1 Labor Migration Issues and Challenges Dinesh Raj Sharma Founder President and Management Consultant, NAHUDA, Ka 2/6 Jhamshikhel, Lalitpur Sub Metro – 2, Lalitpur, Nepal

Nepal in brief Total population26.44 million Annual Population growth 2.25 per cent Average Life expectancy Literacy rate Male 63.3 years65.5 per cent Female 64.1 years42.8 per cent Average63.7 years54.1 per cent Per Capita GDP (US $)383 (2007) Refugee (Bhutanese)108,182(2007) Labor migrants cumulative (estimated)2.2 Million (2007) Labor migration with government permission Male 433,276 migrants 99.73% Female 1,162 migrants 00.27%

Comparative income level

Labor Migration World 191 million, 8.5%, Nepal ,11.9 % growth (2006 to 2007) Agriculture migratory trend used to be a culture Labor migration on off- season in the reason used to be a common practice 1816 AD British-India and Nepal treaty opened gate for army recruitment for Nepali youth – male In World War I and II youth force recruited from Hills, send to east and west corner of South Asian countries

Indian and Overseas Market Indian market is the nearest and traditional labor market of the low skilled labor Indian market is huge employer and estimated 2.5 million are working. Both the country send labor in each other market, no specific recording system is there, is a free market in both country. Around 50 percent of the labor migrants are still going in the foreign labor market adapting risky, unauthorized via unorganized sector.

Labor migration except Indian Market

Major Destinations Malaysia419, % Qatar348, % Saudi Arabia228, % United Arab Emirates 140, % Other countries 56, % Total 1,193, % Government, recently, restricted women to migrate to Saudi Arabia and Malaysia on security ground. There are no labor agreement with the Major receiving countries These figures are from government permission system.

Issues Labor trapped in foreign land on various grounds (detained/deported/jailed) Labor exported to un-agreed / undisclosed destiny (Iraq) Security, safety, and decent living Women are vulnerable and suffering further in both front No skill training and orientation on socio cultural aspect of the going country

Issues Remittance costly, and unsecured Exploitation, non-payment and prison like situation in some of the work places Government is able to make record of 50 % migrant labor only No labor agreement/ Memorandum of understanding Fifty percent Migrants under no protection system and are suffering These issues are challenges to be addressed to make governance better.

Benefits Remittance to individual and in the country Better living standard, support to family, educating children, improved health and better housing Exposure and new skills transfer (some) Unemployed youth having options for employment Generating foreign exchange reserve Export of unemployed youth help local peace and security prospects Better understanding and cultural exchanges

Wish you Happy Festive Seasons and New Year 2009