Abstract
This study provides a political-economic analysis of the roots of, and the relationship between, the process of underdevelopment and external migration in Nepal. While the internal institutional policies were responsible for initiating these two economic and demographic processes, British India's Gorkha recruitment policy contributed to their perpetuation. Today, Nepal's economy is trapped in a negative feedback cycle in which underdevelopment fuels outmigration which, in turn, propagates underdevelopment. Regardless of the nature of its socioeconomic impact, outmigration from the hills has emerged as a major economic survival factor for many migrant households and local economies.
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