What are the reasons for the rapid growth of remittance income in Nepal?​

Explanation:

Nepal is one of the least developed but high remittances recipient countries in the world. Nepal received remittance from US$ 8.1 billion in 2016 and it is ranked 23 among the remittance receiving countries in the world. Remittance income is one of the major sources of capital formation in the context of Nepal. It is directly related with the labour migration in a country which in return enhances foreign employment. Remittances have become a major contributing factor to increasing household income as well as country's GDP. About 30 percent of Nepal's GDP comes in the form of remittance money which is sent home by Nepalese working abroad and it helps to reduce country's poverty rate. Poverty reduction took place in Nepal from 42 percent (1995/96) to 25.2 percent (2010/11). Nepal's remittance recipients reached 31.5 percent GDP in 2015. The total amount of remittance in the country is 259 billion and among which 20 percent is internal sources. 11 percent from India and 69 percent from Gulf countries. Remittance received by the householdsis mainly used for daily consumption (79 percent) and remaining other purposes. Moreover, Nepal's economical statusmostly depends on remittance receivedwhich is therefore migration driven economy.

Keywords: Remittance, Migration, Labour, Development, Income and Employment

Introduction

Remittance is an important factor of economic development in Nepal. Remittance has emerged as a backbone of Nepal's economy in the last two decades. Nepal is one of the poor and least developed countries in the world. Agriculture is the main occupation of the economy, providing a livelihood for almost two thirds of the population of the country and its contribution for only one third of GDP (Economic Survey, 2073/74). Nepal is heavily dependent on remittances which values to 30 percent of GDP (Economic Survey, 2073/74). Also, Nepal is ranked number one remittance recipient country in terms of GDP in 2009 which shows Nepalese economy is highly dependent on remittance. As per the size of USS (billions), India is the top remittance recipient country where as Nepal is in the fifth position in 2010 (Table 1).

*Mr. Sah is an Associate Professor of Economics, Patan Multiple Campus. (TU), Patan Dhoka.

* Migration process in the home country and doesn't end in destination countries. Labourers have complained of getting cheated by agents.

Reluctant to work without work permit.

No recreational facilities. Exploitation and deprivation from basic facilities like medical servicesand

insurances.

→ Exploitations begin even before their departure by recruitment agencies and their sub

agents called "dalals".

Losing educated young people into workers everyday.

* Family relations, remittances have effect on the spouse and other family members of

the migrant. * In few cases, women workers are more vulnerable to exploitation by employers. Abuse and sexual harassment of many women migrants working as domestic

helpers.