Role of Remittance in Rural Poverty Reduction
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Central Department of Rural Development Tribhuvan University, Kathmandu
Abstract
The increased global integration and the enhancement in communication technology have
facilitated migration of youths from Nepal to foreign countries; as a result, the flow of
remittances started growing at a higher pace from gulf and other countries to Nepal.
Consequently, remittance has become an important contributor to Nepalese economy.
The present thesis entitled,' Role of remittance in rural poverty reduction: A case study of
Barre VDC, Udayapur district' aims to examine the contribution of the remittance in rural
poverty reduction of the study area. It further analyzes the nature and extent of remittance
income and measures the socio-economic impact of remittance on poverty reduction of
the study area.
The design of this study was pre- and post recall as well as comparison of remittance
receiving household with remittance non receiving householders. This study adopted the
descriptive and analytical method.
It was found that remittance has increased their household economic and social indicators
after returning from foreign employment. It was found that majority of households
improved the conditions of housing, provided good education of their children, improved
the health of their family members. Moreover, they have started to wear good clothes and
increased the savings.
It has been concluded that the economic and social condition of all families who have
involved in foreign employment have been increased. It was in both aspects i. e.
economic as well as social. Therefore, Remittance income brought positive changes in
the status of the families of the respondents.
The thesis is important for stakeholders who are at national policymaking level. In
addition, it is also a vital document for concerned Village Council for making policy
related to migrant workers and utilization of remittance in productive sectors.