Crossing the crude crash skillfully
None revels in being a prophet of doom. But at the same time, one would be deemed downright irresponsible if he chooses to keep mum despite seeing the writing on the wall. The inevitable has started happening. The falling crude oil price has started jolting the economy of petroleum-exporting countries. Taxes, hitherto unheard of in West Asian oil-producing countries, are in, to the utter surprise and consternation of the local populace. Subsidies are on their way out. Those luxuriating under the petro-dollar umbrella are dreading the prospect of soiling their hands to maintain their high living standards. Members of the Organisation of Petroleum Exporting Countries (OPEC), particularly those who were not wise enough to diversify into other economic activities and educate and train their indigenous people, are shell shocked.
Ironically enough, those who are willing to soil their hands and toil, today, face the prospect of job cuts, lower wages and worsening working conditions. I am referring to hundreds of thousands of Nepali migrant workers employed in OPEC states like Saudi Arabia, Qatar, Malaysia, Oman, etc. I had warned of this crisis in the June 2016 issue of this magazine in my column headlined Will Remittances Drown in the Crude Whirlpool. Though the OPEC crisis is fast aggravating, it has not been as much in the news for the last couple of months because of recurring incidents of Islamic terrorism in different parts of the world. Jihadism seems to be far more inflammable than petroleum, currently. But for an underdeveloped country like Nepal, where remittances from migrant workers account for 30 % of our gross domestic product (GDP), this is a matter of grave concern. It is directly linked to our economic sovereignty. Political stability and social equilibrium too are at stake.
Several countries having their migrant workers in the OPEC world have got into the crisis mode. They have been actively involved in rescuing their workers abandoned by insolvent or locked-out units in OPEC countries. India, Philippines, Sri Lanka, Pakistan and Bangladesh are extending a helping hand to their respective countrymen. Their ministers, top officials and diplomats are involved in either ensuring safe return for their people or in negotiating fair deals for them with different OPEC countries. This has produced positive results.
Unfortunately, Nepal is in a state of denial. Our powers that be refuse to recognise that our migrant workers are really facing a present and clear danger. Nothing much has happened apart from sundry government statements which serve no purpose of the harried Nepalese migrant workers in OPEC. But this should come as no surprise to us because, as of now, Nepal government has signed labour agreement only with Qatar though the government allows Nepali workers to seek employment in 108 countries. Till last reports, MoUs have been signed with Bahrain, Japan, South Korea, Kuwait and Israel; talks are on with Saudi Arabia, Malaysia, Oman, Jordan and Lebanon. But all these are a far cry from labor agreements which ensure higher level of employment security and benefits to migrant workers.
While a lot needs to be done on this front, the fact remains that Nepal cannot do without exporting its ablest young men and women even to the worst employment spots in OPEC and elsewhere. Our economic policies and planning over the decades have brought the country to a state of ruination. We have failed to become even a self-sustainable economy despite the fact that we are the only country in South Asia to have remained always free.
And what do our ablest youth working abroad manage to earn? The lowest wages compared to migrant workers from any other country. Why? Because we are the least skilled. We get the worst paid menial jobs. Nepal is seen as a provider of security guards, cooks, basic craft persons like carpenters, welders, electricians, mechanics, plumbers, etc., and domestic help. Not exactly a flattering image for the land of Everest!
Better trained nurses prefer to leave for foreign shores for higher quality of life. But there is little point in crying over spilt milk? Let’s get in to the solution mode: how to improve the technical vocational education and training (TVET) system in Nepal to enhance employability and ensure more remunerative and secure work opportunities for our migrating youth. In the meanwhile, the government will need to come up with innovative policies to gradually reduce the country’s dependence on foreign remittances. It needs to create an investor-friendly environment to attract foreign direct investment. It is strange that despite being a major recipient of foreign aid, grants and donations – something not to be very proud of – the government is paranoid about FDI as if that would let in hordes of barbarians and marauders. Our minds are closed but we open to our youth hunting for pittance in alien lands and adverse circumstances.
While Nepal’s outdated education system has failed to produce qualified professionals in the lucrative realms of information technology, IT-enabled services, medicine, engineering, science, media and entertainment, our society continues to look down upon vocational training, leaving our youth neither here nor there. In this context, it would be worthwhile taking cognizance of a 2013 custom research report for British Council by The Economist Intelligence Unit on skills development in South Asia. The report focused on the trends in Afghanistan, Bangladesh, India, Nepal, Pakistan and Sri Lanka. The report makes it amply clear that Nepal is lagging behind the other five countries. Much of the blame can be laid at the doorstep of the powers that be. The report discovered that India and Bangladesh have shown progress as high-level sector skills councils had been brought directly under the review of the prime minister. Let alone creation of task and profession-centric bodies, Nepal has yet to witness political will at such high level.
It needs to be understood that skill development will not only make Nepali youth more competitive for better jobs abroad but also enable them to be more productive within the country. After all, we do not expect
Nepal’s entire young generation to be in foreign lands. The private sector has a major role to play in skills delivery and financing. Public-private partnership (PPP), build-own-operate (BOO) green field PPP models, skills financing, development of soft skills like speaking English and other foreign languages, creating trainers and induction of experts from abroad, matching skills with the emerging needs of the job market, linking vocational training with higher academic streams are some of the desperately needed and much debated measures for Nepal. Last but not the least, skill enhancement campaign should not be confined to cities and towns; it has to be nationwide. Alas, real action on the ground is hardly inspiring!
Apparently, Nepal is still not open to foreign involvement in technical education and vocational training. The Economist Intelligence Unit quoted Dr. Kul Bahadur Basnet, then director of the country’s National Skills Testing Board, as saying, “Foreign providers have been considered, but that has not happened because of national policy.”
We need gyan but, strangely enough, are not willing to welcome gurus. Skill training cannot be scaled up without trainers. Simple to understand but so difficult to implement in our country.
Hope the new government dispensation is listening.
Basant Chaudhary is a Poet, Writer, The Chairman of BLC and Basant Chaudhary Foundation. ([email protected])
