Youth Unrest and Economic Challenges in Asia

The article discusses the socio-economic challenges facing several Asian countries, particularly focusing on Nepal and drawing comparisons with neighboring nations such as Bangladesh, Indonesia, and Sri Lanka. It highlights the impact of youth-led uprisings, corruption, and high unemployment rates among young people in these regions.

Key Points:

• Youth-Led Uprisings: Nepal's youth have recently expressed anger towards the political elite, particularly the "nepo kids" of political families flaunting wealth on social media. This reflects broader discontent among young populations in Asia, whose aspirations for a better life have been stifled despite economic growth.

• Corruption Rankings: In 2024, Nepal obtained a corruption score of 107 out of 180 countries in Transparency International’s report, with Bangladesh ranked 151, Sri Lanka at 121, and Indonesia at 99.

• Economic Discontent: Youth frustrations stem from discrepancies between economic growth and their living conditions. Although significant growth has been reported in these nations, the benefits have not been felt by the younger demographic entering the labor market.

• Demographic Challenges: As per the United Nations’ World Population Prospects 2024, the median ages in the countries examined are relatively low, with Nepal at 25 years and Bangladesh at 25.7. Young populations are expected to spur economic growth—a potential demographic dividend. However, many of these countries are struggling to convert youthful demographics into employment opportunities.

• Increasing Unemployment Rates:

  • Indonesia: National unemployment stood at 4.91% in 2024, but it rose dramatically to 15.34% for the age group 20-24.
  • Bangladesh: Total unemployment for 2023 was reported at 3.35%, with 15-24 age group unemployment at 8.24%.
  • Nepal: The unemployment rate reached 12.6% in 2022-23, increasing from 11.4% in 2017-18. This is exacerbated by a heavy reliance on foreign employment and remittances, which constitute about a quarter of Nepal's GDP.

• Challenges in Job Creation: The Asian Development Bank indicated failures in job creation despite overall economic progress. Traditional sectors such as auto electronics and textile industries, once major sources of employment, have diminished due to automation and mechanization, leaving fewer entry-level jobs available.

• Risks to Economic Stability: The World Bank has warned that South Asia risks missing its demographic dividend. From 2000 to 2023, only around half of the jobs needed were created in the region, thereby straining economic prospects.

• Policy Response Needed: Experts emphasize the urgent need for government intervention to foster job creation in emerging sectors to retain talent and ensure sustainable economic growth.

Conclusion:

This analysis of the current economic climate in Nepal and surrounding countries illustrates a critical juncture where youth frustration, government corruption, and lack of job opportunities threaten socio-economic stability. Addressing these issues effectively could be vital for capitalizing on the potential demographic dividend these countries possess.