While industrially developed countries share capital and technology in production or construction with other countries, developing or Least Developed Countries (LDCs) offer laborers who ultimately bring foreign currency to their home land upon return from the work. 

 

After the decline in export of garments, carpet and pashmina in recent years, remittance remains a major source of foreign currency earnings in Nepal. It is, however, a matter of grave concern if a country like Nepal can always remain as a remittance-based economy. As countries like Malaysia and Gulf States are curtailing the number of foreign workers in the wake of financial crisis and recent political turmoil, vulnerability of countries who are over dependent on remittance alone is also becoming crystal clear. 

 

While the exact number of Nepalis working abroad is difficult to determine, international organizations like the World Bank and UNDP suggest that about three million Nepali migrant workers are shedding their sweat in foreign lands and in return adding to the homeland´s stock of foreign currency reserve. Though Nepalis are working in many countries around the world, Malaysia, Qatar, Saudi Arabia, the United Arab Emirates, Oman and Bahrain, among others, are the main destinations for Nepali migrant workers.

 

The outflow of Nepali workers to foreign land is attributed mainly to the lack of employment opportunities inside the county. The helplessness of many Nepali workers to go abroad is well manifested from the fact that the illegal flow of Nepali women to the Gulf countries to work there as domestic maid has not been mitigated even though the Government of Nepal (GoN) has prohibited them to fly. Though the GoN has permitted 107 countries for foreign employment to Nepali workers, Gulf countries do not fall under this category for women workers probably owing to cultural, social and legal taboos in those countries. 

 

DEVELOPMENT DIMENSION

 

The UNDP and World Bank in their Human Development Report 2010 and Migration and Remittance Factbook 2011 respectively have revealed some interesting and eye opening facts. The World Bank enlists Nepal as one of the top five countries whose 23 percent of GDP comes from remittance. 

 

One of the remarkable successes in human development index of Nepal over the last 40 years is attributed to remittance as revealed by the UNDP. Nepal is one of the fastest movers in the human development index ranking 3rd among 135 countries studied since 1970 onwards. Thus, there appears to be a symbiotic inter-relationship between remittance and human development index in Nepal further implying that remittance is a major contributor to the human development of this Himalayan nation.

 

Nepali migrant workers who work in foreign land leaving their nearest and dearest ones for long time have a direct role in minimizing deficit in the balance of payment. That how these contributors in making sizable addition to convertible foreign currency are treated back home in Nepal by the Government of Nepal needs some attention and consideration. They have to be given a place of honor. In this particular case, Nepal Rastra Bank (NRB), as a central bank of the country, should play a promotional and coordinating role in channelizing flow of remittance through banks only as it has been reported by the World Bank that some 50 percent of the remittance in Nepal comes through non-banking channels . NRB, hence, should take initiative to attract remittance by introducing incentive measures and work as a promoter, rather than just being a controller. 

 

RED CARPET TO REMITTERS

 

Similarly GoN should have provision to honor such remitters (Nepali workers) by facilitating them right from their departure till their arrival at the Nepal airport. A privileged gate or counter should be set up at the Tribhuvan International Airport to facilitate travel of Nepali migrant workers leaving abroad. Similarly, there should be special counter with red carpet to welcome all those who are returning home after working abroad. Likewise the remitters as well as remittance companies should be honored from the centre to the local as they are not only bread earners for their families, but also important contributors to national coffers.

As countries like Malaysia and Gulf States are curtailing the number of foreign workers in the wake of financial crisis and recent political turmoil, vulnerability of countries who are over dependent on remittance alone is also becoming crystal clear.

 

Similarly, integrated efforts should be made with a view to mobilize foreign currency brought in by the migrant workers from abroad in a productive manner. In partnership with the private sector, the GoN should run advisory classes to the returnees in order to encourage them to invest their money in agro-based industries in suitable locations depending on topography and ecology of the country. The government should also identify viable projects in hydropower, infrastructure development, tourism and various cooperative schemes in order to involve migrant workers as shareholders through remittance companies based in Nepal and abroad. 

 

YEAR OF REMITTANCE 

 

We are observing Nepal Tourism Year 2011 and had observed Visit Nepal Year 1998. Nepal should declare fiscal year 2069/70 or English calendar year 2012/2013 as the Nepal Year of Remittance in order to highlight the contribution of remittance to the Nepali economy. It will also afford an opportunity to discuss constraints being faced by this sector and measures needed to address them in partnership with the private sector.

The writer is the Vice Chairman of the Remitters Association of Nepal [email protected]