Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010Index 2: World Market ConditionsTable 2.49Global Remittances Inflows 2005-09 (US$ billion):2005 2006 2007 2008 2009275 317 385 444 n/aSource: World Bank.There is a clear upward trend in global remittances, despite a temporary downturn during the global recessionin 2008/09.Prospect for Nepal in the Global Labour Market: Leaving aside India, the majority of current migration is to afew countries in the Middle East (Saudi Arabia, UAE, and Qatar) and Malaysia. This means that at least in themedium run the prospect for Nepalese to work abroad depends mainly on the demand for unskilled labour inthese economies. Figure 2.6 shows GDP growth projections for those countries and some other destinationsof Nepalese workers. If GDP growth is a good indicator for future demand for migrant workers, then theoutlook looks relatively good because most of these countries are expected to return to their pre-crisis growthrates.Figure 2.6 Current and Projected GDP Growth Rates for Major Host CountriesSource: IMF World Economic Outlook. Data for 2009 onwards are projections.Index 3: Domestic Supply ConditionsHow is the Sector Organized? Nepal has entered into labour agreements with several main receiving countries(Qatar, Saudi Arabia, Malaysia, and South Korea). There are around 600 FECs operating in Nepal and usuallyowned by Nepalese. Some provide only recruitment service and others a range of additional services liketraining, medical preparation, etc. People wanting to work abroad can use their services and it is estimatedthat around 55 per cent do so. The remaining 45 per cent use informal channels, eg they would typically travelto India and then from there to the final destination country. Due to the large number of FECs, including thoseoperating from abroad, there is a high level of competition between them.NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT97