In the era of globalization, immigration is a natural process, it should be used as a 'strong Nepali network around the world' and not as an 'intellectual migration'.
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The tendency of Nepali youth to migrate abroad has become a defining feature of the socio-economic landscape. The main reasons for this are the lack of economic opportunities, political instability, limited opportunities for education and employment. Also, the trend of emigration from Nepal is not new. It has a very ancient history. However, emigration has increased at a high rate in the last two decades.
After the 'British-Nepal War' of 1814 to 1816, a wave of Nepali Gurkhas to serve as soldiers in the British and Indian armies began. However, modern migration has started to accelerate since the 1980s and 1990s. Since there was a huge demand for low-wage (unskilled, semi-skilled) Nepalese workers in construction, hotels and tourism in countries including the Gulf countries and Malaysia, the process of leaving for work intensified.
At that time, the Nepal government also advanced the idea that the economy can be boosted through remittances. As a result, the government issued the Foreign Employment Act in 1985. After that, the formal way of labor migration was opened to work abroad. In the year 2000, when South Korea started taking workers to the EPS system, Korea also became an important labor destination for Nepalese.
Nepal has been refining the policy structure related to labor migration step by step and has made the regulation effective. To ensure the rights and safety of Nepalese workers, Nepal has so far signed bilateral labor agreements with 11 countries.
The level of migration from Nepal is staggering. The 2021 census showed that 2.2 million people are absent in Nepal, mainly workers and students. According to the Foreign Employment Department, more than 4 million Nepalis are currently working abroad. They are mostly concentrated in the Gulf countries, including India, Malaysia and South Korea.
However, the majority of Nepali workers abroad are partially skilled or unskilled manpower. More than 900,000 Nepalis abroad are engaged in 'primary occupations' such as cleaners, construction workers, domestic helpers.
Statistics show that about 725,000 Nepalis are working in the service sector. Only 35.1 percent of men and 28.3 percent of women are skilled workers (skilled workers) out of the total number of Nepalis who are out of the country for employment. Similarly, only 0.14 percent of males and 0.24 percent of females were found to be highly skilled or professional. Therefore, it is necessary to increase the number of skilled, highly skilled and professional workers to make the Nepali labor market more organized and efficient.
Remittance's Vartheg
Sources of foreign currency exports, tourism, foreign direct investment, foreign aid and subsidies are not satisfactory. This is why remittances play an important role in saving Nepal's economy. In the year 2022/23, Nepal received 12 trillion rupees (9.33 billion US dollars) in remittances. This is about 25 percent of Nepal's Gross Domestic Product (GDP). Year 2023/24
Remittances are estimated to increase to 10.46 billion dollars. According to the 2021 census, 64 percent of Nepali households receive remittances in some form, internal or external. This means that remittances have saved the Nepalese economy many times from very complicated economic crisis. The major credit for avoiding collapse of the Nepali economy even in crises like the decade-long Maoist conflict from 1996 to 2006, the devastating earthquake of 2015, the economic blockade of 2015-16 and the Covid epidemic of 2020 The
goes to the remittance itself. Various studies have shown that the contribution of remittances in reducing Nepal's poverty is high. A study by the World Bank showed that from 2001 to 2011, remittances from the Gulf and Malaysia alone reduced Nepal's poverty by about 40 percent.
Along with long-term labor migration, the trend of Nepali students going abroad for higher education has also increased at a high rate in the last two decades. The United States, Britain, Australia and Japan have become the main destinations for Nepalese students. According to the Ministry of Education, Science and Technology, only 112,000 students applied for No Objection Certificate (NOC) in 2022. This means that during this period, more than 300 young people migrated from Nepal for studies every day.
Both force and desire (push and pull factors) seem to be at work in the high rate of youth exit for study and employment. Reasons like high unemployment rate, prolonged political instability, limited educational opportunities are forcing Nepali youth to go abroad. Good pay, social security, high standard of living and hope of future security have drawn them abroad.
When a large number of young people migrate abroad, Nepal has to pay a heavy price. According to Census 2078, 62 percent of the population is in the age group of 15-59 years. This age group is an important opportunity for the economic development of the country. According to experts, Nepal has only got another 25-30 years to make good use of this 'demographic dividend'. At this time, we should make maximum use of this opportunity and use it in the field of economic development of the country.
While the traditional destinations of the Gulf and Southeast/East Asia continue to attract large numbers of workers, another new trend is that Nepali workers are moving significantly to high-income countries such as Japan, South Korea, Australia and European nations. A study conducted by IIDS in 2023 showed that Nepalis working abroad in the information technology (IT) sector exported services worth nearly half a billion dollars. However, Nepalis abroad are no longer limited to the usual jobs. They are gradually doing a lot of good work in the field of information technology.
Currently, countries including South Korea and Japan are looking for skilled workers in fields such as information technology (IT), healthcare and engineering. But most Nepalese migrants are still confined to low-skilled, labor-intensive jobs. It has exposed weaknesses in our education system and vocational training structure. Gender inequality further complicates migration. Recently, the number of female immigrants has been increasing. They are suffering from discrimination, limited access to education and problems including domestic work and sexual exploitation.
Policies are not enough to promote youth entrepreneurship and innovation. Nepal's national policy is still focused on the regulation and control of labor migration. While entrepreneurship development does not seem to be prioritized. Nepal needs to get out of the identity of a cheap labor supplier country and move towards becoming a center of innovation, information technology and entrepreneurship. For this, a radical change in policy-making thinking is necessary.
Billions of dollars coming to Nepal
Remittances should not be spent on consumption but should be invested in innovation and promoting economic growth. I recently co-authored a study by IIDS on the Nepali diaspora in the US. Which showed a harsh reality. In the year 2023, it seems that Nepalis sent about 1.28 billion dollars in remittances from America through both formal and informal means.
What this study shows is that only 13 percent of the Nepalis living in America have made financial investments in the country. When asked why the rate of investment is so low, the respondents replied that it is not because they are not interested, but because the proper system or environment for investing in Nepal is not suitable. Unnecessary government paperwork, politicization, mistrust of public institutions and lack of clear incentives are seen as obstacles. Therefore, despite the desire and ability to invest in the country, the Nepalis abroad are hesitating.
The study of IIDS has also pointed out the potential of first and second generation Nepalis abroad. She is a highly educated Nepali who has gained experience at the international level. Therefore, they can act as a bridge to connect Nepal with the global economy.
Most of them are in various professions like doctors, engineers, artists, businessmen, information technology, who can bring investment, skills and latest thinking to Nepal. But for this, Nepal should use and implement policies and financial instruments (such as foreign bonds etc.) that simplify the investment process, tax exemptions and promote foreign investment. Nepal should also focus on its development and expansion by identifying the areas of comparative advantage it has.
Immigration should be made full use of the opportunity by building it as a 'strong Nepali network around the world' rather than as an 'intellectual migration'. Immigration can become a major force for Nepal's development if we can create policies that encourage the diaspora to reinvest, provide skills and opportunities to the youth. Now is not the time to be confused about whether to stop the youth in the country or to let them go abroad.
Migration is a natural process in the age of globalization. If we can make timely policy changes, join hands with Nepalis abroad in economic development and invest in areas with comparative advantage, immigration can be made a reliable engine of economic development.
