Studies shows that each year around 400,000 new labor force enters into the Nepali labor market. Out of this figure, officially more than half opt for foreign employment. If we add undocumented workers in this figure, then this number will be far greater. In terms of remittance share in the Gross Domestic Product (GDP), Nepal ranks among the top 10 labor-sending countries of the world. However, in terms of remittances volume, it is quite low in comparison to other countries. It implies two points, either our size of the economy is very small or other sectors are not performing well. Unfortunately, both are true, which is not a healthy sign for our economy.
Enormous growth in the number of migrant workers implies lack of employment opportunities and deteriorating law and order situation of the country coupled with political instability. Foreign employment sector has to a great extent developed on its own with the government role being just that of a spectator. It reminds us of the earlier growth of the woolen carpet and garment industries, which are now almost dead. The danger of foreign employment meeting the same fate is always on the card. Hence, it is the right time to think about its viable alternatives. Foreign employment should be developed as a matter of informed choice rather than panacea for all the ills of our economy. We should stop gloating over its contribution in the economy and strive hard to generate adequate employment opportunities in the country itself.
Recent data shows that officially more than 1.6 million Nepali migrant workers are working in foreign countries. If we add undocumented migrant workers along with Nepalis working in India, this figure will be something around 4 million, which is almost 15 percent of our total population. This constitutes a very large proportion of the active age group population, which is a dominant factor for any country to develop. The four major labor-receiving countries –Malaysia, Qatar, Saudi Arabia and United Arab Emirates – have around 90 percent of Nepali migrant workers. Unfortunately, among these countries, Nepal has labor pact with United Arab Emirates and Qatar only. Moreover, labor pact with Qatar is not still in operation due to technical problems. It shows that we are relying too much on forces where we do not have any control.
Labor disputes in some of the destination countries are not a good sign to the Nepali labor markets. It demands timely actions from the concerned stakeholders. There is every possibility that these sorts of incidences can be easily manipulated by the people with vested interests.
It is frustrating to note that with so much of emphasis on the tourism sector, its contribution to the GDP is minimal. In fact, its net contribution is negative. Agriculture sector is not doing well with so much of labor force involved in it. Industrial sector is also unable to meet the employment demand of the Nepali labor force.
The best available option to resolve the present crisis is to generate employment opportunities in the country itself. For this, political stability with improved law and order situation is a must. We need to improve our governing system as well, which is supposed to be at the lowest ebb in recent times. We should reduce excessive dependence on foreign employment and try hard to add value to our labor force. Our focus should be on quality rather than on quantity of our labor force, which will increase bargaining capacity of these workers.
(Writer works for the Ministry of Labor and Transport Management.)
bishal2u@hotmail.com
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