Retain Youth For Development Of Nation

With a median age of population of 26 years, a country has a high possibility of attaining a desired level of economic growth. But this assumption cannot always be true. The continuous exodus of the youths has triggered a fear of plunging Nepal's socio-economic landscape into a dire strait. This has awfully exacerbated the issues of an ageing population, increased dependency ratios, and a stalled transition to a more industrialised and service-oriented economy. Over 65 thousand youths between the ages of 18 and 45 are leaving the country each month in search of better opportunities abroad. Particularly, the number of students leaving the country for higher education is more upsetting. This mass exodus of the working-age population, deemed to be the backbone of Nepal's labour force, poses a significant threat to the nation's demographic dividend.

Nepal, like many developing countries, has been grappling with a critical situation where the proportion of its working-age population is higher than its dependent population, with a unique opportunity for vibrant economic growth. However, if this trend of youth migration continues unchecked, the country risks squandering this demographic advantage. Policymakers and socio-economic analysts fear that the loss of educated, skilled and semi-skilled labour, coupled with a shrinking productive workforce, will lead to a severe labour shortage, reduced productivity, and a decline in economic output.

 If things go unchecked, it is feared that Nepal will become an old nation without becoming rich. It may lose the window of opportunity to harness its demographic dividend, leaving the country vulnerable to long-term economic stagnation and social instability if there arises any delay in taking measures to retain and engage youths – particularly the educated ones.

The impact of the exodus has started simmering in the Nepali society. The real challenge lies in creating an environment within Nepal where young people can thrive and build a prosperous future on their own.

Brain drain impact

It will not only hamper the country's socio-economy but also trigger a big question about the existence of the society in the long run. The most terrifying rate at which Nepal’s youth are leaving the country can be attributed to a number of factors that range from political instability and corruption to the deep-rooted culture of going abroad as a migrant. Political instability and corruption have further exacerbated the problem. 

Poor governance and a lack of transparency deter both domestic and foreign investment, stifling business growth and job creation. Apart from that heavy reliance on traditional sectors, such as agriculture, without significant diversification into high-value industries, it limits opportunities for innovation and career advancement.

Reversing the outflow of students immediately is a challenging task. However, concerted efforts of both public and private sectors would be required to tackle this dire situation. The government must adopt a multi-faceted approach that addresses the root cause of youth migration to tackle these challenges.

One of the major approaches that has to be addressed immediately would be the creation of employment. To generate more jobs, Nepal must focus on creating an investor-friendly environment that attracts multinational companies. Offering incentives such as tax breaks and streamlined regulatory processes can encourage foreign investment. In this regard, public-private partnerships can be encouraged to launch large-scale job creation initiatives, particularly in sectors with high growth potential such as IT, tourism, and indigenous products. Besides, fostering an entrepreneurship culture could be a solution to encourage youth retention in the country.

Entrepreneurship plays a pivotal role in retaining Nepal’s youth by providing them with opportunities to create their livelihoods. Establishing venture capital funds, micro-finance schemes, and low-interest loans specifically targeted at young entrepreneurs. Nepal lacks incubator centres to make ventures survive. Setting up business incubator centres in all provinces can provide mentorship, technical assistance, and networking opportunities for startups. On top of that, tax incentives, such as tax holidays and reduced rates for startups in high-potential sectors like IT, manufacturing, agriculture, and tourism, can further encourage entrepreneurial activity.

Yet another strategy could be ‘reform the education system’. It is often said that overhauling the existing education system to make it more relevant and economically viable should always be the priority. Most importantly, it can be achieved by integrating vocational training, digital literacy, and entrepreneurship into school curricula.

Strengthening partnerships between universities and industries is crucial to provide students with practical, project-based learning experiences. Skill-based vocational institutions play a vital role in the promotion of entrepreneurial growth to support the economy. Hence, establishing vocational training centres that offer technical education in fields such as IT, engineering, data analytics, artificial intelligence, renewable energy, and business management would attract young people with the skills required in a competitive job market.

Reform in the education system alone would not work. Mandatory work-integrated learning programmes, such as internships and apprenticeships, should be incorporated into higher education to give students hands-on experience. Promoting flexible work models, including remote work, freelancing, and gig economy opportunities, can also help diversify earning options within Nepal.

For a landlocked country like Nepal, the concept of special economic zones (SEZs) has a vital role. It can attract both foreign and domestic investment, fostering large-scale industrial growth. Investment in infrastructure, such as dry ports, industrial parks, transportation networks, and digital connectivity, is essential to support business expansion. The IT industry is thriving, so Nepal can be developed as a hub for IT outsourcing and technological innovation. The country can tap into the global digital economy and create high-value jobs.

Yet another important aspect is governance, which can be taken as the cornerstone of any successful development strategy. Reinforcing anti-corruption mechanisms and promoting transparency can rebuild trust and encourage local investment. Implementing a merit-based recruitment system for public sector jobs can curb nepotism and improve the quality of leadership. Decentralising opportunities by empowering local governments to design job and education programmes tailored to regional needs can ensure that development is inclusive and equitable.

Nepal is predominantly an agricultural economy, and tourism is also a sector with immense potential for job creation. Promoting smart farming technologies, agro-processing industries, and international market access for Nepalese agricultural products can revitalise the sector. Similarly, developing sustainable tourism, including eco-tourism, cultural tourism, and adventure tourism, can create diverse job opportunities. Government support programmes, such as subsidies, training, and international market linkages, can empower young entrepreneurs in these sectors.

Structured rollout plan

To ensure the success of these strategies, a phased action plan for an implementation approach that includes short-term, medium-term, and long-term approaches needs to be put into action. In the immediate future, the focus should be on launching skill-based training programmes and digital literacy campaigns to equip young people with the skills needed for the modern economy. The establishment of industrial zones and technology parks to attract investment would be crucial for job creation. Besides, strengthening governance practices to boost investor confidence should also be a priority. 

In the long term, the focus should be on fostering global collaborations through industry-academic partnerships. Positioning the country as a regional hub for IT, tourism, and green energy would be key to ensuring sustainable economic growth. Nepal can create a self-sustaining ecosystem for employment generation with the adoption of eco-friendly economic governance practices.

Youth are the most valuable assets of a nation. Retaining them is always essential for a country's development, which can be learnt from our neighbouring country, China. Nepal can build a growth-oriented ecosystem that discourages mass outflow by implementing comprehensive reforms in education, creating employment opportunities, fostering entrepreneurship, and ensuring political stability. 

Hence, these strategies could provide a pathway for the country to become a land of opportunity with its own identity where youths can learn, earn, and make their future on their own soil.

(The author is a research scholar at the Faculty of Management, TU.)