1. IFAD Nepal
COSOP

2. Assessment of issues and options for investing in productive use of migration and remittance in Nepal Background study for IFAD COSOP design January – May 2013

3. Migration streams in Nepal
Six migration streams can be identified, which are associated with economic classes in Nepalese society:
Group A: Migrants to United States of America/United Kingdom/Australia
Group B: Migrants to Europe/Japan/Korea/Israel
Group C: Migrants to Gulf Countries/Malaysia
Group D: Migrants to India
Group E: Internal migrants
Group F: Non-migrants
There is a lack of knowledge and policy support for Group D (India) and Group E (Internal).

4. Contribution of remittance to Nepalese GDP (Billion NPR)
Source: Ministry of Finance 2012, p 87; Nepal Rastra Bank 2012, p 94

5. Distribution of total remittances by district
In , the Nepal received remittance worth USD 3.5 billion from countries other than India (Ministry of Finance 2012, p 87). In , 55.8 per cent of households in Nepal received remittance (CBS 2012c, p 80).
Source: World Bank 2011b, p42

6. Contribution of various non-farm economic sectors to GDP
Source: Compiled using data from Ministry of Finance 2012, p 87 and Nepal Rastra Bank 2012, p 84

7. Remittance Transfer Cost as Percentage of Total Cost
Country
MTO*
Bank
Credit Card
Post
Bangladesh
3.30
5.70 -
India
6.20
13.20
15.10
12.90
Nepal
4.90
4.80
Pakistan
4.50
9.10
15.90
4.00
Sri Lanka
5.90
Ganesh-ji, kindly, add a diagram or table.
*MTO: Money Transfer Operators
Source: Manuel Orozco, The Market for Money Transfers in Asia: Scorecard Report, 2013

8. Present use of Remittance
Similar pattern of remittance use had been recorded by other studies: Bhadra (2007), WFP and NDRI (2008), Adhikari and Gurung (2009), NLSS III (2011), and NIDS (2012).
Source: NEPAL LIVING STANDARDS SURVEY 2010/11, CBS, Page 48

9. Contribution of remittances to total household income in 2010
Migrant
Internal remittances
Foreign remittances
Internal and foreign remittances
Annual remittance (NPR)
% of total annual household income
Female
16,919
4.35
128,087
32.94
145,006
37.29
Male
2,054
0.53
109,918
28.27
111,972
28.80
Total
18,973
4.88
238,005
61.21
256,978
66.09
This pattern of remittance use had been recorded by other studies:
Source: NIDS 2012, p 36

10. Social remittance from India
“Long time back, I worked as a contract farmer in the Punjab province of India. Now, I do farming in my own village. But vegetable and crop farming in my small piece of land is not adequate. I had learnt many farming techniques while in Punjab. I use this knowledge to grow sunflowers in a land I have got on lease. I make a good profit through mixed farming.”
Ram Dev Chaudhary

11. Social remittance from Gulf countries
A RETURNEE FROM GULF

12. Social remittance from South Korea
LARGEST PIGLET FARM IN NEPAL
CHHYAM THAPA
A RETURNEE FROM KOREA

13. Recommendations Skills development for rural youth
Counseling services for returnees and their families
Training for enterprise development
Access to land, agricultural value chain development, and support services for returnees
Connecting with Nepalese Diaspora
Market feasibility for small enterprises
Access to credit and formal financial institutions
Banking ‘unbanked’ remittance
Research to inform policy makers

14. Project Design
New IFAD funded project: “Rural Micro-enterprises and remittances”
USD 32 million initial. 4 components :
Component 1 - Enterprise promotion and job development
Component 2 – Services for Employment
Component 3 – Financial Services
Component 4 – Support Infrastructure
Study June Design Jan 2014
Community of practice
Quantitative approach.

15. Videos: http://www.youtube.com/watch?v=iHl-O02_O2U
More available on IFAD ASIA and IFAD NEPAL TV:
Docs:
Videos:
THANK YOU