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Foreign Employment and its Impact on Nepalese Economy

Foreign Employment and its Impact on Nepalese Economy. Purushottam Ojha Officiating Secretary Ministry of Labor and Transport Management. Some Demographics Figures.

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Foreign Employment and its Impact on Nepalese Economy

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  1. Foreign Employment and its Impact on Nepalese Economy Purushottam OjhaOfficiating SecretaryMinistry of Labor and Transport Management

  2. Some Demographics Figures • More than 1 billion young people aged between 15 and 24 in the world, comprises of 18% of the global population (85% youth live in the developing world) • Approximately a quarter (238 million) of the worlds youth population was living in extreme poverty • In 2003, about 618 million young people were either working or looking for work, which represents nearly 55 percent of the total youth population. • In 2015, an estimated 660 million young people will be either working or looking for work – an increase of 7.5 percent over the number of young people in the labor force in2003 • In Nepal, the number of young people (between the age group of 15 to 39) comprises of 39 % or 90,94,283 numbers (census of 2001)

  3. History of Job Migration • Ancient Period (Lichhabi Period) • British Gurkha Period (1816) • Modern Period (1947 onwards) • Introduction of Approval System for Foreign Employment (1985 onward)

  4. Number of Migrant Workers and Remittances * Dept of Labor and Employment Promotion / ** Source: NRB / *** Eleven Month Figure

  5. Foreign Employment and Nepalese Economy • poorest households income from remittance has prevented loss of existing assets. • slightly better off households • improvement in supplies of food, education and access to medical treatment • more better off households • remittances have been used to purchase lands in the urban areas, to start small business and to provide quality education to the family members …CONTD

  6. Foreign Employment and Nepalese Economy (…CONTD) • NLSS-1995/96 shows the head count poverty rate at 42% while the NLSS-2003/04 shows the figure of 31% • Benefits • returnees are the trained and skilled manpower and able to contribute to the country • a more aware and disciplined human resources to the service of society • opportunity for cross cultural assimilation. • Re-ploughing of earnings of the migrant workers would help generate the employment.

  7. Government Policy • National Labor Policy 2056 • Foreign Employment Act 2042 • Foreign Employment Regulation 2056 • National Plan of Action on Decent Work (NPADW) • Provisions of Tenth Plan • The 21 point program of HMGN

  8. Private-Public Cooperation • Pre-employment Stage • Pre-departure Stage • At Work • Reintegration Stage

  9. Issues and Challenges • High dispatch cost • Predominance of unskilled workers in the labor market • Sensitivity of sending women workers • Informal or illegal migration • Lack of monitoring of the situation of the migrant workers • Reintegration of the returnee workers

  10. The Way Forward • Develop and implement HRD program • Bring out a comprehensive Labor Migration Policy • Develop proper institutional set up (board) • Pre-employment interventions • Develop transparent selection process/ minimize the role of middlemen • Liberalize the foreign employment regimes through improvement in relevant laws • Provide protection at work and carry out periodic monitoring • Welfare fund and family support program • Focus on capacity building

  11. THANK YOU

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