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KATHMANDU, APRIL 10
Nepal is a nation afflicted by low income, poverty, rising unemployment and unsound dependence on agriculture. According to the Economic Survey of 2077/78, about 66 percent of the population rely on agriculture, but that population is invisibly quasi-unemployed or seasonal unemployed.
If there is poverty and unemployment on one hand, there are employment opportunities galore in the world labour market on the other, offering an alluring Rs 1,500 per day and around Rs 500,000 per annum.
Remittance in the context of Nepal adds to a staggering contribution to the gross domestic product (GDP).
Increase in remittances has contributed to the reduction of absolute poverty over the decades.
It has also raised the living standards of the people and helped in accumulation of wealth and foreign exchange reserves, resolving the problem of unemployment while at the same time expanding business and increasing government revenue. Given the huge influx of remittances, many problems, complexities and challenges have plunged to an extreme low in Nepali society.
As Nepalis enter the external labour market, imports of goods are increasing and exports are declining, resulting in huge trade deficits year after year. Remittances are used to import luxury goods or to invest in unproductive sectors, such as arable land plots. This has resulted in uncontrolled urbanisation, problems in the distribution of services, increased internal migration and higher consumption costs. In addition, social isolation, mental stress and sufferings are no less challenging. Even more painful is the tragic scenario of our migrant compatriots who end up in the statistics of 3 deaths per day on average.
Therefore, remittance income per se cannot be a permanent solution to the sluggish economic growth of the nation.
And due to some of its longterm effects, it is advisable to transform the export-oriented workforce into a commodity-export-oriented economy.
For this, it is necessary to make maximum use of the four pillars of development, that is, land, manpower, water and technology as per one's ability.
Arrangement needs to be made for scientific study and research of land for agricultural purposes, establishment of cottage industries in the rural areas, incentive programmes for returnees from abroad and training opportunities to create an environment for them to use their skills at home. If a strategy is developed to harness the outsourced labour with water and technology, the commodity can be transformed from an import-oriented economy to an export-oriented economy, with a strong foundation for the domestic economy. It's high time to put our best foot forward to ultimately justify remittances.
A version of this article appears in the print on April 11, 2022, of The Himalayan Times.
