Impacts of Remittance on Rural Livelihood: A Case Study of Ward No. 1 And 2 of Bhimeshwor Municipality, Dolakha

Abstract

This study entitled “Impacts of Remittance on Rural Livelihood: A Case Study of Ward No. 1 & 2 of Bhimeshwor Municipality, Dolakha” was conducted with the objectives to analyze the pattern of use of remittance, assess the contribution of remittance in economic status of the people before and after remittance and evaluate challenges ofproductive use of remittance in the study area. This study is mainly based on the primary information and the data collected by using the questionnaire of household survey, checklist of field observation & schedule of key informant interview. As per need some of the relevant secondary data were also used to enrichment this study. This study has used descriptive cum explorative research design because this study attempts to describe the situation of study area basically before and after in-flow of remittance. Study has found that before going for foreign employment the sample populations were engaged in different sectors like agriculture, labor, job etc. Out of the total respondents, 29 percent was engaged in agriculture, 18 percent in business, 12 percent were labor, 15 percent in job and the rest were unemployed. As occupation in foreign countries most of them have been working as an industrial labor in foreign land. The figure shows that the workers working as household worker are only 6 percent. It is due to the lack of skills and education before foreign employment. From the survey, it was found that the workers in foreign employment had an income between 41000 and 100000 per month. This was a lot more than what they used to have before foreign employment. The remitted amount was spent on different sectors like health, education, land, house, etc. Out of total surveyed56 percent of the sample population gone for foreign employment was found married. After marriage, the workers were unable to feed the family in a proper way. There was comparatively more responsibility in a married man to unmarried. So, they chose foreign employment for the betterment of their family No doubt, remittances contribute largely to the national economy. The remittances sent home by the migrants affect development at both the household and national levels. At the household level, remittances help to reduce poverty, improve standard of living and attain higher educational levels. At the macro level, remittances could be used for entrepreneurship and productive investment which in turn increases job opportunities and income of the people. At the same time, remittance inflows help to augment foreign exchange reserves and improve the current account position. Despite these facts,many issues have beenraiseddue to foreign employment. The various problems like lack of manpower, unproductive use of remittance, negative psychology on the children and other various social conflicts have been found due to foreign employment. Foreign Employment has no longer solution to eradicate the problems like poverty, unemployment, and cannot root-out from the list of less-developing countries. Utilization of remittance income in productive sector has been a major concern. Major portion of remittance has been spent for consumption purpose and such consumption is attributed to imports which consequently has enriched trade deficit. Study has concluded that the foreign employment is not a permanent solution for development of Nepal.