Developing
countries caught in Mid East trap
NEW YORK- The Middle East, one of the few regions of the world
which neither professes multi-party democracy nor respects the legitimate
rights of migrant workers, has traditionally remained a major source
of hard currency for developing nations dependent on expatriate earnings.
According to the Geneva-based International Organisation for Migration
(IOM), about 10 million migrants now work in the Middle East and the
Gulf region, mostly from India, Pakistan, Bangladesh, Sri Lanka, Egypt,
the Philippines, Indonesia, Lebanon, Nepal and Thailand.
The overwhelming
majority of workers are Asians, employed as unskilled workers and
housemaids, primarily in Saudi Arabia, Bahrain, Kuwait, United Arab
Emirates, Qatar and Oman. The latest figures released by IOM indicate
that the total value of expatriate remittances to developing nations
has reached about $65 billion annually compared with the average
of about $50 billion disbursed as foreign aid, labelled Official
Development Assistance (ODA), by Western donor nations. Ambassador
Iftekhar Ahmed Chowdhury of Bangladesh admits that remittances are
not only a major source of income for his country but have also
contributed significantly to reducing its dependence on foreign
aid.
The 1991 Gulf
War created a mass exodus of migrants, which in turn caused severe
damages to the economies of several developing countries, particularly
in the Indian sub-continent. And now a new war in the Middle East
is threatening devastating consequences on the economies of developing
nations.
The immediate
impact would be the rise in oil prices which has already gone up
from about $18 per barrel in 1997 to the current average of about
$30. India alone has about four million of its nationals living
in the Gulf region.
Over 500 companies
are engaged in Indo-Iraq trade, which is worth over $1.0 billion
dollars annually, while projects worth more than $5.5 billion dollars
are in the pipeline. Indian workers in the Middle East send home
an average of more than $10 billion annually.
The figure
for 2000 was about $11.1 billion. Sri Lanka's Permanent Representative
Ambassador C. Mahendran says that overseas remittances from the
Middle East continue to be one of Sri Lanka's major foreign exchange
earners, accounting for over one billion dollars annually.
According to
the Sri Lanka Bureau of Foreign Employment, about 96,000 Sri Lankans
lost their jobs during the 1990-1991 Gulf crisis. Sri Lanka, which
also has a prolific multi-million dollar tea market in the Middle
East, cannot afford to take another hit, he says. ''We are hoping
for a peaceful resolution to the problem.''
The negative
impact of a war will also reach out to Bangladesh, which earned
$2.0 billion last year from migrant earnings, and to Egypt whose
total remittances from expatriates amounted to about $3.7 billion.
Chris Lom, of IOM, says that during the Gulf War, his organisation
helped repatriate over 215,000 stranded third country migrant workers
in the region.
"We don't
know what population displacement would occur and from what countries
if there was a war," Lom said. The returning migrants not only
caused a halt to all inward remittances but also created new problems
of unemployment in their home countries.
At a much broader
level, a new war in the Middle East could have repercussions on
stock markets, the import-export trade, overseas travel - all leading
to a downturn in the global economy just when it is on the verge
of recovering from the disastrous impact of the September 11 terrorist
attacks on the US last year.
The threat
to the global economy was best summed up by Ambassador Chuchai Kasemsarn
of Thailand who told the Security Council that the reliance of many
economies on the Middle East for trade, investment and supply of
natural resources- including oil- means that any instability or
outbreak of military action in the region could have severe adverse
impacts on the livelihood and well being of people all over the
world. "The economic recovery process pursued by developing
countries may be stalled or even reversed. This is a no-win situation
for everyone," he warned.
|