FOREIGN MIGRATION AND REMITTANCE

What we know? and What we still do not know?
Jagannath Adhikari Ganesh Gurung NEPAL INSTITUTE OF DEVELOPMENT STUDIES
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WHAT WE KNOW and STILL DO NOT KNOW?
• Emigration (Volume, Gender composition, Skill composition, Method of emigration, Financing of Migration, Geographical distribution of origin of migrants) • Remittances (Volume, Sources by destination country, Uses, Formal v/s informal, Cost of remitting) • Impact: (National, Community, Households, Migrants, Family members - girls, boys, women, social cost, capital flight of remittance/related to migration)
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WHAT WE KNOW
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Emigration
• Volume: - Official Permission for Migration (DoFE website and records – by gender) – No record for India… - Official permission – by gender, by destination countries. - Institutional source v/s individual source

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Migration – Magnitude and Nature Foreign Labor Migration except India

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Foreign labor migration (except India)

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Important countries (migrant labourers from 1993/94-2009/2010)
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In Total Malaysia Qatar Saudi Arab UAE Kuwait Bahrain Oman Lebenan Isreal Hong Kong
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569667 481748 341325 214515 24457 22564 11478 9730 6414 4379

Male Malaysia Qatar Saudi Arab UAE Bahrain Kuwait Oman Hong Kong Afganistan Isreal

Female 569169 Lebenan 480893 Kuwait 340972 211575 21466 21005 10606 4321 4265 3740 UAE Isreal Bahrain Oman Qatar Malaysia Macau Saudi Arab

9389 3452 2940 2674 1098 872 855 498 400 353
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More women go through individual system (and face problem)

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Foreign Labor Migration Except India

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STOCK OF HOW MIGRANTS IN DESTINATION COUNTRIES
Some studies and surveys: NIDS and World Bank (2009) – 2.02 million CBS 2001 = 7,62,000 DOFE = Two million plus Census 2011 = Will be the answer

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Some studies
• 2.02 million working abroad in 2009 (Nepal Migration Survey, 2009) • 0.88 million (43.74 %) were working in India and the rest (1.13 million or 56.26 %) in other countries; • 48 % of migrants originate from Tarai, 45 % from the Hills and 7 % from the Mountain. • About 75 % labour migrants are unskilled and 25 % are semi-skilled (DoFE but how this was calculated??) • Salary scale related to educational qualification (Qatar – Tristle 2010).
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Gender composition of migrants
• 8.36 % were female and 91.64 % are male; some other studies estimate 10 %.

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Method of Emigration
• Official process or the formal migration • Legal provisions in the country • Official cost of migration for some of the destination countries. • RAs registration and their renewal of licenses. • Orientation institutes, insurance institutes, health test agencies (specified by government)

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Financing for Migration
• A few studies – remittance being used, loans and interest.

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Remittances
• Volume – Officially transmitted remittances (through banks and remittance transfer agencies)

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Impact and welfare of migrants
• Impact on poverty (reduction in poverty rate from 42 % to 31 %, and to 25 % now). In FY 2009, remittances was Rs 218 billion , and in 2010, it was Rs 242 billion • Contribution to household economy; sources of remittance – internal, India and others, households getting remittances (NIDS and World Bank, NLSS surveys). • Impact on economic status (NIDS and World Bank) • Some studies on uses of remittances (ibid)
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WHAT WE STILL DO NOT KNOW

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Emigration
Volume: - How many actually went. - How many are still there. - How many returned (no record of returnees). - Informal or irregular migrants (only estimates).

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MIGRATION TO INDIA (STILL A HUGE BLACK HOLE)
CBS 2001 = 5,89,050 (77 percent of the total absentee)

Nepali Associations in India = 6 million Other estimates Mixed up in counting Nepali migrant workers and Nepali citizens
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Method of Emigration
• • • • • • • • Agents and subagents involved Informal process of migration Cost of migration (actual amount paid) Foreign commission agents involved. Quality of services of the service providers. Time actually taken for the process. Sources of finance for the migration Scale of corruption
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Women migration
• Volume – controversy in official record and actual number of migrants. • Via Nepal or India • Migration v/s trafficking in India • Nature and extent of violence – especially on domestic help. • Frequent changes in policies and how far women migrants are aware of policies and changes.
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Remittances
• Remittance coming from informal sources like Hundi (still 35 % of remittance??) • Increasing trend in official remittance – actually increased or due to increase in the transfer of remittance by rapidly expanding formal agencies?? • Remittance from India – hand carry and other informal methods , goods.
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• Reverse flow of remittance for education (especially in India and other countries) • Reverse flow of remittances due to permanent settlement of Nepali migrants eg in UK or other countries.

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Impact and welfare of migrants
• Impact on farming and other local enterprises due to emigration (wage labor, shortage of labor, interrelationships in the village). • Multiplier positive effect of remittances (eg investment on industries …) • Social cost on left behind members especially of women and elderly. • Family problems. • Children’s education (investment is done, but the result is not known). • Psycho-social problems of the migrants as well as left behind. • Diasporas and their contribution to national economy and 6/28/2011 24 society.

Situation of working conditions
• No studies in destinations • High death rate reported (2.5 dead bodies in 2008 per day) • Reason Unknown. • Their salary range and savings. • The extent of cheating and individuals affected (complaints at DoFE does not tell reality).
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Returnee Migrants
• No knowledge of their skills and their use. • Problems in reintegration.

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Conclusion
• Still many gaps in our understanding. • Rapidly changing – but no mechanism to record the changes. • Difficulty to analyze the cost and benefit of migration though it will continue.

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