Remittance impact

We for a long time now have highlighted the positive aspects of remittance inflows in our country and the role of remittance in economic development. But hardly have we given some thoughts about how remittance is also having some negative impacts.

Remittance no doubt has helped keep our country’s economy afloat, with money sent from abroad contributing about 32 per cent in the country’s gross domestic product. Remittance has also helped lift many in rural parts of the country out of poverty. Remittance has strengthened Nepali people’s purchasing power as well.

One may hence question: How is then remittance having a negative social impact?

We all are aware of the fact that majority of youths who leave the country – mostly for the Gulf nations and Malaysia – in search of jobs are from rural parts of Nepal. Majority of them are from the group of citizens who are below poverty line, uneducated and of course unemployed. Estimates suggest about 1,500 youths leave Nepal, where unemployment rate hovers around 40 per cent, in search of jobs. This has led to rapid migration of men from the country.  In recent times we have read reports of women performing the final rites of the dead, for there were no men, who traditionally perform such rituals, in villages. I don’t mean to advocate men’s role in such activities. I am just trying to give a picture how villages are sans men in recent years.

Similarly, rapid migration has also spiked divorce rates in many parts. With husbands away for a long period of time, reports of cases of divorce too have gone up. Similarly, birth rate in villages too has been reported to have gone down. Then there are cases of STDs which are transmitted to wives by migrant husbands.  Another major social impact is human trafficking. Many young girls and women are lured into good job and life outside the country, but in reality they end up in the clutches of human traffickers.

So it’s high time we started discussing these issues as well when we talk about the benefits of remittance inflows. The best way to retain the youths within the country is creating jobs. Unless we generate employment, our youths will keep on flying abroad in search of green pastures. Now the country has embarked on a new path with federalism adopted and governments at all levels in place. As we talk about development and prosperity, we must start thinking about creating jobs for our youths within the country.