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Migrant workers burdened by high interest rate

Year of Publication: 8 July 2012 | The Kathmandu Post

Publication Type: NEWS

Published by: CESLAM

Migrant workers are often compelled to pay interest as high as 35 percent to creditors, claims a research carried out in Mahottari district by Third Alliance, a network of Tarai-based human rights defenders. 

The report claims many workers fail to pay back debts despite many years of hard work in foreign lands. “Almost half of their earning goes towards paying back loans. Having spent the other half on food, clothes, health and education for family members, their dream of buying land and constructing a house remains unfulfilled, forcing workers to go abroad again and again,” reads the report. The recently released report also shows that Mahottari’s economy is greatly dependent on remittance from migrant workers. The district 

alone receives around Rs 11 million remittance and around 20 migrant workers fly abroad for work every day.

The research conducted in five VDCs in the district shows tangible change in basic necessities and the desire of people. Most of the amount received as remittance is being used to purchase electronic devices like televisions, mobile phones and computers. 

The report also claims that wives of migrant workers are exposed to violence, harassment and mental torture, mainly over financial issues. Hemmed in by their desires and traditional values, these women are often vulnerable to various threats. 

Among other findings, the study also claims that traditional joint families in Madhesi society are on the verge of disintegration. Tussle between parents and spouses to own remittance is leading to fragmentation and serious conflict in the joint family structure. The study concludes that remittance alone cannot contribute to long-term sustainable development of the Madhesi society. 

Published on: July 2012 | The Kathmandu Post

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