Concept of Foreign Employment

Foreign employment refers to the situation where citizens of one country go to work in another country for the purpose of earning income. In the present context, many young people from underdeveloped countries like Nepal are forced to migrate abroad due to the lack of domestic employment. 

According to the decision of the Government of Nepal, 110 countries have been opened for foreign employment so far. The main destination countries among them are Malaysia, Saudi Arabia, UAE, Kuwait, South Korea, etc. 

By the end of the fiscal year 2082/83 BS (2025/2026 AD), the number of Nepalese who have gone abroad for employment has reached around 4.5 million. This trend has not stopped and is increasing day by day.

The money sent by citizens of one country working in another country to their own country is called remittance. As the number of Nepalese citizens going for foreign employment has increased, remittances have also increased rapidly. 

In the fiscal year 2081/82 BS (2024/2025 AD), Nepal received approximately 917 billion rupees in remittances, which was about 28% of the total gross domestic product.

Importance of Foreign Employment

Foreign employment and the remittances received from it have significant importance for less developed or underdeveloped countries like Nepal. Since Nepal's economy is based on remittances, it is also called a remittance economy. 

The importance of foreign employment for underdeveloped countries like Nepal can be mentioned as follows:

(a) Solution to Unemployment Problem: Nepal faces a serious problem of unemployment. A large portion of the population is trapped in underemployment and disguised unemployment. Foreign employment has played a significant role in solving this type of unemployment problem.

(b) Remittance Income: Remittance income is received from foreign employment. As the number of Nepalese going for foreign employment has increased, remittance income has also been increasing. The importance of this remittance income is increasing day by day because it is the main source of foreign currency. A large trade deficit of Nepal is being filled by its help.

(c) Poverty Reduction: Income received from foreign employment is distributed in the households of the concerned workers. This increases the family income and also increases consumption. This leads to improvement in the standard of living, which helps in reducing poverty. Remittance is the main causative factor of the recent reduction in poverty in Nepal.

(d) Skilled and Trained Human Resources: People who go for foreign employment become familiar with high and new technologies. They also gain experience while working. After returning to their home country, they can use the skills, knowledge, and experience learned abroad.

(e) Increase in National Income: Remittances received from foreign employment play a significant role in increasing national income. This leads to capital formation, which helps in increasing production, and consequently, national income also increases.

Disadvantages of Foreign Employment

Despite the significant importance of foreign employment in Nepal, it also has disadvantages. 

The disadvantages of foreign employment can be mentioned as follows:

(a) Increase in Dependency: Although foreign employment is beneficial in the short term, it is very harmful in the long term. It increases dependency. Instead of developing the feeling among people to do something in their own country, it increases the habit of working abroad and using foreign goods.

(b) Brain Drain: Due to foreign employment, skilled, trained, educated, and healthy human resources in the country migrate abroad for attractive salaries. This creates a shortage of skilled human resources within the country. Nepal is currently facing this problem.

(c) Difficulty in Economic Development: When the country's skilled and capable human resources are attracted to foreign employment, there is a shortage of human resources needed in the country. This creates a significant difficulty in the country's economic development.

(d) Family Problems: Families of individuals who have been in foreign employment for a long time often face many problems. Misuse of income earned from foreign employment, children going astray, children dropping out of school due to the absence of parents, etc., are some of the problems that have arisen. Similarly, many cases of strained relationships and divorces between husbands and wives are found.

(e) Human Cost: The income or remittances received from foreign employment come at a high human cost or sacrifice. Living away from family, doing difficult and risky work in other countries, etc., are some of the costs of remittances received from foreign employment. Additionally, many Nepalese have lost their lives in foreign lands during the process of foreign employment.