Contribution of Remit Economy on Poverty Reduction in Nepal

Abstract

The contribution of remit economy and Poverty reduction in Nepal has analysis in this paper and how remittance income is contributing poverty reduction for employment generation. It is considered as the major component which has direct and indirect impact on macro-economic indicators and tried to explore the possibilities of utilizing remittances in the economic development of the country. When the remittance has increase on a family they have household facility with reflects the socio-economic differences. Such as, Land ownership, occupations incomes and expenditures are determinants for economic growth. Health related activities, educational status and sanitation are taken as human development indicator and information acquiring capacity, increase in awareness about the basic rights and participation in human development program as the basic indicators for empowerment and social inclusion. Productive utilization of remittances would be necessary for reducing poverty. It carried out discussed only poverty alleviation in relation to the economic growth. There is no doubt that remittance provides reliable source of foreign exchange. It could lead to stable macro-economic indicators and enhances living standard at the household level. Only addressing poverty relating remittances with standard of living would not satisfy the sustainability and economic growth but on the sustainability aspect at both national level and households' level is very scanty. Social impacts of migration, both positive and negative are lacking. The contribution of remit economy has increase of income and the trade deficit and naturally contributes to the Balance of Payments. It also helps to making trade balance and contributed in the development efforts on an average income, expenditure and the capital formation.