Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010Contribution to Skill Development: There is some contribution to skill development because of some trainingprovided to migrant workers. However, as most of them do low-skilled work abroad, the contribution to skillsthrough migration (‘brain gain’) appears limited.Impact on Development of Disadvantaged Regions: Many of the migrant workers come from disadvantagedrural areas in Nepal and contribute positively to the development of these regions through remittances.Market Attractiveness IndexAn index of attractive markets for labour services (ie potential destination countries for Nepalese migrantworkers) was calculated using the World Bank data on remittances outflows by country. However, one caveatis that remittances also include transfer payments by ‘permanent’ migrants. For example, most remittancessent from the USA would fall under this category. Some of the current destinations of Nepalese migrantworkers, such as Saudi Arabia and Malaysia, can be found on the list. No data is available for Qatar and UAE,two of the current major destinations. Whether additional countries could become future destinations formigrant workers depends obviously on a large number of factors, in particular whether countries provideaccess to the market.Table 2.50Attractive Markets for Temporary Labour ServicesAttractive markets for Labor ServicesTop 20 - ranked by remittances outfl owsRemittances sent from country (US$ billion,Rank Countryaverage for 2007 and 2008)1 United States 46.42 Russian Federation 22.03 Switzerland 17.64 Saudi Arabia 16.15 Spain 14.96 Germany 14.37 Italy 12.08 Luxembourg 10.19 Netherlands 8.110 Malaysia 6.411 China 5.112 United Kingdom 5.013 France 4.514 Oman 4.415 Japan 4.416 Norway 4.217 Kazakhstan 3.918 Kuwait 3.819 Korea, Rep. 3.820 Belgium 3.4Source: World Bank, based on IMF Balance of Payments Statistics 2008.NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT99