Remittance Utilization and Women Empowerment in Rural Bangladesh

Abstract

Remittance plays a significant role in accelerating macro-economic growth and is unarguably a vital source of finance at micro level in developing countries. Remittance inflows enhance the foreign exchange, foreign reserve and meet up trade balance. It has great potential to and an endeavor of unveiling the prospects of socio-economic development of left-behind families and communities in rural Bangladesh. Many scholars have done a lot of works on remittance as well as migration ranges from poverty reduction to trade and investment. These works are piece mill and the information used is suffered from asymmetry and moral hazard. Though Ministry of Expatriate’s Welfare and Overseas Employment (MEWOE) is entrusted with protecting the rights and the interests of migrants in the host country, yet there is a lack of appropriate policy measures to protect rights, weak representation and limited attention given to migrant workers, higher waiting time to migrate and uncertainty of expected employment, and deficiencies of institutional facilities. To maximize the flow of remittance in the evolving world environment and the benefits of their uses at the domestic front a concerted policy effort is imperative. Proper diagnosis of remittance allocation and identification of the related problems should be done for appropriate and pragmatic policy implications. Despite the expanding literature on the subject, there remains inadequate understanding of a number of issues related to nature and causes of migration, utilization of remittance and investment behavior. The micro level understanding of the impact of remittances also remains inadequate, especially relating to factors preventing or constraining productive use. Another important area of enquiry is the impact upon the individuals and the communities they left behind. Studies on the impact of migration/remittances upon left behind family members, especially women autonomy, are given qualitatively with a single dimension but quantification of women empowerment of the left-behind members still demanded. Considering its importance, an attempt has been made to investigate the various related issues on ―Remittance utilization and women empowerment in rural Bangladesh‖. This study focuses on socio-economic impacts of remittances in rural areas of Bangladesh in terms of social and economic consequences at both household and community level. Besides, an endeavor also has been taken to quantify the pattern and degrees of empowerment for left-behind prime decision making women and structural change in women empowerment between remittance recipient and non-recipient households. The retrospective cross-sectional study is done by stratified cluster sampling technique comprising a sample of 990 remitted and non-remitted households (508 remitted and 482 non-remitted households) through personal in-house interviewing with the help of a structured questionnaire to the household heads and a woman who makes the prime decision in the household. The estimates of some socio-demographic characteristics showed in this study were approximately same to the corresponding estimate of national statistics which prove the sample is representative to the study population. Average household size was 5.31 and sex ratio was 98.3 male per 100 female. The dependency ratio of non-remitted household was greater than that of remitted household. About fourteen percent of the study population remained illiterate who already passed their normal age of school attainment. The volume of migration was proportionally higher in joint family, female headed households and Muslims. The migration was relatively lower in absolute and functionally landless household. The annual average income of remitted household was double compared with non-remitted. Most of the migrants were young aged, male, less educated and the destination mostly to the Middle East countries. Majority of migrants are either unskilled or semi-skilled and they financed their migration cost from loan or by selling/mortgaging permanent asset and the average waiting time for migration was about six months. Almost all migrants were temporary, went through proper channel and had the intention to return home. A migrant earned twice as much in abroad relative to the earning at home country. Migrant households were mainly depending on remittance whereas non-remitted households‘ major income came from non-farm activities. Higher education enhanced the household income but higher dependency hindered it. Multivariate analysis showed that remittance, education, household size, women empowerment and wealth had positive effect on income; however, dependency burden had negative significant effects. Larger portion of remittances was expended for food consumption among different other major purposes like agriculture, clothing, social cost and investment, and food consumption. Irregular remittance recipient households expended more in clothing, social cost and investment than those received regularly but the expenditure on agriculture and food were vice-versa. The greater order of migration of an expatriate can play better role in socio-economic betterment. Investment in productive sector was low especially the aged household head were less interested to invest in productive purpose. Average savings was higher in remitted than non-remitted households. The average annual savings in remitted household was increasing with increasing level of household head‘s education, wealth and household size. The lower dependency was leaded higher average annual savings. Approximately, seventy percent household head consented that international migration is profitable however, younger household heads were perceived about improving socio-economic position than their neighbors. Irrespective of remittance receiving status, a woman was more empowered in making household decision than making economic decision and freedom of physical movement. Women of remitted household were more empowered in household and economic decision making but were less empowered in freedom of physical movement than non-remitted household. Education was the strongest fostering factor influencing women‘s autonomy but household head‘s education had negative significant effect on freedom of physical movement for all households. Mass media exposure, control over own assets and earning activities had significant effects on women empowerment. Length of marriage had a positive significant effect on household decision making in remitted household but negative in non-remitted household. It also had positive significant effect on aggregated women empowerment in remitted household and on freedom of physical movement in non-remitted household. Number of living children had positive significant effect on women empowerment. Age of household head had positive significant effects on household decision making and negative significant effects on freedom of physical movement and aggregated women empowerment. Women of female headed remitted household were significantly more empowered. Household size had negative significant effects on women empowerment. There were a structural change in women empowerment and it was evident that women of remitted household were structurally more empowered than that of non-remitted. Remittance precipitates changes the household structure, the portfolio of income, women empowerment structure and the nature of household resources. It has the potential role to change decision-making authority within the household. Such changes in the household have particular importance for designing programs and projects intended to foster the productive use of remittances; encouraging the investment of remittances in productive sectors such as social investment, human resources development, etc. This study also highlighted some areas where researchers can further work; policy planner can consider the issues for betterment of remittance use pattern and enabling environment establishment. This is also helpful in identifying the areas where government interventions are essential. Besides, further research should be continued to have better understanding the importance of remittance and its effect on women empowerment.