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WORLD VISION

WORLD Vol. 2 • No. 2 • July 2010

SKILLED AND UNSKILLED LABOUR MIGRATION UNDER GATS
MODE 4 NEGOTIATIONS AND POVERTY REDUCTION
IN BANGLADESH

Md. Morshed Hossain Associate Professor, Department of Economics,
Begum Rokeya University, Rangpur, Bangladesh.
Dr. Md. Motiur Rahman Associate Professor,Department of Management & Human Resource,
Begum Rokeya University, Rangpur, Bangladesh.

Abstract

The general agreement on Trade in services (GATS) is a new trade agreement which came into force with the founding of the World Trade Organization (WTO) in 1995 as a result of the Uruguay Round negotiations. Bangladesh is one of the participants in the supply of the global labour market. Temporary Movement of Natural Persons (TMNP) i.e. mode 4 can provide it with the opportunity to send it people abroad to deliver services. Mode 4 is the smallest mode of delivery in terms of the amount of trade flows and volume of commitments. Global liberalization in the service sector, especially allowing temporary movement of natural persons, can have a vital role in the alleviation poverty in the developing countries in general and in the LDC’s in particular. When skilled personnel leave a developing country for a developed one, typically their incomes are increased significantly. This contributes to raising the national income of the developing country, buts its poverty implication is not so clear. Since skilled workers were initially non-poor, it does not entail direct contribution to poverty alleviation Liberalizing the movement of low skilled or unskilled workers from the developing countries to the developed one is a far more secure route to general income growth and poverty alleviation in the developing countries. As because, developed countries are poorly endowed with low—and medium skilled people, the income increase for these people is likely to be proportionately larger and by moving, they also reduce the over- supply of labour at home.

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