International Migration, Remittances and Subsistence Farming: Evidence from Nepal

Abstract

Although international migration is playing an increasingly important role in Nepal, at both the macro and household levels, and in particular for the poverty reduction of rural families, empirical work focusing on this phenomenon has been largely absent. With a special view on the rural poor, in this paper we investigate the impact of international labour migration on subsistence agricultural production in the Western Mid Hills of Nepal, based on a survey conducted among smallholders with migrating family members. The results demonstrate that international migration leads to negligence of cereals – paddy, wheat, maize and millet, in particular, being the major subsistence crops. While bearing a negative impact on family labour input, its impact on hired farm labour is positive. Yet it does not affect material inputs such as fertilizer, and although it helps to ease households’ liquidity and capital constraints, it does not contribute to moving subsistence farming towards more profitable commercial farming. Therefore, although migration reduces poverty in the short run and also allows for higher daily consumption, its negative impact on cereal production requires attention by policymakers.

Household Livelihood Strategies and Implication for Poverty Reduction in Rural Areas of Central Nepal

“…This result seems reasonable because growing outmigration to cities and abroad prompted by limited employment opportunities and low profit from subsistence farming in the rural areas has been increasing the households receiving non-farm income including remittance and non-farm wages. The increasing role of remittance and non-farm income in households and the national economy in Nepal is widely discussed in the empirical literature and national reports [30,57,58]. As indicated by the results, very few (only about 10%) households are found in the diversified subsistence group which is represented by households that generated higher income from cereal and livestock sales.…”

A new Himalayan crisis? Exploring transformative resilience pathways

“…Development efforts in the mountains through some government and international aid projects have appeared to be less effective and largely anecdotal which instead created dependencies by stymying the emergence of local innovations. Mountain people (particularly working age males) are moving for jobs and employment to cities and foreign countries, leading to an unprecedented change in social, economic and cultural domains (Adhikari and Hobley, 2015;Sanders and McKay, 2014;Gartaula et al, 2012;Maharjan et al, 2012;Adhikari et al, 2006;. This is being catalyzed by a silent revolution of communication and mobile technologies.…”

“…Moreover, mountain areas in the Himalayas have not benefitted much from the money and skills earned by its residents through working elsewhere (abroad or in bigger cities). For example, although remittance contributes approximately 29 per cent to Nepal's Gross Domestic Product, there is little evidence to suggest that the money is being circulated into or invested in the development of mountain areas (Sanders and McKay, 2014;Maharjan et al, 2012;Adhikari and Hobley, 2015). Remittances have rather been invested more in consumption, causing the imports of goods and services to rise rapidly.…”

“…Remittances have rather been invested more in consumption, causing the imports of goods and services to rise rapidly. In some cases, the shortage of labour caused by out-migration and use of remittances for the import of goods and commodities, have led to a tendency towards luxury lifestyles, a decline in local production, a shift away from existing food habits based on local foods, and consequently leading to a decline in agro-biodiversity and diversity in food consumed (Gartaula et al, 2012;Maharjan et al, 2012).…”

“…As a result, land ownership is becoming fragmented, and productive agricultural land is being abandoned in the villages and being used for rapid building in the cities. Rapid urbanization and haphazard globalization/glocalization on agrarian political economy base of the Himalayas have not only affected people's livelihood choices, but also brought negative impacts to local cultures and nature (see for example, Gurung, 1992;Gartaula et al, 2012;Maharjan et al, 2012).…”