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Political Economy Of Illegal Migration

Political Economy of Illegal Migration: Profits and Fallouts

Group Captain M. Obaidur Rahman, ndc, psc

Introduction

Illegal immigration is a part of the global migration regime that seriously influences the existing global economic order. When migration potential in source countries is high while legal channels for migration are narrow, illegal migration becomes prevalent. For illegal migrants, informal sectors of economy are most attractive because of wide spread informal labour relations, non-contractual employment and lack of necessity for valid documents. Conversely, illegal migrants’ labour is preferable as it allows competitiveness through reduced labour costs and over-exploitation of migrant workers. Thus, both sides of informal labour relations are satisfied by the ‘illegal but beneficial cooperation’. Even the society benefits through lower product and services costs. The only obvious loser is the State: as it fails to take in the due taxes and, an ever-growing part of the economy falls into the clutches of criminality.

Short-term work related migration generates income for the emigrant and also for the sending country as ‘Remittances’. Remittances play an extraordinary role in the economy and development of many countries, far more important than the overseas development assistance (ODA). Worldwide, remittances are estimated at about $100 billion per year, approximately 60 percent going to the developing countries. Though ODA declined, remittances rose steadily despite weak economic performance as in the case of Bangladesh. Yet, compared to other remittance receiving countries, and in spite of enhanced outflow of migrant workers, Bangladesh could not perform comparably. Studies show that such non-performance is attributable to the predominance of illegal immigration and the resulting informal economy. Owing to political reasons, the governments do not yet formally recognize the importance of the political economy of illegal migration and its...