Nepalese Economy
5.1 Foreign Trade and foreign Employment in Nepal
5.1.1 Concept and importance of international trade:
Almost required goods cannot be produced by a single country in the world. Countries participate in international trade when there are not enough resources or capacity to meet the domestic demand. By importing the necessary goods, a country can use their domestic resources to produce exportable goods which are more profitable. So, purchasing and selling of goods between different countries is called international trade. It is the process of exchanging goods and services across international borders. It includes the export of surplus goods by country and import of necessary goods from other countries.
Foreign trade means the exchange of goods and services between two or more countries. As all countries cannot produce all goods efficiently, they participate in foreign trade.
A. Difference between domestic trade and international trade
Foreign trade is different from the internal/domestic trade. Some important differences are shown in the following table.
|
S.N |
Domestic trade |
International/Foreign Trade |
|
1. |
Exchange of goods and services among the people with in the country |
Exchange of goods and services among the countries |
|
2. |
Goods do not cross the border |
Goods cross the boarders X |
|
3. |
Native currency is used in transaction |
Foreign currencies are used in transaction |
|
4. |
Supplier and purchasers are of the same nation. |
Supplier and purchasers are of different nations. |
|
5. |
Internal/Domestic trades do not require any negotiation. |
Foreign trade requires certain types of negotiation among the nations. |
|
6. |
It is affect by internal policy only. |
It is affected by policies of various countries. |
|
7. |
There is less risk in business. |
There is more risk in comparison to the domestic trade. |
|
8. |
There is less competition. |
There is more competition in international trade. |
B. Importance of International Trade
International trade is considered as the engine of economic growth and development. It creates the competitive situation in production. Marketing technological improvement etc. and prevent coming out monopolies. It provides various types of benefits to the consumer by provide various types of benefits to the consumer by providing the new and cheap goods. The major importance of international trade is described below.
1. Utilization of available resources: As market size increase, various countries can export the goods. It creates the situation for full utilization of resources.
2. Benefits to consumers: International trade helps to import varieties of a product from different countries. Consumers will have large basket for selecting the goods.
3. Increment in employment: International trade helps to create more employment opportunities through the establishment of new industries, exploring the new economic opportunities. Utilizing the available resources within the country.
4. Efficiency in production: International trade promotes efficiency in production. As they have to compete in the international market. They try to produce qualitative goods at the lower cost as possible. This effort helps to improve the efficiency in production in the long run.
5. Source of government revenue: While in the process of import and export, government imposes taxes. The volume of tax revenue increases with increment in international trade.
6. Good relationship with foreign countries: It helps to establish the relationship between the trade partners. As a result, extension of market, exploration of comparative advantage in different sectors of economy, technological development etc. would be possible.
7. Expansion of market: through international trade the producers can expand their market outside the geographical territory of the country which helps to increase their sales volume.
5.1.2 Growth, composition, direction, and problems of Nepalese foreign Trade:
A. Growth of Nepalese foreign trade:
The foreign trade of Nepal is important aspect of the economy. The import and export trends indicate the changing situation and production of the nation. The data indicates the continuous growth in volume of trade in various years. The increasing trend is presented in the following table.
|
Fiscal year |
Import (ten millions) |
Export(Ten million) |
|||||||
|
India |
China |
Other countries |
Total |
India |
china |
Other countries |
Total |
||
|
2012/13 |
36703.12 |
6245.13 |
12725.78 |
55674.03 |
5099.98 |
208.58 |
2383.16 |
7691.72 |
|
|
2013/14 |
47794.70 |
7331.86 |
16310.02 |
71436.59 |
5961.37 |
284.07 |
2953.69 |
9199.13 |
|
|
2014/15 |
49165.59 |
10016.64 |
18286.19 |
77468.42 |
5586.46 |
222.99 |
2722.46 |
8531.91 |
|
|
2015/16 |
47721.26 |
11569.43 |
18069.22 |
77359.91 |
3943.37 |
168.15 |
2894.19 |
7011.71 |
|
|
2016/17 |
63366.96 |
12724.50 |
22919.86 |
99011.32 |
4144.92 |
170.15 |
2989.84 |
7304.91 |
|
|
2017/18 |
81410.16 |
15998.71 |
27101.45 |
27101.45 |
4671.98 |
243.77 |
3220.23 |
8135.98 |
|
|
2018/19 |
91790.93 |
20552.74 |
29509.86 |
141853.53 |
6273.18 |
210.98 |
3226.79 |
9710.95 |
|
Table 5.2 Source: economic Survey, 2019/20
Above table clearly indicates the increasing trend of Nepalese foreign trade, the trade with India, China and other countries are increasing gradually the volume of import is high, and it is increasing by higher rate over the years.
B. Composition of Nepal’s foreign Trade
The composition of foreign trade indicates the various goods and services that are imported and exported in the country. Nepal has trade relation with more than 110 countries in the world. However, the import and export are categorized in to three groups i.e., With India, china, and other countries. The composition of foreign trade is summarized in the following table.
|
Countries |
Export |
Import |
|
India |
Rice and Maize Mustard and Linseeds Herbs Ghee Dried Ginger Pulses Live animals Flour Ginger |
Electrical equipment Threads, Tobacco Transport equipment Medicine Chemical Fertilizer Textiles(Cotton and others) Vegetables Cement, paper |
|
|
Oil cake Catechu Rice bran Oil Raw jute, Jute Cutting Jute goods, Hessian B. Sacking Twines Cardamom Cattle feed Toothpaste Polyesters Yarn Chawyanparash and hajmola, Soap Vegetable Ghee Pashmina Thread Copper wire Rod M S pige Plastic Utensils Zine Sheet, G.I.pipe Textiles Juice and chemicals |
Horlicks and milk products Chemical materials Agriculture equipment and parts M.S wire rod M.s Billet Steel plate Aluminum singot Hot roll sheet ( in coil) Cold role sheet (in coil) Other machinery and parts petroleum Product |
|
China |
Agarbatti Aluminum, Copper and Brass Utensils Handicraft (metal and wooden) Herbs Human hair Musical instrument& its part Nepali paper and its product Noodles other handicraft goods Pashmina Readymade Garments Readymade leather goods Rudraksya Silverware and Jewelries Tanned Skin Tea, vegetables. Wheat Flour Woolen Carpet Zinc Sheet G.I pipe Textiles, juice, chemicals |
Aluminum Scrap Flake oil, bars and rods Chemicals, Chemical Fertilizer Electrical Equipment Medical equipment and tools Medicine Metal and Wooden furniture Office equipment and stationary Other machinery and parts Pipe and pipe fittings Plywood and particle board Plastic Utensils Raw Silk, Raw wool Readymade garments Powder for noodles Shoes and sandals Smartcard, SolarPannel Steel rod and sheet Storage battery Telecommunication Equipment and parts Polyesters threads Toys Transport Equipment and parts Tires, tubes and flaps Video television and parts |
|
Other countries |
Pulses Cardamom Herbs Catechu Woolen Textiles Nepali Papers and its products Leather Woolen Carpets Readymade Garments Handicrafts Ornaments Pashmina |
Gold, Silver Petroleum products Other machinery and parts Electrical equipment Threads, Raw wool Transport equipment Medicine Chemical Fertilizer Paper Computer parts Aircraft spare parts Telecommunication equipment Textiles (cotton and others) Polythene granules Crude palm oil Crude soybeans oil Copper wire and scrapes Raw silk |
Table 5.3 Source: Economic survey 2019/20
Nepal has adopted standard international trade. Classification (SITC) in order to measure composition of foreign trade. For simplicity, Nepal’s foreign trade can be summarized using Nepal’s foreign trade data of fiscal year 2018/19 (1st eight month) as follows:
|
S.N |
Goods groups |
Export Value |
Import Value |
|
1 |
Foods and Animals |
1995.04 |
16158.57 |
|
2 |
Tobacco and Beverages |
25.36 |
874.12 |
|
3 |
Crude Materials and Inedible (Non-purified) |
451.68 |
5096.97 |
|
4 |
Minerals Fuels and lubricants |
0.10 |
25396.72 |
|
5 |
Animals and vegetables Oil and Fats |
1294.86 |
3608.56 |
|
6 |
Chemical and drugs |
435.58 |
14238.41 |
|
7 |
Classified by Materials Machinery and transport Equipment |
4046.95 |
31110.37 |
|
8 |
Miscellaneous manufactured Equipment |
82.42 |
32432.92 |
|
9 |
Miscellaneous manufactured Activities |
1378.34 |
9473.10 |
|
10 |
Not classified |
0.61 |
3463.79 |
|
|
Totals |
9710.95 |
141853.53 |
Source: Economic Survey 2019/20
C. Direction of Nepalese foreign trade
International trade is important for all countries. It has increased the interdependency among the economics in various aspects. Nepal’s trade is increasing in recent years. But Nepal is expecting the widening trade deficit. Import is increasing every year and exportable goods, poor technological situation, low quality of production of exportable goods, poor technological situation. Low quality of production of exportable goods, poor technological situation, low quality of production, declining role of the industrial production, uncertainty. Lack of energy, political instability for a long time, etc Nepal’s foreign trade largely depends on India for import and export. However, in recent years the dependency with India is gradually changing. The direction of foreign trade indicates the scenario of trade of Nepal is summarized in the following table.
|
Description |
2012/13 |
2013/14 |
2014/15 |
2015/16 |
2016/17 |
2017/18 |
2018/19 |
|
Share In total export (%) |
100.00 |
100.0 |
100.0 |
100.0 |
100.0 |
100 |
100.00 |
|
India |
65.2 |
66.5 |
64.2 |
56.0 |
57.7 |
57.1 |
64.6 |
|
China |
3.0 |
2.8 |
3.3 |
2.3 |
2.4 |
3.5 |
2.2 |
|
Other countries |
31.8 |
30.6 |
32.5 |
41.7 |
39.9 |
39.4 |
33.2 |
|
Share in total import t% |
100.0 |
100.0 |
100 |
100.0 |
100.0 |
100 |
100.0 |
|
India |
65.9 |
66.5 |
63.2 |
59.3 |
65.3 |
65.2 |
64.7 |
|
China |
11.7 |
10.5 |
14.2 |
16.1 |
13.1 |
12.8 |
14.5 |
|
Other Countries |
22.4 |
23.0 |
22.6 |
24.6 |
21.5 |
22 |
20.8 |
Table 5.5 Source: Economic Survey 2019/20
Above table clearly indicates that the dependency with India is still high for Nepalese foreign trade. The share with china is significant for import than export.
D. Problems of Nepalese foreign trade
Through Nepal has a long history of foreign trade, it suffers from various problems, so the trade deficit is increasing over the years, and some major problems of Nepalese foreign trade are as follows:
1. Vast trade deficit: Trade deficit is increasing every year. It can’t be controlled due to weak export base.
2. Narrow export sector: The export base is weak. Due to lack of trade diversification, higher cost of production, lack of advanced technology, lack of skilled manpower, production of exportable goods has become difficult.
3. Lack of alternative source of energy: We are importing large amount of petroleum goods and it has remained more significant part of the total import. There is still lack of reliable alternative sources of energy.
4. Imports of ago-products: through Nepal is agricultural country; Nepal is now importing ago reporting ago products from other countries. There is still inadequate production of agricultural commodities with in the country.
5. Landlocked country: Nepal is a landlocked country. Nepal should depend mainly on India for export to and import from each other countries. The cost of transportation is high. Hence, land locked situation has been the obstacles in foreign trade in Nepal.
6. Illegal trade between India and Nepal: Nepal has open border with India. So, illegal trade can’t be controlled by the government.
7. Top competition with foreign goods: Nepal has implemented free trade policy. So, foreign goods have entering into without any barrier, the flow of foreign goods has highly dominated the product of Nepal in terms of price, quality, and quantity. As a result, Nepalese products are losing their position both in international as well as in domestic market.
8. Underdeveloped industrial sector: the industrial sector of Nepal is still in under-developed condition. Established industries are not functioning smoothly due to lack of capital, lack of fuel, electricity, etc. The export-oriented industries are not so developed that creates difficulties in Nepalese foreign trade.
9. Internal problems: Nepal is suffering from internal problems like political instability, strike, crime, etc. It badly affects the production of exportable goods.
5.1.3 World trade organization (WTO) and south Asian free trade area
(SAFTA)
International trade regulation is an important issue in the world as most of the countries are participating in international trade. WTO is an international organization for the promotion and regulation of world trade and SAFTA is a regional agreement of south Asian countries to regulate trade through the dispute settlement initiating incentive program.
A. World trade Organization (WTO) is officially recognized after the abolition of GATT (general agreement on the trade and tariff). It was established in 1995 A.D. Nepal has become the members of WTO since April 23, 2004 A.D. it is the legal and institutional platform for the multilateral trading system. WTO is the common platform for all members’ nations where trade relation among countries could be justified through discussion and negotiation.
World trade organization (WTO) is an international organization and aims to reduce all barriers of trade. Barriers to trade include tariffs (taxes) on products or service might pay with in a country. Barriers also include other blocks on trade like licensing or packaging requirements or subsidies that a government might give to an industry like agriculture or the arts.
The WTO is essentially an alternative dispute or mediation body that upholds the international rules of trade among its members. The WTO has lowered trade issues with other members. The organization provides a platform that allows member government to negotiate and resolve trade issues with other members. The WTO’s main focus is to provide open lines of communication concerning trade among member countries. It has also maintained trade barriers and increase trade among member countries. It has also maintained trade barriers when it makes sense to do so in the global context. Therefore, the WTO attempts to provide negotiation medium that benefits the global economy.
a. Objective of WTO
The main objectives of WTO are as follows:
1. To ensure and to enforce the reduction of tariffs and other barriers of trade.
2. To eliminate discriminatory treatment in international trade relation among the member nations.
3. To facilities higher standards of living, full employment, a growing volume of real income and effective demand, and an increase in production and trade in goods and services of the member nations.
4. To make positive effect, which ensures developing countries, especially has least developed secure a level of share in the growth of international trade that reflect s the need of their economic development.
5. To facilitate the optional use of the world’s resources for sustainable development.
6. To promote an integrated, more viable and durable trading system incorporating all the resolutions of the Uruguay Round’s multilateral trade negations.
B.
b. Principles of WTO:
The basic principles of WTO are as follows:
1. Involve in the trade without discrimination to all member nations.
2. Apply free trade policy.
3. Provides security guarantee to its member nations regarding capital investment and establishment of multinational companies.
4. Emphasizes on open, fair, and healthy competition of trade among the member nations.
4. Equal emphasis on economic and development reform in its member countries.
C. Functions of the WTO
The WTO carries out various functions to meet the objectives. Some major functions of the WTO are as follows.
1. Implement the code of conduct to reduce trade barriers including tariffs and eliminating discrimination in international trade relationship.
2. Provide the institutional framework which encompasses a spectrum of norms governing the conduct of member countries in the global trade.
3. Provide integrated structure of the administration to facilitate the implementation, administration and fulfillment of the objectives of the WTO agreement and other multilateral trade agreements.
4. Act as a forum for the negotiation of future trade liberalization.
5. Cooperate with the IMF and WB and its associates for establishing coherence in trade policymaking.
6. Settle the trade related disputes.
B. South Asian Trade Area (SAFTA)
The south Asian free Trade Area (SAFTA) is a regional forum to deal the trade among the SAARC member countries. The South Asian Free Trade Area (SAFTA) is a trade arrangement of the south Asian Free Trade Area (SAFTA) is a free trade arrangement of the South Asian Association for regional Cooperation (SAARC). The agreement was signed on January 6, 2004 and came in to force on January 1, 2006. SAFTA signatory countries are Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka.
a. Objectives of SAFTA
The main objectives of SAFTA are as follows:
a. Eliminating barriers to trade in, and facilitating the cross-border movement of goods between the territories of the Contracting States:
b. Promoting conditions of fair competition in the free trade a area, and ensuring equitable benefits to all Contracting States, taking into account their respective levels and pattern of economic development.
c. Creating effective mechanism for the implementation and application of this Agreement, for its joint administration and for the resolution of disputes: and
d. Establishing a framework for further regional cooperation to expand and enhance the mutual benefits of this Agreement.
b. Principles of SAFTA
SAFTA has the following principles:
1. SAFTA will be governed by the provisions of this Agreement and by the rules, regulations, decisions, understandings and protocols to be agreed upon within its framework by the Contracting States.
2. The Contracting states affirm their existing rights and obligations will respects to each other under Marrakesh Agreement Establishing the World Trade Organization and other Treaties/ Agreements to which such Contracting States are signatories.
3. SAFTA shall be based and applied on the principles of overall reciprocity and mutually of advantage in such a way as to benefit equitably all Contracting States, considering their respective levels of economic and industrial development, the pattern of their external trade and tariff policies and systems.
4. SAFTA shall involve the free movement of goods, between countries through, inner alia, the elimination of tariffs, Para tariffs and non-tariff restrictions on the movement of goods, and any other equivalent measures.
5. SAFTA shall entail adoption of trade facilitation and other measures, and the progressive harmonization of legislations by the contracting States in the relevant areas: and
6. The special needs of the least developed Contracting States shall be clearly recognized by adopting concrete preferential measures in their favor on a non-reciprocal basis.
5.1.4 Foreign Employment and Remittance: Present Situation, Advantages
In this era of globalization, economy of each country is attached with world economic system. There are various types of economic relationship among countries such as tourism, trade, capital transfer, technology transfer, labour movement and foreign employment, foreign etc. Among them foreign employment is important in the Nepalese economy that directly affects the social, educational, economic life of Nepalese society. In this context, different aspect of foreign employment and remittance, challenges are discussed in the following heads.
A. Interdiction to Remittance in Nepal
Government of Nepal now has opened with more 109 countries for foreign employment. But the concentration is still in India, Malaysia, and Gulf countries, South Korea. Israel and Japan. Remittance has become a major source for foreign currencies. Number of remittance receiving households is increasing. Remittance has approximately 29 percent share in GDP and has surpassed the income received from tourism and export foe the last few years. Remittance inflow has been credited for foreign reserve and management of monetary resource for small and medium scale industries, remittance has also tremendously supported foe poverty alleviation.
Globalization favors liberal economic system in which there is free flow of capital, technology, labour, raw materials, information and communication. Distribution and marketing are integrated or interdependent on global scale. International labour migration has been highly increasing at present developing countries are main labour supplier countries.
In general terms, remittance is money transferred by foreign workers or remitters from host countries to support their earning in term of kind and cash, the term remittance is generally limited to denote only monetary and cash transfers from host countries to home countries by migrant workers.
B. Current status of foreign
Employment and Remittance
Large number of Nepalese workers goes abroad to work in the absence of fruitful employment opportunities in the country for long time. The history of formal entry of Nepalese citizens in foreign employment began in 1814/1815 A.D. after the Nepal-British India war. A total of 4,650 Nepalese youngsters were recruited to the British armed forces as the British-Gurkha regiment, similarly, the migration of Nepalese people for other employment purposes, such as working in the tea states of Darjeeling and the forest of Assam began in late 19th century. Though such migration has a long history, international labour migration. Mostly to Gulf States, Malaysia and other South East Asian country is a new Phenomenon of migration in the Nepalese context.
A decade run armed conflict in the country has displaced people from their usual place of residence and means of employment within the national borders and the final step of many people is to go abroad for employment. Most of the migrant’s workers abroad are working in vulnerable situations without any effective legal protection by the Nepalese government or the receiving countries government. Workplace exploitation by foreign companies is well but the Nepalese government has not adopted any specific labour diplomatic politics, except in some cases. While workers are not allowed to work in all the countries around the world. There are several serious cases about the pathetic situation of Nepalese migrants working in unauthorized countries where there is not any legal or social protection by the host countries.
The Nepalese government now intends to apply the measure of safeguard of the interests and welfare of migrants. Furthermore, the government is trying to regulate the procedure of recruitment. Several counties to which Nepalese workers may be officially recruited are listed and conditions for registered recruiting agencies are defined. However, initiatives and achievements are not adequate.
|
Year |
Total number of migrants |
Year |
Total number of migrants |
|
1994/95 |
2159 |
2006/07 |
214094 |
|
1995/96 |
2134 |
2007/08 |
215268 |
|
1996/97 |
3259 |
2008/09 |
219965 |
|
1997/98 |
7745 |
2009/10 |
294,094 |
|
1998/99 |
27796 |
2010/11 |
354,716 |
|
1999/00 |
35543 |
2011/12 |
384,665 |
|
2000/01 |
55025 |
2012/13 |
450,834 |
|
2001/02 |
104739 |
2013/14 |
512,878 |
|
2002/03 |
105055 |
2014/15 |
- |
|
2003/04 |
121769 |
2015/16 |
418,713 |
|
2004/05 |
139696 |
2016/17 |
383493 |
|
2005/06 |
182043 |
2017/18 |
361941 |
|
|
|
2017/19 |
4601708 |
Table5.6 Source: Various Issues of Economic Survey
The table shows the trend and situation of foreign employment of Nepal. The number of outgoing people in search of job is increasing gradually. The increasing trend over the years indicates the alarming situation in the sense of human resources availability in Nepal.
B. Status of Remittances in Nepal
Remittance is an important source of foreign exchange for most of the developing and underdeveloped nations. But actual data of remittance cannot be obtained as remittance obtained through informal channel is significant in those nations.
|
1997/98 |
7.0 |
2011/12 |
359.6 |
|
1998/99 |
10.3 |
2012/13 |
434.6 |
|
1999/00 |
12.7 |
2013/14 |
543.3 |
|
2000/01 |
47.2 |
2014/15 |
617.3 |
|
2001/02 |
47.5 |
2015/16 |
665.1 |
|
2002/03 |
54.2 |
2016/17 |
695.5 |
|
2003/04 |
58.6 |
2017/18 |
755.1 |
|
|
|
2018/19 |
879.3 |
|
Year |
Remittance( In Billion NRS) |
Year |
Remittance (In Billion NRS) |
|
1990/91 |
2.1 |
2004/05 |
65.5 |
|
1991/92 |
2.3 |
2005/06 |
97.7 |
|
1992/93 |
3.0 |
2006/07 |
100.1 |
|
1993/94 |
3.5 |
2007/08 |
142.7 |
|
1994/95 |
5.1 |
2008/09 |
209.7 |
|
1995/96 |
4.3 |
2009/10 |
231.7 |
|
1996/97 |
5.6 |
2010/11 |
253.6 |
Table 5.7 Source: MOF, Various Issues of Economic Survey
|
Year |
Total Remittance from India (In billion NRS) |
Remittance from India (In Billion NRS) |
Share of India in total Remittance |
|
2014/15 |
617.3 |
76.0 |
12.32 |
|
2015/16 |
665.1 |
70.3 |
10.57 |
|
2016/17 |
695.5 |
90.8 |
13.06 |
|
2017/18 |
755.1 |
101.1 |
13.38 |
|
2018/19 |
879…3 |
128.6 |
14.62 |
Nepalese official records have shown that the total amount of remittance entered in the nation was Rs. 2128.3 million in the year 1990/91. The Figure has highly boosted up particularly after 2000/01.
Table 5.8 Source: Nepal Raster Bank
The ratio of remittance to GDP shows the importaintance of remittance in the economy. The ratio of remittance to GDP is increasing gradually as shown in the following table.
|
1996/97 |
2.32 |
2011/12 |
23.5 |
|
1997/98 |
3.01 |
2012/13 |
25.6 |
|
1998/99 |
3.34 |
2013/14 |
27.7 |
|
1999/00 |
10.69 |
2014/15 |
29 |
|
2000/01 |
10.35 |
2015/16 |
29.6 |
|
2001/02 |
11.01 |
2016/17 |
26.0 |
|
2002/03 |
10.91 |
2017/18 |
24.9 |
|
|
|
2018/19 |
25.4 |
|
Year |
Ratio of Remittance to GDP |
Year |
Ratio of Remittance to GDP |
|
1990/91 |
1.77 |
2004/05 |
11.12 |
|
1991/92 |
1.55 |
2005/06 |
14.94 |
|
1992/93 |
1.75 |
2006/07 |
13.76 |
|
1993/94 |
1.74 |
2007/08 |
17.49 |
|
1994/95 |
2.31 |
2008/09 |
21.15 |
|
1995/96 |
1.71 |
2009/10 |
19.4 |
|
1991/92 |
1.99 |
2010/11 |
18..5 |
Table 5.9 Source: Economic survey from 1990/91 to 2019/20 M o F Kathmandu
Ratio of remittance to GDP was just 1.77 percent in 1990/91 and the figure has significantly increased after the year 2000/0
C. Advantages of Foreign Employment
and remittance in Nepalese Economy
Various elements like domestic consumption, domestic, investment, government expenditure, net export, etc. are responsible factors that enhance GDP and its growth in the nation. Remittance is one of the enhance GDP and its growth in the nation which can enhance GDP of the nation as earnings entered in to the nation. Remittance is one of the earning entered in to the nation which can enhance GDP of the nation as earning through remittances are spent by recipients either for consumption purpose or investment purpose.
1. Source of foreign exchange: Remittances provide receiving countries with important foreign exchange; Remittances are more stable and reliable from one foreign exchange. Remittances are more stable and reliable from of foreign exchange earnings in developing countries like Nepal.
2. Economic development and growth: Remittances act as a blessing for a country is financial development. Economic distress in home country inspires the migrant workers to increase the volume of funds they remit exchange rate appreciation. Economic development and growth is possible when there is no more income.
3. Poverty alleviation: Remittance play a substantial part in the social accepts of the economic system. It helps to alleviate poverty, which is important for the present context. The entire household income increases in the presence of the remittance. It leads to increase in household consumption, thereby bringing down poverty and raising the standard of live hood. Thus, an economy will fare far better if the people below the poverty line reduce which then, in turn, leads to positive economic outlook.
4. Development of education sector: In many developing countries, education is not accessible to all or is expensive. Remittances can allow for the payment of school and college fees and can enable children to study rather than work for family’s survival. It may act as an income supplementation and take able to meet basic needs such as education, health, etc. to the wider population. Remittance- inspired expenditures on education can help to develop human capital through education and training. It is regarded as an essential condition for accelerated economic growth.
5. Increase in domestic investment: Remittance is an important component of the local economy. It helps individuals to invest in real estate sector as well as in small economic activities in local level. It promotes the earning capacity of people in the remittance-receiving country.
6. Establishment of new business: remittances provide capital for starting new business and embark the entrepreneurship. People may be ready to run various economic activities which ultimately promotes the rural economy of Nepal.
7. Revenue for government from private sector development: Remittance has become an important source of revenue for government through tax and fees. These fees include fees paid by manpower companies passport fees, value added tax and other non-tax revenue, Similarly, remittance has become an important source of revenue from private sector, Various recruitment agencies, agent, medical institute, orientation institute, training institute, advertisement, photograph shop, air ticketing. Local transport, hotels, restaurants etc. have been collecting and paying significant amount of revenue in the name of foreign employment activities.
8. Various financial institutions are taking the responsibility of transferring foreign currency in the domestic financial market. To run their financial activities, they are hiring human resources for different senior and junior pots. Expansion of airline network and training institutes are increasing in proportion with increase in labour migration which ultimately hire the human resources. More investment in local business also creates employment opportunities.
9. Improvement in living standard of people: When income level increases in the community, people can easily fulfill their needs and requirements. They will be able to consume quality goods, can have better education, can afford better health facilities and living standard of people improves.
D. Disadvantages of foreign Employment and
Remittances in Nepalese Economy:
Through foreign employment helps to uplift the economy, there
are several challenges and problems which are as mentioned below:
1. Decrease in internal production because of the attitude to
go outside the nation for more earning.
2. Increasing dependency on import because of the changes in
family needs and requirements.
3. Promotion of migration and unmanaged settlement increase
in social imbalances.
4. Increasing pollution due to migration, urbanization,
imbalance settlement, encroachment of public resources.
5. Brain drain occurs when significant numbers of skilled
people leave their countries of origin to seek employment or establish business
abroad.
6. Family disturbances and disputes in many cases due to
absentee foe a long time.
5.2 Development plan in
Nepal
5.2.1 Concept of
development Plan in Nepal
Economic plan at present has been a subject of concern of economists.
All the countries, socialist or capitalist, have made efforts of planned
economic development. Different types of economic development plans have been
made in different countries and are implemented according to the nature of
their economy. Some of them have become successful and some unsuccessful. The
diversity of the views of economists and nature of economy has views of
different economists to be clear about plan.
A. Concept of planning:
The economist M.P Todaro has defined plan as the conscious
efforts of a central organization to influence, direct and in some cases, even
control changes in the principal economic variables of certain country or
region over the course of time in accordance with a predetermined set of objectives.
The other economists F.Zwig has defined it as planning is a planning of the
economy as a whole. The other economists Galton have defined it as planning of
the economy as a whole. The other economists Dalton has defined it as economic
planning is the deliberate direction by parsons in charge of large resources of
economic activity towards chosen ends.
Similarly, the economists Lewis Lordwin has defined planning
as a scheme of economic organization in which individuals and separate plants,
enterprises and industries are treated as coordinate units of one single system
for the purpose of utilizing available resources to achieve the maximum
satisfaction of the single system for the purpose of utilizing available
resources to achieve the maximum satisfaction of the people’s need within a given
time.
Pious has defined planning relating with social welfare,
according to this, planning for common goods must mean planning for the benefit
of a limited class, but of the community as a whole.
From the above definitions/views planning is related to the
function of controlling economic activities by government for government
prescribed authority. Most of economists have supposed planning to be the
effort of government authority to utilize limited means and resources to meet
optimum interest through control. As a whole, the features/ characteristic of
planning can be summarized in points as follows:
1. Planning has certain objective. Mobilization of means and
resources, their utilization, priority determining, implementation etc. are
aimed at achieving already determined certain objectives.
2. Generally, the objective of planning is concerned to the common, interest. All the
functions such as mobilization of resources, utilization, coordinated efforts
become common interest of all.
3. How to produce, how much to produce, how to enhance the
process of distribution etc. are determined in planning.
4. Arrangement of central level authority is made for formulation of plan, monitoring of implementation evolution of achievement etc.
5. Planning gives importance to proper distribution of means and resources.
6. Generally, planning is concerned with long term objectives and gives equal importance to its implementation.
7. Planning selects target programs and implementers with priority.
8. Planning gives more emphasis on welfare rather than competition.
B. Planning in Nepal:
Some efforts regarding plan were carried out before the 2007 B.S in Rana regime. But no effective and efficient programs were lunched and implemented. The effective planning in Nepal has been started from 2013 B.S (1956A.D). There are many periodic plans implemented successively,
1. First five- year plan (1956/57-1960/61)
2. Second three-year plan (1962/63-194/65)
3. Third five-year plan (1965/66-1969/70)
4. Fourth five year plan (1970/71-1974/75)
Fifth five years plan (1975/76-1979/80)
6. Sixth five year plan (1980/81-1984/85)
7. Seventh five year plan (1985/86-1989/90)
8. Eighth five year plan (1985/86-1989/90)
9. Ninth five year plan (1997/98-2001/02)
10. Tenth Five year plan (2002/03-2006/07)
11. Eleventh Three-year interim plan (2007/08-2009/10)
12. Twelfths Three year plan (2010/11-2012/13)
13. Thirteenth three year plan (2013/14-2015/16)
14. Fourteenth Three year plan (2016/17-2018/19)
5.2.2 Objectives, Priority and Policies of Current plan:
The Fifteenth plan will provide a basic for achieving the long term vision of Prosperous Nepal, Happy Nepali”. Accordingly, the national goal of this plan is to create a basic for upgrading Nepal to the status of a high income country by transforming it into a socialism oriented welfare state with a prosperous economy, social justice, and improved living standard.
A. National Objectives of 15th Periodic plan of Nepal:
1. To provide easily accessible, qualitative, and modern infrastructure productive employment generation, high sustainable inclusive economic growth through poverty alleviation.
2. To provide qualitative health and a healthy environment, social justice, accountable social service and quality of life.
3. To protest the national benefit of democracy, sovereignty and ensure socio-economic transformation for a strong economic foundation.
B. Long term national Objectives:
1. Accessible modern infrastructure and intensive connectivity.
2. Development and full utilization of human capital potential.
3. High and sustainable production and productivity.
4. High and equitable national income.
5. Well-being and decent life,
6. Safe, civilized and just society.
7. Healthy and balanced environment.
8. Good governance, Comprehensive democracy, national unity, security, and dignity.
C. strategies and policies of 15th periodic plan of Nepal
1. Facilitate accelerated, sustained and employment-oriented economic growth.
2. Facilitating accessible and quality medical care and education.
3. Internal and non-industrial immobility and development of residence.
4. Increasing production and productivity.
5. Provide comprehensive, effective social security and safety.
6. Alleviating poverty and ensuring equality and justice-based society.
7. Conservation of natural resources and development of sustainability.
8. Strengthening of public services, provincial balancing, and integration of central units.
9. Involvement of all tiers of government to achieve economic growth.
D. priorities:
1. Development of hydroelectricity and different energies.
2. Increase the profitability, expansion, and commercialization of the farming segment.
3. Development of the tourism, industry and business segments.
5.2.3 Evaluation of Previous plan:
Various periodic plans have been implemented in Nepal during the six decades of planned development efforts. Despite several changes in this period. Achievements in economic, social, and modern transportation and infrastructure development sectors have been achieved less than expectations. Meanwhile, Nepali people have become relatively more aware than in the past. The discrimination, inequality, and exclusion based on ethnicity, gender and class have been decreased. Important achievements have been made in sectors including education, health, and security during this period. In the infrastructure sector, significant progress has been achieved in road transportation, communication and information technology, and urban infrastructure.
Despite significant reduction in absolute and multidimensional poverty, a large segment of the population remains under the poverty line. The trend of youth labour force going abroad for employment due to lack of employment opportunities at home has still not changes. The contribution of the industrial sector in the economy and causing sufficient foreign exchange reserves. Important achievement has been made in the field of socio economic development including social security, environment protection, etc. The goals set by the plan have not been achieve as expected in the areas including economic growth, production and productivity, Industrialization, quality education and health, clean and pollution-free environment, and good governance.
The fourteen plans had imaged building an independent, advanced, and socialism-oriented national economy by becoming self dependent in agriculture produce, medicine, and the energy sector. It had targeted to reach the level of a middle-income country through becoming a public welfare state with social justice. Additionally, it was the first periodic plan to make an attempt to mainstream and internalize the goals of sustainable development.
The fourteenth plan was formulated to accelerate the post-earthquake reconstruction through increased public investment, implement and managing federalism and addressing the loss suffered by the economy due to the trade disruptions at the southern border.
The fourteenth plan was oriented to prosperity with sustainable development by implementing the version of making the national economy socialism oriented, self-dependent, free and advanced according to the direction of development set b y the constitution, Additionally, the objectives were to complete the election of the federation, provinces, and local level, like that way another objective was to build necessary laws and structures for the implementation and management of federalism as the primary task for the implementation of the constitution.
With the completion of the federation, province, and local level elections the three level governments are now fictional. Due to this, political stability has been achieved with the ending of the political transitional period of a long time. The process of formulating rules and structures in accordance with the list of powers/jurisdiction of the three levels of the government has gained momentum. The fourteenth plan was important also for ensuring economic equality, god governance, development prosperity, and social justice sought by the country. Furthermore, fiscal federalism has been implemented and the environment for investment has been friendly after the formulation of the stable government with a public manmade for stability.
The plan has been successful in maintaining macroeconomic stability along with removing the advertises seen in the economy due to the trade description at the southern border points and the disastrous earth quick through fiscal policy and incentives.
The fourteenth plan had intended for socio-economic transformation by accelerating poverty alleviation through productive employment-oriented high economic growth with equitable distribution. The economy enjoyed a positive impact due to the favorable environment for investment friendly economic policies, continuous improvement in the electricity supply system, improvement in labour relations, and political stability during the plan period.
During the period, the total government expenditure was NRs, 3 trillion 3\4.925 billion rupees, Public spending in the first, second and third year of the plan has remained 314.3, 35.9 and 31.6 percent respectively in proportion to gross domestic product (GDP). Inflation has remained at a minimum due to the rapid expansion of the economy than in the past and proper coordination between fiscal policy and monetary policy, the goal of the increasing the human development index (HDP) to 0.57 and life expectancy to 72 years during the plan period has been partially met with HDI at 0.579 and life expectancy at 70 years currently. The goal to increase the ratio of the population with access to basic drinking water facility to 89 per cent. The net enrolment rate at the age group 15 to 24 to 92 percent have been met with the rates standing at 89,46 and 92 per cent respectively. Despite the notable improvement in achieving the target to social indicators, it remains necessary to improve its quantities aspects.
5.2.4 Plan formulation process in Nepal:
The objective of every plan development is to create the welfare situation in the situation in the economy, so it requires careful effort. Process of plan formulation is a scientific practice to make a new plan will reference to evolution of previous plans including evaluation and monitoring of existing plan. In this context, the process of plan formulation is explained below:
1. Evaluation of previous plans: First, the planning authority should evaluate previous plans. In the process of the evaluation success and failure of current and the past plans are carried out either through own mechanism or by the in dependent experts. Failed plans are m modified for terminated successful plan should get continuity. The plan authority estimates the overall income and expenditure of the previous plans and aggregate impact in the economy.
2. Collection and presentation of new project proposals: The planning authority collects project proposal from development related offices, organization, local government etc, the planning commission itself can makes the mechanism to coordinate.
3. Discussion: the planning authority arranges the discussion program about the various plans and their relevancy and determinates the priority. The participation in discussion programs are members of Nepal development council, Nepal planning commission, minister is, secretaries and experts from concerned field and representative of donor agencies, etc. the conclusion derived from discussion directs the planning commission to give a shape of a new plan.
4. Determination of objectives, targets and priorities: The planning authority determines objectives to be achieved during the proposal plan period on the basic of priority. It determinanines targets and growth rate in the major essential parts of a good development plan.
5. Authorization, implementation and Evaluation of plan: The planning authority prepares final documents of development plan. After that it is presented to Nepal Development council for authorization. Finally council of ministry determines about the new plan to be implemented. Government and its mechanism are responsible for implementation. Monitoring and supervision is made by planning commission as per rules and regulation.
5.3 Sustainable Development Goals and Nepal
A. Meaning of sustainable development:
Human beings have been making different efforts to make their life happier and more comfortable from the beginning of the human civilization. They are working for development of physical infrastructures and for other development works. But the past development efforts could not be encouraging and adequate. So the concept of sustainable development has been brought forth for creating a situation so that all the generation can utilize natural means and resources for their happy life. Different development experts and writers have expressed their views about sustainable development.
5.3 Sustainable development goals and Nepal:
A. meaning of sustainable development:
Human beings have been making different efforts to make their life happier and more comfortable from the beginning of the human civilization. They are working for development works. But the past development efforts could not be encouraging and adequate so the concept of sustainable development has been brought forth for creating a situation so that all the generations development experts and writes have expressed their views about sustainable development.
Robert Allen has defined sustainable development as “Development that is likely to achieve lasting satisfaction of human needs and improvement.
United Nations Conference/ Convention on Environment and development held in Rio de janeiro in 1992 has mentioned in the in its report as “in order to achieve sustainable development, environment protection shall constitute an integral part of the development, environment protection shall constitute an integral part of the development process and cannot be considered in isolation from it”.
Similarly, World Food Organization as explained sustainable development giving emphasis on the need of future generation. According to this, “the management and conservation of the natural resource base and the oriented of technological and institutional change in such a manner as to ensure the attainment and continued satisfaction of human needs for present and future generation. Such sustainable development (in the agriculture, forestry sector) conserves land, water, plant and animal genetic resources are environmentally non-degrading, technologically appropriate, economically viable and socially acceptable”.
The other development expert Mustafa Tolba has taken sustainable development accounts the following.
1. Help for the very poor because they are left with no option other than to destroy their environment.
2. The idea of cost-effective development, with nature resources constraints.
3. The idea of self-reliant development using different economic criteria to the traditional approach, development should not degrade environment quality and reduce productivity in the long run.
4. The great issues of health control, appropriate technological food self-reliance, clean water, and shelter for all.
5. The notion that people cantered initiatives is needed; human beings, in other words, are the resources in the concept.
B. Sustainable goals for Nepal:
Sustainable development has become a concerning subject of all the nations. After the resolution of democracy, Nepal has become effortful for sustainable development. Various efforts have been made to formulate environmental friendly development plans to protect the interest of present and future generations. The main objective of Nepal’s sustainable development is to the present and future generations and also to boost up the process of providing them social, economic, political, cultural and environmental opportunities.
The task begins from primary effort to increase per capita income of certain size of population. Such efforts to make possible to create a situation for all the Nepalese to get equal services from the state, to create market and institutional structures of civil society and grow them and also concerte foundation of environmentally proper national/internal resources. Successful implementation of sustainable development agenda for Nepal will be the creation of the situation as follows.
1. Each Nepalese citizen will be able to live with self-respect, independent and safe and sound,
2. Income of each citizen or family will be sufficient to maintain healthy life, keep saving, get knowledge and have entertainment at leisure time.
3. Each child will go to school and each adult will be literate.
4. Each male and female youth will get opportunity to get professional tanning whenever they need.
5. Each citizen will be able to achieve higher education based on quality disregarding to social or economic condition.
6. Not any village of the nation will be farther from basic health facilities than the distance of some hours.
7. Each citizen will be made available of pure drinking water, nutrition food and fresh air.
8. Fuels will be produced from water, solar power, wind, non-pollutioning, biofuel and recyclable resources within the nation. Recyclable internal fuel resources will be increasingly used in transport sector, and efforts will be continued to free the nation from the dependency in imported mineral fuel.
9. Hydroelectricity will be produced not only for the internal supply, but also as a regular income source of export,
10. National and local plans will be made utilized farms and
precipitous lands as supplementary resources and used them in a way to bring
improvement in environment. This will establish complementariness between hills
and terai by which number of wildlife will get increased. Agricultural and forest areas will remain
safe/secured by controlling disordered expansion of urban areas. Biodiversity
will remain safe/ secured from the danger of land and settlement segmentation
and destruction of forest areas.
11. Conservation areas (national parks and wild reserve areas) will be well managed and development activities will be conducted in a way that the wildlife as well as biodiversity is not in danger due to pressure of human s settlement. The local people will be involved in the management of such reserves and parks so that they are also economically benefited.
12. Sufficient forest products will be available to the entire citizen to meet their basic necessities and opportunities to experience natural beauty and spiritual satisfaction also will be available.
13. Mountainous and hilly climate will be utilized to produce high pricing agricultural and non- timber forest products for internal consumption and export.
14. Scientific research and rational industries will have made sure that Nepal can get ample benefits from protection of biodiversity and bio-resources.
15. National scientific knowledge will have been developed to make preparation to avert any dangers caused by climate change, regional or global environmental dangers, their analysis and exchange of information about them.
16. Each VDC will have been linked with other parts of the country at least by a kind of means of transport and communication.
17. Indigenous industries will be developed; low pricing daily consumer goods will have been produced to export.
18. Nepal will have been internationally well intergraded and developed to attractive place for foreign investment. It will also have been developed to an attractive tourist destination with its natural and cultural and cultural resources for maximum collection tourist revenue.
19. All kinds of state services by each state organs like executive, legislative and judiciary and other administrative units, will be quickly provided to all the citizen of different cultural, racial, caste, communities, man and women will have been properly represented to the system of state.
20. Most of the national development budget will be borne from internal resources.
21. Foreign aids, grants or assistance will be limited to certain areas Nepal will be led towards self depended and foreign aids will have been gradually.
The above mentioned goals for sartorial objective are to determine direction and policy formulation to achieve them.
5.3.1 Goal of Sustainable
development:
The 2030 Agenda for Sustainable developing adopted by all United Nations Member State in 2015 provides a guideline for peace and prosperity for people at present and future. It includes 17 sustainable development goals (SDGS), which are an urgent call for it includes 17 Sustainable development Goals (SDs), which are an urgent call for action by all countries.
1. End poverty in all its forms everywhere.
2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture.
3. Ensure healthy lives and promote well-being for all at all age’s goal.
4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities.
5. Achieve gender equality and empower all women and girls.
6. Ensure availability and sustainable management of water and sanitation for all.
7. Ensure access to affordable, reliable sustainable and modern energy for all.
8. Promote sustained, inclusive and sustainable economic growth full and productive employment and decent work for all.
9. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.
10. Reduce inequality within and among countries goal.
11. Make cities and human settlements inclusive, safe, resilient and sustainable.
12. Ensure sustainable consumption and production patterns.
13. Take urgent action to combat climate change and its impacts.
14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development.
15. Project, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat, desertification, and half and reserve land degradation and half biodiversity.
16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels.
17. Strengthen the means of implementation and revitalize the global partnership for sustainable development.
4.3.2: Zero Poverty in Nepal
Sustainable
development Goal one is related with poverty alleviation the purpose of this is
to end all forms of poverty. Using the
international standard for extreme poverty of an income of U$$ 1.25 per day,
less than 25 percent of the population is living below this line. The poverty
gap ratio has narrowed to 5.6 percent of the population is living below this
line. The poverty gap ratio has narrowed to 5.6 percent, while per capita GNI
stands at USS 772 in 2015. Poverty has fallen not just nationally but across
all its major dimensions. Poverty (as defined nationally is targeted to decline
from 23.8 percent to 5 percent by 2030.
Ending absolute
poverty in Nepal by 2003 is an ambitious target. Eradicating poverty requires
the two-pronged strategy of expediting economic growth and the more equitable
distribution of incomes through policy interventions in the labour market and
financial market along with expanding social protection measures. The
international community needs to work closely with government stakeholders to
implement the country strategy. Given the knowledge-driven production process
that involves substantial flows of both technology and capital, and an
effective international framework for the smooth transfer of technology and
support for innovation is critical for achieving the economic growth objective
to uproot absolute poverty.
End poverty in all its forms everywhere includes the
following.
1. Eradicate, by 2030, extreme poverty for all people
everywhere.
2. Reduce at least by half the proportion of men, women and
children of all ages living in poverty as nationally defined.
3. Implement appropriate social protection systems and
measures for all.
4. Have equal rights to economic resources, natural
resources, and technology as well as access to basic services.
5. Build the resilience of the poor and vulnerable people to
economic, social and environmental shocks, disasters, and climate-related
extreme events.
Nepal is implementing several social protection programmers
including income generation for the poor, senior citizen allowances, pensions
for retired employees, and free basic education and primary health care
services. The government has initiated various programmers targeting the poor,
aged people, children, and disables people, socially excluded and marginalized
communities, and conflict affected people. More than teeth (11.3 percent) of
the total national budget is spent on social protection activities. However,
such programmers are scattered and often implemented without proper targeting
and monitoring.
The current share of the bottom income quintal in national consumption is only five percent. Both the economic growth and distribution strategies are oriented to improve the consumption status of bottom quintile households. The government is providing economics rights to its people, is trying to minimize all sorts of economic rights to its people, and is trying to minimize all sorts of economic discrimination, and is formulating and implementing programmed
For the protection, development and empowerment of the classes and communities that lag economically. The government has taken tax and other policy measures to increase the ownership of property by women with women now owning nearly a quainter of landed property in urban areas.
The SDG 1 targets for 2030 are ambitiously set:
1. Reduce extreme poverty to less than five percent.
2. Reduce the poverty gap to 2.8 percent.
3. Raise per capita income to U$$ 2,500 from U$$ 772 in
20115.
4. Reduce nationally defined poverty to less than 5 percent.
5. Increase the consumption share of bottom 20 percent
household to 12 percent.
6. Increase social protection expenditure is to 15 percent of
the national budget.
7. Reduce the economic vulnerability index from 24.6 to less
than 18.9.
Nepal has made rapid
progress on reducing absolute poverty despite a far from favorable political
and economic climate. However, there are significant challenges for ending
absolute poverty by 2030 particularly with the reversals caused by the recent
earthquake. The major concern is how to consolidate the gains in poverty
reduction, make them sustainable and shift the policy discourse gradually from
absolute poverty to that of prosperity in general. Since employment is the key to poverty
reduction and empowerment and the overall development of Nepal’s domestic
labour market.
Poverty in Nepal is linked with slow economic growth, underemployment, and social and geographical exclusion, eradicating extreme poverty implies addressing all these challenges. While social and geographical exclusion could be corrected with socioeconomically transformational interventions enhancing economic growth to a level sufficient to eliminate poverty reduction and empowerment of the people, further investments are needed in human capital, skill development and the required higher levels of cooperation from development partners.
Eradicating poverty requires the strategy of expediting economic growth and redistributing income redistributing incomes through policy interventions in the labour market and financial market along with expanding social protection. The international community should work closely to implement the country strategy. Unblocking Nepal’s economic growth potential requires enabling global trade, investment and labour market opportunities, which advanced and developing partner countries can also facilitate.
The improved economic opportunities for poor Nepalese outside the country’s borders have played large role in reducing poverty in Nepal. Thus, along with domestic policy measures, sustained labour market opportunities in the industrial and Middle East countries will be a s precondition for Nepal’s poverty reduction achievements. Liberal negotiations on the moment of persons under the words trade organization (WTO), a safe and remunerative external labour market, and the expansion of the domestic labour market are essential to end absolute poverty.
5.3.3 Zero Starvation
Sustainable development goal two purposes ending hunger, achieving food security improving nutrition and promoting sustainable agriculture. In Nepal. Still 3020 percent of children aged 6-59 months are underweight while stunning persists in 37.4 percent of under five years’ old children and wasting in 11.3 percent of the same age group. The proposed target is to reduce the prevalence of stunting in children under five years, of underweight children (aged 6-59 months) and anemia among women of reproductive age and children to less than one percent.
Achieving the agriculture goal is instrumental for achieving several other goals including those concerning absolute poverty, education, health, environment and inequality. But the global and regional high and unequal regimes of agricultural subsidies and Nepal’s low agricultural productivity and the small scale of subsidies implies that the country cannot by itself protect its agricultural goods have not successfully encouraged Nepalese production and the patenting of technologies and seeds. The global community needs to work more to correct these anomalies and create a level playing field on the production and trade of agricultural goods.
End hunger is concerned to achieve food security and improved nutrition and promotes sustainable development through agriculture. Regarding this the sustainable development goal (SDG 2) has given importance on following major targets:
· End the hunger by 2030 and ensure access by all people safe, nutritious and sufficient food all year round.
· End all forms of malnutrition.
· Double agricultural productivity and the incomes of small scale food producers.
· Ensure sustainable food production systems and implement resilient agricultural practices.
· Maintain by 2020 the genetic diversity of seeds cultivated plants and farmed and domesticated animals and their related wild species, including through soundly managed and diversified seed and plant banks at the national, regional and international levels.
Nepal is in process in reducing the proportion of people who suffer from hunger. The nutritional status of children has somewhat improved. However still over 30 percent of children aged 6-59 months are underweight, while stunning (low height or age) and wasting (low weight for height) for children under five years of age are 37.4 percent and 11.3 percent. Respectively, Anemia remains a major child health problem for almost half (46 percent) of Nepal’s children by gender caste and ethnicity. Anemia amongst women of reproductive age remains high at 38.5 percent. More than one thirds (36 percent) of household s do not consume adequate food.
The government has given a top priority to agricultural and food and nutrition security different it has also endorsed the multi-sector Nutrition plan (2013-2017) in 2012 (NPC, 2012). The agriculture development Strategy, which was adopted by the government in 2015, envisages addressing the food and nutrition security needs of the most disadvantaged rural populations including lactating and pregnant women, indigenous and excluded communities and people in disadvantaged regions.
Livestock and crops are the major components of the country’s integrated agriculture system, and they are the main resources for ending hunger, achieving food security and improving nutrition. However, land productivity remains low at 3.6 metric Tons per hectare. Irrigated year round, a partner of Nepali farmers does not own land, and most financial institutions are not very interested to provide financial services to farmers.
The proposal specified targets for SDG2 for Nepal included the following:
·
Reduce the prevalence of undernourishment
(measure of sufficiency of access to food at country level).
·
Reduce
the prevalence of
underweight children under five years of age.
·
Reduce
the proportion of household with inadequate food consumption (food consumption
score).
·
Reduce
the prevalence of anemia among women of reproductive age and children to less
than one percent each.
·
Increase
the food grain production by at least 50percent from the current level.
Agricultural transformation is a key to Nepal’s sustainable economic growth, social inclusion, poverty reduce and socioeconomic modernization, while increasing productivity and reducing underdevelopment in agriculture requires hug investment s in irrigation, road rural energy and market infrastructure developing the skills of uneducated and just literate people also requires huge investments in human capital. Thus, it is essential that the government and its development partners allocate more resources to agriculture as in Nepal agriculture is not only a sources of food security, jobs, and poverty reduction but also a means a means of socioeconomic transformation . Achieving the SDG targets for agriculture will be instrumental for achieving other goals including poverty reduction, education, and health environment and for less inequality. As a large part of the Nepalese population will still resort to agriculture for their livelihoods, income and employment prioritized resources allocation the improvement of rural infrastructure and the use of science technology and innovation in agricultural will help achieve several other goals alongside SDG2. Coordination between line agencies including on irrigation, and agricultural extension and research will be highly important. The global the relational high and unequal regional high and equal regimes of agricultural sub slider and Nepal’s low agricultural extension and research will be highly important, the global and regional high and unequal regimes of agricultural subsidies and Nepal’s low agricultural productivity and its small external shocks. The access of Nepal’s agricultural produce to global and regional markets will not be possible if the current global agricultural trade and subsidy regimes continue. The global community should provide preferential market access for the agricultural produce of LDCs like Nepal. If agriculture is to play a critical role in such countries economic growth, food security, underemployment reduction, and eradicating poverty.
Agriculture in Nepal is suffered by lack of competitiveness the unavailability 0of modern technology and the increasing monopoly on seeds. And non tariff barriers to cross border trade. The global negotiation on trade in agricultural goods under has not successfully encouraged Nepalese production and the patenting of technology and seeds by the advanced economies are depriving farmer of access to these inputs, the unequal subsidy regime across the border with India in agricultural production and trade of agricultural goods. Internal cooperation on agricultural production has distorted the market. The global community must work seriously in correct this anomaly because of inadequate response of donors for Nepal’s agricultural development.
Besides for a mountainous country like Nepal, there should be a specific provision f additional financing for infrastructure development for promoting agriculture. This includes improving irrigation, power rural roads, and infrastructure. This includes improving irrigation, power, rural, roads, and infrastructure. This should enhance productivity and market access, establish quality control mechanisms and improve post-harvest storage a processing. Ultimately these all help in reducing the alarming starvation from the country.
5.3.4 Decent Work and Economic Growth:
Increasing employment and ensuring decent work for all are essential aspects of sustainable development. Quality employment and decent work conditions help reduce inequalities and poverty, and empower people especially women young people and the most vulnerable such as people with disabilities. We therefore support our partner countries in creating and promoting jobs that provide decent earnings, ensuring safe working conditions, providing social protection, and safeguarding worker’s right.
Large section of Nepalese people still lives on the poverty situation with inadequate employment opportunities. The increased employment opportunities. The increased employment opportunities are not so good and appropriate as per need. The lack of decent work opportunities, insufficient investments and under consumption leads to an erosion of the basic social contract under-lying democratic societies. Even though the average annual growth rate of real GDP per capita is increasing over the year, labour productivity has decreased and unemployment rates has increased, standards of living begin to decline due to lower wages.
Sustainable economic growth will require societies to create
the conditions that allow people to have quality jobs that simulate the economy
while not harming the environment. Job opportunities and decent working
conditions are also required for the whole working age population. There needs
to be increase access to financial services to manage incomes accumulate asset
and make productive investment, increase
productivity and reduce unemployment levels in the world’s most impoverished
regions.
The international
labour Organization (ILO) defines decent work as productive work for women and
men in conditions of freedom, equity, security and human dignity”.
In general, work is considered as
decent when:
·
It
pays a fair income.
·
It
guarantees a secure from of employment and safe working conditions.
·
It
ensures equal opportunities and treatment for all.
·
It
includes social protection for the workers and their families.
·
It
offers prospects for personal development and encourages social integration.
·
Workers are free to express their concerns and
to organize.
Unemployment statistics do not reflect the full picture, in most partner countries;
people can’t find decent ones or are self employed with extremely low incomes.
Therefore, unstable employment and under employment are the main issues in
Nepal. To survive, people accept to be underemployed and combine several jobs
to try to make ends meet, the result is a high proportion of working poor in
developing countries.
Sustainable development goals (SDG 8) aspires do sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. The target for LDCs is at least seven percent per annum growth in per capita gross domestic product (GDP), which Nepal is targeted to achieve by 2030. Other proposed targets to meet this goal are growth of labour –intensive sectors like agriculture and construction by 5 and 10 percent, respectively.
The SDG 8 targets include the following:
1. Sustain and achieve per capita economic growth with at least 7 percent GDP growth per annum.
2. Achieve higher levels of economic productivity through diversification, technological upgrading, and innovation.
3. Achieve full and productive employment and decent work for all women and men.
4. Eliminate the worst forms of child labour.
5. Expand financial services to all. Current per capita GDP growth is less than 3 percent and underemployment is as high as 28 percent many children are in the worst forms of labour. The targets for Nepal for 2030 are as follows: increase per capita GDP growth to 7 percent reduce underemployment to less than 10 percent and eliminate the worst forms of child labour.
Sustainable development goal (SDG8) sustained inclusive high economic growth can reduce poverty faster. Making the economic growth process more inclusive also implies that productive forces, including labour, are engaged in the production process, which makes the growth process very much employment intensive. Nepal has made good progress in reducing poverty and there has been moderate growth with better distribution would further reduce the level of poverty. Nepal graduating from LDC status by 2022 requires at least 7 percent GDP growth per annum in the next seven years.
The accumulation of factors of production is not a sustainable way of achieving high economic growth; productivity must be increased with sound policies, the better use of innovations and good governance. The government needs to achieve higher levels of economic productivity through diversification technological up guarding and innovation, including by focusing on high value- added the labour-intensive sectors like agriculture tourism and small and medium enterprises (SME’s). Increasing labour productivity through skill enhancement and motivation schemes is also crucial.
Nepal’s financial system is mostly informal and not very inclusive financial services have not generated higher economic growth and financial resources are mostly allocated to trade and low value adding services. Financial services need to focus more on agriculture, tourism hydropower and SMEs so that they contribute more to economic growth and employment. The perceptions of multilateral institutions on financing policies and practices need to support this.
5.3.5 Quality Education:
Sustainable development Goal (SDG4) stresses to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all. Nepal has made good progress in primary education with the net enrolment ration (NER) 96.2 percent and the literacy rate of 15-24 year olds at 88.6 percent. Some of the proposed targets for 2030 include almost 100 percent enrolment and the completion of primary education, 95 percent of students being enrolled in the grade one to reach grade eight and 90 percent of children attending pre-primary education.
Achieving universal access to education, with gender parity at all levels of education, is a challenging task. Universal enrolment will be possible if resources are increase and innovative interventions put into practice. The SDG4 propose globally expanding the number of higher education scholarships for scholarship for students from LDCs including vocational tanning information, communication technology technical engineering and scientific programmers in developed and other developing countries. These commitments need to be reflected in action.SDG4 ensure inclusive and equitable quality education and promote lifelong learning opportunities for all. The targets under SDG4 include ensuring the following by 2030:
· All girls and boys will complete free, equitable and quality primary and secondary education leading to relevant and effective learning outcomes.
· All girls and boys will have access to quality early childhood development care and pre-primary education so they are ready for primary education.
· There will be equal access for all women and men to affordable and quality technical vocational and tertiary education, including university.
· A large percent of youth and adults having relevant skills, including technical and vocational skills, for employment, decent jobs and entrepreneurship.
· The elimination of gender disparities in education and equal access to all levels of education and vocational training for vulnerable people.
Secondary education is free only for selected groups. The low transition rate from primary to lower to higher secondary level and high dropout rates show that many children do not enroll in secondary education. The ratio of education. The ratio of students to teachers for basic education (up to level 8) and secondary education (up to level12) is encouraging at(less than 26 students per teacher). Almost half of children have attended an early childhood education programme.
.Gender parity has been achieve for school and territory level education Although Nepalese women big behind than various south Asian nations in terms of educational attainment, girls enrolment and completion of school and tertiary level education has improved significantly in the current decade. The adult female literacy rate for women aged 15 and above has also greatly increased. The proposed specific target for SDG 4 includes the following:
· Almost 100 percent enrolment and completion of primary education.
· 95 percent of students enrolled in grade one to reach grade eight.
· Attendance at pre-primary education by 90 percent of children.
· 75 percent increase in number of youth and adults who have relevant skills, including technical and vocational skills for employment decent jobs and entrepreneur.
· All youth and at least 95 percent of adults, both men and women achieving literacy and numeracy.
· The elimination of gender disparities in tertiary education.
· Increasing the human Assets index to 76 in 2030 from 66.6 in 2014
Ensuring and properly measuring the quality of educational outcomes is a difficult task without practical global indicators. Besides, considering Nepal’s socioeconomic, political and financial situation, achieving universal access to education with gender parity at all levels of education is a challenging task. There are substantial practical problems in achieving universal converging and defining quality primary and secondary education that leads to relevant and effective learning outcomes by 2030. Enrolment saturation will be possible if resources are increased and interventions put in to practice.
Regarding ensuring that all girls and boys have access to quality early childhood (ECD) care and pre-primary education so that they are ready for primary education by 2030, there is a need to define the quality of ECD, despite which saturation enrolment is possible. Nepal can set new targets for increasing the number of youths and adults with revert skills, including technical and vocational skills for entrepreneurship
Indicators need to be developed at family, community and school levels to measure the elimination by 2030 of education and vocational training for gender disparities in education and ensuring equal access to all levels of education and vocational training for the vulnerable, including persons with disabilities. Indigenous peoples and children in vulnerable situations. Substantial resources are required to implement the strategy for insuring child friendly teaching and learning and the creation of conducive school environment is needed.
All ten target to build and upgrade education facilities that are child disability and gender sensitive and provide safe, non-violent, inclusive and effective learning environments for al, there is a need to define minimum quality standards, future explanation and precise definition. In order to create the baseline for some of these targets, additional data is needed and some data collection tools need to be revised, which calls for additional resources. In some cases, the targets are too general and vague, and are thus difficult to quantify.
Economic growth will be inclusive when most citizens can participate in the production process, share the benefits, and are covered by social protection in case they are not able to participate. For inclusive growth labour intensive sectors will have to be promoted by state interventions, which may not be compatible with the norms of free market economics.
Economic growth will be inclusive when most citizens can participate in the production process, share the benefit are covered by social protection in case they are not able to participate. For additional resources, in some cases, the targets are too general and vague, and are thus difficult to quantify.
Strong initiatives are needed at national and global levels to encourage labour market reforms for decent work, social security for workers, and an end to gender indiscrimination in work and pay. The international labour Organization (ILO) and other United Nations agencies should be better resourced and capacitated to lead this reform process for Nepal and other developing countries.
Exercises:
Long questions:
1. What is foreign trade? Differentiate between domestic and international trade.
2. Define foreign trade? Explain its importance in the economy.
3. What is composition of foreign trade? Briefly explain about the foreign trade composition of Nepal.
4. Briefly explain the direction of foreign trade of Nepal. What are the major problems of Nepalese foreign trade?
5. Describe the objectives, principles and function of WTO?
6. Describe the objectives, principles and function of SAFTA?
7. What is meant by remittance? Explain the remittance situation of Nepal.
8. What is meant by foreign employment? Explain the foreign employment situation of Nepal.
9. What are the advantages and disadvantage of foreign employment in Nepal?
10. Define plan, state the objective, priorities and strategies of current plan of Nepal?
11. How is plan formulated in Nepal?
12. Define sustainable development and state the sustainable goals for Nepal.
13. Explain about the zero poverty of Nepal.
14. Discuss about the zero starvation in Nepal.
15. Explain about the decent work and economic growth.
Short questions:
1. Explain the importance of foreign trade.
2. Differentiate between domestic and international trade.
3. Briefly discuss about the growth of foreign trade of Nepal.
4. Briefly explain about the direction of Nepalese foreign trade?
5. What are the major problems of Nepalese foreign trade?
6. Mentioned the objective of WTO.
7. What is the function of WTO?
8. What is the main principle of SAFTA?
9. What are the objectives of SAFTA?
10. Explain the present status of foreign employment of Nepal?
11. Briefly explain about the present state remittance in Nepalese economy.
12. What are the advantages of foreign employment of Nepal?
13. Explained about the disadvantages of foreign employment of Nepal.
14. Explain about the concept of planning.
15. What is the sustainable development?
16. Briefly explained about zero poverty in Nepal.
17. Briefly discuss about the zero starvation in Nepalese context.
18. Explain about the quality education of Nepal.
Very short questions:
1. Define foreign trade.
2. Mention any four importance of foreign trade.
3. Mentioned any four differences between domestic and international trade.
4. Mentioned any four major problem of Nepalese foreign trade.
5. Mention any four objectives of WTO.
6. State any four the function of WTO?
7. Mention any four principle of SAFTA?
8. Mention any four objective of SAFTA?
9. Define remittance.
10. Mention any four advantage of foreign employment of Nepal?
11. Mention any four disadvantage of foreign employment of Nepal?
12. What is planning?
13. What is sustainable development?
14. What is zero poverty in Nepal?
15. Define zero starvation in Nepalese context.
16. What is quality education?
17. What is decent work?
18. Mention any four sustainable goals Nepal.
0 comments:
Post a Comment