Zealand
HONG KONG
Ireland
LUXEMBOURG
Singapore
Mauritius
Maldives
United Arab Emirates
PERU
CYPRUS
Qatar
Lebanon
Low
Laos
Libya
Setting Suns
Brunei
Cash Cows
PRESENCE OF BANGLADESH
Figure 8.4: Market Potential Matrix
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The definition for each of the quadrants and strategy to be followed is given below:
A. Setting Suns These are countries with low future remittance potential and low
presence of Bangladeshi migrants. It is not advisable to give much emphasis on these
countries. The focus should be only on those countries which are in the mid potential
range and are either not targeted currently or have an insignificant presence viz.
Luxembourg, Hong Kong, Switzerland, Finland, Norway, New Zealand, etc. on
selected occupations.
B. Stars These are countries with high remittance potential and high presence of
Bangladeshi migrants. Bangladesh has to consolidate its position by increasing the
market penetration and garner greater share of migrant workers in these countries. It
has to explore untapped or untargeted occupational areas within these countries, and
also export number of workers in the current occupational areas.
C. Bright Sparks These are countries with high remittance potential but low presence
of Bangladeshi migrants. Bangladesh has to target these countries on a priority basis
and start exporting migrant workers. It has to establish its presence in these countries
thereby change them to Stars. This will benefit Bangladesh greatly.
D. Cash Cows These are countries with declining remittance potential, but with
significant presence of Bangladeshi migrants. Bangladesh needs to hold on to,
consolidate its position in these countries, and at the same time reduce its dependence
on these markets.
United States
Saudi Arabia
Malaysia
Kuwait
Bahrain
Canada
Oman
United Kingdom
Germany
Jordan
Denmark
Singapore
United Arab Emirates
Qatar
Italy
New Zealand
Ireland
Mauritius
Maldives
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Strategy 2: Increase Penetration and Capture Greater Share of the Labour Market
in Destination Countries
Bangladesh receives most of its remittances from the Middle East, the USA and the UK.
The top five countries contribute 86 per cent of the total remittances.
The Figure 8.6 shows that the export of migrant workers from Bangladesh is limited to
only a few countries among the most attractive destinations. In fact, it does not export
manpower to most countries. It is also evident from the above figure that among the top
remitting countries it is only in the UK, the US and a few Middle Eastern countries like
Saudi Arabia, Kuwait, Bahrain and Oman that Bangladesh has a reasonable share of the
total remittances. Even in these countries there is a substantial scope for further
penetration. The presence of Bangladeshis in other remitting countries is not very
significant. The demand for labour in all these markets is significantly large and would
grow in the future. Therefore, a concerted effort has to be made to increase its share and
credibility in these markets by leveraging its already established base.
Strategy 3: Change the Mix of Skills - Moving Up the Skill Ladder
165
quite small. Bangladesh needs to change this skill mix over a period of time not only to
improve the per capita remittances but also to improve its brand image and acceptability
in the OECD countries.
Change in Skill composition
100%
90%
80%
70%
60%
Professional
High Skilled
SemiSkilled/Skilled
Unskilled
50%
40%
30%
20%
10%
0%
2006
2015
2020
To progressively change the skill mix and enhance the supply of quality manpower
Bangladesh has to implement the following three strategies:
1. Send as many Bangladeshi students as possible to various vocational, technical
and professional schools abroad.
2. Encourage and facilitate already migrated Bangladeshis to seek admission in
foreign training schools / colleges / universities for acquiring new skills.
3. Set up internationally accredited training facilities in Bangladesh, and train
manpower locally before exporting to host countries.
The governments of the United States and the United Kingdom have adopted the policy
of allowing the international students in their respective universities to stay on and work
after completion of their degree. This way they have been able to sustain the expensive
higher education and also meet the short term labour shortage. The growing competition
to attract South Asian students by the countries like the US, the UK, Canada, Australia,
New Zealand, Ireland, and non-English speaking ones like France, Germany, and the
Netherlands have made even Ivy League institutions in these countries to come to South
Asia, particularly to India to recruit the best students. Bangladesh government should also
encourage these foreign universities to recruit students from Bangladesh and set up
facilities in Bangladesh. It should also facilitate the availability of bank loans to
prospective students for studying abroad.
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Austria
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Medium Term
Dentist
Designers
Teacher
Manager
Long Term
Architect
ICT Professional
Accountant
Acupuncturist
Scientist/Physicist
Mariners
Pilot/Instructor
Counsellors
Veterinarian/Zoologist
Urban Planner
Journalists/Media
Professionals
Doctors
Technical Sales
167
Medium Term
Long Term
Belgium
Engineer
Drivers
Waiters/waitresses/Barmen
Housekeepers
Personal care workers
Labours
Gardeners
Cook
Clerks
Carpenters
Nurses
Manager
Teacher
Dentist
Canada
Construction workers
Agricultural worker
Mechanics
Machinist
Welder
Tool & Die Maker
Carpenter
Fitter
Fabricator
Metal workers
Housekeepers
Personal care workers
Barbers/Hairdressers
Cooks
Protective service workers
Sales
Social workers
Nurse
Pharmacist
Engineers
Dentist
Accountant
France
Engineers
Personal care workers
Housekeepers
Electrician
Insurance reps
Nurses
Manager
Technical Sales
Accountants
Hong Kong
Engineer
Technician
Cook
Tailors
Domestic workers
Waiters/Waitresses
Cleaners
Japan
Sales
Technician
Finland
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IT Staff (primarily
programmers/developers)
Designers
Quality Controllers
Purchaser
Construction tradesperson
Nurses
ICT Professionals
Tech Sales
Construction project
managers
Veterinarian
Doctors
Management/Executives
Accountants
Project Managers
Engineers
Language Teachers
Accountant
ICT professionals
168
Construction workers
Dentist
Cleaners
Teacher
Helpers
Housekeepers
Waiters/waitresses/Bartenders
Hand/pedal drivers
Agricultural labours
Personal care workers
Manufacturing labours
Plumbers
Printing press workers
Welders
Electrician
Bricklayers/Stonemason
Electronic equipment
operator
Embroiderers/Tailors
Travel attendants/stewards
Cooks
Machine operators
Construction tradesperson
Sales
Assemblers
Engineers
Teacher
Pilots
Architects
Veterinarian
Accountant
Economist
ICT professionals
Tech Sales
Doctors
Oman
Helpers
Construction workers
Welder
Carpenter
Cook
Plumber
Mechanic
Fitter
Clerk
Machine Operators
Fitter
Electricians
Medical Assistants/Orderlies
Barber
Tailors
Supervisors
Chef
Technician
Sales
Managers
Engineers
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Korea
Entertainers
IT professionals
Researchers
Language Teachers
Malaysia
Domestic Workers
Quality Controllers
Construction
Tradesperson
IT professionals
Agricultural labours
Manager
Supervisor
Technician
Sales
Machine Operators
Trade/craft workers
Assemblers
Netherlands
New
Zealand
Norway
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Medium Term
Long Term
Helpers
Secretaries
Agricultural labours
Cleaners
Waiters/waitresses/Bartenders
Sales
Carpenters
Machine operator
Protective service workers
Drivers
Tech Sales
Teachers
Pharmacist
Mechanic
Baker
Bricklayer
Butcher
Electrician
Chef
Manager
University Lecturer
ICT professionals
Accountants/Finance
Professionals
Architect
Veterinarian
Doctors
Drivers
Insulation workers
Barbers/Hairdressers
Bricklayers/Stonemasons
Sales
Plumbers
Helpers
Hand Launderers
Waiters/waitresses/Bartenders
Personal care workers
ICT professionals
170
Medium Term
Spain
Housekeepers
Waiters/waitresses/Bartenders
Agricultural labours
Construction labours
Handlers/Helpers
Cleaners
Personal care workers
Welders
Cooks
Electrician
Bricklayers/Stonemason
Carpenters
Sales
Switzerland
Plumbers
Managers
Painters
Electrical mechanics
Cooks
Bricklayers/Stonemason
Carpenters
Clerks
Sales
Manufacturing Labours
Housekeepers
Cleaners
Waiters/waitresses/Bartenders
ICT professionals
UK
ICT Professionals
Tech Sales
Doctors
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Steno/Typist
Cahier
machine operators
Gardeners
Long Term
Teacher
Social workers
Nurse
Tech Sales
Doctors
171
The overseas recruitment process of the migrant labour from Bangladesh is quite
cumbersome and mostly done by licensed recruiting agents or individuals. The registered
agents licensed by the government collect information on demands and orders for foreign
employment on their own initiative. The labour wings of overseas missions are required
to examine the authenticity of the demand notes issued by the foreign
employers/agencies. After taking permission from the BMET, the agencies recruit
workers as per specifications of the foreign employers and then process their cases for
employment.
Key
Stakeholders
Migrant
Worker
Steps of
migration
Interaction and
activities
Remarks
Unemployed
Student
Underemployed
Aspiration
Counseling from:
Dalal / Agent
Relatives
Advertisement
Recruiting
Media
Recruiting Agents
Individuals
BOESL
Finance
Financing through
Informal Loans
Savings
Sell of assets
Bank loans
Institutions
Immigration
authority
BMET
DMO
Passport
Office
Preparation
Prepare through
Medical checkup
Training
Briefing
Registration
Passport
The worker prepares
himself for migration by
performing the different
activities at different
institutions.
Departure
VISA
Air Ticket
The agencies depend on their own sub-agents for recruitment. They also sometimes
advertise in the newspaper for recruitment of workers. On receiving application, they go
through the process of selection, testing, medical and contract of employment in line with
the work order. Each of the recruits needs a clearance certificate from BMET. The
recruitment agent organizes the visa, travel documentation, air ticket and placement of
workers in the receiving country against fees which are sometime shared between the
worker and employer or borne by the employer or the worker depending upon the
demand situation and competition among the supplying countries. The concerned
department of the government has specified the level of fees that can be charged by an
agent for different services and there are specified punitive provisions for violation.
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The individual operators are also engaged in the recruitment process, collectively
accounting for over 50 per cent of the migrant worker recruitment. Individuals secure
visas through friends and relations deployed in the host country through their own
contacts. Every employed person overseas tries to make provision for other family
members, then for relations to be followed by friends. Sometimes such visas may also be
sold to interested parties. In any case, the travel formalities including issue of passport,
visa stamp, air ticket and BMET clearance which are completed by travel agents against a
small fee. These used to be the prevailing practice upto 1998, when the government
restricted recruitment to licensed recruitment agents only. But in reality the practice
continues in connivance with licensed recruitment agents who are willing to share their
stamp of approval against a fee. The Figure above depicts the flow diagram of the current
migration process of a typical Bangladeshi migrant worker.
A known industry expert Mr. Abdul Alim has clearly enumerated some of the problems
plaguing the current recruitment process, particularly for the Middle East8. This view
was corroborated by a number of recruiting agents from India, Bangladesh, Sri Lanka and
Nepal during our interactions with them. Alim observes:
The most formidable problem manpower sector faces today is extremely unhealthy
and unethical competition among recruiting agents. About 99 per cent recruiting
agents do their marketing in the Middle East, especially Saudi Arabia, through
Bangladeshi worker-turned-subagents/middlemen. These middlemen procure
manpower demand, rather negotiate/quote very high price for visa to employers or
employers agents. They pay in cash for such visa either to employer or his agent. In
the past, the scenario was the other way round. It was the employer who used to pay
service charges to the recruiting agents for locating and sending workers. In some
cases, they used to pay for passage/air ticket too. The scenario is not reversed only for
Bangladesh but also for other labour exporting countries. Self-employed sub-agents
procure and sell demands to recruiting agents in Bangladesh. The visa documents
change hands once the sub-agent receives money from recruiting agents through
Hundi. The crux of the problem is that such middlemen operating in Middle East are
too many. The recruiting agents virtually face no problem in selling visa at whatever
price they ask. On the other end, the middlemen operating there do not face any
problem too, as many eager Principals are awaiting back home to take the demand at
any cost. Currently purchasing cost of visa of salary range SR 300 to 400 (equivalent
to Tk. 4,500 to 6,000) has gone up to SR 6,000 to 6,500 (equivalent to Tk. 90,000 to
97,500). Add to this the cost of air-ticket and other incidentals plus a profit of, say Tk.
7 to 10 thousands, and the ultimate price paid by the worker is pushed to Tk. 130
thousand to 140 thousand. One important fact is that actual profit of recruiting agent
remains within the range of Tk. 7,000 to 10,000, the same profit he used to get in the
eighties when the cost of the visa was one-fifth of todays.
Alim further adds, In fact price enhancement by competition is immensely benefiting
the employer or his agent. Nowadays, many Saudi contractors take into consideration
expected revenue from sale of visa while quoting for government contracts. Disregard
8 Mr. Abdul Alim, Daily Stars, various issues.
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of ethical business norms and cutthroat competition among sub-agents are all
pervading. This has earned a bad name for the trade. The workers become desperate
when he finds that his expectations are not matching the cost he paid. Such disgruntled
workers create problems for the host country. In addition to job-hopping he creates
social problems. The situation is alarming! Malaysia stopped issuance of visa on
Bangladesh primarily for this reason. No sooner a new market is opened it is spoiled
by competition among recruiting agents or rather the worker-turned-middlemen, vying
with each other to procure business at any cost. The scenario is same in Korea, though
very limited number of renowned agents is allowed to operate there and presumably in
an orderly manner. But the price an expatriate is paying to go there is no less than Tk.
300 thousand! The other dark side of the problem is sliding salary scale. Our agents
are compromising lower and lower salary for workers and offering higher and higher
price for visa. Bangladesh happens to be the supplier of the cheapest labour force in
the world with the irony that we are the champions in bidding highest price for the
visa, be it for skilled or unskilled workers. Inexplicably, the situation is not the same
with other labour exporting countries of the sub-continent. A Nepali recruiting agent
never pays more than SR 1200 (Saudi Riyal twelve hundred) for a worker to a Saudi
employer/agent. A Pakistani never exceeds SR 2000 and an Indian remains well
within SR 3000.
Alim suggests that the solution lies in making the role of middlemen redundant.
According to him, One of the systems that can be implemented is to control it by a
computer databank. In addition to providing access of recruiting agents to instant
information on availability of skilled and un-skilled workers, the databank can be so
designed as to control visa purchasing by controlling selling price of visa to the
workers. Recruiting agents will be compelled to recruit only from the listed candidates
in the databank. For example, rules can be formulated on salary slabs. Say, for a salary
range of SR 350 to 400 per month, the visa purchasing cost must not exceed SR 2000.
In that case, after assessing the total cost involved and allowing a profit margin for the
agent, selling price of the visa can be fixed at, say Tk. 65,000. Likewise, higher the
salary, higher can be the purchasing price. The controlling compulsions for the agent
will be: (a) that he has to recruit only from the listed workers in the databank; (b) that
he will get his payments at stages from Payment Cell of the databank. Once the
recruiting agent is confirmed that he can sell visa only through databank and at a price
fixed by a system, he will never purchase visa at higher cost. This is only a broad
outline. Lot of discussion, debate, general meetings of recruiting agents and seminars
with all concerned must be held before we can arrive at a consensus mechanism. There
is no point in enriching the employer by offering higher and higher price for the visa.
If we can implement databank to control pricing of manpower export, it will remove
a cancer of the trade. Transparency will prevail. There will be no disgruntled worker,
and people can go abroad at reasonable and viable cost. Unhealthy competition among
recruiting agents will minimize. We forget one basic fact that foreign employers need
workers as badly as we need to send them. So, there will be no effect on volume of
manpower export due to reduced purchasing price. Touts and middlemen will be
eliminated. Every recruiting agent will agree that the main beneficiary of all his
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enterprise is the foreign employer. He not only gets the cheapest labour in the world
but also earns huge money just by doing the favour of employing a poor man.
Improving the labour migration management process: It is obvious from the above
account that at its current form the process of recruitment of labour force from
Bangladesh for overseas jobs is quite cumbersome, messy and highly risky. The report
has proposed a more organized and transparent migration management process that
includes the prospective migrant workers, overseas recruitment agencies, prospective
employers, the Ministry of Manpower Development and Social Welfare, BMET, the
Bangladeshi consulates and the host country regulatory bodies, BAIRA, and the Overseas
Bangladeshi Community Group (OBCG). It also suggests creation and extensive use of a
Central Data Bank to make the process more organized and thereby reduce the system
risk. Making the process more organized and transparent is vital to attract banks and
other funding agencies to invest capital. The insurance companies also need to enter this
industry in a big way.
BANKS, MFIS
GENERAL
POPULATION
(A)
T1
MANPOWER POOL
FOR ADMISSIONS
TO
OCCUPATIONAL
TRAINING
(B)
Educational Institutions
T2
NGOS
T3
PEOPLE
REGISTERED IN
DATA BANK FOR
FOREIGN JOBS
(D)
(H)
BANKS
T7
REMITTANCE
RECIPIENTS
FAMILY MEMBERS
OF MIGRANTS &
RETURNEES
(G)
(C)
USAGE OF
REMITTANCE IN
LOCAL COMMUNITY
NGOs,
BANKS, MFIS
CERTIFIED
PROFESSIONALS,
SKILLED &
SEMISKILLED
MANPOWER POOL
T6
POOL OF
BANGLADESHI
MIGRANT WORKERS
& DIASPORA
(F)
BANKS, MFIS,
NGOS
T5
OBCG, BNG
MISSION
T4
INSURAANCE COS
BANGLADESHI
MIGRANT
WORKERS
GOING ABROAD
(E)
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We propose a modified migration management process that would not only reduce the
system wide risk, but also have better information flow vital for the bankers and the
insurers to invest in this sector. The process diagram as shown in Figure 8.7 also outlines
the role of the different non-government stakeholders in entire migration management
process in Bangladesh.
The actual migration process would start at T3 when a prospective Bangladeshi migrant
worker intent to seek a job overseas would register at a Central Data Bank providing all
the specified information. He would then submit a filled out application form at one of
the overseas recruitment agencies. The agency would then undertake to check with the
government agencies regarding the appropriateness of the candidates migration. The
agency would also compare the migrants qualifications across its database of open
employment opportunities in different country markets. The BMET in collaboration with
some research institutions aided by BAIRA and Bangladeshi missions in different
countries has created and maintains a database which is accessible to all recruiting
agencies. After this the agency would discuss with the would-be-migrant about the
possible employment opportunities and secure his agreement on that.
Once a possible opportunity has been determined the information would be sent to the
Overseas Bangladeshi Community Group (OBCG) in the said country that would confirm
whether the opportunity still exists and communicate the information to the consulate and
the recruitment agency. The agency or its representative in the host country would then
discuss with the employer to find a match between the employers need and the migrants
skills, and negotiate a suitable compensation package. The candidate would be asked to
undergo requisite training if it is required. Meanwhile the agency would complete all
formalities with the Bangladeshi Government including bio-metric registration; assist the
candidate in availing bank loan, in buying tickets and getting adequate insurance
coverage, and in getting visa and work permit. The candidate would then attend the
mandatory pre-departure training and leave for the foreign country.
The migrant arriving on a temporary work visa, would report to the Bangladeshi mission
for the initial registration, and to the Overseas Bangladeshi Community Group. The
OBCG would help him to settle down in the new environment by assisting him in renting
of an apartment and providing other basic information about the new location. A
representative of the agency and that of the OBCG would then introduce the migrant to
the future employer. Bangladeshi missions abroad have an important role to play in
ensuring the welfare of the migrant workers in the host countries. There are already 13
labour attachs in Bangladeshi missions in different labour-receiving countries. They
provide counselling, advisory and legal services to the distressed Bangladeshi workers.
However, their active participation in the entire migration management process would be
more beneficial. During the length of the employment period of the Bangladeshi migrant
worker the OBCG duly supported by the respective Bangladeshi mission would have to
oversee the progress of the migrant, and also receive regular reports from both the
migrant and the employer. These reports would then be transmitted to the recruitment
agency and the BMET.
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Experience of other countries suggests that basic information about the working
conditions, attitudes towards and concerns of the migrants would help to create a reliable
statistical database for further analysis of the temporary labour migrations impact on
both the host and the home countries. Secondly, it would also ensure that any major
concerns about the migrants well-being be communicated to the Bangladeshi missions
and to the appropriate local authorities in the host country. The migrants should be
encouraged to expatriate their capital home, and the remittances should follow the official
channels. At the end of the deployment period the process would have come full circle
when the migrant would return home with the OBCG and the recruitment agency being
the integral agents in ensuring that to happen. As with other aspects, the agency is
expected to keep track of all the migrants who travel out of and into Bangladesh and
report the statistics to BMET. Importantly, the recruitment agency should be also
involved in the local market and it should attempt to match the returnee migrants skills
with the opportunities existing in Bangladesh, especially in the cases of those migrants
who possess new skills acquired during migration.
A final note must be added. In terms of economics, the above-mentioned model is viable
in producing positive results as long as the process remains properly regulated and
managed. However, given the fragmented state of the Bangladeshi diaspora, the
immediate functionality of this method is debatable. Substantial spade work needs to be
done before putting this process in place. Creation of the OBCG with adequate manpower
and financial support is an important starting point. It needs to be stressed that the OBCG
will perform as an efficient vehicle in the process only with the clear guidance,
encouragement and, importantly, financial backing of the Government, BAIRA and the
Overseas Staffing Services Forum (OSSF). The Bangladeshi consulates established in
various countries should work in close cooperation with the present old and new
diaspora communities in establishing such a working group.
Presented as a hypothetical idea, the model does provide a reasonable framework for
further analysis of the temporary labour migration processes from Bangladesh. The
private sector, civil society organizations and last but not the least, the people of
Bangladesh must work together with the Government of Bangladesh in an enduring
partnership to take this process from conception to reality.
Improving migration and remittances information systems: The prevailing management
information systems on manpower export and remittances inflow are abysmal. Steps like
increasing the efficiency of the Government Overseas Deployment System, undertaking
centralization through digitalization of information, and electronically connecting the
different databases maintained by all agencies involved in the overseas deployment
system, could improve, not only the exchange of vital information on migrant stocks and
flows and communications between home agencies and overseas offices, but also the
authentication of various documents needed to process the applications, and other
services that enhance the deployment process and save the government, overseas staffing
companies, and migrants a lot of money and man-hours. It could also serve as a central
portal for information by migrants on available programmes and services existing not
only with the government but also with the private agencies on livelihood, skills training,
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counselling, credit access, and other valuable resources for the reintegration of the
returnee migrants.
Formation of overseas staffing services forum: A broad based association with
representation of all the important stakeholders of the overseas manpower export and
staffing business needs to be formed. The forum should provide a platform for all the
stakeholders to come together, express their concerns, views, represent their interests, act
as a policy advocacy group, develop guidelines for the different constituents of the
industry, monitor their actions, become a public face to the outside world and shape the
future of this important sector of Bangladesh economy. The Forum would be an umbrella
body with representatives from organizations and entities actively involved in the supply,
demand and regulations of overseas manpower industry as shown in the Figure 8.10.
Representatives of Government
The Forum would work towards building greater awareness among the current and
prospective migrant workers. It would attempt to project better image of the sector in the
domestic and international arena by bringing greater professionalism in the sector,
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The possible activities of the Forum are listed below. The list is indicative and by no
means exhaustive.
1. The Forum will undertake sector image building activities, to ensure the best
result for the country from overseas employment.
2. It will provide necessary technical and professional support services for ensuring
good practices in terms of:
a. Training
b. Recruitment (screening and recruiting)
c. Placement (job search, job insurance)
d. Finishing (Language, culture, country specific training, job specific
training, dos and donts, etc)
e. Rehabilitation after return
f. Data resource provision
3. The Forum will facilitate capacity building of organizations (especially for Forum
members) to develop skilled human resource and provide quality staffing
services.
4. It will work in collaboration with the Government to promote employment of
quality staff at home and abroad
5. The Forum will enter into partnership relations with relevant organizations and
authorities to ensure congenial conditions of overseas employment from
Bangladesh
6. It will work with relevant authorities in overseas markets and staffing services
agencies and authorities in Bangladesh to ensure safe and lawful conditions in the
process of overseas employment and in the employment situations of migrant
staffs.
7. The Forum will establish and promote network among NGOs and other civil
society Organizations which will provide institutional facilities for the well being
of the returned migrant staffs including their best form of economic and social
rehabilitation
8. The Forum will undertake and support research, consultancy, and training of
staffs by appropriate agencies. The Forum will acquire sector specific knowledge
and disseminate the same among:
a. Potential overseas employees
b. Families of employees
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c. Business entities
d. Financial Institutions
e. Academic institutions
9. The Forum will generate funds from home and abroad by pursuing appropriate
strategies and mechanisms such as membership fees, service charges, donations
and grants, and other income generating activities to carry out the objectives of
the forum.
10. It will undertake promotional activities in the area of staffing service in
collaboration with relevant institutions (like universities, research and training
institutions)
11. It will provide social services to migrant citizens of the country
12. It will encourage/advocate/lobby for a sector-conducive regulatory framework
with the government
13. The Forum will arrange certification (authentication of legitimacy) of
organizations related to the overseas staffing services sector
14. Monitor different aspects of the sector on behalf of the government, employers,
donor agencies, BAIRA, etc.
15. Innovate different services for both overseas employees and employers
16. Establish infrastructure relating to the common service for the development of the
sector.
From recruitment agencies to overseas staffing companies: It is imperative that in the
medium and long term the overseas manpower agencies need to transform themselves to
become more like staffing companies with greater commitment of resources in the
upstream and down stream of the overseas manpower industry value chain. They also
need to change their agency mindset of making transaction based profit and short term
business orientation to company mindset of sustainable share holder value creation with
long term orientation. A number of them have to create and strengthen business
development infrastructures in the host country markets to gather better market
intelligence, develop business relationship with the employers and build bridges with the
local government agencies. It is also important for the companies to focus on new
geographies and distant markets in the developed countries in Europe and North America
because the traditional growth engines such as the export of unskilled people to the
Middle East markets are likely to face increasing price and competitive pressures. It is to
be noted that in most countries the recruitment and staffing markets are highly
fragmented and localized. Even the bigger companies are not very professionally
organized and managed. Local issues and regulations play very important role. Extensive
travel by company senior management and meetings with the local staffing companies,
associations, country level regulators and prospective employers are a must.
In the initial years, when it is difficult to establish a direct contact with the employers in
the developed markets, it would be a good strategy to target the multinational and local
staffing companies as prospective customers. A positive development for the Bangladeshi
overseas manpower companies is the emergence of the demand for temporary staffing in
the local and global labour market. Targeting the multinational and local staffing
companies in the developed markets as the prospective customers would be a good
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starting point as direct contact with the employers in those markets would be difficult in
the initial years. In most countries the recruitment and staffing markets are highly
fragmented and localized and the local issues and regulations play very important roles.
Temporary staffing companies play a key role not only within the various national
territories, but also through their ability to mediate migration flows, both between the
countries within a continent as well as across the continents. This is evident from the
roles they have been playing in the movement of migration of temporary labour within
the countries of Central and Eastern Europe, and between that region and Western
Europe. New markets in the affluent countries can also be created by working closely
with Bangladeshi businessmen who are already commercially present and doing business
in these developed countries. Partnerships may be worked out with other people with
subcontinent origin.
It is also imperative in the medium and long run that manpower recruitment agencies in
Bangladesh change their agency mindset of making transaction based profit and short
term business orientation to company mindset of sustainable share holder value creation
with long term orientation. As the numbers of Bangladeshis and workers from other
manpower exporting countries surpass the demand in the traditional markets (Middle
East and Far East) a tradition has developed where the recruitment agency and finally the
worker pays to get the placement rather than the employer pays to receive the workers.
There is an urgent need that Bangladeshi overseas manpower companies collectively
resist such practices and undermine the value of Bangladesh workers. The industry
association has to play a pivotal role in this regard by developing consensus among the
member organisations, strong enforcement of code of conducts and promoting brand
Bangladesh in the labour receiving countries.
Linking training to overseas placement: At present there are very few training institutes
in Bangladesh with effective placement component. A few recruiting companies have
attempted to establish a training component as a support to their recruitment business.
These overseas companies are engaged in providing training and certification as per the
specifications of the clients abroad and providing the placement to successful candidates
abroad. It should be noted that the migrant workers who participated in such training
programmes of some of the overseas manpower companies were assured of placement
(for the successful trainees only) at the time of admission. It is observed that almost all
the prospective migrant workers are ready to pay a total package of more than US $ 3,000
in case they are assured of after-training placement even though the educational loans are
hardly available in Bangladesh for such programmes. If educational loans are made
available, not only the pool of candidates who will be willing to pay to attend such
training programs will increase dramatically, but also the candidates will be able to pay
much higher fees, as much as US $ 5,000-10,000, for such programmes.
Need for more involvement of reputed business houses, NGOs and professionals: Our
estimate indicates that if Bangladesh has to achieve an annual remittance flow of US $ 30
billion by 2015, the Bangladesh overseas staffing industry turnover will cross US $ 6
billion by 2015 with the staffing and recruitment companies earning a gross margin of
close to US $ 1.5 billion from the current estimated industry turnover of close to US $ 1
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billion and gross margin of US $ 250 million. Moreover, given that the turnover of
education and training industry in Bangladesh may cross US $ 1 billion by 2015, staffing
companies that have integrated backward to run their own training facilities will have the
opportunity to get a share of this revenue as well.
By any measure this is a huge business opportunity and mainstream entrepreneurs and
business houses in Bangladesh should not shy away from investing in this sector owing to
the past ill reputation of the sector and social stigma associated with the business.
Reputed business houses in Bangladesh, reputed NGOs and professionals should come
forward to establish a number of overseas staffing companies, educational and training
institutions as the longer term opportunity is huge so is the socio-economic contribution
to the nation, much more than many other industries in Bangladesh. Their entry will help
make the business in this sector more organized and professionally managed, erase the
stigma attached to the sector and restore stakeholders confidence, attract banks and other
financial intermediaries and foreign investors into the sector and give due fillip to raise
the manpower export from Bangladesh to the next level and position Bangladesh in the
global market as the quality supplier of human resources. Further, participation of NGOs
will aid channelling a sizable portion of the developmental grants coming to Bangladesh
into capacity building activities through setting up quality training institutes which will
have longer term sustainable developmental impact on Bangladesh.
In the Appendix 5 we have presented a few model overseas staffing companies of the
future in Bangladesh with a belief that many such companies would emerge in
Bangladesh over the next few years and some of them would emerge as the front runner
in the industry and provide the leadership to other players in the industry to consolidate
Bangladeshs position in the global labour market. We have also presented a few business
plans for such companies in Appendix 6.
To improve its market share from the current level of less than 4 per cent (4 million out
of over 100 million migrant workers) to the desired level of over 6 per cent (7 million out
of 120 million migrant workers) and thereby become a leading global supplier of human
resources, and ensure over US $ 30 billion of remittances inflow to the country
Bangladesh will need a stock of 7 million migrant workers and a regular net annual
export of 800,000 - 900,000 professionals, high skilled, skilled and semi skilled workers
by 2015. Our supply projections indicate that 7-8 million people need to be trained on
different skills at an annual average of close to 2 million to take care of the additional and
replacement demand in the domestic labour market, replacement demand of 2 million in
the overseas market, and an additional demand of 3 million in the overseas market over
the next decade. It is estimated that at the current level of educational infrastructure there
are about 300,000 candidates who have the potential to be trained on various skills every
year. A substantial portion of these candidates can be placed abroad after successful
completion of the training and acquisition of relevant certifications. Still there remains a
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huge gap between the supply of trainable manpower resources and the required number
of trained manpower for catering to the export demand. This gap can be bridged by the
following initiatives: (1) by expanding the pipeline of people willing to work overseas;
(2) by improving the quality of the current and future workforce; and (3) by adding
substantially to the education, training and grooming capacities and capabilities in the
country.
There is a need for enhancing educational system capacity in Bangladesh with greater
access and coverage: At the pre-primary, primary and secondary levels, countries need to
reach those students primarily from poor communities who do not have access to
education. There is an urgent need to improve the primary and secondary educational
infrastructure, so that the pool of prospective candidates for skill training and higher
education reaches 800,000 1000,000 by 2015. A recent study of educational impact on
migration from Philippines suggests that for every percentage increase of enrolment in
tertiary education, the percentage of OFWs increase by 0.20 per cent on average per
region. Therefore, efforts have to be made so that enrolment at the primary, secondary
and tertiary level increases rapidly over the next 10 years. This would mean not only a
doubling of the capacity of the educational infrastructure at the school, college and
university level, but also improvement in the primary enrolment ratio from its current
level to close to 90 and that of secondary and tertiary to 50 and 25 from current level of
17 and 4 respectively.
In an increasingly integrated and global economy, increasing the skills and capabilities of
the Bangladeshi labour force and making them internationally competitive is crucial to
economic success. With globalization and increasing trade liberalization, the demand for
a more skill-intensive and technology-literate workforce to produce high quality goods
competitive in the global market will become increasingly greater for more developed
economies with a scarcity of labour. Bangladesh must be able to seize the opportunity so
that Bangladeshi professionals and higher skilled workers can participate more actively in
the global market. Consequently, there is a need for Bangladesh to improve its human
capital foundations in the technical arena. This means upgrading the quality of its
technical education, raising the quantity and quality of its science and technology
practitioners, and strengthening the on-the-job training of its workers. The existing
educational institutions in the Bangladesh will not be adequate both in terms of quality
and quantity to improve the chances of the country to benefit optimally from trade
liberalization unless substantial institutional innovation is undertaken.
We believe that both government and non-government sectors need to play crucial and
complementary role in the development of a skilled labour force in Bangladesh. There are
several options available for developing skilled manpower and closing the skills gaps
with the developed markets. Whatever the option chosen, the cooperation and
collaboration of the major stakeholders would be required. As discussed earlier the
demands in the international labour market are increasingly oriented to semi-skilled and
skilled workers, and the competition to enter this market is intensifying. In addition to
basic skills training program for low skilled migrants, government can encourage existing
colleges, institutions and universities develop specialized training programs to prepare
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Bangladeshis for specific labour markets. To better facilitate labour force and meet the
international demand, private sector training institutions must be established and hence,
the Government should come with concrete supportive policies.
Bangladesh needs to have a number of internationally recognized sector specific training
institutions such as nursing, catering, driving, etc. A number of other institutions need to
offer a variety of skill training opportunities to secondary school graduates, school
leavers or dropouts. There is a need for both public and private investments in creating
educational infrastructure in the fields of information technology, healthcare and other
vocational training such as creating qualified electricians, plumbers, carpenters,
mechanics or the like. As discussed earlier, the demands for nurses, physical therapists,
various medical assistants and other less-trained healthcare workers such as health aides
in the world are not only big but also rising with the rise in the life expectancy of people.
Because of their increasing demand, visa restrictions for trained healthcare workers are
much less stringent in many developed countries.
At present there are very few training institutes in Bangladesh with effective placement
component. Based on the available information, there may be at maximum 10 training
institutes with the placement component integrated into it. However, a few recruiting
companies have attempted to establish a training component as a support to their
recruitment business. These overseas companies are engaged in providing training and
certification as per the specifications of the clients abroad and providing the placement to
successful candidates abroad. It should be noted that the migrant workers who
participated in such training programmes of some of the overseas manpower companies
were assured of placement (for the successful trainees only) at the time of admission. It is
observed that almost all the prospective migrant workers are ready to pay a total package
of more than US$ 3,000 in case they are assured of after-training placement even though
the educational loans are hardly available in Bangladesh for such programmes. If
educational loans are made available, not only the pool of candidates who will be willing
to pay to attend such training programs will increase dramatically, but also the candidates
will be able to pay much higher fees, as much as US$ 5,000-10,000, for such
programmes.
Besides, Bangladeshi institutions must seek accreditation from internationally recognized
accreditation agencies. An option that has been introduced successfully in many
developing countries is to allow training institutions to pay fees and seek certification and
accreditation from internationally recognized agencies e.g. City and Guilds of the U.K.,
Singapores Workforce Development Agency, and Australias National Training
Authority. An indicative list of such accreditation bodies with the URL is given in the
Appendix. Institutions who aim to get accredited by these international agencies will also
need to ensure that the quality of training they are providing meets international
standards. Skilled Bangladeshi workers will find it much easier to find employment in
other countries, if their degrees are accredited by internationally recognized institutions.
This will likely reverse the trend of workers migrating abroad being unable to find highquality jobs because of low skill levels. It is to be noted that making a signal departure
from the past, in Bangladesh, seven universities and technical training institutions
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recently joined hundreds of other participating institutions around the world to offer Sun
training and technology through the Sun Academic Initiative program. The Bangladesh
initiative was coordinated by JOBS-IRIS Bangladesh, a multi-donor funded organization
that aims to create sustainable employment through private sector development. This
trend needs to gather momentum in many other occupational areas.
Pre-Departure Training for Labour Migrants
Many migrants face difficulties in the host countries due to lack of preparation before
departure. Pre-departure training can impart practical knowledge about their future living
and working environment; and can include basic language skills, financial management,
health counselling and human rights awareness. Such training can also prepare migrants
for socio-economic reintegration when they return to their country of origin. Cultural
orientation and language training are important and there is need to develop language
training and cultural orientation curricula, trained trainers, establish or upgrade training
centres, and produce pre-departure manuals and other information services to prepare
migrants for their new life abroad. Before departure, training about travelling,
immigration rules and how to know authenticity of travel documents are important. The
migrants should also have some idea about how to act in emergency situation or register
complaint, if any, in country mission office in the host country.
To broad base the involvement of multiple stakeholders in the export of manpower there
is an urgent need to improve the efficiency and reach of the official channels of
remittances to Bangladesh. With the projected remittances of US $ 30 billion by 2015,
the remittance industrys revenue is expected to cross US $ 1 billion--a huge business
opportunity for all players in the industry. However, to broad base the involvement of
multiple stakeholders in exporting human resource and expand the remittance industry
revenue, the mix of remitting channels needs to be changed progressively as depicted in
the Figure 8.11.
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Remitting Channels
100%
90%
80%
70%
60%
50%
Unofficial Channels
Official Channels
40%
30%
20%
10%
0%
2006
2015
2020
The importance of using formal channels cannot be underestimated for enhancing the
developmental value of remittances. By entering the banking system, these funds become
more secure, earn interest and, indirectly, to make fresh money available for education,
migration and business loans and thereby stimulating economic activity. However, the
informal transfer systems have been continuing for a number of reasons in Bangladesh
and elsewhere. From the point of view of the remitter, technological gaps between
sending and receiving countries, archaic banking practices on the receiving end, the
absence of rural bank branch networks that handle foreign currency transactions,
prohibitive costs of remitting, inability to open bank accounts in host countries due to
lack of identity documentation and/or lack of regular status, lack of confidence in official
institutions, are all contributing factors. Moreover, informal money transfer systems have
been able to offer low transaction costs, speedy and relatively safe alternatives that have
been described in a UN report as the poor mans private banking vehicle and stress the
importance of trust and ethnic bonds in these unregulated arrangements with relatively
modest commission fees that seldom exceed 1.25 per cent.
Despite an increasingly competitive remittance market, these informal systems have
proven to maintain very important economic functions. In addition, they seem to
represent the most crisis-resistant part of many an emerging financial infrastructure. UN
commissioned research in Bangladesh and other countries indicate that in many instances
more than 40 per cent of remittances are sent by unofficial means mostly due to missing
banking facilities and unfavourable exchange rate regimes.
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As banks, credit unions and even microfinance institutions have been joining moneytransfer companies in serving developing communities, fees have started to fall. But there
is still ample room to cut fees and to expand access to financial institutions for migrants
and their families. Such access allows migrants and their families to save, obtain credit
and acquire productive assets. For example, in India for the tech-savvy with Internet
access, Internet-based providers have become another option for remitting money. The
popular Remit2India, a collaborative venture between the Times of India and UTI, an
Indian bank, led the way in 2001, and others have followed. These services are more
convenient and less expensive than conventional methods. For example, Remit2India
charges US$ 3 to send up to US$ 200, while the Bank of India's online system charges a
flat rate of US$ 8 per transfer. Also, Western Union is reaching out to the lower end of
the customer base. It has established an unusual partnership with the Indian Post Office in
which the post office's network of 150,000 offices the largest in the world provides
Western Union potential access to customers in the most remote parts of India. Similarly,
country governments in Mexico and Philippines have actively encouraged multinational
companies such as Wal-Mart and Macdonald with wider geographical coverage and easy
access to people both in the remitting and receiving countries to start money transfer
activities along with their regular business activities. This has not only brought down the
cost of remittances dramatically, but also resulted in manifold increase in the flow
remittances through formal channels.
To ensure a fast and progressive increase of the inflow of remittances, there has to be a
clear consensus among the various stakeholders like the government, banks, and other
financial institutions in Bangladesh. They should recognise that: (1) improvement in
financial infrastructures is central to increasing the volume of remittance flows; (2)
granting migrants and their families back home better access to formal financial
institutions would increase the proportion of remittances flowing through official
channels which in turn would enhance the ability of the government to leverage
remittances for development purposes; (3) the need to redouble its efforts to create
incentive schemes to attract remittances; and 4) the need to fine tune legislative,
regulatory and policy frameworks so as to enhance remittance flows and maximise
developmental impacts and the effective co-ordination of these through government
agencies.
To ensure greater propensity of remittances by the migrant Bangladeshis, the most
feasible targets for policy intervention are the establishment of cheap, convenient, and
reliable ways of transferring remittances, and the setting up of incentive programmes for
attracting remittances. In addition, removing the black market premium on exchange
rates and providing stable economic and political conditions that improve investment
climate in the country and promote investment by migrant Bangladeshis. A sound
diaspora management strategy can definitely enhance the emigrants feeling of
belongingness in the country of origin, and increase their propensity to remit.
The formal system for remittances has to become cheaper and more responsive to the
migrants needs. Several factors need to be incorporated. First, the enabling and legal
framework needs to be improved and electronic infrastructure introduced to improve
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speed and reduce costs. This will involve upgrading currency and electronic payments
laws; payments dispute systems, and expediting the adoption of Financial Action Task
Force (FATF)9 legal regulations. Second, the Bangladeshi migrants need better services
in order to remit safely and cheaply both internally and internationally. Third, the
overseas Bangladeshi need to have a better understanding of the options available for
remitting and also get improved levels of information about their rights as migrants to
avoid exploitation. The key issue is need for the formal channels to play a greater role in
the remittances by upgrading and improving the operations of these systems. The benefits
of doing so will also impact the wider growth issues as these improvements will allow
greater usage of electronic medium for financial transactions. As banks, credit unions and
even microfinance institutions have started to join the money-transfer companies in
serving the developing communities, fees have started to fall. But there is still ample
room to cut fees and to expand access to financial institutions for the migrants and their
families. Such access would allow migrants and their families to save, obtain credit and
acquire productive assets.
One significant constraint in improving the best practices in money remittances is the end
point. Bangladeshi banks and financial institutions are often not oriented to serve the
small customers like the remittance recipients and senders. Unless banks have a
significant participation in the money transfer, they tend to charge high commission for
the transmission. As seen in other countries, the formal channels by ensuring greater
availability of reliable, safe and cheap services and products have been able to reduce the
risk of remittances and thereby the risk of the entire overseas manpower business value
chain. Taking a cue from countries like Mexico and Philippines, Bangladesh Government
should allow entry of more players including the non-traditional ones such as the microfinance institutions, credit unions and the cooperatives in this market.
With greater competition and adoption of new technology-based products such as using
mobile messaging, remittance costs could be pushed down which would also increase the
share of the formal sector in the remittance flows. With the help of technology and
marketing coupled with the reliable image of a banking institution and economic scale of
its operation, banks have to reduce costs to levels that may be considered competitive
with informal transfer agencies. The formal channels can emulate the marketing, and
such promotional features as door-to-door or courier services that have been adopted by
the informal remittance agencies. Given the absence of development in many areas,
problems of interconnectivity can be addressed through greater participation of the
community-based institutions such as the rural banks, cooperatives and the microfinance
institutions, as well as post offices, in provision of remittance and other financial
products and services to the migrants beneficiaries.
Though, drawing arrangements have been made between 35 Bangladeshi banks and about
400 foreign banks/exchange houses situated throughout the globe, but the number is far
from adequate. Bangladesh Government should strengthen the bilateral initiatives for the
9
FATF is an inter-governmental body which develops and promotes policies, at both national and
international levels, to combat money laundering and terrorist financing.
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opening of more remittance windows for Bangladeshi banks or building alliances with
other remittance entities in host countries hosting large numbers of Bangladeshi remitters,
such as in Saudi Arabia and other Middle Eastern countries, UK, US, Italy, and
Singapore. This would enhance competition, drive costs further down and encourage
more remittances through the formal sector. Moreover, as Bangladeshi migrant workers
start making their presence felt in other target countries, the remittance windows should
follow them.
However, we must hasten to add that the above suggestions are indicative and not
exhaustive. More research work needs to be undertaken to suggest what Bangladesh
Government, banks and financial institutions, business community, industry and trade
associations, and NGOs can do to help lower the costs of remittances and attract more
remittances through formal channels. It is also necessary to find out what policy and
regulatory changes would be most helpful and what stands in the way of bringing about
these changes and how they can be overcome.
Strategy 7: Building Brand Bangladesh
The credibility Bangladesh Brand as a preferred source country for human resources can
be enhanced in the following ways:
Involvement of some leading and highly reputed NGOs like BRAC and Grameen
Bank in the supply and demand side of the manpower business.
Involvement of some of the eminent personalities from different walks of life in
patronising, governing and promoting manpower export from Bangladesh.
Making manpower export an organised industry with greater transparency and
attracting more professionals and reputed business houses into the industry.
Making bio-metric registration of all Bangladeshi migrants mandatory.
Conducting a national level migration readiness test as a precursor to employment
overseas. At a later date national level eligibility tests may be conducted to assess
the migration readiness in terms of general awareness, language and
communication skills, emotional quotient. This test is particularly needed for nonprofessionals as professionals have other means to demonstrate these
competencies. Different levels of tests may be designed for different level of
candidates. Every prospective candidate must pass this test before seeking job
abroad. This will have a tremendous impact on the brand reputation of
Bangladesh and can act as a sustainable source of competitive advantage.
Seeking certification and accreditation from the internationally recognized
agencies and attracting internationally reputed universities and institutions to set
up campuses in Bangladesh.
Sending delegations comprising government officials, NGOs, bankers and
industry people to prospective host countries and educating the customers about
the positive steps taken by Bangladesh in organising the manpower industry and
showcasing Bangladesh as the major source of skilled manpower.
The image building campaign to build Brand Bangladesh should focus on projecting
the role models, the many individuals, groups and organisations that are rendering
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valuable service for the common man in the field of health, education, economy, women
empowerment, care for the orphans and environment against all odds without prejudice.
Bangladesh needs to be seen as a society supporting the good deeds and services of
individuals and organisations irrespective of their religion, caste and creed. Once that
process starts with a few individuals in the beginning; in groups and communities, after a
passage of time and eventually in sufficient numbers so as to generate and build on and
sustain a positive image as a nation. India has been able to make giant strides in the past
two decades on the same path riding on the role models in IT, Pharma and higher
education. Human resource export may provide the necessary platform to create Brand
Bangladesh which will rub into many other sectors in the economy.
The government has an overarching role to play in executing the proposed strategy for
realizing the full economic potential of migration. The three key roles that the
government needs to play: that of a legislator, a regulator and an enabler.
As a regulator, the government needs to enact or suitably amend the laws to prevent
illegal human trafficking and human rights violation and bring transparency in the
migration process, thereby protect its citizens from opportunistic exploitationonly then
a sustained growth of the economy through migration and remittances is possible.
Besides through a more effective regulatory regime, it has to enable formation of better
organized and professional overseas staffing and training companies, and supportive
banking and microfinance institutions that would provide loans and facilitate remittances
inflow. As an immediate measure it should grant industry status to human resource export
and extend the privileges given to an export oriented industry such as letter of credit
facility and licence to deal with foreign currency.
The Government of Bangladesh also needs to work directly in two distinct areas. It has to
invest and encourage private investment in building scaleable, quality primary, secondary
and tertiary education and training infrastructure. It should ensure that the education
sector encompassing schools, technical institutes and universities are in sync with the
global labour market trends and demands so that the citizens have relevant and quality
educational and technical backgrounds to avail of these opportunities. Secondly, it should
have a good networking with the governments and the organizations of the countries
where the Bangladeshis are likely to work. The government has to provide active
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promotional support by signing bilateral agreements with the potential host countries.
Both these areas are important to ensure long term benefits and to establish a good
reputation in the global market.
A few strategic initiatives the government needs to undertake are discussed in the
following paragraphs: accelerating trade development efforts; active migration
management, and linking migration, remittances and local development.
Accelerating trade development efforts: Bangladesh must work with its trading partners
(through the WTO and other trade promotion agencies) to streamline the trade in
manpower. This may require more focussed effort on the GATS Mode 4 negotiations
currently underway, as well as other specific bilateral agreements. It also calls for greater
efficiency in visa procedures in the host countries for granting visa to the prospective
migrant workers. In return, Bangladesh needs to open up its market and encourage
foreign investment particularly in the areas of education and training. It also needs to
intensify its effort in cleansing the entire process of export of manpower, make bio-metric
registration mandatory for the migrant workers, and ensure responsible visa usage.
Active migration management: Bangladesh Government must play a key role in the
promotion of migration. Increasingly, the destination countries are devising mechanisms
to match inward migration flows to specific areas of economic need. These programmes
now extend well beyond the temporary work programmes, and often include long-term or
permanent migration opportunities for people with particular skills. Once established, in
principle, these programmes would require specific administrative procedures to ensure
their smooth operation. This would include promotion of the programme in the countries
of origin, recruitment, testing and certification of the applicants for the programme,
timely data flow and information sharing between the two countries, among the migrants,
the concerned consular offices; and efficient travel logistics. Bangladesh should put these
elements into place and directly provide the services in the context of the bilateral
selective migration programmes.
Moreover, the Government of Bangladesh, along with the industry associations and
individual companies, should adopt an aggressive manpower marketing strategy for
meeting the growing world demand. Minimum wages and other supporting conditions of
work--such as provision of free food, accommodation, medical facilities and return air
ticket, health insurance, leave and other benefits--right to shift to another job during the
period of their work permit need to be institutionalized through bilateral agreements. The
state and the NGOs also need to pay more attention to the post-migration phase. Agencies
involved in SME development should cooperate with the banks and the manpower
managing offices to provide extension services, and technical and managerial support
needed for the first-time small entrepreneurs who are return migrants.
Linking migration, remittances and local development: A large majority of the
Bangladeshi migrant workers come from rural Bangladesh. This suggests that the role of
the community-based financial or economic institutions, such as the rural banks,
cooperatives and microfinance institutions and NGOs, have to be enhanced in linking
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As early as 1974, the Philippines had an official government policy on labour migration.
In the 1970s and 80s several government agencies were created to monitor the migration
of Filipino labour and to provide assistance and support to the Filipino Diaspora.
Specifically, the Philippine government created in 1982 the Philippine Overseas
Employment Administration and the Overseas Workers Welfare Administration. Later,
the government launched the LINKAPIL programme to enable Filipino migrants to
support development projects at home, including infrastructure projects, education,
healthcare, etc. The total amount of contributions Filipino migrants have made through
LINKAPIL amount to more than 1 billion US$. The Philippine government has also
floated development bonds targeting migrant worker investors and established a special
pension fund which includes resettlement and medical services for returning migrant
workers. Most recently the Philippine government established the Inter-Agency
Committee on the Shared Government Information System for Migration to better coordinate and share information among the various agencies dealing with migration and
Diaspora outreach issues.
Manpower Export from Bangladesh: Perspective on NGOs Role10
Bangladesh has a legal environment that is supportive of non-profit organizations like the
NGOs engaged in charitable, educational, religious or other humanitarian objectives.
While most NGOs are focused on advocacies on broad national development issues, there
are NGOs that are engaged in the advocacy of issues and concerns of Bangladeshi
migrant workers as well as the delivery of humanitarian, psychosocial and even economic
services. Government and NGOs have built up a tradition of partnership in Bangladesh.
However, partnership with business and industry sector is yet to gain a strong grounding
within wide possibilities; small beginning is noted. NGOs would be motivated to work in
collaboration with the Government and Private sector an alliance that has a great
potential to bring optimum results. The National Poverty Reduction Strategy, in which
export of manpower and acceleration of remittances inflow can be integrated, gives a
policy framework for government, private sector, NGOs and other stakeholders including
development partners to work together in order to maximize the human potentials for
economic and social advancement of the country.
Strength of NGOs
There are several strengths that NGOs can leverage in making Bangladesh a one of the
most preferred global sources of manpower.
NGOs are close to people, the potential migrant workers, i.e. source of manpower
supply.
10 This section is developed based on the contributions made by Dr. Ahmadullah Mia, Dhaka Ahsania
Mission, Bangladesh and other Bangladeshi participants of top management program at Indian Institute of
Management Calcutta.
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As depicted in the Figure 8.9 capturing the manpower export process in Bangladesh
earlier NGOs can play critical role in making suitable and effective interventions in the
supply of creating the quality and quantity of the manpower pool (T1 and T2), and post
employment remittances to the family back home (T6), and use of remittances by the
family (T7) other than usual role of advocacy. NGOs can perform the following specific
roles:
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Identification and selection of potential workers while working with target groups
that provide the source of supply;
Facilitating migration of workers for overseas employment, by linking with
relevant institution to provide travel support, and directly supporting the members
of co-operative societies as applicable;
Providing education, training, job orientation/counselling and guidance to prepare
potential migrants for employment; giving special emphasis on womens training
for employment;
Collectively mobilizing opinion of stakeholders to formulate policy and to have
suppliers (agencies) to work within a system that can promote manpower supply
as a sustainable business;
Supporting relevant bodies to set standards for skills training for various
occupations and certification to satisfy employers requirements;
Networking and coalition building among NGOs and other concerned agencies;
Providing information to the migrant workers and families/relatives for most
profitable ways of utilizing remittance consumption, savings and investment;
and linking the workers immediately after their return with appropriate
institutional facilities to make best use of money, and arranging for estimation of
cost and expected return for small enterprise as per interest of the returnees. Some
of the returnees may be encouraged not to temporarily migrate again; alternatives
for earning a good living within the country may be suggested and supported. It
has been observed that the family members and relatives of migrant workers who
neither have the proper business attitude or appreciation for the hard- earned
income, are asked to manage small enterprises funded by the remittances which
eventually fail. There is an acute need for financial literacy, savings mobilization
or business counselling, done at the point where spending decisions are made by
194
NGOs can enhance their capacity for training of potential migrants; can work
together with others concerned for standardization of training provided by private
institutions and establish a legally recognized platform of the concerned agencies
to find means of supporting such activities and establish a positive country image
for overseas staffing.
NGOs can conduct research and/or work in co-operation with research institutions
on various aspects relevant to employment market (demand side), availability of
workers (supply side) to match with the market needs, legal migration of workers,
functioning of manpower supply and travel agencies and problems, needs and
problems of returnees, best use of remittance in the interest of the workers as well
as national development, etc.
NGOs can have extension of their works in staffing business by themselves and/or
having joint venture with others.
NGOs can engage in advocacy role to push the beneficial aspects of overseas
staffing business; Role of media can be influenced making them proactive;
stigmatizing the manpower business can be overcome by projecting the positive
aspects of manpower export with rational and legitimate features built into the
business. Association of agencies involved in manpower may be turned into
socially responsible business in association with and appropriate support from
NGOs; good business standard can be decided and complied with by the member
agencies.
Donors need to support NGOs role to undertake activities in support of staffing services.
NGOs can engage in establishment of new institutions like Wage Earners Bank is an
example of possible development in the whole area of overseas staffing business
promotion.
NGOs can engage in lobby for a national policy with a long-term view in order to:
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NGOs can engage in collaborative work with universities and public sector institutions
in following activities:
Training
Research
Mobilization/campaign/advocacy
Enterprise Development
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Overall, the role of NGOs can be significant in both pre and post-migration stages
through direct and indirect involvement toward building and sustaining overseas staffing
services as a good business.
Immediate and Medium Term Agenda
To take strategic steps such as bi-lateral agreement with the host governments for
greater penetration of Bangladeshi workers in the current country markets in the
Middle East and Asia.
To ensure efficient visa regime for the temporary workers with the OECD and
other destination countries and take effective measures for abolition of irregular
migration.
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To drastically reduce the cost of for both short-term and long-term migration and
for finding employment abroad so that all aspirant Bangladeshis from anywhere
in the country can avail this opportunity.
To deregulate higher education in stages over the next five to seven years, and to
shift to a largely demand-based funding system for colleges and universities.
To assist the migrant and his family in effective utilization of remitted fund
through some targeted projects with the support of NGOs.
Encourage the banking industry to attract investments from the long-term and
short-term migrants in Bangladesh through various money market instruments.
To take measures in protecting rights, dignity and security of the migrant workers
both inside the country and in abroad and to assist returned migrants in social and
economic reintegration within the country.
The agenda for the Overseas Staffing Services Forum and BAIRA should be:
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By any measure manpower export and overseas staffing business offer a huge business
opportunity. Therefore, the mainstream entrepreneurs, professional managers and
business houses in Bangladesh should not shy away from investing in this sector owing to
the past ill reputation of the sector and social stigma associated with the business.
Reputed business houses in Bangladesh, leading NGOs and professionals should come
forward to establish a number of overseas staffing companies, educational and training
institutions because the long term opportunity in this field is huge and the socioeconomic contribution to the nation from this industry will be much more than from
many other industries in Bangladesh. Their entry will help make the business in this
sector more organized and professionally managed, erase the stigma and restore
stakeholders confidence, attract banks and other financial intermediaries and foreign
investors into the sector and give due fillip to raise the manpower export from
Bangladesh to the next level and position Bangladesh in the global market as the quality
supplier of human resources.
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CAI has been produced on the basis of information provided in secondary sources of
data. The data were collected from international agencies with resources and expertise to
collect the data on specific indicators. We have made serious effort to collect historic data
on various indicators used to develop the index.
The following organizations and websites helped us to come up with the index.
United Nations Statistics Division (www.unstat.un.org)
United Nations, Department for Economic and Social Information and Policy Analysis
Statistical Division (UNSTAT) and Commission of the European Communities,
EUROSTAT, provides a detailed historic data set on national income, population trend
and various other broad indicators of around 250 countries across the globe.
World Bank (www.worldbank.org)
The World Bank produces comprehensive data set of economic trends and broad array of
other indicators. The World Development Indicators is one of the primary sources of
many indicators used in development of the index.
United Nations Conference on Trade & Development (www.unctad.org)
Established in 1964, United Nations Conference on Trade & Development (UNCTAD)
has progressively evolved into an authoritative knowledge-based institution whose work
aims to help shape current policy debates and thinking on development, with a particular
focus on ensuring that domestic policies and international action are mutually supportive
in bringing about sustainable development. UNCTAD also undertakes research, data
collection and policy analysis for the debate of government representatives and experts.
The database of UNCTAD has proved to be an important source for finding remittance
income paid by various economies across the world over the years.
World Resource Institute (www.wri.org)
World Resource Institute (WRI) is an environmental think tank working proactively
towards protection of earth and improvement of human lives across. It has a huge
compilation of historic data on multiple indicators from regions as well as different
countries of the world. WRI maintains data base by collating information from various
international sites
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Step 1: The basic indicators, both categorical as well as numerical, were collated for 85
countries from the abovementioned sources. Despite of significant progress over recent
years many gaps still exist in the data, for significant number of countries. Therefore for
these cases reasonable estimates were made visiting country profiles from different
websites.
Step 2: The observations were standardized11 and we had carried out factor analysis
using Principle Component extraction method to reduce the number of variables
according to the dimensions they represent. The qualitative indicators comprising of
indicators like, language and religion was treated separately as the fifth dimension. The
factor matrix is shown below:
Factor 1
Factor 2
Factor 3
Factor 4
Global Competitive
Index (.661)
Per capita GDP
(.867)
Remittance paid
(.521)
Unemployment rate
(-.609)
Human
Development Index
(.567)
Net migration as
per centage of total
population (.700)
Good Governance
(.772)
CBR (.818)
Growth in labour
force (.944)
Gini Index (.663)
Growth in
Population (.934)
Step 3: For computing the aggregate value of each dimension we have taken the
weighted average of the values of the indicators factoring into the dimension. The values
are weighed by the corresponding factor loadings.
Step 4: The countries with official language English were assigned a score of two points
and if the official language is non-English then they were assigned one point. Again,
countries with Islam as official religion received a higher score i.e. two points, than a
secular country or a country with official religion other than Islam. The qualitative
202
dimension was calculated assigning a weight of 0.6 to religion and 0.4 to language. Then
weighted average of the scores was taken as the value of the qualitative dimension.
Step 5: Once the dimensions were calculated, calculation of CAI was straight forward. It
is just the weighted average of all the dimensions. Each dimension was now assigned
weights according to their importance on a 100 point scale. We have assigned 20 points
for growth, 30 for development, 25 for population, 15 for savings and 5 for qualitative
factor. Manipulation in weights does not depict a huge change in relative position. Thus
finally we arrived at the value for the CAI for 85 selected countries.
An Example: Calculating CAI for Australia
Australia is one of the top twenty attractive countries ranking 18th in our analysis. The
following discussion would clarify the steps involved in calculation of CAI for Australia.
12 Good Governance Index is created on the basis of Aggregate Governance Indicators from 1996 to 2004.
The index is constructed taking a simple average of six dimensions of governance, (i) voice &
accountability, (ii) political stability, (iii) government effectiveness, (iv) regulatory quality, (v) rule of law
and (vi) control of corruption. Ref: http://www.worldbank.org/wbi/governance/wp-governance.htm
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Choice of weights
The comparative analysis was done by assigning scores to the dimensions. The choice of
weights is a crucial matter. Stable growth rate of a country is important for the well being
of the inhabitants. The developing economies are growing at much faster rate compared
to the developed parts of the world. Thus assigning a higher score to the growth
dimension would invariably bring the developing countries up in the CAI, thereby
discounting those countries which are already reached a higher level of development. For
example, USA with average growth rate of GDP as 2.56 per cent and per capita GDP
growth as 2.7 per cent13 is much behind Malaysia which is exhibiting an average GDP
growth rate of 5.12 per cent and per capita GDP growth rate of 4.86 per cent. But the
developed countries exhibit a high standard of living and better wage rates which is
evident from the fact that per capita GDP of USA is about US$ 34,000 while for
Malaysia it is about US$ 3000 only. Besides USA is much ahead of Malaysia with a
score of 5.81 in Growth Competitiveness Index (GCI) and 0.944 in Human Development
Index (HDI). Malaysia has scored 4.90 in GCI and 0.796 in HDI according to the latest
reports. Growth rate would depict the rate of advancement of a country towards a better
position in long run but countries which have already achieved a certain degree of
advancement should be placed higher in the index. Therefore, in our analysis we have
assigned more importance to development than growth.
In case of population also, we know that high growth arte of population is detrimental for
the country if the resources are not growing at least at an equal rate. A country low
population growth and low labour growth and low crude birth rate would any how be
more attractive to migrate into. However, we can still consider a country as an attractive
one if it ensures a better income for the labourers although it has its population growth
little on the higher side. On the other hand population vis--vis economic growth would
be quite difficult to assign weights. A higher growth rate of population than the GDP
growth would limit the resources for the future generations to come. Hence we have
assigned greater importance to population growth compared to the GDP growth.
Savings which forms the fourth dimension in our analysis had been assigned a weight
which is lower than development, growth and population. This is because higher savings
rate is not always detrimental for an economy. If allocated properly, savings can be a
resource for future consumption and betterment of future generation.
The qualitative part is mainly dependent on language and religion. Language could be
learned by practice, but religion is a sensitive issue for each and every person in this
world. Although qualitative dimension had received a lower weight at times it can be the
most important factor for migration to some countries.
13 Average growth rate of GDP from 2000 to 2004 and average growth rate of per capita GDP from 1999
to 2003.
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GDP growth rate has been fairly constant and cyclical in nature. This is also reflected by
the fact that the average GDP growth rate of 3.3%. Intuitively, it means that Australia as
a nation is wealthy in terms of private consumption, government expenditure, domestic
investment and net exports. Although being a country in debt of 41.1 million USD as on
2003, strong consumption growth provided the momentum needed to withstand the
economic downturn in Asia during the late 1990s, as the buoyant domestic economy
offset the deterioration in regional demand for Australian exports. Together with a surge
in spending on private housing, consumption growth also cushioned the economy against
the effects of weak global growth in 2001-02 and the impact of one of Australia's worstever droughts in 2003.
According to Government sources, GDP growth is forecast to grow at 3.3% in 2006 and
2007. Investment growth will decelerate over the forecast period. Export growth will be
modest in 2007, but will pick up in 2007. Consumer price inflation remains high, but will
start to ease soon.
Australia GDP growth trajectory
120.0
115.0
110.0
GDP in USD at
105.0
PPP
100.0
Australia
2003
2000
1997
1991
1988
1985
1994
Year
1982
1979
1976
1973
90.0
1970
95.0
Australia
Source: OECD Fact book 2006: Economic, Environmental and Social Statistics - ISBN
92-64-03561-3 - OECD 2006
From a development viewpoint, one has also to look whether or not the economic growth
is equitable or not. The average GINI Index for Australia comes to around 0.35 %,
implies that growth has been more of less equitable in nature.
Large increase in earnings Gross National Savings
The GNS of the Australians is 19.6% per annum indicating that on average a local
Australian citizen is able to save almost one fifth of its annual income after consumption.
This is indicative of the fact that the cost of living in Australia is pretty low, compared to
other developed economies. On the mirror side, it also indicates that the marginal
propensity to save, after calculating the costs of living a healthy life is greater than the
marginal propensity to consume goods and services produced domestically. From a
migration viewpoint, this also tells me that if I migrate to Australia, I have a better chance
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Demography
Historical averages conclude that the average population of Australia is 21.31 millions
coupled with the fact that the population growth rate being equal to a 1% rise in annual
population figures. The fact that Australia has been traditionally a country of
immigration, the population growth rate thus being on the higher side because of its
ability to contain almost 20% of its population every year as immigrants, asylum seekers,
refugees and illegal migrants, thus making the official figure high.
The crude birth rate for a developed economy reflects high values compiled with low
death rates so that the population is better managed. The average CBR is 12% implying
that the active number of live child births per 1000 population is pretty high compiled
with a low death rate of o.48% indicates that population reforms or policies affecting
population growth in Australia is very strict in nature. Going by economic theory,
countries exhibiting higher birth rates than death rates imply that economic prosperity in
Australia is pretty high. This in turn reflects that the dependency ratio for Australians is
low.
Population density in the long run has been found to be 27.80 people per square km,
suggests that Australia is a micro nation. It means that 28 people live in an area of a
square km in area. However, this is only a gross measure since it doesnt include the
population concentration domestically.
Growth of Labor Force
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The average growth rate of labor force i.e. the average number of people aging in
between 15-64 years of age has shown a negligible increase of 0.01 percent. This implies
that there is negligible correlation between population growth and labor force growth.
This is supported by the fact that the average long term unemployment rate of 6.7% is on
the higher side. Logically, this tells us that if the growth of labor force is not in pace with
the growth in population, then Australia serves as a major outsourcing country. Hence,
the intensity of outsourcing jobs is high.
GDP Sectoral Growth by Industry
Overall looking at the share of industry by GDP, the tertiary or the services sector in the
long run has provided the cushion for growth reforms to the economy. The largest service
industry is finance, property and business services (which contributes 17.5% of GDP).
Other major services industries include retail and wholesale trade (10.2% of GDP),
transport and communications (7.7% of GDP), and construction (6.3% of GDP). The
most rapidly growing service industry over the past five years has been communications
(with average annual growth of 6.4%), while the construction sector has shown the
greatest volatility. Manufacturing accounted for 10.7% of GDP in 2002/03. The largest
segment of the manufacturing sectorproduction of machinery and equipment
accounted for nearly 21% of total manufacturing output in 2003.
GDP by sectors
7.00
6.00
5.00
Percentage 4.00
Growth
3.00
2.00
1.00
0.00
6.16
5.35
2.92
Agricultural Growth
Industry Growth
Services Growth
Agricultural
Growth
Industry
Growth
Services
Growth
Industry
A glance at the figure above shows that over time, Australia has shown economic
transformation from being an agriculture based economy to a more services oriented
industrial structure and it is consistent with the economic transitions of developed
nations.
The above fact shows that career and job prospects in Australia for the services sector are
really competitive. It is in this sector that most of the skilled migration is happening.
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However, the agricultural sector which shows a growth of 2.9% over the years is one key
sector in which the Australian Government is trying to bring the unemployment levels
down, since it is the farm sector and the mining sector thats providing them with income
from exports.
Social Inclusion and Economic Freedom The role of diasporas, Language Problem,
Racism
Major ethnic groups in Australia: Caucasian 92%, Asian 7%, aboriginal and other 1%.
Looking at the composition of ethnic groups, Asian representatives form a small but
substantial amount of a probable Diaspora support for the Asian migrants.
Australian English is the form of English language used in Australia. The difference has
historically come from a so called Americanization of English language during World
War II. However, Asian Diasporas have little trouble in coming to terms with Australian
English pronunciations.
Islamophobia in Australia is not something suddenly appeared over the horizon because
of the weather. To the contrary, racism against Muslims has always been part of
Australias psyche. Whether it is against neighboring Indonesia, Malaysia or Muslim
Australians; the pall of racism is permanently hovering over Australia. Government
policies, including the criminal war against Iraq and the introduction of the so-called
anti-terrorism laws have legitimized racism against Arab and Muslim Australians.
Riots, anti-war protests have historically hampered Australias image as a White Skin
nation. However, this doesnt take away the fact that Australia is an ethically divided
society.
Australia: An International Human Rights Watchdog
An HDI 0.8 or more is considered to represent high development. The Human
Development Index for Australia as on 2003 was 0.96. This reflects that the fact that on
the three prime areas of human rights i.e. a long and healthy life as measured by the life
expectancy at birth, knowledge as measured by education and a decent standard of living,
Australias performance have been mostly equitable in most of these parameters.
International comparability puts Australia in the third spot regarding human rights just
below Iceland and above Luxembourg. Hence, Australia is pretty much managed and
productive on human welfare and development.
Affiliation to UN International Migration Instruments
1951 C
1967 P
1990 C
2000 T c/
2000 S d/
1954
1973
--
2005
2004
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Now in his fourth term, Mr. Howard faces challenges on domestic and foreign fronts.
There is resistance to his plans to combat the terrorism threat. Australia's economy,
although still strong, may require cyclical reform. Skilful diplomacy has paid dividends
in Asia, but relations with Indonesia in particular remain fractious. Elsewhere in the
Pacific, Australia has found itself in a regional-policeman role. At home, Aboriginal
grievances have yet to be assuaged. A flawed referendum on republicanism in 1999
produced a result out of step with the wishes of most Australians. But after a decade in
charge, Mr. Howard still intends to stand for a fifth termmuch to the displeasure of
Peter Costello, Australia's treasurer (finance minister), who has made no secret of his
desire to succeed Mr. Howard.
NB: Excerpt Taken from economist.com
Sub Indicators
Score
Performance
Voice and Accountability
1.40
High
Political Stability
1.03
High
Government Effectiveness
1.95
High
Regulatory Quality
1.62
High
Rule of Law
1.82
High
Control of Corruption
2.02
Very High
Average Good Governance score
1.64
High
ANZUS, APEC, ARF, AsDB, ASEAN (dialogue partner), Australia Group, BIS, C, CP,
EAS, EBRD, FAO, IAEA, IBRD, ICAO, ICC, ICCt, ICFTU, ICRM, IDA, IEA, IFAD,
IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITU, MIGA, NAM
(guest), NEA, NSG, OECD, OPCW, Paris Club, PCA, PIF, Sparteca, SPC, UN,
UNCTAD, UNESCO, UNHCR, UNMIS, UNTSO, UPU, WCO, WFTU, WHO, WIPO,
WMO, WToO, WTO, ZC
Overall Country Risk Rating
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Low Risk
Moderate Risk
High Risk
211
BRUNEI DARUSSALAM
Thousands
0.3
18000000
16000000
14000000
12000000
Million USD 10000000
8000000
6000000
4000000
2000000
0
0.2
0.1
0
-0.1
10 11 12 13 14
-0.2
1
11
13
-0.3
1991-2004
1991-2004
5.33, 28%
7.17, 37%
6.85, 35%
Agriculture Share in GDP Industry Share in GDP
Services Share in GDP
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A GINI index of 71, favors inequitable growth in family income, with the wealthier
income groups relatively better off than their poor or low income counterparts. The
trickle down effect of the growth development process has not happened.
Costs & Benefits of Migration
Average Airfare Cost per head = 81000 BD Taka Comparing it a trip to Singapore takes
98800 BD Taka, a trip to this country is comparatively lower.
On the benefits side, the lack of statistical data has hampered the analysis. Historically,
the presence of ethnic groups of workers from South Asian countries can intuitively
thought to be present. The major ordinal gains of migration from Bangladesh is the fact
that the prevalent religion is Muslim and the fact of use of Islamic languages cuts down
the cost of communicating in English.
Good Governance Scorecard
Sub Indicators
Voice and Accountability
Political Stability
Government Effectiveness
Regulatory Quality
Rule of Law
Control of Corruption
Score
-1.11
1.06
0.73
1.08
0.56
0.23
Performance
Very Poor
Medium Low
Low
Medium Low
Low
Lowest
0.42
Low
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Low Risk
Moderate Risk
High Risk
213
CANADA
As an affluent, high-tech industrial society in the trillion dollar class, Canada resembles
the US in its market-oriented economic system, pattern of production, and affluent living
standards. Since World War II, the impressive growth of the manufacturing, mining, and
service sectors has transformed the nation from a largely rural economy into one
primarily industrial and urban. The 1989 US-Canada Free Trade Agreement (FTA) and
the 1994 North American Free Trade Agreement (NAFTA) (which includes Mexico)
touched off a dramatic increase in trade and economic integration with the US. Given its
great natural resources, skilled labor force, and modern capital plant, Canada enjoys solid
economic prospects. Top-notch fiscal management has produced consecutive balanced
budgets since 1997, although public debate continues over how to manage the rising cost
of the publicly funded healthcare system. Exports account for roughly a third of GDP.
Canada enjoys a substantial trade surplus with its principal trading partner, the US, which
absorbs more than 85% of Canadian exports. Canada is the US' largest foreign supplier of
energy, including oil, gas, uranium, and electric power.
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0.20
1000000000000.00
0.15
800000000000.00
%
0.10
600000000000.00
0.05
400000000000.00
0.00
200000000000.00
0.00
-0.05
1 2 3 4 5 6 7 8 9 10 11 12 13
1991-2004
13.61
12.00
10.00
%
8.00
6.00
4.00
2.00
0.00
9.28
1.57
Agriculture
Share in GDP
214
Average population growth in the long run is 0.83% of total population per annum,
suggests a controlled demographic structure. The average CBR and CDR are 10 and 0.45
respectively leading to a low dependency ratio. A population density of 37.20 suggests
that the country is not as densely populated as other North American countries.
Net Migration rate per 1000 population is 2.96 in the long run is indicative of Canada
being a migration economy.
Labor market statistics show that that the average growth of domestic labor force in run is
marginal of 0.01% per annum with domestic unemployment rate being a high of 7.52%
of the total labor force. This indicates that with growth of labor force pegged at marginal
values, unemployment rate being high, Canada has historically inshored jobs to
international migrants.
Labor force - by occupational status: agriculture 2%, manufacturing 14%, construction
5%, services 75%, other 3% (2004)
Top 10 sending countries from 2002-2004
2002
Origin
country
Total
Number
2003
Origin
country
Number
2004
Origin country
Number
Total
235,824
229,040
Total
221,355
China
(excluding
Taiwan)
35,047
China
(excluding
Taiwan)
China
Taiwan)
37,318
India
28,183
India
31,669
India
27,419
Philippines
13,900
Pakistan
14,666
Pakistan
12,632
Pakistan
13,011
Philippines
11,543
Philippines
12,608
Iran (Islamic
8,156
Republic of)
Republic of
7,044
Korea
Republic of
7,279
Korea
Romania
(excluding
37,280
6,470
Iran (Islamic
6,092
Republic of)
Romania
5,816
United Kingdom
5,353
5,855
Romania
Republic of Korea
5,351
Sri Lanka
5,220
Colombia
4,600
Russia
4,751
Sri Lanka
4,757
109,369
Russia
4,474
All
other
100,230
countries
All
other
98,246
countries
5,593
Source: http://www.migrationinformation.org/GlobalData/countrydata/data.cfm
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Average Airfare Cost per head = 81786 BD Taka Comparatively much cheaper
Average GNS of 24.2 implies that with low inflation rate, the cost of living in Canada is
relatively expensive.
Marginal Propensity to Save = 0.24
Convertibility factor for BD= 23191 x 0.24 x 2 = 11132 USD per capita.
Diaspora Support & Socioeconomic profile
22525
20000
T h o u san d s
15000
12405
10000
6135
5000
0
1991
1996
2001
Religions: Non Muslim country with a composition of Roman Catholic 42.6%, Protestant
23.3% (including United Church 9.5%, Anglican 6.8%, Baptist 2.4%, Lutheran 2%),
other Christian 4.4%, Muslim 1.9%, other and unspecified 11.8%, none 16% (2001
census)
Languages: English (official) 59.3%, French (official) 23.2%, other 17.5%
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Score
1.38
1.13
1.96
1.57
1.75
1.99
Performance
Medium Low
Medium Low
High
Medium High
Medium High
High
1.63
Medium High
International Ranking = 14
ACCT, AfDB, APEC, Arctic Council, ARF, AsDB, ASEAN (dialogue partner), Australia
Group, BIS, C, CDB, CE (observer), EAPC, EBRD, ESA (cooperating state), FAO, G-7,
G-8, G-10, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICFTU, ICRM, IDA, IEA, IFAD,
IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITU, MIGA,
MINUSTAH, MONUC, NAFTA, NAM (guest), NATO, NEA, NSG, OAS, OECD, OIF,
OPCW, OSCE, Paris Club, PCA, PIF (partner), UN, UNAMSIL, UNCTAD, UNDOF,
UNESCO, UNFICYP, UNHCR, UNMOVIC, UNTSO, UPU, WCL, WCO, WFTU,
WHO, WIPO, WMO, WToO, WTO, ZC
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Low Risk
Moderate Risk
High Risk
217
HONG KONG
Hong Kong has a free market, center port economy, highly dependent on international
trade. Natural resources are limited, and food and raw materials must be imported. Gross
imports and exports (i.e., including re-exports to and from third countries) each exceed
GDP in dollar value. Even before Hong Kong reverted to Chinese administration on 1
July 1997, it had extensive trade and investment ties with China. Hong Kong has been
further integrating its economy with China because China's growing openness to the
world economy has made manufacturing in China much more cost effective. Hong
Kong's reexport business to and from China is a major driver of growth. Per capita GDP
is comparable to that of the four big economies of Western Europe.
The total size of GDP increased from 0.87 millions to 1.74 million USD from 1991-1997,
with an increasing average trend and thereafter has consolidated its position till 2004,
with negative growth rates from 1997. The total value of GDP in 2004 stood at 1.65
million USD, giving the average size of GDP during the thirteen years period a value of
1.57 million USD.
Trends in Per Capita GDP Growth
0.05
0.00
-0.05
-0.10
1 2 3 4 5 6 7 8 9 10 11 12 13 14
1991-2004
9 10 11 12
1992-2004
Per capita GDP growth has experienced similar trend to that of GDP, with negative
growth rates from 1998 till 2004. The average per capita GDP in the long run amounts to
3872.3 USD, indicating that income per head of the population is close to 4000 USD.
Although the Severe Acute Respiratory Syndrome (SARS) outbreak in 2003 also battered
Hong Kong's economy, a solid rise in exports, a boom in tourism from the mainland
because of China's easing of travel restrictions, and a return of consumer confidence
resulted in the resumption of strong growth from late 2003 through 2005.
On the equity part, a GINI index of 43.4 indicates that the development process has
trickled down to most of the lower income groups. Development has been highly
equitable.
An outward flow of remittances in average from Hong Kong equals to 2288.2 million
USD, indicating the average percentage ratio of remittance to per capita GDP of 59.1.
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Total remittance outflow to BD during 2002 amounted to 2.31 million USD with a sharp
decline registered in 2003, with the total remittance outflow at 1.31 million USD.
Economic Cost & Benefit of Migration
Average airfare per capita in Bangladeshi Taka amounts to a comparatively lower figure
of 87849. Again the airfare costs are normally high, considering the geographical
distance between BD and Hong Kong or China is relatively low, indicating the fact that
the use of informal channels to transfer migrants from BD has been used.
An average GNS of 31.6 implies that the per capita consumption levels have been
comparatively lower or alternatively the conversion factor of remittance outflow in the
future is optimistically high for BD, on the assumption of positive outlook on growth and
development in this major Asian business hub.
Marginal Propensity to Save = 0.32
Conversion factor for BD = 4000 x 0.3 x 2 = 2400 USD per head
Demographic Pressures and International Migration
The average total population of 27714 with a growth average of 1.55 is indicative of high
internal population growth. The economy is densely populated considering the average
population density to be as high as 844 people per square km of area.
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6000.00
0.03
5000.00
0.02
4000.00
0.02
3000.00
0.01
2000.00
1000.00
0.01
0.00
0.00
1
P e rc en ta g e
Manpower vs Unemployment
Thousands
6 7 8 9 10 11 12 13
1991-2004
10.3
Industry Share in
GDP
Agriculture
Share in GDP
4.47
2.49
219
dependency ratio; most of the jobs have been outsourced to cheap labor from LDCs.
Analyzing the period 1991-2004, the average supply of labor has increased at a trend
average of 0.02% per year with the growth decreasing from 1996 to 2004 at a marginally
lower rate of 0.01% on average. The labor force stood at 3.61 million in October 2005.
Migration for employment convention has generally happened in the services sectors
with the industry and the services sector being the major driver of economic growth in
Hong Kong. Looking at the labor force by occupational status, most of the labor forces
are occupied in the hotel and tourism industry followed by community and social
services.
Labor force - by occupational status:
Manufacturing 7.5%, construction 2.9%, wholesale and retail trade, restaurants, and
hotels 43.9%, financing, insurance, and real estate 19.6%, transport and communications
7.1%, community and social services 18.8%
note: above data exclude public sector (2005 est.)
Association for Democracy and People's Livelihood or ADPL [Frederick FUNG Kinkee]; Citizens party [Alex CHAN Kai-chung]; Democratic Alliance for the Betterment
and Progress of Hong Kong or DAB [MA Lik]; Democratic Party [LEE Wing-tat];
Frontier Party [Emily LAU Wai-hing]; Liberal Party [James TIEN Pei-chun]
note: political blocs include: pro-democracy - ADPL, Democratic Party, Frontier Party;
pro-Beijing - DAB, Liberal Party
Good Governance Scorecard
Sub Indicators
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Score
Performance
220
0.21
1.30
1.49
1.89
1.42
1.57
Poor
Medium Low
Medium Low
Medium High
Medium Low
Medium High
International
APEC, AsDB, BIS, ICC, ICFTU, IHO, IMF, IMO (associate), IOC, ISO (correspondent),
UPU, WCL, WCO, WMO, WToO (associate), WTO
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Low Risk
Moderate Risk
High Risk
221
IRELAND
The island of Ireland is divided into two countries - the south which is officially known
as The Republic of Ireland and Northern Ireland, which is part of the United Kingdom,
on the northern end of the island. The entire island of Ireland is divided into four
provinces and 32 counties of which 26 belong to the republic and six make up the country
of Northern Ireland. Throughout history the Irish have had a thirst for knowledge and
have made major contributions to the world. Their education system reflects this and is
probably one of the best in the world. The 26 counties that make up the Republic are as
varied as individual countries. Each has its own spectacular features and a rich history
that, woven together, form the fabric of the country we know as Ireland.
Ireland's economic boom during the 1990s brought unprecedented levels of prosperity
and helped transform it into a "country of immigration." For the first time in its history,
Ireland experienced a significant inflow of migrants - both workers and asylum seekers from outside the European Union (EU). To respond to this new and rapidly growing
phenomenon, immigration policies had to be developed in a very short period of time.
Remittance & Compensation to Employees
60
$350,000,000
$300,000,000
$250,000,000
$200,000,000
Millions
$150,000,000
$100,000,000
$50,000,000
$0
50
40
Thousands 30
20
1997-2003
10
0
Non-Irish
inflow s
(total)
Rest of
European
Union 15
United
States of
America
Average Remittance Potential i.e. the outflow of remittance to all countries during 20002004 has been comparatively lower at 455.6 Million USD. The outflow of remittance in
2004 stood at 358 millions of USD, a negative deviation of 97.6 million USD from the
average value.
Major Inflows by Broad Country of Origin
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historically high compared to other Northern European countries. The expatriate rate to
the total population in Ireland in 2002 was 17.5, revealing the fact on an average, 77805
Irish citizens emigrate to other countries in search for better opportunities.
Growth wise, from 1991 to 2004, the average size of GDP comes to 9696002411 USD
with the average GDP growth of 7.21%, the highest rate of economic growth experienced
among Northern Europe. The average
Sectoral Share of GDP
population size in thousands is 4446
18
thousands, with population growth
16.33
16
registering at the rate of 1.2% per annum.
15.36
14
Hence, the size of average per capita GDP
12
for Ireland comes to 29031 million USD,
10
making it one of the top contenders in
8
6
international ranking by per capita GDP.
Calculating the average RP to the average
value of per capita GDP, the outflow of
remittances per head is 15.7% of income
per head.
4
2
0
1.98
S1
Agriculture
Industry
Services
Share in GDP Share in GDP
Share in GDP
Airfare to reach Northern European countries vary within the average range from 85000
BD Taka 1, 00,000 BD Taka where the average cost of airfare to Ireland is
approximately about 88, 752 BD Taka, comparatively lower than the airfares to other
European countries. Given, the fact that Ireland is strategically located on major air and
sea routes between North America and Northern Europe, it gives the migrant a good
choice for changing destinations if circumstances prove deterrent to the migrant.
Long run average GNS is 30.1 indicating the propensity to save for Irishmen is 0.3 or
alternatively the propensity to consume goods and services is 0.7. Considering the
income tax rates for individuals, the rate of taxation generally varies from the range of
20% - 42% of gross income earned per individual. The VAT is at a maximum of 21%.
Considering the rate of taxation is relative very high, the average rate of GNS is a
competitive figure.
Demographic Pressures and International Migration
The surface in square kilometer of Ireland comes to 70.3 thousands, which gives us a
population density of 645 people per sq. km. on an average, indicating that the country is
densely populated. A population growth of 1.2% annually is reflective in the crude birth
rate of 14.5 per 1000 population and a very crude death rate of 0.4 per 1000 people. Intra
regional migration has also contributed to demographic pressures, with the United
Kingdom and other North European countries being adjacent to Ireland.
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In contrast, domestic labor market indicators show a very marginal increment of 0.01% in
the long run, coupled with a high domestic unemployment rate of 5.14% per annum,
clearly pointing out the fact that the labor mobility towards Ireland has increased, post
EU enlargement, to fill in the labor demand gaps.
Analyzing the average sectoral shares of GDP, Ireland has followed the path of
globalization to transform itself from an agrarian economy to a high technology industry
and services oriented economy, with industrial share of GDP scoring marginally higher
than the services share of GDP by 1% approximately. The most important industries in
Ireland, which have had the most contribution to government revenues are steel, lead,
zinc, silver, aluminum, barite, and gypsum mining processing; food products, brewing,
textiles, clothing; chemicals, pharmaceuticals; machinery, rail transportation equipment,
passenger and commercial vehicles, ship construction and refurbishment; glass and
crystal; software and tourism.
Social Inclusion and Economic Freedom
One of the main cultural characteristics of the Irish population is a preoccupation with
cultural identity and national character at the intellectual and artistic level. This has its
roots in a turbulent past, but it also stems from rapid social and economic changes to
which the country has been subjected in more recent times. Interest in the language and
literature reached its peak in the late 19th century Celtic Revival. The art and politics
became united in association of the language with a sense of a national identity.
Major Ethnic Groups: Celtic, English
Major Religions: Roman Catholic 88.4%, Church of Ireland 3%, other Christian 1.6%,
other 1.5%, unspecified 2%, none 3.5% (2002 census)
Major Languages: English (official) is the language generally used, Irish (official)
(Gaelic or Gaeilge) spoken mainly in areas located along the western seaboard
Human Development Index = 0.95
Development
High
Human
The evolution of Ireland's immigration policies since the late 1990s, and their impact on
the immigration and employment of non-nationals has been remarkable in many ways.
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A Supreme Court judgment in January 2003 removed the automatic right to permanent
residence for non-national parents of Irish-born children. This ruling followed a rapidly
increasing number of applications for asylum, some of which were thought to be
unfounded and in abuse of Ireland's asylum system and citizenship laws. More recently,
the government proposed a national "citizenship referendum" to eliminate an Irish-born
child's automatic right to citizenship when the parents are not Irish nationals. The public
overwhelmingly passed this referendum in June 2004.
With regard to labor immigration, Ireland has maintained policies that are among the
most liberal in Europe. In the absence of quotas, the number of work permits issued to
non-Irish migrant workers exploded from less than 6,000 in 1999 to about 50,000 in
2003. Moreover, the great majority of migrant workers have been legally employed in
relatively low-skilled occupations. This is in contrast to many other European countries'
labor immigration programs, which are regulated by quotas and often exclude low-skilled
occupations.
As another reflection of its relative openness to economic immigration, Ireland granted
citizens of the 10 new EU member states, free access to the Irish labor market
immediately upon EU enlargement on May 1, 2004. Only the UK and Sweden shared this
policy; all other countries of the pre-enlarged EU (EU-15) decided to continue
employment restrictions for accession state nationals.
Sub Indicators
Voice and Accountability
Political Stability
Government Effectiveness
Regulatory Quality
Rule of Law
Control of Corruption
Score
1.30
1.22
1.48
1.63
1.62
1.61
Performance
Low Medium
Low Medium
Medium
Medium
Medium
Medium
1.48
Medium
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Moderate Risk
High Risk
225
KUWAIT
Economic Growth & Development
Kuwait is a small, rich, relatively open economy with self-reported crude oil reserves of
about 96 billion barrels - 10% of world reserves. Petroleum accounts for nearly half of
GDP, 95% of export revenues, and 80% of government income. Kuwait's climate limits
agricultural development. Consequently, with the exception of fish, it depends almost
wholly on food imports. About 75% of potable water must be distilled or imported.
Kuwait continues its discussions with foreign oil companies to develop fields in the
northern part of the country.
1.00
15000
0.80
0.60
0.40
10000
0.20
5000
0
0.80
0.60
20000
1.00
Million USD
0.40
0.00
-0.20
0.20
-0.40
0.00
1 2 3 4 5 6 7 8 9 101112
-0.20 1 2 3 4 5 6 7 8 9 10 11 12 13
1991-2003
1991-2004
Average size of GDP from 1991-2004 is 3.3 billion USD, with a cyclical growth chart of
1.79 on an annual average basis. The average total population is 3078 thousands, which
give a descriptive per capita GDP
Sectoral shares of GDP
value of 15297 million USD, equal to
12.00
10.41
that of New Zealand. The per capita
10.00
GDP growth rate on average is a
7.21
8.00
6.15
negative value of 1.5, assuming a
6.00
positive growth outlook, would lead
4.00
to an uncontrolled demography in
2.00
Kuwait. Similar trends in the growth
0.00
chart of per capita GDP is observed
Agriculture Industry Share
Services
to that of the GDP growth rate, with
Share in GDP
in GDP
Share in GDP
the cyclical process observed from
1995 to 2003. On the question of equitable development, a GINI index of 71 implies
highly inequitable growth process, with the low income groups of the population
suffering the most.
The total value of remittance outflows to all countries is 1998 million USD, accruing to
almost 13% of PCGDP on an average. Kuwait has been a major remittance source
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country for Bangladesh with the value increasing from 27.3 million USD in 1991 to
380.4 million USD in 2004, the value
Remittance Flows to BD in Million USD
increasing 14 times to that in 1994.
It is worthwhile to note that the agricultural
share of GDP is the highest of 10.41, while
services and industry follow up with values of
7.21 and 6.15 respectively.
Demographic & Labor Market Features
400.00
350.00
300.00
250.00
200.00
150.00
100.00
50.00
0.00
1
11
13
1991-2004
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Convertibility factor for BD= 15300x 0.35 x 2 = 10710 USD per capita.
HDI & Socioeconomic Structure
HDI score of 0.84 is representative of regional development in the upper range and
indicates the commitment of investment in human development
Ethnic groups: Kuwaiti 45%, other Arab 35%, South Asian 9%, Iranian 4%, other 7%
Religions: Muslim 85% (Sunni 70%, Shi'a 30%), Christian, Hindu, Parsi, and other 15%
Languages: Arabic (official), English (widely spoken)
Government Migration Policy
Score
-0.48
0.29
0.55
0.10
0.65
0.71
Performance
Very Poor
Poor
Low
Poor
Low
Low
0.30
Poor
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Moderate Risk
High Risk
228
MALAYSIA
Malaysia, a middle-income country and one of the Asian tigers, transformed itself from
1971 through the late 1990s from a producer of raw materials into an emerging multisector economy. Growth was almost exclusively driven by exports - particularly of
electronics. As a result, Malaysia was hard hit by the global economic downturn and the
slump in the information technology (IT) sector in 2001 and 2002. GDP in 2001 grew
only 0.5% because of an estimated 11% contraction in exports, but a substantial fiscal
stimulus package equal to US $1.9 billion mitigated the worst of the recession, and the
economy rebounded in 2002 with a 4.1% increase. The economy grew 4.9% in 2003,
notwithstanding a difficult first half, when external pressures from Severe Acute
Respiratory Syndrome (SARS) and the Iraq War led to caution in the business
community. Growth topped 7% in 2004 and 5% in 2005. As an oil and gas exporter,
Malaysia has profited from higher world energy prices, although the cost of government
subsidies for domestic gasoline and diesel fuel has risen and offset some of the benefit.
Malaysia "unpegged" the ringgit from the US dollar in 2005, but so far there has been
little movement in the exchange rate. Healthy foreign exchange reserves, low inflation,
and a small external debt are all strengths that make it unlikely that Malaysia will
experience a financial crisis over the near term similar to the one in 1997. The economy
remains dependent on continued growth in the US, China, and Japan - top export
destinations and key sources of foreign investment.
The total size of GDP increased over a
linear increasing trend till 1991-1997,
with electronic product exports and FDI
from allied countries making rapid
progress in the economy, until global
hike in oil prices by the OPEC member
states to the G8 nations shook the
growth process, with the value of GDP
falling from 1.08 million USD to 0.73
million USD. The economy along with
the 5 Asian tigers, on account of
liberalized
policies
motivating
globalization, went into a huge recession
until the flow of foreign aid from key
exporting partners helped revive the
nation with growth again following a
rising trend from 1999 to 2004. The
GDP growth rate has been following
circular paths with economic booms and
recessions accompanying the growth
process. The value of GDP as it stood on
2004 is 1.18 million, showing that
economic reforms have bolstered the
economy in the right track. Overall, the
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120000000000.00
100000000000.00
80000000000.00
Million USD
60000000000.00
40000000000.00
20000000000.00
0.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Time Horizon
6 7 8 9 10 11 12
1993-2004
229
average size of the per capita GDP amounts to 3872.3 million USD, comparatively on the
lower side than the average GDP figure of 9121 million USD. This reveals that migration
has been the key factor underpinning economic growth during the last decade in
Malaysia.
Average Remittance Potential of 2288.21 million USD in the long run i.e. the outflow of
remittances from Malaysia to all countries have been an average amount of 2288.21
annually. The remittance flows to Bangladesh from 1993-2004, has followed a peculiar
trend with the outflow of remittance sharply jumping in 1994 from 1993, with further rise
till 1996, then again sharply falling and rising back to regain strength, indicating a long
term cyclical growth process. The economic booms and recessions in the migration
economy have been on account of various human rights problems in Malaysia, with
trafficking and use of informal channels to migrate have been the current policy focus
presently.
The average percentage of the ratio of remittances to per capita GDP in the long run
comes to 0.6, comparatively high.
Economic Cost & Benefit of Migration
A one way ticket to Malaysia from Bangladesh would cost an average amount of 91719
BD Taka. Comparing it with Bangladeshs neighboring country India, average airfare
costs a minimum of Rs. 20,000/-. Comparatively such high costs to its south eastern
neighbors are unusually high per head of the population. Such high costs are also
reflective of the use of informal sea routes, where international migrants are subject to
high risks of crossing borders, making them conducive to exploitation and trafficking
along with unpredictable natural and or environmental disasters.
On the benefits side, the multicultural aspects of the globalization in Malaysian economy
are by and far the largest asset of the nation coupled with a low cost of living in major
industrial clusters. This is explained by the average GNS of 37.81% of GDP,
comparatively higher than most neighboring economies. The marginal propensity to
consume is comparatively lower amongst the top 50 economies in our research. This in
turn equates an average marginal propensity to save of 0.4 out of unity, on an annual
basis. The convertibility factor, in turn for BD, on the assumption of positive future
outlook till the MDG deadlines, is optimistically high.
Demographic Pressures and International Migration
A total population of 27714 thousands with net migration of 75000 thousand per year
coupled with international refugees of 25 thousands as on 2004, makes Malaysia,
historically descriptive of an important migration economy.
Looking through the demographic changes as indicated by the population growth
accompanying the years - 1991-2004, the average trend of 0.3 till 1995 and 0.2
percentage changes in the next years till 2004 is observed.
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The total size of the population at the end of 2004 amounts to 24894, a negative deviation
of 10.2% from the average figure of 27714. The average growth of domestic population
is in turn supported by a high average CBR of 19.5 and a marginally lower death rate of
0.57 on an annual average basis.
Labor market participation as indicated by the supply of manpower vis--vis labor force,
is an average total of 14320 from 1991Trends in Population Growth
2004, almost half the amount of total
100000
domestic population. On an average
basis, long term trend in the growth of 10000
labor indicates a marginal increment of
1000
0.02% over previous years, making the
dependency ratio higher for Malaysia.
100
This clearly spells out the fact, that
10
majority of the business processes and
1
the liberalization of the services sector
1 2 3 4 5 6 7 8 9 10 11 12 13 14
with the help of external economic aid
0.1
has been offshored to international
0.01
productive labor pools.
Population (total)
1991-2004 Population Growth
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of China, the Philippines, and Vietnam on conducting marine seismic activities in the
Spratly Islands; disputes continue over deliveries of fresh water to Singapore, Singapore's
land reclamation, bridge construction, maritime boundaries, and Pedra Branca
Island/Pulau Batu Putih - but parties agree to ICJ arbitration on island dispute within
three years; ICJ awarded Ligitan and Sipadan islands, also claimed by Indonesia and
Philippines, to Malaysia but left maritime boundary in the hydrocarbon-rich Celebes Sea
in dispute, culminating in hostile confrontations in March 2005 over concessions to the
Ambalat oil block; separatist violence in Thailand's predominantly Muslim southern
provinces prompts measures to close and monitor border with Malaysia to stem terrorist
activities; Philippines retains a now dormant claim to Malaysia's Sabah State in northern
Borneo; in 2003, Brunei and Malaysia ceased gas and oil exploration in their disputed
offshore and deepwater sea beds and negotiations have stalemated prompting
consideration of international adjudication; Malaysia's land boundary with Brunei around
Limbang is in dispute; piracy remains a problem in the Malacca Strait.
Good Governance Scorecard
Sub Indicators
Voice and Accountability
Political Stability
Government Effectiveness
Regulatory Quality
Rule of Law
Control of Corruption
Score
-0.36
0.38
0.99
0.44
0.52
0.29
Performance
Very Poor
Low
Medium Low
Low
Low
Low
0.38
Low
International
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Moderate Risk
High Risk
233
NORWAY
0.05
0.00
-0.05
-0.10
1
0.20
0.15
0.10
0.05
0.00
-0.05
-0.10
-0.15
-0.20
9 10 11 12 13
1991-2004
1 2 3 4 5 6 7 8 9 10 11 12 13
1991-2004
of the GDP in the long run amounts to 1.74 million USD, with GDP growth rate
following similar cyclical trends till 2003, as that of per capita GDP with growth rate
being positive in the year 2004.
Remittance outflow in the long run amounts to an average of 727 million USD, equating
the remittance potential per capita to be 15.33%.
Economic Cost & Benefit of Migration
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On the expenditure side, average airfare cost of 94944 USD per head is reflective of
average airfare costs to European countries.
Total population of 4741 thousands with a growth rate of 0.5% annually indicates that the
demographic structure is small relative to other EU countries. Average net migration rate
of 2.6 per 1000 population, indicates that the long run average migration amounts to a
figure of 12 thousands. The total migrant stock during the 5 year period from 2000-2005
is 344 thousands, almost 7.4% of the total
Supply of Labor vs Growth
population. In addition, Norway also holds 10000.00
44thousand refugee seekers, adding to the
1000.00
population pressure. However, a population
density of 155 people per square km. implies
100.00
that the country is not as densely populated
10.00
1991-2004
as other Northern European counterparts.
1.00
This is supported by the fact that the crude
1 2 3 4 5 6 7 8 9 10 11 12 13 14
birth rates and death rates have been
0.10
reflective of the development in its
0.01
demographic system, with average CBR
0.00
being 11.5 and a death rate of 0.53.
Supply of Labor
-6
-4
-2
9 .6 6
P e rc e n ta g e
Growth of Labor
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10
12
Religions: Church of Norway 85.7%, Pentecostal 1%, Roman Catholic 1%, other
Christian 2.4%, Muslim 1.8%, other 8.1% (2004)
Languages: Non English speaking country - Bokmal Norwegian (official), Nynorsk
Norwegian (official), small Sami- and Finnish-speaking minorities.
note - Sami is official in six municipalities
Government type: constitutional monarchy
Center Party [Aslaug Marie HAGA]; Christian People's Party [Dagfinn HOYBRATEN];
Coastal Party [Roy WAAGE]; Conservative Party [Erna SOLBERG]; Labor Party [Jens
STOLTENBERG]; Liberal Party [Lars Henrick MICHELSEN]; Progress Party [Siv
JENSEN]; Red Electoral Alliance [Torstein DAHLE]; Socialist Left Party [Kristin
HALVORSEN]
Good Governance Scorecard
Sub Indicators
Voice and Accountability
Political Stability
Government Effectiveness
Regulatory Quality
Rule of Law
Control of Corruption
Score
1.53
1.53
1.97
1.33
1.95
2.11
Performance
Medium
Medium
High
Medium Low
High
Very High
1.74
High
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International
Moderate Risk
High Risk
236
OMAN
M i lli o n U S D
Oman is a middle-income economy in the Middle East with notable oil and gas resources,
a substantial trade surplus, and low
inflation. Work on a new liquefied natural
Remittance Flows to BD
140.00
gas (LNG) facility progressed in 2005 and
120.00
will contribute to slightly higher oil and
100.00
gas exports in 2006. Oman continues to
80.00
liberalize its markets and joined the World
Trade Organization (WTO) in November
60.00
2000. To reduce unemployment and limit
40.00
dependence on foreign labor, the
20.00
government
is
encouraging
the
0.00
replacement of foreign expatriate workers
1991-2004 1 2 3 4 5 6 7 8 9 10 11 12 13 14
with local workers. Training in
information technology, business management, and English support this objective.
Industrial development plans focus on gas
resources,
metal
manufacturing,
Trend in Per Capita GDP
petrochemicals,
and
international
0.30
transshipment ports. In 2005, Oman signed
0.20
agreements with several foreign investors
to boost oil reserves, build and operate a
0.10
power plant, and develop a second mobile
phone network in the country.
0.00
1 2 3 4 5 6 7 8 9 10 11 12 13
-0.10
-0.20
1992-2003
Sectoral Shares of GDP
20
16.2
15
9.62
10
%
5
0
-0.48
-5
Agriculture
Industry
Services
Share in GDP Share in GDP Share in GDP
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showing that the development process has been inequitable and skewed towards
wealthier income groups.
Looking at the sectoral components of GDP, liberalization of the economy has been on
the platform of services share of GDP leading the race with a value of 16.2, followed by
industry share of GDP 9.6 and agriculture being the least of all with a negative value of
0.48. Major export intensive industries have been crude oil production and refining,
natural and liquefied natural gas (LNG) production; construction, cement, copper, steel,
chemicals, optic fiber.
Demographic Features
Population pressures are not as high as other Middle Eastern countries. A population
density of 93.6 is reflective of a spread out population within domestic borders with a
high population growth rate of 2.1% on an annual average. This shows that policy
measures to correct the demographic imbalances, further substantiated by an extremely
high crude birth rate of 23.5 per 1000 population and an extremely low death rate of 0.77
per 1000 population, has been ineffective.
However on the migration forefront, lack of correct statistical data, has failed to capture
Oman as a country of immigration. The total migrant stock in 2005 was 628 thousands,
representing 24.4% of total population of 2567 thousands in 1995. In the five year period
from 2000-2005, net migration rate per 1000 people is a negative figure of 12.8, implying
that Oman has been a net country of emigration.
Economic Cost & Benefit of Migration
Average Airfare Cost per head = 95202 BD Taka Representative of regional average
airfare to Middle Eastern countries.
Average GNS of 19.6 implies that with low inflation rate, the cost of living in Oman is
relatively high
Marginal Propensity to Save = 0.2
Convertibility factor for BD= 7224 x 0.2 x 2 = 2290 USD per capita.
HDI & Socioeconomic Structure
HDI score of 0.78 is representative of regional development in the upper medium range
and comparatively competes with Malaysia and Philippines in this context.
Ethnic groups: Arab, Baluchi, South Asian (Indian, Pakistani, Sri Lankan, Bangladeshi),
African
Religions: Ibadhi Muslim 75%, Sunni Muslim, Shi'a Muslim, Hindu
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National Leaders
Chief of state: Sultan and Prime Minister QABOOS bin Said al-Said (sultan since 23 July
1970 and prime minister since 23 July 1972)
Note - the monarch is both the chief of state and head of government
Head of government: Sultan and Prime Minister QABOOS bin Said al-Said (sultan since
23 July 1970 and prime minister since 23 July 1972)
Note - the monarch is both the chief of state and head of government
Cabinet: Cabinet appointed by the monarch
Elections: none; the monarch is hereditary
Good Governance Scorecard
Sub Indicators
Voice and Accountability
Political Stability
Government Effectiveness
Regulatory Quality
Rule of Law
Control of Corruption
Score
-0.90
0.76
0.91
0.43
0.98
0.78
Performance
Very Poor
Medium Low
Medium Low
Low
Medium Low
Medium Low
0.49
Medium Low
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Moderate Risk
High Risk
239
QATAR
Ruled by the al-Thani family since the mid-1800s, Qatar transformed itself from a poor
British protectorate noted mainly for pearling into an independent state with significant
oil and natural gas revenues. During the late 1980s and early 1990s, the Qatari economy
was crippled by a continuous siphoning off of
Rem ittance Flow from Qatar to Bangladesh
petroleum revenues by the Amir, who had
ruled the country since 1972. His son, the
140.00
current Amir HAMAD bin Khalifa al-Thani,
120.00
overthrew him in a bloodless coup in 1995.
100.00
In 2001, Qatar resolved its longstanding
Million 80.00
USD
border disputes with both Bahrain and Saudi
60.00
40.00
Arabia. Oil and natural gas revenues enable
20.00
Qatar to have one of the highest average per
0.00
capita incomes in the world of 28050.64
1
3
5
7
9 11 13
million USD, with the Unites Sates of
1991-2004
America and Netherlands, making them the
top rankers in the global economy.
Analyzing the remittance flows from Qatar to Bangladesh from 1991-2004, the flow of
remittance since 2001 has doubled its value on account of Qatars resources on oil and
natural gas industries and on the policy of the Government of Qatar to recruit lowmedium skilled workforce to generate financial revenues, thus fuelling economic growth.
The value of remittance to BD as it stood on 2004 was of the amount 125.3 Million USD,
reflecting a percentage jump of 122% over the value of remittance as it stood on 1991.
Hence, historically Qatar has been an important source of remittance for Bangladesh.
Considering, the average remittance flows from 1991-2004 to all countries from Qatar,
the amount equals to 14420604395.61 Million USD. This is supported by the fact that the
average net migration rate is 20 per 1000 people i.e. the economys policy have been
historically migration oriented.
Trend in Per Capita GDP
Trend in GDP
30000000000.00
25000000000.00
Value in 20000000000.00
Current 15000000000.00
Million USD 10000000000.00
5000000000.00
0.00
35000.00
30000.00
25000.00
20000.00
Million USD
15000.00
10000.00
5000.00
0.00
1 2 3 4 5 6 7 8 9 1011121314
1
11
13
1991-2004
1991-2003
National Accounts archives reveal that average GDP growth has been on an increasing
trend over the years at the rate of 1%. Time series analysis yields us that from 1991-2004,
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the value of GDP increased by 313%. Average total population for the same period was
904 thousands, making the per capita GDP
Average Ratio of Remittance to Per Capita GDP figures 28050.64 Million USD, making it one
2004
of the top three economies around the world.
Average Remittance flow to BD from Qatar
during the year 2004 is 34%.
34%
Per Capita GDP
Remittance Potential
66%
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Looking at the labor market indicators, the average growth of economically active
persons i.e. the growth of domestic labor force have been incrementing at a rate of 0.2%
per annum, with unemployment rate being negative at an average of 0.95% of active
labor force, reflecting the very fact that the economy is a labor surplus economy. The
supply of labor as it stood on 2004 totals to 594 thousands, reflecting 7.3% change over
the supply of labor in 1991. This once again reinstates the fact that besides natural gas
and oil exports, which provides the Qatar Government most of the revenues, migration
has been historically fuelling economic growth over the last decade or so.
The average long run industrial share of GDP is 20.74 followed by services share of GDP
of 1.11% and a negative share of agriculture
Average Sectoral Composition of GDP
amounting to 13.2%. The major industries
are crude oil production and refining,
ammonia, fertilizers, petrochemicals, steel
20.74
25
reinforcing bars, cement, commercial ship
20
repair, which has provided the Government
15
with positive trade balance, since 2001. In
10
1.11
fact, Government policies have realigned
Percentage 5
themselves to attract foreign investment.
0
In general, foreign investment is limited at 49
percent, with the Qatari partner(s) holding at
least 51 percent. It should be noted that
foreign firms continue to be required to use a
local agent for the purposes of immigration
(sponsorship and residence of employees).
-5
-10
-15
-13.18
Agriculture Industry Share Services Share
Share in GDP
in GDP
in GDP
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Score
-0.79
0.92
0.87
-0.16
0.79
0.55
Performance
Very Poor
Medium Low
Medium Low
Very Poor
Medium Low
Low
0.36
Low
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Moderate Risk
High Risk
243
SAUDI ARABIA
In 1902, ABD AL-AZIZ bin Abd al-Rahman Al Saud captured Riyadh and set out on a
30-year campaign to unify the Arabian Peninsula. A son of ABD AL-AZIZ rules the
country today, and the country's Basic Law stipulates that the throne shall remain in the
hands of the aging sons and grandsons of the kingdom's founder. Following Iraq's
invasion of Kuwait in 1990, Saudi Arabia accepted the Kuwaiti royal family and 400,000
refugees while allowing Western and Arab troops to deploy on its soil for the liberation
of Kuwait the following year. The continuing presence of foreign troops on Saudi soil
after Operation Desert Storm remained a source of tension between the royal family and
the public until the US military's near-complete withdrawal to neighboring Qatar in 2003.
The first major terrorist attacks in Saudi Arabia in several years, which occurred in May
and November 2003, prompted
Rem ittance Flow s to Bangladesh
renewed efforts on the part of the
Saudi government to counter domestic
terrorism and extremism, which also
1600.00
coincided with a slight upsurge in
1400.00
media freedom and announcement of
1200.00
1000.00
government plans to phase in partial
Million USD 800.00
political representation. As part of this
600.00
effort, the government permitted
400.00
elections - held nationwide from
200.00
0.00
February through April 2005 - for half
1 2 3 4 5 6 7 8 9 1011 12 13 14
the members of 179 municipal
1991-2004
councils. A burgeoning population,
aquifer depletion, and an economy
largely dependent on petroleum output
and prices are all ongoing governmental concerns.
P e rc e n ta g e
The Remittance Potential in the long run amounts to an average of 14940.36 million
USD. Dividing it by the average long run population of 27992 thousands, gives us a
value of 15.7 million USD remittances per capita. Looking at the historical time series
data from 1991-2004, the outflow of
Trend in GDP Growth Rate
remittances has generally increased,
with an almost 100% rise in the size of
0.30
remittance from 1998-1999 to 20030.25
2004. This is on part of the GCC
0.20
country members to have opened up its
0.15
gas & natural oil reserves to the world,
0.10
0.05
with the maximum employment taking
0.00
from the Least Developed Countries.
-0.05
1 2 3 4 5 6 7 8 9 10 11 12
In fact, the average total value of
-0.10
remittance sent to Bangladesh from
-0.15
1998 2004 was the highest source of
1991-2004
revenue for the BD Government, with
the value being 1510.5 million USD
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13
on 2004-2005.
Average annual net migration of 2.2 per 1000 people for the 200-2005 period is
indicative, that there has been a net influx of 2 or more people per 1000 population on
average, giving the total migration quantum of 50 thousand people during the above
mentioned years.
On the income side, average GDP growth in the long run has increased at the rate of 2.92
% per annum. Time series analysis from 1991-2004, reveals that the growth process has
been fairly cyclical with the economy experiencing economic booms associated with
recessions, every couple of years till 1998, with the highest growth of .23% reflected in
1995. Post millennium, the growth process has been fairly solid with growth forecast to
rise positively post 2004. The size of the GDP, according to UN records in 2004 stood at
224541 million USD.
Per capita GDP on average has been growing at almost half of the rate of GDP, with the
value being 1.41% annually, owing to the fact that the social and demographic structure
has been mostly uncontrolled with Saudi Arabia serving as a refugee country of
Palestinians and situated at the strategic position for the US Defense Forces for the war in
Afghanistan and Iraq, Lebanon and the long historic battle between the Israel and the
Palestinians and a crucial transit point for transit of illicit drugs in the Arab countries.
Economy wise, Saudi Arabia has been an economic aid donor for the Muslim countries.
The distribution of family income and as an overall measurement of sustainable and
equitable growth is concerned, a GINI index of 71 shows that growth has not been
equitable and is heavily skewed towards higher income groups.
Economic Cost & Benefit of Migration
An average airfare cost of 98169 BD Taka is relatively high, using the formal legal
remittance channels. Such high cost reflects the consideration of the use of informal
routes to reach Saudi Arabia, considering the immigration trends during the last decade,
where the movement of low and unskilled workers to the Middle Eastern countries has
taken place. The high airfare cost in this case is not representative or fails to catch the
informal statistics, which has not been available from reliable international sources.
According to IOM, irregular migration occurs throughout the Middle East, with all
countries involved as origin, transit and destination points. There is sporadic evidence
that both smuggling and trafficking of persons occur regularly and on a large scale.
Reports of migrant smuggling and trafficking in persons appear frequently in the
international media and the local press also increasingly reports on the fate of Arab
workers being moved by trafficking rings, as well as foreigners being trafficked into the
region.
However on the benefits of migration- as captured by the long run average GNS- the
figure amounts to 28.1% of average GDP in the long run. Hence the average Gross
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27,992 thousands is the average total population for Saudi Arabia with growth being at
2.3% in the long run. Trend analysis from 1991-2004 reveals that population growth has
increased at a constant rate of 0.3% annually, with the total size of population increasing
from 16912 thousands in 1991 to 23950 on 2004, a 41% growth over the 13 years. A
population density of 130 people per square kilometer of arable land reflects that the
concentration of people living in Saudi Arabia is spread out comfortably. In addition,
Saudi Arabia has been a country of refuge of Palestinians, with the estimated number of
refugees at 241 thousands in 2004, adding to demographic pressures. This is also
reflected in the fact that the average CBR is substantially high of 25 and an usually low
death rate of 0.71, making it one of the top most immigrating populated economy in the
Middle East. The country also faces a demographic tidal wave, with 56 per cent of the
population aged below 20. These cohorts will place a severe strain on the labor market in
the next two decades, requiring for their absorption the creation of about 100,000 new
jobs every year.
Percentage
An important part of the population is the labor market scenario among the GCC member
states, which houses the maximum number of low-medium skilled workers from South
Asian countries and the policies
Average Sectoral Shares of GDP
prevalent in the region is indicative
of the migratory trends for
10
9
employment convention. The supply
8
7
of low to medium skilled workers in
6
the Gulf region from the South Asian
5
4
countries shows an increasing trend
3
with growth being marginally low of
2
1
0.3% on an annual average. The
0
domestic
labor
market
Agriculture Share in Industry Share in GDP Services Share in GDP
GDP
unemployment rate of 4.5 is by far
the highest in the region, with the
average growth of labor force being marginal at 0.3% of the total labor force from 19912004. The unwillingness of the Saudi domestic workforce to engage in low-medium
skilled jobs has necessitated the Government of Saudi Arabia to import labor from South
Asian countries especially Bangladeshi workers, to fill in the demand gap arising out of
the domestic workforce situation among the GCC member states. It is also worthwhile to
note that the gender dimension of labor migration to the Middle East has had serious
negative implications on the overall image regarding the process of migration in the
countries of origin, with trafficking and exploitation of female migrants and child labor
used for the tourism economy receiving special attention in this case.
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Services share of GDP is the highest of 9.45 followed by an industry share of 6.12 and
agricultural share of 2.21 percentage of total GDP in the long run. This is descriptive of
the labor migratory trends as mentioned above with the non-oil producing countries
supplying mass labor to meet the demand arising out of domestic unemployment. The
major industries in Saudi Arabia are crude oil production, petroleum refining, basic
petrochemicals; ammonia, industrial gases, sodium hydroxide (caustic soda), cement,
fertilizer, plastics; metals, commercial ship repair, commercial aircraft repair,
construction, while the main agricultural products being wheat, barley, tomatoes, melons,
dates, citrus; mutton, chickens, eggs, milk.
Social Inclusion and Economic Freedom Ethnic Groups, Language Problem
Female exploitation, human trafficking, child racketing have been historically part and
parcel of this Muslim country. Cases of sexual harassment, humiliation, severe beatings
and delayed salaries have driven a number of housemaids to escape from their employers.
In December 2002, the King Fahd General Hospital in Jeddah received several cases of
housemaids with serious fractures caused by falls sustained in attempts to flee employers
by jumping out of windows in high-rise apartments. The press also reported cases of
housemaids attempting suicide in the same year. The demand for female migrants in the
Middle East has increased, particularly in the service industries, through the creation of
low and unskilled jobs that migrant women are willing to take, while the local population
is reluctant to do so. These jobs are filled by women from the developing countries of
Asia, principally Sri Lanka, the Philippines, Indonesia, Thailand, Bangladesh, Pakistan
and India. The majority tend to work in private households as domestic workers, but also
in the hotel and entertainment industries, the latter being the source of the presence of a
profiting sex industry.
Major Ethnic Groups: Arab 90%, Afro-Asian 10%; Major Religion: Muslim 100%
Major Language: Arabic
cabinet: Council of Ministers is appointed by the monarch and includes many royal
family members
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Consultative Council or Majlis al-Shura (120 members and a chairman appointed by the
monarch for four-year terms); note - in October 2003, Council of Ministers announced its
intent to introduce elections for half of the members of local and provincial assemblies
and a third of the members of the national Consultative Council or Majlis al-Shura,
incrementally over a period of four to five years; in November 2004, the Ministry of
Municipal and Rural Affairs initiated voter registration for partial municipal council
elections held nationwide from February through April 2005.
Judicial branch: Supreme Council of Justice
A Good Governance Score of -0.38 implies that the overall governance structure is not
functioning appropriately to emerging international policy issues & challenges.
Global Competitiveness Index & International Ranking
Saudi Arabia ranks second on the GCI formulated by the World Economic Forum on
account of its per capita GDP, international trade surpluses and the use of technological
innovations in the services sector fuelling growth in this migration oriented economy.
International Organization Participation
ABEDA, AfDB, AFESD, AMF, BIS, FAO, G-77, GCC, IAEA, IBRD, ICAO, ICC,
ICRM, IDA, IDB, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IPU, ISO, ITU,
LAS, MIGA, NAM, OAPEC, OAS (observer), OIC, OPCW, OPEC, PCA, UN,
UNCTAD, UNESCO, UNIDO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO,
WToO
Country Risk Barometer
Average Country Composite Risk Score in 2003 = 82
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Low Risk
Moderate Risk
High Risk
248
SINGAPORE
Singapore was founded as a British trading colony in 1819. It joined the Malaysian
Federation in 1963 but separated two years later and became independent. Singapore
subsequently became one of the world's most prosperous countries with strong
international trading links (its port is one of the worlds busiest in terms of tonnage
handled) and with per capita GDP equal to that of the leading nations of Western Europe.
Singapore offers a multicultural mosaic of immigrants from all over the world and is the
most progressive among the Asian economies.
Singapore, a highly-developed and successful free-market economy, enjoys a remarkably
open and corruption-free environment, stable prices, and a per capita GDP equal to that
of the four largest West European countries. The economy depends heavily on exports,
particularly in electronics and manufacturing. It was hard hit in 2001-03 by the global
recession, by the slump in the technology sector, and by an outbreak of Severe Acute
Respiratory Syndrome (SARS) in 2003, which curbed tourism and consumer spending.
The government hopes to establish a new growth path that will be less vulnerable to the
external business cycle and will continue efforts to establish Singapore as Southeast
Asia's financial and high-tech hub. Fiscal stimulus, low interest rates, a surge in exports,
and internal flexibility led to vigorous growth in 2004, with real GDP rising by 8% - by
far the economy's best performance since millennium.
Reliable statistical data on international migration in Singapore is mostly unavailable.
The net migration in thousands is 187.50 in the long run. This indicates that the economy
is migration oriented economy i.e. there is a net influx of 188 immigrants annually. The
net migration rate per 1000 people for the years 2000-2005 is 9.6, the highest among the
Asian economies.
Trend in GDP
120000000000.00
30000.00
100000000000.00
25000.00
Value in 20000.00
Current Bn 15000.00
USD 10000.00
Series1
5000.00
0.00
1
1991-2004
11
13
80000000000.00
60000000000.00
40000000000.00
20000000000.00
0.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14
1991-2004
The average long run GDP growth rate of 2.5% is one of the best performing economies
in Asia. The value of the GDP as in 2004 was 106822253798 billion USD. The total
population in thousands as on 2004 was 4273, with population growth rates showing
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minimal increment over the time horizon from 1991-2004. Hence, with GDP being the
most progressive and demography showing constancy, average per capita GDP for
Singapore being 21363.7 has matched the progress path of growth and development.
An average GINI index of 42.50 supports the above statement and reinstates that
distribution of growth in income has been equitable, considering the fact 45 is the
average for the developed countries.
Economic Benefit of Migration GNS Outflow of Remittance
V alue in M illion US D
Trends in GNS
100000.0
80000.0
60000.0
40000.0
20000.0
0.0
40000.0
20000.0
0.0
1 2 3 4 5 6 7 8 9 101112131415161718
1987-2004
1998-2004
The average long run GNS is 46.7, indicates the very fact that marginal propensity to
save is almost 0.5 out of unity. This in turn provides us an intuitive sketch of the value of
remittance outflow, since it is out of personal savings that international migrants send
their remittances to the country of origin. This also provides us the fact that the cost of
living in Singapore is pretty low, when compared globally. Hence, the economic
incentive to migrate to Singapore from Bangladesh is high, since by assumption, the
marginal propensity to save for Bangladeshis is double than their foreign counterparts.
Hence, the convertibility factor of generating remittance from Singapore to Bangladesh is
potentially high.
Economic Cost of Migration Airfare Geographical Proximity
The economic cost of migration as reflected by the cost of airfare from BD is 98814 per
head, which considering the geographical proximity from BD to Singapore is almost as
high as to the most of the developed countries like North American countries. There are 9
airports, in total as on 2006. Since, Singapore is a city state in itself, internal
transportation costs are low.
Human Development Index
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Percentage
The average total population is 4608 thousands people coupled with the fact that average
population growth rate is 1.1% implies that domestic demographic pressures are
comparatively lower. However, an average
Trend in Unemployment rate & Growth of Labor
population density of 68774 per square km.
0.04
6.00
indicates that the concentration of peoples
0.03
5.00
0.03
4.00
living in one square kilometer of area is really
0.02
3.00
high.
0.02
0.01
0.01
0.00
2.00
1.00
Behind the facade of a modern city, these ethnic races are still evident. The areas for the
different races, which were designated to them by Sir Stamford Raffles, still remain
although the bulk of Singaporeans do think of themselves as Singaporeans, regardless of
race or culture. Each still bears its own unique character.
The old streets of Chinatown can still be seen; the Muslim characteristics are still
conspicuous in Arab Street; and Little India along Serangoon Road still has its distinct
ambience. Furthermore, there are marks of the British colonial influence in the NeoClassical buildings all around the city.
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Percentage
The Malays in Singapore are Muslims. A few of the Indians are also Muslims, but even
more uncommon are the Chinese Muslims. Islam has a fundamental influence in the lives
of those who follow the Prophet of Allah, Muhammad. The religion involves praying five
times a day, eating only "halal" food, fasting during Ramadan, and going to Mecca on the
Haj (pilgrimage). Each racial group has its own distinctive religion and there are colorful
festivals of special significance all year round. Although the festivals are special to
certain races, it is nonetheless enjoyed by all.
Major Ethnic Groups: Chinese 76.8%, Malay 13.9%, Indian 7.9%, other 1.4% (2000
census)
Major Religions: Buddhist 42.5%, Muslim 14.9%, Taoist 8.5%, Hindu 4%, Catholic
4.8%, other Christian 9.8%, other 0.7%. (2000 census)
Major Languages: Mandarin 35%, English 23%, Malay 14.1%, Hokkien 11.4%,
Cantonese 5.7%, Teochew 4.9%, Tamil 3.2%, other Chinese dialects 1.8% (2000 census)
Government Transnational Issues Migration Policy Good Governance
Indicator
Government Type: Parliamentary Republic
Transnational Issues: Disputes persist with Malaysia over deliveries of fresh water to
Singapore, Singapore's extensive land reclamation works, bridge construction, maritime
boundaries, and Pedra Branca Island/Pulau Batu Putih - parties agree to ICJ arbitration on
island dispute within three years; Indonesia and Singapore pledged in 2005 to finalize
their 1973 maritime boundary agreement by defining unresolved areas north of Batam
Island; piracy remains a problem in the Malacca Strait.
Good Governance Indicator
Average Good Governance score
1.62
Medium
APEC, ARF, ADB, ASEAN, BIS, C, CP, EAS, G-77, IAEA, IBRD, ICAO, ICFTU,
ICRM, IDA, IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, IPU, ISO, ITU, MIGA,
NAM, OPCW, PCA, UN, UNCTAD, UPU, WCL, WCO, WHO, WIPO, WMO, WTO
Global Competitiveness Index & International Ranking
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Low Risk
Moderate Risk
High Risk
252
SWITZERLAND
Switzerland is a peaceful, prosperous, and stable modern market economy with a highly
skilled labor force, and an average per capita GDP of 36840.5USD, larger than that of the
big Western European economies. The Swiss in recent years have brought their economic
practices largely into conformity with the EU's to enhance their international
competitiveness. Switzerland remains a safe haven for investors, because it has
maintained a degree of bank secrecy and has kept up the franc's long-term external value.
Trends in Per Capita GDP
45000
0.20
0.15
0.10
0.05
Percentage
0.00
0.05
0.10
0.15
40000
35000
30000
Million USD
25000
20000
15000
10000
5000
0
1
9 10 11 12 13
1 2 3 4 5 6 7 8 9 10 11 12 13 14
GDP Growth
1991-2004
1991-2003
Looking at the GDP growth from 1991-2004, the economy has experienced long term
cyclical growth complimented with economic booms and recessionary periods. However
the last 4 years has proved to be regenerative in terms of income growth. The average
size of the GDP during the above mentioned period amount s to 2.6 million USD. Per
capita GDP has grown at average increasing trend of 1.04% annually marginally lower
than the average GDP growth rate of 1.23 owing to a better demographic and
socioeconomic structure of the economy.
Switzerlands total pie of remittances as measured by the average RP amounts to 10097.7
million USD, which in turn, gives a percentage ratio of 27.4.
NB: Remittance outflow data to BD is not available
Economic Cost & Benefit of Migration
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On the expenditure side, average airfare costs are reflective of the overall airfare costs to
Southern European economies.
Thousands
An average net migration rate of 1.1 per 1000 people considering total population of
7302 thousands indicates that the
Unemployme nt vs Manpowe r Supply
total migrant population in a year
4950
0.004
is 8.4 thousands. Domestic
0.004
4900
population growth has been
0.003
4850
0.003
growing marginally at the rate of
4800
0.002
0.11%, reinstating the fact of high
4750
0.002
average per capita GDP figure. In
4700
0.001
addition, 48 thousands refugee
4650
0.001
seekers, from bordering countries
4600
0.000
has increased the inflow of
1 2 3 4 5 6 7 8 9 10 11 12 13 14
1991-2004
population in the demography of
Supply of Labor
Growth of Labor
Switzerland. A population density
of 1825.6 people per sq. km.
implies that the country is densely populated.
P ercentage
One important factor to note is that the supply of domestic workers has increased with the
figures of 4722 thousands in 1991 to 4891 thousands in 2004, reflecting a percentage
growth rate of zero percent. An average national unemployment rate of 2.96% indicates
the demand for foreign workers to satisfy the excess demand shortage in the labor market
of Switzerland. This clearly points out that most of the domestic jobs, business processes
have been inshored to international migrant workers.
Sectoral Shares of GDP
5.31
Services Share
in GDP
Industry Share
in GDP
1.48
Agriculture
Share in GDP
1.15
Percentage
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Ethnic groups: German 65%, French 18%, Italian 10%, Romansch 1%, other 6%
Religions: Roman Catholic 41.8%, Protestant 35.3%, Orthodox 1.8%, other Christian
0.4%, Muslim 4.3%, other 1%, unspecified 4.3%, none 11.1% (2000 census)
Languages: German (official) 63.7%, French (official) 20.4%, Italian (official) 6.5%,
Serbo-Croatian 1.5%, Albanian 1.3%, Portuguese 1.2%, Spanish 1.1%, English 1%,
Romansch 0.5%, other 2.8% (2000 census)
note: German, French, Italian, and Romansch are all national languages, but only the first
three are official languages
Government Migration Policy
Government type: formally a confederation, but similar in structure to a federal republic
Political parties and leaders:
Green Party (Grune Partei der Schweiz or Grune, Parti Ecologiste Suisse or Les Verts,
Partito Ecologista Svizzero or I Verdi, Partida Ecologica Svizra or La Verda) [Ruth
GENNER]; Christian Democratic People's Party (Christichdemokratische Volkspartei der
Schweiz or CVP, Parti Democrate-Chretien Suisse or PDC, Partito DemocraticoCristiano Popolare Svizzero or PDC, Partida Cristiandemocratica dalla Svizra or PCD)
[Doris LEUTHARD, president]; Radical Free Democratic Party (FreisinnigDemokratische Partei der Schweiz or FDP, Parti Radical-Democratique Suisse or PRD,
Partitio Liberal-Radicale Svizzero or PLR) [Marianne KLEINER-SCHLAEPFER,
president]; Social Democratic Party (Sozialdemokratische Partei der Schweiz or SPS,
Parti Socialist Suisse or PSS, Partito Socialista Svizzero or PSS, Partida
Socialdemocratica de la Svizra or PSS) [Hans-Juerg FEHR, president]; Swiss People's
Party (Schweizerische Volkspartei or SVP, Union Democratique du Centre or UDC,
Unione Democratica de Centro or UDC, Uniun Democratica dal Center or UDC) [Ueli
MAURER, president]; and other minor parties.
Global Competitiveness Index & International Organizational Participation
ACCT, AfDB, AsDB, Australia Group, BIS, CE, CERN, EAPC, EBRD, EFTA, ESA,
FAO, G-10, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICFTU, ICRM, IDA, IEA, IFAD,
IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITU, LAIA (observer),
MIGA, MONUC, NAM (guest), NEA, NSG, OAS (observer), OECD, OIF, OPCW,
OSCE, Paris Club, PCA, PFP, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNITAR,
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UNMEE, UNMIS, UNOMIG, UNTSO, UPU, WCL, WCO, WHO, WIPO, WMO,
WToO, WTO, ZC
Overall Country Risk Barometer
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Low Risk
Moderate Risk
High Risk
Very
Risk
256
High
TAIWAN
According to Taiwanese Government sources, the total population is 22.7 million with a
growth rate of 0.61% per annum. A population density of 64 people per sq, km, indicates
that the distribution of population in the country is sporadic. An average CBR of 13 and a
high death rate of 6.5 is indicative of a controlled dependency ratio among the
economically active persons. In fact, the dependency ratio of Taiwan is 0.45, with
Canada and New Zealand having similar dependency ratios.
NB: Net migration statistical data are not available, making the analysis short.
Labor market statistics show that the unemployment rate is 4% while labor growth rate is
1% annually, indicative of a migration economy.
Economic Cost & Benefit of Migration
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Convertibility factor for BD= 27600 x 0.25 x 2 = 13800 USD per capita.
Socioeconomic profile
Ethnic groups: Taiwanese (including Hakka) 84%, mainland Chinese 14%, aborigine
2%
Religions: Non Muslim country with a mixture of Buddhist, Confucian, and Taoist 93%,
Christian 4.5%, other 2.5%
Languages: Non English speaking country, Mandarin Chinese (official), Taiwanese
(Min), Hakka dialects
Score
0.95
0.52
1.15
1.29
0.83
0.64
Performance
Medium Low
Low
Medium Low
Medium Low
Low
Low
0.90
Low
PEC,
AsDB,
ICC,
ICFTU,
ICRM,
IFRCS,
IOC,
WCL,
WTO
note: Taiwan has acquired observer status on the competition committee and special
observer status on the Trade Committee of the OECD, and is seeking observer status with
the backing of the US in WHO
Overall Country Risk Barometer
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Low Risk
Moderate Risk
High Risk
258
The Trucial States of the Persian Gulf coast granted the UK control of their defense and
foreign affairs in 19th century treaties. In 1971, six of these states - Abu Zaby, 'Ajman,
Al Fujayrah, Ash Shariqah, Dubayy, and Umm al Qaywayn - merged to form the United
Arab Emirates (UAE). They were joined in 1972 by Ra's al Khaymah. The UAE's per
capita GDP is on par with those of leading West European nations. Its generosity with oil
revenues and its moderate foreign policy stance have allowed the UAE to play a vital role
in the affairs of the region.
The UAE has an open economy with a high per capita income and a sizable annual trade
surplus. Its wealth is based on oil and gas output (about 30% of GDP), and the fortunes of
the economy fluctuate with the prices of those commodities. Since the discovery of oil in
the UAE more than 30 years ago, the UAE has undergone a profound transformation
from an impoverished region of small desert principalities to a modern state with a high
standard of living. At present levels of production, oil and gas reserves should last for
more than 100 years. The government has increased spending on job creation and
infrastructure expansion and is opening up its utilities to greater private sector
involvement. Higher oil revenue, strong liquidity, and cheap credit in 2005 led to a surge
in asset prices (shares and real estate) and consumer inflation. In April 2004, the UAE
signed a Trade and Investment Framework Agreement (TIFA) with Washington and in
November 2004 agreed to undertake negotiations toward a Free Trade Agreement (FTA)
with the US.
IIIIIM
IM
MCCCaaallclccuuutttttataa
450.00
400.00
350.00
300.00
250.00
200.00
150.00
100.00
50.00
0.00
1
10 11 12 13 14
1991-2004
In M illion US D
0.15
0.10
0.05
0.00
-0.05 1
-0.10
10 11 12 13 14
1991-2004
259
IIIIIM
IM
MCCCaaallclccuuutttttataa
9000000000
8000000000
7000000000
In m illion 6000000000
5000000000
USD
4000000000
3000000000
2000000000
1000000000
0
1
11 13
1991-2003
260
The average airfare from BD to UAE in the formal channel per head comes to 104206
BD Taka, which considered to other developed countries is really expensive. Since,
historically migration of labor to UAE has been in the low-medium skill level, the level
of financial risk as indicated by high airfare cost , the use of informal channels to reach
UAE has been most often used, making the use of informal economy. Cost of living in
the UAE is very reasonable and is comparable to other big cities around the world.
Housing is typically expensive but is covered as part of the employee package. However,
it is important to note that taxes are not levied in the UAE.
Demographic Pressures and International Migration
Growth in total Population
5000.00
4000.00
Thousands
3000.00
2000.00
1000.00
0.00
1
9 10 11 12 13 14
1991-2004
46%
IIIIIM
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261
followed by services, 40% and agriculture being only 40%. The major industries in UAE
are petroleum and petrochemicals; fishing, aluminum, cement, fertilizers, commercial
ship repair, construction materials, some boat building, handicrafts, textiles, which has
provided the maximum jobs. The industry share of GDP as value amounts to 13.6%,
followed by services of 12% and agriculture being the least of 4.1% on an average.
Social Inclusion and Economic Freedom The role of diasporas, Language Problem
The tribe has been the principal building block of UAE society since successive waves of
migrations, beginning in the middle of the first millennium BC, brought Arab tribes to the
region. The varied terrain which these tribes inhabited, i.e. desert, oasis, mountains and
coast, dictated the traditional lifestyles that evolved over the centuries but the common
thread was the resourcefulness which the people displayed in exploiting to the limit their
harsh environment. This was assisted by the age-old social structure in which each family
was traditionally bound by obligations of mutual assistance to his immediate relatives and
to the tribe as a whole. Among the tribe an individuals selfless hospitality was the source
of his honor and pride. A common religion, Islam, also provided the cement which held
the people together. Most of the tribes spent some of their time engaged in fishing and
pearling, which were just another means of exploiting all available resources. As pearling
flourished, an increasing number of the able-bodied men participated in the dive during
four months in the summer. Eventually, the pearling boom brought increased
urbanization with a great mix of tribal people settling in coastal towns and villages. This
process was hugely accelerated by the discovery and export of oil. So much so that life in
the UAE today bears little resemblance to that of 30 or 40 years ago. Nevertheless, there
is a deep awareness at all levels that the preservation of such a hard-won heritage
provides a necessary bridge to the past and a solid basis to meet the challenges of the
future.
Major Ethnic Groups: Emirati 19%, other Arab and Iranian 23%, South Asian 50%,
other expatriates (includes Westerners and East Asians) 8% (1982)
Religions: Muslim 96% (Shia 16%), Christian, Hindu, and other 4%
Languages: Arabic (official), Persian, English, Hindi, Urdu
Human Development Index: 0.85 is representative of high development, considering the
fact that the socio economic structure is multicultural
Government Transnational Issues Migration Policy Good Governance
Indicator
Government Type: Federation with specified powers delegated to the UAE federal
government and other powers reserved to member emirates
IIIIIM
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262
Chief of State: President KHALIFA bin Zayid al-Nuhayyan (since 3 November 2004),
ruler of Abu Zaby (Abu Dhabi) (since 4 November 2004); Vice President and Prime
Minister MUHAMMAD bin Rashid al-Maktum (since 5 January 2006)
Head of government: Prime Minister and Vice President MUHAMMAD bin Rashid alMaktum (since 5 January 2006); Deputy Prime Minister SULTAN bin Zayid alNuhayyan (since 20 November 1990); Deputy Prime Minister HAMDAN bin Zayid alNuhayyan (since 20 October 2003)
Cabinet: Council of Ministers appointed by the president
NB: there is also a Federal Supreme Council (FSC) composed of the seven emirate rulers; the FSC is the
highest constitutional authority in the UAE; establishes general policies and sanctions federal legislation;
meets four times a year; Abu Zaby (Abu Dhabi) and Dubayy (Dubai) rulers have effective veto power
Elections: president and vice president elected by the FSC for five-year terms (no term
limits); election last held 3 November 2004 upon the death of the UAE's Founding Father
and first President ZAYID bin Sultan Al Nuhayyan (next to be held 2009); prime
minister and deputy prime minister appointed by the president election results:
KHALIFA bin Zayid al-Nuhayyan elected president by a unanimous vote of the FSC;
MUHAMMAD bin Rashid al-Maktum unanimously reaffirmed vice president.
Good Governance Indicator
Sub Indicators
Voice and Accountability
Political Stability
Government Effectiveness
Regulatory Quality
Rule of Law
Control of Corruption
Score
-1.01
0.91
1.20
0.95
0.85
1.23
Performance
Very Poor
Medium Low
Medium Low
Low
Low
Medium Low
0.69
Low
Rank =18
IIIIIM
IM
MCCCaaallclccuuutttttataa
Low Risk
Moderate Risk
High Risk
263
The mosaic palate of peoples and cultures which represents today's America heightens
the intensity international migration. Discoveries made by various anthropologists of
human remains over the past few decades provide evidence that long before Ellis Island
opened its doors to welcome those seeking political and religious freedom as well as the
"adventurer, the wanderer, the persecuted, the fortune seekers, and others" America was a
kaleidoscope of ethnic and cultural groups! The history of US immigration spans a long
period of migration of many different peoples from various parts of the world. The
intrinsic beauty of American US immigration today is that it allows freedom and
opportunity to all. US immigration policy does not discriminate based on race, religion,
creed and color. In fact, the multicultural and multiracial fibers woven into the fabric of
present day America is the direct result of US immigration policies, practices, and U.S.
Government legislation.
However, transnational issues like Islamic terrorism after the September 2001 - 9/11
attacks on the twin towers, epidemic diseases like bird flu, illegal migration, human
smuggling have been a constant problem for the Government policy makers, making the
current migration statistics weaker and competition for visas higher for South Asian
Remittance Flows to Bangladesh
500.00
450.00
400.00
350.00
300.00
Million USD 250.00
200.00
150.00
100.00
50.00
0.00
9 10 11 12 13 14
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Time Period (1=1991, 14=2004)
1991-2004
countries.
The outflow of remittance from USA,
historically has increased over the period 19912004, giving the average Remittance Potential to
be at 32181 Million USD, the second highest
compared internationally. Considering the cross
tabulation of Remittance Potential to per capita
GDP for 2004, gives us a value of 12.76 %.
Remittance flows to Bangladesh in 2004
amounted to 477.64 Million USD.
Complimenting the above fact, the average net
migration in thousands is 5650, i.e. on an
IIIIIM
IM
MCCCaaallclccuuutttttataa
295410.00
264
10000000000000.00
13
11
8000000000000.00
Value in
6000000000000.00
Billion USD 4000000000000.00
2000000000000.00
0.00
S1
100000.00
12000000000000.00
10000.00
1000.00
100.00
10.00
1.00
0.10
1 2 3 4 5 6 7 8 9 10 11 12 13 14
0.01
Percentage
The long run GNS is 16.56 indicating that the marginal propensity to save out of total
gross national product 16.5 %. This is supportive of the fact that the average consumer
spending in the US have increased over the past years. Hence, the cost of living in the
USA is pretty expensive, considering it as the nation of the dollar dreams. This is also
reflective of the fact that inflation has not been maintained at the optimum levels. Hence,
factors contributing to the remittance source of personal income i.e the GNS of the locals
are comparatively low to similar economies. Hence, the financial motivation to migrate to
USA is medium-low for Bangladesh.
IIIIIM
IM
MCCCaaallclccuuutttttataa
265
The domestic population growth rate has been constant at the rate of 0.1% for the time
period 1991-2004. This means that with an economy with positive growth rates and
domestic population being maintained at 0.1%, per capita GDP growth rates have risen
over time. The average population density is 342.5 indicating the fact inhabitant per
square km of area is 342.5. A higher population density is indicative of the fact that there
are internal domestic competitions among the population for basic human needs, like
housing whereby the cost of living becomes high.
The population of age range 15+ to 64 reflects the labor market and the working
population of USA. The growth of labor force has been maintained at exactly 0.1% over
the time scale from 1991-2004 and an average unemployment rate of 4.64 % indicates
that the intensity to outsource jobs is really high i.e. the economy supports liberalized
migration policy approaches for growth and development.
Manpower vs Unemployment
8.00
4.00
3.00
2.00
P ercen tag e
5.00
4 .1
6.00
7.00
2 .6 6
T h o u san d s
Time Scale
200000.00
195000.00
190000.00
185000.00
180000.00
175000.00
170000.00
165000.00
160000.00
155000.00
1.00
0.00
1
10
12
1991-2004
Unemployment Rate
9 10 11 12 13 14
Supply of Labor
The average sectoral shares in GDP are represented in the figure above, whereby services
share in GDP is the highest of 4.1 % followed by an industry share of 4 % respectively.
Although, the agricultural share of GDP is 2.6%, a liberal Government policy of subsidy
to agriculture has provided the backbone of economic growth. In fact, high skilled
migration has historically have been on the industrial and service clusters of the
economy. The most important service sectors have been mostly distributive trades, real
estate, transport, finance, healthcare and business services. The impact of new technology
has also been felt in the services sector, especially in the delivery of many services over
the Internet.
Social Inclusion and Economic Freedom The role of diasporas, Language
Problem, Racism
The estimated number of BD migrants in USA as on 2002 was 500,000. Statistical data
on the long term BD migration to USA have been unavailable. The first wave of
IIIIIM
IM
MCCCaaallclccuuutttttataa
266
Expatriate Bangladeshis in the US located itself mainly in Detroit and Michigan. By the
time the 1980 census took place, the Bangladeshis were geographically dispersed
throughout the United States. They were found in all states of the US except seven. New
York received the largest clusters of EBs i.e. 29%. In the 1991 census, the geographic
location of the EBs changed significantly. Over 64% of the new immigrants chose to live
in New York. Currently in the US, the largest concentration of Bangladeshis is in New
York and in surrounding areas. These include New Jersey, Connecticut, Massachusetts,
Pennsylvania, Maine, Washington DC, and Delaware. Ali estimates that in 1996, 50
percent of the total EBs were living in New York alone. The second concentration is in
Florida and Texas, while the third largest concentration is around Los Angeles, Arizona,
Oregon and Colorado.
Religions:
Protestant 52%, Roman Catholic 24%, Mormon 2%, Jewish 1%, Muslim 1%, other 10%
(2002 est.)
Languages:
English 82.1%, Spanish 10.7%, other Indo-European 3.8%, Asian and Pacific island
2.7%, other 0.7% (2000 census). American English is the common form of local
communiqu. Although Spanish and Chinese are also widely used.
Human Development Index
The HDI for USA is 0.94 represent high socioeconomic development. USA is the highest
spender internationally on human resources. This reflects that the fact that on the three
prime areas of human rights i.e. a long and healthy life as measured by the life
expectancy at birth, knowledge as measured by education and a decent standard of living,
USA is among the top five economies among developed nations.
Government Transnational Issues Migration Policy Good Governance
Indicator
Government Type: Constitution-based federal republic; strong democratic tradition.
Transnational Issues: Prolonged drought, population growth, and outmoded practices
and infrastructure in the border region strain water-sharing arrangements with Mexico;
the US has stepped up efforts to stem nationals from Mexico, Central America, and other
parts of the world from crossing illegally into the US from Mexico; illegal immigrants
from the Caribbean, notably Haiti and the Dominican Republic, attempt to enter the US
through Florida by sea; 1990 Maritime Boundary Agreement in the Bering Sea still
awaits Russian Duma ratification; managed maritime boundary disputes with Canada at
Dixon Entrance, Beaufort Sea, Strait of Juan de Fuca, and around the disputed Machias
Seal Island and North Rock; US and Canada seek greater cooperation in monitoring
people and commodities crossing the border; The Bahamas and US have not been able to
agree on a maritime boundary; US Naval Base at Guantanamo Bay is leased from Cuba
IIIIIM
IM
MCCCaaallclccuuutttttataa
267
and only mutual agreement or US abandonment of the area can terminate the lease; Haiti
claims US-administered Navassa Island; US has made no territorial claim in Antarctica
(but has reserved the right to do so) and does not recognize the claims of any other state;
Marshall Islands claims Wake Island.
Migration Policy Issues
Over the last two decades USA has been radically altered by globalization and
technological advancements. In response to this new environment, Congress has made
dramatic changes to our policies on telecommunication, trade, and banking, but so far
Congress has not made a concerted effort to modernize our immigration policies. In fact,
we seem to be moving in the opposite direction. While more and more countries invest
billions of dollars to attract foreign students and highly skilled immigrants, the United
States is making it more difficult for foreign students to enroll in U.S. universities and
more difficult for highly skilled immigrants to get visas.
At the other end of the skill spectrum, current immigration policies fail to provide
effective channels of legal immigration for less-skilled workers. Moreover, the backlogs
in visas for family-based immigration are now so long that immigrants are forced to wait
5 to 7 years before they can be legally reunited with a spouse or child. It is the failure of
immigration policy on these two issues, less-skilled immigration and family-based
immigration, which is the primary reason we have high levels of undocumented
immigration today.
Good Governance Indicator
Sub Indicators
Voice and Accountability
Political Stability
Government Effectiveness
Regulatory Quality
Rule of Law
Control of Corruption
Score
1.21
0.47
1.80
1.22
1.58
1.83
Performance
Medium Low
Low
Medium High
Medium Low
Medium High
Medium High
1.35
Medium-Low
IIIIIM
IM
MCCCaaallclccuuutttttataa
268
The GCI for USA is 5.81 indicating the very fact that on the three pillars of development
i.e. the economic environment, the quality of public institutions, USAs rank compared
internationally as on 2002 is second with Finland scoring the first position.
Overall Country Composite Risk Rating
IIIIIM
IM
MCCCaaallclccuuutttttataa
Low Risk
Moderate Risk
High Risk
269
IIIIIM
IM
MCCCaaallclccuuutttttataa
NAME
ADDRESS
WEBSITE
SKILLS
Cooperative Research
Centre for Welded
Structures
http://www.crcws.com.au/
Welding
46 Grogan Road
Perth International Airport
Western Australia 6105
Phone: 1300 888 987
Overseas: +618 9479 5754
http://www.dtec.com.au/contact.htm
Safecity
http://www.safecity.com.au/
Security
Gaurds,Survelliance(Camera)
NATIONWIDE
TRAINING
13 Collingwood Street
Osborne Park WA 6017 AUSTRALIA
Phone: (08) 9445-7766
Fax: (08) 9445-7756
Email: [email protected]
http://www.nationwidetraining.com.au/
TRANZNET
http://tranznet.org/about_us_what_is.html
Fork Lift,Bus
270
Sl
No
IIIIIM
IM
MCCCaaallclccuuutttttataa
NAME
ADDRESS
WEBSITE
SKILLS
Automotive Group
Training (NSW
http://www.agtnsw.com.au/contact_us.htm
Body Builders
Panel Beating
Spray Painting
Motor Cycle Mechanic
Car Mechanic
Truck Mechanic
Auto Electrician
Other Training
Advance OHS
http://www.advanceohs.com.au/courses.asp
271
Canada
Sl
No
NAME
ADDRESS
WEBSITE
SKILLS
http://www.5thwheeltraining.com/
http://www.danbro-training.com/index8.html
Driving trucks
FreinMeister Group
CANADA
[email protected]
Tel: (519) 641-6770
http://www.freinmeister.com/
Mechanic(Air Brake)
http://www.academycanada.com/contact.html
Baker
Cabinet Maker
Carpenter
Construction/Industrial
Electrician
Cook
Hairstylist
Heavy Equipment Operator
Painter and Decorator
Roofer
Steamfitter/Pipefitter
Welder
Academy Canada
Operators Training
School
IIIIIM
IM
MCCCaaallclccuuutttttataa
www.operatorstraining.com/history.htm
Heavy Equipment
Operators
272
Sl
No
NAME
ADDRESS
WEBSITE
SKILLS
Atlantic Transport
Training
60 George Street
Apohaqui, NB
Canada
E5P 3N7
Toll Free: 1-800-563-8782
(TRUC)
Tel (506)432-4913
Fax (506)432-4886
[email protected]
http://www.atlantictransport.com/
Air Brakes
Log Books
Dangerous Goods
Defensive Driving
Forklift Training
WHMIS
Highway Flaggers
Driver Evaluations
Operator Evaluations
CANADIAN
WELDING
SKILLS
www.weldingskills.com
Welding
11
DieTrac Technical
Institute
http://www.dietrac.com/
Carpenter
Construction/Industrial
Electrician
Heavy Duty
Equipment (Mechanic)
Industrial Instrument
Mechanic
Industrial Mechanic
(Millwright)
Machinist
Plumber
Truck and Transport
Mechanic
Welder
United Brotherhood
of Carpenters and
Joiners
http://www.victoriacarpenters.com/new_canadacouncil.htm
Carpenter
IIIIIM
IM
MCCCaaallclccuuutttttataa
273
Sl
No
NAME
ADDRESS
WEBSITE
SKILLS
North Central
Kansas Technical
College
http://www.ncktc.tec.ks.us/default.htm
Truck driving,Nurse
aid,ectricians
10
Woodford Training
Centre
4 Woodgrove Acres
Conception Bay South, NL
A1X 6G3
http://www.woodfordtraining.com/index.htm
Hair Styling
Centrac College
http://www.centraccollege.ca/#AboutUs
Carpenter
Construction/Industrial
Electrician
Heavy Equipment
Operator
Painter and Decorator
Steamfitter/Pipefitter
Welder
12
France
Sl
No
IIIIIM
IM
MCCCaaallclccuuutttttataa
NAME
ENSPM Formation
Industrie - IFP
Training
ADDRESS
WEBSITE
http://www.enspmfi.com/eng/
SKILLS
Petroleum
Drilling - Completion
Well Control
274
Ireland
Sl
No
NAME
ADDRESS
Ballyvalden
Castlewarren
Co. Kilkenny
Tel: 059 97 26388
Email [email protected]
Scaffolding
http://www.midlandtraining.ie/
Abrasive Wheels
Basic & Advanced
Forklift
Manual Handling
(materials)
Security Staff
training
Nifast
http://www.nifast.ie/
Car Driving
http://www.communitytransport.ie/
Minibus Driver
Unit 13,
Dunshaughlin Business Park,
Dunshaughlin,
Co. Meath.
Tel: + 353 1 825 8886
Email: [email protected]
http://www.ants.ie/
Forklift,Motorised
Pallet Truck.
IIIIIM
IM
MCCCaaallclccuuutttttataa
WEBSITE
SKILLS
275
Hong Kong
Sl
No
NAME
ADDRESS
WEBSITE
SKILLS
CITA
http://www.clothingtraining.org.hk/apparel_center.htm
Garments, Foot
Wear
Japan
Sl
No
1
NAME
ADDRESS
WEBSITE
SKILLS
The Japan
Welding
Engineering
Society (JWES)
Kanda-Sakuma-cho 1-11,
Chiyoda-ku, Tokyo,
Japan, 101-0025
Telephone: 81-3-3257-1522
http://www.jwes.or.jp/
Welding
New Zealand
Sl
No
NAME
ADDRESS
Avomore
http://www.avonmore.ac.nz/Forms/AboutUs.aspx?location=1
Cut Above
Academy
http://www.cutabove.co.nz/07/index.htm
IIIIIM
IM
MCCCaaallclccuuutttttataa
WEBSITE
SKILLS
Warehousing
and Driver
Training
(Transport and
Logistics)
Hairdressing
Hospitality
Hair Dressing
276
Sl
No
NAME
ADDRESS
AG
CHALLENGE
LIMITED
WEBSITE
SKILLS
http://www.agchallenge.co.nz/index.html
Automotive
Agriculture
Carpentry Vet
Nursing Safety
Programmes
Apparel &
Textile Industry
Training
Organisation
(ATITO)
http://www.atito.org.nz/page.aspx?pri=18
Yarn
Processing
Textile Testing
Fibre Blending
Woven and
Knitted Fabric
Production
Woolscouring
Tufted and
Woven Carpet
Manufacture
Dyeing and
Finishing
Drycleaning Garment
Finishing
Laundry Finishing and
Packing,
Washroom
Procedure
Double 'R'
Industrial
Training Ltd
http://www.doubler.co.nz/index.htm
Forklift
Certificate
Truck & Trailer
IIIIIM
IM
MCCCaaallclccuuutttttataa
277
Sl
No
NAME
ADDRESS
WEBSITE
SKILLS
Glasgow Training
Services
http://www.constructionpetrochemtraining.co.nz/index.php?page=home
Scaffolders and
Riggers
G&H Training
Limited
http://www.ghtraining.co.nz/AboutUs/AboutUs.htm
Carpentry
New Zealand
Welding School
http://www.welding.school.nz/index.asp
Welding
NSIA
10
BOINZ
11
Taratahi
Agricultural
Training Centre
Cornwall Road, R D 7
Masterton
New Zealand
+64 6 378-2116
Fax +64 6 377-1106
IIIIIM
IM
MCCCaaallclccuuutttttataa
http://www.nsia.ac.nz/
http://www.boinz.org.nz/c
Cookery
http://www.taratahi-ag.ac.nz/index.html
Agriculture,
Farming, Dairy
278
Singapore
Sl
No
IIIIIM
IM
MCCCaaallclccuuutttttataa
NAME
Association of
Singapore Marine
Industries (ASMI)
Avion Avionics
Technologies Pte
Ltd
ADDRESS
54,Maude Road,
02-06, Townshend Building,
S(208346)
Tel: (+65)62924804
WEBSITE
SKILLS
http://www.asmi.com/
http://www.avionavionics.com/
Tractor Training
Professional Frieght
Fowarders Air Cargo
Handling Procedure
Security Operations
Grade 1
Supervise Security
Activities
279
Sl
No
IIIIIM
IM
MCCCaaallclccuuutttttataa
NAME
ADDRESS
WEBSITE
SKILLS
http://www.tathongtrainingcentre.com/default.asp
280
Sl
No
IIIIIM
IM
MCCCaaallclccuuutttttataa
NAME
ADDRESS
Construction
Industry Training
Institute
ASPRI
WEBSITE
SKILLS
www.bca.gov.sg/citi
www.aspri.com.sg
281
United Kingdom
Sl
No
NAME
ADDRESS
WEBSITE
SKILLS
Icon
Consultancy and
Education
http://www.ice-training.com/
Plastering,Tiling, brick
laying, Plumbing,Carpentry
Building Skills
Academy LTD
80 Main Street
New Greenham Park
Thatcham, Berkshire
RG19 6HW
Tel 01635 522007
Fax 01635 522001
Email [email protected]
http://www.buildingskillsacademy.co.uk/
Food Safety
3 Overhill Gardens
Brighton, BN1 8ND
Tel: 01273 557932
Email: [email protected]
http://www.plastering.bravehost.com
Plastering
http://www.diyskills.co.uk/index.shtml
National
Training
Services
http://www.ntstraining.co.uk/index.html
Safety
Control Security
Ltd
Suite 14
34-35 wilbury way
Hitchin, Herts, SG4 0TW
Telephone: 0870 896 5755
Email : [email protected]
www.securitycourses.co.uk
Security officers/Gaurds
IIIIIM
IM
MCCCaaallclccuuutttttataa
282
Sl
No
NAME
ADDRESS
WEBSITE
SKILLS
Advanced Safety
Training
Services
http://www.ast-services.co.uk/
Security officers/Gaurds
Develop
6 Craster Court
Manor Walks
Cramlington
Northumberland UK
NE23 6UT
T: 0870 240 4039
http://www.develop-solutions.co.uk
Safety
http://www.tesop.co.uk
The Bricklaying
Centre
http://www.thebricklayingcentre.co.uk
Brick Laying
Kent Metro
http://www.kentmetroltd.co.uk/
Driving
Learn Plumbing
21 Cranbourne Road
Ashton Under Lyne
OL7 9BH
United Kingdom
Tel: +44 (0) 161 330 1309
http://www.briancurry.fsnet.co.uk/
Plumber
PAT Training
Services Limited
http://www.pat-training.co.uk/
Electrician
10
11
12
13
IIIIIM
IM
MCCCaaallclccuuutttttataa
283
Sl
No
NAME
14
Bespoke
Tailoring
15
16
17
18
IIIIIM
IM
MCCCaaallclccuuutttttataa
ADDRESS
WEBSITE
SKILLS
http://www.tailorandcutter.co.uk/
Tailoring
Gas Logic
Limited
http://www.gaslogic.com/unvented.htm
Electrician,LPG Plants
GetPlumbing
http://www.getplumbing.co.uk/about_us.php
Plumbing
PPL Training
Ltd.
PPL House,
95 James Street,
YORK,
YO10 3WW,
United Kingdom
0845 2600 966
www.ppltraining.co.uk
Plumbing
Hydroweld
http://www.hydroweld.com
284
NAME
ADDRESS
WEBSITE
SKILLS
P O Box 475
Jasper,GA 30143
Tel:-706-253-2677
http://www.mine-safety.com/index.html
MINING
http://www.authenticbartendingschool.com/locals.html
Bar Tending
Industry Training
Authority
http://www.itabc.ca/
Commercial Driver
Training
http://www.cdtschool.com/about-new.html
Driving
PIA
http://www.trucker.org/
Driving
http://www.sageschools.com/sage-locations.htm
Driving
IIIIIM
IM
MCCCaaallclccuuutttttataa
285
Sl
No
NAME
ADDRESS
WEBSITE
SKILLS
Industrial Training
International
ITI, Inc.
9428 Old Pacific Highway
P.O. Box 1660
Woodland WA 98674
Phone: (360) 225-1100
www.wrrc.com
Crane,Rigging,Inspection
KC Training
Technology Inc.
http://kctrainingtechnology.com/id6.htm
Crane, Rigging,
Inspection
Technical Training,
LLC.
http://techtrainingllc.com/pages/contact-us.htm
Operator, Electrician,
WelderForklift
10
Waiter Training
(720) 203-4615
Email:[email protected]
http://www.waiter-training.com.
Waiter
11
570-961-4033
FAX 570-343-8462
P.O. Box 1900
Scranton, PA 18501
USA
E-mail: [email protected]
http://www.pennfoster.edu/contact_us.html
ALL
12
HOBART
INSTITUTE OF
WELDING
TECHNOLOGY
http://www.welding.org/index.html
Weder
13
http://weldingschool.com/programs.html
Welder
IIIIIM
IM
MCCCaaallclccuuutttttataa
286
Sl
No
NAME
ADDRESS
WEBSITE
SKILLS
14
Apex Technical
School
http://www.apextechnical.com/main.htm
Welder,Mechanic,
15
1200 Fair
Chillicothe, MO 64601
Tel:-660-646-3414
http://www.grts.org/carptry.htm
Electrician, Welder,
Plumbing
16
Construction Craft
Training Center
http://www.cctc.edu/
Carpentry, Electrician
17
NCCER
http://nccer.org/contact.asp
Crane
18
Mastery Technologies,
Inc.
http://www.masterytech.com/
Scaffolder
Hydroweld
http://www.hydroweld.com/
Underwater welding
19
IIIIIM
IM
MCCCaaallclccuuutttttataa
287
USA
UK
Australia
Singapore
Welder
QCA
(http://www.qca.org.uk/7.html)
Welding
Technology
Institute of
Australia
Ministry of Manpower
Plumber
IAPMO
Driver
ITSSAR (http://www.itssar.org.uk)
France
Japan
Canada
Association
Francaise
The Japan
Welding
Engineering
Society
Canadian Welding
du Soudage
Bureau (http://www
.
cwbgroup.org)
Plastering
Carpenter
Crane
operator
New Zealand
Security
guard
QCA
(http://www.qca.org.uk/7.html)
City and Guilds
Chef
Brick
Laying
Mechanic
QCA
(http://www.qca.org.uk/7.html)
Electrician
Ministry of Manpower
(http://www
.mom.gov.sg)
Scaffolding
Forklift
operator
IIIIIM
IM
MCCCaaallclccuuutttttataa
288
289
290
Once the requisite labour has been identified, a first level screening is conducted which
short lists candidates from the total pool of applicants according to specific nature of the
clients requirement.
Step 3: Interview
A first level interview of the selected candidates, which evaluates their basic capabilities,
is conducted by the company. Those selected are sent for the final interview which can
either be conducted by the company on behalf of the client or conducted by the client
themselves either directly or through an authorized representative. More often than not,
the client organizations carry out the final interviews and the role of the company is
limited to providing them with the necessary assistance and logistics support which
includes:
Candidates are rejected at each stage of the selection process. Successful candidates are
selected and are made job offers by the client.
Trade Test
Candidates can be tested on their theoretical and practical knowledge of their trade
including knowledge of language, identification and handling of tools, identification of
equipment and material etc. By undertaking tests the client can be more certain of the
quality of the selected manpower.
Trade test, both theoretical and practical are conducted by professionals, experts and
instructors at the concerns Trade Test Centers or through outsourced testing centres.
Step 4: Employment Contract
The employers send the Employment agreement along with the Demand Letter, Visa /
NOC / Work Permit and Power of Attorney, which contains the terms and conditions of
employment, and includes:
Job Responsibilities
Basic Wages
Bonus and incentives
Probation period
Working hour
Overtime
Leaves
Accommodation
Medical treatment
Food
291
Insurance
The company on its side ensures that the execution of the contract takes place between
the two parties viz. the employer & employee. If authorized, the company executes the
contract on behalf of the client.
Step 5: Pre Departure Procedures
All selected candidates are required to obtain certain clearances which are mandatory.
The company assists candidates all through the formalities and facilitates the process of
getting the necessary government clearances which include travel documents required by
both labour Office and Embassy, undertaking trade tests, authentication of credentials,
passport, police clearance, medical certificate, overseas employment certificate and Exit
pass. The prerequisites that need to be complied with are:
1. Clearance from BMET and Host country embassy It is mandatory for a
candidate going overseas to get a clearance from the BMET. The company works
with the selected candidates and ensures that they furnish the necessary
documentation needed to obtain the clearance from the labour office, BMET and
the embassy.
2. Medical Examination (Duration Approx 5 days) - The Company utilizes the
services of the best hospitals and clinics in Bangladesh that are accredited by
Expatriates Welfare & Overseas Employment and embassies to conduct medical
examination of all the personnel intending to work abroad, in accordance with
Bangladesh government regulations. Examinations include regular health check
ups such as HIV/AIDS Test, Chest X-ray, Blood test, Psychological test etc
and/or any other medical check that is specifically required by the client or by the
destination country. Those employees who clear the medical check up are given
Medical certificates.
3. Passport (Duration Approx 7 days) If a candidate does not have a passport the
company assists them in getting one. The duration for obtaining a passport is
approximately 1 week.
4. Visa - The employer must obtain necessary visas from Government of the
designated Country at least 3 weeks prior to the intended date of departure. The
company applies for Entry Visa's on behalf of the selected candidates with the cooperation of the host countrys Embassy in Bangladesh. In the absence of an
Embassy in Bangladesh, the onus is on the employer to provide the visa and other
permits required by the workers to enter the country of employment. Details of
the process are mentioned in the Visa processing section.
5. On receipt of the visa copy & flight details, the clients are intimated to deposit the
original visa in the immigration before the arrival of the worker.
6. Transportation Employers send the flight confirmation & pre-paid ticket advice
(PTA) in favour of the company to facilitate the transportation of the workers. If
pre-paid Ticket Advice (PTA) is not provided by the client, the company can
arrange for tickets for the employees through its allied / approved travel agencies.
292
In addition, flight details are sent to the employers at least 24 hrs in advance so
that they can make necessary pick up arrangements.
7. Orientation Training Basic orientation training is provided by professionals to
all our candidates before they leave for their respective jobs. This training helps
the employees appreciate the differences in culture, language, climate, ethics etc;
helps them maintain cordial relations with colleagues & employers and abide by
rules & regulations of the host country. In addition, the orientation program gives
them a thorough knowledge of their roles & responsibilities which helps them
function effectively, understand & social customs, norms in the host country
thereby expediting the integration of the employee into the society in the host
country.
Visa Processing
The following are the documents that are required by the staffing company for processing
visas of the selected candidates.
Power of Attorney
The client needs to furnish a power of Attorney duly authorizing it to source and supply
labour, including meeting up all the necessary formalities with regards to passports, visa
from respective Embassies, Medical Check-up etc. that are required for legal migration of
labour. The Power of Attorney must be attested by the Bangladesh Embassy existing in
the country of employment and endorsed by its Chamber of Commerce & Industry/
Ministry of Foreign Affairs.
Consular Letter
The client needs to issue a Letter of Authority, mentioning the visa number and the date
of issue etc, in favour of the agent addressed to the Consulate General of the concerned
Embassy in Bangladesh intimating them of the appointment of the staffing company as
their Manpower Recruiting Agent and is fully authorized to deal with all visa related
matters, submission and delivery with the embassy.
Visa Advice
The Visa Advice, duly endorsed and attested should be sent by the employer to the
concerned embassy and a photocopy should simultaneously be sent to the staffing
company for presentation to the concerned Embassy as & when required.
Demand Letter
The Demand Letter is formally issued by the client in favour of the company. The letter
should clearly state the following
Job categories
Number of workers required for each category
Monthly salaries with the currency
Contract period
293
The Demand Letter must be duly endorsed by the Ministry of Foreign Affairs by the
Embassy of the Peoples Republic of Bangladesh existing in the country of employment.
Contractual Details
Taxation
During the contractual period, the employee's income tax & social security liabilities at
the country of employment will be borne by the employer. Miscellaneous taxes such as
travelling tax, tax on excess baggage charges etc will be borne by the worker.
Staffing company fees
Under the permanent recruitment model, the recruiting fee per employee is subject to
change & agreed from time to time between Employer and the company. Under the
temporary staffing operational model, a monthly service fee (subject to change)
calculated as a percentage of gross compensation, is charged over and above the actual
costs.
Employment Period
The employment contract is generally limited to a one year period. Extension of the
contract is subject to consent of both parties (employer & employee) concerned. The date
of departure is taken as the commencement of the contract period.
Destination Country
The designated destination country indicating the exact location of employment is to be
specified clearly. This is required for cross references by the Bangladesh Government
and for establishing instantaneous contact in case of emergencies. Any changes in
location of work must be communicated to staffing company immediately.
Position, Role and Responsibilities
The designated position needs to be clearly indicated. In the event of a change of
designation or position, the employee will receive the salary as stipulated in the contract
until such time as the new position comes into effect.
Wages
The fixed monthly salary paid to the employee (in US dollars) should be stipulated in the
contract.
Designate work hours
The work hours per employee is mentioned in the contract. The normal time period is
eight hours per day, six days a week not exceeding forty eight hours per week. Over and
above the stipulated time, the employee is paid an overtime allowance which is calculated
294
as 1.5 times the regular base rate, while the employee is paid twice the base rate for
working on official holidays.
Travel expenses
The employer bears the travel expenses of the employee which includes travel from
Bangladesh to destination country & return on expiry of the contract. The travel expenses
charged to the client includes cost of obtaining Passport (if applicable), medical
examinations, immunizations, airport tax and local transportation in Bangladesh.
The company, on request by the employer, does provide services such purchase of air
tickets, accident insurance policy etc. The charges for these services are agreed from time
to time between the employer and the staffing company.
Insurance
All employees are to be covered by workman Compensation Plan & hence it is
mandatory for the employer to insure employees against injuries or natural physical
sickness. Should an employee die of natural causes during employment, it is mandatory
for the employer to compensate the family of the employee, the amount being stipulated
in the contract. Further, personal accident insurance for a cover period of one year,
approximate cost about U.S. dollars 25 per worker, is to be borne by the employer.
War / conflict clause
In the event that the employee is seriously injured, killed or confined due to the outbreak
of war or conflict in the country of work, the employer will monetarily compensate the
employee, through his family in accordance with the applicable laws at the host country.
Annual leave
An employee who has continuously served his Employer for a period of one year is
entitled to 30 days of paid leave.
Medical treatment
Free medical treatment for the employee with the exception of dental care is to be
provided by the employer. In the unfortunate event that the employee is in-capacitated or
impaired under circumstances beyond his control, the responsibility lies with the
employer to send him back to Bangladesh.
Boarding & Lodging
The employer is responsible for the food, boarding & lodging of the worker at the host
country. If the employer is unable to provide the above, the worker will be monetarily
compensated for the same in accordance with the standard of living & local conditions at
the host country.
Termination of Employment
All employees are under a 90 day probation period. If the worker is found unsuitable
during this period, the employer can request for a replacement at no extra cost i.e. cost for
295
Additionally, in the event that the employee resigns for any reason after the 3 month
probation period & before the expiry of the contract period, the employer can request the
staffing company to provide a replacement. In this case, the travel costs will be charged
to the worker as per the stipulations in the Employment contract.
Staffing Services
Apart from a permanent recruitment model, All in one manpower solutions provides
temporary staffing services to its clients. Temporary staffing as a phenomenon has
become widely accepted in recent times. Clients benefit from increased labour and cost
efficiency, operational flexibility, reduced labour troubles and an increased focus on core
business issues. This has resulted in the rapid growth of the temporary staffing industry.
The staffing services wing of the All in one Staffing Solutions was set up to cater to the
growing demand for temporary staffing by client organizations.
The recruitment/selection process followed by the company is similar to the permanent
recruitment model. The difference lies in the nature of the temporary staffing services
provided by company, which is detailed below:
Manpower provided will be on the rolls of All in one Staffing solutions and will
work under the direct supervision and control of the employer.
The staffing company will control all administrative activities including pay out
services, liaisons etc. Additionally, the company is responsible for providing pay
296
297
Bangladesh along with Mexico, Philippines, Afghanistan, Vietnam and Sri Lanka is one
of the leading labour exporters in the world. The pressure on large scale migration is
compounded by the large population along with very limited employment opportunities
within the country. The company aims to be an important labour market intermediary
which facilitates the migration of temporary labour to different regions in the world.
Drivers Beyond Borders is a company which provides staffing services for the category
of specialist drivers to its overseas clients. The company strives to offer its clients well
trained and experienced drivers at competitive costs. The company is established and
operates out of Bangladesh and will leverage its presence in a labour supply country
along with the characteristics of Bangladeshi manpower to provide its clients with the
safest, most efficient drivers at competitive costs. The company offers a win-win solution
both for its clients who are looking for experienced, well trained drivers at reasonable
costs and candidates from Bangladesh who are dependent on migration to improve their
living standards owing to a lack of suitable opportunities within the country. It sees itself
as an important value adding intermediary endeavouring to correct the structural
deficiencies that exist between countries which have to look at temporary labour
migration to resolve the imbalances in their internal labour markets and Bangladesh, a
country with surplus manpower resources.
298
H
O
S
T
Client
Placed
Candidates
C
O
U
N
T
R
Y
Multi National
Staffing Company
Overseas
Office
Remittances
Administrative Procedures
Finishing/Grooming
Schools
Medicals
Training Institutions
PRINCIPAL STAFFING
COMPANY
Embassy
Candidate
BMET/DMO/
Passport
Office
MFI/Banks
Regional Office
B
A
N
G
L
A
D
E
S
H
Agents/Franchisee
Candidate Referral
NGOs
Awareness, Sensitization,
Communication
Programmes
Registered
Candidates
Payments
299
The diverse nature of clients entails a different approach in the strategy adopted for each
group. While in the former the service delivery can be handled from Bangladesh or any
other offshore location since the contract periods are of a longer duration, the latter
necessitates servicing clients from an onsite location by forming strategic alliances with
International staffing firms located at host country, situated close to where the clients are
stationed.
At the core is the Bangladeshi worker who is characterized as:
The value propositions offered by the company to its primary stakeholders are:
Clients Various categories of high quality, suitably trained, certified,
experienced, multilingual drivers;
300
The business model of a staffing company is easily replicable. Further, the entry of newer
labour supply countries viz. lower level developing countries, upcoming economies of
the world has increased competition and reduced the earning potential of Bangladeshi
labour overseas. This trend is expected to continue in the future with more countries
joining the group of labour export countries.
The company will ensure that there is an optimization between the number of clients it
services and its delivery capabilities. Acquiring greater number of clients than it can
effectively service will result in a loss of business and a bad name in the market. On the
other hand, the client base should be large enough to diversify the risk faced by the firm.
The company can obtain an immediate benefit by:
i.
ii.
iii.
Developing close relationships with clients ensuring that they are consistently
offered unsurpassed levels of quality in the service/s rendered to them at
competitive costs;
Developing sustained relationships with candidates, resulting in a continuity of
association in-between contractual assignments.
Developing competitive intelligence practices which will proactively generate
information about the practices followed by competitor countries.
Operations Flow
Introduce the company to multiple clients both in the destination country and
other countries where the International staffing company has its operations;
Help bring about greater professionalism in the internal standards and practices of
the firm.
In countries where the company has a large number of clients or has substantial revenue
being generated, the company will set up local offices at the destination countries. These
offices will liaison directly with the clients and other important external stakeholders
including international partners.
The main role of the overseas office will comprise business development and marketing
activities. The office will be responsible for generating additional revenues from existing
clients & increase the client base. It will work with clients to generate demand letters,
coordinate with external stakeholders e.g. government institutions etc, and the company
headquarters thereby ensuring that delivery is in line with the customers expectations
and the needs of the customer are clearly communicated to the principal office of the
company located in Bangladesh. Further, the overseas offices will provide regular market
updates & feedbacks to the principal and undertake the necessary administrative activities
with the clients and authorities at the destination country.
In certain cases, the principal office of the company will interact directly with the client
organization. This will take place in those target countries where there is an absence of
international staffing agencies (which have tie ups with the Drivers beyond Borders) and
the revenue earned doesnt substantiate setting up individual operations. In these cases,
the company will, in conjunction with the client set up processes, along with monitoring
302
and controlling systems that will ensure effective delivery. The aim will be to further
enhance operational efficiencies from time to time.
Details of the interactions that the company has with client organizations and partners are
highlighted in the Client Value Chain diagram at the end of the plan. It illustrates a
sensible forward integration strategy, wherein the staffing company sets up its own
offices in certain countries where it believes it can maximize revenue (Bright Sparks,
Stars) while building strategic alliances with International Staffing companies in
regions/countries where it sees potential but forward integration is limited by resource
constraints.
International Staffing firms
As conveyed in the MNC Staffing Value Chain diagram, the purpose of setting up
strategic alliances with international staffing firms is two fold:
i.
ii.
Further, the international firms will maintain relations with external partners such as
government agencies, travel agents etc on behalf of the staffing firm. On its part, the
Bangladeshi staffing company will act as a supplier of lower cost, well trained drivers.
Sourcing activities The value proposition offered by the company is bridging the gap between the clients
located in foreign countries & the requisite labour pool within the country. To attain these
objectives, the company shall ensure that it effectively taps into the huge local resource
pool & attracts the best available talent.
To increase its reach across the country including the interiors, the company will develop
liaisons with agents & set up a franchisee distribution network. To coordinate & liaison
with all agents & franchisees in a region, the company will set up regional offices. The
role played by the regional offices is to facilitate the communication between the head
office and the franchisees/agents and other ground staff within a region and act as the
companys administrative point of contact in the region. The regional office will intimate
all franchisees/agents under its jurisdiction of the current manpower requirements, share
the necessary job description, compensation, contract duration details etc; undertake
branding, PR and mass communication activities within the region; track and monitor the
performance of all partners, and disperse fees to ground agents; update the head office
on the changes in the quantity and quality of the labour pool within the designated region,
develop new and innovative methods to increase sourcing. In addition, the regional office
will conduct the first level screening of candidates, the details of whom have been
forwarded to it by the agents/franchisees, ensure that the appropriate documentation is
furnished by the candidates, co-ordinate the administrative activities with the head office
303
after the candidate has been selected by a client. Lastly, the regional office will, on a need
basis coordinate with local government officials, work closely with other external
stakeholders like NGOs who work at the grassroots level and hence have the greatest
reach and access to the labour supply pool. NGOs are a critical external stakeholder as
they can create awareness, communicate the benefits of temporary migration among the
communities, thus acting as an agent for the company. The crucial difference between an
NGO and a company agent is the trust factor that the NGO shares with the local
populace.
Franchisees/ Agents appointed by the company comprise the following
The task of the agent is to identify and gain the trust of the potential candidates among
the target audience. The agent must understand the needs of the candidate & position the
nature of the job providing all the necessary information required by the candidate which
should elicit a positive response from the candidate. Once the agent has the approval
from a candidate, the relevant documentation is forwarded to the regional office of the
company. The agent must maintain contact with the candidate during the period of the
recruitment process and immediately bring to note to the regional office any changes in
intent or otherwise which will adversely affect the recruitment of the candidate.
The Agent Value Chain diagram indicated at the end of the plan, details the interactions
between the agents and the staffing firm. Information flow is transmitted through the
regional offices to the different registered agents in the region who in turn respond by
forwarding profiles of relevant candidates.
Charges:
The agent will be paid a fee which will be established between the parties at the time of
drawing up the contract. Care will be taken to ensure that the agents/franchisee are
rewarded for both quantity & quality of service. Checks and balances will be set in place
to ensure that agents do not flood the regional office databases with candidate profiles
that either do not match the requirement, or/and do not have the consent of the candidate
concerned or/and are fabricated in order to achieve a quantitative figure. On the other
hand, the incentive systems devised will not reward pure quality since managed services
staffing is a volume based business and the need for having large databases is critical to
the business operations. The agents will be paid a flat fee for every candidate once he/she
clears a certain stage in the recruitment process. Additional incentives for volumes and
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quality benchmarks will be paid to the agents/franchisee. The same compensation plan
will apply in the case of candidate referrals too.
Principal Office
The principal office is where all the activities of the entire organization converge. This is
the centre of attraction of all activities of the organization. The office will act as the link
between the sourcing team comprising field staff and the client organization. Some of the
key functions of the corporate office are:
Operational details:
Once the principle office receives the demand letter, generated by the companys
overseas clients, detailing the nature of manpower required including the number,
qualitative criteria, time frame by which manpower should be on board etc. the company
will begin the sourcing process. On receipt of the short listed applications from its
regional offices, the company will invite the client organization to undertake the final
interviews. If the client would like the company to undertake the entire selection process,
the final selection is left with the staffing company. Once the candidates are selected, the
administrative matters are managed by the principal office. This would include assisting
the candidate in getting necessary emigration approval, loans (if required), medical
clearances etc. The company will ensure that the candidate reaches safely at the
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destination country and his basic rights are preserved during the course of his
employment with the organization.
The Principal office will also be responsible for overall company strategy, Branding and
promotional activities, devising company policy, recruiting internal employees,
employee resourcing activities etc.
Role of Training Institutions
The primary objective of the company is to provide its clients with the best available
talent. To obtain the best talent the company can:
a. Tap into a pre existing pool of qualified manpower;
b. Train a fresh pool of drivers thereby ensuring a steady input stream;
c. Train & develop existing drivers into achieving the desired qualitative criteria
demanded by overseas clients.
With this in mind, the company proposes to build strategic alliances with training
institutions & finishing schools with the aim of:
i.
ii.
Ensuring that the outputs from these institutes, if interested, automatically become
prospective candidates for Drivers Beyond Borders;
Ensuring standardization in quality of drivers;
Being an alliance the staffing company can interact more closely with the training
institutions, updating them on the current requirements, changes in the overseas markets
in terms of the necessary qualitative criteria; facilitate the coordination with external
accreditation bodies etc. Further, the company will support the training firm by
identifying prospective candidates from the labour supply pool and forwarding them to
these companies for training purposes.
Those candidates who are already experienced drivers having the necessary certifications
could be sent to finishing/grooming schools which would develop soft skills,
communication skills etc which will serve as a crucial differentiator in the overseas
market.
Further, to develop the relations between the strategic partners, the company shall
facilitate the interaction between returnee candidates and training institutions/ finishing
schools where these candidates can share their experiences in different countries with the
students.
The companys primary aim is to ensure that through these training institutions and
finishing schools, the company is able to forecast the additions to its database which
results in timely & efficient client servicing.
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The Training Institution Value Chain diagram shows the value that the Training
institutions add to the migration process. The Training firms obtain their inputs, either
directly from the local labour pool or through the staffing companies. They team up with
Micro Finance Institutions and Banks to provide loans to candidates who have been
selected for the driving course.
The Training firm teams up with Driver training institutes in different countries or with
International accreditation bodies. This ensures that the training programmes match
international standards and certificates awarded to successful candidates will be
recognized in countries across the world.
The alliance with Staffing companies in Bangladesh, ensures that each batch of
candidates who successfully pass out are recruited by the International clients of these
Staffing firms i.e. the Staffing firm will aid & facilitate them in the temporary migration
process. Candidates can also opt for placement in local Bangladeshi companies (Internal
clients).
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H
O
S
T
CLIENTS
Demand Letter,
other Formalities
C
O
U
N
T
R
Y
Partner Staffing
Company
Government
Agencies
Transactions
B
A
N
G
L
A
D
E
S
H
Principal Staffing
Company
Local office
Transactions
Principal Staffing
Company
Candidates
308
Regional Office
AGENTS/FRANCHISEE
Candidate Referral
Registere
d
Payments
309
MULTIPLE GEOGRAPHIES
Clients
Government
Agencies
Clients
MUTI NATIONAL
STAFFING
COMPANY
Existing Temp
Labour Force
Travel Agents
HOST COUNTRY
BANGLADESH
Staffing
Companies
310
W
O
R
L
D
W
I
D
Clients
Training
Institutes/Accreditation
Clients
TRAINING INSTITUTIONS
MFI/BANKS
B
A
N
G
L
A
D
E
S
H
Staffing company
Labour Supply
311
312
Basic Qualifications
Carpenters learn their trade through formal and informal training programs. There are a number
of different ways to obtain this training, and, in general, the more formalized the process, the
more skilled you one becomes resulting in a greater demand.
Some skills needed to become a carpenter include manual dexterity, eye-hand coordination,
physical fitness, and a good sense of balance. In addition, the ability to solve arithmetic problems
quickly and accurately also is required. Further details are mentioned in the Training programme
section.
Job Outlook
The need for carpenters worldwide is expected to grow as construction activity increases in
response to demand for new housing, office and retail space, and for modernizing and expanding
schools and industrial plants. Additionally, a strong home remodeling market will create a large
demand for carpenters. In developed markets, the demand for carpenters may be offset by the
expected productivity gains resulting from the increasing use of prefabricated components and
improved fasteners and tools as they become more standardized. Further, improved adhesives are
reducing the time needed to join materials, and lightweight, cordless, and pneumatic toolssuch
as nailers and drillswill enhance the efficiency of carpenters and result in a reduction in the
time taken to complete a job. It is becoming increasing clear that carpenters with all-round skills
will have better opportunities for steady work, than carpenters who can perform only a few
relatively simple, routine tasks.
The demand for carpenters in a country is directly related to the growth of the economy. During
economic downturns, the number of job openings for carpenters declines. This is because in most
countries, building activity depends on many factors that vary with the state of the economy
interest rates, availability of mortgage funds, government spending, and business investment.
Training Programme
While Bangladesh has adequate supply of carpenters and it needs to increase the number of
carpenters. It is mandatory that all candidates have to pass exams to qualify for the certification.
The carpenters apprentice training course includes
1. Basic Module
2. Advanced Module
The Basic Module includes the following:
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Introduction to handling tools and applications - Hand and power tools; common hand
tools, precision measuring Instruments, electric drilling and grinding tools, power cutting
tools, pneumatic hand tools, plumbing and pipefitting tools, electricians' tools, tool
grinding and sharpening, woodworking hand tools.
Routers, power planers and sanders
Jacks, hoists and pullers
Preventive Maintenance Techniques
Reading Prints and Schematics Block
Sectional Views and Simplified Drafting
Drawings - Building drawings, electrical drawings and circuits, hydraulic and pneumatic
drawings
Piping: Drawings, Materials, and Parts
Sheet Metal Basics
Sketching
Advanced Module
Reading Architects' Blueprints
This includes learning the use of drawings and understanding the relationships between
drawings, blue prints and specifications.
Nonmetallic Materials
Introduction to industrial chemicals, components, gases, different metals, acids etc
Plastics, Elastomers, and Composite Materials
Create a basic understanding of the use of composite materials, glass and plastics in carpentry
Paints and Adhesives
Identify and select the appropriate paint, different types of finishes and solvents, easiest method
of applying paint, paint spraying techniques.
Wood Products
Understand classification and selection of different types of wood, lumber; describe the methods
used in making composition board and plywood, the use of wood fastener
Woodworking Tools
Learn to handle woodworking tools and power woodworking tools.
Specification Writing
Learn to outline and write specifications, excavating and grading; masonry; ironwork; rough
carpentry; finish carpentry; roofing and sheet metal work; metal windows; glass and glazing;
caulking; plastering; marble and ceramic tile; vinyl tile; painting; finishing hardware.
Operations Preliminary to Building
Soil examination including density and compaction, bearing capacity of foundation beds
including testing methods, staking out excavations with and without transit.
314
Concrete Construction
Learn the different forms of concrete and proportion of ingredients for mixing and conveying
concrete, laying concrete in different seasons, special concretes, testing methods, problems faced
in concrete construction etc.
Carpentry
Classification and grading of hardwoods and softwoods; framing methods; wall and roof
construction; roof framing; joists, beams, rafters; timber arches, exterior finish of walls,
windows, cornices, brick veneer and stucco; thermal and sound insulation; kinds of wood and
types of flooring; flooring problems; installation of interior finish.
Roofing
Built-up roofing; roll and canvas roofing; corrugated roofing; standing, flat and batten-seam
roofing; wood and asphalt shingle roofing; slate/tile roofing; problems associated with roofing.
Stair Building
Definitions and classification of stairs; how to determine the number of treads and risers;
principles of construction for different kinds of steps; circular and elliptic stairs.
Plastering
Composition, use and characteristics of plaster; plaster bases; furring and lathing; preparations
required for plastering; stucco; problems during plastering.
Millwork
Scope and materials used; glued construction; doors; windows; cabinetwork; high-Pressure
Laminates.
Sheet Metal Work
Sheet metal types, applications, construction techniques; soldering and painting; construction
techniques.
Builders' Hardware
Selecting and specifying hardware; hinges, locks, other door hardware; window and transom
hardware; cabinet hardware; other types of hardware.
Duration
The duration of the course ranges from 4 to 6 months depending on the aptitude and background
of the individual. Each student has to clear exams which are held periodically and has to attain a
certain minimum score to graduate to the advanced module.
Implementation
The business will be set up in phases. The company intends to maximize its presence within all
geographical regions in the country in a phased manner. It plans to set up training institutes and
offices in Dhaka, Chittagong, Khulna, Rajshahi, Sylhet and Barisal.
315
316
export industry till date, the company intends to build alliances with international staffing
firms and utilize their expertise in different markets to attract clients.
Year3
The company intends to slow the pace of growth and move towards consolidating its
operations.
An additional training centre and an overseas office will be started this year.
A decrease in marketing expenses given that word of mouth would start to bring in a sizable
number of applicants especially among those who are interested in going abroad as legally
certified labour.
317
Financial Projections
Costs and Investments (US$)
Year 0
Year 1
Year 2
Year 3
Employee Costs
Bangladesh Office:
Salary (US$) - Senior Management
Salary (US$) - Support Staff
Overseas Office:
Salary (US$) - Sales & Support Staff
60000
32500
66000
121550
72600
173030
79860
233591
90000
264000
471900
10000
15000
27000
60000
11000
99000
178200
198000
12100
145200
261360
290400
13310
199650
359370
399300
4320
12000
14000
1000
0
8580
25200
29400
3150
7000
18876
13230
15435
4410
15400
23080
27783
32414
5788
16940
186300
1600
1173690
1424
1643166
1128
2156655
1164
423720
2012194
2930335
4020804
180000
1188000
1742400
2395800
186300
40500
1173690
243000
1643166
356400
2156655
490050
406800
2604690
3741966
5042505
Profits (US$)
16,920
592,496
811,631
1,021,701
Income (US$)
318
MARKET DEVELOPMENT
Singapore
Mauritius
Thailand
Brunei
Austria
Belgium
Denmark
Ireland
Netherlands
Norway
Sweden
UK
USA
Canada
319
In markets where the presence of Bangladeshi labour is negligible or nonexistent, the company
has to make an inroad into the market. This requires a market development strategy. To make
inroads into these markets the company intends to build strategic alliances with
local/international staffing companies that have a considerable presence in the respective
countries. An alliance with an international staffing firm will open up opportunities in multiple
countries where they have a presence. In addition, the company needs to gain a psychological
foothold in these regions by publicizing the inherent strengths in the nature, characteristics and
qualities of Bangladeshi workers. Further, the company will aggressively promote its training
and certification which meets worldwide standards. This will be used as a differentiator.
Competitors
The company perceives competition to consist of migrant drivers originating from other major
labour supplying countries in the world. The more noticeable countries which export skilled
manpower include:
India, Pakistan, Philippines, Sri Lanka, Yemen, Egypt, Jordan/Palestine, Turkey and Mexico.
The labour dynamics of the competing countries are very similar to Bangladesh. Additionally,
some countries have a greater share in the migrant labour markets of certain continents e.g.
Mexicos dominance of the US market, Turkeys dominance of the European market and India,
Pakistan, Philippines and Sri Lankan domination in the Asia and Gulf region.
Value proposition
A review of the competitors indicates that most migration is unsystematic with presence of
intermediaries whose aim is to maximize revenues by subverting the migration system prevalent
in respective countries, almost always at the cost of the worker. The companys value
proposition lies in providing well trained, high quality bus drivers on contract at competitive
prices to client across the globe.
The USPs of the company are as follows:
The large pool of labour resources available within Bangladesh
Rigorous training standards adopted by the institute will provide drivers an all round
exposure
Internationally certified drivers
Institute facilitates placement of drivers by linking global demand to supply of drivers
Facilitate administrative clearances and ensure authorized and regulated migration of
drivers
Ensure that contracts are adhered and regulatory systems are in place. This serves as a
confidence building measure with clients in countries concerned about illegal immigration
of workers.
Incorporate in the employment contract, a guarantee of the safety and interests of the driver
in the receiving country.
Given the availability of labour, the company does not foresee any constraints in attracting
candidates. The company will use mass communication techniques, primarily print and media
advertisements, to promote its positioning and differentiation from other competing training
320
institutes (which are few and far between in Bangladesh) along with its overseas placement
record.
Training
The endeavor of the company is to provide well trained bus drivers to its clients in different
regions of the world. To ensure that quality of drivers meets international standards, the company
will tie up with driver certification and accreditation institutes, primarily in the United States.
Most countries have mandatory requirements for bus drivers to meet certain pre defined criteria
which includes physical and educational requirements, background and previous history. Since
the parameters in most countries are similar in nature, the company will ensure that the
candidates it selects adhere to the laid down physical, mental, educational and personal history
credentials.
Training Curriculum
All drivers will go through and successfully complete the programme will be certified by an
accredited institute from the United States. The curriculum will be exhaustive and will cover the
following areas:
Basic knowledge of the design and construction of a bus. This knowledge is required in
identifying any mechanical or functional problems during the early stages and reporting the
problem to relevant authorities in a clear, precise and concise manner.
Theoretical knowledge of bus operations which includes gives students an insight of traffic
rules, regulations and safety, how to start a bus, shifting gears, steering, turning, changing
lanes, entering and exiting a roadway, loading and offloading passengers, defensive
driving, speed limits, sense of responsibility, fuel efficient driving, sense of responsibility
etc.
Training curriculum also includes the response by the drivers to emergency situations,
usage of emergency equipment and first aid kit, post accident procedures and drills, bus
evacuation etc.
On completion all candidates will be put through a short intensive orientation training. The
training will expose the candidates to and help them appreciate the differences in language,
culture, ethics, climate etc.
Implementation
The execution of the plans is intended to be carried out in a phased and regulated manner. The
schedule is as follows:
Preparatory period Launch the firm
Recruit certain key advisors and top managers. These include a senior manager for
marketing, training and administration/operations.
Develop partnership with US based driver certification and accreditation institute
Identify and build alliances with staffing partners in countries where the company intends
to follow a market development strategy.
321
322
to this forecasted surge in demand, the organization decides to set up an additional four
training centres in Bangladesh.
Frequency of advertisements is further reduced to 6.
Increase presence overseas by setting up an additional office with four staff members. The
staff strength in the office set up in the second yr is increased to five.
A slight drop in sales and marketing expenses given that word of mouth would start to
bring in a sizable number of applicants especially among those who are interested in going
abroad as legally certified labour.
323
Financial Projections
Costs and Investments (US$)
Year 0
Year 1
Year 2
Year 3
Employee Costs
Bangladesh Office:
Salary (US$) - Senior Management
Salary (US$) - Support Staff
Overseas Office:
Salary (US$) - Sales & Support Staff
30000
6590
60000
13180
66000
43494
72600
71765
15000
60000
297000
508200
9940
230400
10560
96000
79520
506880
22176
211200
131208
1115136
46570
464640
288657.6
2335.5
7000
100
8000
1575
6060
7000
3000
8000
7000
10494
14000
6600
16000
15400
19965
28000
14520
32000
25410
1380
220
1324800
1100
2775360
924
5814816
728
82140.5
1906620
4116736
8503007
Income (US$)
Income from fees paid by candidates (US$)
Income from certified candidates (US$)
Revenue earned - placement charges (US$)
0
0
0
316800
1431360
480000
696960
3008736
1056000
1533312
6326025.6
2323200
Total Income
2228160
4761696
10182537.6
Profits (US$)
82,141
321,540
644,960
1,679,531
324
325
Electricians connect all types of wire to circuit breakers, transformers, outlets, or other
components. They join the wires in boxes with various specially designed connectors. During
installation, they use hand tools such as conduit benders, screwdrivers, pliers, knives, hacksaws,
and wire strippers, as well as power tools such as drills and saws. After the wiring is installed,
they use testing equipment, such as ammeters, ohmmeters, voltmeters, and oscilloscopes, to
check the circuits for proper connections, ensuring electrical compatibility, and safety of
components.
The nature of Maintenance work varies according to the place of work viz. residential
construction or industry/commercial construction. Electricians who specialize in residential work
perform a wide variety of electrical work for homeowners. This may include rewiring a home
and replacing an old fuse box with a new circuit breaker box to accommodate additional
appliances and installation of new lighting and other electric household items, such as ceiling
fans, Air conditioners etc. Those who work in large factories may repair motors, transformers,
generators, and electronic controllers on machine tools and industrial robots. Those in office
buildings and small plants may repair all types of electrical equipment.
Maintenance electricians working in factories, hospitals, and other settings repair electric and
electronic equipment when breakdowns occur and install new electrical equipment. When
breakdowns occur, they must make the necessary repairs as quickly as possible in order to
minimize inconvenience. This also includes periodically inspecting all equipment to ensure it is
operating properly, locating and correcting problems before breakdowns occur, in addition to
advising management whether continued operation of equipment could be hazardous.
When working with complex electronic devices, they may work with engineers, engineering
technicians, line installers and repairers, or industrial machinery installation, repair, and
maintenance workers.
CONDITIONS AT WORK AND SKILLS REQUIRED
Electricians work both indoors and out; at construction sites, in homes, and in businesses or
factories. This trade requires a lot of physical labour including bending conduit, lifting heavy
objects, and standing, stooping, and kneeling for long periods of time. Further, they risk injury
from electrical shock, falls, and cuts; they must follow strict safety procedures to avoid injuries.
Skills needed to become an electrician include manual dexterity, eye-hand coordination, physical
fitness, and a good sense of balance. The ability to solve arithmetic problems quickly and
accurately also is required. Good color vision is needed because workers frequently must identify
electrical wires by color.
Due to the combination of manual skill and knowledge of electrical materials and concepts that
Electricians posses, they can also find employment as heating, air-conditioning, refrigeration
mechanics and installers; line installers and repairers; electrical and electronics installers and
repairers; electronic home entertainment equipment installers and repairers; and elevator
installers and repairers.
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TRAINING
In developed countries, most electricians learn their trade through apprenticeship programs.
These include a combination of on-the-job training and related classroom instruction. In the
classroom, apprentices learn electrical theory and installing and maintaining electrical systems.
There also take classes in blueprint reading, mathematics, electrical code requirements etc. On
the job, apprentices work under the supervision of experienced electricians. At first, they drill
holes, set anchors, and attach conduit. Later, they measure, fabricate, and install conduit, as well
as install, connect, and test wiring, outlets, and switches. They also learn to set up and draw
diagrams for entire electrical systems. To complete the apprenticeship and become electricians,
apprentices must demonstrate mastery of the electricians work.
Alternatively, some candidates seeking to become electricians choose to obtain their classroom
training before seeking a job. Employers often hire students who complete these programs and
usually start them at a more advanced level than those without the training.
A few persons become electricians by first working as helpers, assisting electricians setting up
job sites, gathering materials, and doing other non electrical work, before entering an
apprenticeship program.
TRAINING PROGRAMME
The curriculum will be drawn up in conjunction with XYZ institute who will be the certifying
authority. The institute will strive to ensure that the curriculum adheres to the laid down
qualitative and quantitative requirements. The duration of the programme is for a period of 3
months.
While selecting candidates, strong preference will be given to those candidates who are currently
working or have worked as Electricians but dont have the formal qualification which is essential
to get a job in this trade in the overseas market. This will give the candidates and the institute an
edge in addition to a shorter course programme. It is mandatory that all candidates have to pass
exams to qualify for the certification.
TRAINING CURRICULUM
The course curriculum designed will be on the following lines:
1) Reading Electrical Schematic Diagrams The course covers the following areas:
Electrical Diagrams; Meaning of Schematic Diagrams; Schematic Diagrams of Basic Electric
Equipment and Connections, such as Types of Circuits; Sources of DC Power; Sources of
AC Power; Transformers; Rectifiers; Motors; Measuring Devices; Protection and Control
Devices.
Schematic Diagrams of Lighting Circuits and Various Types of Motor Control Circuits;
Typical Schematics Used in Generating Systems, Transmission Systems, and Distribution
Systems.
2) Electrical Equipment
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3)
4)
5)
6)
7)
8)
This module teaches students the skills and knowledge needed to install basic industrial
electrical equipment. It teaches them how to safely install conductors and electrical fittings,
the types of equipment discussed includes outlet boxes, panels, raceways, conduits, switches,
fuses, circuit breakers, plugs, receptacles, and lamp holders. The topics covered are:
Conductors and Insulators in Industry
Working with Conduit
Electrical Boxes
Industrial Enclosures and Raceways
Connecting Electrical Equipment
Industrial Fuses
Industrial Circuit Breakers
Plugs, Receptacles, and Lamp holders
Industrial Switches
Industrial Relay Ladder Logic
Industrial Relays, Contractors, and Solenoids
Electrical Wiring Practices
Electronic Sensors
Students will learn to:
Certain electronic components are used as sensors and as parts in control mechanisms.
Explain what sensors and transducers do.
Describe important thermoelectric effects.
Learn how these types of transducers operate and the effects they cause; electromagnetic,
electroacoustical. piezoelectric, photoelectric, and electromechanical.
Explain the importance of a bridge circuit in certain types of electronic instrumentation.
Describe how certain nonlinear resistors are used in circuits.
Explain how certain components can be used as protection devices for circuits.
Define the scientific terms stress and strain.
Optoelectronic and Fiber Optic Components -In this course the student will be exposed to:
An introduction to the high technology field of optoelectronics.
Discuss the theory and applications of the components used in this field; compact discs,
bar code readers, lasers, light emitting diodes (LEDs) and light activated diodes (LADs).
Explain why electronics and optics are natural partners.
Identify the modern theories of light and the relationship to optoelectronic applications.
Describe the basic theory of light communications.
Learn how a fiber optic communications system works.
Describe the operation of electron microscopes and their advantage over optical
microscopes.
Electronics Hardware
The student learns the uses and applications of these components that are critical to the repair
and maintenance of an analog circuit or system: fasteners, connectors, jacks, component
sockets, cables, strain gages, relays, wires, heat shrink tubing, batteries, UPSs etc
Lighting Control
Batteries
The student learns about the different types of Batteries; Construction of Lead-Acid
Batteries; Operating Principle of Lead-Acid Batteries; Characteristics of Lead-Acid
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Batteries; Battery-Testing Instruments; Installation; Alkaline-Electrolyte Batteries; NickelIron Batteries; Nickel-Cadmium Batteries etc
9) Transformers
The student learns about Essential Transformer Properties; Operation Under Load and
Without Load; Losses; Voltage Regulation; Rating; Types of Core and Windings; Insulation;
Bushings; Tap Changers; Polarity; Single-Phase and Polyphase Transformers; Delta, Star,
Open-Delta, and Scott Connections; Special Transformers, Autotransformers, Reactors, StepVoltage Regulators; Instrument Transformers; Maintenance of Transformers; Design of
Small Low-Voltage Transformers.
10) Industrial AC and DC Motors
11) Controlling Industrial Motors
12) Industrial Motor Applications
13) Preventive Maintenance and Maintenance techniques
14) Industrial Motor Control
The student is exposed to the following:
History and Concepts of Programmable Logic Controllers (PLCs); Number Systems; The
Central Processing Unit (CPU): CPU scan, analog and discrete signals, types of PLC
memory; The Input/Output System (I/O); Special Function I/O; Elements of a Relay Ladder
Logic Program; Operation of Timers and Counters; Programmable Logic Controllers (PLCs)
Fundamentals: contacts, coils, ladder logic terminology and symbology, scanning and
solving ladder logic programs; Application/Troubleshooting Exercise One: The Pick-andPlace Robot; Application/Troubleshooting Exercise Two: The Mixing Vat;
Application/Troubleshooting Exercise Three: The Paper Roll Stand; Troubleshooting Skills
using LED indicators and programming console procedures; PLCs in Motor Speed Control;
PLC System Troubleshooting and Repair.
15) Electric Heating - Students will learn the following in this module:
Compare heating sources and list some of the benefits of electric heating.
Understand how heating requirements for buildings are estimated using the degree day
method of calculation.
Identify and compare the major selections of heating equipment.
Describe the main types of electric thermal-storage systems available, including the
advantages of each.
Identify and describe the various heating controls available.
Compare and select electric heating systems for residential applications.
Choose the proper heating system for a particular type of building.
Discuss the various methods for recovering lighting energy for space heating.
Determine which of the electric systems studied apply to industrial buildings.
16) Electric Furnaces - This is a two part course where students will learn about:
PART 1 - Construction and Operation of Electric Furnaces; Batch Furnaces, such as
Box, Muffle, Pit, Bell, Elevator, Car-Bottom, and Bath Furnaces; Continuous Furnaces,
such as Conveyor, Shaker, Rotary, Roller-Hearth, and Pusher Annealing and Hardening
Furnaces; Controlled Atmospheres Using Exogas, Endogas, Monogas, and Dissociated
Ammonia; Glossary of Heat-Treating Terms Included.
PART 2 - Types of Melting Furnaces such as Direct-Arc, Indirect-Arc, and Induction
Furnaces; Vacuum Furnaces, including Arc-Melting, Electron-Beam, and InductionMelting Furnaces; Special Furnaces, such as Vacuum Degassing, Continuous Casting,
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330
Year2
The number of training centres is increased by two to a total of six centres. There is no
expansion into additional overseas markets. Among the two new training centres, one is
located in Dhaka (total two training centres in the capital) and the other will be located in the
surrounding districts.
The staff strength in the overseas offices is increased to 5 each which bring the total number
to ten members.
Year - 3
A decrease in the pace of expansion. An additional centre and an additional overseas office
are set up. All overseas offices are set up in different countries to maximize the reach in the
demand markets.
The new centre is set up in the districts to increase reach among the target population. It is
seen that there are many electricians operating within the country who have gained their
skills informally by working as apprentices over long periods of time. The company aims to
use it marketing programmes to target this group who can quickly acquire a certification and
migrate overseas in a legal manner.
331
Financial Projections
Costs and Investments (US$)
Year 0
Year 1
Year 2
Year 3
Employee Costs
Bangladesh Office:
Salary (US$) - Senior Management
Salary (US$) - Support Staff
Overseas Office:
Salary (US$) - Sales & Support Staff
60000
65000
66000
157300
72600
251680
79860
320106
90000
264000
363000
519090
10000
60000
108000
140000
11000
264000
475200
308000
12100
435600
784080
508200
13310
559020
1006236
652190
4320
24000
20000
2000
7000
10494
25200
21000
4200
15400
18876
26460
22050
6615
16940
23080
13892
11576
8103
27951
745200
1600
3129840
1424
4929498
1128
6038635
1164
1337120
4753058
7448827
9274212
900000
162000
3960000
648000
6534000
1069200
8385300
1372140
1062000
4608000
7603200
9757440
Profits (US$)
275,120
145,058
154,373
483,228
332
333
Because the technology of machining is changing rapidly, machinists must learn to operate a
wide range of machines. Along with operating machines that use metal cutting tools to shape
work pieces, machinists operate machines that cut with lasers, water jets, or electrified wires.
Persons interested in becoming machinists should be mechanically inclined, have good problemsolving abilities, be able to work independently, and be able to do highly accurate work
(tolerances may reach 1/10,000th of an inch) that requires concentration and physical effort.
Additionally, the job requires stamina, because machinists stand most of the day and, at times,
may need to lift moderately heavy work pieces. Modern factories extensively employ
autoloaders and overhead cranes, reducing heavy lifting.
The nature of their tasks means that they can find alternative employment in other machining
occupations such as tool and die makers; machine setters, operators, and tendersmetal and
plastic; and computer control programmers and operators. Experienced machinists may become
CNC programmers, tool and die makers, or mold makers, or be promoted to supervisory or
administrative positions in their firms. Apart from these, a few open up their own shops.
TRAINING
Machinists train in apprenticeship programs, informally on the job, and in vocational schools, or
community or technical colleges. Experience with machine tools is helpful. Many have prior
experience as machine setters, operators, or tenders. Moreover as machine shops have increased
their use of computer-controlled equipment in developed countries, training in the operation and
programming of CNC machine tools has become essential. Many opt for degree programmes but
still need significant on-the-job experience before they are fully qualified.
TRAINING CURRICLUM
The Machinist Apprentice Training programme will cover the following modules.
1. Trades Safety - Designed to help trainees understand why safety is so important, and to
present students with information about safety that goes beyond common sense. The student
will be exposed to the following:
Physical hazards associated with chemicals and describe how to avoid those hazards.
List the steps in a lock-out / tag-out procedure.
Explain the importance of machine guarding including several types of machine guards.
Describe the proper technique used to lift a heavy load.
Explain how to avoid hand injuries when using hand and power tools.
Explain the importance of personal protective equipment and name several types of PPE.
2. Working Safely with Chemicals - This study unit deals with the safe use of chemicals in the
workplace, understanding the hazards that chemicals, primarily he misuse of chemicals and
the improper disposal of chemical wastes. The student learns to:
Recognize the different ways in which a chemical can cause physical injury.
Describe the types of injuries caused by chemicals
Identify potential chemical dangers in your workplace.
334
335
Year1:
To diversify its operations, the company plans to set up another training centre in a major
city in Bangladesh. This will help the company reach out to those who may not be attracted
to the centre in Dhaka.
Recruit three sales staff and begin operations of the first overseas office. The identification of
the country where the office will be set up would be conducted six months prior. The sales
staff recruited will be responsible for business development in the country.
The support staff in the head office is increased by two members to handle the additional
work load, being the central administrative office.
The alliance with the international staffing partner will help the company increase its reach to
a clientele which would have taken a longer time to materialize had it tried to develop clients
on its own.
Year2:
336
Increase in the number of training centres to four. Among the two additional centres started
in this year, one will be situated in Dhaka bringing the total number of centres in the capital
to two.
A second country is selected to base the second overseas office of the company. The country
chosen will be evaluated according to the presence of Bangladeshi labour, the openness to
recruit labour from Bangladesh, country potential and risk etc. Additionally, the manpower
strength in the first overseas office is increased to five members.
The
Year3:
An additional training centre is made operational in a city other than the capital Dhaka. The
aim is to diversify its operations across the expanse of the country and enhance its reach
among prospective candidates, who may not have had access to the training offered by the
company.
There is no expansion in overseas locations in this year. The two offices will continue to
acquire a larger clientele where the students qualifying from the institutes will be placed. The
number of staff in the second office is increased to five members bringing the total number of
staff employed in overseas operations to ten.
The objective is to consolidate operations and take stock of the expansion that has taken
place till date while focusing on increasing the operational efficiency within the company.
337
Financial Projections
Costs and Investments (US$)
Year 0
Year 1
Year 2
Year 3
Employee Costs
Bangladesh Office:
Salary (US$) - Senior Management
Salary (US$) - Support Staff
Overseas Office:
Salary (US$) - Sales & Support Staff
60000
32500
66000
85800
72600
173030
79860
233591
90000
264000
363000
10000
20000
0
112000
11000
44000
39600
246400
12100
96800
87120
542080
13310
133100
191664
745360
4320
12000
50000
1500
0
6666
12600
52500
3150
7000
14665
26460
110250
6615
15400
18448
13892
57881
8682
16940
0
1600
260820
1424
547722
1128
1150216
1164
303920
926960
1969970
3027107
400000
0
880000
90000
1936000
198000
2662000
435600
400000
970000
2134000
3097600
Profits (US$)
96,080
43,040
164,030
70,493
338
339
340
Nearly all employers require the completion of high school. Further, employers usually look for
applicants who have mechanical aptitude and strong problem-solving skills and in good physical
condition.
TRAINING PROGRAMME
The curriculum will be drawn up in conjunction with XYZ institute who will be the certifying
authority. The institute will strive to ensure that the curriculum adheres to the laid down
qualitative and quantitative requirements. This will be an intensive 6 month full time course
where candidates will be given a theoretical and practical exposure to the entire functioning of
all components of a vehicle.
In addition, students will learn to improve the skills needed to interpret technical manuals,
communication skills which is required to communicate with coworkers and customers,
customer service, basic understanding of physics and logical thought. While selecting candidates,
strong preference will be given to those candidates who are currently working or have worked as
auto mechanics but dont have the formal qualification which is essential to get a job in this trade
in the overseas market.
All candidates have to pass all the exams in order to acquire the certification. Failure to do so
will lead to the candidate having to drop out of the course. The candidate could join a later batch.
Strong preference will be given to those candidates who have prior experience as mechanics,
mechanic helpers etc.
TRAINING CURRICULUM
The course curriculum designed in conjunction with the accreditation institute will cover the
following areas:
1) Introduction to Automotive Repair
In this module students will learn about the basic operation of engines and automotive
systems, introduced to the specialized tools that automotive technicians use, and learn how
to purchase the professional tools needed to get started and safety procedures that must be
followed when one is performing auto repairs
2) Basic Industrial Math
3) Trades Safety
The objective is to introduce each painter to accident prevention techniques, fire safety methods,
and the use of personal protective equipment. Many injuries can be prevented by understanding
how accidents and injuries can occur. This study unit is designed to help trainees understand why
safety is so important, and to present students with information about safety that goes beyond
common sense.
This will help the student understand the following:
List the physical hazards associated with chemicals and describe how to avoid those
hazards.
Explain the importance of machine guarding and name several types of machine guards.
Name the classes of fire and how to extinguish each of them.
341
342
343
344
performance. Also discussed in this course are advanced diagnosis techniques, inspection of
hard parts, the transmission case, and the installation of the transmission.
i. Four Wheel Drive Systems:
ii. Manual Transmissions and Transaxles
13) Automotive Computer Control and Additional Systems
The course includes the following topics:
i. Automotive Computer Control and Additional Systems
ii. Advanced Automotive Computer Systems
iii. Automotive Engine Performance / Troubleshooting
iv. Troubleshooting the Electrical System
14) Automotive Heating and Air Conditioning Systems
The student learns to locate and identify the components of an automotive heating and air
conditioning system, understand the function of components within heating and air
conditioning systems, understand the function of control systems in automotive heating and
air conditioning systems, locate and identify components of computer controlled climate
systems.
IMPLEMENTATION
Preparatory period:
Launch the firm.
Recruit senior management who will in marketing, finance, administrative/operations
functions. These are the people who will build and drive the growth of the business in the
coming years.
Identify, negotiate and build alliance with a XYZ Ltd, a US based accreditation institute
which will certify the students and work with the institute to ensure that quality is maintained
by means of a well devised curriculum and effective supervision and transfer of knowledge
to students.
Recruit staff and instructors for the head office cum first training centre at Dhaka;
Design training curriculum along with the accreditation partner, which meets the criteria
required by the certification/accreditation.
Recruit instructors and support staff for the second centre being developed in one of the
major districts in the country.
Identify country where the first overseas office will be located. Recruit sales staff and begin
operations. The sales staff will be responsible for business development in the country.
Identify and build alliances with staffing partners in countries where the company intends to
enter a competitive market
Year1:
During this year the company will start and operate two additional training centres in the
country. These two centres will increase the reach of the company within the country and tap
the local pool of mechanics and their assistants.
Another country is selected to base the second overseas office of the company. The country
chosen will be evaluated according to the presence of Bangladeshi labour, the openness to
recruit labour from Bangladesh, country potential and risk etc.
345
The support staff in the head office is increased by two members to handle the additional
work load, being the central administrative office.
The alliance with the international staffing partner will help the company increase its reach to
a clientele which would have taken a longer time to materialize had it tried to develop clients
on its own.
The number of staff in the first overseas sales office is increased from three to five.
Year2:
Increase in the number of training centres to six. Among the two additional centres started in
this year, one will be situated in Dhaka bringing the total number of centres in the capital to
two.
There is no expansion in overseas locations in this year. The two offices will continue to
acquire a larger clientele where the students qualifying from the institutes will be placed.
The staff in the second office will be increased to five bringing the total number of people
employed overseas to ten.
Year3:
346
Financial Projections
Costs and Investments (US$)
Year 0
Year 1
Year 2
Year 3
Employee Costs
Bangladesh Office:
Salary (US$) - Senior Management
Salary (US$) - Support Staff
Overseas Office:
Salary (US$) - Sales & Support Staff
75000
65000
82500
143000
90750
235950
99825
302803
90000
264000
363000
519090
15000
48000
54000
150000
16500
211200
237600
330000
18150
348480
392040
544500
19965
447216
503118
698775
6060
24000
40000
3000
7000
10494
25200
42000
6300
15400
18876
26460
44100
9923
16940
23080
13892
23153
12155
27951
745200
1600
3129840
1655
4929498
1370
6038635
1164
1323860
4515689
7040037
8730820
900000
162000
3960000
712800
6534000
1176120
8385300
1509354
1062000
4672800
7710120
9894654
Income (US$)
Profits (US$)
261,860
157,111
670,083
1,163,834
347
348
point of time. The work involves standing for long hours and requires considerable amount of
climbing and bending. Additionally, since most of the work is done with their arms raised
overhead, painters require considerable amount of strength and stamina. Painters often work
outdoors but seldom in wet, cold, or inclement weather.
More importantly, painters sometimes work with materials that are hazardous or toxic, such as
when they are required to remove lead-based paints. In the most dangerous situations, painters
work in a sealed self-contained suit to prevent inhalation of or contact with hazardous materials.
This is more applicable to manufacturing industry (e.g. Airline spray painting) than painting
applicable to a construction environment.
Training and Qualifications required
Like most other skilled trades painting and paperhanging is learned mostly through on-the-job
training and by working as a helper to an experienced painter. However, formal and informal
training programs provide more thorough instruction and a better career foundation. In general,
the more formal the training received the more likely the individual will enter the profession at a
higher level.
Applicants should have good manual dexterity and color sense. The training curriculum
(mentioned below) details the skills gained by apprentices. As they gain experience, trainees
learn to prepare surfaces for painting and paperhanging, to mix paints, and to apply paint and
wall coverings efficiently and neatly. Near the end of their training, they may learn decorating
concepts, color coordination, and cost-estimating techniques. In addition to learning craft skills,
painters are made familiar with safety and health regulations so that their work complies with the
law. It is mandatory that all candidates have to pass exams to qualify for the certification.
Career growth paths
Students who take up Painters training through the institute may advance to supervisory or
estimating jobs with painting and decorating contractors both within the country and overseas.
Further, many can look at establishing their own painting and decorating businesses in course of
time.
Training
The painting course has been devised keeping the requirements of the demand markets. The
painters are put through an intensive 6 month course which exposes them to the safety aspects,
working with different tools and a theoretical and practical approach to acquiring hands on skills
on the proficiency of painting.
Training Course Modules
The training programme is devised keeping in minds the needs of accreditation institutes in the
USA. In addition to the technical courses offered, the candidates will be exposed to short
349
language development and soft skill training courses. They technical training provided by the
institute includes the following
Trades Safety
The objective is to introduce each painter to accident prevention techniques, fire safety methods,
and the use of personal protective equipment. Many injuries can be prevented by understanding
how accidents and injuries can occur. This study unit is designed to help trainees understand why
safety is so important, and to present students with information about safety that goes beyond
common sense. This will help the student understand the following:
List the physical hazards associated with chemicals and describe how to avoid those hazards.
Explain the importance of machine guarding and name several types of machine guards.
Name the classes of fire and how to extinguish each of them.
Describe the proper technique used to lift a heavy load.
Explain how to avoid hand injuries when using hand and power tools.
List some of the hazards involved in welding and hot cutting operations and how to prevent
them.
Explain how job analysis and the science of ergonomics are used to improve the workplace.
Explain the importance of personal protective equipment and name several types of PPE.
Working Safely with Chemicals
This study unit deals with the safe use of chemicals in the workplace. Understanding the hazards
that chemicals, primarily he misuse of chemicals and the improper disposal of chemical wastes,
can create is the first step in protecting people from harm. This course provide students with a
sound, practical knowledge about chemical use and disposal, both in the workplace and at home,
learn how to recognize common chemical hazards and how to deal with them, learn how to
perform a job analysis to look for potential chemical dangers in your daily tasks and finally learn
how to take precautions to avoid chemical accidents and make all jobs as safe as possible.
The course helps the student understand the following:
Recognize the different ways in which a chemical can cause physical injury.
Describe the types of injuries caused by chemicals
Identify potential chemical dangers in your workplace.
Describe how to identify, store and label hazardous chemicals.
List several methods used to prevent chemical accidents.
Describe the types of personal protective equipment used and worn when handling
chemicals.
Explain the role of governmental agencies in enforcing chemical regulations.
Fire Safety
This course tutors trainees about the information needed to practice fire safety and prevention in
the workplace. The course helps the student understand the following:
Explain how fires are ignited and identify the classes of fire.
350
351
352
Design training curriculum along with the accreditation partner, which meets the criteria
required by the certification/accreditation;
Identify and complete leasing of office premises within Bangladesh that includes a Head
office located in or around Dhaka which will be the headquarters and primary training centre
of the company.
Identify the overseas country where the company intends to set up a sales office with the aim
of promoting the students by building relationships with prospective employers, and select
office space to be leased;
Acquire training equipment including equipment to get the training institute operational;
Release advertisement and conduct selection of first batch of painters for each training
centre.
The training period for batch, consisting of 150 students is 6 months. The first batch is
recruited during the middle of the year, by which time the team recruited at the beginning of
the year would have set up the alliance with the international institute, devised the course
curriculum along with the international partner, set up the first training centre.
The first batch will complete their course at the end of the first year. The alliances that have
been developed with Staffing firms will facilitate an increase in the reach of candidates. This
Year1
The operations of the company will be spread across the country by setting up offices in two
major districts in the country. The process of identifying locations will begin towards the end
of the preparatory phase when the first training centre is established.
The staff strength is increased to cater to the additional offices.
The promotional & advertisement programmes will continue as before with almost the same
intensity of exposures.
The company intends to set up an overseas sales office in the gulf region where the company
is confident of acquiring clients who will recruit their students. The company will identify a
country on the basis of the presence and acceptance of Bangladeshi labour , the demand for
painters in the countrys domestic labour market and the labour legislations (including
protection and safety) concerning international labour.
Year2
The company plans to continue with its plan of growing its operations with the aim of
increasing volumes. It will consolidate its presence in Dhaka (which is estimated to have the
largest pool of target candidates) by starting another centre in the city. Additionally, it will
also set up another office within the country increasing the number of centres within the
country to five.
The office will be allocated Training and administrative staff to ensure smooth operations.
The senior management will continue to drive the expansion plans of the company.
Fine tune operations among all the centres and enhance relations with the external partners
namely International Staffing firms and the Accreditation institute.
A slight drop in sales and marketing expenses given that word of mouth would start to bring
in a sizable number of applicants especially among those who are interested in going abroad
as legally certified labour.
353
Year3
At this stage, the plan is to reduce the pace of growth and consolidate operations. An
additional centre is started to consolidate its presence in a district with the highest potential.
The company intends to decrease the pace of growth which has taken place over the past 3
yrs and consolidate operations. There is an additional sales offices set up overseas along with
another training centre set up in the country.
354
Financial Projections
Costs and Investments (US$)
Year 0
Year 1
Year 2
Year 3
Employee Costs
Bangladesh Office:
Salary (US$) - Senior Management
Salary (US$) - Support Staff
Overseas Office:
Salary (US$) - Sales & Support Staff
60000
19500
66000
21450
72600
117975
79860
155727
90000
264000
471900
10000
45000
54000
50000
11000
148500
178200
165000
12100
272250
326700
302500
13310
359370
431244
399300
4320
15000
12000
7000
1000
0
8580
90000
24000
14000
3000
7000
16771
150000
24000
14000
5000
15400
20764
90000
12000
7000
6000
25410
372600
1600
1170855
1424
2069078
1128
2601368
1164
Total Costs
652020
1999009
3663501
4674416
450000
372600
81000
1485000
1170855
267300
2722500
2069078
490050
3593700
2601368
646866
903600
2923155
5281628
6841934
Profits (US$)
251,580
924,146
1,618,127
2,167,517
Income (US$)
355
356
company will tie up with XYZ, a plumber certification and accreditation institute based in the
United States. This is because the certifications from the United States are accepted across the
world, which opens up considerable global opportunities to its candidates. Most countries have
certain mandatory requirements for plumbers that need to be met. Since the parameters in most
countries are similar in nature, the company will ensure that the candidates it selects adhere to
the prescribed physical, mental, educational and personal history credentials.
TRAINING CURRICULUM
The curriculum adopted has been designed along with XYZ institute to ensure that the
curriculum adheres to the laid down qualitative and quantitative requirements. The curriculum is
divided into:
a. Basic Module
b. Advanced Module
Those who have prior exposure or experience in plumbing skill can quickly clear the basic
module and focus on the advanced module.
It is mandatory that all candidates have to pass exams to qualify for the certification.
The curriculum covers the following areas:
Basic Module:
1) Introduction to basic mathematics and measurements applicable to the plumbing skill;
2) Trades Safety - Designed to help trainees understand why safety is so important, and to
present students with information about safety that goes beyond common sense.
The student will be exposed to the following:
Physical hazards associated with chemicals and describe how to avoid those hazards.
List the steps in a lock-out / tag-out procedure.
Explain the importance of machine guarding including several types of machine guards.
Describe the proper technique used to lift a heavy load.
Explain how to avoid hand injuries when using hand and power tools.
Explain the importance of personal protective equipment and name several types of PPE.
3) Quality Concepts: Tools and Applications - The student will learn the following in the
course:
Describe how job roles change as a company evolves in its quality consciousness.
Explain several ways in which you can support TQM.
Describe major causes of process variation and give examples of how they may affect
you in your job.
Explain why and how the reduction of variability is a key factor in process improvement.
Describe why and how quality and process improvement, depend on data-driven decision
making.
Identify seven quality tools and explain their uses.
4) Common Hand Tools - Introduces students to hand tools where they will learn about various
types of tools as well as how to use them safely. Further, students will be introduced to a
group of hand tools which most technicians use on a daily basis -- wrenches, pliers,
screwdrivers, and hammers and learn the correct ways to safely use and take care of these
tools. Once they understand the basic tools, candidates will be exposed to the usage of more
specialized maintenance tools.
357
5) Electric Drilling and Grinding Tools, Power Cutting Tools - The student will learn the
following in this course:
Safely set up and operate a portable electric drill, electric drill press, and electric hammer.
Choose the proper drill bit for many drilling applications.
Set up and use a variety of hand and bench grinders.
Safely use the proper grinder for various jobs.
Follow the necessary steps for proper tool maintenance.
Identify the most common portable and stationary power saws.
Identify the various parts of a saw and explain how they work.
Discuss the types of cuts made by each type of saw.
Choose the most appropriate saw and blade for the type of work being done.
Select and (with practice) use the proper saw; saber saw, portable band saw, reciprocating
saw, cut-out saw, cut-off saw, for a given application.
Operate (with practice) the stationary circular, radial, band and scroll saws safely.
6) Pneumatic Hand Tools, Woodworking Hand Tools - The student will be taught the
following:
Describe the various pneumatic tools used for plant maintenance.
Explain how pneumatic hammers, nailers, and staplers are selected and used in a safe
manner.
Identify the proper procedures for pneumatic tool and system care.
Distinguish between the types of hand saws and use them correctly.
Bore and drill holes in wood.
Use abrasive tools correctly.
7) Jacks, Hoists, and Pullers - The following is what the student can expect to learn:
Identify the many forms of jacks and hoists.
Safely operate jacks and hoists. Properly use and maintain fiber-rope, wire-rope, and
chain slings.
Properly use jaw and push pullers.
8) Preventive Maintenance and Techniques Describe the function of inspection and scheduled maintenance as the basis of preventive
maintenance.
Explain why preventive maintenance is performed and how it's scheduled.
Explain how a computerized preventive maintenance program can be developed and
implemented.
Describe how to perform PM tasks on pneumatic systems.
9) Reading Prints and Schematics, Electrical Drawings, Piping Drawings - The student learns
the following:
Read and interpret the various types of prints, drawings, and schematics used in an
industrial environment. Identify electrical construction drawings, schematics, and wiring
diagrams.
Interpret various electrical symbols.
Read standard abbreviations used in electrical diagrams.
Define the term "piping drawings."
Recognize plans, elevations, and sectional views.
Identify a view by its placement on a drawing.
358
ADVANCED MODULE
In the advanced module, the student is exposed to the intricacies of the plumbing trade and with
a combination of theory and practical pedagogy, gets a holistic perspective of the plumbing
trade. The topics covered under the advanced module are:
1) Reading Architects' Blueprints - Students learn how to use drawings and the relation between
drawings, blueprints, and specifications.
2) Properties of Materials and Principles of Mechanics - This includes getting exposure to
Effects of Forces on Materials; Stress and Deformation; Elastic Failure; Modulus of
Elasticity; Temperature Stresses; Structural Members; Tension Members; Shear;
Scope of Mechanics; Forms of Matter; Forms of Energy; Physical Properties of Bodies;
Motion of Bodies; Coordinate Systems etc.
3) Reading Piping Prints and Specification Writing - Topics under this module include
Descriptions of Piping Drawings; Pipe Materials and Methods of Manufacture; Valves;
Piping Accessories; Piping Assembly; Fluid-Power Diagrams; Examples of Piping
Drawings; Knowledge Required for Writing Specifications; Specification Language; Outline
Specifications; Preliminary Writing Procedures; Specifying Materials; Instruction to Bidders
etc.
4) Industrial Plumbing and Pipefitting - The student is exposed to skills and knowledge needed
to perform those tasks associated with the trades of plumber and pipe fitter. The program
includes coverage of the most widely accepted materials used for pipe, fittings, and valves. In
addition, the methods used to join pipe, and the procedures for supporting, installing, and
testing piping systems, are discussed in detail. Common plumbing fixture installation and
maintenance, along with a review of tanks, pumps, and boilers, are also covered.
5) The Trades of Plumbing and Pipefitting - Students will learn to:
Discuss the basic concepts of codes and standards.
Relate information about the different types of mechanical systems in buildings.
Identify the terms: blueprints, architectural drawings, working drawings, manufacturers'
specifications and job specifications.
Explain how different types of plumbing and piping systems are categorized.
6) Pipes, Fittings, and Valves - Students will learn to:
Identify and classify the different types of material that are used to manufacture pipes,
fittings, and valves.
List the characteristics of the various types of pipes, fittings, and valves available.
Classify and identify pipe "markings."
Identify the various types of valves and know their components.
Perform basic valve maintenance and know proper installation techniques.
Select and specify pipes, fittings, and valves for a particular application.
7) Plumbing and Pipefitting Tools
Identify the various tools available for various tasks by appearance.
Identify the tools required to join and assemble pipes of different material composition.
Determine when and how to use pipe-joint assembly tools.
Identify the tools required to perform layout, cutting, and boring tasks.
359
Identify the tools needed for testing and maintaining piping systems.
Determine when and how to use finishing, testing, and maintenance tools for piping
systems.
8) Joining and Assembling Pipes
9) Supporting, Installing, and Testing Pipes
Lay out, install, and align a piping system either inside a building or underground.
Properly support a piping system using the various available methods, taking into account
thermal expansion and contraction.
Identify methods and materials used to protect piping installations.
Calculate pipe offsets to avoid obstructions when laying out and installing a piping
system.
10) Plumbing Fixtures and Appliances
Recognize trade terms used to categorize and describe plumbing components.
Identify the different types of plumbing fixtures, trim, appliances, and appurtenances.
Explain the procedures used for installing plumbing fixtures and trim.
Discuss common maintenance problems and corrective action for plumbing components.
11) Tanks, Pumps, and Boilers
Identify and classify the various available tanks.
Specify and size round and rectangular tanks, and sumps, for a particular application.
Identify different pumps and know pump principles.
Discuss pump installation, start-up, and maintenance procedures.
List the characteristics of boilers and discuss their classifications.
Identify boiler accessories and know basic boiler maintenance.
12) Insulation for Piping and Ducting
Identify and understand the function and types of different piping and ducting insulation
materials.
Select the proper insulation type, material, and thickness for a given piping system.
Properly cut, form, and install insulation and shielding to piping and ducting.
13) High Pressure Pipefitting
Design and Arrangement; Pipe Calculations; Pipes; Valves and Cocks; Separators and
Steam Traps.
14) Sanitary Plumbing Fixtures - Water Closets; Urinals; Lavatories, Bathtubs and Showers;
Sinks; Institutional Fixtures; Fixture Problems.
IMPLEMENTATION
The phased execution is mentioned below:
Preparatory period
The firm is launched;
The key advisors and top management team is recruited. The senior management team
includes key personnel in the marketing, finance, training, administrative/operations
functions;
Identify, negotiate and build alliance with a XYZ Ltd, a US based accreditation institute
which will certify the students and work with the institute to ensure that quality is maintained
360
by means of a well devised curriculum and effective supervision and transfer of knowledge
to students;
Identify and build alliances with staffing partners in countries where the company intends to
enter a competitive market;
Design training curriculum along with the accreditation partner, which meets the criteria
required by the certification/accreditation;
Identify and complete leasing of office premises within Bangladesh that includes a Head
office located in or around Dhaka which will serve as the headquarters and primary training
centre of the company.
Identify and complete leasing of a sales office in a country identified for market expansion
by the company.
Acquire training equipment including equipment to get the training institute operational;
Release advertisement and conduct selection of first batch of painters for each training
centre.
The training period for batch, consisting of 150 students is 6 months. The first batch is
recruited during the middle of the year, by which time the team recruited at the beginning of
the year would have set up the alliance with the international institute, devised the course
curriculum along with the international partner, set up the first training centre.
Year -1
Expand operations both within the country by setting up training centres in the districts and
overseas by setting up another office in a different country to enhance business development
efforts.
Increase staff strength in accordance with growth. Head office to be allocated additional
staff to handle centralized administrative processes.
Marketing and promotional activities to continue at more or less the same pace as in the
preparatory period.
Year2
Continue the plan of expanding the presence of training centres within the country. A second
training centre is set up in Dhaka to cater to the larger target audience present in and around
the city.
Fine tune operations among all the centres and enhance relations with the external partners
namely International Staffing firms and the Accreditation institute.
Drop in Sales and Marketing expenses ascribed to an increasing share of word of mouth
advertising.
Maintain and consolidate overseas offices. No expansion plan for this year.
Year3
Decrease the pace of growth and consolidate operations both within and overseas.
Additional centre is started to consolidate its presence in a district with the highest potential.
361
Financial Projections
Costs and Investments (US$)
Year 0
Year 1
Year 2
Year 3
Employee Costs
Bangladesh Office:
Salary (US$) - Senior Management
Salary (US$) - Support Staff
Overseas Office:
Salary (US$) - Sales & Support Staff
60000
32500
66000
121550
72600
212355
79860
276848
90000
264000
363000
519090
10000
15000
27000
100000
11000
99000
178200
330000
12100
181500
326700
605000
13310
239580
431244
798600
15000
4320
12000
10000
1000
7000
31500
8580
25200
21000
3150
15400
49613
18876
39690
33075
5513
16940
17364
23080
13892
11576
6946
27951
186300
1600
1173690
1424
2053958
1128
2587986
1164
571720
2349694
3992046
5048491
225000
186300
40500
1485000
1173690
243000
2722500
2053958
445500
3593700
2587986
588060
451800
2901690
5221958
6769746
Profits (US$)
119,920
551,996
1,229,911
1,721,256
Income (US$)
362
363
to join metals other than steel, such as brass. Brazing can also be used to apply coatings to parts
to reduce wear and protect against corrosion.
Automated welding is used in an increasing number of production processes. In these instances,
a machine or robot performs the welding tasks while monitored by a welding machine operator.
NATURE OF WORK
Skilled welding, soldering, and brazing workers generally plan work from drawings or
specifications or use their knowledge of fluxes and base metals to analyze the parts to be joined.
These workers then select and set up welding equipment, execute the planned welds, and
examine welds to ensure that they meet standards or specifications. They are even examining the
weld while theyre welding. By observing problems with the weld, they compensate by adjusting
the speed, voltage, amperage, or feed of the rod. Highly skilled welders often are trained to work
with a wide variety of materials in addition to steel, such as titanium, aluminum, or plastics.
Less experienced hands have more limited duties. They perform routine jobs that already have
been planned and laid out and do not require extensive knowledge of welding techniques. In
automated welding, the welding, soldering, and brazing machine setters, operators, and tenders
follow specified layouts, work orders, or blueprints. Operators must load parts correctly and
constantly monitor the machine to ensure that it produces the desired bond.
The work of arc, plasma, and oxy-gas cutters is closely related to that of welders. However,
instead of joining metals, cutters use the heat from an electric arc, a stream of ionized gas
(plasma), or burning gases to cut and trim metal objects to specific dimensions. Cutters also
dismantle large objects, such as ships, railroad cars, automobiles, buildings, or aircraft. Plasma
cutting has been increasing in popularity because, unlike other methods, it can cut a wide variety
of metals, including stainless steel, aluminum, and titanium.
WORKING CONDITIONS
Workers in this profession often are exposed to a number of hazards, including the intense light
created by the arc, poisonous fumes, and very hot materials. The more specialized the nature of
welding, the higher are the returns to the worker.
TRAINING PROGRAMME
The institute offers training programs for all aspects of welding. Particular importance is attached
to both technical and practical development of welding skills.
The institute has developed its training programmes keeping two types of prospects in mind:
i. Candidates who presently work as welders but have no formal certification and have not
been exposed to advanced welding technology;
ii. Candidates who have no prior experience or exposure to welding and are interested in
taking up this profession.
364
Beginners who are being exposed to welding would be put through an intensive 6 month
comprehensive programme which will expose them theoretically and practically to the different
kinds of welding and their processes.
The courses will be designed in such a manner that it can be tailored to the individual needs of
the candidate. However, it is mandatory that the candidate is sufficiently qualified to take up
more advanced courses. The institute offers a comprehensive range of examinations, in
accordance with the provision for certification, to compliment its training courses. These
examinations are mandatory and have to be cleared by candidates to avail of the international
certificate. The course curriculum will be designed in such a manner that the candidates will be
TRAINING CURRICULUM
The curriculum adopted has been designed along with XYZ institute to ensure that the
curriculum adheres to the laid down qualitative and quantitative requirements. The curriculum is
divided into:
c. Basic Module
d. Advanced Module
Those who have prior exposure or experience in plumbing skill can quickly clear the basic
module and focus on the advanced module.
It is mandatory that all candidates have to pass exams to qualify for the certification.
The curriculum covers the following areas:
Basic Module:
1. Basic Industrial Math
2.
Elements of Print Reading - The course exposes the student to the following:
Need for Prints; Methods of Making Prints; Perspective Drawings; Isometric Drawing;
Orthographic Projection Drawings; Working Drawings; Sketches; Dimensions and Scales; Fits
and Tolerances; Surface Finishes, Symbols and Common Conventions; Ways of Showing Taper;
Full Sections; Partial Sections; Conventional Sections; Examples in Print Reading; Steel Liner,
Pin, Bottom Plate Support; Adjusting Wedge, Drive Shaft for Pump, V-Belt Sheave; Scales for
Metric Drawing.
3.
Reading Shop Prints
Reading Detail Working Drawings; Pulley Bar: Studying the Print, Material Needed, Machining
Operations; Idler Shaft: Reading the Print, Producing the Idler Shaft; Wheel Puller: Plate Details
and Layout, Machining Operations, Finishing Operations, Examples of Prints: Bumper Band,
Door-Latch Bracket, Roller; Chain Tightener, Bracket, Lateral; Gears: Spur-Gear Terms, BevelGear Terms, Detail Drawing of Bevel Pinion, Worm and Worm Wheel, Assembly Drawings,
Machining Operations, Assembly Procedures.
4.
Blueprint Reading Skills
5.
Trades Safety - Designed to help trainees understand why safety is so important, and to
present students with information about safety that goes beyond common sense. The student
will be exposed to the following:
Physical hazards associated with chemicals and describe how to avoid those hazards.
List the steps in a lock-out / tag-out procedure.
Explain the importance of machine guarding including several types of machine
guards.
365
Show how to keep the welding area clean and free of flammable materials.
10.
Safe Use of Electrical Equipment
11.
Cylinder Safety - The course explains the following:
366
2.
3.
4.
5.
6.
working on various positions when welding joints on pipes; Interpreting welding symbols,
dimensions, and schematics.
Bench Work - Students learn the following:
introduction to Bench Work; Wrenches, Hammers, Pliers, and Screwdrivers; Punches, Twist
Drills, Reamers, and Broaches; Saws, Chisels, and Snips; Finishing and Grinding Tools;
Files, Scrapers, and Abrasives, Threaded Fasteners; Bolts, Screws, and Studs; Thread
Systems; Hole Preparation for Threaded Fasteners; Mechanical Fasteners; Rivets, Keys, and
Pins; Threading with Hand Tools; Taps: Tap Drills; Tap Wrenches; Repairing damaged
threads, Fitting Practice; Tolerance, Allowance, Clearance, and Fit; Babbitting; Hack Saw;
Band Saw Machine; Clamping Work for Sawing; Soldering; Soft Solder; Soldering Copper;
Sweat Soldering; Brazing; Hand Solders and Fluxes; Torch Brazing; Induction Brazing;
Furnace Brazing.
Gas Welding Equipment (Optional)
PART 1 - Source of Heat for Gas Welding; Gases Used in Welding: Oxygen, Acetylene,
Hydrogen, Other Fuel Gases; Oxyacetylene-Welding Equipment; Regulators; Hoses and
Hose Fittings; Check Valves; Welding Torches; Accessory Equipment.
PART 2 - Setting Up a Welding Outfit; Taking Down the Welding Outfit; Backfires and
Flashbacks; Centralized Distribution of Oxygen; Centralized Fuel - Gas Distribution;
Miscellaneous Welding Equipment.
Practical Metallurgy for Welders
PART 1 - Identifying Metals; Mechanical Properties of Metals; Physical Properties of
Metals; Chemical Properties of Metals.
PART 2 - Filler-Metal Specifications; Iron and Steel Rods for Gas Welding; Understanding
Metals; Heat Transfer; Thermal Stresses and Distortion; Preventing Distortion; Grain
Structure of Metals; Metal Solidification and Strength; Cast Iron; Stainless Steel; Aluminum
Alloys; Copper Alloys; Other Metals.
Gas Welding Techniques (Optional)
PART 1 - Instructions for Practice Welds; Joint Preparation; Corner Joints, Butt Joints, Lap
and Tee Joints, and Fillet Welds; Tests to Make on Practice Welds; Welding with Single and
Two or More Weld Layers; Progress Tests and Supplementary Heating; Welding Production
Data; Application to Estimating and Calculation of Costs.
PART 2 - Weight and Schedule Systems of Classifying Pipe; Positions in Which Pipe is
Welded, the Joint Preparation, and the Techniques to Use; Changes in Direction with
Commercial Fittings, by Bending, and with Fabricated Fittings; Stress Relieving Tests and
Tables of Weld Requirements; Advantages and Disadvantages of Braze Welding; Filler
Metals; Fluxes; Joint Preparations; Braze Welding Techniques; Groove Preparations; Fluxes;
Heat Treatment; Joint Preparation; Estimating Requirements; Welding Cast Iron with Cast
Iron Welding Rods and Braze Welding Cast Iron; Malleable Iron Welding.
PART 3 - Welding Procedures for Medium Carbon, High Carbon, and Stainless Steels;
Preheating and Supplementary Heating; Welding Rods, Fluxes, and Joint Designs for Copper
and Copper Alloys; Using Oxyacetylene and Oxyhydrogen for Welding Aluminum and
Aluminum Alloys; Welding Rods, Fluxes, Joint Designs, and Techniques; Welding
Procedures, Joint Designs, Fluxes, Welding Rods, and Techniques of Welding Magnesium
and Magnesium Alloys, Nickel and Nickel Alloys, and Lead; Weld Sequence; Jigs and
Fixtures; Joint Design; Drum Heading; Pre-deforming to Control Distortion.
Gas Metal Arc Welding Fundamentals - Introduces students to the following:
367
Applications and Advantages of Gas Metal Arc Welding; Identify the Variables involved in
the GMAW process; Explain the uses for Equipment and Supplies required for GMAW
Applications; The use of components such as GMAW Welding Guns and Shielding Gas;
How to select Welding Gun Positions for particular applications; List the requirements for
preparing Work pieces prior to welding; Introduction to GMAW Welding Techniques and
Practices; Using Tables to select appropriate Operating Data for a particular Welding
application.
7. Introduction to Oxyfuel Welding - This course is designed for new welding workers who
have little or no knowledge of the field. With the help of audio visuals enables students to
master the fundamentals of welding technology. The course includes:
Welding Equipment, Accessories, and Shop Safety, Set Up and Shut Down of Oxyfuel
Welding Equipment, Types of Oxyfuel Flames, Joint Design and Welding Terms, Basic
Blueprint Reading Lines, Views, and Dimensions, General Welding Symbols.
8. Oxyfuel Welding and Cutting (Optional)This course is designed for new welding workers
who have little or no knowledge of the field. Audio visual tools enable the students to master
the fundamentals of welding technology. It includes the following topics:
Puddling and Running Beads
Flat and Horizontal Butt Welds with Filler Rod
Vertical and Overhead Butt Welds with Filler Rod
Oxyfuel Gas Welding T-Joints, Lap Joints, Corner Joints, and Edge Joints
Cutting Metal with the Combination Torch
Piercing, Cutting Holes, and Cutting 450 Bevels with the Cutting Torch
Automatic Flame Cutting
9. Arc Welding Equipment
This course consists of 3 parts. The details of the topics covered are mentioned below:
PART 1 - Terminology and Processes; Power Sources for Arc Welding; Arc Welding
Machines; Transformer Types of Welding Power Source.
PART 2 - Sources of DC Welding Power; Sources of AC Welding Power; Supplemental
Arc-Welding Equipment: Meters, Indicators, Cables, Electrode Holders; Face Shields,
Helmets, Goggles, Protective Clothing, Screens.
PART 3 - Requirements for Mechanized, Semiautomatic, and Automatic Welding;
Submerged-Arc Welding; Robotic and Adaptive Control; Electroslag Welding; Tubular
Filler Metals; Gas Tungsten-Arc Welding; Gas Metal-Arc Welding; Spot-Welding
Equipment; Electron-Beam, Plasma-Arc, Flux Cored Arc, and Laser Beam Welding,
Equipment and Processes.
10. Shielded Metal Arc Welding Techniques - This 2 part course teaches the students the
following skills:
PART 1 - Equipment and Materials; Weld Metal Testing; Welding Applications of Covered
Mild-Steel Electrodes; Basic Arc Welding Operations; Single V-Groove Butt Welds.
PART 2 - The Vertical Position; The Horizontal Position; The Overhead Position; Fillet
Welds: Welding Heavy Metal Plates; Sheet-Metal Welding.
11. Arc Welding of Low Carbon Steel PART 1 - Welding Techniques; Joint Designs and Preparation; Steel Manufacture; Rimmed,
Capped, Killed, and Semiskilled Steels; Cast Steels; Specifications for Low Carbon Steel
Electrodes; Electrode Classification; Electrode Groups; Chemical Composition of Electrodes;
Electrode Coverings; Storage and Rebaking of Electrodes; Welding Current; Use of Low
368
Hydrogen Electrodes; Electrode Tests; Welding Test Plates; Tension and Impact Tests; Fillet
Weld Test; Establishment of Welding Procedures; Developing Welding Procedures;
Identification of Welding Process, Base Metal, Filler Metal, and Supplementary Materials;
Welding Position Qualifications; Arc Welding Single V-Groove Butt Joints, V-Groove with
Backing Strip, Double V-Groove Butt Joints, and Fillet Welds; Application of Submerged
Arc Welding; Classification of Submerged Arc Electrodes and Filler Metal; Submerged Arc
Welding Fluxes; Submerged Arc Welding versus Metal Arc Welding; Selection of
Submerged Arc Electrodes and Fluxes; Submerged Arc Welding Procedure; Electroslag
Welding.
PART 2 - Gas Tungsten Arc (Tig) Welding; Application of Tig Welding; Filler Metals for
Tig Welding; Tig Welding of Pipe; Techniques for Root Bead Welding; Gas Backup for
Root Bead Welding; Volume of Backup Gas; Root Welding of Pipe; Pipe Welding Involving
Two Welding Procedures; Tig Spot Welding; Basic Features of Gas Metal Arc (Mig)
Welding; Mig Shielding Gases; Mig Filler Metal; Drop and Short Circuiting Metal Transfer
in Mig Welding; Current Effect on Mig Welding; Pulsed Spray Arc Welding; Electrodes for
Mig Welding: Mig Welding Procedures; Linde Equipment; Hobart and Airco Operating
Data; Flux Cored Welding; Flux Cored Welding Electrodes; Operating Data on Flux Cored
Welding Electrodes.
12. Arc Welding of Alloy Steels and Iron Alloy Steels; Alloy-Steel Electrodes; Arc Welding of Stainless Steel; Heat Treatment of
Welded Stainless Steel; Arc Welding of Manganese Steel, Silicon Steel, and High-Carbon
Steels; Welding Band and Circular Saws; Arc Welding of Cast Iron; Welding Wrought Iron;
Electric Welding in Ship Construction; Repairing Wobblers and Coupling Boxes; Welding of
Rail Joints; Building Up Rail Ends; Welding Firebox Sheets, Locomotive Frames, Tanks,
and Boilers; Pipe Welding; Welding of Structural Shapes; Carbon Arc Cutting.
13. Welding with Shielded Metal Arc (Optional) - A course that is designed for new welding
workers who have little or no knowledge of the field. It includes the following topics:
Striking an Arc, Restarting the Arc, and Running a Continuous Bead in the Flat
Position
Running Continuous Beads in the Horizontal and Vertical Down Positions
Running Continuous Beads in the Vertical Up and Overhead Positions
Electric Arc Welding in Flat, Horizontal, Vertical, and Overhead Butt Welds
T-Joint, Lap Joint, and Outside Corner Joints in the Flat Position
T-Joint, Lap Joint, and Outside Corner Joint in the Horizontal Position
T-Joint, Lap Joint, and Outside Corner Joint in the Vertical Up Position
T-Joint, Lap Joint, and Outside Corner Joint in the Overhead Position
Multi-Pass Electric Arc Welding
Welding Cast Iron in the Flat Position and Hard-Facing Surfaces
Carbon Arc Cutting
IMPLEMENTATION PROGRAMME
Preparatory period
The firm is launched;
369
The key advisors and top management team is recruited. The senior management team
includes key personnel in the marketing, finance, training, administrative/operations
functions;
Identify, negotiate and build alliance with a XYZ Ltd, a US based accreditation institute
which will certify the students and work with the institute to ensure that quality is maintained
by means of a well devised curriculum and effective supervision and transfer of knowledge
to students;
Identify and build alliances with staffing partners in countries where the company intends to
enter a competitive market;
Design training curriculum along with the accreditation partner, which meets the criteria
required by the certification/accreditation;
Identify and complete leasing of office premises within Bangladesh that includes a Head
office located in or around Dhaka which will serve as the headquarters and primary training
centre of the company.
Identify and complete leasing of a sales office in a country identified for market expansion
by the company.
Acquire training equipment including equipment to get the training institute operational;
Release advertisement and conduct selection of first batch of painters for each training
centre.
The training period for batch, consisting of 150 students is 6 months. The first batch is
recruited during the middle of the year, by which time the team recruited at the beginning of
the year would have set up the alliance with the international institute, devised the course
curriculum along with the international partner, set up the first training centre.
Year -1
Expand operations both within the country by setting up training centres in the districts and
overseas by setting up another office in a different country to enhance business development
efforts.
Increase staff strength in accordance with growth. Head office to be allocated additional
staff to handle centralized administrative processes.
Marketing and promotional activities to continue at more or less the same pace as in the
preparatory period.
Year2
Continue the plan of expanding the presence of training centres within the country. A second
training centre is set up in Dhaka to cater to the larger target audience present in and around
the city.
Fine tune operations among all the centres and enhance relations with the external partners
namely International Staffing firms and the Accreditation institute.
Drop in Sales & Marketing expenses due to increase word of mouth advertising.
Maintain and consolidate overseas offices. No expansion plan for this year.
Year3
Decrease the pace of growth and consolidate operations both within and overseas.
Additional centre is started to consolidate its presence in a district with the highest potential.
370
Financial Projections
Costs and Investments (US$)
Year 0
Year 1
Year 2
Year 3
Employee Costs
Bangladesh Office:
Salary (US$) - Senior Management
Salary (US$) - Support Staff
Overseas Office:
Salary (US$) - Sales & Support Staff
60000
32500
66000
121550
72600
251680
79860
320106
90000
264000
363000
519090
20000
75000
40500
180000
22000
495000
267300
594000
24200
1089000
588060
1306800
26620
1397550
754677
1677060
4320
15000
12000
50000
1500
7000
8580
31500
25200
105000
4725
15400
18876
49613
39690
165375
9923
16940
23080
17364
13892
57881
12155
27951
186300
1600
1173690
1424
2464749
1128
3019318
1164
775720
3195369
6461633
7947767
300000
226800
40500
1980000
1440990
243000
4356000
3052809
534600
5590200
3773995
686070
567300
3663990
7943409
10050265
Profits (US$)
208,420
468,621
1,481,776
2,102,498
Income (US$)
371
BIBLIOGRAPHY
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Flow of Migration by country of employment: Source: BMET
Link: http://www.bmet.org.bd/Reports/Flow_Migration.htm
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Link:
http://www.un.org/popin/icpd/recommendations/expert/4.html
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373
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374
Link : http://www.samren.org/Facts_and_Figures/index.html
Srilankas labour outflow data: Source: Samren
Link: http://www.samren.org/Facts_and_Figures/index.html
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