Socio-Economic Impact of Remittance (A Case Study of Banganga VDC of Kapilvastu District )

Abstract

Literally, migration refers to phenomena and the process of people from one place to another, such as crossing intra or international geographical boundaries.Population studies of migration are diverse and usually from part of larger problems especially from rural areas. The motive for migration includes political,economic, social and environmental causes, which are different in different societies and cultures in Nepal. Thismicro level study on ‘Socio-EconomicImpact ofRemittance’ is confined toBanganga Village Development Committee of Kapilvastu district located at the Western Development Region of Nepal.Remittance is a directly related area with foreign employment.There are various factors for foreign employment. In recent years, the trend of labor migration is increasing due to poverty as well as increasing population pressure, unemployment and prevailing political conflict. The main objective of this study is to describe the causes of foreign employment and examine the socio-economic impacts of the foreign employment and remittance income in the study area. The study comprises 105 migrants-households representing three wards of the VDC from different caste and ethnic groups. The study found that the majority of the village people do not have sufficient land,despite being farmer. All the represented households are engaged in subsistence farming. Foreign employment or labor migration has been an important source of income in the village to maintain livelihood of the household. Remittance is basically used for day to day food and other household requirements, pay debt, buy new land and houses.There is no investment in the productive sector. Most of the consequences of remittance are positive and some are negative as well. Improved living standard, increased socio-economic status of both male and female, and consumption pattern show positive consequences.Similarly, increase indivorcerate, conflict and crime,alcoholism are the negative impacts of remittance as well as foreign employment.