The movement of people from one place to another, whether it occurs within a state or across international borders, is considered to be part of the process of migration. It covers the emigration of people who are displaced, refugees, uprooted, and economic migrants (IOM, 2003). Given that approximately one in every 55 people living in the world today is a migrant, migration is regarded as a significant global issue (IOM, 2003). More people are capable of moving and are motivated to do so when they have access to modern transportation and communications. Contrary to popular belief, which holds that migration primarily occurs along the South-North axis, South-South migration is significant.
Nearly half of the migrants from developing countries are believed to reside in other developing countries, according to data from national censuses. Nearly 80% of South-South migration occurs between nations with neighbouring borders (Ratha and Shaw, 2007). The core destination for migrants is South Asia, which includes Afghanistan, Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan, and Sri Lanka. India is the most populous, dominating, and largest of these nations in terms of landmass and GDP (Binod Khadria, 2005).
Importance of Economic Migration in South Asia
Migration is important for economic growth. Labour mobility, both within and between nations, promotes economic growth by allowing individuals to relocate to areas where they can be more productive. It results in better resource allocation and raises overall economic output. Because they can spend their income in an area with lower prices, migrants themselves, particularly those who maintain contact with their country of origin, stand to benefit the most from this.
Given the significant wage differences between workers with comparable skill levels in different countries, there are significant potential benefits from international migration, particularly for low- and middle-income countries. Better opportunities for children’s education, better access to housing and food, and the capacity to pay for medical services are additional advantages of migration (Samuels et al., 2011; Thieme 2006). One pull factor is the social influence of friends and neighbours moving to India. Push factors include the lack of employment opportunities and domestic business opportunities (Bam et al., 2013).
Covid and Migration in South Asia
Migration can help South Asia recover from the effects of unprecedented economic shocks and support long-term development (Mayumi, 2012). International workers in the Gulf states, such as those from Bangladesh, Nepal, Pakistan, and Sri Lanka, can earn up to five times as much as they would back home and contribute to some of the largest remittances (the act of transferring or sending a certain amount of money from one party to the other) inflows ever recorded. Remittance inflows provide an estimated 20% of Nepal’s income, and they contribute 6 and 8% of the GDP in Bangladesh and Pakistan, respectively.
Additionally, migration enables people to cope with regional economic shocks like extreme weather events, to which South Asia’s rural poor are particularly susceptible. It is puzzling that total official international remittance inflows to South Asian countries did not fall in 2020, given the evidence from household surveys (Rutkowski, 2020). Although by 2021, many countries were experiencing a slowdown in aggregate international remittance inflows, with further decreases or stagnation projected, a trend more consistent with what surveys have suggested. This may have been caused by returning migrants liquidating their savings or switching to formal remittance channels as a result of a disruption in informal channels such as the degree of information transparency, and language and cultural barriers.
Analyzing the Role of Remittances
The largest beneficiary of remittances worldwide is South Asia. Remittances have been crucial in helping Nepal achieve its sustainable development goals, cope with economic shocks, and reduce poverty, according to IIDS Executive Chair, Dr Biswash Gauchan. According to the Nepal Rastra Bank, Nepal received Rs 680 billion in remittances from Nepali migrant workers in various countries in the first five months of the current fiscal year (July 17-December 15, 2022). Remittances are greater than the country’s foreign exchange reserves in Bangladesh and Nepal. One of the key features of the remittance system in South Asia is the high proportion of informal remittance inflows (typically generated privately; through unrecorded channels).
As informal remittances do not effectively link to capital enhancement in the formal financial system, South Asian migrant workers’ high reliance on these channels is problematic. According to empirical studies, households with increased incomes from remittances but no connections to formal financial systems spend more on homes, land, and other consumption goods like furniture, food, and clothing but have fewer financial assets like savings and investments ( World Bank Group, 2012). It is crucial for South Asian nations to increase formal channels for remittance transfer, lower transaction costs associated with this process, and improve knowledge and information among households with migrant workers in order to increase the use of remittances.
Vulnerabilities and the Road Ahead
Human rights violations and severe exploitation of migrant workers are both possible during the migration process and once they arrive at their final destinations. Government and non-state actors should take action to combat exploitation and violations of human rights. For cross-border migrants to receive adequate protection, Asian nations still have a long way to go. However, they frequently ignore cross-border travel from Bangladesh and Nepal to India in favour of labour migration to the Middle East and other developed nations (Samuels & Wagle, 2011). The rate of immigration from Bangladesh and Nepal is likely to rise, given India’s robust economic growth. Recognizing the existence of unauthorized labour migrants travelling from Bangladesh to India, addressing lax labour laws and policies, separating trafficked victims from cross-border migrants, and strengthening regional and national policy implementation are all necessary to make the environment for migrants safer.
Manya Jha is a second-year student of Economics at Indraprastha College for Women.
References
- Bank, A. D. (2012, May 1). Worker Migration and Remittances in South Asia. Think Asia. https://think-asia.org/handle/11540/138
- India Centre For Migration. (2020). South Asian Synergies in International Migration: Identifying Best Practices – Indian Council of World Affairs (Government of India). https://www.icwa.in/show_content.php?lang=1&level=3&ls_id=8275&lid=5451
- Rahman, M. M., Yong, T. F., & Ullah, A. K. M. A. (2014). Migrant Remittances in South Asia: An Introduction. Palgrave Macmillan UK EBooks, 1–30. https://doi.org/10.1057/9781137350800_1
- Rutkowski, M. (2023, February 19). Making migration safer and more productive for South Asia. World Bank Blogs. https://blogs.worldbank.org/endpovertyinsouthasia/making-migration-safer-and-more-productive-south-asia
- Rahman, S. S. (2021). Transnational Migration in South Asia: Trends, Causes & Factors. http://www.themigrationnews.com/news/transnational-migration-in-south-asia-trends-causes-factors/
- World Bank. (2022). Coping with Shocks: Migration and the Road to Resilience. World Bank, Washington, DC. Doi: 10.1596/978-1-4648-1920-9.
- World Bank. (2022). Migration Can Boost South Asia’s Recovery and Support Long-Term Development. World Bank. https://www.worldbank.org/en/news/press-release/2022/11/07/migration-can-boost-south-asia-s-recovery-and-support-long-term-development
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