Bangladesh: Debt Mediation for Returnee Migrants

Debt is one of the most significant barriers to sustainable return and reintegration for returnees and potential migrants. However, its significance remains largely underreported and related challenges are often not addressed by reintegration and development programming. Bangladesh has some of the most expensive labour migration corridors in the world. In order to finance labour migration, a large number of migrants in Bangladesh take loans from local money lenders with land as collateral, which may result in a debt bondage relationship including forced labour.

The objective of this project is to contribute to improved reintegration approaches for returnees in Bangladesh through building capacity of the Government of Bangladesh (GoB) and Civil Society Organizations (CSOs) in addressing challenges relating to debt liabilities of returnees. The project aims to sensitize the GoB and CSOs on the subject of debt liabilities and highlight debt mediation as an effective alternative for achieving sustainable reintegration (Outcome 1). This will be enabled through conducting a research study and sharing with relevant GoB officials and CSOs its findings as well as recommended measures to improve reintegration programming (Output 1.1). The project will also carry out a pilot debt mediation initiative, which would contribute to improved loan and repayment systems (Outcome 2). This can be achieved through ensuring the availability of tailor made services and advice for participating returnees, particularly female returnees, to improve their debt management and response (Output 2.1). Additionally, the project will develop a policy brief on debt mediation on the basis of lessons learned from the pilot activities and undertake a set of advocacy initiatives with relevant GoB officials and development partners in order to effectively address the issue of debt liabilities of returnees, potential migrants and their families.