Remittances, Migration and Inclusive Growth: The Case of Nepal

Type Working Paper
Title Remittances, Migration and Inclusive Growth: The Case of Nepal
Publication (Day/Month/Year) 2013
In recent years, many policymakers have shifted their focus away from a narrow concern with GDP growth towards a broader target of ‘inclusive growth.’ This concept is understood to encompass both a lasting reduction in absolute poverty and a more equitable distribution of the gains from growth (UN, 2010). In other words, the focus has shifted from the quantity to the quality of growth. This paper reviews the unique experience of Nepal, a land-locked least developed country in South Asia, bringing out lessons from the Nepalese experience which have wider applicability. In Nepal, as in other countries, increasing attention is being given to the inclusivity of growth. In particular, we observe the importance of remittances in reducing poverty in Nepal. But the impacts of remittances and migration on poverty should not be understood only in relation to increased household incomes and consumption. Rather, a more holistic understanding is necessary that considers how remittances can shape social behavior more broadly, including by raising expectations and increasing opportunities. This policy brief covers, in a digested format, many of the issues examined in a 2013 ARTNeT working paper by the same authors (Maskay and Adhikari, 2013).

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