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.
The University of Kelaniya, my seat of higher education, sadly was never considered the ‘cream of the crop’ in Sri Lanka when I attended; certainly not the Departments of Humanities and the Social Sciences! After listening to decades of unproductive lip service on the need for marketable graduates, I encountered a remarkable transformation in higher education at my very own university.
I witnessed a complete shift in attitude, professionalism and drive, among academics and students at a launch of The Certified Professional Marketing Graduates (CPMG) Program organized by the Department of Marketing and Management. It’s one of the many projects implemented by the Ministry of Higher Education under the Higher Education for the Twentieth Century (HETC) Project, with support from the World Bank. It was not just the launch of this new degree program that moved me, but it was the total quality and professionalism in the event management. It was indeed knowledge in action.
Jijodamandu, a small hilltop village in Doti district in Western Nepal is a full day’s walk from the nearest motorable road. Below the village, the hillside is littered by terraced paddy fields producing rice. Surrounding many homes in the village slightly above the terraced paddy fields, there are fruits trees planted sporadically – oranges, lemons and pomegranates. When I was leaving the village after a few days stay, my host handed me a bag of oranges. Not wanting to overreach his hospitality towards me and also knowing food security is a concern for them I initially declined his offer. But he was insistent. “For the walk back down,” he said. “Fruits we have plenty of. It is rice and grains we cannot plant enough.”
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.
Would you ordinarily expect a report on human development to have a separate and entire chapter dedicated to the subject of reconciliation and social integration? I certainly found it curious. Yet, on second glance, it became clearer to me that the connection was not surprising at all since the subject of the report was youth and development.
Let me explain. I am a child of the war. Having been born and raised in war-time Sri Lanka, I am convinced that young people can help mend fractured inter-communal relations, least because they bore the brunt of the conflict but most because in the context of my country it was disenchanted youth that spearheaded the move to conflict.