Sunday, April 17, 2016

Capitalizing the Youth Energy


Nepal is a young country with about 70% (i.e. 15.91 million) of the total population below the age of 35 years. Approximately 38.8% of total population is marked by the age between 16-40 years. It is for that reason our country Nepal stands as one with lowest median age of 22 years. In spite of its youthful population, Nepal has not been able to mark rapid economic development in absence of stable political situation and policies to govern the youth employability issues.

It is estimated that every year 500,000 jobs needs to be created to provide full employment to the youth force that enter the labor market. However it is no surprise that only a fraction of those youths get job in local market while most of them are bound to leave country for employment opportunities. Figures estimate that approximately 350,000 to 400,000 youths leave the country each year as a migrant worker. It is a matter of fact that around 1500 youths leave country each day in search of better future abroad, most of them being as migrant worker.  Rests are either educated youths who land to developed countries in search of better future or youths who stay in country; unemployed and mostly uneducated.

PC: www.uphondo.com


While the population of youth is very large in Nepal, the status of youth in workforce is somehow poor. Most of the youths who leave country as migrant worker are unskilled. This not only leads to ill-treatment of the workers abroad, but also results to low per capita remittance flow to the country.  In spite of this, remittance from abroad contributes more than 25% of GDP, which is nearly double the country’s revenue from export of goods and services. However the pity being that remittance has not been channelized towards investments in wealth creating projects. Beside migrant workers, the migrating trend of educated youths is in the rise. This sometimes leads to dearth of qualified workers in national projects of long term strategic importance. The disappointment also being that the sectors which have maximum involvement of youths are also not effectively managed. For example, agriculture sector which employs about 74% of total labor force has contribution to GDP of less than 35%.  As such the nation has not been able to capitalize most out of its youthful population.

 With around 70% of total workforce integrating into international labor market every year; it is evident that this trend will increase even further.  The median age of Nepal is 22 years and with population growth rate of 2%, it will decline further. While proportion of labor force is decreasing significantly in western world, that of Nepal is increasing. As such Nepal has comparative advantage in the global context, with regard to the labor force. As a least developed country (LDC) aiming to graduate from LDC by 2022, Nepal is still to use its resources for rapid development, including the human resources. Success to develop quality manpower will not only contribute more for national building but also increase remittance from abroad.


As such, the need of time is to address the youth employability issues via proper policy. A recent improvement in this direction has been the introduction of Employment Policy 2015. The policy aims to provide training to youths in sector of strategic importance like agriculture, hydro-power, tourism, manufacturing etc. It also aims to promote entrepreneurship spirit by providing seed money to aspiring youths while also linking them to domestic markets. Thus the policy does not only envisage creating employment opportunities in local market but also aims to improve the status of migrant workers by providing them necessary training. However, government should consider a proper implementation of this policy unlike the erstwhile Youth self-Employment program of providing Rs.200,000 per youths as seed money where the fund was found to be misused by most of the party aides. Failure to do so would have serious ramifications in long term where Nepal might enter into phase of economic colonization as suppliers of clerks to the whole world. 

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