Role of remittance in poverty alleviation of Nepal

Abstract

The research accesses the crucial role remittances play in Nepal’s poverty reduction and promoting economic growth often impacting families and economies much more rapidly than government or foreign aid does. The research uses data from secondary sources to examine the role remittances have played as an integral part in poverty reduction and refining the living standard of Nepali people, especially in rural areas. Remittance is a helping hand for many struggling families and communities in Nepal. Remittance help people access food, health care services, and quality education. If compared to other foreign aids, the household-to-household nature of remittances makes it an important and direct means of achieving accelerated poverty reduction in Nepal. The thesis examines the remittance status of Nepalwith a focus on poverty alleviation and economic growth. The research reviews various studies on the uses of remittances by Nepali households and their prospective poverty alleviation impacts. Further, the study explores and shows how remittance flows have remained decisive in Nepalese households through times of economic difficulties. The researchexamines the impact of existing policies, institutional features, and the legal framework adopted by the government on the productive uses of Remittance and stresses the government of Nepal needs to consider how to best manage remittance flows and how the body of research on remittances can be strengthened both to understand the impact of remittances in poverty alleviation and for formulating more effective policy for managing remittances. This study looks at these questions and explores ways to improve awareness of the impact of remittances on poverty alleviation. Keywords: Remittance, poverty, economy, migrants, alleviation