The views expressed in this presentation are the views of the author and do not necessarily reflect the

views or policies of the Asian Development

Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee
the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not
necessarily be consistent with ADB official terms.

Innovative Approaches for the Effective

Management of Labor Migration in Asia :
Nepal’s Experience
Dr. Narayan Regmi
Joint Secretary
Ministry of Labour, Employment and Social Security
Government of Nepal
Nepal at Glance

Recent changes in labor migration

trends and related policies in Nepal

Challenges, problems and innovative

strategies

Conclusions
Nepal: A Snapshot
Population GDP Per Capita (Current USD)
29.5 900
Millions

29 800

28.5 700
600
28
500
27.5
400
27
300
26.5 200
26 100
25.5 0
2010 2011 2012 2013 2014 2015 2016 2017 2010 2011 2012 2013 2014 2015 2016 2017

GDP Composition (2017/18)

100%
90%
80%
70%
60% Service
50% Industry
40% Agriculture
30%
20%
10%
0%

Data Source: WDI/Nepal Economic Survey

 Outmigration and subsequent remittances is high from
Nepal
Volume of Legal Migrants Remittance (Volume and as Eq to GDP)
600000
8 35%
500000 7 30%
6 25%
400000
5
20%
300000 4
15%
3
200000 2 10%

1 5%
100000
0 0%
0
2009

2010

2011

2012

2013

2014

2015

2016

2017
Remittance (in Billion USD) Eq to GDP

Major Destination (2008/09-2016/17)

Trends in Outmigration by Country
250000
200000
150000
100000
50000
0
2012/13 2013/14 2014/15 2015/16 2016/17

Malaysia Qatar Saudi Arabia

UAE Kuwait Bahrain
Malaysia Qatar Saudi Arabia UAE Others Oman Data Sources: FEIMS and Nepal Economic Survey
 Governance system Labour Migration Adminstration

Federal MoLESS

Province (7) DoFE/FEPB

Local (753) Labour Office

Recent changes in migration related policies at
various levels with the collective goal of achieving
safe, orderly and regular migration.

Foreign
Constitution Employment
Act

Foreign
Employment Procedures
Regulation
 Foreign Employment Information
Management System (FEIMS) integrates all
Unilateral migration stakeholders for increased
transparency and up-to-date recordkeeping

Amendment to Foreign Employment Act

submitted to parliament
National Level
Demand attestation made mandatory

One Employment Service Centre at each

local level

Complementary efforts to promote Internal

employment such as the “Prime Minister’s
Employment Program”
 Countries Year Types of Agreement

Bilateral
International level Qatar 2005 Bilateral Labour
Agreement
Increasing importance given to United Arab 2007 Memorandum of
bilateral agreements. Emirates Understanding
Japan (JITCO) 2011 Memorandum of
Renewals of existing agreements Understanding
in progress : UAE and Qatar Korea 2007 G2G Agreement
Bahrain 2008 Memorandum of
New ones in the pipeline: Understanding
Japan, Oman and Saudi Arabia
Israel 2015 Memorandum of
Understanding
Jordan 2017 Bilateral Labour
Agreement

Malaysia 2018 Memorandum of

Understanding
 Nepal currently chairs the Colombo Process,
a regional consultative process (RCP) of 12
Regional Asian countries

CP operates through Thematic Area Working

Groups on ethical recruitment, skills,
National Bilateral remittances and labor market information
systems. Joint recommendations made by
Global Regional
RCP were all included in the Global Compact
for Safe, Orderly and Regular Migration.

RCPs need to be leveraged to prevent the

race to the bottom among source countries
that drives costs upward and wages
downward.

Nepal is also member of SAARC, Abu Dhabi

Dialogue.
 Nepal recently adopted the Global
Compact for Safe, Orderly and Regular
migration.

We are now gearing towards GCM

Global implementation with the following
National Bilateral priorities:
1. prioritization of objectives as per Nepal’s
need
Global Regional
2. examining what is already being
addressed at our engagements at the local,
national, bilateral and regional levels and
how best to utilize each platform
3. delegating responsibilities as per whole-
of-government and whole-of-society
approach
4. action-oriented and evidence-based
policymaking
Nepal is in the midst of a demographic bulge

A short window of opportunity till 2047 to turn this into a demographic dividend

Safe and productive migration is an important employment strategy

Source: Nepal Planning Commission

Traditional markets, especially in the Middle East, are shrinking due to
nationalization whereas destination markets like Japan and Korea are
accepting more Nepali workers due to aging.
This trend is likely to continue.

Source: PRB
But multiple challenges exist at each stage of migration.
Pre-Decision, Pre-Departure and Transit

• Malicious intermediaries and high recruitment costs

• Lack of correct information
• Fake demand
• Impatience to go abroad so not enough emphasis on skills
• Transit: Open border with India and unauthorized travel

During Migration

• Contract substitution
• Abuse (mental, physical, sexual)
• Lack of access to justice
• Domestic worker specific vulnerabilities
• Undocumented workers (runaways)

Return

• Lack of data on returnees

• Lack of comprehensive return programs
• Incidences of death and injuries
• Social costs of migration
..that require comprehensive, multi-level interventions
Information:
Pre-Decision, Pre-Departure and Transit  Information Centers
 Safe Migration Project
• Malicious intermediaries and high recruitment  Pre-departure classes
costs
• Lack of correct information Evidence Based Policymaking
• Fake demand  Foreign Employment Information
• Impatience to go abroad Management System
• Transit: Open border with India and unauthorized Transparent Recruitment
travel  Demand Attestation
 Recruitment Agency’s Security
During Migration Deposit
• Contract substitution  Decentralization of Services
• Abuse (mental, physical, sexual) Stronger Worker Protection
• Lack of access to justice  Bilateral Agreement with:
• Domestic worker specific vulnerabilities  Employer pays model
• Undocumented workers (runaways)  Bridging visa and legal
representation
Return  Legal change of employers
• Lack of data on returnees Returnee Reintegration
• Lack of comprehensive return programs  Soft loans for Returnees
• Incidences of death and injuries  Recognized Prior Learning
• Social costs of migration  Welfare Schemes for Returnees
Nepal’s migration policies put the worker at the center

Highlights of our innovations in migration governance:

• Comprehensive Foreign Employment Information

Management System (FEIMS) to promote evidence-based
policymaking and transparency
• Prioritization of bilateral agreements with worker friendly
provisions (esp. regarding costs and worker protection)
• Mandatory attestation of demand to prevent fraudulence
• Decentralization of services to the local level for easier
accessibility and monitoring
• Basic Salary in Destination Country
• SaMi Project