Recognising the value of migrant money

For many years now, remittances sent by Bangladeshis working abroad have been the single strongest pillar holding up the economy. Just as families wait for these earnings with hope, the nation relies on them with the same need. Crucially, these funds serve as an anchor of stability for the banking sector which would otherwise struggle under the weight of massive non-performing loans. By bringing in deposits, remittances help give banks the liquidity they need and keep the system stable. In a broader sense, this steady stream of money has played for Bangladesh a role not unlike what foreign direct investment once did for China and Vietnam. It fuels GDP growth, but more importantly, it breathes life into both villages and cities, connecting the fate of the individual household with the progress of the entire economy.

Between July and September 17 of this financial year alone, Bangladesh received US$6.66 billion in remittances, nearly 20 per cent higher than the same period last year. The month of August brought in $2.42 billion while July saw $2.47 billion. Last year was even more remarkable, setting a historic record of $30.32 billion which is the highest inflow ever in a single financial year.

Remittances are often placed side by side with garment exports since both bring in much-needed forex. Garments do generate impressive sums, but a large share of that money is spent again on importing raw materials, machinery, chemicals and logistics. What remains as a net benefit is far less. Remittances by contrast arrive as clean money, flowing straight into households with almost no deductions. For this reason, they often stand in a better stead than exports in terms of net foreign currency even if they do not always receive equal recognition.

The transformative power of remittances is most vividly felt at the grassroots. To the extent that local communities have lifted themselves out of poverty, remittances have played a huge role. With the financial strength of local expatriates behind them, many families now live in houses with brick walls and concrete roofs. Their children attend better schools, healthcare has become more accessible and agriculture is steadily moving towards mechanisation. In numerical terms, this influx of capital has been responsible for elevating roughly 8.0 million families out of extreme poverty and into the lower-middle and middle classes.

None of this would have been possible without the vast Bangladeshi diaspora spreading across the world, which, according to the Bureau of Manpower, Employment and Training (BMET), numbers about 15.5 million. The critical importance of overseas employment becomes apparent when considering the domestic job market's limitations. Each year, 1.8 to 2.0 million new entrants join the labour force, yet the domestic economy can absorb only 0.7 to 0.8 million of them. The rest must rely on opportunities abroad. Imagining the strain on the economy if all of them had to find jobs at home is enough to reveal how frightening the situation would be. Overseas employment therefore provides not just economic relief, but protects both the economy and society from overwhelming pressure.

Yet this national comfort is built upon a foundation of individual struggle and profound sacrifice. The aggregate national benefit, however, conceals the high-risk, high-cost reality faced by many migrant workers. The migration process itself is riddled with exploitation. Many workers pay exorbitant fees only to never reach their promised destination. Those who succeed in leaving often confront wage theft, exploitative contracts and both physical and psychological abuse. Female workers face even greater risks, with cases of sexual harassment and deception tragically ending in some returning not with savings, but as corpses. 

The reality of migrant life is far removed from the imagined mountains of gold. Many risk their lives on dangerous routes including the perilous boat journeys known as 'the game,' which is a conduit for illegal migration. Even in the glittering cities of Europe, countless Bangladeshis endure gruelling hardship to provide comfort for their families back home. They work in hotels and restaurants even on holidays and Eid, missing the joy of celebration. Theirs is a life of isolation, spent struggling with unfamiliar languages, cultures and ways of living.

Paradoxically, distance has not weakened but deepened the migrants' attachment to Bangladesh. Precisely because they live so far from home, expatriates remain closely engaged in national affairs. During times of political upheavals such as the July uprising, they strategically withheld their remittances and turned financial contributions into instruments of protest. Such gestures reveal that their role is not confined to economics alone but extends to moral and social engagement. Their persistent demand for voting rights stems from this connection, and the Election Commission's recent pledge to allow them to participate in the upcoming national elections must now be translated into reality.    

Maslow's hierarchy of needs reminds us that once basic survival is secured, people seek belonging, dignity and a sense of fulfilment. While remittances secure the former for their families, the state itself often fails to facilitate the latter for the migrants. Many of them face humiliation at airports, neglect at embassies and indifference at home even though they are the backbone of the national economy. These remittance warriors deserve better. They should be honoured as key stakeholders, not made to feel abandoned by the very state their sacrifices sustain.

Domestically, Bangladesh faces its own challenges in managing migration and remittances. The most urgent issue demanding attention is the migration process. Safe migration is not a privilege but a responsibility the state owes to its citizens. Fulfilling this obligation requires dismantling syndicates that exploit hopeful workers, holding dishonest agents accountable and bringing the vast network of informal sub-agents under strict regulatory oversight.

In the end, the story of remittances is a story of people. It is a story of courage, sacrifice and quiet perseverance. If Bangladesh treats the remittance warriors with the fairness they deserve, provides meaningful opportunities for their contributions to make a real impact and recognises them as true partners in progress, the flow of remittances will not only endure but become even stronger.

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