Undocumented regional migration is not reflected in official numbers

South Asian countries are currently undergoing enhanced industrialisation, primarily driven by one or two major sectors. However, this growth is accompanied by challenges, notably national security concerns and conflicts between natives and non-natives, which impact cross-border labour migration.

Undocumented regional migration at a large scale is occurring, yet it is not accurately reflected in official numbers. Workers in the South Asian region often migrate to the informal sector with low wages, exposing them to a higher risk of discrimination. The significant migration indicates a demand for labour supply, yet, policymakers tend to overlook the issue of labour market migration.

To address these issues, there is a need for a comprehensive study to examine the structure of the labour market in South Asia. This study should encompass a skill demand analysis and explore opportunities for cross-border migration. Learning from the experiences and models of Association of Southeast Asian Nations (ASEAN) and other regional cooperations concerning labour migration is crucial in developing effective policies.

These are some of the insights that emerged at the parallel session B2 of the Fourteenth South Asia Economic Summit (SAES XIV) titled ‘Cross-border labour market management’ held on 5 November, 2023.

The Chair of the session, Mr Madhu Raman Acharya, Former Foreign Secretary of the Federal Democratic Republic of Nepal, emphasised the need to discuss complementarity in the South Asian labour market. The crucial question posed was whether the South Asian countries are solely competitors or if there is any potential for mutual complementarity.

‘Though intra-regional migration in South Asia is quite substantial, it is barely reflected in South Asian policy discourse’ remarked Ms Dikshya Singh, Programme Coordinator South Asia Watch on Trade, Economics and Environment (SAWTEE), Nepal.

Mr Kshitiz Dahal, Senior Research Officer, SAWTEE, said ‘Today, not only is the science of climate change crystal clear, but its impact is being seen and heard all over the world’.

‘Understanding the economic and social contributions of cross-border migrants will be beneficial, as it allows for an assessment of the synergies and trade-offs involved’ emphasised Mr Raghav Chakravarthy, Senior Research Associate, JustJobs Network, India.

The Research Director of South Asian Network on Economic Modeling (SANEM), Dr Sayema Haque Bidisha, raised a critical question, stating, ‘While we have achieved higher total factor productivity and overall growth, has this translated into proportionate industrialisation in all countries when considering the environmental impact?’

While commenting on the migrants’ situation, Dr Syed Kaleem Imam, Former Federal Secretary, Government of Pakistan, highlighted that migrants seek a better life. However, he emphasised the importance of questioning whether there are adequate legal frameworks in place to protect their rights. He stressed that effective management and the reduction of economic disparities are essential to create suitable opportunities for migrants in their destination countries. He underlined the crucial need to implement regulations that govern the treatment and rights of migrants.

‘We must take action to address malpractices in migration policies. We need to establish a framework for setting minimum standards for working conditions and wages, among other factors,’ stated Dr Praveen Jha, Professor at the Centre for Economic Studies and Planning, School of Social Sciences, Jawaharlal Nehru University, India.

The speakers at the session emphasised that poverty is the primary cause of unsafe migration in the region, highlighting the urgent need to address human trafficking as a major concern.

Additionally, due to gender norms in South Asian countries, women encounter constraints when entering the job market and striving to reach the upper segments of the employment sector. Therefore, there should be a distinct focus on uplifting skills across these countries.

A well-harmonised accreditation of skills for workers in this region could enable them to access job opportunities in cross-border labour markets. Establishing a common agreement among South Asian countries on the minimum standards for worker benefits, such as wages and working conditions, is essential. Harmonised labour laws across South Asian countries can further ensure better protection for workers.

High-level policymakers, political leaders, academics, development practitioners, civil society activists from Bangladesh and the South Asian region attended the session and shared their valuable insights.