Power, Policy and Labor Migration: Enhancing Bargaining Power

International migration is inherently a transboundary issue, and the problems associated with it transcend borders that cannot be contained by a single state. This is why there is a growing need for global governance to address the issue systematically. However, the prominent roles of states of origin and the growing complexity of bilateral and multilateral migration negotiations are often not included under the jurisdiction of global mechanisms designed to regulate and govern the international labour migration process.

Migration diplomacy has been a strategic tool for advancing broader foreign policy objectives, even though diplomatic officials have often considered it less critical than Cold War and nuclear concerns. This approach integrated breakthroughs in diplomatic history scholarship with emerging perspectives in migration studies, revealing that migration issues—though considered secondary—were actually significant and carried real risks. Foreign policy establishments frequently leveraged migration issues to achieve their primary goals, often disregarding the substantial hardships this caused for the migrants themselves.

In Nepal, available data indicates that over four million youth have obtained labour permits to work abroad, primarily in Gulf nations and Malaysia.

Among them, the number of female workers remains significantly low. Over the past decade, more than 12,000 Nepali migrant workers have either lost their lives or sustained severe injuries at work, in these destinations.

The power dynamics between the countries today are not balanced, nor were they in the past. The wealthier and more resourceful states have always had an upper hand in negotiations or bilateral agreements. Currently, Nepali labour migrants are employed in over 172 countries worldwide, with more than 85% (excluding those in India) concentrated in the Gulf region and Malaysia. While all these nations are members of the International Labour Organization (ILO), none are members of the International Organization for Migration (IOM), though Qatar and Saudi Arabia hold observer status.

None of these countries are signatories to the 1949 Migration for Employment Convention, the 1975 Migrant Workers Convention (Supplementary Provisions), or the 1990 International Convention on the Protection of the Rights of All Migrant Workers and Members of their Families.

As a result, despite widespread international concern and active involvement from various countries, the instruments in place to tackle lapses in international labour migration trends are rendered more or less ineffective. The diplomatic tools and techniques in place used for diplomatic intervention, however, are subject to difficulties manoeuvring the legal system in place at the destination countries, the dilemma of advancing economic relations while maintaining friendly diplomatic ties on the one hand and innovating measures to address the issues of labour migrants on the other.

Migrants often endure numerous challenges throughout the migration process, posing significant risks to their physical, mental, and social well-being. Even after reaching their employment destination, migrants often encounter various forms of exploitation, low wages, and social exclusion, all of which have a negative impact on their health and family life—both abroad and back home. These instances also replicate the importance of labour governance in Nepal and destination countries with effective diplomatic procedures. 

Labour diplomacy is a crucial element for economic growth, soft power projection, and advancement of national interests, especially for labour-sending countries like Nepal. The nature of labour diplomacy varies depending on a country’s role as a sending, receiving, or transit state and is closely interconnected with migration governance, national interests, and geopolitical dynamics.

As for Nepal, despite national, bilateral, and international policies governing labour migration, ensuring safe and secure conditions for migrant workers remains a persistent challenge.

Nepal has signed labour agreements with 12 destination countries at various levels to update its policy framework, improve governance, and diplomacy efforts. However, there are significant gaps between policy formulation and enforcement. Several major destination countries have yet to sign agreements while some existing agreements need an update.

Amid these gaps, Nepali migrant workers continue to face exploitation, low wages, and social exclusion, adversely affecting their well-being, and also families. Structural barriers at the origin-destination and within international mechanisms create a cycle of vulnerability for Nepali labourers. While remittances significantly contribute to Nepal’s GDP, inclusive economic growth remains elusive due to social and political challenges.

Economic prosperity, national security, and the promotion of national interests are fundamental drivers of a nation’s diplomatic efforts. The existing challenges concerning labour diplomacy have been dissected, and governance mechanisms have identified the socio-economic variables affecting Nepali labour migration policies. This has led to the conclusion that even though remittances account for a large quarter of national GDP, inclusive economic growth remains unachieved due to persistent social and political impediments.

To address these challenges, Nepal must reinforce its labour diplomacy by enhancing its bargaining power, aligning domestic policies with economic priorities, and improving coordination between domestic and international institutions. Effective governance, diplomatic innovation, and a specific focus on migrants’ rights and welfare are essential to protect Nepal’s labour force and ensure sustainable economic growth.