Impact of Foreign Remittance on Livelihood of Chhantyal Community: A Case Study of Deep Area, Pokhara Sub-Metropolis

Abstract

This study entitled, “Impact of Foreign Remittance on livelihood of Chhantyal Community: A Study of Deep Area of Pokhara Sub-metropolis” has been carried out in partial fulfillment of the requirements for the degree of Master of Arts in Economics. The main objective of this study is to analyze the impact of remittance income in terms of livelihood, food, housing, education and health care and its role to increase lining standard and social empowerment of Chhantyal community of the Deep Area of Pokhara Sub-metropolis as well as life standard. This thesis comprises the descriptive and analytical research design. The sample has been drawn on stratified random sampling on the basis of district as a stratifying factor. The selection of sample units is based on the judgement of the researcher to include migrants. So this research is adopted purposive sampling method. For the collection of data, structured questionnaire has been used and information are collected by direct personal interview. To analyze the collected data from the questionnaire, simple calculator, ratio, percent, mean, diagrams and pie-chart have been used. Remittance is becoming a strong source of foreign exchange earnings for Nepal. Since last few years remittance is playing a vital role for the foreign currency earning and impact upon balance of payments reducing the number of people below poverty line and ultimately to the economic growth. Workers remittance is now becoming a backbone of our economy. For the DFID, the value of foreign remittance from migrant labourers is equivalent to 26 percent of official gross domestic product (GDP) in Nepal. Remittance has contributed by 11.0 percent in 2002-03, 29.6 percent in 2015-16 and 26.9 percent in 2016-17 in GDPshowing that remittances have led to a surplus in the current account, thereby strengthening the overall balance of payment position. Similarly, it is a case study of Chhantyal community of Deep Area of Pokhara Sub-metropolis shows that the biggest contribution of remittance has been found to the welfare and improved livelihood of remittance receiving households in terms of basic needs, better health and education except lack of labour in the Deep Area. Hence, it is essential to understand that only meaningful utilization of remittance income can pave the way to the better prospects of the Chhantyal community. Such findings should be kept in proper channels in different layers of the economy to meet twin goals: poverty alleviation and sustainable development of Nepal. The real GDP of the nation could be magnified in the long run with better use of remittance money. Hence, it is lessening the unproductive investment and unemployment problems in the nation because the share of foreign employment is increasing.