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telelogo4.jpg (7056 bytes)   Kathmandu,Wednesday, 13 October 2004

N A T I O N A L


Unemployment harsh in Nepal

Kamala Sarup

Armed conflict have contributed to heightened unemployment in Nepal. The effects of the depressed economy have been devastating. High inflation and interest rates continue to stifle investment. And business confidence is at an all-time low. Often it is the people who are economically depressed, acting out of despair and hopelessness, who commit crimes and perpetrate political violence.

Corruption, poor governance and political instability are some of the causes to turned the youths into frustration, who was in support of political parties with lots of hope for their better future. This also encouraged them to engage in conflict as the best way to sole the entire problem of the country.

The continued deterioration of the status of youth in Nepal, who face growing levels of unemployment, poverty, armed conflict, epidemic diseases, functional illiteracy and substance abuse - among other social and economic challenges. Unemployment has severely damaging effects on young people. They suffer low self-esteem, exclusion from mainstream society and impoverishment. There are thausends unemployed youth in Kathmandu alone. In Pokhara, Biratnagar, theunemployment rate has reached epidemic proportions, while in Jhapa and in Kathmandu some qualified young men and women go out looking out for jobs every year.

According to figures, there are 1.5 million youths in the country who are totally unemployed. This is a terrible problem. As the state fails to chalk out proper strategies to provide jobs, the problem is gaining urgency day by day. In fact, the government is creating a breeding ground for terrorists by not being able to rope in these unemployed and vulnerable section of youths.

Since the last nine years, the Maoist are increasingly recruiting poor and vulnerable youths and exploiting them for their selfish purposes. Among the various factors Maoists have exploited to advance their cause is the rampant unemployment in the country. There is a possibility that insurgents are luring unemployed youths so government needs to urgently address this problem before it gets out of hand.

The three main issues keeping the Maoists war on the boil are unemployment, underdevelopment and corruption. Due to political uncertainty, hardly any socio-economic reforms have been undertaken though the government has plans.

Urban youths have a very difficult time breaking into professional jobs, including the business and NGO sectors, so many choose unemployment or join the Maoists. The economic divide between the urban and rural areas of Nepal is enormous. Rural people still live the same way they have for hundreds of years and maintain traditional attitudes.

The price of war in Nepal has been horrific. While the near catastrophic destruction in all sectors of society in Nepal, shows how a society can collapse under the weight of long-term conflict caused to a large degree by poverty and unemployment. Entire villages and even some larger rural towns have been completely destroyed. Many workplaces are damaged in the fighting or cannot open for lack of electricity and water. While some shops are beginning to reopen, most stay shut, their owners scared of further looting.

It is true that due to unemployment and a lack of opportunities, many youths have joined militancy. On the other hand, forced by the harsh state of poverty coupled with worsening security situation, many youth in Nepal leaving for foreign countries. The consequences of unemployment are enormously dangerous for the society and the country as a whole.

In fact, unemployment rates are generally higher for the more educated than those who are less educated, and unemployment is mainly an urban phenomenon. underemployment is widespread among youth in the agricultural sectors too. Despite their potential, they only work during the planting and harvesting season.

With no government in districts, and limited aid arriving in Kathmandu, most families are facing a future replete with fear and uncertainty. Terrorism and violence will never be wiped out without food for hungry, jobs for jobless, protection for deprived and justice for victimised.

Rural poverty, rising unemployment and rampant corruption are seen as some of the contributing factors to the insurgency. Even, how falling educational standards along with high incidence of unemployment have prepared the breeding grounds of conflict. Even if the ongoing Maoist insurgency would come to an end, the existing social disparity and sources of conflict would like to ignite more conflicts in the future.

Corruption, today endemic in Nepal and the country’s pressing problems. The violence must end forever so government’s priority will be to improve the economic situation and control corruption.

Since 1996 Nepal has been a country of horror, and of sorrow. War is not a solution to the political problem. The economy will suffer a lot, if we can not restore peace through dialogues. The government could not eliminate these social evils. As the investments in productive sectors are low, population growth is high and the private sector is not flourishing satisfactory, the problem of unemployment has further been compounded.

Worse, the economic slowdown has resulted in the closing down of several industries and has rendered thousands more jobless. The carpet and garment sectors are also laying off employees. So are other service sectors like hotels and airlines, to name a few. Our education system does not teach that all jobs are equal.

Once the elections are over, politicians simply try and forget the tall promises they made. The government says it is trying its best to curb unemployment, but the results are yet to be seen. Solving the unemployment problem is not possible without the active support of the government.

Government owned Domestic and Small Industries Office has been operating some small-scale employment activities, which is not so satisfied and achievable. Long term and short-term policy need to formulate to enhance youth involvement in the nation building process. It could explore several youth opportunities in employment-oriented activities.

Along with the worrisome unemployment picture for young people, the violence which will compound the "ballooning unemployment" problem and is threatening to undermine Nepal. Additionally, youth unemployment, under-age soldiering, urban violence among young people, and the levels of HIV transmission in this age group are destabilizing societies and governments and prompting programs and spending, whether it yields return in the narrow economic sense or not.

A recent study on "Socio-economic condition of Nepali migrants in Delhi and NCR" commissioned by the South Asia Study Centre, Jawahar Lal Nehru University, said a significant number of poor and unskilled workers from Nepal have migrated to India and are working as security guards or restaurant workers. In addition, the number of youths is higher in the rural areas, in small-scale-farming households, and in low cost areas where the incidence of poverty is the highest.

Youth headed households and youth labour are also phenomena indicative of youth in distress. There are no reliable statistics on the actual number of Nepali migrants working in India but The study further indicated that the migrant Nepalis contribute to it’s economy. Even, there have been instances where young Nepali girls and boys have been lured by agents to come to India for jobs but they end up in circuses and prostitution with hardly any money to escape.

Price situation saw moderate rise, revenue collection, foreign aid and developmental spending fell. Political instability, public expenditure management, and weak monitoring should be addressed to attract foreign aid to carry out the development activities in Nepal.

Also with sound and safe environment for investment, we have access to the two fastest growing economies of the world, India and China. If we can create tax advantages or better rate of return on their Investments, even a micro percentage of money we can attract from them can turn our economy. For all this to happen, we need a society where law and order is respected and maintained not only at the government level but also at the grass root level. Nepal needs more aid, fairer terms of trade, and meaningful steps to eradicate extreme poverty. But little progress can be achieved in the development of Nepal until and unless conflict is resolved.

Governments have to ensure that once the youth come out of the education system, they are employable. Political parties are making grandiose promises of jobs for all but the spiraling unemployment levels show no sign of abating and neither do citizens’ discontent. Unless there is a positive change in the economics of the country, the problem of unemployment could further aggravate.Economic disparity, social injustice and rampant corruption made Nepalese people more frustrated.

Governments should establish guidelines for credit allocation. More rural financial institutions are needed to be mobilized. Special funds should be designated for loans, sometimes at subsidized interest rates, to small and medium enterprises, including cooperatives, family businesses, and private and public firms. Problems of corruption and nepotism can be overcome by making the mechanisms for allocation transparent and open to Nepalese citizens.

Even our education system makes individuals dependent on job rather than making them problem solvers or enterprising. Similarly, the current budget has put special emphasis on mitigating the unemployment problem by conducting employment and self-employment programmes. However, the success of the programme depends largely on the joint efforts of the government, NGOs and private sector. Tourism could provide jobs to hundreds of thousands of youths if it takes off.

Greater unemployment and poverty will put severe pressure on government’s budgetary targets given the fragile financial positions of the countries.Unless solving youth problems as major commands of the development, the conflict groups will frequently motivate youth to be involved in the conflict and couch them carrying guns is an ultimate way for development.

(Kamala Sarup can be reached at kamalasarup@gmail.com )


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