Nepal case study

Patterns of emigration

Common destinations:

• India 540,000

• Saudi Arabia 460,000

• Malaysia 210,000

Pattern = proximity, places need labour e.g. oil production

• Mainly young male workers

• Internal migration from uphill, rural areas to downhill, urban areas

Causes of emigration

Push factors:

• social - unemployment rate of 40%, lack of jobs

• Economic - lack of jobs

• Environmental - 2015 earthquake

• Political - armed conflict of 1996 -2006

Pull factors:

• social - more job opportunities

• Economic - better wages

• Environmental - proximity to places such as India/Saudi Arabia

• Political - Govt. policy, no visas to enter India

Opportunities of migration

Social:

• ILDS projects help women gain skills while protecting them when they migrate

• Remittances reduce poverty by 20%

• Also increased Nepal’s HDI from 0.29 to 0.54

• Migrants have improved literacy and educational statuses

Economic:

• remittances contribute to $6 billion a year - 1/3 of Nepals overall GDP

• Remittances are more reliable than FDI

Environmental:

• Forested areas increased by 2.5% in 2014

• This reduces landslides, gullies, and soil erosion

Political:

• 2008-2017, 3.5 million work permits were issued

• Govt. granted permission to work in 109 countries

• No visas needed to go to India

• Govt. Promotes emigration, so they try to place limits on recruitment agencies’ fees

Challenges of migration

Social:

• 750 die abroad every year - 2 people daily

• Recruitment agencies are corrupt, 70% said they wouldn’t use the same agency

• 81% engage in vulnerable employment

• 10% of the pop. Now work abroad, 2000 leave daily

• - results in an ageing population

• - gender ratio 6:10 , has put social pressure on women

Economic:

• 2012, GDP per capital was $540

• Only 52% of remittances use formal transfer patterns

• Increased trade deficit - dependent on remittances

• Costs $700-1500 to migrate internally

Environmental:

• internal migration to urban areas increases flooding

• 17-36% of farms have been abandoned from lack of workers

• Abandoned land increases invasive species and reduces soil fertility

Political:

• Corruption, many politicians are in collusion with employment agencies

• Govt. Haven’t been using remittances in productive areas

Interdependence with India

• pipeline projects - first cross-country oil pipeline in South Asia

• 2 - way remittance flow

• 46% of FDI comes from India, almost 100% of petroleum is from India

• India-Nepal treaty of friendship 1950 → both work together to minimize human trafficking. India provides 3,000 annual scholarships, supports developmental projects