Mainstreaming Migration and Remittances to the Development Agenda: Nepal Experience

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Mainstreaming Migration and Remittances to the
Development Agenda Nepal Experience 

• Jagannath Adhikari

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Presentation

• Types, scale and importance of migration/remittanc
  es on national economy.
• Village level studies on impact on society and
  economy.
• Policy evolution on migration and a case for
  mainstreaming migration and remittances.
• How development policies deal with
  migration/remittances.
• Policy gaps for mainstreaming migration in
  development policies.

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Major migration currents in Nepal (most of them
are occurring simultaneously.. But they are major
flows)

• Early in-migration leading to peopling of the
  country (6th-13th century).
• Traditional migration for trade (until 1950s),
  and combined with seasonal movement.
• Early heavy out-migration from Nepal 18th-20th
  century (with high taxation and extreme
  exploitation of common peasants).
• Migration for army jobs .. still continuing to
  some extent.
• Rapid internal migration (hill to Tarai) 1960 to
  1980s, after malaria eradication.
• Foreign labour migration beyond India (after
  1990).

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Emigration (moving out of country Sources
CBS, NIDS, 2012)
Subtypes Volume (in 2011)
Seasonal (Nepal to India) Mainly from mid and far west, Nepal for farm work Nepali also go to India.
Temporary (Nepal to India) 0.8 million 1.5 million
Army Jobs (Nepal to India) 50,000 (approx)
Army Job (Nepal-British army) 3,000 (approx)
Temporary, Long distance, contract job (Beyond India, but mainly in Malaysia and Gulf) 1.9 million stock (about 360,000 yearly in recent times) women 10
Student migration (except India) 25,000 (approx..) in 2011
Refugees in Nepal Tibetan, Bhutanese, others
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Scale of foreign labour migration and remittance
is staggering in Nepal

• Almost half of Nepali households have at least
  one current or a recent returnee migrant members
  working abroad.
• Remittance constitutes one-fourth of household
  income.
• At least 1/3 of working age male population is
  abroad

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Volume of Migration is Large and Increasing
Migration to foreign countries (except India)
with official permission. (India estimated at
0.8 - 2 million DoFE, GoN, 2012)
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Gulf Sates and Malaysia are Main Countries for
Migration from Nepal (other than India) (Data
for 1993-2011 DoFE, 2012)
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There is a Direct Correlation Between Wealth
Status and Where a Person Goes for Work (Source
NIDS, 2012)
Wealth Status Where they go for work Type of work
Poor India (on a seasonal basis or temporary) laborers, hotel and restaurants, domestic help
Lower middle class India factory work and office work
Malaysia and Gulf States unskilled works
Upper middle class India (few) army or civil service
Malaysia and Gulf States (many) unskilled and semi-skilled works
Higher class Japan, Korea, North America, Europe, Australia Entry level wage work , professional work
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Official Remittances to Nepal US 5.2 billion
in 2011/12(Source MoF, Economic Survey, 2012,
NRB, Economic Bulletin, 2013)
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Remittance Contribution to Nepals Economy
(source MoF, 2012)
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Huge Contribution of remittance
(internalexternal) to poverty reduction
Description 1995-96 2003-04 2010-11
households receiving remittances 23.4 31.9 55.8
Average amount of remittances per recipient household (nominal Rs) 15,160 34,698 80,425
Share of remittances () From Nepal 44.7 23.5 19.7
From India 32.9 23.2 80.3
From other countries 22.4 35.4 80.3
Poverty rate ( people below poverty) 42 32 25
Source CBS, 2006, 2012 (NLSS I, II and II) Source CBS, 2006, 2012 (NLSS I, II and II) Source CBS, 2006, 2012 (NLSS I, II and II) Source CBS, 2006, 2012 (NLSS I, II and II)
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Total Remittances by Districts in 2009 (poor
regions participation is very low) Source
(world Bank 2009)
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Village study (Pokhara and its nearby villages)
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households having members in foreign countries
to work (except India) from Lachok-Rivan village
Ethnic groups 1990 1997 2007
Brahmin - (India seasonal - 15 ) 16.4 43.4
Chettri - (India mostly seasonal 25 ) 27.1 45.4
Dalit - (India mostly seasonal - 50 ) 28.7 66.4
Gurung 8 (UK army) 25 India army) 43.8 73.2
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Use of remittances

• Consumption - macro-economic situation
  balancing the national current account ..
  (dominant discourse in Nepal)
• NLSS III says only about 2 is used for capital
  formation. Other studies contradictions.
• Grass-roots studies show that use in education,
  health and buying assets are important.. (after
  paying loans).
• there are multiplier effects for employment and
  income generation (land rent opportunities wage
  opportunities).
• High investment on buying land, especially in
  urban areas and market centers.
• Remittances leading to internal migration for
  housing, children education and medical facility,
  and for businesses like shops
• Village to road side Village to market
  centers Village to urban areas

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Houses (old and new)
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Returning to Village
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Advertisement of remittance agencies in rural
areas
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Remittance Agencys Advertisement (bringing
happiness to parents)

• .

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Remittance Agencys Advertisement (bringing
happiness to migrants wives)
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Left Behind Families and Their Problems
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Impact of Migration on Natural Capital in Villages

• Increase
• Fallow land
• Tree cover
• - Wage rate of males
• Decline
• Livestock number
• Food production
• Land rents
• - Intake of nutritious food

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More Forest Cover Now
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Male Laborers are Scarce Wages for male have
Become High
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High Burden on Women
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More Workload and Responsibility on Women

• Feminization of farm work
• Feminization of social and collective works
• Shift in gender-roles
• More participation in market
• More Family problems
• Girls sharing mothers workload

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Migration and Rapidly Changing Communities

• Individualization of community works.
• Pressure to generate more income.
• Diverging interests and more conflicts.
• Changing caste relations.
• Male labour shortage.
• Male youth not interested in education.

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Extended Community?

• Multi-locational livelihood strategies.
• Village community reproduced in other spaces
  through diasporas (Japan, Gulf States, New York
  City).
• Migrants bringing in skills.
• Resource generation and skill transfer for
  schools, hospitals and other village development.

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Regulations and policies
Present migration related Acts/policies/regulations/procedure Other supportive policies
Foreign Employment Act 2007 The Interim Constitution 2007
Foreign Employment Rules 2008 Passports Act 1967
Foreign Employment Policy 2012 Nepal Citizenship Act 2006
Internal Working Directive of Department of Foreign Employment 2009 (2066 AD). Non-Resident Nepali Act 2008
Directives for Emigration for Women Domestic Help, 2012 Nepal Rastra Bank Remittance Rules 2010
Report of a Task-Force constituted to make recommendation to improve foreign labour migration 2010 National Micro-finance Policy 2064
EPS system Nepal Rastra Bank Provision Related to Providing Credit to Poor (Bipanna Barga) Executive Order 17
JITCO Directive 2009
Working Procedure to send Caregiver to Israel, 2011
Bilateral agreements and MoUs
Three Year Plan (2010-2013)
Immigration Act 1992 and Labor Act 1992 (guide immigration)

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Policy evolution/mainstreaming

• Before 1985 - only domestic employment generation
  was emphasized.
• 7th Plan (1985-1990) and 8th Plan (1992-1997)
  realization of importance of foreign employment.
• The ninth Plan (1997-2002) emphasized the need
  to take advantage of globalization process
  through foreign labour migration promotion of
  skill development and economic diplomacy.
• - Policy to send 200 workers for foreign
  employment from each electoral
• constituency, numbering 201 constituencies
  at that time,
• - To provide loan of Rs 100,000 to conflict
  affected and socially excluded groups
• so that they could take the opportunity for
  foreign employment.
• Both these policies did not continue.

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Political change 2006

• Foreign Employment Act (2007) and Foreign
  Employment Rules (2008)
• Current Interim Plan (2011-2013) separate chapter
  on foreign employment
• Foreign Employment Policy 2012
• To mobilize remittances for human development and
  in the manufacturing sector.
• Mainstreaming of foreign employment in local
  level projects through collaboration with local
  agencies, which will also be responsible for
  awareness raising on foreign employment.

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Policies to use social remittances

• Foreign Employment Policy 2012 and Interim Plan
  (2011-2013) give concern for use of social
  remittances.
• looking at migration as a means of brining in
  new skills and technology. Using the skills and
  experiences of returned migrants for the
  development of enterprises to develop country and
  reduce poverty.
• Lacks concrete programs.

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Migration policies and other policies

• Not much inter-linkage in related policies in
  migration and development/environment, which
  refers to migration but do not mainstream it.
• Interest in policies to use remittances as a
  means of poverty reduction (PRSPs -10th plan and
  in other periodic plans).
• Conversely, poverty reduction and women
  development policies do not deal with migration
  and remittances.
• The Three Year Plan (2011-2013) has clearly
  stated that it will encourage bank and financial
  institutions to provide soft loans to the needy
  people but not in action. Nepal Rastra Banks
  micro-credit policy on poor has provision for
  loan for migration.
• Reservation for 10 seats (social inclusion of
  women, Dalits and marginalized groups) in Foreign
  Employment Rules.

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Policy Gaps Mainstreaming Migration to
development

• There is a clear case for mainstreaming migration
  for development and for improving livelihoods.
• There has been gradual evolution in migration
  policies which aim basically at migration
  safety, welfare and using remittances for
  productive use.
• There is recognition/discussion in different
  policies eg poverty reduction, agricultural
  development, climate change adaptation, social
  development (eg women development, children
  development, social welfare) micro-finance on
  migration taking places and remittances coming in
  and their consequences on society and economy.
• But, they are short of mainstreaming migration in
  their policies and programs.

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Policy gaps.

• Policy on information system, particularly
  information sharing through digital means among
  different related agencies, is lacking leading to
  duplications and hassles for workers.
• Vertical thinking/action in sectoral ministries.
• Decentralization policies do not deal with
  foreign employment and remittances at local
  level.
• Policy to use remittances for encouraging
  productive investment is lacking.
• Simple things like having a migration resource
  center in CDO office while getting passport and
  having a facility to watch at video about
  migration could be beneficial.

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• Thank You