Published by: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH

Nepal’s economic situation and development are inextricably linked to the phenomenon of labor migration. Remittances account for more than a fifth of the GDP and have strongly contributed to poverty reduction among migrants’ families over the past ten years. However, there are more issues around migration than financial transfers: on the one hand, exploitation and abuse are real dangers many Nepali migrant workers face while abroad and complaints from the Nepalese private sector about labor shortages in specific sectors is frequent; on the other hand, returnees bring back capital and (potentially) skills and migration offers options to unskilled, unemployed (often illiterate) youth especially from remote rural areas who can through their work abroad contribute to the family income.

German Development Cooperation – especially the Inclusive Development of the Economy Program (INCLUDE) and the Trade Promotion Program (TPP) – acknowledges the positive and negative development impacts of migration on the country and therefore commissioned a study to develop recommendations on how the topic could be incorporated into ongoing GIZ program activities.