Youth employment is not the solution, youth must become entrepreneurs- Shahi
According to a study, around 46.5% of Nepali youths are currently unemployed. This figure represents the number of youths who are actively seeking employment. The total population of Nepal is estimated to be 28%, but according to the Nepali government’s website, approximately 14% to 16% of the population, or 4.2 million youths, are working overseas. According to the data sent by Nepali youth in 2022, the government collects around NPR 1.07 trillion (USD 9.1 billion) from remittances, which accounts for approximately 22% of Nepal’s GDP. The government only relies on the data provided by these remittances, but if we consider an average of NPR 2,547,761 (USD 21,563) per youth, the government can understand the impact of remittances on the economy. Unfortunately, many young people who send remittances from abroad have experienced a lack of opportunity to develop entrepreneurship or create jobs in their home country. When they request funding and loans for their ideas, the government responds slowly or ignores them, making them feel hopeless. These disillusioned young people often return to the Gulf countries where they find themselves in difficult and challenging working conditions. 71.33% of these young people who send remittances continue to support their families in Nepal. When they return to Nepal, they face many challenges, including the lack of job opportunities, high temperatures of 40-45 degrees Celsius, and the struggle to provide basic needs for themselves and their families. Many of them feel compelled to return to foreign countries for work after experiencing these difficulties in their home country. If the state cannot do so, then why take money from poor people through remittances? Development infrastructure such as roads, transport, electricity, communication, and drinking water is not enough for development. The biggest development is the development of manpower and people’s happiness. Rich people in the world do not have to pursue employment because employment can only support their stomachs. They can hardly meet the basic needs of people in poor countries like Nepal with the minimum salary on top of their families, so they try to embezzle their money to meet daily requirements.
The wealthiest people in the world didn’t become rich just by getting jobs, but rather by being entrepreneurial, like individuals such as Microsoft’s owner Bill Gates, Jeff Bezos, Bernard Arnault, Warren Buffet, Larry Page, Sergey Brin, and Elon Musk. They had a good understanding that to be successful, they needed to prioritize entrepreneurship, and this mindset was essential to their development. However, in our country, when searching for entrepreneurship, we face obstacles such as legal barriers, lack of financial security, and lack of state investment. Nowadays, many young people cannot pursue businesses in their own country and are forced to go abroad to find work, leaving behind their families. Despite this, there are still those who withdraw funds from 15-20 lakh interest and take their entire family abroad with them, creating happiness. If you want a job, you can only get a salaried position, and you may become educated, but you may not earn much (for example, Rs. 30,000). However, if you want to be an entrepreneur, you will have more sources of income, and you will be able to provide employment for 2-4 other unemployed youth and your relatives. When you have a job, you have to work under someone’s control and face stress, insults, and other difficulties. What happens if you cannot find such a job in Nepal? Many young people have to leave their country to find work, which is unfortunate.
How can the state turn the youth who have gone to Gulf countries into entrepreneurs in their own country?
According to the Made for Minds study report, 2.7 million Nepalese youths are currently working in the Gulf countries alone. As we calculated above, the total remittances sent by these youths amount to Rs. 6 trillion 87 billion per year, based on an average of Rs. 2,761 per youth per year.The state government has made it mandatory for workers going abroad to have an account in the National Bank. The minimum amount that can be sent directly per person per month is Rs. 40,000 per annum, while sending Rs. 4,800 when the minimum 2-year visa expires can result in an income of Rs. 9,60,000. Based on the bank statement of the sender, if two unsecured loans are provided, the loan amount can be Rs. 19 lakh thousand. If the loan is based on the progress of the business and is made in installments, the investment amount is secured by the state. Also, it is ensured that no Nepalese youths in foreign countries send money through hundi, which is an illegal practice. The loan to be invested by the state is Rs. 19 lakh 20 thousand, and the total income generated is Rs. 9 lakh 60 thousand. A total of Rs. 28 lakh 80 thousand is needed to start the entrepreneurship, which can provide employment to at least 5 people going to the Gulf countries. If the youth entrepreneurship fund is established from 25% of the amount sent by the Nepalese youths in the 27 Gulf countries, it will amount to Rs. 71 trillion billion per year. Each Gulf youth can be given Rs. 19,60,100,000 for entrepreneurship, which can create employment for 6 more people. This will lead to the employment of millions of youths every year. After two years, the youths will receive 25% of the loan for entrepreneurship, and the loan taken by them will be repaid with interest. With the collected money, arrangements can be made for the next year. Within 5 years, the 2.7 million Nepalese youths who went to the Gulf countries can each become entrepreneurs, leading to production in every city, domestic exports even to foreign markets, and foreign capital import. Nepal will become a land of “development and happiness”.
How can we manage the finances to make thousands of youth entrepreneurs?
Yes, it is indeed a challenge, but now millions of youth can become entrepreneurs with a minimal investment. It is widely known that Nepal is an agricultural country, yet we struggle to sustain food production even for three months. In order to address this issue, the country needs to not only meet its domestic production needs but also export billions of tons of agricultural products to foreign countries while investing heavily in domestic development. Every local level should gather information on the skills and abilities of its citizens, particularly the youth, in areas such as agriculture, health, business, and industry, and make decisions accordingly. Providing subsidies for seeds and modernizing agricultural tools for the youth could turn them into entrepreneurs, strengthening the economy of the state and increasing tax revenues. For example, a fish farmer could provide fish while a clothing entrepreneur could export Nepali-made garments with government subsidies. Currently, numerous constructions are underway at the local level, but the budget meant for development is often diverted due to financial embezzlement. For instance, Kalikot district alone has around 39,000 houses. If 10,000 youths want to cultivate potatoes with 1,000 kg of potato seeds each, then they would require 1 million kg of seeds. By 2020, there were 20 crore (200 million) seeds and 10,000 young entrepreneurs. With 20 million seeds and Rs. 20 billion in income, at least 1 billion kg of potatoes could be produced three times a year. Young entrepreneurs could earn billions of dollars and give back five times more than the state subsidy. Why is the state not creating employment opportunities for the youth? Why can’t young people create their own wealth? For just 20 crores, 10,000 young entrepreneurs could be created, while 800 crores + 200 crores could be provided to create 39,000 young entrepreneurs with modern agricultural tools. If the state invested 77 billion, it could create 3 million youth entrepreneurs, who could then provide employment to at least 6 million people. Why do young people seek employment with Khadi? Why do they protest in the streets?
How can the country provide opportunities to the youth who have gone abroad for development?
According to a study by Marcotrends, 5.66 percent of Nepal’s total population, which is around 1.7 million Nepalese, are living abroad for various studies, research, and businesses, earning a minimum of 4 lakhs per month, and receiving various services. This may bring happiness to Nepal’s in the short term, but not in the long term. Why? Nepali citizens are not given the opportunity to participate in Nepal’s constitution, policies, and construction, while foreign citizens and countries are involved. If Nepali citizens lack skills, then how did senior ophthalmologist Dr. Sanduk Ruit or Nepali youth Lujendra Ojha, who is working at NASA, achieve such success? Nepal is a country rich in nature, water resources, minerals, climate, herbs, culture, etc. As science and technology advance globally, it is necessary for the Nepalese government to give opportunities to skilled Nepalese citizens living abroad to work in various policymaking, political, research, and high-level official positions. By giving space to technocrats of science and technology for exploration, the state’s economy could be supported by manufacturing state-of-the-art equipment such as agricultural implements and health equipment. Singapore’s main source of income is tourism, and Nepal can attract about 1.5 million tourists every year by aiming to bring in only 50 percent of its total population of tourists, which can generate a total income of Rs. 15 billion if at least one tourist spends only Rs. 1 lakh. In 11 months, the Nepalese government imported petrol and diesel worth about 2 trillion 48 billion and imported petroleum products worth 22 billion in one month. If the Nepalese government had encouraged the skilled labor force and created a petroleum mining industry in the country, thousands of youths would have been employed, and they would not have had to send around 2 trillion 60 billion abroad every year. If India stops providing petrol, Nepal will face severe problems. Last year alone, Nepal imported green vegetables worth Rs. 34 billion, and edible rice was worth Rs. 59 billion within 11 months of import, while drinking water worth around Rs. 61 crore has been imported, despite Nepal being the second richest country in water resources globally.
Author:
Basant Kumar Shahi
Young Scientist
National Youth Award- 2017, Government of Nepal
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