Tuesday, February 22, 2011

How are Nepal's Migrant Workers Doing in the Middle East?

During Indra Jatra, Newari people disperse into the woods
around their towns to gather wood for a
massive bonfire at home that night.

Estimates for how many Nepalese people have moved abroad for employment range from 2.6-4 million, or ~15-20% of Nepal's population.  Many Nepalese migrant workers now work in the middle east, where waves of conflict are destabilizing dictators like Jenga towers or whatever simile.

The Kathmandu Post and other papers published in Nepal's capital have dutifully printed stories from the AP and Agence France Presse about the recent protests, clashes and dictator overthrows. However, I have seen little coverage of what the developments mean for the tens of thousands of Nepalese families with relatives abroad in Bahrain, Egypt, Libya etc. How are these families coping? Are Nepalese laborers abroad participating in protests?

The protests in the middle east could have economic consequences for Nepal. In 2010, 23% (!) of Nepal's GDP came in the form of remittances from workers employed in other countries. And that figure doesn't even include remittances from India, which are probably huge thanks to India's open border with Nepal. I don't know how much of that figure came from countries now embroiled in...imbroglios...but you can bet somebody is losing money. How will these protests affect the availability of work, and the pay, for Nepalese migrants? Hopefully some analysis will drop in the next few weeks. I don't have the resources/skills to do it myself, but I want to know.

Here's an article from Foreign Affairs about how the global recession affected highly remittance dependent economies. Surprisingly, to me, it wasn't all bad.

Also: Do you want to read a technical, jargon rich analysis of Nepal's Liquidity Crisis?

1 comment:

  1. The New York Times article "Nepal's Stalled Revolution." appearing Feb 23, 2011, p. A19 (OpEd) ampifies on the headline, aptly written for a change, that something might happen in Nepal, but we are not sure what. This may happen sometime, but we are not sure when. Is this a pervasive outlook?

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