Saturday, May 18, 2013

Diaspora in Nepal's Development (2011)


Diaspora in Nepal's Development

Dr. Ambika Prasad Adhikari*



“The world is a book, and those who do not travel read only a page”.  ~St. Augustine


American author Jack Parr has labeled Immigration as the “sincerest form of flattery”. People have always moved in search of new opportunities and a better life, and have settled where the quality of life was higher. In more recent times, the immigration from Europe to the new world has proved that immigrants can build new countries, and eventually rebuild their own native lands too.  The Jewish, Chinese, Indian and Irish Diaspora have proved that a once “brain-drain” eventually becomes a “brain-circulation” around the world, and many individuals either return or in other ways help the native society.

Although the movement of Nepalis outside the country is as old as the country itself, the character of emigration from Nepal has drastically evolved in recent times. The early NRN’s, after Nepal became a nation-state almost 300 years ago, were moving to the immediate vicinities in neighboring countries in search of livelihoods.  Subsequent to the Sugauli treaty in 1816, the famous “Lahure” culture of Nepalis serving in foreign army became the mainstay of employment for many people and provided an opportunity for Nepalis to see the world and demonstrate their bravery.

More recently, since 1960’s and particularly since the eighties, the movement of Nepalis for permanent settlement to Europe, North America, Oceana and now in East Asia has risen exponentially.

The Nepali Diaspora has always remained well connected to Nepal emotionally, culturally and also financially.  The remittance of Nepali workers in the Gulf and other Asian countries solidly buttresses the Nepali economy. The Diaspora is active in educational and technology exchanges between Nepal and the outside world.

Further, the Nepali Diaspora played important roles both during the people’s movement of 1990 and the 2006 Jana-Andolan – II.  In particular, the Diaspora in North America, Europe and some other countries, mobilized its strength and networks to pressure the incumbent governments in Nepal to more quickly yield to the democratic forces.

Support in Rebuilding of a Nation

Many Diaspora groups have helped build their native lands, while some are even providing significant support to sustain their native countries in spite of huge challenges of security and economic development. The Israel Diaspora’s support in nation-building of Israel and sustaining its economy and security for a perennially security-challenged country is legendary.  Similarly, the Irish Diaspora has historically supported the economic development of their native lands.  More recently, the role of Taiwanese, Korean, Chinese and Indian Diaspora in supporting the meteoric rise of their respective country has been well established.

Nepali Diaspora – the New Phenomenon

Although the movement of Nepalis to the nearby lands has occurred since history, their movement and subsequent settlement in far flung lands is a more recent phenomenon. The rate and scale of recent movements and settlements of Nepalis in North America, Oceania and Europe have been rather dramatic. For example, according to reports, the rate at which the Nepali students in the US are arriving has been nothing but extraordinary. In 2009, more than 11,500 Nepali students were studying at the institutions of higher learning in the USA.  The number of Nepali students in the US ranks 11th among all foreign students there. Amazingly, among the students from South Asia in the US, the number of Nepali students is second only to India, and it surpasses those from much larger South Asian nations, such as Bangladesh and Pakistan. 

Similarly, some 10,000 Nepali students study in Australia, and more than 8,000 are believed to be studying in UK.  Many students who come to the OECD countries for education end up staying there permanently.  Thus the sum total economic muscle, brain power and networking capital of the Nepali Diaspora is increasing rapidly and is already formidable.  For example, it is estimated that some 250,000 Nepalis have made in the US and Canada.  A quick calculation provides and estimate that their combined household income amounts to some 12 billion USD per year, and amount equal to the total Gross Domestic Product (GDP) of Nepal!

Potential Contribution of Diaspora

It is common knowledge that the Nepal’s economy is significantly buttressed by the remittances from the Diaspora, estimated to be around 22 percent of Nepal’s GDP.  This phenomenon is not much to be proud of, as more than two million Nepalis have left the country in search of foreign employment.  A vast majority of them perform difficult and menial tasks in the Middle East, Malaysia and Korea.  Many toil in the scorching heat in the deserts of Saudi Arabia or the Emirates. However, given the conditions in Nepal, even such employment in low salaries are better than being unemployed at home where even a bare survival can be a struggle.

The members of the Nepali Diaspora can help towards alleviating this very situation in Nepal.  They can partner with the Government of Nepal and help the Nepali economy transform into one which provides employment, well-paying jobs, and lifts the standards of living of its people. Ideally, it is best if Nepalis can find employment within Nepal’s borders.  However, if they seek foreign employment, with better training and education, Nepalis can land up better jobs and command higher salaries.

Many NRN’s have acquired high level positions in prestigious universities, large multi-national companies, international financing agencies, and powerful governments in their adopted lands.  They can mobilize these valuable connections and institutional resources to strengthen the educational and economic attainment in Nepal.

How to Transform the Nepali Economy

A nation can only be developed by its people who live within its borders.  However, a significant push can be provided by the outsiders, and the Diaspora is often best poised to provide such support.  The Diaspora understands the ground reality, it feels the pain of the people back in the native lands, and it often knows what works and what does not.  Many successful Nepalis abroad have walked barefoot to schools for miles when they were young in Nepal; they have experienced firsthand the abject poverty and lack of any social support.  They have also figured out a path to break out from the shackles of underdevelopment and attain success in the global marketplace.  Because of their own experience, they are well poised to advice and support the Government of Nepal in its efforts to uplift the masses.

For example, the economic development in Nepal will greatly benefit from the infusion of foreign capital and advanced technology.  More importantly, Nepal will need a new breed of entrepreneurs to jump-start the Nepali economy and take the country through an accelerated path towards prosperity.  Many members of the Diaspora, particularly in the western countries, are in a position to make, and leverage significant investments in Nepal.  A few returnees from North America have already made their marks as entrepreneurs in hydro-power, banking and food industry.

One fundamental pathway to increase people’s income in Nepal, and catalyze economic development is through investment in education, particularly in higher education that produces experts and skilled manpower in science and technology.  There are thousands of members of the Nepali Diaspora in developed countries who can provide significant distant education to the Nepalis living in Nepal. As a part of NRNA project, a North American team has recently initiated an “Open University of Nepal” project which is conceived to be a collaborative work between the Diaspora and the Nepali Government.

Conclusion: Investment in Finance and Education

The Nepali Diaspora has supported many smaller and scattered projects in Nepal.  It has also invested in education, albeit only marginally so far.  A critical mass of expert, entrepreneurial and prosperous Nepalis has now emerged globally, with enough strength to take a collective action in Nepal.  These actions should be big and dramatic, and not just of the marginal and incremental scale that the Diaspora has implements so far.

Nepal also has experimented with many development plans and paradigms without much success.  Although serious political and organizational problems remain, Nepal has embarked on a fully democratic process. Nepal’s only two immediate and contagious neighbors have taken off in economic development.  In fact, both China and India are now regarded as the economic tigers of the 21st century.  This fortunate geographic lottery coupled with democratic dynamism gives tremendous impetus to Nepal to develop, provides immediate markets for its products, and also gives confidence that dramatic propulsion of the economy is possible in the region.

The Nepali Diaspora has to think big and make big plans.  A massive investment in infrastructure, education and technology is what Nepal needs to take off.  The Diaspora is capable of providing a big push to the Government and private sector in Nepal to build a formidable partnership.  Nepali Government, its private sector and the Diaspora can create a winning collaboration to create and implement large scale development programs in Nepal.

Referring to the mountain of problems in his country, Israel’s first Prime Minster David Ben-Gurion once said “In Israel, in order to be a realist you must believe in miracles”.  Although the problems in Nepal appear to be insurmountable, miracles are certainly possible in Nepal, as the human ingenuity and hope drives the development in the country. A Gurionian view of realism and faith must prevail in Nepal for the native citizens and the Diaspora alike to dream and realize unprecedented prosperity in Nepal.


Dr. Ambika Adhikari, an urban planner, is affiliated with Arizona State University. He is an Advisor to NRNA-ICC.

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