Project Sambaad -Between Rhetoric and Reality: An Evidence-Based Conversation on the State of Nepal's Labor Migration
PODS by PEIMay 03, 2024x
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00:53:20

Project Sambaad -Between Rhetoric and Reality: An Evidence-Based Conversation on the State of Nepal's Labor Migration

Despite the inflow of remittance that keeps the country afloat, migration is considered a net loss for Nepal. To move beyond this persistent rhetoric of loss, Project Sambaad brought together migration scholars Amina Maharjan, a Senior Specialist at ICIMOD, and Slesh Shrestha, a former economics Professor at the National University of Singapore, for an evidence-based conversation on the state of Nepal’s labor migration. The conversation was moderated by Sadikshya Bhattarai, research coordinator at Social Science Baha/CESLAM. 

Amina and Slesh highlighted the economic benefits of migration, emphasizing the return of skilled workers with valuable experience. The conversation noted that Nepal's competitive advantage lies in supplying cheap labor, which can be optimized through stronger government-to-government relationships to improve work contracts. They evaluated recent local government efforts to halt migration and addressed the debate on remittance usage. 

argued against local governments' efforts to halt migration, suggesting instead programs for skill development and support for returned migrants to start businesses. They also addressed the debate on remittance usage, highlighting investments in education as productive. 

Both speakers criticized media narratives for perpetuating negative views of migration, emphasizing its transformative potential for individuals and the economy. They also discussed challenges in mapping migration patterns due to social relations crossing borders. The discussion concluded with engaging interactions between the speakers and the audience.

If you found the conversation insightful and crave more lively interaction from the audience, hop over to Policy Entrepreneurs on ⁠⁠YouTube⁠⁠ for the complete live broadcast.

To sound out your thoughts and reflections join the conversation on LinkedIn, Instagram, and Twitter, all @projectsambaad.


⁠⁠https://projectsambaad.info/



[00:00:00] Welcome to Project Sambad.

[00:00:06] Project Sambad is a collaborative platform that promotes in-depth conversations that critically

[00:00:10] examine Nepali society and its policy making space.

[00:00:14] Through Project Sambad, PEI and other like-minded organizations seek to explore broad impactful

[00:00:20] questions that contribute to a wider dialogue on the politics and development of Nepal

[00:00:26] and the South Asia region.

[00:00:28] In just two days, we had six immersive and interactive panels on relevant contemporary

[00:00:33] topics from development, migration to business.

[00:00:36] Sambad comes to life when it reaches a wider audience and that's why we're sharing live

[00:00:41] recordings of the conversations.

[00:00:44] In today's release, we have guest speakers Sleish Shrestha and Amina Mohardzan with host

[00:00:49] Sadik Shahbhadrae in a Sambad on Between Rhetoric and Reality, an evidence-based

[00:00:54] conversation on the state of Nepal's labor migration.

[00:00:58] We hope you enjoy the conversation.

[00:01:03] I'm Sadik Shahbhadrae and I currently work as a research coordinator at the Center for

[00:01:09] the Study of Labor and Mobility at Social Science Bahaya in Kathmandu.

[00:01:14] And I have been working in the field of research, like I have been engaged in research

[00:01:20] on migration since the last five years.

[00:01:23] And today's panel discussion, as you may already know from the title as well, is on

[00:01:29] Between Rhetoric and Reality, an evidence-based conversation on the state of Nepal's labor

[00:01:35] migration.

[00:01:38] In the first session as well, we had migration come up as a very important part of the

[00:01:43] development narratives of Nepal.

[00:01:45] And I feel in this panel discussion, we want to delve more into details on different

[00:01:51] dimensions of migration phenomena in Nepal.

[00:01:55] And I hope we can cover some of the important topics within the 45 minutes that we have

[00:02:02] in the beginning for a discussion with our panelists.

[00:02:07] So to talk about the panel, we will be focusing more on the migration, or particularly

[00:02:14] the international labor migration from Nepal.

[00:02:19] We already know migration is very complex and multifaceted.

[00:02:24] In Nepal, we have internal migration.

[00:02:26] We have people migrating across the border to India and China for work and study.

[00:02:31] We have those who are after the 1980s, an increasing number are also migrating to other countries

[00:02:38] in the Middle East, in US, in the Europe.

[00:02:43] But today our conversation will be more focused on international labor migration to

[00:02:48] these Middle Eastern countries, Malaysia as well as to the European countries.

[00:02:55] Before going into our conversation, I would like to take a moment and request our

[00:03:01] panelists, Dr. Amina Morrison and Dr. Silesh Resta, to take a small moment and

[00:03:06] introduce themselves.

[00:03:07] Amina, can you please start?

[00:03:10] Thank you.

[00:03:11] Thank you, Sir.

[00:03:12] Very happy to be here.

[00:03:16] I'm so happy that this is a dialogue and I'm so glad to be here to have a dialogue with

[00:03:20] all of you.

[00:03:21] I'm Amina, I'm Amina Morrison and I work as a senior livelihood and migration specialist

[00:03:27] at ECMODE, which stands for International Center for Integrated Mountain Development.

[00:03:31] But my recent say it has never remained just a work for me.

[00:03:35] I'm deeply passionate about human mobility migration.

[00:03:40] You feel I'm a by training, I'm an agricultural economist, agricultural sector

[00:03:44] my karma rathay and by accident I ended up in migration.

[00:03:49] Kinamanda conflict time, I was trying to understand how conflict is impacting

[00:03:53] gender roles.

[00:03:55] And when we, I was doing this workshops, everybody was talking about migration

[00:04:00] and I had absolutely no idea about it.

[00:04:02] Then I thought what is this?

[00:04:04] Try to look into it.

[00:04:05] There is no literature.

[00:04:06] Nothing blank.

[00:04:08] And that's when I thought if I do my PSD this is a topic that I'm going to do.

[00:04:12] And ever since from agriculture I've shifted more to migration and as I said

[00:04:16] it's not a job.

[00:04:17] It's, I'm very passionate about anything related to human mobility migration.

[00:04:22] That's from my side.

[00:04:25] Hi all, my name is Slesha Nanshresta.

[00:04:28] I was previously based in Singapore as assistant professor at the Department

[00:04:33] of Economics in National University of Singapore.

[00:04:36] But now I'm temporarily based in Nepal at least for the next six months.

[00:04:40] My background is economics, in particular labor economics.

[00:04:43] So I study inefficiencies in labor markets and part of that is understanding

[00:04:49] global labor markets in the context of migration and mobility of labor

[00:04:52] across national boundaries.

[00:04:57] Yeah, I'll keep it short so we can start the conversation.

[00:04:59] Thank you so much Amina.

[00:05:03] Talking about migration, recently or you can say the report that was published in

[00:05:09] 2020 to the World Migrants Report it says like there are 281 million international

[00:05:14] migrants and among them almost an estimated 60% are labor migrants.

[00:05:19] And if you look at the data from Nepal as well, like last fiscal year more than

[00:05:23] 700,000 Nepali took labor from it from the government to go abroad for work.

[00:05:29] And the Nepal census which was recently published last year,

[00:05:33] it shows there were 22 lakhs Nepali abroad at the time of their survey.

[00:05:38] So this also shows a labor migration has become a very important part

[00:05:42] of in the context of Nepal.

[00:05:46] So Sleshi I have this question like how does Nepal experience regarding

[00:05:51] labor migration conforms or fits into this larger global migration trend?

[00:05:57] Yeah, I mean the thing is first of all like international migration is not a new

[00:06:02] or recent phenomena.

[00:06:04] I mean you can look at starting from this mass migration from Europe to the

[00:06:08] new world including extreme form of forced migration in the form of

[00:06:12] slavery right in the 1400s and 1500s as well as the debate surrounding

[00:06:18] such migration was also equally heated and contentious right?

[00:06:22] For example you can think about the Chinese Exclusion Act of 1982 where

[00:06:27] basically the US ban all Chinese migration into the US.

[00:06:32] And more importantly the economic sort of push and pull factors that drives

[00:06:37] this human mobility across space hasn't changed also, right?

[00:06:43] So and like if you can take an example of slavery itself,

[00:06:50] like it was purely driven by this need for immense demand of quote unquote

[00:06:55] low-skilled cheap labor to work in sugarcane and cotton plantation.

[00:07:00] The Chinese migration was driven to work during the expansion of railways

[00:07:05] to the west, right?

[00:07:06] So the developed countries have always had the need to import

[00:07:13] cheap labor to meet their labor needs.

[00:07:19] But they had previously also faced economic and political costs of

[00:07:24] assimilating these migrants as well as their families into their society, right?

[00:07:29] And often leading to conflicts with migrants, sorry natives, right?

[00:07:33] Between migrants and natives.

[00:07:35] So in that context they had imposed these barriers for

[00:07:41] labor mobility in particular, right?

[00:07:43] Although if you look at empirical evidence in terms of how much does

[00:07:49] immigration into a country affects native workers wages is kind of mixed.

[00:07:53] And it mostly depends on context.

[00:07:57] Although the rationale for why it would negatively affect native

[00:08:01] is based on sound economic fundamentals, right?

[00:08:05] So that has led to this developed country imposing strict barriers,

[00:08:09] often at huge economic cost to their own GDP as well as global GDP, right?

[00:08:15] So there are a lot of back of the envelope estimates of if you remove

[00:08:20] instantly all the barriers that exist today without changing anything else in

[00:08:25] the world, these estimates of how much improvement you'd see in global GDP

[00:08:31] is immense from 50% to as much as 150%, right?

[00:08:36] And those numbers translate into contextualize those numbers.

[00:08:41] It's basically getting rid of all world poverty that exists in the world today, right?

[00:08:46] So the question is what has changed, right?

[00:08:50] What is different today than in the past where migration was mostly

[00:08:56] permanent with assimilation is the nature of migration, right?

[00:09:00] It's mostly temporary migration that we see today where workers and

[00:09:05] individuals from countries like Nepal move to developed countries, right?

[00:09:08] And part of the reason for that is the shift in the developed countries,

[00:09:14] governments migration policy itself where they are relying more and

[00:09:18] more on temporary migration programs and

[00:09:22] often through government to government agreements, right?

[00:09:25] And the restrictions that these temporary programs impose

[00:09:30] allows these governments to basically reduce their cost of assimilating migrants

[00:09:35] because they cannot have long term assimilation, families don't move with them.

[00:09:39] But also limit the competition migrants have against the natives, right?

[00:09:44] So in that context it's easier for

[00:09:46] developed country governments to sell these programs to their own natives.

[00:09:50] And hence you see this shift in these policies translate into

[00:09:56] global data in terms of how people are moving across the region, right?

[00:10:01] Especially out of developing countries.

[00:10:03] And Nepal is just one of many countries that sort of participates in this phenomena,

[00:10:09] right?

[00:10:09] And it is not just that these programs benefit developed countries.

[00:10:14] But these programs are often today looked as sort of a triple win.

[00:10:19] It's where basically the migrants, the sending country,

[00:10:23] as well as the receiving country all benefit, right?

[00:10:26] And there are some programs that have been rigorously evaluated,

[00:10:32] including smaller temporary migration programs in New Zealand and few others.

[00:10:37] And the results show that the returns on investment on these programs

[00:10:42] far outpaces any investment that has been made in development, right?

[00:10:47] Through aid or through national government.

[00:10:49] So what that translate to is you see increasing number of

[00:10:54] developing country governments facilitating migration as a very

[00:11:00] strategic sort of developing strategy, right?

[00:11:03] And Nepal is not sort of unique or pioneer in this aspect, right?

[00:11:10] So if you look at the government of Philippines establish its overseas

[00:11:15] migration program like in 1974.

[00:11:19] So does Bangladesh has a what's called Bureau of Manpower Employment Training

[00:11:25] since 1976, right?

[00:11:28] Specifically designed to help workers migrate as a development plan.

[00:11:36] And looking forward, the fact that there are huge wage gaps that still exist

[00:11:45] between different countries in particular between North and South.

[00:11:49] As well as this increasing demand for low skill service sector workers, right?

[00:11:55] Partly due to this diverging trend between youth and old age population

[00:12:00] between developing and developed countries.

[00:12:02] Also partly it's simply a catch up of labor moving where previously

[00:12:09] the globalization that existed post-war World War II era was globalization

[00:12:14] except for migration of labor, right?

[00:12:17] So what you see today is basically labor catching up to how capital have been

[00:12:23] moving for the last 30, 40 years, right?

[00:12:26] So viewed from that angle at least economists and in my field people do

[00:12:31] believe that if anything the demand for low skill labor in particular, right?

[00:12:39] Through these temporary work program channels,

[00:12:43] if anything is going to rise even further.

[00:12:46] Thank you, Slesi.

[00:12:47] Like you mentioned, this migration is not a one time phenomenon.

[00:12:52] It's going to continue as long as there is a global demand for workers or low

[00:12:57] skill workers and Nepal and these demands will be fulfilled by a country like Nepal.

[00:13:02] But if you look at the political rhetoric that surrounds migration in Nepal,

[00:13:08] you see them describe migration as a failure of state.

[00:13:13] And migration, if you look it appears prominently in all the political manifestos

[00:13:19] where they are talking about the inability of the government to generate

[00:13:23] employment within the country.

[00:13:26] So I want to come back to Aminazi about this.

[00:13:29] Like what do you think is influencing this current political rhetoric

[00:13:34] of migration as a failure of state?

[00:13:37] And what senses have you seen?

[00:13:39] Like has there been a sense in this political rhetoric if you look back

[00:13:43] or decade or 15 years back?

[00:13:46] Thank you.

[00:13:48] I think when we are thinking of development, the definition of development itself,

[00:13:53] in a way it has remained static and this is where Slesi's point comes.

[00:13:59] If you look at the economic model, to change why,

[00:14:02] like the country specific one to the global license of a bird because

[00:14:06] one may be the game with the market case and because has to be

[00:14:09] after the go ma after the summer to geographic boundary is to set up

[00:14:14] some of the market and it's with all of us.

[00:14:17] So it's not only political, you know,

[00:14:21] level policy level, political level.

[00:14:25] Even general public map.

[00:14:27] I mean, to talk about the business,

[00:14:30] a sufficient economic and employment opportunities on a part

[00:14:34] of the novel car and the body but the table is only your failure

[00:14:39] of the state to create money.

[00:14:41] Contradiction.

[00:14:42] It is a development like the geographic boundary definition.

[00:14:47] But already in 80s you have foreign employment at the

[00:14:51] but it's a simultaneously so we have been living in this

[00:14:54] dual contradiction.

[00:14:55] It's very interesting that about the decade back about

[00:14:59] the department for foreign employment,

[00:15:02] just command it.

[00:15:03] They have a joint secretary.

[00:15:06] Secretary.

[00:15:07] I'm like, you know, it's a very invest where I was.

[00:15:12] That was the take.

[00:15:14] And I said, do you really believe that?

[00:15:17] And my money.

[00:15:18] I'm not a person who is mandated to look into foreign employment.

[00:15:24] Actually doesn't think that this is an issue.

[00:15:27] But evidence.

[00:15:27] This is where I think evidence based conversation becomes important.

[00:15:31] Evidence.

[00:15:32] In migration, Nepal, century is old.

[00:15:35] I don't know where the mindset started.

[00:15:38] I think it's a lot to do with the mindset, the thought process.

[00:15:48] Globalization, goods and services globalize.

[00:15:53] But when it comes to labor resources,

[00:15:56] globalize migration is a debated topic.

[00:16:01] And it is everywhere in Nepal.

[00:16:05] So I think these are some of the factors.

[00:16:08] I have often met people.

[00:16:13] They wish if people don't go there.

[00:16:22] And they have to work with low skill.

[00:16:26] The whole concept is work.

[00:16:30] And it's not even a respect for work.

[00:16:33] So I think that has acted another burden in our mind

[00:16:37] to not consider migration as part of development pathway.

[00:16:41] I would say we are living in this contradiction.

[00:16:46] We have seen the COVID-19 pandemic.

[00:16:50] But we can't recognize it.

[00:16:54] And in this, I believe is where we are losing out.

[00:16:57] Huge is labor, reality.

[00:17:01] What is the reality?

[00:17:02] 64% of the households are dependent on

[00:17:06] receiving remittances.

[00:17:08] We have seen the reality.

[00:17:11] The way development is done,

[00:17:13] we have to use productive use of remittance.

[00:17:16] And we have to do everything with migrants.

[00:17:19] In Malaysia, it's a contractual.

[00:17:23] Migration cycle normally ends by the time.

[00:17:26] It's been 40-45 years.

[00:17:29] And then it's different.

[00:17:32] How can you be safe?

[00:17:35] How do you make best use of the remittance?

[00:17:38] Because of this contradictory thought process.

[00:17:41] I call it mental block.

[00:17:44] Mental block is a way to accept that

[00:17:47] migration can be a path to development.

[00:17:50] We still think migration as a failure.

[00:17:56] But there are gradual shifts.

[00:17:59] That I see now over the last one and a half decades.

[00:18:02] Even political parties have started

[00:18:06] a safe and orderly migration.

[00:18:09] And it has to do with global dialogue.

[00:18:13] It was such a struggle to get migration included in SDGs.

[00:18:19] The goal is to target the irony.

[00:18:22] It was a huge struggle.

[00:18:24] But that paved the pathway for safe, orderly migration.

[00:18:28] And I think that also helped the government

[00:18:30] and policy makers to start thinking,

[00:18:33] which I believe is a positive pathway.

[00:18:37] And there are other things.

[00:18:39] As a media group, migration and failure

[00:18:42] are very common.

[00:18:44] What I think is that really path to development.

[00:18:48] We have been asked about that.

[00:18:51] But my thoughts, and this is where I love this dialogue,

[00:18:55] is that we have to start recognizing this reality.

[00:18:59] The reality is that how can we do it?

[00:19:02] How can we do it as a catalyst for development?

[00:19:05] That dialogue has been made.

[00:19:07] I think it will be more constructive.

[00:19:09] And also to reduce this compulsion to migrate.

[00:19:13] That's what I think.

[00:19:15] Man's life, economy and other reasons

[00:19:17] are to remove compulsion from our job.

[00:19:20] Thank you.

[00:19:22] Like Amin, as he said,

[00:19:24] if you look at the policies as well,

[00:19:27] we have the Foreign Employment Act

[00:19:30] and also different migration policies as well.

[00:19:33] In recent time, how do you think

[00:19:37] the policies have shifted in terms of migration in Nepal?

[00:19:42] How is the government looking at migration?

[00:19:46] Is this for me?

[00:19:47] Yes.

[00:19:48] Okay.

[00:19:50] I mean, just to caveat,

[00:19:52] I'm not the expert in Nepal migration.

[00:19:54] So many of you here might know more than I do.

[00:19:57] So I welcome your input as well.

[00:20:00] But what I can say is,

[00:20:02] like I was mentioning,

[00:20:04] Nepal is not unique in this environment.

[00:20:07] It's basically trying to follow the template

[00:20:09] that was set by other countries that have come before them.

[00:20:12] Right?

[00:20:13] So that makes some of the challenges easier as well.

[00:20:17] But on the other hand,

[00:20:19] there are certain unique aspects of Nepal

[00:20:21] that needs to be incorporated in the policy as well.

[00:20:24] Besides the political side,

[00:20:27] what I do see, you know,

[00:20:29] Ministry of Labor including the foreign,

[00:20:33] I guess now it's foreign...

[00:20:35] Department of Foreign Employment Board.

[00:20:37] No, no, foreign employment board.

[00:20:38] It used to be foreign employment promotion board.

[00:20:41] Hence the politics in that.

[00:20:43] They are basically have...

[00:20:45] So they have three areas that they tend to focus on

[00:20:48] as with any other countries,

[00:20:50] which is policies targeted pre-migration,

[00:20:52] policies during migration and policies

[00:20:55] for returning migrants as well.

[00:20:57] Right?

[00:20:58] Because most of the migrant workers

[00:21:01] are coming back to Nepal because of the nature

[00:21:03] of the contract under which they migrate.

[00:21:06] So in terms of pre-migration,

[00:21:09] obviously you hear a lot about, you know,

[00:21:11] regularization of manpower agencies,

[00:21:15] price quotas on how much they can charge

[00:21:19] and all that as well.

[00:21:20] But also part of that policy package

[00:21:23] includes orientation for migrant workers

[00:21:26] in terms of informing them about their rights

[00:21:29] in their countries as well as some of the work

[00:21:32] you and your organization have been also doing

[00:21:35] at Mushrik and all in western Nepal

[00:21:37] where you try to sort of connect aspirant migrants

[00:21:43] to people who are already abroad

[00:21:46] because most of the migration happens through networks

[00:21:49] and research everywhere over the world

[00:21:52] shows that networks do matter in terms of the quality

[00:21:55] of migration and how much you earn.

[00:21:57] So...

[00:21:58] And these are the aspects that the government of Nepal

[00:22:01] is actively engaging, right?

[00:22:03] Including signing law of government-to-government agreements

[00:22:06] and that's like a horse race as well

[00:22:09] because each country wants to sign agreements

[00:22:11] with different countries.

[00:22:12] So Nepal is basically competing with countries

[00:22:15] like Bangladesh, Philippines, Indonesia, Sri Lanka,

[00:22:19] India, Pakistan to get these contracts, right?

[00:22:23] So think about where I was based in Singapore,

[00:22:26] has a huge migrant population

[00:22:28] including law of low-skilled migrants

[00:22:30] but not a single one is Nepali

[00:22:32] partly because Nepal could not get access

[00:22:34] to that labour market whereas India, Bangladesh

[00:22:37] managed to get government-to-government agreement with Singapore.

[00:22:41] So that's where I think law of government effort goes

[00:22:44] and again this is not different from any other government.

[00:22:48] In terms of during migration there's a lot of policies

[00:22:52] in terms of selling health insurance, making permitting

[00:22:56] and renewal of permit easier, facilitating issues

[00:23:01] when they occur in the labour market abroad,

[00:23:05] thinking about formalizing remittance

[00:23:07] and making sure remittance is easily transferable

[00:23:10] to households back home, right?

[00:23:12] Which also has government incentive

[00:23:14] because they can tax easily as well.

[00:23:17] In terms of return needs however, all,

[00:23:20] not just Nepal but I think everywhere else

[00:23:22] governments have struggled to think about

[00:23:25] what are the policies that sort of allows migrants

[00:23:27] to seamlessly reintegrate

[00:23:29] because think about it like typical migrant

[00:23:32] often only goes abroad for two to four years.

[00:23:35] So coming back they have a lot of productive labour market

[00:23:40] sort of lifetime they're going to spend in Nepal, right?

[00:23:43] So we stress a lot about brain drain

[00:23:47] and loss of labour abroad but we are only losing

[00:23:49] for a few years.

[00:23:50] In fact they actually come back

[00:23:53] and have the potential to spend

[00:23:55] most of their productive labour life in Nepal.

[00:23:58] And then the question is how well can

[00:24:01] the labour market in Nepal observe them back, right?

[00:24:04] And what's the role of the government to facilitate that?

[00:24:07] Especially with something like NSDB

[00:24:10] is doing where they are providing subsidized

[00:24:14] accreditation programs, certificates basically

[00:24:17] which is saying look I went abroad

[00:24:19] I know how to run a digger

[00:24:21] I don't have the capacity to go through training

[00:24:24] and get the permit but you can go to NSDB board

[00:24:27] and they sort of accredit your skills saying

[00:24:30] you are a migrant you sort of have this experience

[00:24:33] so the domestic employers can validate that

[00:24:36] because it has a government seal

[00:24:38] and therefore are more willing to hire workers, right?

[00:24:40] So there are policies that the government

[00:24:42] around the world including Nepal are working on

[00:24:45] and again if I miss something

[00:24:47] or there's major ones that I missed

[00:24:49] please feel free to jump in.

[00:24:51] Slesi mentioned, you mentioned like there are

[00:24:55] the government is signing a lot of new

[00:24:58] agreements with different destinies in the country

[00:25:00] and this also has been in if you look at

[00:25:03] the 15th deployment plan and also the ministries,

[00:25:05] strategies you can see that they want to

[00:25:08] find this newer destinies for

[00:25:10] Nepal immigrant workers and which is also

[00:25:12] different from the political rhetoric

[00:25:14] that is ongoing in Nepal right now as well.

[00:25:20] And to supplement this kind of like

[00:25:23] the policies that are being implemented

[00:25:25] in the policy direction, we can also see from

[00:25:28] data that Nepali are also going to a lot of

[00:25:31] newer destinies and like if you look in the past

[00:25:34] most of our migration or at least international

[00:25:37] labor migration occur to the GCC countries

[00:25:40] that the Gulf countries and also to Malaysia

[00:25:43] but recently and even the Nepal labor

[00:25:46] migration report showed that an increasing

[00:25:48] number of Nepalese are migrating to European

[00:25:51] countries like Malta, Romania, Cyprus and

[00:25:54] Croatia are emerging as a very important

[00:25:56] destination for Nepali migrant workers.

[00:25:59] Amina ji what do you think brought

[00:26:02] distance in the trend of migration in Nepal?

[00:26:06] In my opinion you know, Mesa would be

[00:26:09] exposure and probably I won't be wrong

[00:26:13] when I say Nepal malteries which is

[00:26:16] by the manche they find it autonomously

[00:26:19] and this is a government catch us up.

[00:26:23] People started to migrate to Gulf countries

[00:26:26] Malaysia and others so obviously they have

[00:26:29] come in contact with migrants from other

[00:26:31] countries and that's how that network has

[00:26:33] actually built over a period of time

[00:26:36] and this I think where is where it started

[00:26:39] this expansion because I had spoke with

[00:26:42] few people like who were working in Dubai

[00:26:44] and we're thinking of going to the other

[00:26:46] destination because they have managed to

[00:26:48] get that networks. Migration is an

[00:26:50] important part in the network.

[00:26:52] You know that you migration, if you

[00:26:54] have a formalized channel, formalized

[00:26:57] channel is also an important role

[00:27:00] for the network and this is your

[00:27:02] migration scholarship network is

[00:27:04] probably the most important part.

[00:27:06] Having said that, what other factor

[00:27:08] do you have? You have natural

[00:27:10] graduation, your remittance

[00:27:13] use is known. One of the most

[00:27:16] prioritized sector of remittance use is

[00:27:18] education. My priority is to

[00:27:21] study my children. My children

[00:27:23] have not studied plus two. Now I have

[00:27:25] a network, I have exposed, I have

[00:27:27] seen many people studying my children

[00:27:29] and now I start to think what

[00:27:31] could be other destination.

[00:27:34] When they are ready for another

[00:27:37] destination, they say you live

[00:27:39] a migration to graduate and shift

[00:27:41] to study.

[00:27:43] Government

[00:27:45] is also known in the media.

[00:27:47] Migration is always, you are talking

[00:27:49] about two nations, transnational

[00:27:51] issues and protection.

[00:27:53] A lot of challenges.

[00:27:55] These challenges have

[00:27:57] persisted despite many

[00:27:59] efforts.

[00:28:01] There has been

[00:28:03] efforts but it has been very

[00:28:05] difficult.

[00:28:07] As part of a person who has been

[00:28:09] working in this sector for quite

[00:28:11] sometime now, what could be

[00:28:13] other safer and more lucrative

[00:28:15] destinations?

[00:28:17] In the search, this

[00:28:19] started to expand.

[00:28:21] And then I think the third

[00:28:23] point, it was very

[00:28:25] interesting.

[00:28:27] Migrants are also

[00:28:29] important.

[00:28:31] The problem of the

[00:28:33] migrants is the deportation.

[00:28:35] The problem of the Nepali

[00:28:37] migrants is that they are

[00:28:39] two years old and they are

[00:28:41] three years old.

[00:28:43] They are not given the same age.

[00:28:45] They have to return home.

[00:28:47] Nepali migrants

[00:28:49] have unskilled people.

[00:28:51] They are very hard working

[00:28:53] and loyal.

[00:28:55] They are focused on their work

[00:28:57] and have a reputation.

[00:28:59] They are also

[00:29:01] employed.

[00:29:03] They don't know the figures

[00:29:05] that they are going to

[00:29:07] return home.

[00:29:09] And here, this was about a

[00:29:11] ticket back.

[00:29:13] They demand

[00:29:15] around 60-70%

[00:29:17] in terms of

[00:29:19] labor demand.

[00:29:21] So

[00:29:23] destination countries

[00:29:25] like

[00:29:27] Bandy and me are

[00:29:29] having a problem.

[00:29:31] They have a reputation of

[00:29:33] the poor.

[00:29:35] They are not

[00:29:37] able to

[00:29:39] to return home.

[00:29:41] So the problem of the

[00:29:43] migrants is that they are

[00:29:45] not

[00:29:47] able to return home.

[00:29:49] And there are

[00:29:51] many other

[00:29:53] migrants who

[00:29:55] are not able to return home.

[00:29:57] And they are not able

[00:29:59] to return home.

[00:30:01] So

[00:30:03] the problem

[00:30:05] of the poor

[00:30:07] is that

[00:30:09] you are old.

[00:30:11] You are 5-8 years old

[00:30:13] and as I said, it started

[00:30:15] autonomously.

[00:30:17] People going on their own

[00:30:19] and later now more bilateral

[00:30:21] agreements are starting.

[00:30:23] What do you think

[00:30:25] will be the implications

[00:30:27] of moving from

[00:30:29] home to the next generation?

[00:30:31] I have no idea.

[00:30:33] This makes me

[00:30:35] I am very interested in

[00:30:37] the Gulf countries, you know.

[00:30:39] Manchisansan by 40,

[00:30:41] Max 45, they are back.

[00:30:43] And every migrant

[00:30:45] who is going on their own

[00:30:47] can send maximum money back home.

[00:30:49] These were very clear.

[00:30:51] What would be the consequences?

[00:30:53] Will it remain

[00:30:55] your circular, certain period

[00:30:57] of time

[00:30:59] of time?

[00:31:01] Will it be

[00:31:03] gradual and come back?

[00:31:05] Will that happen?

[00:31:07] Or does it lead to more permanent

[00:31:09] shifts?

[00:31:11] And if it lives to the student

[00:31:13] migration and after

[00:31:15] student, many people are

[00:31:17] remaining behind.

[00:31:19] After certain

[00:31:21] time, remittance

[00:31:23] is not heard.

[00:31:25] And if you have a

[00:31:27] question,

[00:31:29] what kind of implications

[00:31:31] will this have?

[00:31:33] We will learn out of

[00:31:35] nurses very quickly.

[00:31:37] What happens to our own

[00:31:39] labor

[00:31:41] force, demand go?

[00:31:43] There are a couple of things I don't think

[00:31:45] that I really don't know

[00:31:47] to be honest.

[00:31:49] I think we need to have better

[00:31:51] understanding and better thoughts on

[00:31:53] what is happening in

[00:31:55] the U.S.

[00:31:57] countries.

[00:31:59] You are a professor.

[00:32:01] I don't know if that

[00:32:03] means much.

[00:32:05] Yeah, I mean,

[00:32:07] it makes sense what's happening,

[00:32:09] right?

[00:32:11] And you mentioned that the

[00:32:13] government policy here is catching up

[00:32:15] to what's happening in reality.

[00:32:17] But it is also true from the other

[00:32:19] side.

[00:32:21] We are not trying to

[00:32:23] make it a long-term

[00:32:25] simulation.

[00:32:27] But if you look at data,

[00:32:29] very recently,

[00:32:31] the number of temporary migrants that

[00:32:33] have entered OECD

[00:32:35] country together, out

[00:32:37] numbers, any permanent

[00:32:39] migration, they have taken in

[00:32:41] from any category, not just

[00:32:43] employment category.

[00:32:45] So I don't know how much this

[00:32:47] expectation that that kind of

[00:32:49] employment country is going to be

[00:32:51] different from what we see in

[00:32:53] GCC and Malaysia.

[00:32:55] I don't know how much that is going

[00:32:57] to come true.

[00:32:59] And this is just my personal view

[00:33:01] based on, I think

[00:33:03] those countries would eventually

[00:33:05] catch up into what's happening

[00:33:07] and hence bring out policies

[00:33:09] that are more protective

[00:33:11] of native workers.

[00:33:13] But at the same time allow

[00:33:15] a lot more migration into those

[00:33:17] countries.

[00:33:19] And I see the volume of

[00:33:21] migration to these countries

[00:33:23] definitely increasing at the same

[00:33:25] time, the increase

[00:33:27] in restrictions on labor market

[00:33:29] opportunities as well as

[00:33:31] social mobility or long-term

[00:33:33] assimilation in these countries.

[00:33:35] But we were saying before, in

[00:33:37] terms of the general idea of

[00:33:39] migration, we have to accept the fact

[00:33:41] that this is a globalized world

[00:33:43] and the global phenomena, it is

[00:33:45] a globalized world.

[00:33:47] And the reality of this is that

[00:33:49] there is a possibility of developed

[00:33:51] countries to restrict competition

[00:33:53] between natives and migrants.

[00:33:55] And there is a

[00:33:57] camp in policy where

[00:33:59] they advocate for a right-based

[00:34:01] approach, whereas even countries

[00:34:03] like Scandinavian countries, they

[00:34:05] want migrants to have

[00:34:07] same exposure at natives.

[00:34:09] But if you look at data, their

[00:34:11] policy does not allow them to

[00:34:13] restrict their competition with

[00:34:15] natives.

[00:34:17] There are a lot of papers that does

[00:34:19] the back of the envelope calculation

[00:34:21] and as much as GCC, I am not

[00:34:23] the holding banner for Malaysia

[00:34:25] and GCC type migration, obviously

[00:34:27] it has a lot of issues and

[00:34:29] studies that show these restrictions

[00:34:31] actually depress migration,

[00:34:33] migrant wages as well in

[00:34:35] addition to extreme examples

[00:34:37] of exploitation and all that.

[00:34:39] But GCC

[00:34:41] and Malaysia type migration

[00:34:43] contributes a lot more

[00:34:45] to bringing equity

[00:34:47] in the global market than

[00:34:49] policies that

[00:34:51] in one hand gives more

[00:34:53] access to migrants in terms

[00:34:55] of less competition, less restriction

[00:34:57] but also limits the number

[00:34:59] of migrants that can enter.

[00:35:01] So again I am sort of diverting here

[00:35:03] but we should be careful

[00:35:05] about how we think about that

[00:35:07] destination relative to today,

[00:35:09] especially comparing the nature

[00:35:11] of that migration today versus

[00:35:13] what is going to be in the future.

[00:35:15] I think just to add on to it, I think

[00:35:17] in the short run what is going to happen

[00:35:19] is the remittances probably would be higher

[00:35:21] and if Slis what you are

[00:35:23] implying to Bhayavan, if people

[00:35:25] come back, that would be

[00:35:27] wonderful. So we will have

[00:35:29] not only skill but

[00:35:31] world class

[00:35:33] nurses and other

[00:35:35] skill sources coming up

[00:35:37] and as I said

[00:35:39] that can actually be used

[00:35:41] as a catalyst

[00:35:43] maybe to develop better education systems

[00:35:45] here. When I say not only

[00:35:47] schools or university

[00:35:49] or the whole ecosystem of education

[00:35:51] and hospitality in other sectors

[00:35:53] so I think this is why

[00:35:55] it's important now to start thinking

[00:35:57] what does it mean

[00:35:59] because if that brainstorm

[00:36:01] happens, migration

[00:36:03] by the time migration happens

[00:36:05] by the time

[00:36:07] implications take place, action becomes too late

[00:36:09] to anticipate

[00:36:11] what is going to happen

[00:36:13] is the village is empty

[00:36:15] now the village is empty

[00:36:17] how will it be turned around

[00:36:19] that is the problem

[00:36:21] anticipation is going to happen

[00:36:23] and this is where I think more work needs to be done

[00:36:25] you have said before

[00:36:27] that the village is empty

[00:36:29] and you have said before

[00:36:31] but there are 15,000 nurses

[00:36:33] who have lost their jobs

[00:36:35] so

[00:36:37] not only like in the future

[00:36:39] but I think it's one of the

[00:36:41] issues that has not been talked about

[00:36:43] a lot

[00:36:45] our research

[00:36:47] is about the feminization of agriculture

[00:36:49] and literature

[00:36:51] and the levy of the shortage

[00:36:53] we have also brought it to you

[00:36:55] in the news

[00:36:57] your wife

[00:36:59] and your children

[00:37:01] we have brought it to you

[00:37:03] because of shortage of men

[00:37:05] we have seen it in the work load

[00:37:07] and we have seen it

[00:37:09] and

[00:37:11] we have brought it to you

[00:37:13] in the remittance

[00:37:15] in our economy

[00:37:17] but it is important

[00:37:19] we have brought it to you

[00:37:21] and also

[00:37:23] your population dynamics

[00:37:25] your social demographic

[00:37:27] now we have

[00:37:29] we have

[00:37:31] in the last two decades

[00:37:33] there has been exponential growth

[00:37:35] in the main migration

[00:37:37] our population dynamics

[00:37:39] and social demographic

[00:37:41] how many implications

[00:37:43] have been left

[00:37:45] there is

[00:37:47] literally

[00:37:49] divorce between migration and development

[00:37:51] we have

[00:37:53] so many migrations in the development plan

[00:37:55] we have more in the background

[00:37:57] than what is happening

[00:37:59] but then we are planning a project

[00:38:01] when I say we

[00:38:03] I do not want to say it in the government

[00:38:05] all of us

[00:38:07] we have created a project

[00:38:09] we have all been doing migration

[00:38:11] we are doing both

[00:38:13] but

[00:38:14] there are no implications for that

[00:38:16] and the thing that is happening

[00:38:18] is

[00:38:20] our assumptions

[00:38:22] the population remains as it is

[00:38:24] but

[00:38:26] my PhD

[00:38:28] was in 2010

[00:38:30] and that is when I had flagged up

[00:38:32] what left behind women

[00:38:34] is it good for women's empowerment

[00:38:36] and not one negrama

[00:38:38] especially when you see the needle shift

[00:38:40] you will not see

[00:38:42] and this is where I think we are not able

[00:38:44] to use migration to the extent

[00:38:46] but there is

[00:38:48] a lot of evidence

[00:38:50] how many percent of our national level

[00:38:52] of population

[00:38:54] is being used

[00:38:56] and the number of people

[00:38:58] who are not able to use migration

[00:39:00] for the sake of poverty reduction

[00:39:02] is not established

[00:39:04] not because we have been able

[00:39:06] to actually catalyse migration

[00:39:08] for poverty reduction

[00:39:10] again, you are right

[00:39:12] because of the way people have been spending

[00:39:14] their remittances

[00:39:16] you know that divorce

[00:39:18] I think is really doing a lot of harm

[00:39:20] and how to address this

[00:39:22] and how to keep it going

[00:39:24] I am like, this is the character

[00:39:26] that is being taken away from the people

[00:39:28] I think that if we are going to live

[00:39:30] even if you are not able to

[00:39:32] even close the gap

[00:39:34] does that not make sense

[00:39:36] to start thinking that people are going to live

[00:39:38] because at the moment we can't give

[00:39:40] that equivalent

[00:39:42] economic employment opportunity

[00:39:44] but there are remittances

[00:39:46] that are being taken away from this

[00:39:48] and I will give you an example

[00:39:50] of this

[00:39:52] no, because we have been so focused

[00:39:54] on stopping migration

[00:39:56] why do we do that

[00:39:58] because migration is almost like a train

[00:40:00] that is running down a hill

[00:40:02] you can't stop, you can manage

[00:40:04] that's what you need to do

[00:40:06] this man said that the population

[00:40:08] feminization of agriculture

[00:40:10] is not good

[00:40:12] but how much of a shift has it been

[00:40:14] brought on the extension

[00:40:16] services

[00:40:18] even it has not changed

[00:40:20] now we have a remittance

[00:40:22] so the sector of agriculture

[00:40:24] I am also a student of agriculture

[00:40:26] and my colleague

[00:40:28] from agriculture

[00:40:30] now we have used it as a blame

[00:40:32] because of this migration

[00:40:34] we don't perform in agriculture

[00:40:36] and 3-15-20 years

[00:40:38] before that

[00:40:40] we are all dependent on agriculture

[00:40:42] we can't do anything about agriculture

[00:40:44] now when the crisis is over

[00:40:46] because of this crisis

[00:40:48] what is the problem

[00:40:50] it's not because

[00:40:52] of migration that land

[00:40:54] is being left fallow

[00:40:56] I had actually done a study

[00:40:58] I am learning

[00:41:00] in the country

[00:41:02] even in the country

[00:41:04] there is no land fallow

[00:41:06] nowhere

[00:41:08] we used a mix method

[00:41:10] to really say it

[00:41:12] but it is not because of that

[00:41:14] there are migrations

[00:41:16] why is it not because of migration

[00:41:18] it is because of the long term

[00:41:20] it is the agriculture sector

[00:41:22] that is so

[00:41:24] non-commercial

[00:41:26] I am an agriculture economist

[00:41:28] and to keep my economic heart

[00:41:30] I am sorry for the crisis

[00:41:32] if I hold it

[00:41:34] it will explain it better

[00:41:36] if I use labour productivity

[00:41:38] now I will bring climate change

[00:41:40] I am trying to keep it

[00:41:42] it has become such a risky

[00:41:44] venture

[00:41:46] that it doesn't make sense to invest in it anymore

[00:41:48] why are you doing this

[00:41:50] not because of migration

[00:41:52] for decades we have neglected

[00:41:54] the sector of agriculture

[00:41:56] and it is not because of the hill agriculture

[00:41:58] but it has improved

[00:42:00] because of technology

[00:42:02] that we have imported

[00:42:04] from elsewhere

[00:42:06] it is not because of the hill

[00:42:08] I would say also global

[00:42:10] because globally the whole focus

[00:42:12] for reducing food security

[00:42:14] was on three or four crops

[00:42:16] maize wheat rice

[00:42:18] and none of these are good for hills

[00:42:20] when you invest in hills

[00:42:22] agriculture has remained stagnant

[00:42:24] why would people stay

[00:42:26] and agriculture

[00:42:28] is not an option

[00:42:30] so I think

[00:42:32] these are the reasons

[00:42:34] and because I am still

[00:42:36] focusing on this

[00:42:38] people are not staying

[00:42:40] as a young man

[00:42:42] it is a virus

[00:42:44] so how are you going to reach out to them

[00:42:46] no thoughts on that

[00:42:48] if everyone is old

[00:42:50] they will focus on the new

[00:42:52] no thoughts on that

[00:42:54] gender has remained as one tick box

[00:42:56] kind of thing

[00:42:58] I think this is where

[00:43:00] we have not managed to

[00:43:02] capitalize on

[00:43:04] benefits as much

[00:43:06] as it would have been possible

[00:43:08] probably Slitz will disagree

[00:43:10] because he is saying that globally

[00:43:12] it has been the same trend

[00:43:14] it is globally but I feel that

[00:43:16] there is a lot more that could have been

[00:43:18] capitalized

[00:43:20] yeah I mean

[00:43:24] I don't think this statement

[00:43:26] you would disagree which is

[00:43:28] I don't think there is little debate

[00:43:30] that there is immediate financial

[00:43:32] gains from migration

[00:43:34] and just because of the wage gap

[00:43:36] between these countries

[00:43:38] and most of the money migrants are

[00:43:40] and do come back to Nepal

[00:43:42] so

[00:43:44] and there is also a growing body of work

[00:43:46] over the last 2-3 decades now

[00:43:48] that show that remittance

[00:43:50] directly improves

[00:43:52] consumption of households

[00:43:54] which tends to be directly correlated

[00:43:56] with well-being and poverty

[00:43:58] as well as some sort of investment

[00:44:00] that has long term implication

[00:44:02] for what does this

[00:44:04] migration mean in the long run

[00:44:06] for that household itself

[00:44:08] but what I do find

[00:44:10] at least in the

[00:44:12] context of Nepal

[00:44:14] and the way people discuss

[00:44:16] the impact of migration

[00:44:18] through remittance is oh

[00:44:20] are migrants spending money the right way

[00:44:22] or the wrong way right

[00:44:24] and I don't think that's a productive

[00:44:26] argument to have

[00:44:28] partly because

[00:44:30] it depends on preference

[00:44:32] like if I earn something

[00:44:34] I have made many decisions that are

[00:44:36] probably not you know

[00:44:38] I might regret

[00:44:40] so what I'm trying to say is

[00:44:42] at least

[00:44:44] logically and conceptually

[00:44:46] thinking about

[00:44:48] what does remittance should be

[00:44:50] spent on is a very difficult

[00:44:52] and unanswerable question

[00:44:54] if we go into the nitty-gritty detail

[00:44:56] of oh the migrants shouldn't be spending

[00:44:58] on wedding expenses

[00:45:00] oh migrants shouldn't be spending on shoes

[00:45:02] but

[00:45:04] having said that what

[00:45:06] economic theory does allow

[00:45:08] is for us to sort of identify

[00:45:10] two key

[00:45:12] challenges that migrant households

[00:45:14] do face in terms of

[00:45:16] when they decide

[00:45:18] and how they decide how to spend that money

[00:45:20] right and those two are first

[00:45:22] of all this idea

[00:45:24] that goes back to the temporary

[00:45:26] future of migration

[00:45:28] the increase in income of a migrant

[00:45:30] and a migrant household is temporary

[00:45:32] right so then the question

[00:45:34] becomes how do I

[00:45:36] smooth out that

[00:45:38] increase in income across my

[00:45:40] lifetime of consumption

[00:45:42] right and we all face that like

[00:45:44] retirement is an example of that

[00:45:46] right we all know that at some point

[00:45:48] we stop working our income

[00:45:50] sources and but we want to consume

[00:45:52] even after we retire and therefore

[00:45:54] we can smooth out consumption

[00:45:56] so in that context

[00:45:58] migrants do face issues of

[00:46:00] making that decision right and that

[00:46:02] investing on future

[00:46:04] consumption is basically savings

[00:46:06] right so

[00:46:08] the question then becomes do migrants

[00:46:10] and migrants household have the right

[00:46:12] financial literacy and access

[00:46:14] to financial instruments

[00:46:16] through banks that allows them

[00:46:18] to invest and save money

[00:46:20] so that they can smooth consumption

[00:46:22] according to their preference

[00:46:24] right and again

[00:46:26] some people have high discount rates

[00:46:28] some people have low discount rates

[00:46:30] so it's difficult to say what is the

[00:46:32] correct appropriate amount to save

[00:46:34] but what we do need to make sure

[00:46:36] that given a migrant faces that decision

[00:46:38] they have the right instrument

[00:46:40] and access to banking sector

[00:46:42] for them to allocate

[00:46:44] their preferred amount of saving

[00:46:46] right and not over consume

[00:46:48] just because there's no access to saving

[00:46:50] and along that path there are a lot

[00:46:52] of intervention studies

[00:46:54] that sort of focuses on

[00:46:56] all this family

[00:46:58] migrant financial training

[00:47:00] programs sort of fall under that umbrella

[00:47:02] expanding banking access

[00:47:04] or developing certain kind of

[00:47:06] saving

[00:47:08] products and instruments by bank

[00:47:10] targeted towards migrant households

[00:47:12] but there are also other ones

[00:47:14] which are sort of more niche

[00:47:16] which is

[00:47:18] you know we all like to save

[00:47:20] but we save less because we are in discipline

[00:47:22] right so there's this thing about

[00:47:24] time inconsistent preferences

[00:47:26] so there are studies

[00:47:28] that specifically target

[00:47:30] migrant households where you commit

[00:47:32] at the time of earning

[00:47:34] that you're going to save a certain amount

[00:47:36] and you have to incentivize them on

[00:47:38] by topping it off just like

[00:47:40] our employer does on retirement

[00:47:42] so there are these

[00:47:44] stuff but the general evidence

[00:47:46] from that

[00:47:48] the one I'm very familiar with is

[00:47:50] on Al Salvedo and migrants in DC

[00:47:52] so they were offered

[00:47:54] a banking instrument where

[00:47:56] you commit certain amount to

[00:47:58] education of the kid

[00:48:00] and the intervention

[00:48:02] tops it off like doubles it or something like that

[00:48:04] but generally

[00:48:06] the result is the take up rate

[00:48:08] of those instrument in that context were fairly low

[00:48:10] which means that

[00:48:12] you know they were optimally

[00:48:14] investing in children's education

[00:48:16] and they had they didn't have the constraint

[00:48:18] of not being able to save properly

[00:48:20] right in that context but doesn't mean

[00:48:22] that doesn't exist in Nepal that problem

[00:48:24] and one thing you do see

[00:48:26] in all data is remittance

[00:48:28] typically tends to increase

[00:48:30] you mentioned education and education

[00:48:32] is an example of investment

[00:48:34] for future consumption so what you are doing

[00:48:36] is basically investing on your kid

[00:48:38] that improves the kids

[00:48:40] future income

[00:48:42] and as long as the kid is part of the household

[00:48:44] and there's a joint household decision making

[00:48:46] that's basically retirement

[00:48:48] the other aspect

[00:48:50] I think where a meaningful

[00:48:52] discussion can be had

[00:48:54] from

[00:48:56] economic fundamentals is this idea

[00:48:58] of a transnational household

[00:49:00] and what I mean by that is the income

[00:49:02] earner and the location of the source

[00:49:04] of the income is different

[00:49:06] from the

[00:49:08] person or the household that spends that money

[00:49:10] right and which is not typical

[00:49:12] in many household context right

[00:49:14] usually the income earner and the

[00:49:16] expenditure of that income

[00:49:18] is physically there so each other

[00:49:20] can check and balance each other

[00:49:22] so in this context there are a lot of inefficiencies

[00:49:24] in terms of how the

[00:49:26] household decides to spend that money

[00:49:28] arises due to asymmetric

[00:49:30] information right so the migrant

[00:49:32] doesn't necessarily have control

[00:49:34] or the ability to observe

[00:49:36] how the money is being spent by

[00:49:38] the household member once I send that money

[00:49:40] that leads to

[00:49:42] often migrant making sub-optimal

[00:49:44] decisions and how

[00:49:46] and the frequency and the amount

[00:49:48] of money he or she spends

[00:49:50] as well as sends back home and saves

[00:49:52] right so in that

[00:49:54] problem setting

[00:49:56] there are research where again

[00:49:58] in partnership with different banks

[00:50:00] develop financial

[00:50:02] instruments for migrant workers

[00:50:04] where it provides

[00:50:06] more visibility

[00:50:08] even after they send money back home

[00:50:10] of how the household is

[00:50:12] spending that money right

[00:50:14] as well as control over

[00:50:16] stopping household

[00:50:18] from spending additional money

[00:50:20] if the migrant disagrees with

[00:50:22] the flow outflow of money from the bank account

[00:50:24] and you do see effects

[00:50:26] on that and I just want to say

[00:50:28] lastly the biggest one where you

[00:50:30] do see effects are the cost

[00:50:32] of remittances which is perhaps not

[00:50:34] relevant in today but

[00:50:36] 10 years ago it was the main

[00:50:38] area of work where

[00:50:40] the cost of remittance was too high

[00:50:42] and just providing subsidies

[00:50:44] tends to not only increase the

[00:50:46] frequency of remittance

[00:50:48] money that comes in

[00:50:50] but just the overall

[00:50:52] money that basically comes

[00:50:54] to the destination

[00:50:56] sending country and not migrants spending

[00:50:58] money there quote unquote

[00:51:00] frivolously

[00:51:04] I just add one last point

[00:51:06] I think

[00:51:08] what I find a bit disturbing

[00:51:10] oily the equality

[00:51:12] trend and where we need

[00:51:14] to be very cautious that that doesn't happen

[00:51:16] is that passing

[00:51:18] on that pattern to the next generation

[00:51:20] and getting trapped into this low skilled

[00:51:22] low

[00:51:24] remittance

[00:51:26] low earning ways

[00:51:28] based remittances

[00:51:30] I was just back from Sindapalchuk

[00:51:32] asking them

[00:51:34] a troper sir be this one bus you

[00:51:36] come to us so Kate the

[00:51:38] investment and that's

[00:51:40] a given to

[00:51:42] such a chetra panina but

[00:51:44] this money very I don't know from

[00:51:46] where this banter comment

[00:51:48] was a matter and why they came

[00:51:50] with the whole of the book but

[00:51:52] the girls are other boundary

[00:51:54] so can't even say that

[00:51:56] we can't grow and then

[00:51:58] they shared that

[00:52:00] what are you going to do when the hero

[00:52:02] me robot's a barocca chip or the sir

[00:52:04] now he would go next

[00:52:06] and almost the same

[00:52:08] destinations of a boy who

[00:52:10] migration cycles are cute I was what I

[00:52:12] is going that is no graduation

[00:52:14] and this is

[00:52:16] something that I think we need to be very

[00:52:18] cautious that it does not happen that

[00:52:20] this dependency on

[00:52:22] low skilled

[00:52:24] migration does not pass on from one

[00:52:26] generation to another that

[00:52:28] would be absolutely cautious about

[00:52:30] thank you I mean as is Lacey and

[00:52:32] we are almost over time

[00:52:34] of 45 minutes I know

[00:52:36] that migration is such a multi

[00:52:38] facet multi dimensional thing that we have so

[00:52:40] many topics to cover but

[00:52:42] now I would like to

[00:52:44] open the floor for question and

[00:52:46] answers and conversations

[00:52:48] thank you for tuning into

[00:52:53] Project Sambath if you found

[00:52:55] the conversation insightful and crave

[00:52:57] more lively interaction from the audience

[00:52:59] hop on over to policy entrepreneurs

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