Employment generation through overseas migration

Overseas migration plays an important role in the economic prosperity of individuals as well as of nations - both for countries of origin and destination. The economic contribution of migration, especially towards poverty reduction, employment generation and women’s empowerment is extensive

By Dr. Sabur Ghayur

Close to 200 million people that is 3 per cent of the world population is estimated to be the international migrants; half of them are females. Whereas, 1 in 35 is a migrant globally, in case of OECD countries it is 1 in 10. Some 4 million emigrated to the OECD during 2006 alone on “permanent” visa type – the USA receiving 1.3 million. In the Gulf countries, the emigrants largely outnumber the local population. The migrant workers alone are estimated to be about 95 million; more than half of them are females.

Overseas migration plays an important role in the economic progress and prosperity of individuals as well as nations - both for countries of origin and destination. The economic contribution of migration, especially towards poverty reduction, employment generation and women empowerment is extensive. It is also an effective mechanism of transferring new skills to labour when they migrate to other nations. Indeed, on return the migrants bring knowledge and skills as well as social capital to their countries. The remittances sent by migrants, not only provide livelihood to their families but the much needed funds for the development policies and programs.

The remittances help in building foreign exchange reserves and providing balance of payment support. Remittances sent by them form an important source of foreign exchange earnings. In case of the Philippines, some Central American states and Bangladesh, these were 12 per cent, 10 per cent and 8 per cent respectively of the GDP. Migrant workers from Pakistan have also been significant contributors in providing the much needed foreign exchange for development needs including import facilitation. They remitted about US $29 billion in six years up to 30th June 2008; $5.5 billion in 2006-07, $6.6 billion 07-08, $7.81 billion in 2008-09 and a monthly average of $772.45 million during July – October 2009.

There is also no denying the fact that the host countries receive substantial benefits, such as, meeting labour shortages, enrichment of human capital and augmentation of economic activities. It is, therefore, an important source of economic growth and development for individuals as well as nations.

Pakistan too is an important source country. Whereas, the size of the Pakistani diaspora is estimated to range between 6-7 million, the people leaving for work during 1971 - 2008 was recorded as 4.5 million. Till the end of 2008, the average number of workers emigrating annually had been over 140,000, the number exceeding 280,000 in 2007 and 430,000 in 2008. This year is expected to record highest number of workers emigrating – about half a million.

The destination of our workforce has been to over 50 countries. However, Gulf countries notably Saudi Arabia and UAE remain the most important countries for Pakistani migrant workers. No doubt, the contribution of Pakistani migrant workers and Diasporas to the national economy is significant. It is not only the much needed foreign exchange support that is being provided through these remittances, but equally important are the numerous economic activities undertaken or the consumption that is being supported by the remittances receiving households.

The overall number of emigrants and annual flows, no doubt, has been instrumental in addressing employment and poverty issues in the country. Moreover, the remittances sent to Pakistan helped in tackling development resource constraints. Many while working overseas acquired new skills and accumulated knowledge that contributed in human capital formation. The importance of migration is gaining new “heights” under the current socio-economic situation.

It is not only the existing underutilisation of workforce, both unemployment and underemployment – affecting about a-fifth of the workforce - that is a cause of concern. The situation is being aggravated further by a labour force growing by about 2 per cent annually in an environment of the current economic depression, along with the deteriorating law and order situation.

This situation is and will continue to exert pressure on the policy makers and planners to explore all avenues for gainful and decent employment including “safe” emigration. Thus, a renewed focus on tapping employment opportunities overseas would be an important factor in not only tackling unemployment and poverty in the country, but also in raising the levels of remittances.

In the migration process, we are currently confronted with a number of issues – rather challenges. The availability of information regarding the very process of migration, such as emigration policies of competitors, economic plans and sectoral priorities of the host countries, return migration, etc is conspicuous with absence; at best are inadequate. An increasing number of the workforce considers overseas migration as an escape route out of poverty and unemployment. However, not sufficient amount of technical vocational education and training (TVET) competence matching the demand overseas as well as necessary facilitation have been provided to migrants. Furthermore, focus on seeking increasing work opportunities overseas has not been coordinated with developing a mechanism for workers’ protection and welfare. Efforts are also wanted with regard to: (i) ensuring transparency in recruitment procedures, (ii) protecting borders, (iii) readily accessible support of the Pakistani missions abroad in the event of a need, (iv) welfare of the family members left behind, and (v) effective reintegration of returning migrants.

The foremost action that needs serious consideration is none other than maintaining our size and share in the traditional destinations in the Gulf countries and also responding to the changing patterns in demand taking place over there. It should then be supplemented by concerted efforts exploring new avenues in the selected non-traditional destinations in East and South East Asia, namely: Malaysia, Singapore, Hong Kong, Taiwan, Korea and Japan. To these should be added countries like Australia, New Zealand, United Kingdom, etc - that have introduced point system for “immigration.”

Disciplined, trained and motivated workforce is the key to keep the size of Pakistani workforce intact in the traditional destination countries and penetrating in the non-traditional destination countries. “Sufficiently trained” is emerging as a determining factor in the non-traditional destination countries. Timeliness in processing overseas demand with ensuring relevance and quality of the workforce is a critical factor in new destination countries.

Pakistan today, with a long history of migration notwithstanding, finds itself challenged in terms of: i) improving capacity to regulate the recruitment process; ii) eliminating unsafe; exploitative and abusive situations of migration; iii) improving protective and welfare mechanisms for emigrants; and iv) importantly, not only retaining and expanding share of our workforce in the traditional host countries but also emerging as an important source country for other labour receiving countries. No doubt, safe emigration requires a simultaneous focus on matters related to four main areas, namely: (i) pre-departure, (ii) the country of work, (iii) families left behind, and (iv) re-integration on return.

The first ever National Emigration Policy (NEMP) was prepared and finalised by the Policy Planning Cell of the M/O Labour and Manpower in early 2009. This policy has dealt with all aspects relating to emigration process rather extensively. Its recommendations are on the basis of a consultative process that took place in federal and provincial capitals as well as some other important cities. The recommendations do carry answers also for tackling unemployment and under employment through better managing migration under safer conditions.

This policy is awaiting presentation to the Cabinet since January 2009!

— (The writer heads Islamabad-based centre for labour advocacy and dialogue (CLAD). E-mail: sabur@clad.org.pk)