Showing posts with label Nepal. Show all posts
Showing posts with label Nepal. Show all posts

Thursday, 6 August 2015

Deaths of Nepalese Migrant Workers Abroad

By: Bikal Dhungel

Over 2 million Nepalese reside in foreign countries for employment purposes and this number is expected to rise further. The recent earthquake has pushed many into financial ruin. The total destruction and the reconstruction cost is expected to be around 30% of the GDP. International migration is the only lifeline for many to earn bread in order to survive. In this situation, the duty of the government is to facilitate this process by better policies for example by lowering the cost of migration. The statistical data shows that the poorest 20% of Nepalese receive only 8% of the remittance flow whereas the richest 40% receive 60%. The data also shows that the richest 20% do not reside in the Gulf rather in Western Europe, North America, Australia or Japan. Hence, helping the poorest to migrate is vital for poverty reduction. 
The average cost of migration to the Gulf is 80k excluding personal expenses. Reducing this cost is important to enable the poor to migrate. Majority of migrant workers are employed in construction sites in the Gulf. Construction works are relatively dangerous. Consequently, several dead bodies return to Nepal in daily basis. The figure below summarizes the total deaths in given years.


The figure shows that majority of death occurs in Malaysia, Saudi Arabia and Qatar. However, all deaths are not work related. There are suicide, death through road traffic accidents, murder and so on.

It is also important to compare the deaths in foreign countries with the ones in country. The figure below, published by the University of Washington Panel of health data collection, shows the number of years lost in a year. 


Based on this figure, 5323,000 years are lost every year in Nepal. Considering a life expectancy of 70 years, slightly more than 76,000 people die due to above mentioned reason. This is equivalent to 0.271% of the Nepalese population of 28 million. Based on 2014 figure, about 2 million Nepalese are working abroad. Calculating 0.271% of 2 million gives a total number of 5420 (0.271/100 x 2000000). This means, with the death rate of Nepal, 5420 people should have dead per year but the rate is around 3400, which is 0.17%. 

However, this number is not a good comparison as there are disease like Preterm birth complications are also included which can not be the case with migrant workers. Also, migrants are generally healthier than the average population as they require a healthy body to perform physical tasks. Still, several research has shown that migrants often die of diseases that they were not aware of. The medical check up system in Nepal to acquire a foreign employment permit is not efficient and the authorities giving the medical certificate without any check up is business as usual. 

The message from this article is simple: while we blame foreign countries for the deaths of migrant workers, we often ignore the higher number of deaths at home. Of course it is necessary to ensure a safe working conditions but these are often the things we as migrant senders cannot influence. What we can do is to ensure that medical check ups are performed well and the migrant is aware of any health issue he or she is facing and from the government level, it is necessary to pressure the receiving government to enact safety measures. One death is too many and everything should be done to avoid it but we should never transfer the blame to others while not fulfilling our duties. Economically, migrant death means huge burden to the country. Suppose an only bread winner of a family dies in Gulf. His family and children are likely to be pushed into poverty trap because they might have invested heavily for the migrant's trip and other costs. So, several people will be pushed to poverty due to one death. A recommendation for the government is also to initiate an insurance scheme so that the migrant family should not suffer with economical consequences. This is equally valid for the death within Nepal. 

Sunday, 5 July 2015

Policies to develop Nepal: A very brief summary

By: Bikal Dhungel

First there should be a political will to develop. Policy makers must want a prosperous nation. Then create a political foundation, which means ensuring political and macroeconomic stability and creating inclusive institutions that safeguard rule of the game. Why industrial revolution took place in England and not in Russia or South Africa or elsewhere is because of the Glorious Revolution of 1688 that installed inclusive institutions, created a political foundation which in turn gave incentives to people, as a result of which great minds like James Watt could launch their innovation that had enormous spill-over effects in the economy. Reform the education sector, import ideas and best practices from abroad but check for its feasibility in local culture before integrating it to the curriculum. The East Asian economic success could be attributed to its world class education system in the initial stage of growth. Social security is vital. Recognize who are real poor and guarantee the basic education and healthcare for them and their children. Don’t say you cannot afford, you can. Germany was much poorer than Nepal in terms of purchasing power parity when it introduced social security system. If you fall short of money, then save in security expenses and unnecessary benefits for the politicians. Liberalize the economy but not text book liberalisation but be strategic. Protect the industries and help them grow where you think there is a future. However, as soon as you recognize that they are not progressing, pull out the fund. For hi-tech sector, liberalize, guarantee tax free imports of technological goods. Liberalize financial sector and expand credit availability especially for the poor and small scale entrepreneurs however, create a separate institution to monitor financial institution because undisciplined financial institution can ruin the nation. See financial crisis of 2007/2008. You don’t need roads to every corner of the nation. Focus on cost-effectiveness. Incentivize rural dwellers to immigrate to urban areas and be prepared for that, which means design an intelligent city, green and sustainable. Otherwise, there will be slums everywhere. Reform the “sarbajanik kharid yin”, the current system is crap, it is impeding growth. Reform the “Tender” system. Don’t give the project to lowest bid. Advanced nations don’t give to the lowest bid. You should not be transparent in this matter. Ensure a high class public service. When a citizen should spend 5 days to get a job done in any public authority, you have a serious problem. Guarantee property rights, provide physical security and end all forms of discrimination on ethnic, sexual or religious ground. Once you think on these issues, growth will follow but remember that there are dozens of steps and they do not take place overnight. State should be in a position to enforce law. Justice system and central banking should remain without political influence and teach your citizen not to be blind followers of their history and culture. Culture that do not suit with modern scientific way of life based on humanity and international solidarity, your education system needs correction that teaches it. Finally, respect work, be selfless, praise creativity and hard work, and most importantly end nepotism. Imagine that the son of a good football player always gets a place in national team based on his father's performance and not the person who plays better. This is the same when capable people are barred from a particular job but incapable ones rule.