Role of Remittance in Rural Poverty Reduction

Abstract

This study entitled "Role of Remittance in Rural Poverty Reduction" (A case study of Pipaltari VDC, Parbat District, Nepal) was conducted with the objectives of analyze the impact of remittance in rural livelihood, access the contribution of remittance in poverty reduction in rural area and analyze the factors related to the use of remittance in Pipaltari VDC of Parbat District. This study is mainly based in the primary information and the data were collected using the techniques of household survey with the help of questionnaire and interview. There were 623 households in this VDC. Out of total households 420 households were receiving remittance money. Among them 50 households were selected as the sample for the study. Most of the households from the study area were receiving remittance. In the study area it was found that Brahmin 40% and Sarki (Dalit) 30% were the major ethnic group in the study area. Remittance was the main occupation of this study area. 94% foreign migrant workers were male and only 6% were female. 44% foreign migrant workers were spending their remittance in buying land. 40% households were saving their remittance Rs 50,000 – 100,000 per year. After remittance foreign migrant workers households were receiving an amount of NRs 2 lakh to 6 lakh per year. 50% households economic conduction has improved through remittance. Similarly there was significant improvement in the foreign migrant workers households going for better health check up in private hospital and started to sent their children in school, colleges and universities after receiving the remittance in the study area. From the study area we can conclude that all the households who were receiving remittance are getting benefit. Their access to health and education and economy has increased. Likewise it also helps in net saving. The remittance is not using properly in productive sector if the households properly invest in productive sector it will help to develop rapidly which helps in rural development. All households were very positive towards remittance income. In the study area, remittance income has become an effective approach in reducing the poverty. The living standard of the people is gradually changing. People are now getting the proper health facilities and their educational status is also gradually increasing. The income of the family has been raised up ultimately uplifting the living standard of the people living under the poverty line. Some recommendation from our side like the income coming from remittance should be utilized in productive sector like business, agriculture, etc. there should be some vocational training institution in the local area for their skill development and so on. Result of the study suggests that remittance helps to reduce rural poverty and helps in rural development.