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Abstract
This article explores the significant yet largely untapped potential of international migration and remittances for the economic development of Bangladesh. It examines the scale and pattern of labor migration from Bangladesh, primarily to the Middle East, and the corresponding flow of remittances. The study argues that while remittances have become a vital source of foreign exchange and a lifeline for millions of families, their full developmental impact has not been realized. The research identifies the key challenges in the migration process, including high costs, exploitation by intermediaries, and the lack of protection for migrant workers. It also analyzes how remittances are typically used, noting a predominance of consumption over productive investment. The paper concludes by proposing a set of policies to better manage the migration process and to create incentives and mechanisms for channeling a greater portion of remittances into national development, thereby harnessing the full potential of this crucial resource.
Full Text
International migration and the remittances sent home by workers abroad have become a cornerstone of the Bangladeshi economy. This paper provides a comprehensive analysis of this phenomenon, focusing on its untapped potential for national development. The study begins by quantifying the significant contribution of remittances to Bangladesh's balance of payments and their role in alleviating household poverty. The core of the article, however, moves beyond these immediate benefits to explore how this potential can be more effectively harnessed. The analysis is two-pronged. First, it examines the "migration" side of the equation. It identifies the major structural weaknesses in the management of labor migration, such as the dominance of an unregulated private recruitment sector, which often leads to the exploitation of workers. It calls for a more proactive state role in securing better terms of employment and protecting the rights of its migrant citizens. Second, the paper analyzes the "remittances" side. It critiques the lack of effective financial instruments and investment opportunities that would encourage migrant workers and their families to channel their savings into productive enterprises rather than solely into consumption and land purchase. The findings suggest a clear need for a comprehensive national policy that treats migration and remittances not as a simple short-term gain but as a long-term strategic asset for development. This includes financial literacy programs, special investment bonds for migrants, and support for diaspora entrepreneurship.