Migration & Economic Growth (Download PDF)

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Migration & Economic Growth

  • Revival of social dialogue.
  • Social distancing and stay home became the common mantras during the lockdown.
  • Harris-Todaro model of migration (1970) :
    • Rural/agricultural workers decide to migrate to urban/industrial spaces.
    • The expected wage rate in the urban industrial sector is significantly higher than their present wages in the rural sector.
    • The expected wage is a ratio of the present urban wage rate and the ‘chance’ of finding a job.
  • One-tenth of the population had worn out:
    • Neither lived in what could be called as a home.
    • Nor were they safe inside their dwellings.
    • Without jobs savings of the migrant workers dried out.
  • Mapping this huge workforce would have been possible if:
    • The registration form could include the details of demographic information.
    • Level of skill
    • The kind of employment
    • The income earned
  • Skill Mapping of Migrants:
    • Migrants are likely to be provided jobs based on their skills and experience by the UP govt.
    • Constituting a Migrant Commission.
    • Nearly 23 - 24 lakh migrant workers have returned to Uttar Pradesh during the lockdown.
    • Construction Sector (largest set)
    • Painters
    • Carpenters
    • Drivers
    • Electricians
    • Security guards
    • Furniture and fitting workers
    • Auto-repair mechanics
  • Ricardo Effect:
    • Employers may opt for labour saving technology.
    • Response to an upward movement in the wage rate, triggered by a relative labour shortage.
  • Opportunities Untapped:
    • The registration forms of workers desirous to return contained the bare minimum details such as name, age, and the points of travel.
    • Hospitals that issued medical certificates could have been used as data collection points.
    • Boosting the consumption demand at the earliest is the need of the hour.
    • Consumption expenditure constitutes almost 60 per cent of India՚s GDP.
    • Use of surplus food grain stock to help the workers tide over the immediate periods of ‘coerced unemployment’ (use of force or other forms of compulsion) .
    • States can benefit by collaborating with ILO which has a rich experience of hand-holding many such projects across the globe.
    • Creating opportunities of gainful employment by utilising the skills the return migrants.

Phasing Out the Return of Migrant Worker

  • Many States have trained and deployed ASHA workers to spread awareness about the virus in slums.
  • Identification of those who are infected based on the symptoms.
  • Those uninfected could be ready for the safe return based on the information.
  • Classification of migrants hailing from within and those from outside the state, to arrange for an appropriate mode of transport.
  • NGOs can be encouraged to participate in ensuring a safe return of migrants by collaborating with the medical personnel.
  • Utilization of CSR funds could go a long way in promoting entrepreneurial development.
Significant Decrease in Macro-Economic Indicator
Macro- Economic IndicatorApr- June 2018April-June 2019
Private Final Consumption Expenditure (PFCE)7.3 %3.1 %
Government Final Consumption Expenditure (GFCE)6.6 %8.8 %
Gross Fixed Capital Formation (GFCF)13.3 %4.0 %
Exports10.2 %5.7 %
Imports11.0 %4.2 %
GDP8 %5 %

- Published/Last Modified on: September 14, 2020

Economy, Govt. Schemes/Projects, Yojana

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