About twenty years ago, while working for BRAC in Bangladesh, I was accompanying some visitors to one of BRAC’s non-formal education schools in a village about two hours out of the capital city Dhaka. To my surprise, instead of the usual sight of a classroom full of children, we found that only about 10 out of the 30 enrolled had showed up. Upon enquiry the teacher pointed out what seemed obvious to her: it was December and many children were in the fields helping harvest the rice crop or doing household chores. To be honest I didn’t think much more of the issue at the time.
In introductory macroeconomic class, students learn the theory of the multiplier and many interesting counterintuitive notions such as the paradox of thrift and the balanced budget multiplier based on the multiplier process. Essentially, the multiplier multiplies because one person’s expenditure is another person’s income of which they spend a fraction, which in turn becomes another person’s income, of which a fraction is spent and the process eventually converges with subsequent increments to income getting smaller and smaller.
How does the multiplier process work in reality? The Refugee Migration Movement Research Unit (RMMRU) in Bangladesh has recently completed the first phase of a longitudinal research on the impact of external and internal migration on income and poverty in Bangladesh. The research is based on a survey of 5084 external, internal and non-migrant households from 102 villages. Among others, one of the most interesting is their findings on the impact of external migration on local level development through remittances and expenditure behavior of remittance recipients. Note that since the mid-1970s, Bangladesh has participated mostly in the short-term international labor markets of the Gulf and other Arab countries, as well as South East Asian countries. Over the last ten years, an average 500,000 workers have migrated abroad for work each year. Currently, an estimated 8 million Bangladeshi workers are on short-term migration abroad.
In 2013 the short-term international migrant (STIM) households on average received Tk 251,400 (over $3100) as remittance. The maximum amount received was Tk 4,400,000 and the minimum was Tk 6000. The study found international migration plays a significant role in reducing poverty. Only 13 percent of the STIM households were below the poverty line, compared with 40 percent of the non-migrant households. The survey particularly covered those groups that were either below poverty line, experienced occasional deficits, or ‘break-even’ situations at the time of their first international migration.
The Bangladesh government wants to enhance support for university research as a part of its strategy for higher education (Strategic Plan 2006-2026). Supported by the Academic Innovation Fund (AIF) under the Higher Education Quality Enhancement Project (HEQEP), researchers in Bangladeshi universities are conducting advanced research on some of the most pressing economic challenges in key sectors of the country such as agriculture, environment, and health. With upgraded research facilities and equipment, Bangladeshi faculties are publishing more on international scientific journals and training competent PhD graduates.
A major part of technical education involves gaining hands-on experience and skills through working with real material and tools. The worked on materials in the class, as one would expect, is thrown away at the end. But, that was not the case for the students of the Civil Engineering department of the Rajshahi Technical Training Center (TTC), who gave a facelift to institution by repairing the road, pavement, and guard room and upgrading the infrastructure. “The young men and women of Bangladesh care about their country and are passionate about what they do. Empowering them with knowledge and skills and the means to utilize their learning through employment ignite their inner power to make a difference in society,” said Mahbubur Rashid Talukder, the Principal, Rajshahi Technical Training Center (RTTC), praising his students ideas and initiatives that transformed the institute.