Consultation on study Impact of migration on development in Khotang

1. Consultation on study Impact of migration on development in Khotang Barbara Weyermann, Advisor for Migration and Development

2. Macroeconomic impact of migration • Mid-July 2010 to mid-Jan 2011 158,000 persons left the country. – 33,000 more than in the same period last year. • Household spending increased. Poverty declined from 42 to 31% between 1996 and 2004. A further decline to 21% in 2010 is estimated. Without remittances the decline would only be to 27%. • Through higher consumption and import, the government had an increase of VAT and import taxes • Remittances support higher consumption without equivalent raise in production. • Migration raises labour costs and thus production costs because less people are available in the domestic labour market .

3. Migration has become the de facto core of Nepal’s development strategy. But no country has ever succeeded in sustaining growth and job creation by relying on remittances only. Example Philippines: 50 years ago, the Philippines were among the leading economies of Asia. Today, the Philippines are far behind. One reason is strong reliance on remittances and labour export.

4. Voices from Khotang district • „Population did not grow in 20 years – out-migration to other parts of Nepal and abroad has been very high“ • „Those who wear salwar (traditional dress) will stay, those who know how to wear pants will go“ • „Every young man is leaving“ • Chief District Officer (CDO): „99% go totally unskilled; roughly 10% return to the district; however much we try to discourage/counsel people, they just want to leave“ • „More and more fields are fallow“ • „There are now not enough people in the village to carry the bodies to the cremation ground“ • „Construction and other communal activities are very slow due to absence of labour class“ • Village Development Committee secretary: „ The dalit have become rich, many bought land in the Tarai with their money from the Gulf“ – This statement illustrates the resentment against foreign labour migration of the middle class that one hears between the lines: The remittances are a challenge to the old social order. • „20% of families break up“ • „Women‘s work load is extremely high“

5. Facts about out-migration from Khotang Analysis of Underlying Causes of Poverty carried out by SDC in 8 VDCs • 2,455 out of a total of 6,565 HH have at least one person in foreign employment • 39% of these households are poor and extreme poor. NIDS study in three SDC working districts (sample of 352 migrant HH) Results from Khotang • 95% to other countries than India (28% to Malaysia, 50% to Gulf, 19% other countries) • Majority of Dalit go to other countries than India

6. Facts out-migration (3 districts) • Pre-departure costs on average Rs. 90,000 (USD 1,250) • 80% fund their migration fully or partly through loans • Monthly earnings of Malaysia/Gulf migrants between NRs 10,000 and 16,000 on average (USD 138-220) • Amount of money sent home depends on living costs • After 2 years and more, only 45% had fully paid back loan • 40% of migrants migrated more than once • Use of remittances • Consumption • Repayment of loan • Educating children • Buying land • 6% migrants to M/G are women 80%

7. Impact on women Findings of other studies in Nepal: • Position of woman changes in nuclear families: more decision making, more participation in public events; • little change was observed in joint families • Work load is high in case of India migration (because the remittances from India are very low) but tends to become lower for other country migration if remittances are high enough to hire in labour.

8. Impact of labour migration on women in Khotang Anecdotal evidence • Difficulties due to pressure by in-laws and communities to adhere to social norms and moral values: women are beaten by in-laws if they are suspected to have an affair; women are stigmatized by the community if they are suspected to look at other men • High work load for women in migrant households of the most disadvantagd groups • Women face pressure via mobile phone: the road construction project hires 40% female workers. After some days, they did not return to work. They said their husbands called from the Gulf to tell them not to work as labourers. (A lahure, i.e. a person in foreign employment has high status and working as laborer undermines this) • School drop-out of migrant family children observed by one project

9. Attitudes in Khotang • Political parties & journalists - from let‘s stop migration to let‘s discourage migration • UML: “First discourage, if people still want to go inform to make it safer and more lucrative and third help to productively use remittances” • NGO representative: “We know it is not possible to stop migration. People go where there is employment, health and education.” • Local Development Officer and CDO: The migration project will be very important, we will support. Information center should be near CDO office. You should inform about all aspects of migration, provide sufficient information to those who want to go and counsel the families left behind. • In general: Foreign employment migration is seen with ambivalence. Helplessness in view of huge change.

10. Why this study? Objective of the study is • Enhance our understanding of the impact of migration on development • Social and economic impact on the individual households • Social and economic impact on communities • Adaptation at individual and community level to the high out-migration • Make recommendations for district development strategy regarding migration

11. What the study should show • Change of livelihood patterns in migrant families • Adaptation of agricultural production: • Changes in agricultural activities? • Impact on food security of households • Other income activities: what increases/decreases? • Changes in spending patterns • Savings – savings that are presently not invested/used for consumption? • Increase/decrease of vulnerability (how many land in debt trap?) • Relation between labour out-migration/domestic migration – relocation patterns of migrant and his nuclear family • Changes in educational status of the family members

12. Study questions • Women • Work load and decision making – how do women adapt to the absence of men? • Psycho-social situation/problems • How does the community view/treat the women/children left behind? • Any changes access of women to information and assets? • Women migrants: How does the absence of women impact on the families? Who replaces her labour? How does the husband cope? How do the children cope?

13. Study cont. • How do communities adapt to the absence of young men? • Does the social structure change; inequalities decrease/increase? • What interventions by SDC projects need to be adapted to the absence of young men?

14. Research methods • Quantiative/qualitative with a certain number of households in the 4 VDCs • UCP analysis in all the SDC working VDCs • Discussions with groups (learning centers/CFUGs)

15. What kind of information would be important for you?

16. Next steps FEBRUARY • Decision on major questions • Discussions with potential researchers (Nepali/int) • Decision on methodology MARCH • Review of TOR by PT and by GPMD APRIL/MAY • Start of study (depends on availability of researchers) NOVEMBER • First draft