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COVER STORY |
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COVER STORY |
FOREIGN
EMPLOYMENT Like it or not, foreign
employment is the only burgeoning industry in Nepal today. With tourism and
export-oriented industries having taken a deep plunge, thanks to the domestic situation of
insecurity, remittances by hundreds of thousands of workers abroad have become the main
foreign exchange earner. As the country seems unable to provide adequate job opportunities
to its youths well into the foreseeable future, the growth of this sector is likely to be
fueled by the urge to migrate both in search of employment as well as in order to escape
the cycle of violence back home. The only thing the government could do at this point is
to make necessary arrangements to regulate the sector and minimize the cases of fraud that
are equally rising By SANJAYA DHAKAL Khim Kharel is in his late twenties. He
went to Doha, the capital of the Gulf emirate of Qatar, and worked in a restaurant there
for four long years before returning home this September. "I went there on the
recommendation and help from my relative. Though the money that I earned there was not
very high, it was much more than what I would have earned here," said Kharel who
hails from the district of Gulmi in western Nepal.
According to Kharel, there are
thousands of Nepalese youths in Doha alone. "There are many friends from my village
also. All of us live and work together and give support to each other in times of
need," he said. Krishna Tamang, a lad from Sindhupalchowk,
worked in Bahrain for two years as a driver. And now his younger brother Sambhu Tamang is
in the process of going to Malaysia. Thousands of youths like Kharel and Tamang
are currently toiling hard in countries as far afield as Saudi and Malaysia, supporting
the national economy. "There is no doubt it is the foreign remittance alone that is
preventing the economy from total collapse," said an economist. The daily flights of Gulf Air that connects
Abu Dhabi (UAE) with Kathmandu and the 11-flights-a-week of Qatar Airways, which connects
Doha with Kathmandu, also speak a lot about the rising attraction of Gulf destinations
among Nepalese workers. Most of these flights are packed with workers seeking employment
there. Everyday hundreds of lads covered in
garlands and with a twinkle in their eyes queue in the Tribhuvan International Airport
(TIA) to leave their native-land in search of jobs abroad. The crowded premises of various
manpower agencies and department of labor also speak volumes on how swift this sector is
growing. This is the first time in the history of
Nepal that so many of its people have been fleeing abroad for jobs. As the rural
hinterlands are infested with the insurgency, an alarming number of youths have fled.
Those who can afford or those who have some connections, prefer to go to the Gulf or
Malaysia and those who do not, go to India.
There are two ways through which
Nepalese go for overseas employment. By applying at the registered manpower agencies or on
their own. After the second amendment of the Foreign Employment Act in 2054, people can
now also go abroad for employment on their own personal effort. Currently the government has recognized 16
countries as overseas employment destinations. They include Saudi Arabia, Kuwait, Qatar,
Oman, UAE, Bahrain, Hong Kong, South Korea, Singapore, Brunei, Malaysia, Saipan, Iraq,
Macau, Israel, the Maldives and Kosovo. Latvia and Seychelles are two other countries
which the government recognized temporarily at times. The government has also given
recognition to 290 manpower agencies for supplying laborers. Supporting The Economy In fact, foreign remittance has had a high
effect on the Nepalese economy for many, many years. Even during the Rana regime, the
practice of working as 'Lahure' - recruits in the British Army - was rampant. After India
gained independence, the practice continued. Nepalese youths continue to be recruited in
the Indian army. Of late, Nepalese people have started
flocking to Gulf countries where there is huge demand for third-country workers. Thanks to
the deteriorating law-and-order situation and unavailability of jobs back home, the number
of workers going abroad has risen sharply. Apart from a few hundred thousand workers
in the Gulf countries, Malaysia and other overseas destinations, there are many more
Nepalese working in several parts of India. Collectively, these workers pump in billions
of rupees every year to their native country. Even conservative estimates from the Labor
Department, which does not include income from people working in India or those who prefer
to remit their earnings through unofficial channels, put the annual remittance over Rs.14
billion. Even at their peak, the carpet and garment industries barely fetched these
amounts. The exact amount of foreign remittance
received by the country is sketchy. "First of all, there is no record of how many
people have gone to foreign countries for work. Because of open border and easy
accessibility, it is almost impossible to keep track of people going to India for work.
India, by far, is the largest market for Nepalese workers. From army recruits to
gate-keepers and from restaurant-workers to porters, hundreds of thousands of Nepalese
work in India," said the economist. According to recent figures by the
Department of Labor and Employment Promotion (DoLEP), the total number of workers who have
gone overseas from 2049/50 till 2059/60 (Ashwin) is 259,044. The preferred destinations
include Saudi Arabia (87,298), Malaysia (75,331), Qatar (56,364), UAE (26,994), South
Korea (3,172) and Kuwait (2,976). But this number includes only those who have gone to
recognized overseas employment destinations through official channels. The number of
people who go to these places through personal efforts or unofficial channels is much
higher, agrees Lalit Bahadur Thapa, director-general of the DoLEP. The workers who go to
India are also not included in this figure.
Apart from the Gulf, South East Asian
countries and India, thousands of people have also migrated to Europe, Australia and North
America. The people in the second category of migrants mainly belong to the well-educated
section. The exact contribution of foreign
remittance to the Nepalese economy is still unclear. According to a study by David Seddon
for the British government's Department For International Development, the value of
foreign remittance from migrant laborers could be as high as Rs.69 billion - which is
roughly equivalent to 25 percent of official gross domestic product (GDP). But the
2000/2001 estimates by the Nepal Rastra bank (NRB) puts the figure at Rs.12.66 billion.
But it does not take into account the amount of remittance that is transmitted via
unofficial channels. Although its exact contribution is
nebulous, everybody agrees that it is deep and wide and has supported the national economy
particularly the rural one from where most migrant laborers hail from. Not All Rosy One reason why Kharel decided to return to
Nepal after working for four years in Doha was the constant harassment he had to undergo
there. "It's never simple. They always try to give you a raw deal whether by giving
jobs other than the one mentioned in the initial contract or by giving fewer facilities.
It's all hardship for Nepalese to be working in the fierce climate," he said. Though foreign employment sector seems
attractive due to its economic potential, there are many evils attached to it. Cases of
fraud and hardships, even physical abuse, are regularly reported in the media. According to the statistics by the
department, there have been 96 deaths of Nepalese workers abroad till now - Saudi Arabia
(3), Qatar (39) and Malaysia (4). Due to reports of physical and sexual abuse, the
department has banned from sending women to work in the Gulf countries. Even in other
countries the department bans sending women in jobs of domestic worker. The cases of fraud by unscrupulous manpower
agencies too abound. "In order to check these irregularities we have launched massive
public awareness campaign and have taken action against anyone found guilty," said
Thapa. According to him, the department has lodged 145 cases in district courts including
137 that are against individual fraudsters. It has also revoked the registration of 43
manpower agencies and has black-listed 13 others. Many others also feel that exporting our
manpower is a negative thing. "Instead of creating job opportunities within the
country, we are sending our manpower abroad. This will have a long term negative impact on
our society and culture," said Dr. Rishikeshab Raj Regmi, a senior sociologist. Kabindra Rimal, central secretary of the
trade union GEFONT, also says that the government needs to strictly regulate this sector.
"Although it is natural in an era of globalization for labor to migrate to places
where there is more capital, the state has to protect the interest of its workers. They
can provide training to workers and make them aware about where to contact in case they
have some problems overseas," he said. The GEFONT has established support group for
Nepalese workers in Hong Kong, Japan and South Korea. "We are also trying to set up
such groups elsewhere to help Nepalese workers there," said Rimal. Binod Bhattarai, former member secretary of
the Employment Promotion Commission (EPC), believes that the growth of foreign employment
sector is positive. "I am definite that until and unless the state is able to provide
job opportunities to its citizens, there is no other option. I see very bleak possibility
for our country to provide enough jobs to its youths in near future, as well. In such a
situation, we have to promote and encourage foreign employment sector. There are is a huge
demand for foreign workers abroad, so what's wrong in tapping that demand?" At a time when the country is reeling from
severe economic and political crises, the state's prospect for creating job opportunities
to all its citizens appears far-fetched. As such, there seems no alternative to promoting
foreign employment in the immediate future. The idea should be to regulate and make
this sector more viable. Providing skills to workers and protecting their interest though
its diplomatic missions abroad should be the order of the day. ‘Till Opportunities Are Created Here, Foreign Employment Will Remain A Viable Option’ — Lalit Bahadur Thapa
Lalit Bahadur Thapa
is the director-general of the Department of Labor and Employment Promotion. The
department monitors and facilitates the foreign employment sector. He spoke to SANJAYA
DHAKAL on various issues surrounding foreign employment/migrant labor. Excerpts: How do you see the growth trend of
foreign employment? In fiscal year 2056/57, the number of
laborers who went overseas (excluding India) for employment was 54,000 to 55,000. This
number rose to 104,000 in the fiscal year 2057/58. This growth was mainly due to sudden
increase in the demand for laborers from Malaysia. Besides, the labor demand from Gulf
countries has also not declined. Does the number you mentioned above
also include those laborers who have gone there through unofficial channels? No, this number only includes those people
who have gone through registered manpower supplying companies. Those who go on their own
are not included. What is the volume of those who go
through unofficial or personal channels? I am not in a position to provide exact
numbers of such migrant laborers. But I can say that their number is much higher than
those who go through official channels. Which are the main countries where
Nepalese laborers go? Apart from India, it is the Gulf countries
like Saudi Arabia, Qatar, UAE and so on. Lately, the number of migrant laborers to
Malaysia has been rising high. Do you think the number of youths
seeking foreign employment has risen drastically due to the deteriorating law-and-order
situation in rural areas? I don't think so. In fact, their number has
risen due to the rise in the demand for laborers from countries like Malaysia. Recently,
there was even demand from USA for Nepalese laborers. How does the government take the
foreign employment sector? The government believes that till there is
creation of enough employment opportunities within the country, foreign employment will be
a viable option. It is also the leading foreign exchange generating sector at present.
Therefore, the government has looked positively towards this sector and is intent on
regulating it. There have been reports of fraud
and deception of naive people by manpower companies as well as foreign employers. What is
the government doing to check it? There are two kinds of fraud. One that is
carried out by registered manpower agencies, which is very negligible. The other one
happens to people who go through unofficial and personal channels. It is easy to take
action if the fraud is done by licensed agencies but very difficult in the case of
unregistered swindlers. It is very imperative that such frauds be exposed and taken action
against. For example, many innocent persons fall into trap when somebody hoodwinks them by
promising that they would send them to certain countries. The government has adopted
two-pronged strategy to deal with such frauds. One is to launch massive media and public
awareness campaign so that people are aware and another is to take action against
fraudsters. Till now the government has already lodged 145 such fraud cases in the
district court — out of which 8 are against companies and 137 against various
persons. The department has already revoked registration of 43 companies and 13 are
currently black-listed. The department has also been able to get back 24 million rupees
and has refunded it to victims. What is the contribution of foreign
remittance to the national economy? The contribution is immense. Although the
department does not keep records of such remittance, it is at least 14 billion rupees
annually. It is also said that most Nepalese
laborers are unskilled and that they could earn many times more if they were skilled. What
do you say? Well, we have found that the demand for
unskilled laborers are quite high. Almost 80 percent of the demand is for unskilled
workers. Anyway, the government agrees that it would be appropriate if we could send
skilled laborers. The department itself operates 16 training centers where people are
taught skills like plumbing, house-wiring, carpentry etc. There are many such institutions
in the private sector. As far as possible, the government There have also been reports of
providing loan money to prospective migrant laborer. How is this work progressing? Well, the budget this year had also
mentioned providing Rs100,000 loan to 100,000 people seeking to go overseas for
employment. The loan would be provided to persons who are unable to afford it themselves.
The focal body for facilitating this procedure is the Employment promotion Commission. ‘Only This Sector Is Taking Care Of the Economy Right Now’ — Binod Bhattarai
Binod Bhattarai is
the immediate past member-secretary of the employment Promotion Commission (EPC).
Bhattarai was crucial in introducing the concept of providing loans to prospective migrant
laborers. The EPC currently is in the final stage of providing such loans. He spoke to
SANJAYA DHAKAL on issues of migrant labor. Excerpts: How do you see the growth of the
foreign employment sector? It is very positive. Though some may argue
otherwise, I am definite that until and unless the state is able to provide job
opportunities to its citizens, there is no other option. I see very bleak possibility for
our country to provide enough jobs to its youths in near future, as well. In such a
situation, we have to promote and encourage foreign employment sector. There is a huge
demand for foreign workers abroad, so what's wrong in tapping that demand. In fact,
foreign remittance is the only sector that is making our national economy work at present. What are the areas that need to be
taken care of to promote this sector? At present 99.5 percent of workers we are
sending are unskilled whereas there are many demands for skilled laborers as well. If we
are able to provide a basic 3 months training to an unskilled person, he will be able to
get a job that fetches him double the current salary and gets him more secure job, too. In
fact, one skilled laborer equals to 5 unskilled one. Imagine how much more money they will
be earning if all our laborers were skilled. The government has to provide training to
them. At present, there is a mismatch in the government's training procedure. Although it
allocates one billion rupees annually for training purpose, the utilization is grossly
mismanaged due to incoherent policies and lack of coordination. The EPC had announced the policy of
providing loan to needy people who want to go for foreign employment. What is the status
of that program? Before I resigned from my post about a
month ago, we were on the final stages of implementing this program. The role of the
government, department of labor, Nepal Rastra Bank, other banks, EPC and manpower agencies
had been defined and the Finance Ministry had already given final directives. It had also
given 10 million rupees worth guarantee fund. Among the commercial banks, the Bank of
Kathmandu had been identified as the lead bank. Other commercial banks have pledged that
they would invest at least one billion rupees in the sector. Because of helpful leadership
from the governor Dr. Tilak Rawal, the NRB had already recognized this program as the
deprived sector facilitating the Credit Guarantee Corporation to pledge up to 75 percent
guarantee. The only hitch that was still remaining was the collateral for loan the
commercial banks are asking for. The banks have already said that they would release loans
if the employing companies give in writing that they would cut certain percentage of
employees' salary and disburse it to them to cover loan and interest payment in
installment basis. Things were moving positively in this area, too. The EPC had already
listed 18 manpower companies for facilitating this program. I am hopeful that the new EPC
management will be able to pursue it and realize it soon. |
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