Capability Trap and Constrained Freedom: A Sociological Analysis of Nepal’s Remittance Economy

Abstract

During the last decade and more, Nepal has remarkably achieved its economic shifts and stability of macro-level institutions. With the help of remittance received against foreign labor migration, Nepal not only achieved in increasing its size of the economy, but also brought improvement in several other economic indicators. However, this achievement is not quite good and satisfactory, if it is viewed from the sociological eyes, from the lens of the capability approach developed by Amartya Sen. These indicators are creating confusion and giving misleading messages, because it is achieved by constraining human freedom, choices and options. Macroeconomic trajectory in brief. Thus, this paper critically assesses Nepal’s development paths, which narrowly focused on economic growth, rather than enhancing human freedom, based on the secondary data from annual economic survey for FY 2019/20 to 2024/25. Nepal has been receiving a significant amount of remittance, but on the great sacrifices of human freedom and fundamental capabilities like family unity and community participation.