The breadwinner returns home

Its happening in India:

THE lush state of Kerala in the south of India generates most of its foreign exchange either by exporting people or importing them. It earned almost 20 billion rupees ($500m) from foreign tourists in 2006 (the latest year for which figures are available) and about 245 billion (in the same year) in remittances from Keralites working abroad, 89% of whom go to the Gulf.

The state has an astonishing 24.5 emigrants per 100 households. Kerala’s per capita output is one of the lowest in India, but its per capita expenditure is one of the highest. (Gopinath Pillai, a Singaporean diplomat of Keralite descent, describes the situation like this: one poor fellow works three shifts in Dubai, saving every penny to send home, where there will be eight guys reading two newspapers a day and discussing politics.)

Kerala’s emigration policy has been a model for the rest of India. It was the first state to set up a department for non-residents. It has started offering non-resident Keralites (NRKs) identity cards, which also provide social insurance, covering accidents and repatriation of the dead.

But the Gulf economies where most of these NRKs work are slowing. Some construction projects are on hold. As a result, Kerala may have to brace itself for a wave of reverse migration. At the recent Indian diaspora conference in Chennai, several speakers called on the government to set up a department for returnees.

Densely populated states like Kerala may hope that internal migration will replace international migration. But in many ways, the flow of goods and labour across India’s borders is now more impressive than the movement within the country itself. Mr Pillai remembers asking a returning labourer, “Why do you go back to your village in Tamil Nadu? I’m sure there’s a job waiting for you in Gujarat”. His answer? “It’s too far away”. The capital of Gujarat is 851 miles (1370km) from the capital of Tamil Nadu, which is 1,000 miles closer than Singapore.