Nepal Migration Year Book 2009

Transcription

1 Nepal Migration Year Book 2009 NIDS NCCR North-South

2 Book Nepal Migration Year Book 2009 Publishers Nepal Institute of Development Studies (NIDS) G.P.O. Box: 7647, Kathmandu, Nepal Web: South Asia Regional Coordination Office Swiss National Centre of Competence in Research (NCCR) North-South G.P.O Box: 910, Lalitpur, Nepal Web: Published Date September 2010 Copyright NIDS ISBN: Design, Layout & Print Heidel Press Pvt. Ltd. Dillibazar, Kathmandu Phone:

3 Dr. Anita (Bhattarai) Ghimire Dr. Bishnu Raj Upreti Dr. Ganesh Gurung Dr. Jagannath Adhikari THE EDITORIAL BOARD

4 DISCLAIMER This publication can be reproduced in whole or in part and in any form for educational or non-profit purposes without special permission from the copyright holder, provided that acknowledgement of the source is made. The publishers appreciate receiving a copy of any publication that uses this publication as a source. No use of this publication may be made for resale or for any other commercial purpose whatsoever without prior permission in writing from the publishers. This publication holds entirely personal views and interpretations of the respective author(s). Hence, the responsibility for the contents and opinions expressed here rests solely with the author(s). They are not attributable to NIDS or NCCR North-South and do not imply the publishers expression concerning the legal status of any country, territory, city or area of its authorities or concerning the delimitation of its frontiers or boundaries or the endorsement of any product. This publication is also available in electronic form at

5 PREFACE A significant number of Nepalis are migrating abroad in search of better opportunities every year. This trend is steadily increasing, establishing remittance a main source of income for a majority of people. Remittance is reported to have sustained Nepalese economy even during the critical political situations. Migration, at this period, is not limited to men as it was in earlier period. It has also become a charm for women. In some cases like domestic works, women are more on demand than men. So, more and more Nepalese women take direct or indirect ways to migrate for such fields. It is believed that women migrants share about 11 per cent of the total remittance. So, their contribution to national economy cannot be ignored. Information on migration is very rare at present. People involved in research, planning as well as policy and advocacy demand it much. In view of consolidating information on migration, we first published Migration Year Book in It received very positive response. That encouraged us to publish similar Year Books in the following years continuously including additional information on students migration and other pertinent issues. This Migration Year Book 2009 is an outcome of it. This issue tries to include information on the undocumented labour migration leading to casualties and fraudulent cases. It also highlights the internal migration, migration between India and Nepal, and the Internally Displaced People within the country. We hope that this issue helps researchers, policy-makers, members of different political parties, students and general public. The research for this publication was conducted within the framework of the Swiss National Centre of Competence in Research (NCCR) North-South: Research Partnerships for Mitigating Syndromes of Global Change, co-funded by SNSF and the SDC. So, we are thankful to Swiss National Science Foundation (SNSF) and Swiss Agency for Development and Cooperation (SDC) for their sincere supports. This publication would not have been possible without the hard work of committed people. We must express gratitude to the team of contributors of articles that includes Dr. Janardan Raj Sharma, Dr. Padma Prasad Khatiwada, Bal Krishna Gurung, Puja Shakya, Sadichhya Adhikari, Suman Babu Poudel and Dr. Anita (Bhattarai) Ghimire. We are equally grateful to the editors: Dr. Bishnu Raj Upreti, Dr. Ganesh Gurung, Dr. Jagannath Adhikari and Dr. Anita (Bhattarai) Ghimire for their prompt feedbacks and suggestions to enrich the publication. Bal Krishna Gurung deserves much credit for taking the responsibility in communicating efficiently, supervising data collection and entry, reviewing the chapters, compiling and formatting this volume. Lastly, we appreciate Krishna Gurung, Shivani Gurung, Aloong Hang Limbu and Amar Gurung who have supported in secondary data collection and data entry for this publication. Dr. Anita Manandhar Executive Director - NIDS i

6 PREFACE ABBREVIATIONS LIST OF CONTENTS i v Chapter I: INTRODUCTION Objectives Research Process Limitations of the Book Chapter II: POLITICAL DEVELOPMENTS Introduction Fragile Coalition Short-lived UCPN-M Regime Chapter III: STATUS AND TRENDS OF INTERNATIONAL LABOUR MIGRANTS Status Trends Nepali Interns to Japan Undocumented Labour Migration Casualty among Nepalis Fraudulent Cases Complaints Chapter IV: INTERNAL MIGRATION RATE IN NEPAL Paradigm Shift in Migration Rate of Migration Out-migration and In-migration Rates Conclusion Chapter V: STUDENT MIGRATION Introduction: The Global Panorama Student Migration in Nepal: Trends and Patterns Chapter VI: MIGRATION BETWEEN NEPAL AND INDIA Migration from Nepal to India Migration from India to Nepal Conclusion Chapter VII: GLOBAL FINANCIAL CRISIS AND NEPALI FOREIGN LABOUR MIGRATION Impact on Foreign Labour Migration Impact on the Flow of Remittances ii

7 Chapter VIII: FOREIGN LABOUR MIGRATION AND REMITTANCE ECONOMY Foreign Labour Migration from Nepal Destination of Foreign Labour Migrants Socio-economic Characteristics of Migrants Remittance Economy and Its Contribution Contribution on Government Revenue Contribution of Other Income and Employment Generation Chapter IX: INTERNALLY DISPLACED PERSONS Context Background: The Madhesi Conflict Madhesi and Pahadi: Local Understanding The IDPs in the Madhesi Conflict The Impact of Displacement Conclusion Chapter X: GENDER AND MIGRATION Ban to Nepali Women Concern from the Embassy of Nepal, Saudi Arabia Appointment of Labour Attaché Conclusion Chapter XI: REFUGEES IN NEPAL Status of Bhutanese Refugees Family Separation Casualties amongst Resettled Bhutanese Refugees Repatriation Efforts Other Refugees in Nepal Chapter XII: NEPALI DIASPORA The Size of Nepali Diaspora NRNA s Activities in Nepal Fourth NRN Global Conference NRNA Suggestions for the New Constitution NRNs Lobby for Dual Citizenship NRNA-NCCs Overseas NRNs Participate in Summiteers Summit to Save Himalaya, Copenhagen Nepali Women Diaspora Hold New York Event Chapter XIII: MAJOR EVENTS IN APPENDIX iii

8 LIST OF FIGURES Figure 3.1: People Going for Foreign Employment by Months in Figure 3.2: Migrant Workers by Region Figure 3.3: Female Migration by Region Figure 3.4: Complaints Filed Figure 3.5: Total Claimed Amount Figure 3.6: Total Compensated Amount Figure 5.1: No Objection Letters Approved from Ministry of Education Figure 7.1: Flow of Foreign Labour Migrants from Nepal in Different Years Figure 7.2: Growth Rate in Flow of Foreign Labour Migrants from Nepal Figure 7.3: Volume of Nepali Migrants to Main Destination Countries Figure 7.4: Number of Migrants and Remittances Coming to Nepal Figure 8.1: Trend of Foreign Labour Migration Figure 8.2: Labour Migration from Nepal Figure 8.3: Destinations of Foreign Labour Migrants from Nepal Figure 8.4: Macro Variables and Its Contribution Figure 8.5: Remittance LIST OF TABLES Table 3.1: Migrant Workers by Sex and Countries Table 4.1 Life-Time Migrants as Per Cent of Native Born Population Table 4.2: Overall Migration Data Collected by NLSS Table 4.3: Out-Migration and In-Migration Rates in Nepal Table 6.1: Emigration (Absentee Population) from Nepal to India Table 6.2: India-Born Population Living in Nepal Table 8.1: Foreign Migrant Workers Table 8.2: Contribution of Foreign Labour Migration to Government Revenue Table 10.1: Chronology of Events Related to Travel Ban on Nepali Female Migrants Table 11.1: Bhutanese Refugees Departures from Nepal Table 12.1: Nepali Diaspora Communities in Different Countries Appendix Table 8.3: Macro Variables and Its Comparison with Workers Remittance LIST OF BOXES Box 9.1: Local Incident Box 9.2: Growing Mistrust iv

9 ABBREVIATIONS Pound Sterling AD Anno Domini (In Gregory calendar date) ADB Asian Development Bank APF Armed Police Force APFA Association of Press Freedom Activists BS Bikram Sambat (In Hindu calendar date) CA Constituent Assembly CBS Central Bureau of Statistics CD Compact Disk CDPS Central Department of Population Studies CDR Central Development Region CEO Chief Executive Officer CoAS Chief of the Army Staff CPA Comprehensive Peace Agreement CPN-UML Communist Party of Nepal-Unified Marxist Leninist CRC Constitution Recommendation Committee DFID Department for International Development DoFE Department of Foreign Employment EDR Eastern Development Region EPS Employment Permit System FEA Foreign Employment Act FNCCI Federation of Nepalese Chambers of Commerce and Industry FWDR Far Western Development Region FY Fiscal Year GDP Gross Domestic Product GFMD Global Forum on Migration and Development GoN Government of Nepal IC Indian Currency ICAC Independent Commission against Corruption ICC International Coordination Council ICIMOD International Center for Integrated Mountain Development IDMC Internal Displacement Monitoring Centre IDP Internally Displaced Person IIE Institute of International Education ILO International Labour Organization IOM International Organization for Migration IT Information Technology ITP Industrial Training Programme JITCO Japan International Training Cooperation JLPT Japanese Language Proficiency Test v

10 MDG MEBDC MJF MoFA MoLTM MWDR NC NCC NCCR NCP NDRI NIDS NLSS NRs NRB NRN NRNA PLA PNO RSS SAARC SBI SDC SNSF TIP UAE UCPN-M UK UKCIS UML UN UNHCR UNIFEM US/USA USD VAT VDC WDR WFP WWW YCL Millennium Development Goal Migration, Employment, Birth, Death and Contraceptives Madhesi Janadhikar Forum Ministry of Foreign Affairs Ministry of Labour and Transport Management Mid-Western Development Region Nepali Congress National Coordination Council National Centre of Competence in Research National Commission on Population Nepal Development Research Institute Nepal Institute of Development Studies Nepal Living Standard Survey Nepali Rupees Nepal Rastra Bank Non Resident Nepali Non Resident Nepali s Association People s Liberation Army Person of Nepalese Origin Rastriya Samachar Samiti (National News Agency of Nepal) South Asian Association for Regional Cooperation State Bank of India Swiss Agency for Development and Cooperation Swiss National Science Foundation Technical Internship Program United Arab Emirates Unified Communist Party of Nepal-Maoist The United Kingdom United Kingdom Council for International Students Unified Marxist Leninist The United Nations United Nations High Commission for Refugees United Nations Development Fund for Women The United States of America United States Dollar Value Added Tax Village Development Committee Western Development Region World Food Program World Wide Web Young Communist League vi

11 Chapter I: INTRODUCTION Dr. Janardan Raj Sharma Migration is one of the defining global issues of the early twenty-first century. The number of people moving from rural to urban centres within the country and from one to the other country in search of employment, income opportunities, knowledge, and skill enhancement is unprecedented. According to the International Organization for Migration (2009), there are about 192 million people living outside their place of birth, which is about three per cent of the world s population. 1 This means that roughly one in every 35 persons in the world is a migrant employed overseas. Between 1965 and 1990 alone, the number of international migrants increased by 45 million representing an annual growth rate of about 2.1 per cent. The current annual growth rate is about 2.9 per cent. 2 One of the key dimensions of migration has been the flow of the remittance migrant workers send home. After several years of strong growth, remittance flows to developing countries began to slow down in 2008 and continued right through This was largely as a result of the global financial meltdown leading to reduced demand for industrial products as well as slump in development and construction boom. Yet, the growth pattern of remittance showed the resilient nature of remittance income to developing countries where the impact of the global economic meltdown was not as severe as in most industrialised countries. Migration is a major determining factor of Nepali economy which has suffered from prolonged conflict, political instability, and unrest. The number of Nepalis going overseas in search of job alongside their income has been growing though marginally. Similarly, a few migrants have been bringing in new technology and skill. Remittance income through formal banking alone is substantial and makes nearly 23.6 per cent of Nepal s gross domestic product. 3 As the economy continues to suffer from decline in agricultural and industrial production, remittance is described as a boon as it has prevented the economy from virtual collapse. 1.1 Objectives The primary objective of the Migration Year Book is to provide a timely, factual, comprehensive and non-partisan information, data and analysis of trends and issues related to migration with particular focus on migrant workers Ibid. 3 Economic Survey, 2009, Kathmandu: Ministry of Finance, GoN.

12 Its specific objectives are to: a. Review the general status and trends regarding migrants (IDPs may not come under the status), b. Analyse national laws, regulations, plans and programmes affecting migrant workers, c. Review governmental and private sector efforts to promote prospects of overseas employment for Nepalis; and d. Examine various dimensions of foreign employment, including socio-political, economic, gender, and health aspects. 1.2 Research Process This report is based on various sources of data, including those from Ministry of Labour and Transport Management (MoLTM), Ministry of Education, Ministry of Finance (MoF), Department of Foreign Employment (DoFE), United Nations High Commission for Refugees (UNHCR), International Organization for Migration (IOM), Nepal Institute of Development Studies (NIDS), Central Bureau of Statistics (CBS), Nepal Rastra Bank (NRB) and the web search engines and individual researches. These sources include published and unpublished studies, reports and information as well as coverage in media and different websites on labour migration issues. Furthermore, it should be noted at the outset that the data available from different sources mentioned above are neither complete nor comprehensive. For example, the DoFE compiles data on the number of permissions it grants on a month-to-month basis. This is the same figure quoted by news reports when they give the number of people who leave for foreign employment. There is no systematic process of compiling data on application, permission, and migration of the permitted applicants. It is assumed that all the Nepalis who get official final permission for foreign employment actually leave the country for overseas jobs. The same is true with data on migrant workers returning home after completing their contract time or any other reasons. There is also inadequate data on the cumulative figure of the Nepali migrant workers by country and month/year. Indeed, such data would have assisted to study the trends of the migrants employed abroad. There is also no separate figure available on the amount of remittance received from different countries; so is the case in the data on gender disaggregated remittance. NRB, the central bank, has been compiling figures through commercial banks on the flow of remittance by month. As there is no information on the origin of the remittance, it is difficult to estimate the total amount of remittance. 2

13 1.3 Limitations of the Book This book covers a single year period between January 1 and December Some background information may have references to dates before and after the period mentioned above. Some data have also been mentioned on the base of Nepalese fiscal year as derived from respective sources. Since the quality of data from different sources has not been verified independently, their consistency may be questionable. Last but not the least, since most of the data are derived from Nepalese environs, they are presented in Nepalese Rupees (NRs). Conversion rate is given in footnote of each chapter for the convenience of the readers. 3

14 Chapter II: POLITICAL DEVELOPMENTS Dr. Janardan Raj Sharma 2.1 Introduction The year 2009 dawned with an optimistic note in Nepal but set on a pessimistic one. The optimistic perspective was the result of the renewed commitment from the political parties across the national spectrum to institutionalise peace, complete the draft of the constitution for the federal democratic republic by 28 May 2010 and complete the process of integration and rehabilitation of the former Maoist combatants. Unfortunately, the year left us with immeasurable hopelessness with the political parties engaged in power struggle and personal rivalries instead of providing leadership in redefining a new relationship between the government and the governed. They were also unable to build consensus on a new constitutional framework to promote stability and prosperity of the people before the promised period. Thus, the drafting of the basic law of the land has been repeatedly delayed. The issues regarding integration and rehabilitation of the former combatants are at a snail s pace. The guns are silent but peace remains as elusive as political stability and economic prosperity do. The prevailing political uncertainties have merely been deferring important reforms in key areas of the economy, including labour migration. 2.2 Fragile Coalition Major political parties the Unified Communist Party of Nepal-Maoist (UCPN-M), the Nepali Congress (NC) and the Communist Party of Nepal- Unified Marxist Leninist (CPN-UML) are engaged in power struggle rather than in building consensus on the new constitutional order. Prime Minister Madhav Kumar Nepal leads the 22-party coalition government since 23 May This was built after the previous five-party coalition government led by UCPN-M chairman Pushpa Kamal Dahal stepped down abruptly. UCPN-M, the largest party in the Constituent Assembly (CA), remains outside the coalition. Madhav Kumar Nepal, who now leads the government, had lost both the seats he had contested during the election to the CA in April Many members from the council of ministers he presides over had also lost their seats in that election. The political horse-trading for ministries with large public funds and foreign aid is so intense that the council of ministers was expanded already for the eighth time on 11 September, marking the size of 44 in number. This is a colossal burden on Nepal which is ranked one of the poorest countries in South Asia. 4

15 The resignation of the UCPN-M-led coalition government on 4 May 2009 had its root on the personal distrust between Dahal and Chief of the Army Staff (CoAS) General Rukmangud Katuwal, who retired in August The reason why Dahal wanted to sack the army chief who was to retire after three months is still behind the curtain. A Cabinet meeting chaired by Dahal sacked General Katuwal directly instead of recommending such an action to President Ram Baran Yadav, the head of the state, as per the provisions of the Interim Constitution President Yadav intervened ordering General Katuwal to ignore his dismissal by the government and to stay put. Infuriated Dahal resigned, insisting that the President reverse his unethical and unconstitutional decision. 1 Since their party controls 38 per cent of the total seats in the 601-member CA, the UCPN-M showed their reluctance to approve budget estimates for the fiscal year The party launched a nation-wide movement for establishing civilian supremacy and the establishment of a UCPN-M-led national government to replace the present puppet government formed under the influence of foreign powers. 2 This has further delayed the progress on drafting new constitution. Mistrust among the three major political parties UCPN-M, NC and CPN-UML is so intense that consensus building on a new constitutional order looks like a rough ride. The NC and the CPN-UML largely favour, at least in policy statements, an Indian-style multi-party parliamentary democracy with a clear separation of powers, and checks and balances. They have pledged their commitment for guaranteeing fundamental human rights, freedom of the press, and an independent judiciary. Yet, these are the same parties that failed to institutionalise both a constitutional monarchy and multi-party parliamentary democracy while they ruled Nepal since its major democratic opening in the 1990s. Such a monumental failure led to the emergence of the UCPN-M, which has rejected parliamentary democracy as bourgeoisie democracy and wants to establish a people s republic where the party plays a dominant role in the political, economic, cultural, and social aspects. The UCPN-M has very clearly and consistently argued that they raised the arms against the state to basically offer an alternative to the parliamentary system, which they believe is a sham. Parliament, as they have been arguing for a long time, is a shop where a goat s head is kept to sell dog s meat. It is perhaps for this reason that the United States has set three conditions for Maoists to be removed from its terrorist list: (a) renounce violence, (b) end terror unleashed by paramilitary organisations like the Young Communist League (YCL), and (c) work together peacefully in the peace process. 3 1 Janadisha, Kathmandu, 30 June Political report by Chairman Pushpa Kamal Dahal of the UCPN-M presented at the party s politburo meeting on 15 June Statement by Robert O. Blake, United States Assistant Secretary of State for South and Central Asia, at a press conference, as reported in Nepal Samacharpatra, Kathmandu, 14 June

16 Yet, the fact remains that neither the NC nor the CPN-UML has the leadership or programme to stem the influence of the UCPN-M. Organisationally, UCPN-M is far more superior. It hoards 19,602 People s Liberation Army (PLA) and claims to possess as sophisticated arms and ammunitions as Nepal Army does. Since joining the peace process, the party has neither disbanded the PLA nor does it want to be disarmed. It has a paramilitary force known as the Young Communist League (YCL) which is blamed for flexing muscle power to silence opponents. It has a network of a commandstyle organisation, especially in the countryside. It is also believed to be virtually running parallel local government in the districts where it has traditionally maintained a strong presence. On the other hand, many leaders from the NC and the CPN-UML, have not been able to visit their villages. They also face moral crisis. During the campaign on the election to the CA, both the NC and CPN-UML offered little alternative to the UCPN-M agenda and in fact had endorsed most of them. This blurred the difference between the three political parties. These political parties have mobilised young men and women, who have neither been able to finish school nor find any job, for party works. The recurrent clashes among the youth wings of the political parties, insecurity, and loss of livelihood opportunities continue to make labour migration a strong attraction among these young people. 2.3 Short-lived UCPN-M Regime The UCPN-M-led government, which survived in office for nine months or to be precise 263 days between August 2008 and May 2009 faced problems and controversies from the very beginning. Its major decisions whether regarding the appointments of chancellor and members of the Nepal Academy, and the chief priest at the Pashupatinath Temple, the establishment of the Integrated Service Centres in Terai districts or the issuance of three ordinances to undermine the national legislature were marred by controversy. There was little progress, during their regime, on the areas affecting the lives of the common people directly. General breakdown in law and order situation, transport strikes, disturbances and road closures, skyrocketing market prices of essential goods, and environmental pollution made people s lives difficult. Many ordinary people were disappointed due to the wide gap between electoral promises and actual delivery. In this scene now, the Army is likely to play a bigger role in the political process. Its leadership structure today consists of trained professional soldiers. It continues to play its role in key political decisions. When the political unrest gripped Nepal in April 1990, soon after India s unilateral economic blockade against Nepal, King Birendra mainly listened to military leadership before he lifted the 30-year old ban on political parties. The role of the Nepal Army in transforming the country into a constitutional monarchy cannot 6

17 be undermined. Also, it was the Army that advised King Gyanendra to seek political rather than military solution to the mass movement in April Again, the Army stood firmly on the side of the political leaders when the monarchy was abolished and Nepal transformed to a federal democratic republic. The growing, and often decisive, role of the military in the Nepali political process is likely to grow in future, as manifested in the recent developments leading to the Cabinet decision dismissing General Katuwal before his term of office expired, and appointing the second-in-command, General Kul Bahadur Khadka as the new CoAS. This prompted swift intervention by President Ram Baran Yadav, who overruled the Cabinet decision to retain General Katuwal in office. India publicly backed General Katuwal, and Indian ambassador Rakesh Sood met Dahal several times to stop him from firing the army chief and to make room for a new coalition government. But Dahal refused to oblige him. This also explains why Dahal had resigned. The Human Development Report (2009) says Nepal remains hamstrung by ineffective government and frustrated former combatants and needs lasting peace to develop. It has stated that the underlying causes of conflict such as poverty and discrimination on the basis of caste and ethnicity remain unresolved. It said that deepening democracy and strengthening the rule of law are critical in order to give peace a chance of success. Nepal ranks the lowest in South Asia with a value of on a scale of 1, placing the country 142 out of 176 countries in the Human Development Index. Life expectancy is 63 years, while the literacy rate is 52 per cent. Life expectancy for the dalits, those at the bottom of the Hindu caste system, and other disadvantaged groups like ethnic minorities, Muslims and women, is much lower than the national average. It points to a profoundly uneven development patterns. 4 One of the key concerns has been the security of life and property. Abduction, murder, and intimidation are happening at an alarming rate. There has been a general breakdown in the law and order situation, but more worrisome is the political violence followed by immense impunity. According to Richard Bennett, representative of the Office of the United Nations High Commissioner for Human Rights, Abuses of human rights by nonstate actors, in particular by the UCPN-M and their non-cooperation with accountability mechanisms is contributing to the prevailing culture of impunity in Nepal. 5 According to Home Minister Bhim Rawal, at least 109 criminal groups are active in 26 districts of Nepal out of which only 12 groups including All Terai Liberation Front (Jay 4 United Nations Development Program, Nepal Human Development Report, Kathmandu: UNDP, The Kathmandu Post, Kathmandu, 30 July

18 Krishna Goit), Kirat People s Workers Party, Tharuhat Autonomous State Council have been classified as political organisations. 6 The Home Ministry has launched a Special Security Plan based on a confidential report on the security situation in Nepal. The plan seeks, among others, to increase the current strength of the Nepal Police from the present 56,079 to 66,079 and Armed Police Force (APF) from 25,780 to 37,168 to cope up with criminal activities. This means more expenditure on security. The additional human resources and logistics for the APF alone will cost annually NRs 7 3,029 million. 8 6 Kantipur, Kathmandu, 7 September Exchange rate as per Nepal Rastra Bank: 1 USD = 73 NRs (approx.). 8 Ibid. 8

19 Chapter III: STATUS AND TRENDS OF INTERNATIONAL LABOUR MIGRANTS 3.1 Status Bal Krishna Gurung Data of migration for foreign employment shows a slight fall in According to the DoFE, it approved 248,057 Nepalis in 2009 to go and work abroad through licensed private recruiting agencies and on an individual basis. The number was 266,666 in The number of migrant workers getting final approval from the DoFE dropped remarkably in This decrement can be clearly noticed throughout the year. The figure below shows that, on an average, about 19,081 people were permitted to go to work abroad almost every month. This shows that migrants getting final approval for foreign employment stayed at approximately 680 per day. Figure 3.1: People Going for Foreign Employment by Months in 2009 Source: Department of Foreign Employment, 2009 The Figure 3.1 shows that December 2009-January 2010 recorded the highest number (32,691) of Nepali migrant workers permitted for foreign employment. This duration had also marked the highest number for male migrant workers reaching up to 30,625. The figure shows that the highest number of final approval was made in the time of Dec 2009-Jan This change is probably due to the change in global economy. At that 9

20 time, the countries receiving Nepali labour migrants were still in the mid of the crisis and were slowly recovering. There is the highest number of female migrant workers (i.e. 2,066) who got the final approval in this period. The lowest number of approvals was during April 09-May 09 (12,758) which included 263 female migrant workers while the approvals to the males were 12,495 in number. 3.2 Trends According to the data from DoFE, Middle East still remains the top destination for Nepali migrant workers. Qatar, Saudi Arabia, and United Arab Emirates (UAE) were the main destination countries in there. However, amongst the three above-mentioned destinations, slightly fewer numbers of migrant workers got final approval from the DoFE in comparison to figures of previous year except for Saudi Arabia. In 2009, these countries hosted a total of 192,225 documented Nepali migrant workers. Hence, 2009 saw a decrease in number of migrant workers in comparison to 2008 data for those embarking to Middle East for foreign employment. This was followed by East Asia which received a total of 50,344 Nepali migrant workers. Malaysia retained its top position in being the major destination in East Asia region. Others included Brunei, Cambodia, Hong Kong, Laos, Macao, the Philippines, Singapore and Thailand. The SAARC countries (other than India) such as Afghanistan, Maldives, Sri Lanka and Pakistan had 1,841 official migrant workers from Nepal in There has been a decrease in number of Nepali migrant workers going to other Asian countries (1,642), Central America (26) and Oceania (47) while an increase has been recorded for those going to Europe (551), North America (466) and Africa (915), in comparison to the official figures of Among the African countries, Libya has been the major destination. Figure 3.2: Migrant Workers by Region, 2009 Source: Department of Foreign Employment,

21 Gulf countries, yet, remained the popular destinations for numerous Nepali migrant workers throughout the year. Figures show a decrease in the numbers going to Qatar from 91,267 in 2008 to 75,365 in In the regard of financial recession in the Gulf, Dr Surya Nath Mishra, chief of the mission in Qatar, said that mainly workers employed in the construction sector would be affected by the recession. He pointed out that in Qatar, more than 95 per cent of the foreign workforce, including Nepalis, was engaged in construction. He added that they could have a tough time in the near future as construction companies had started to reduce costs by squeezing the number of workers and cutting back working hours to cope with the recession. 1 About 100 Nepali workers of a construction firm in Qatar who stayed away from work for more than three months have received their salary arrears from their employers. Dr Mishra was reported to have mentioned Gulf Times that about 40 of those who had received salary arrears had already returned home in the third week of March The workers had stayed away from sites following the company s inability to pay salaries on time. Most of the workers had been in Qatar for periods ranging between 15 and 22 months. 2 As of today, Qatar hosts about 300,000 Nepali migrants. Dr Mishra also shared that Qatar had approved 112,000 visas for Nepali workers for the year This figure however suggests that despite a larger number of visas being approved, the final approval received from the DoFE is much less in number for the year Recently, Qatar is opening a skill training centre in Nepal to enhance the skills of Nepali workers who are leaving for work in that country. Due to the lower level of skill of Nepali workers, they have not been getting the opportunity to claim as much money as their counterparts mainly from India, Sri Lanka and Indonesia have been getting. Government of Nepal has recently decided to fix a minimum salary for workers heading to Qatar on the recommendation of the Nepali Embassy in Qatar and in response to inflation and the rising cost of living in the destination country. As per the new decision, manpower agencies have to fix minimum wages of Qatari Riyal per month for unskilled workers, 1,000 Riyal for semi-skilled, 1,300-1,900 Riyal for skilled and 5,500 Riyal for highly skilled workers. 1 Web source: Republica, More Nepalis to lose jobs overseas, published on :48:29, accessed on 18 April 2010 ( 2 Web source: Republica, Salary delay forces Nepalis to return from Qatar, published on :21:53, accessed on 18 April 2010 ( 3 Web source: Republica, More Nepalis to lose jobs overseas, published on :48:29, accessed on 18 April 2010 ( 4 Exchange rate as per Nepal Rastra Bank: 1 Qatari Riyal = Nepali Rupees ( ). 11

22 The government has also defined unskilled, skilled, semi-skilled and high-skilled workers. According to the sources, the ones working as labourers, cleaners, helpers, sweepers and watchmen have been defined as unskilled, whereas those who have received training in their respective jobs have been defined as semi-skilled. Those working as overseers and waiters have been defined as skilled, while chartered accountants, doctors, and engineers are defined as highly skilled. 5 After Qatar, Saudi Arabia stands at the second with 59,412 Nepali migrant workers followed closely by UAE with 36,008 migrant workers. Hamid Ansari, ambassador to Saudi Arabia, noted that Nepal need not worry about job loss by Nepali workers in the oilrich Gulf country as Saudi Arabia had not been affected by the global financial gloom. 6 With the onset of global financial meltdown, major emirates in UAE, including Dubai, saw slackness in their economies after a six-year boom, leading to huge retrenchment and layoffs. 7 Hence, a decrease was observed in the total number of final approval in comparison to the data of 2008 for UAE. Arjun Bahadur Thapa, Nepali ambassador to UAE, has stated that some 5,000 Nepalis had already lost their jobs so far in UAE. 8 Estimations were that the number would soar in the days ahead. He further stated that the dismal picture had arisen because major employer companies were either suspending operations or seeking voluntary resignations by workers to cut liabilities given the sluggish economic outlook. 9 As for East Asia, as usual, the largest concentration of Nepali migrant workers was in Malaysia. However, the figures indicate a decrease in the number of Nepali migrant workers going to work in Malaysia. A total of 64,499 Nepalis left for work in Malaysia in 2007 while in 2008 this number dropped down to 53,436 which further reduced to 49,488 approvals the following year. Hence, Malaysia is slowly starting to become a lesser option for potential migrant workers from Nepal. Rishi Adhikari, envoy to Malaysia, reportedly said that about 150 Nepalis had lost their jobs in He also informed that the Malaysian government had already taken a decision to reduce migrant workers to 1.8 million by 2010 from the existing 2.3 million. The East 5 Web source: Republica, Qatar to help train Nepali workers, published on :00:01, accessed on 18 April 2010 ( 6 Web source: Republica, More Nepalis to lose jobs overseas. published on :48:29, accessed on 18 April 2010 ( 7 Web source: Republica, No immediate layoffs of Nepali workers. published on :00:01, accessed on 18 April 2010 ( 8 Web source: Republica, More Nepalis to lose jobs overseas, Published on :48:29, Accessed on 18 April 2010 ( 9 Web source: Republica, More Nepalis to lose jobs overseas. published on :48:29, accessed on 18 April 2010 ( 12

23 Asian multinational hub last month had announced that it would not take more foreign workers in the manufacturing and service sectors. Malaysia entertains about 380,000 Nepalis. 10 Hong Kong used to be the second in choice after Malaysia. However, figures of 2009 show that Macao has toppled it as the second favourite destination with 607 final approvals. With 98 officially registered Nepali migrant workers, Singapore stands the third while Hong Kong has been pushed down to the fourth place with only 93 final approvals amongst the popular East Asian destination countries. As new aspirants are being denied visa and those who have been staying are gradually switching over to other professions, Nepali domestic workers in Hong Kong are on the decline. Four years ago, the number of Nepali female domestic helpers was about 2,000. Dramatically, it declined to 700 in The number of Nepali asylum seekers reaching Hong Kong has increased by over ten fold in 2009 as compared to 2005 when Hong Kong shut the door for Nepali job aspirants, alleging illegal activities and political unrest in Nepal. 12 Nepali workers generally lag behind due to lack of training and knowledge of the language, which was one of the chief reasons behind the visa ban. Domestic helpers from Indonesia and the Philippines mostly come to Hong Kong with necessary training. Most of the Filipino working there are graduates and can also communicate in English, whereas Indonesian government sends workers after teaching them Cantonese language, which is most preferred by Chinese employers in Hong Kong. 13 Sadly, a Nepali housemaid died in Umm Al-Haiman in Kuwait after her woman employer hit her in the head with a bathroom tile for not understanding her language, the Al-Seyassah daily had reported. 14 Hence, knowledge of local language for work such as domestic helps is a must. Nepali women workers are said to have found Hong Kong a safe and secure place to work as compared to Gulf countries. 15 Saru Joshi, Regional Programme Manager of UNIFEM, reportedly mentioned that they had been raising voice for reopening of Hong Kong for Nepali workers. It is also because Hong Kong has one of the best rules and regulations for the greater rights for migrant 10 Ibid. 11 Web source: Republica, Number of Nepali domestic helps in Hong Kong dwindles. published on :01:32, accessed on 22 April 2010 ( 12 Web source: Republica, Talk to HK government on labour. published on :12:00, accessed on 22 April 2010 ( 13 Web source: Republica, Number of Nepali domestic helps in Hong Kong dwindles. published on :01:32, accessed on 22 April 2010 ( 14 Web source: Republica, Number of Nepali domestic helps in Hong Kong dwindles. published on :01:32, accessed on 22 April 2010 ( 15 Web source: Republica, Number of Nepali domestic helps in Hong Kong dwindles. published on :01:32, accessed on 22 April 2010 ( 13

24 workers. Even a domestic worker can earn at least NRs 16 30,000 a month. She too felt that Nepali workers, especially women, feel safer in Hong Kong where UNIFEM had been working in collaboration with Asian Migrant Centre and Domestic Women Workers Union to safeguard the rights of Nepali women. A study conducted by UNIFEM claimed that Hong Kong was the best recipient country in terms of safety and remuneration of women workers. Nepali women could find jobs mostly at beauty parlours and department stores, as domestic helpers and security guards in Hong Kong. The Government of Nepal has taken initiative to re-open the job market in Hong Kong, which has been restricted for Nepali domestic workers for the last four years. 17 In the SAARC region, basically Afghanistan hosted the largest number of Nepali migrant workers (if Nepal India migration is sidelined). It decreased to 1,292 including 12 females in comparison to the data of The decrease could be due to increased conflict in Afghanistan with lesser demands for other jobs except for security personnel. Such decrement is reported even in those going to Maldives. This year the data shows 433 approvals, along with 68 for females, for foreign employment to Maldives. There is no current official record of the number of Nepali migrant workers leaving for India due to the open border and with no requirement for travel documents for Nepalis. NIDS had conducted a study to analyse the status of Women Foreign Labour Migrants in Nepal in It showed that among 1,500,000 Nepali migrants in India, 153,000 were females. As of now, a large number of Indians from Bihar, Uttar Pradesh, Madhya Pradesh, Orissa and other neighbouring areas still cross the border into Nepal. Most recent migrants are found in towns and cities, where they are engaged in semi-skilled labour and mercantile activities. 18 There has been discrepancy on Indian and Nepali census on the issue of the number of Nepalis (Nepal-born population) in India and hence the figures have always been controversial. Amid rising shortage of workers after recent crackdown on illegal migrant workers, South Korean government has softened its visa policy and provision on changing employers. Under the new provision, Korea has increased the visa period to five years. Additionally, it has allowed the workers employed under Employment Permit System (EPS) to shift to more than three employers during the contract period. Previously, workers needed to return to their homeland in three years and they could switch jobs only for three times. The new move of the South Korean government has opened opportunities for the migrant 16 Exchange rate as per Nepal Rastra Bank: 1 USD = 73 NRs (approx.). 17 Web source: Republica, Government eyes HK job market for Nepalis. published on :55:28, accessed on 22 April 2010 ( 18 Web source: Republica, Korea softens workers visa policy, published on :45:44, accessed on 18 April 2010 ( 14

25 workers appointed under EPS to work for additional two employers. This will directly benefit about 3,500 Nepalis who have been employed in Korea since Nepal and Korea signed EPS agreement in Focus on foreign labour destinations of Nepalis is shifting from Gulf countries to the Euro-zone. Some Nepali foreign employment agencies have located labour markets in Cyprus and Poland. A private recruiting agency has received demand for 450 general labourers at minimum wage of 300 Cyprus Pounds 20 per month each. 21 Another private recruiting agency also has received job demand from Poland in the agriculture sector mainly on farming and animal husbandry for both male and female workers. Around 120 Nepalis are working in Poland and they are getting a handsome salary of USD per month each. 23 Prospects in Poland are reported to be bright where a Nepali can earn more than in Gulf countries like in UAE, Saudi Arabia, Qatar, and Malaysia in the east. 24 However, the MoLTM has claimed that due to the global economic crisis there was no demand for Nepali labourers in Poland. Similarly, the government was investigating on the labour demand from Ukraine as the companies that had asked for Nepali labourers were reportedly closed. 25 According to the data of the DoFE (2009), the official number of Nepali female migrant workers has increased in comparison to The figure reached 11,507 out of the total 248,057 migrants in 2009 while it was only 316 in 2007 and 11,007 in Adhikari, J. and Gurung, G., 2009, Migration between Nepal and India-Security and Livelihood concerns, Kathmandu: NIDS and NCCR North-South. 20 Approximate exchange rate: 1 Cyprus Pound = 2.27 USD. 21 Web source: The Himalayan Times, Worker destination attraction veering from Gulf to Euro-zone, Last updated on :01 PM, Accessed on 18 April 2010 ( 22 Web source: The Himalayan Times, Worker destination attraction veering from Gulf to Euro-zone, Last updated on :01 PM, Accessed on 18 April 2010 ( 23 Web source: The Himalayan Times, Worker destination attraction veering from Gulf to Euro-zone, last updated on :01 PM, accessed on 18 April 2010 ( 24 Web source: The Himalayan Times, Nepali labourers not wanted, says minister, last updated on :14 PM, accessed on 23 April 2010 ( 25 Web source: The Himalayan Times, Nepali labourers not wanted, says minister, Last updated on :14 PM, accessed on 23 April 2010 ( 15

26 Table 3.1: Migrant Workers by Sex and Countries, 2009 Country Male Female Total Country Male Female Total Afghanistan 1, ,292 Malawi Algeria Mali America Malaysia 49, ,448 Angola Maldives Australia Mauritius Azerbaijan Morocco Bahrain 5, ,719 Mozambique Belgium The Netherlands Benin New Zealand Bermuda Nigeria Brunei Norway Cambodia Oman 2, ,513 Canada Panama China Papua New Guinea Cyprus The Philippines Czech Republic Poland Denmark Portugal Egypt Qatar 74, ,365 Fiji Romania Finland Russia France Spain Germany Saudi Arabia 59, ,412 Greece Senegal Hong Kong Sweden Iceland Seychelles Ireland Singapore Israel 306 1,257 1,563 South Africa Italy Spain Jamaica Sri Lanka Japan 1, ,279 Sudan Jordan Tanzania Kenya Thailand South Korea* UAE 34,258 1,750 36,008 Kuwait 4,468 2,927 7,395 The UK Laos Vietnam Lebanon 251 2,888 3,139 West Indies Libya Switzerland Macao Source: Department of Foreign Employment, 2009 *Data for South Korea are included only for the month of Mid November 2009 to Mid January A total of 2,801 left for South Korea in the fiscal year Web source: Republica, Government readies guidelines to send interns to Japan, published on :00:01, accessed on 18 April 2010 ( 16

27 Female migration has been consistently increasing despite unofficial restrictions on going to work in the Gulf countries mainly in Saudi Arabia as well as Malaysia. Though the data reveal an increase in documented female migration from Nepal there could potentially be an equal number of undocumented female migrants travelling to various countries for foreign employment via major cities in India or even through Bangladesh. Some of the possible reasons for this could be the undeclared ban by the Government of Nepal on female migration especially to the Gulf countries and Malaysia, and cheaper air-fares to foreign destinations from India and Bangladesh. Figure 3.3: Female Migration by Region, 2009 Source: Department of Foreign Employment, 2009 By region, the Gulf countries, particularly Kuwait, Lebanon, UAE, Israel and Bahrain were still of the favourites among Nepali female migrant workers. Figure 3.3 shows that the Gulf countries hosted 10,691 Nepali migrants this year. It shows that there has been a gradual increase in the number of documented cases in comparison to figures of In 2009, Nepali female migrant workers were hosted by East Asian countries (464), SAARC region except India (80), other Asian countries (47), Europe (105), North America (89), Oceania (13), African (6) and Central American countries (12). The data shows that female migration in the East Asian and North and Central American countries has increased in comparison to that of Nepali Interns to Japan Nepal signed agreements with Japan International Training Cooperation (JITCO) to send Nepali interns to work in Japanese enterprises through Federation of Nepalese Chambers 17

28 of Commerce and Industry (FNCCI) in It signed another agreement in 2008, paving the way for Nepali manpower agencies to send industrial trainees to Japan. The government has designated 171 manpower agencies and FNCCI to undertake the internship process. 27 Now, the total number of manpower firms seeking government designation to export Nepali youths to Japan has reached to MoLTM has urged the authorised agencies to initiate the process for sending Nepali workers to Japan under the industrial training assistance of JITCO. It has already released guidelines on JITCO s Industrial Training Program (ITP) and Technical Internship Program (TIP) for Nepalis who wish to go to Japan as industrial workers. 29 As per the guidelines, the sending agencies can collect NRs 50,000 as promotional fee that includes health check-up, pre-departure training, language and cultural training, insurance premium, monitoring of workers and market management cost for job opportunities in Japan. According to the MoLTM, selected interns would have to undergo training on grammar of Japanese language, hearing and conversation, basic occupational terminology and understanding about Japanese culture and Japanese food during the specified training hours. As per the training schedule, the candidates will have to participate 60 days (90 hours) of training for grammar on Japanese language, including writing and reading, with 40 per cent and 60 per cent of teaching hours separated for theory and practical respectively. Hearing and conversation training will cover 90 hours (60 days) for speaking, listening and conversation with 30 per cent and 70 per cent hours separated for theory and practical respectively. Similarly, the candidates will also have to take training on basic occupational terminology for six hours or three days, understanding about Japanese culture for 30 hours or 10 days and understanding about Japanese food for three hours or a day. The ministry also said that language training institutions could have more than 10 to 12 trainees in a class at one time. The language instructors have to pass second level of Japanese Language Proficiency Test (JLPT). The MoLTM has fixed the language training fee at NRs 7,000 per person Web source: Republica, 195 Manpower firms want to send workers to Japan, published on :30:00, accessed on April ( 28 Web source: Republica, Government urges agencies to start sending process, published on :41:46, accessed on 18 April 2010 ( 29 Web source: Republica, Agencies told to collect Rs 50,000 per worker, published on :00:01, accessed on 18 April 2010 ( 30 Web source: Republica, Training on Japanese language, culture must for JITCO aspirants, published on :00:01, accessed on 18 April 2010 ( 18

29 The guidelines further state that sending institutions will have to maintain transparency on income and expenditure incurred while sending workers to Japan. Workers, however, will have to contribute to the Foreign Employment Welfare Fund on their own. There is a stringent provision of punishing both the sending agencies and the workers if they are found to be collecting more than the prescribed amount as fee. The sending agencies will have to appoint their agents in Japan, subject to permission of MoLTM. The Ministry, however, can determine the number of agents on the basis of workers and the places where they are employed. According to the guidelines, the agents will have to facilitate workers, deal with their probable problems in Japan, inform Nepali Embassy if workers violate job contract and promote Nepal as a source country for Japanese job market. Only the workers who can speak and understand Japanese language, have information about Japanese culture and have undergone pre-departure training are qualified to go to Japan. According to the officials, a high-level committee led by Labour Minister will be formed to monitor the sending process. The guidelines have also made it mandatory for receiving Japanese enterprises to submit periodical report about the condition of Nepali workers to Nepali Embassy. Besides, they also need to inform the Nepali mission about commission and other facilities they provided to sending agencies in Nepal. The Nepalese Embassy will have to play the role of a facilitator to forge proper coordination among Japanese enterprises and certify the demands they placed. Similarly, the government can call back the workers if they are found to have submitted fake documents and slap them a fine equivalent to the expenses incurred while sending the workers to Japan. The workers will have to make a written commitment before the government that they would turn back after the internship from Japanese firms. Those overstaying in Japan will be punished as per the Foreign Employment Act. Similarly, according to the guidelines, Nepali enterprises recommending their workers to Japan would be slapped a fine equivalent to total expenses incurred in the sending process, if they failed to reemploy workers after internship in Japan. Workers between the age of 18 and 40 having two years of work experience in industrial enterprises, factories, agriculture firms, cooperatives, community-based institutions, hotels and tourism enterprises, among others, are qualified to work as industrial trainees in Japan. 31 Government officials say some 1,000 industrial workers will get the opportunity to work in Japan under the programme this year Web source: Republica, Government urges agencies to start sending process, published on :41:46, accessed on 18 April 2010 ( 32 Web source: The Himalayan Times, 15 Nepali women stranded in Saudi Arabia, Last updated on :54 PM, accessed on 23 April 2010 ( 19

30 3.4 Undocumented Labour Migration Since it is difficult to ascertain the exact number of undocumented labour migrants, it has always been a problem to ensure safety and the rights of the migrant workers in their destination countries. DoFE s policy on not to encourage women prohibits women from going to Gulf countries namely: Saudi Arabia, UAE, Qatar and Kuwait. Permits to women are not issued if they do not have guardians there. Yet, around Nepali women are flying to Gulf countries via India daily. Nearly 20-25,000 Nepali women are believed to be working in Saudi Arabia and most of them were illegal because Nepal government has banned women from working there due to the increasing cases of sexual harassment and unsafe working environment. 33 Nepali Embassy in Saudi Arabia sent home 15 Nepali women stranded there for over 15 months. The embassy could not send them back earlier as most of them had reached Saudi Arabia illegally via Bombay and lacked proper documents. The women, who were sheltered in the embassy for three months, said that some known individuals from their village duped them and sent them to Bombay from where they were taken to Saudi Arabia. 34 Recently, the government of Bangladesh is introducing Smart Card, a tag with computer chip, for overseas jobseekers. It eases the immigration process and helps the jobseekers more effectively while they are abroad. This is similar to obtaining a hologram sticker from the DoFE Nepal for getting final approval. The Government of Nepal has a Labour- Desk at the international airport in Nepal who keeps pursuant to subsection (1) of Section 73 of the FEA, It checks whether the workers, who are proceeding for foreign employment, possess the necessary documents such as Labour Permit, Certificate of Orientation Training, and receipt of the money paid or the vouchers. Despite these attempts, open border with India has been a major challenge in checking undocumented labour migration. The government of Nepal may take up the best practice of Bangladesh for not only checking undocumented labour migration but also for addressing some other problems related with migration. The Smart Card would contain all the information furnished in the passport, the jobseeker s fingerprints and the name and license number of the recruiting agency. This provision would help the authorities identify all the parties involved in the migration process and take prompt actions when needed. The migrant workers, too, would not have to fill an embarkation form at the airport. The form is expected to be filled up automatically when the Smart Card is inserted in a card reader. This would greatly reduce the initial hassles at the airport. However, the migrants would 33 Web source: Republica, 15 women sent back from Saudi Arabia, published on :49:11, accessed on 26 April 2010 ( 34 Web source: Smart Card Launching (See: 20

31 have to keep the card safe with highest priority, as besides the passport, it would bear proof of an overseas worker s valid documents. A jobseeker would obtain the Smart Card when s/he had clearances from the authorised government agency after completing all the formalities for foreign employment. S/he will not be allowed to pass the airport immigration without the card once the system is fully operational. With the introduction of the Smart Card, the welfare desk would keep data of a worker s departure and arrivals thus helping the government preserve the exact data of workers staying overseas. This is also expected to facilitate immediate actions by the embassies in the destination countries to promptly check the information. Furthermore, they can take immediate steps to address the problems of the migrants even if the employers seize the workers passports and abuse them. It is also expected to facilitate the verification process for ensuring the compensation to the rightful family member of the departed, in case the migrant dies abroad. As for giving a Smart Card is impossible, it would also complement to check undocumented labour migration. 35 Undocumented status in receiving countries has been associated with inability to access health services. Specialised hospitals do not treat illegal or low-income patients unless their companies stand as guarantors. If I go to a hospital here, I have to pay 50,000 Korean won to clean my teeth, a Nepali woman worker said, adding, We undocumented workers are facing hard times in South Korea. The health camp planned by Migrant Trade Union supported by the Buddhist group of South Korea for migrant workers of all nationalities saw a huge number of Nepalis living there without visas turned out for the camp. David Rai, the president of Consulting Committee for Nepalis, said that an estimated 100 Nepali workers were examined on one day. 36 Around five hundred Nepalis have been detained in over a month under the ongoing sweep operation carried out by the Malaysian government against illegal and undocumented foreign workers. 37 Rishi Raj Adhikari, Nepali ambassador to Malaysia, reportedly informed that the Malaysian authorities had launched the crackdown amidst pressure from local people. It was mainly to discourage illegal and undocumented workers on the back of financial crisis that triggered massive unemployment in the country. He had estimated that around 15,000 Nepalis were illegally staying in Malaysia. However, the manpower agents put the number at around 25,000 to 50, South Korea arrested a 35 Web source: Republica, Nepali workers throng free medical camps in Korea Most have respiratory, orthopedic problems, published on :00:01, accessed on 18 April 2010 (www. myrepublica.com). 36 Web source: Republica, 500 Nepalis detained in a month in Malaysia, published on :00:01, accessed on 18 April 2010 ( 37 Web source: Republica, Nepali mission seeks details of detained workers, published on :00:01, accessed on 26 April 2010 ( 38 Web source: Republica, Korea arrests 16 Nepalis, published on :00:01, accessed on 18 April 2010 ( 21

32 huge number of migrant workers including 16 Nepalis ahead of a planned crackdown on illegal migrants scheduled for October and November. About half the estimated 7,000 Nepalis living in South Korea are overstaying. 39 Similarly, a total of 79 undocumented migrants from Nepal, Ethiopia, Eritrea and Somalia were arrested in a Nicaraguan port off the Caribbean Sea. The exact number of Nepalis is not known, but it is reported that they were heading towards the United States as the port has been used as a transit point for undocumented migrant workers. 40 However, this report is expected only to be a tip of the iceberg when it comes to undocumented labour migration. 3.5 Casualty among Nepalis Most Nepali migrant workers have low level of skill. They are destined or designed to work in miserable environmental conditions. This plight is further aggravated by the work load. That is why, many such workers are prone to unexpected problems and risks. Such dire consequences often result into negative implications and fill them with nostalgia. For instance, women working in various countries in the Gulf region as domestic maids are subject to physical and mental torture. Some of them are not paid for their work but are instead subjected to physical and psychological exploitation. Reports say some women were stranded in Gulf countries as they have been expelled by their employers and did not have expense to go back home. 41 A leading daily newspaper reports that the number of unnatural deaths of the Nepali migrant workers in Gulf countries is increasing day by day. Twenty-four Nepalis working in Qatar have met such deaths from May 1 to June According to a list made available by the Nepalese Embassy, most of the deaths occur due to road accidents and health-related problems. 43 Death due to accident at the work place has also been reported through various media. There were also some cases where employers had not insured their workers through Foreign Employment Act (FEA) 2007 under Section 26. This Section states that insurance must be done before the license holder sends worker for foreign employment. Such insurance must procure coverage upto 500,000 NRs for a worker under the Act. Such insurance coverage must insure against the death or physical injury of workers occurring from whatsoever reasons, and must remain valid during the term of foreign employment. 39 Web source: The Himalayan Times, Nepalis held in Nicaragua, Last updated on :24 AM, accessed on 23 April 2010 ( 40 Web source: The Himalayan Times, Nepali women facing hard times, Last updated on :17:02, accessed on 18 April 2010 ( 41 Web source: Republica, 24 Nepalis die in a month in Qatar, Published on :59:36, Accessed on 18 April 2010 ( 42 Web source: Republica, 24 Nepalis die in a month in Qatar, published on :59:36, accessed on 18 April 2010 ( 43 Web source: The Himalayan Times, Migrant workers duped, last updated on :19 PM, accessed on 18 April 2010 ( 22

33 3.6 Fraudulent Cases Cases of fraudulence have often been associated with unauthorised agents of recruiting agencies. The FEA 2007 under Section 74 has a provision related to opening of a Branch Office and appointment of Agents. Subsection (1) states that a License Holder may open its Branch Office or appoint its Agents in those countries where it had already sent the workers by obtaining prescribed permission from DoFE. Similarly, subsection (2) states that the License Holder may open a Branch Office or appoint its agents within Nepal after obtaining the permissions from the DoFE as prescribed. Further, it says that while appointing the agent pursuant to subsection (1) or (2), the License Holder shall provide security deposit in the amount as prescribed. It adds that the License Holder shall be liable for the works done by its agents. However, many recruiting agencies are not found to have formally registered their agents with the DoFE. This has eased the agents to lure and mislead the potential migrants into consequences that often leave the latter helpless and stigmatised to file any complaints. Though the FEA 2007 also has a provision under Section 36 for filing complaint for compensation, many migrant workers are still unaware of the system at the DoFE. Media reports that the number of Nepali migrant workers duped are equal with the number of unchecked fraudulences. Nepali workers reaching Qatar to be employed have been reportedly duped by Nepali outsourcing agents. Most of the Nepali workers in the Gulf countries have to suffer due to duplicate visas sent by Nepali workers (agents). However, those reaching there through manpower companies do not face this problem. 44 The MoLTM reportedly stated that Nepali youth labour migrants were cheated and exploited due to irregularities in the ministry itself. Hence, the ministry was investigating as per the demands of foreign employment agencies. 3.7 Complaints In 2009, the total number of personal complaints reached 449. Organisational complaints reached 451 while there were 75 complaints registered in the District Court. A monthly breakdown of complaints filed in 2009 is depicted in Figure Web source: The Himalayan Times, Nepali labourers not wanted, says minister, Last updated on :14 PM, accessed on 23 April 2010 ( 23

34 Figure 3.4: Complaints Filed, 2009 Source: Department of Foreign Employment, 2009 Figure 3.5: Total Claimed Amount, 2009 Source: Department of Foreign Employment,

35 Hence, though there was a slight decrease in the number of personal complaints, substantially more complaints were noticed for organisational complaints in comparison to the data of A total of 102 personal complaints were withdrawn, while 114 organisational complaints were settled in The sum total claimed by personal complaints for the year 2009 was NRs 314,820,331 and that of organisational complaints totalled NRs 206,889,515 as illustrated in the Figure 3.5. Both figures have been in rise while comparing them with the data of However, the claimed amount of organisation complaints shows a remarkable growth. The amount awarded in compensation for personal complaints for 2009 was NRs 34,395,000 as compared to NRs 35,546,480 for organisational complaints. Figure 3.6: Total Compensated Amount, 2009 Source: Department of Foreign Employment, 2009 It shows that greater amount was compensated for personal complaints in 2009 than in However, there was a considerable decrement in the compensation amount for organisational complaints in The figure for compensated amount from District Court was NRs 186,000,680. Monthly figures are illustrated by the Figure

36 Chapter IV: INTERNAL MIGRATION RATE IN NEPAL Dr. Padma Prasad Khatiwada 4.1 Paradigm Shift in Migration Migration is one of the major factors to make changes in overall development of a country. It can bring both positive as well as negative changes to a person, family, society or the whole nation. Mobility of the people has been rapidly growing worldwide phenomenon. It is an outcome of open and competitive market system, globalisation of technologies and resources. The global use of skills and knowledge has also accelerated this pace. Data have proved that the international migrants of 1975 have been doubled in A sharp increase can be observed afterwards as claimed by the scholars that more than three per cent of the total population worldwide is of international migrants. However, the rate of internal migration worldwide is yet to be known. Nobody knows when migration began but it is obvious that people began to move from one place to another in search of better opportunities. They usually moved from the places with fewer opportunities in terms of food, cloth, shelter, education and health facility to comparatively the places with more opportunities. Traditionally, people used to move in quest of better life standards. However, with the beginning of the modern era, reasons for migration are not limited only to opportunities. The post-modern society observes migration as a general phenomenon. It has witnessed the incidences of, among others, conflicts and disasters alarmingly increasing with respect to the advancement of resources and technologies. There are enough literatures on international migration but internal migration is rarely discussed. This might have received less attention for being a less focused subject matter for academics, researchers, activists, and planners. In Nepal, migration is the least researched area and least focused by the government in its policy of periodic plans. But this issue has now got high priority among both academia and policy-makers due to increased trends of out-migration mainly from hilly and rural Nepal to the cities and abroad. Consequently, Nepal has been experiencing multi-faceted 1 Castles, S., 2006, Forced Migration and Social Transformation, paper presented at Summer School in Forced Migration, 3-21 July 2006, Oxford: Refugee Studies Centre, Oxford University. 26

37 impact of international migrants on its social, cultural, political, and economic sphere. In all these areas, the main outcomes of migration are: increased financial capital, enriched education of the children, enhanced migration-specific knowledge, and increased social capital. 2 Internal movements of the people are closely linked with the political, social, cultural, and ethnic thoughts and these have not been appropriately discussed and concluded in the available literatures. 3 Furthermore, study of internal migration has not been the priority area of the political parties, academics and policy makers, despite the reality that many of the city areas of Nepal are filled with the migrants from different parts of the country. The presence and settlement of migrants in these areas has invited both positive and negative consequences. So these issues need to be timely discussed and debated for the effective state-building purpose. 4.2 Rate of Migration Rate of life-time migration within the country is defined as the number of life-time migrants per hundred native born population. 4 Larger the coverage of geographical or political area, larger is the volume of migration. Indubitably, the rate of migration, in the context of Nepal, depends on the type of migration and the geographical or political area it has covered. The census sources conducted so far can give the minimum unit of analysis for the migration data in Nepal only up to the district level. The census reports and data do not have statistics on migration rate from one Village Development Committee (VDC) to another. For the first time, CBS carried out a survey on migration in 1986/87 where the then village Panchayats were taken as the unit of migration. Later on, the Migration, Employment, Birth, Death and Contraceptives (MEBDC) Survey conducted in 1996/97 by the Central Department of Population Studies (CDPS) defined Internal Migration covering the VDC level information. The operational definition used by this survey was a person enumerated in a VDC different from his/her VDC of birth within the country. This survey was conducted based on a stratified cluster sample of 600 locations. The data showed that the rate of internal life time migration was 22 per cent. Among the migrants, females were more (32.7 per cent) than males (12.1 per cent). The rate for urban area was one and half time higher (31.6 per cent) than that for the rural (21 per cent) one. The rates also differed 2 Thieme, S. and Wyss, S., 2005, Migration Patterns and Remittance Transfer in Nepal: A Case Study of Sainik Basti in Western Nepal, International Migration, Vol.43 (5). 3 Khatiwada, P.P., 2009, Conflict Induced Migration in Nepal (A Social Inclusion Perspective), A PhD Dissertation Submitted to the Faculty of Humanities and Social Sciences, Kirtipur: Tribhuvan University. 4 Central Department of Population Studies (CDPS), 1997, A Survey on Migration, Employment, and Birth, Death and Contraception (MEBDC Survey, Kathmandu: CDPS. 27

38 by gender. In urban areas, the rate was slightly over one quarter (26.4 per cent) for males whereas it was nearly two fifths (37.1 per cent) for females. A similar picture was of the rural areas too. The rate of migration for Terai was higher (26.8 per cent) and the Central Development Region (CDR) had the highest rate of migration (63.2 per cent). Table 4.1: Life-Time Migrants as Per Cent of Native Born Population Rural Urban Nepal Male Female Total Male Female Total Male Female Total Ecological Zones Mountain Hill Terai Total Development Regions FWDR MWDR WDR CDR EDR Total Source: MEBDC Survey, 1996 (CDPS, 1997) Table 4.2: Overall Migration Data Collected by NLSS, 2003/04 Per cent of Migrant Population Female Male 21.6 Per cent of migrants from rural areas (VDC) 81.5 Per cent of migrants from urban areas (municipality) 5.8 Per cent of migrants from other countries 12.7 Reasons for Migration -Family reason Easier life style Looking for job 6.8 Per cent of children away from home 4.8 Reason for Being Away from Home -For study For work 18.7 Source: NLSS data-2003 (CBS, 2004) 5 5 Central Bureau of Statistics, 2004, Nepal Living Standard Survey Report, Vol. 1, pp , (Accessed on 29 June 2008). 28

39 The Nepal Living Standard Survey (NLSS) Report 2003/04 had published a table on migration data in Nepal which claimed that about 37 per cent of the enumerated population aged 5 years and above were migrated from another VDC or municipality or from outside the country. Like the MEBDC (1996), this survey also showed that the rate of migration was higher for females (approx.50 per cent) than for males (approx.22 per cent). Most of the movements were from the rural areas (approx.81 per cent) as against from urban areas (approx.6 per cent) and from other countries (approx.13 per cent) (Table 4.2). The NIDS survey which also used a similar definition for the rate of migration as of MEBDC survey 1996 showed a rate of internal life time migration 7 being 28.2 per cent. Female life time migrants were more (41.1 per cent) than males (16.4 per cent). Both the MEBDC and NLSS work show this same result. By ecological zones, Terai has the highest internal life time migration rate (33.2 per cent) followed by Hill (24.8 per cent). By development region, Mid-western has the highest (32.2 per cent) followed by Western region (27.1 per cent). By place of residence, urban area has a higher (37.3 per cent) rate of internal life time migration than rural area (27.2 per cent). The rate is slightly higher in the urban areas like Kathmandu (10.7 per cent), Lalitpur (6.4 per cent), Bhaktapur (6.6 per cent), Surkhet (6.6 per cent), Rupandehi (6.1 per cent) than other municipalities like Ilam (4.5 per cent), Dhanusa (2.1 per cent), and Kailali (4.5 per cent). 4.3 Out-migration and In-migration Rates Census data collected so far have revealed that out-migration rates from Mountain and Hill to Terai are increasing. Whereas the out-migration rate for mountain in 1971 was 11.1 per cent, the in-migration rate for the same period was 2.2 per cent. It means during that period slightly more than two people out of 100 native born were the in-migrants in that region. This trend increased to 17.1 per cent from the same ecological zone in 2001 whereas the in-migration rate for the same period was 2.3 per cent. The out-migration from the hill is also increasing, although the rate shows a decreasing trend. The in-migration rate to Terai region was 77 per cent (in 2001). Although, the percentage points mentioned in Table 4.3 shows a decreasing in-migration rate to the Terai zone, the volume of migration to this area increased with respect to the increase in the volume of population. Whereas up to 1971, there were only 410,064 people counted as in-migrants, this number soared to 1,326,860 in Census data for out-migrants and in-migrants available in 2001 census shows that more females than males are the lifetime migrants and the main reason for this is marriage. 6 NIDS, 2009, Nepal Migrants Survey 2009, unpublished data sets. 7 That is the sum of the place of birth as same district different VDC (12.8 per cent) plus other district (15.4 per cent). 29

40 30 Table 4.3: Out-Migration and In-Migration Rates in Nepal Census Year and Zones Migration Types Out-migration Rate In-migration Rate 1971 Mountain 11.1 (49,657) 2.2 (9,698) Hill 86.6 (385,332) 5.7 (25,366) Terai 2.3 (10,139) 92.1 (410,064) 1981 Mountain 32.0 (297,086) 3.8 (35,619) Hill 64.0 (594,634) 18.3 (169,923) Terai 4.1(37,835) 77.9 (724,043) 1991 Mountain 16.1 (198,329) 3.0 (36,674) Hill 75.5 (927,891) 14.2 (173,968) Terai 8.3 (102,136) 82.9 (1,017,714) 2001 Nepal Mountain 17.1 (295,422) 2.3 (40,319) Hill 68.9 (1,190,930) 20.9 (360,171) Terai 14.0 (240,998) 76.8 (1,326,860) Male Mountain 16.8 (141,953) 1.7 (14,343) Hill 68.4 (578,335) 21.1 (178,334) Terai 14.8 (124,685) 77.2 (652,296) Female Mountain 17.4 (153,468) 2.9 (25,957) Hill 69.4 (612,589) 20.6 (181,843) Terai 13.2 (116,311) 76.4 (674,568) Source: Census data 2001, (CBS, 2003) Conclusion Internal migration in Nepal has implications in overall social, economic, cultural, political and geographic sectors. However, studies on internal migration in connection with these sectors are sparsely found. There has been a paradigm shift in defining migration. Migrant is not only a person leaving his/her place of residence for the purpose of study, trading, or involving in a job, but also a person displaced due to conflict, disaster or human trafficking and human smuggling. Policies and programmes to influence these diverse sectors of migration have not been shaped yet by any authority in Nepal. The mobility of women migrant workers into various sectors of market economy is growing dramatically. It has overshadowed the concept that the internal migration is pre- 8 Central Bureau of Statistics, 2003, Population Monograph of Nepal, Kathmandu: CBS, Vol. II.

41 dominant of women due to marriage. Further empirical research is needed to identify mainly the gender trend in migration. Population census is the only reliable source of migration statistics in Nepal. Unfortunately, it is also incomplete to feed data on overall migration dynamics. The periodic household surveys focus less on migration issues. Some migration surveys like MEBDC (1996), NLSS (2003/04) and NIDS (2009) have given some genuine information in the sector of migration. The data collected by these surveys can be comparable. All these surveys have made the minimum units of analyses as the VDCs/municipalities. On the other hand, despite being one of the reliable sources of migration information, the census reports have calculated data on migration up to district level only. There were 22 per cent internal life-time migrants in Nepal according to the MEBDC survey (1996). Among them, females were more (32.7 per cent) than males (12.1 per cent). NIDS (2009) has revealed the rate of internal life-time migration in Nepal is 28.2 per cent. Like MEBDC, this survey has also indicated a higher rate on female migration (41.1 per cent). The NLSS report of 2003/04 claimed that about 37 per cent of the enumerated population aged five years and above migrated from another VDC or municipality or from outside the country. Like the MEBDC Survey, this survey has also shown that the rate of migration was higher for females (50 per cent) than for males (22 per cent). 31

42 Chapter V: STUDENT MIGRATION Sadichhya Adhikari 5.1 Introduction: The Global Panorama The last few years have witnessed harrowing effects of economic meltdown. Not many sectors have been immune to its effect. Education, however, has managed to remain aloof so far and seems to be hardly affected. A number of students streaming for abroad studies speak this phenomenon loudly and boldly. People do not hesitate to spend their hardearned money on education even at times of recession. Perhaps, people believe it to be an integral part of success and a stair to economic elevation. Despite the fee-hike in college education, the number youths applying for higher education, whether in their own country or abroad, seems only to be increasing enormously. The United States of America was, and still remains, the most popular destination country for higher education. Out of the estimated 3 million students that migrated for education in the fiscal year 2008, 21 per cent (624,000) 1 enrolled in US colleges, and the number has been noted to have escalated since then. In fact, the recent Open Doors report released in November 2009 by the Institute of International Education (IIE) with the support from the US Department of State s Bureau of Educational and Cultural Affairs suggests that the number of international students at US universities and colleges increased by 8 per cent in the academic year 2008/9 to an aggregate of 671,616 students. 2 India remains the top sender of students to America, followed by China whose number is shooting up rapidly. South Korea comes third in this particular race and other East Asian countries such as Japan and Taiwan are not far behind. Canadian as well as Mexican students flock to the US in rather significant amounts, as do those from European nations like France, Germany, Turkey and even the UK. Another interesting flow is that from the Middle East nations Vietnam, Saudi Arabia, and others. 3 Overall, it can be indubitably said that students from all around the world possibly because America offers unparalleled opportunities for creativity, flexibility and cultural exchange, in the words of Allan E. Goodman, CEO and President of IIE are rushing to the United States of America to pursue higher education. 1 Web Source: Global Destinations for International Students at the Post-Secondary: ( iienetwork.org). 2 Web Source: Open Doors 2009 Report: Record Numbers of International Students in U.S. Higher Education, published on 16 November 2009 ( 3 Web Source: Open Doors 2009 Report: Record Numbers of International Students in U.S. Higher Education, published on 16 November 2009 ( 32

43 The United Kingdom comes second in the list of top destination countries for student migration. An approximate 13 per cent of the total 3 million students around the globe chose the UK for education. This number, however, is bound to have decreased in the later months of 2009 due of the introduction of the new point-based system for immigration, implemented from March-April onwards. A large number of people entered the UK under the guise of a student before, but actually were there to work. So the new system was designed to deter such fake students from applying and terrorists from entering the country. It has, unfortunately, turned out to be an inconvenience, instead, to international students, UK colleges and universities, and also to the British economy. 4 UK immigration officials working for the UK border agency have been noted to refuse visas for genuine students as well. As for their obstinacy, it would not come as a surprise if students forever turned their backs to the UK. 5 The UK Council for International Students (UKCIS) claims that between April and June 2009, some 35 per cent of all applications from Chinese students were rejected, along with 21 per cent from the US and 49 per cent from India. 6 The intention behind this new system had been nothing but good. Nonetheless, it has not been a success as far as many in the sector can tell. Students have increasingly been noted to apply for European education. The international students in the countries such as France and Germany cover about 8-9 per cent of the total Nepali migrant students and their number is only increasing. Education is cheap there, almost the same cost for both national and international students, and the prospect of an inexpensive education in a welcoming city is increasingly being seen as the ideal education nowadays. 7 In the global scale, Australia does not seem to fare so well. It hoards a few number of international students that is a mere seven per cent of all students despite wholehearted attempts to attract them. Canada and Japan, two budding nations in the field of student migration, have an estimated four per cent migration rate. In conclusion, the US remains the top destination for foreign college students, despite efforts by colleges in Australia, Canada, and elsewhere to attract them. 4 Web Source: Guardian: Britain losing out on tens of thousands of overseas students, says report. Published on 6 December 2009 ( 5 Ibid. 6 Web Source: Global Visas: UK visa rules for students deterring foreign recruits. Published on 21 July 2009 ( 7 Web Source: The Chronicle of Higher Education. Report Describes Threats to American Dominance in Attracting Foreign Students. Published on 1 April 2009 ( 33

44 5.2 Student Migration in Nepal: Trends and Patterns A walk through the streets of Kathmandu, and it is inevitable that one will see hoarding boards of Study abroad programmes in nearly every corner: study in Japan, the UK, the USA, Canada and Australia- the list of choices goes on, ad infinitum. There has been a massive blossoming of private agencies, consultancy centres, and language institutes in recent years. No doubt, the rate of migration for education has also increased significantly during the last decade, even more so because of the political instability in the country. Student migration has truly become a social phenomenon in Nepal; a trend and a norm. Nepali students are dispersed all over the world from neighbouring countries like India, Pakistan, China, and Bangladesh, to countries in the east like Japan, Korea, and Singapore, to those further away in Europe, such as Germany, Belgium, Denmark, France, Finland and Switzerland, and North America in the pursuit of education. In total, an aggregate of around 24,000 Nepalis are spread out in well over 55 countries worldwide, according to the Ministry of Education, Nepal. The data on the issuance of No Objection Letters, provided by the Ministry of Education for the fiscal year 2008/09, suggests that Australia remains the main country of migration for Nepali students. A number of circumstances will certainly derail/dwindle the rate of Nepali student migration to Australia in near future. The Australian Embassy has been relocated to Delhi and all documents have to be sent there. The news of incidences of racial discrimination against Indian students as well as, mistakenly, Nepali students, 8 is on rife. Similarly, the closure of many colleges has displaced thousands of students. Moreover, only a few financial institutions are now deemed acceptable to verify financial sources namely, Nabil and Nepal SBI Bank (effective from 30 September, 2009 onwards). The number can be said to have increased significantly with a sum of 10,121 students opting for the country as compared with the number 7,722 of the fiscal year 2007/08. Perhaps, the prospects of getting a good education and, more importantly, a permanent residency in Australia are good enough reasons that overshadow the unpleasantness. The UK comes second, as stated in the figures collected by the Ministry of Education its count climbing up to 6,627; a long way from the 2,844 of the previous year. However, upon the introduction of the new point based system, the number is believed to have reduced sharply. To get a UK visa, students from Nepal along with others, are required to show that they are capable of paying their fees 28 days before they apply and still have a minimum of 600 extra each month, have their finances under a bank account in their 8 Web Source: Nepali students in limbo, published on 17 July 2009 ( 34

45 own name, and have their exam results out before applying, among other things. 9 Agents recruiting students for UK colleges and universities claim that these requirements are too stringent and too time-consuming. Indeed, The Guardian estimates up to 20 per cent fewer foreign students will enrol at UK universities in the autumn of 2009, compared with what was expected. 10 Considerable damage to the reputation of UK higher education is to be expected, especially in the Indian subcontinent where the refusal rates are high. The Ministry of Education recorded the number of students applying for the US to be decreasing from 5,384 to a mere 2,934 in 2008/9. The data from the Open Doors report 2009, however, paints a different picture. It suggests that the number of students entering the US from Nepal are a bit less than 12,000, 11,581 to be precise up by 30 per cent than last year. 11 The influx rates to the US may rise with the beginning of Figure 5.1: No Objection Letters Approved from Ministry of Education, Nepal Source: Ministry of Education, Nepal, Fiscal Year 2008/09 9 Web Source: Guardian: International students may spurn UK because of new visa rules. Posted on 1 September 2009 ( 10 Web Source: UK Immigration: New Student Visa Rules Hit The Headlines, published on 11 September 2009 ( 11 Web Source: Open Doors 2009 Report: Record Numbers of International Students in U.S. Higher Education, published on 16 November 2009 ( 35

46 In the past, many students have prioritised America, the UK and Australia as their primary options. In the last few years, however, as education in those countries is increasingly proving to be difficult and expensive, youngsters are focusing on the less costly options. Countries such as Japan, Canada, and surprisingly, Cyprus, are progressively becoming more popular. In the context that the number of visa issued to Nepali students for this year in Japan is 805, Canada is 208, and Cyprus with an amazing 1,162, migration to these countries are really gaining momentum. 36

47 Chapter VI: MIGRATION BETWEEN NEPAL AND INDIA Dr. Jagannath Adhikari Migration between Nepal and India has been taking place since a long time ago due to various reasons. Even though it has great consequences in the lives of migrants of both countries, it is still undocumented and least understood. In fact, it is difficult to document this phenomenon because of its immensity and complexity. As a result, the volume of migration between these two countries is still largely unknown. Migration between these two countries has taken place without much restriction since the creation of these states. This migration may be considered as voluntary due to the open border between Nepal and India. Even though forced migration of various types has been a frequent occurrence, most notably the trafficking of women and children. As there are no formal requirements necessary to cross the border or to work in the destination for citizens of either country, irregular migration does not occur. Migration between Nepal and India has been guided by the Peace and Friendship Treaty signed between India and Nepal in 1950, which allows people of both countries to freely cross the border and find employment without any restrictions. Articles 6 and 7 of the Treaty grant national treatment to each other s nationals with regard to participation in industrial and economic development and to the grant of concessions and contracts relating to such development. 6.1 Migration from Nepal to India Nepalis have been migrating to India since the late 18 th century and this migration may be categorised into three types. The first group is Indians of Nepali origin which number some 7 million. In India, they have the rights and privileges of full-fledged Indian citizens. The second group includes those Nepalis who have been settled for a long time in India but do not have citizenship of India. They number about 1 million and are capable of protecting their interests. The third group is comprised of labourers who migrate seasonally or for longer stays in India. This group is the most destitute and is without support. There is no consistent estimation of the number of this population, but it is mostly agreed that they number approximately 2 to 3 million. 1 The other estimates 1 S. Thieme Social Networks and Migration, Far West Nepalese Labour Migrants in Delhi, Munster: LIT (Culture, Society and Environment; 7). 37

48 are 1.3 million 2 and 0.9 million. 3 A recent study conducted by NIDS 4 revealed that there are about 0.8 million Nepalis working in India. This did not include seasonal migrants working in India for less than six months. Various reports and newspapers articles also reveal that they are somewhere between 1.8 and 3 million. A report based on a study of Nepali migrants and their associations revealed that there are at least 3 million Nepalis working in various sectors in India. 5 This study of five villages in far west Nepal found that 70 per cent of households had at least one member working in India. Their study further revealed that there are 0.2 million Nepalis in Delhi and its vicinity, Surat-Badoda and Ahmadabad, West Bengal, north-east India, and south India. There are 0.1 million Nepalis in the regions of Punjab, Himachal Pradesh, Andhra Pradesh, Uttarchanchal, and Uttar Pradesh. The Nepali population was estimated to be 0.3 million in each of Mumbai (Kalyan and Vivandi) and Bihar. 6 The total in other places was estimated by these authors at 0.4 million. One common source of information about migration is the census reports (see Table 6.1). But it is clear that this census report does not give adequate and accurate information on migration. Of the total absentee population (proxy for foreign migration), about per cent had gone to live in India. Of those living in India, more than 80 per cent were male in various census periods. Another dimension of migration of Nepalis to India is trafficking of women and girls. The estimates of this trafficked population vary greatly. As many as 200,000 women from Nepal are said to be involved in sex work in India and it is estimated that every year 5,000-7,000 women are trafficked there. But there are also claims that estimate less than 25,000 Nepali women working in Indian brothels. 38 Table 6.1: Emigration (Absentee Population) from Nepal to India in Different Census Periods (As of Census Conducted in Nepal) Census Absentee Population Percentage on Total Absentee Male Female Living in India Population of the Country 1952/54 157, , , , Source: Kansakar 2003: Seddon, D. and Adhikari, J., 2003, Conflict and Food Security In Nepal-A Preliminary Analysis, Kathmandu: Rural Reconstruction Nepal. 3 M. Kollmaire, S. Manandhar, B. Subedi and S. Thieme New figures for old stories: Migration and remittances in Nepal, Migration Letters, 3(2): NIDS, 2009, Nepal Migrants Survey 2009, Kathmandu: NIDS (unpublished). 5 Bhattarai, T. and Adhikari, D., 2003, Nepali Workers in India: Bigger Number Lesser Income, Himal Khabarpatrika, 12(23) (15-29 March): Ibid. p Kansakar, V. B. S., 2003, International Migration and Citizenship in Nepal, Population Monograph of Nepal, Kathmandu: CBS.

49 Previously, most Nepalis were confined to the north east, where they went to work as labourers, marginal farmers and as gwala or dairymen and cattle grazers. The others were mainly concentrated in the adjacent bordering states of India. However, now they seem to have spread from the border area to other parts. In 1951, 70 per cent of Nepali migrants lived in bordering states but this had declined to 59.2 per cent by The early migration (18 th and 19 th century) from Nepal to India had also taken place due to push factors like oppressive land and labour policies, which caused hardships to many peasants. The migration trend from Nepal to India had increased from 1950s to 1970s as the wars between India, China and Pakistan demanded more army personnel for security reasons. The ethno-politics in India in the mid 1970s caused the decline of Nepal to India migration. 9 However, since the mid 1990s to mid 2000s, migration from Nepal to India increased again due to the conflict. Since the 1814 war with East India Company, Nepalis (Gorkhalis) also started to work in British-Indian Army. Those Nepalis (4,650 soldiers) who surrendered to Company s army following wars in Kumaon and Gharwal region were invited by their commanders to work in them. In 1816, the British were granted permission to recruit Nepalis in their armies in a treaty reached after the settlement of the war. There are also unconfirmed reports that Nepalis worked in the Afghan army then. When recruitment into the British army was formalised in 1816, three regiments were created which were named I, II and III Gorkha rifles. It is not known exactly how many Nepalis worked in the British-Indian army in the initial period. However, their number certainly grew significantly during the world wars. It is estimated that, in total, 243,000 Nepalis worked in the British army during World War I. Nepal suffered highest per capita death among the troops of all countries, even if they were not involved directly in the war. 10 We can now ascertain that Nepal sent more than 350,000 of its citizens to work in the British army during the World War II. When India became independent in 1947, it retained almost half of the Gorkha Army. 11 There are, at present, about 48,000 Nepalis serving in the Indian army and about 105,000 receiving pensions. The total pension they receive is around NRs 12 8 billion annually. 8 Kansakar, V. B. S., 1984, Indo-Nepal Migration: Problems and Prospects, Contribution to Nepalese Studies, 11(2): Kansakar, V. B. S., 1984, Indo-Nepal Migration: Problems and Prospects, Contribution to Nepalese Studies, 11(2): Kansakar, V. B. S., 1982, Emigration, Remittances and Rural Development, Kirtipur: CEDA/TU. 11 Adhikari, J., 1996, The Beginnings of Agrarian Change, A Case Study in Central Nepal, Kathmandu: TM Publication. 12 Exchange rate as per Nepal Rastra Bank: 1 USD = 73 NRs (approx.). 39

50 Migration from Nepal to India also takes place on a seasonal basis. This is more common in far west and mid west Nepal. Generally men leave in Bhadra (August), after the close of field work (planting rice or harvesting maize/planting millet). After two months or so, they return for the Dashain festival and/or to harvest paddy or millet (if they have these). They leave again in December/January and return in April/May, to sow maize. Those who managed to get good jobs often decide to migrate permanently along with their families. Earnings, and hence remittances, are dependent on the type of work and the person s physical strength. Portering pays well for a strong man and it is not necessary to wait until the end of the month to get paid. Those who have the ability to perform heavy portering work are expected to save about NRs 10,000 on average in a period of 3-4 months. The other types of work generally done by Nepalis in India are security works, domestic help, restaurant and hotel workers, manual work in factories and the like. In recent times, young Nepalis are increasingly employed in hotels. Some of them have also opened restaurants and mobile catering service. A few educated persons have started working in IT industries in cities like Bangalore and Delhi. 13 There is no study focused on remittances entering into Nepal from India. As many Nepalis work as causal labourers, it is also difficult to estimate their income and savings. The first estimate in this regard was made by Seddon, Adhikari and Gurung in The amount estimated in this study for the year 1997 ranged from NRs 6 billion (assuming 250,000 Nepali working in the public sector in India) to NRs 40 billion (assuming a million Nepalis work in India). Another source estimated that NRs 31 billion enters into Nepal from India. 15 Here, it was assumed that 2.4 million Nepalis work in India and of them 1.4 million send remittances at the rate of NRs 1,400 in a month. This would mean NRs 23 billion in a year. In addition, 48,000 Nepalis were found to have been working in the Indian army, and 105,000 were recipient of army pension. The income of these people totals NRs 8 billion in a year. The Nepal Living Standard Surveys (NLSS) in 1994/95 and 2003/04 provided information about the contribution of India to the total remittances entering Nepal. These surveys reveal a decline in the relative importance of India as a source of remittance. India s contribution to total remittances seems to have declined by about 10 per cent in an eight year period: from 32.9 per cent in 1995/96 to 23.2 per cent in 2003/ Adhikari, J. and Gurung, G., 2009, Migration, Security and Livelihoods-A Case of Migration between Nepal and India, Kathmandu: NIDS and NCCR North-South; See also, WFP and NDRI, 2008, Passage to India. Kathmandu: WFP and NDRI. 14 Seddon, D., Adhikari, J., and Gurung, G., 2001, The New Lahure, Foreign Labour Migration and Remittance Economy of Nepal, Kathmandu: NIDS. 15 Himal Khabarpatrika March 2003, pp

51 Graner and Seddon estimated that in remittances from India could be about NRs billion. 16 Another study reveals that remittances from India could be NRs 8 billion. 17 Nepal Rastra Bank had conducted a study in 2007 to estimate remittance entering Nepal from India. It estimated that about IC billion enter Nepal as remittances. It also estimates that, on average, a Nepali sends NRs 25,016 a year to Nepal. This remittance level for an individual is considered high. As this study was done in New Delhi, the income level could be high. The average value of remittance estimated by NLSS for a household participating in work in India was estimated at NRs 10,523 in 1995/96 and NRs 18,414 in 2003/04. Various studies reveal that one of main reasons for migration is to meet food deficits at household level, i.e., to complement the number of months that the local farm economy would meet the food requirements. 19 This is particularly so in case of seasonal and temporary migration to India which is a regular phenomenon in far and mid west Nepal. 6.2 Migration from India to Nepal Indian migration to Nepal dates back several centuries. The movement of people for religious reasons and due to wars and conflicts was common. This was also one of the causes of early migration of Indians to Nepal. Indians had also come to Nepal even before the unification of the country. The major flow of Indians into Nepal took place from the 11 th to 13 th centuries because Hindus fled the country as present-day India was over-taken by the Muslims. This migration seems to have changed the political, economic and social structure of Nepal. Hinduism and a hierarchical caste structure appeared in the society. When this value system slowly entered as a guiding principle at the state level, the major impact was seen in the social and religious structures of indigenous people, who were already settled in Nepal. Later on, Muslims also started to migrate to Nepal, especially for business purposes. Migration of Indians to Kathmandu had taken place primarily for trade. Even though entrepôt trade between Tibet and India via Kathmandu declined after the British opened new trade routes via Kalimpong (India), Indians still continued migrating to Kathmandu 16 Garner, E. and Seddon, D., 2004, Nepal s Remittance Economy: A Decade of Change 1996/97 to 2003/04 in Madan Kumar Dahal (ed.) Nepali Economy: towards Building a Strong Economic Nation-State, Kirtipur: Central Department of Economics, Tribhuvan University and New Hira Books Enterprises. pp Kollmaire, M., Manandhar, S., Subedi, B. and Thieme, S., 2006, New figures for old stories: Migration and remittances in Nepal, Migration Letters, 3 (2): Exchange rate as per Nepal Rastra Bank: 1 USD = 46 IC (approx.). 19 WFP and NDRI, 2008, Passage to India, Kathmandu: WFP and NDRI. Also see, Seddon, D., Adhikari, J. and Gurung, G., 2001, The New Lahures, Foreign Employment and Remittances Economy of Nepal, Kathmandu: NIDS. 41

52 for trade between Nepal and India. 20 The Indian trading class had business links with the trading community in Kathmandu was much before the British themselves tried to expand their business links with Nepal. 21 Generally Indians used to take two steps while migrating to Kathmandu. Firstly, they would establish trade links with Newar business people without migrating there. As the business and social ties grew, they would then physically migrate to Kathmandu, which would make it easy for them to adjust and adapt. For establishing contacts, it is also argued that Indians also moved to Terai first. The early Indian settlers were those who came to Nepal for agricultural production and timber collection in Terai region. This occurred mainly after the unification of the country (1769). The main reason to develop the settlements in Terai was to increase production and revenue for the government. Immigration of Indians into Nepal is one of the reasons for increased population pressure on land in Terai. This immigration along with internal migration from hill to Terai has led to faster rate of deforestation. For example, Karan and Hiroshii 22 reveal that there was 2.53 million hectors of forest in Terai in , which was reduced to 2.03 million hectors in The rate of deforestation in this period was 1.4 per cent per year (2.0 per cent in Terai and 1.2 per cent in Siwalik). The estimate of Zurick and Karan 23 on Terai forest in 1990 was about 1.62 million hectors. In 2000, forest area in Terai is estimated at 1.24 million hectors 24 according to ADB and ICIMOD. 25 This essentially means, the rate of deforestation from 1978 to 1990 was 1.7 per cent per year, and from 1990 to per cent per year. This is considerably a high deforestation rate. Due to the open border system and the similarity in socio-cultural features among the citizens of both countries, it is extremely difficult to estimate exactly the volume of Indians migration to Nepal. Moreover, Indians in Nepal may be categorised into various types. Like Nepali citizens, there are those who stay permanently and those who come seasonally for work. Various reports reveal that in 1981, there were 3.8 million Indians in Nepal, of which 2.4 million had obtained citizenship. 26 Chattopadyaya has also claimed 20 Upreti, B. C., 1999, Indians in Nepal with Special reference to Indian Migration to Kathmandu, Delhi: Kalinga Press. 21 Ibid. 22 Karan, P. P. and Hiroshii, I., 1994, Nepal: Development and Change in a Landlocked Himalayan Kingdom, Tokyo: Institute for the Study of Languages and Cultures of Asia and Africa, Tokyo University of Foreign Studies (Monumenta Serindica No. 25). 23 Zurick, D., and Karan, P. P., 1999, Himalaya: Life on the Edge of the World. Baltimore: The John Hopkins University Press. 24 If shrub area is added, total forest area in Terai in 2000 is 1.32 million. 25 ADB and ICIMOD, 2006, Environmental Assessment of Nepal: Emerging Issues and Challenges, Kathmandu: ADB and ICIMOD. 26 Chattopadyaya, H., 1966, Migration between India and Nepal: A Socio-cultural Study, Calcutta: Firma KLM. See also Upreti, B. C., 1999, Indians in Nepal-With Special Reference to Indian Migration to Kathmandu, Delhi: Kalinga Press. 42

53 that there could be as many as 5 million Indians in Nepal if one includes the seasonal and floating or transitory Indian population. 27 Most of these people live in Terai, followed by Kathmandu. Town areas like Pokhara and other market centres also contain a sizeable number of skilled workers and traders from India. Census reports are one of the sources of information regarding the migration of Indians to Nepal as shown in Table 6.2. This table shows that of the total number of immigrants in Nepal (foreign-born population living in Nepal at the time of the survey), more than 95 per cent were from India. In 2001, there were 583,599 India-born people living in Nepal. The above analysis shows that 589,050 Nepali people lived in India at the time of the census. Therefore, there seems to be balance in the flow of people across the boundary. Most (about 90 per cent) of the Indian-born population living in Nepal stayed in Terai, the plain area adjoining India. Considering the time series data, there seems to be quite a jump in size of the Indian immigrants in Nepal in the 1980s and 1990s when the Indian population almost doubled in a decade during the 1980s. Table 6.2: India-Born Population Living in Nepal (Percentages in Brackets) Country India-born Population 324,159 (96.0) 322,718 (95.6) 222,278 (95.0) 418,982 (95.0) 583,599 (96.0) Total (foreign-born) 337, ,448 23, , ,092 Source: Population Census Reports (1961, 1971, 1981, 1991 and 2001) 28 The most contrasting migration pattern between Nepal and India as revealed from the census surveys is that a large number of Nepalis who go to India are male. The percentage of women in the Nepali absentee population living in India never crossed the 17 per cent mark in all censuses. In the 2001 census, only 12 per cent of Nepali emigrants were women. However, it is just the reverse in the case of Indian immigrants to Nepal. Roughly 70 per cent of Indian immigrants living in Nepal are women. Marriage of Indian women to Nepali male has led to greater immigration of Indian women to Nepal. Similarly, Indian immigrants, especially male, in Nepal dominate the industrial work force in Nepal. Until the 1950, all industrial workers in Nepal were Indian. 29 Even though their proportion in the total industrial work force has been declining, this domination still persists in some industries. 27 Chattopadyaya, H., 1966, Migration between India and Nepal: A Socio-cultural Study, Calcutta: Firma KLM. 28 Central Bureau of Statistics (CBS), 1961, 1971, 1981, 1991 and 2001, Population Census of Nepal, Kathmandu: CBS. 29 NCP/TFM (National Commission on Population/Task Force on Migration), 2040 B.S. Internal and International Migration in Nepal Main Report, Kathmandu: NCP (in Nepali). 43

54 6.3 Conclusion Even though migration between Nepal and India has been taking place for a long time, it still remains undocumented. So, the exact volume of migration flow between them can only be roughly estimated. Under the Peace and Friendship Treaty made in 1950, citizens of both nations are given free access across the border and the permission to find employment without restrictions. The demand for Nepali workers in India increased after India s war with China and Pakistan during the 1960s, and the number, which had been dwindling during the 1980s, surged again in the latter part of 1990s and early 2000s because of the political turmoils in Nepal. On the other hand, Indian migration to Nepal dates back several centuries as well. Movement of people from India, during the 11 th to 13 th century, was largely due to religious reasons and wars. Later on, migration of Indians to Kathmandu and other cities in Nepal took place primarily for trade. Nepalis who migrate to India may be placed in three categories: Indians of Nepali originwhich consist of approximately 7 million people, those settled in India but without Indian citizenship, around 1 million and labourers that migrate seasonally (which usually occurs during the month of August) or for a long term, with no consistent estimation, but mostly agreed to be around 2 million. Another type of migration, women and girl trafficking, is estimated to be around 200,000 with around 6,000 women trafficked to India every year. Similarly, Indians in Nepal may also be categorised into various types. Like Nepali citizens, there are those who stay permanently and those who come seasonally for work. A 2001 survey claims that there were 583,599 India-born people living in Nepal and that 589,050 Nepali people lived in India at the time of the census establishing a balance of sorts in the flow of people across the boundary. Most (about 90 per cent) of the Indianborn population living in Nepal stayed in Terai, the plain area adjoining India. In the 1980s and 1990s, Indian population in Nepal almost doubled in a decade. There is no proper estimate of remittance flow into Nepal from India. For the year 2007, a study conducted by Nepal Rastra Bank estimates remittance entering Nepal from India to be about NRs 23 billion. 44

55 Chapter VII: GLOBAL FINANCIAL CRISIS AND NEPALI FOREIGN LABOUR MIGRATION Dr. Jagannath Adhikari The current global financial crisis has affected not only the economies in developed countries, but also those in the developing countries. Indeed, Nepali migrant workers go for employment mostly in these developing countries. Therefore, it is expected that this recession has also affected the foreign labour migration from Nepal. How far this has affected the migration is not much understood. So, this chapter makes an attempt to analyse the impact. The present financial recession is unique in its type because it started from the developed economies. Even though there are disagreements on the impacts of remittances, various studies 1 point to two basic impacts: a sharper decline in labour out-migration rate and somewhat less rapid decline in remittance flow. The recession is likely to slow new deployments of foreign workers to higher wage countries, both because employers request fewer visas. It is also because some governments halted the recruitment of new foreign workers (South Korea and Malaysia announced recruitment stops in January 2009). As a result, in many countries, the stock of migrants may remain same or decline. There is also no certainty as to whether legal migrants who are unemployed will remain in destination countries or return home. There is even more uncertainty about unauthorised migrants, who may have limited access to social safety nets abroad but face debts and joblessness at home. 2 In case of remittances, it is expected that firstly its growth rate will decline and then its absolute volume will decline. Ratha and others have forecasted that there will be a decline in remittance flow in the world by 7.3 per cent. 3 In case of South Asia, remittance flow has not been declining in absolute amount, but its growth rate has declined significantly. For example, they estimate that remittances grew by 58 per cent in and by 19 per cent in Similar situation is also seen in other South Asian countries. 1 Ratha, D., Mohapatra, S. and Silwal, A., 2009, Outlook for Remittance Flows , Remittances expected to fall by 7-10 per cent in 2009, Migration and Development Brief 10, World Bank, 13 July IOM, 2009, Impact of Global Financial Crisis on Migration (IOM website). 2 Martin, P., 2009, The Recession and Migration: Alternative Scenario, Working Paper No. 13, IMI (International Migration Institute), University of Oxford. 3 Ratha, D., Mohapatra, S. and Silwal, A., 2009, Outlook for Remittance Flows , Remittances expected to fall by 7-10 per cent in 2009, Migration and Development Brief 10, World Bank, 13 July

56 Most of the labour migrants are engaged in employment sectors like manufacturing, hotels and restaurants, health care, education, domestic service, and agriculture. Some of these sectors construction, manufacturing, hotels, and restaurants have been seriously affected by the crisis with migrant workers experiencing the major shocks. In Malaysia, Japan, and the Republic of Korea, this severe impact is in manufacturing which has the largest job losses. The reduction in job opportunities and growing unemployment could bring policies that restrict labour flows. Despite the crisis, no mass return of migrant workers is seen in Nepal until now. But in some countries, outflow of migrant labour has slowed down. There could also be a possibility of migrant labourers accepting poorer working conditions for the sake of survival. Their various rights could have also been curtailed. In similar lines, IOM reports that the following could be the areas where negative impacts could be seen. These are also the areas where upon further negative impacts are likely to take place. 4 Job losses, especially in construction, manufacturing, finance, services, retail, and tourism, and thus affecting migrants in these sectors. The companies and employers seek to make savings. It will result to possible reductions in wages and poorer conditions in the workplace. Additionally, cuts in social services provision, impacting on migrants' quality of life and health, can be witnessed. The risk of discrimination and xenophobia as migrants are mistakenly perceived as taking the jobs of local workers particularly in low-skilled sectors of the labour market. The return of unemployed migrants to countries of origin where they are also likely to face inferior economic conditions. A decline in remittance flows to developing countries as migrants lose their jobs, thus increasing poverty and exacerbating development gaps. Adoption of more restrictive immigration policies to protect the local labour market and in response to a demand for fewer foreign workers (e.g. the UK, Australia and Spain). A reduction in labour migration flows as potential migrants choose to stay home and see out the crisis there. An increase in irregular migration and the strengthening of the informal labour market as unemployed migrants in destination countries seek to work without authorisation and as opportunities for regular labour migration decrease. 4 IOM, 2009, Impact of Global Financial Crisis on Migration (IOM website). 46

57 The crisis is expected to impact differently on male and female migrant workers especially in affected sectors of the economy dominated by one gender (e.g. construction in which male migrant workers predominate). The main countries where Nepali migrant labourers go for work are India, Malaysia, Qatar and Saudi Arabia. These countries, except India, are also hit hard by this recession. Malaysia, Qatar and Saudi Arabia are particularly affected in their construction projects. Malaysia, which absorbs (except India) a large number of Nepali migrants, has also been suffering from global economic crisis. As a result, it has adopted stringent measures. Some of them were aimed at migrant labourers. In 2008, 45 Nepali workers were returned from Malaysia, obviously due to the recession. After that no large scale return of migrants from Malaysia has been noticed due to the very reason. In early 2009, Malaysian government stopped recruitment of foreign workers citing the global financial crisis. It urged the Nepali Government suspend work permission for Nepali jobseekers to Malaysia until the further notice on 22 January Nepalese Embassy made the request to resume the recruitment of Nepalis workers following a meeting between Nepali ambassador to Malaysia, and officials of Malaysian Labor Department. Later on, the government pulled out suspension order. 5 In the same week, a Malaysian firm called Evergreen Heavy Industrial Corporation laid off 73 Nepali workers citing financial problem. In the Middle East, a common destination for Nepali labourers, economic growth rate has been declined significantly since Global financial crisis has hit the construction sector in Qatar, which has been known as the most lucrative destination for Nepali migrant workers in the Middle East. Major construction companies in Qatar have halted new projects and that is hitting all Nepali workers directly. 6 Despite this decline, there is no significant reduction in the flow of Nepali migrants there. India is another country where a large number of Nepali migrants work. It is difficult to examine how far the economic crisis has impacted these migrants. But in general India did well even in this crisis period and there is no noticeable adverse impact on the migration of Nepali to India. 7.1 Impact on Foreign Labour Migration From the available data it seems that foreign labour migration has declined in the last three years, which is mainly because of global recession. Hopefully, the adverse impact is comparatively less than what was initially expected. The data reveal that there is a slight decline in out-migration rate in 2008/09 (i.e. until mid June 2009). This is, to a considerable extent, linked with recession. It is shown in Figure 7.1. The flow of foreign migrant labourers has not declined in the remaining months of Ghimire, P., 2009, Government suspends work permit for Malaysia, The Kathmandu Post, 23 January. 6 Biz Correspondent, Global financial crisis hits Qatar, 1 March

58 Figure 7.1: Flow of Foreign Labour Migrants from Nepal in Different Years Source: Department of Foreign Employment ( The rate of growth of foreign labour migrants is shown in Figure 7.2. This shows that in absolute number, foreign labour migration fluctuated between and Yet, the change was very slight. But from mid June 2008 to mid June 2009, it dropped steeply by 11.7 per cent. Figure 7.2: Growth Rate in Flow of Foreign Labour Migrants from Nepal Source: Department of Foreign Employment ( 7 7 Data obtained were analysed for the change in growth rate of flow of foreign migrants. 48

59 The hardest hit countries seem to be Malaysia and UAE. There is slight decline in Qatar also. Malaysian government stopped taking foreign migrant workers from January 2009 in all sectors except in hospitality because of the financial crisis, so as to give opportunities to its own citizens. It is also expected to double the levy imposed on foreign workers. Nepali workers still continue to get some work there because they are employed mainly in security sector. But in May 2009, the number of workers going to Malaysia was 80 per cent less as compared to the same period in Similarly, this number to Saudi Arabia and Qatar was less by almost half in May 2009 as compared to the same period in Figure 7.3 depicts the volume of Nepali migrant workers to main destination countries in the last three fiscal years. These countries are mainly Malaysia and the Middle East countries. The Figure shows that there is drastic and consistent decline in number of people moving to Malaysia in and Similarly, there is slight decline in UAE and Qatar in , but there was an increase in The flow of labourers to Saudi Arabia has, in fact, increased in all these years. Figure 7.3: Volume of Nepali Migrants to Main Destination Countries in the Last Three Fiscal Years Source: Department of Foreign Employment ( A clear pattern is seen in the migration of male and female workers to foreign countries. Interestingly, the number of women going abroad for work has been skyrocketing since In contrary, the case in males could not take that pace. For example, there were 204,143 male migrants in , which increased to 237,747 in , but declined 49