Assignment IV

Please explain about the possible impact of foreign employment in

Submitted to:

Mr. Ajay Shrestha

Business Environment Analysis

Submitted by:
Srijana Basnet
MBA 6TH Trimester

Jan, 23rd 2023

Qatar, Saudi Arabia, United Arab of Emirates, Oman, Bahrain, Israel, Japan, and South Korea
are the most preferred job or employment destination for Nepalese. It is not Nepalese desire to
go golf counties for the employment but it’s their compulsion that made them to go golf
countries. Foreign employment has become culture for many remote villages of country.
Similarly, the number of women labor women migrants is also increasing.

America, Canada, European Countries, UK and other developed countries are the destination
where brilliant and highly educated Nepalese also migrate for employment for social
prestige and to get highly paid profession or job

We can consider unemployment as the biggest problem of Nepal. Moreover, the issue is known
that “Why is the Nepal government not properly utilizing the skills of its citizens for the
nation growth?” The energetic youths are utilizing their skill for foreign country’s prosperity
whereas Nepal faces a huge scarcity of labor workers. Some of the reasons behind the people of
Nepal going for foreign employment are as follows:

 Existing poverty
 Lack of job opportunities provided by Nepal Government
 Deteriorating agricultural productivity
 Due to economic problems at home
 The influence of friends, relatives and well-wishers
 Political instability at home
 Flexibility in the foreign manpower rules of Nepal and honest relationship with the globe.
 Prospect of higher-paying jobs in the destination country.
The possible impact of foreign employment in the economic are as follows:

1. Country receives remittance which is the second largest source of income in Nepal
Remittances have played a defining role in the livelihoods of many Nepalese people and
unceasing flow of remittance sent home by migrant workers has become a lifeline for the
country's economy by relaxing the foreign exchange constraints and strengthening the
balance of payments. A small decline in remittances can severely affect the nation’s
economic health.
2. Nepalese economy is gradually transforming into consumption oriented economy
Remittance contributes greatly to increase household income and raising the standard of
living. Nepalese economy is gradually transforming into consumption oriented economy
due to remittance, Proportion of remittance as compared with GDP is more compared
with the percentage increase in rate of inflation. This implies that remittances increase
merchandise import and deteriorates trade balance.
3. Migrant workers can learn skills and knowledge which can be beneficial for
development of Nation.
As a special group, returnees have contributed to the nation’s development especially in
agriculture, education, science and health. Migrant workers can learn skills and
knowledge which can be beneficial for development of Nation. We have examples of
many returnees who have used their skill and have created employment in country. They
have started numerous small industries, Farms, business and enterprises and contributed
directly to the economic development of the country.
4. One of the main concerns is that the remittance is being used as consumption
expenditure and not as productive investment.
Directing remittances to productive investments is a challenge for the Nepal government.
Families of migrant workers aren’t encouraged and trained so that they are able to
undertake small businesses of their own. It is often stressed that a higher proportion of
remittances is spent on food, education, and healthcare and some spent by family
members back here in Nepal is on consumption of luxury goods not in productive sector.
 5. It has reduced unemployment rates in short
Due to lack of job opportunities provided by Nepal Government, population is increasing
rapidly, our education system is defective, lack of technical based education and all wants
to rush towards cities, people are unemployed in Nepal. Instead of doing nothing in
Nepal, at least people are solving their economic problem at home.
6. Lead to brain drain in the labor
Maximum qualified and educated person are migrating from Nepal to USA, Australia,
Canada, UK, South Korea and many other country. This trend is considered a problem of
Nepal, because the most highly skilled and competent individuals leave the country, and
contribute their expertise to the economy of other countries.
Which can be considered that the loss of the academic and technological labor force
which negatively impact the development of country and improving the economy of
Nepal. Our own economy has been suffering from the shortage of skill and even
unskilled manpower.

Possible impacts of foreign employment in the socio-cultural environments of Nepal are as

Remittance has not only had an economic impact. The money sent home by migrant workers has
led to social impacts too

1. Foreign employment has broken family ties and shaken the values of Nepali
culture
Children lack adult guidance, the elderly do not have the support of their sons and
daughters and spouses are forced to live without their life partners. This has broken
family ties and shaken the values of Nepali culture.
2. High divorce rates, higher disruptions
In Nepal, here is a tendency for men to come back to get married and to go abroad in
a few days after getting married. In this scenario, foreign employment has caused
failure of marriages, increased divorce rates and cases of frauds by a trusted family
member. An extramarital affair is increasing due to the highest exercise of freedom.
That is bringing disunity in the family
3. Children are also at risk
Foreign employment has not only brought family issues, but it is also having a
negative impact on children of that family. At an early age, children are being
deprived of guardianship. As soon as one of the parents goes abroad, the child is kept
in the hostel, which is also affecting their mental health. Children are exposed to
violence; there are chances they will fall into bad company because they don’t get
adequate care.
4. Female empowerment.
Another major positive social change has been in terms of female empowerment.
With male members of the family having gone abroad for employment, female
members have become the decision makers. The inflow of remittance has also
enabled a number of them to start their own businesses.
5. Steady increase in school enrolment rates
Remittances are mostly spent on day-to-day essentials such as food, clothing and
shelter and education. Remittances help to pay for school and college fees, as well as
books and other necessary educational materials. They are a vital source of income
for educating children in poorer countries, and can be viewed as an informal
educational foreign aid. Remittances have the potential to raise the level of family
income sufficiently to enable children to enroll in school or help those who are
already enrolled continue with their education.
6. Access to various means of communication has also increased
People working who come from foreign employment bring smartphones with them to
gift their family, friends and relative. One of the main reasons of mobile phone and
laptop penetration in Nepal is due to the gift sent or bring by people working abroad.
7. Upliftment of living standard
Remittance has helped to uplift poverty in the remotest and most inaccessible parts of
Nepal. Remittances allow them to buy basic necessities such as food and clothing.
Many families use the remittances to invest and better their lives. They use them to
build a new house or to expand their business or start a new one.
 Some sectors that can benefit from it are as follows:

 Agriculture sector can get benefit from foreign employment. Nepal can capitalize on
agriculture sector through returnees acquired skills and knowledge.
 Industrial sector can get benefit from foreign employment. If government can
convince foreign employees and their families not to spend large proportion of
remittance on consumption rather in saving and investment, such remittances can be
used in entrepreneurship and small business development.

Conclusion

Despite of so many effects, Government hasn’t yet been able to come up with ways to decrease
the rate of unemployment. With rising unemployment, the rate of labor migration is increasing
every year.

Nobody wants to work in foreign country in vulnerable conditions without security and
protection but they are forced to do so. Government should focus on job creation rather than
being happy for the remittance generation. The country needs to attract workers back with proper
financing policy and job opportunities. Secondly, reformations should be done in agriculture and
manufacturing industries to make the country self-reliant. Tourism is another sector that country
needs to work on. Development should be focused not only in cities but in remote areas as well
so that the jobs can be created at local level as well. Only with these steps we can live our dream
of a prosperous Nation and happy Nepali and can give a good future to coming generation.
Reference

https://asiafoundation.org/2018/06/06/nepalese-labor-migration-a-status-report/

https://wapnepal.com.np/foreign-employment/

https://samriddhi.org/news-and-updates/using-remittance-for-the-better-of-the-nepali-economy/

https://nepaleconomicforum.org/opportunities-and-challenges-of-migration-for-nepal/