Role of remittance on poverty reduction: (A case of Tulsipur sub-metropolitan municipality ward no.16 Dang, Nepal)

Abstract

This study entitled “Role of Remittance on Poverty Reduction: A Case Study of Tulsipur sub-metropolitan Municipality Ward no. 16 Dang, Nepal” was conducted with the objectives of to examine the economic status of the remittance receiving households, to examine the impact of remittance on poverty reduction and to analyze the using pattern of remittance in Tulsipur sub-metropolitan municipality ward no. 16 dang district. This study is mainly based in the primary information in which the data were collected through household survey and KII techniques. According to rule of thumb on the basis of central limit theorem out of the total 300 households 90 households are taken as sample size for the study. During this study it was found that Janajati (60.00%) were the main ethnic group selected as sample households. Agriculture (64.40%) was the main occupation. Average family size is 45 and Saudi Arabia (26.70%)

UAE (28.90%) are the main destination country in the

study area. Most

of the male (86.60%) and very few female (13.40%) are gone for foreign employment. Most of the people of the ward are gone for employment (91.10%) purpose. 34.40 percent labor migrants are involved in service sectors. About 82.20 percent people have taken loan from relatives in high interest rate 25 percent-36 percent. Around 81.10% labor migrants are unskilled and are forced to work in 4D works (Danger, Difficult, Dirty, Demeaning). 92.20 percent remitters use IME/ Western Union Money Transfer to send their income to the households. 44.40 percent households have used their remittance income for consuming things, 60.00 percent households have used their remittance for paying off the loan. Only 18.90 percent people have invest their remittance income in productive sectors. Most invested area of the ward is land sector (36.70%). The study conclude that all the households who are receiving remittance are getting economic benefit. Their access to purchasing capacity, education and economy has increased. 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. They suggest that focus should be easily availability of loan facilities at low interest rate and providing skills and training before going as migrant labor.