Migration and Remittances during the Global Financial Crisis and Beyond

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JEEVAN RAJ SHARMA

The unique open border between the two counties, formalized by the treaty of 1950, allows citizens of both countries to cross the border without having to produce official documents, and the treaty offers equal treatment of both citizens. Over the years the proportion of migration of Nepal workers to India has decreased from 80 percent in 2001 to 41 percent in 2009, mainly because of the emergence of other migrant destinations following the second wave of work migration from Nepal. The second wave of migration started in the mid-1980s, accelerated in the 1990s, and dramatically increased in the mid-2000s, when Nepalese continued to migrate to work in India and began to migrate to new destinations, mainly the Gulf States and Malaysia. The opening of new markets for Nepalese laborers in these destinations and the decentralization of passport issuance policy in Nepal contributed to this new wave of migration, which has become an extremely important part of the Nepalese economy and culture. Excluding India, the latest official data show that Malaysia (32.04 percent), Qatar (28.71 percent), Saudi Arabia (19.81 percent), and the United Arab Emirates (12.68 percent) are popular destinations in the Gulf States (Government of Nepal 2010). About 5–7 percent are estimated to have migrated to Australia, European nations, Japan, the Republic of Korea, the United Kingdom, the United States, and other countries with globally strong economies; these are the desired destinations of Nepalese migrants seeking to earn foreign currency overseas. Both men and women have been migrating from Nepal for 200 years, although the nature and pattern of migration have changed. In the past, women’s migration was largely limited to short-distance mobility and/or was mostly accompanied by family members. Since the 1990s, Nepalese women have begun to migrate on their own to various international destinations albeit now without gender discrimination, risks, and control on their mobility. These migrations have created new transnational links, connecting very distant countries, cultures, and economies. This is a significant period in the history of work migration because it has led to large-scale migration and remittance flow, making policy makers recognize for the first time the remittance-dependent economy of Nepal. This period also marks the age of rising expectations among young Nepalese to migrate and participate in a world of modernity, consumption of commodities, and global interconnectedness (Sharma 2008). This is also the period when increasing numbers of Nepalese began to use labor recruitment agencies to facilitate their migration out of Nepal, especially beyond the traditional destinations in India. The establishment and the expansion of migrant recruitment agencies also significantly contributed to the rapid increase in migration to the Gulf States and Malaysia. The number of recruitment agencies increased from 103 in 1998 to 630 in 2009. This period also saw a sharp increase in migration of men and women in search of further educational opportunities along with the growth of international education consultancies (IECs). About 1,000 IECs are operating in Nepal, which provide assistance to potential students who want to study and work abroad. Ideas about and practices of migration for education dominate the aspiration of the young middle class in major


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