THE rising growth rates of the country’s economy is in trouble as the country has seen negative growth of inward remittances for the first time in 13 years in the just concluded fiscal year (FY) 2013-14 due mainly to political turmoil and static trends of manpower exports. Despite the migrant workers’ remittances to the country constituting the single largest source of foreign exchange earnings and thus playing a critical role in the socio-economic development of Bangladesh, the government has failed to concentrate its focus on the sector. Though the incumbent government has set the growth target of gross domestic product (GDP) at 7.3 percent for the FY 2014-15 based on the increasing trends of foreign remittance, but the inefficiency of government and its alienation from Middle East countries after the January 5 ‘uncontested elections’ plunged the country’s economy in danger. In the budget speech, Finance Minister AMA Muhith expressed his hope that in the next fiscal investment, export and remittance flows will increase as it is expected that the global economy will experience accelerated growth. But the fall of inward remittances put the GDP growth at stake and made Muhith’s view inaccurate.
The inflow of remittances declined by 1.61 percent to US$14.23 billion in the FY’14 from $14.46 billion a year ago, according to the central bank statistics, released on Thursday. An official of Bangladesh Bank said, “The flow of inward remittances was hampered seriously in the first half of the FY’14 because of the confrontational political situation in the first six months of the last fiscal.” The remittances from the Bangladeshi nationals working abroad were estimated at $1.29 billion in June 2014, up by $70.54 million from the level of the previous month. In May last, the remittances stood at $1.21 billion, the Bangladesh Bank data show.
Foreign remittances play a vital role in almost every sector of our development from the inception of the country in 1971. Development in every single category of Millennium Development Goals (MDGs) occurred due to the fact that the overall development of people was empowered greatly by remittances, as remittances have resulted in improved living standards of workers’ families and helped in improving the income distribution in favour of poorer and less skilled workers. The countries of Middle East and Northern Africa have been the key destinations for these migrant workers.
Declining remittances is a big issue for the economy as it will surely affect the growth of GDP and thus affect the country’s economy in the long run. Analyst of CPD said inward remittances from six major Middle East countries declined by 16.2 percent. Manpower exports from Bangladesh also fell by 10.5 percent during the period.
We always held the view that it is not honourable for us not to be able to create job opportunities within the country and export poor helpless workers as commodity. We find no anxiety on the part of the government to create job opportunities. But let them at least do everything possible to regain the lost demands of workers from Bangladesh. Show competence to find new markets.
