On 8-9 April 2015
in
Bangkok, Thailand
Organized by
APCTT, STI and RIS
Presented by
Prof. Dr. Ram Chandra Dhakal
Executive Director,
Centre for Economic Development and Administrative(CEDA),
Tribhuvan University
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Nepal Lies between two big countries China and
India.
 It is a land locked Country.
 Total land area is 1,47,181 sq. km.
 Land area is 143351 sq. km.
 Water covered area is 3830 sq.km.
 it is Divided into three zones Viz Three geographical
region Terai, Hill & Mountain.
 Snow Covered High Himalayas (Mountain) ,15% of
total area.
 Hilly region including long terraces & fertile valleys,
68%
 Sub-tropical plain Region (Terai), 17%.
 Land elevation from 70 m. to 8848 m (Mt. Everest)
from mean sea level.

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2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14
Average
Agriculture
Non-agriculture
Industry
Service
Economic growth
2004/05
Fiscal Year
3.5
3.2
3.0
3.3
3.2
1.8
5.3
4.5
5.6
3.7
1.0
4.4
3.9
4.5
2.8
5.8
5.9
1.7
7.3
5.8
3.0
4.3
-0.6
6.0
3.9
2.0
5.4
4.0
5.8
4.3
4.5
3.6
4.3
3.4
3.8
4.6
4.5
3.0
5.0
4.6
1.1
4.6
2.5
5.2
3.5
4.7
5.3
2.7
6.1
5.2
3.2
4.7
2.9
5.2
4.1
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Date
Competitiveness
Ranking
Competitiveness
Index
2014
117
3.66
2013
125
3.49
2012
125
3.47
2011
130
3.34
2010
125
3.34
2009
126
3.37
2008
114
3.38
2007
104
3.45
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Note:1 US$=NRs 100
around
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



Poverty Headcount Index refers to the
proportion of population, to the total
population, who are living below the poverty
line.
Poverty Gap Index refers to the measurement of
gap between poverty line and the average
number of people living below the poverty line.
Squared poverty Gap Index refers to disparity
status among the poor. Likewise,
Gini Index reflects the uneven distribution of
income among the people.
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






MGD Goal-1(Eradicate extreme poverty and hunger):
Population ratio with less than one dollar a day income is
16.4% (progress till 2012/13) and the target for 2015 is 17%
Population ratio remaining below daily national poverty line
is 23.8% (progress till 2012/13) and target for 2015 is 21%.
Ratio of population employed at less than one dollar a day
is 22% (progress till 2010) and target for 2015 is 17%.
Population with food less than the minimum requirement
15.7% (progress till 2012/13) and target for 2015 is 25%.
Underweight Children of (6-59 months) age group 28.8 %
(progress till 2012/13) and target for 2015 is 29%.
Children of age group (6-59months) with stunted growth
40.5% (progress till 2012/13) and target for 2015 is 30%.
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 MGD



Goal 2 (Achieve universal primary
education) achievement and targets are as follow:
Net Enrollment Rate at Primary education Level
is 95.3% (progress till 2012/13) and the target
for 2015 is 100%.
Ratio of students enrolled in grade one and
continuing to grade 5 is 84.2 % (progress till
2012/13) and the target for 2015 is 100%.
Literacy rate of women and men of age group
(15-24 years) is 86.6% (progress till 2012/13)
and the target for 2015 is 100%.
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 MGD




Goal 3(Promote gender equality and empower
women):
Ratio of Primary Level Boy and Girl Students
was 1.02 (progress till 2012/13) and the target for
2015 is 1.
Ratio of Secondary Level Boy and Girl Students was
0.99 (progress till 2012/13) and the target for
2015 is 1.
Ratio of Boy and Girl Students at Higher Education
was 0.63 (progress till 2010) and the target for
2015 is 1.
Literacy rate of women and men of age group (15
and above years) for male was 71.6 % and for
female was 44.5% (progress till 2012/13) and the
target for 2015 is 1.
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 MGD
Goal 4( Reduce child mortality):
 Children below the age of one year vaccinated
against measles was 85.6% (2011) and target for
2015 is 90%.
 Child mortality rate below 5 years of age (per 1000
live births) was 54 and target for 2015 is 54(38).
 Infant mortality rate (per 1000 live births) was
46(2011) and target for 2015 is 36.
 MGD Goal 5 (Improve maternal health):
 Maternal mortality ratio (per 100,000 live births)
was 170 (2012/13) and target for 2015 is
213(134).
 Percent of women giving birth with help of Skilled
Health Worker was 50 (2012/13) and target for
2015 is 60.
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 MGD




Goal 6 (Combat HIV/AIDS, malaria and other
diseases:
Age Group between 15-49 with HIV/AIDS Infection
was 0.12 % (2012/13) and target for 2015 is halt
and reverse the trend.
Infected with Malaria ( per 1000 population) was
3.28% (2012/13) and target for 2015 is halt and
reverse the trend.
Tuberculosis prevalence rate (Per 100,000
population) was 238 and target for 2015 is halt
and reverse the trend.
Mortality rate from TB (Per 100,000 population)
was 21 (2012/13) and target for 2015 is halt and
reverse the trend.
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 MGD



Goal 7(Ensure environmental
sustainability):
Forest Covered Area (%) was 39.6 (2012/13)
and target for 2015 is 40.
Population with access to sustainable water
source (%) was 85 (2012/13) and target for
2015 is 73.
Population with sustainable access to improved
sanitation (%) was 62 (2012/13) and target for
2015 is 80.
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Poverty Headcount
Index
Poverty gap index
Squared Poverty
Gap Index
1995/9 2003/
6
04
1995/
96
1995/
96
2009/
10
2003/
04
2009/
10
2003/
04
2009/
10
Nepal
41.76 30.85 25.16 11.75
7.60
5.43
4.67
2.70
1.81
21.55
6.54
2.20
3.19
2.65
0.70
1.01
Rura
l
43.27 34.62 27.43 12.14
8.50
5.96
4.83
3.10
2.00
Urban
9.55 15.46
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 The
Poverty Alleviation Fund has been
conducting demand-led programs in line with
five (5) guiding principles namely,
I.
II.
III.
IV.
V.
Antondaya- targeted to the poor,
Social inclusion,
Transparency,
Demand program, and
Through the mechanism of direct fund flow
to the communities.
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

Programs are being implemented through
formation of Community Organizations (COs)
and their institutional development with the
objective of ensuring full representation of
the poor communities for implementing the
community owned programs.
The Fund has been collaborating with various
Support Organization (SOs) including local
bodies, NGOs, COs, and private institutions
to provide necessary support to the
communities for social mobilization
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Development of community-based approaches and
management models of rural infrastructure are key for
ensuring sustainability;
 The human rights based approach has been a part of
water and sanitation interventions since the beginning,
manifested through mainstreaming of gender and
social inclusion by step-by-step approach and working
in the most remote and poorest areas;
 The provision of support to the GoN in developing
decentralized working and funding modalities based
on self-governance build strong ownership and ensure
accountability and transparency;
 The introduction of appropriate technologies in the
sector, for example for rainwater harvesting and
arsenic mitigation, is well adjusted for local conditions

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



Size of population in current census is around
27 Million.
500,000 youth are introducing annually in
labour force.
In average 1500 youth are going each day to
abroad to search work/job.
Nepal is planning for upgrading from LDCs to
developing countries by 2022 that requires
double digit economic growth rate but the
average annual growth rate for the past 10
years it has been 4.1 % only.
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



In agriculture around two-third population is
employed and its contribution in GDP is around
one-third but its growth rate is 3.2 %.
Saving is only 9 % of GDP that supplies low
investment gives low income and
corresponding low saving.
Political instability creates disincentive for FDI,
in this context the government policy for
investment does not work properly.
Around half share contributes from service
sector and only 15% of GDP from industry.
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


Declining the poverty line and current it is 23.8%
but the poverty intensity has remained higher,
gap between rich and poor is still remains wide.
Remittance inflow is increasing due to increase in
number of labour in abroad for foreign
employment amid the absence of adequate
employment opportunities in domestic labour
market.
However, the population growth rate is 1.35 % in
last census(2011)while it was 2.24% in 2001.
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



Nepal has achieved important progress in the past few
years, with increased political stability and substantial
gains made in reducing poverty and expanding access
to services.
However, economic growth has been modest compared
to its neighbours and the economy - highly dependent
on remittances - lacks dynamism.
Nepal needs a new economic model to achieve faster
and sustained growth as well as further improvements
in human development and poverty outcomes.
Investment, Infrastructure, and Inclusion. Investment is
the bedrock of a sustainable growth model but in Nepal,
the state, firms and households critically under-invest.
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



In order to unlock investment as well as to expand
access to services and opportunities for all, public
infrastructure is critical, but Nepal is under-connected
and under-powered.
Finally, growth alone will not ‘deliver’ continued fast
progress on inequality and poverty reduction unless the
growth model is calibrated for inclusion, which in turn
can help sustain dynamic growth.
In short, the overall development challenge for Nepal is
to promote faster, sustainable and inclusive growth and
lay solid foundations for future prosperity.
to make it more resilient to shocks, more efficient in
intermediating savings for productive use, and better
able to reach those firms and households currently unor under-served.
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


To remove the obstacles that firms face in setting-up
and expanding operations in Nepal by alleviating the
regulatory burden on firms, reducing non-wage costs of
labor, effectively incentivizing production for export
and offering foreign investors easier access to Nepal.
To leverage the significant fiscal space that Nepal
enjoys and enable better public expenditure
management by aligning budgets to policy priorities,
boosting utilization and ensuring greater value for each
rupee spent. Investment on R& D is very low in Nepal.
Infrastructure is central to meeting both investment for
growth and inclusion challenges. Nepal’s infrastructural
challenges are formidable. Necessary investment would
need to address both a quantity and quality deficiency,
particularly in transport and energy.
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 Unlocking
Nepal’s hydro-potential: Focusing
on core bottlenecks that currently hold back
public and private investment will be needed.
This includes on a sound financial footing,
enhancing the policy framework to provide
appropriate incentives to private investors,
and enhancing policies for the compensation
of affected persons.
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


Expanding connectivity within Nepal and with its
neighbours: This would require improving the efficiency of
spending on transport infrastructure through more
attention on maintenance and better coordination across
implementing agencies, as well as greater focus on
transformational interventions, such as the Fast Track
(Kathmandu-Terai) project.
Improving the supply of water and sanitation services: This
would involve a two pronged approach to improve the
sustainability of rural water supply schemes and
incentivizing urban providers to deliver better services.
Higher growth is a necessary but insufficient condition for
reducing poverty and inequality at a fast pace. In order to
walk the extra mile the program should be inclusive.
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 Active
promotion through inclusive public
policies will be needed to reach remaining
pockets of deep, entrenched poverty, ensure
that opportunities.
 Not
just income- are effectively available to
all Nepali and to provide those vulnerable
with adequate protection against shocks.
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A.
B.
Boosting agricultural productivity and diversity:
Because any gains in the agricultural sector,
which accounts for over one third of GDP and
employs around three-quarters of Nepal’s
population,
would
immediately
and
automatically reach the poor.
This could be achieved by public initiative to
boost cooperation and research in agricultural
technologies as well as targeted programs to
develop agribusiness and value chains with
export potential
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


Expanding the opportunity set of all Nepalese:
Through interventions in the health and education sectors
to remove remaining social and economic barriers to
access to services and to enhance service quality in order
to leverage access gains.
Enhancing the poverty impact of social protection
programs: By limiting further proliferation of programs,
strengthening core administrative systems and developing
a program explicitly designed to address poverty and
other priority risks and vulnerabilities.
Preparing for decentralization: Because the move to a
federal state will imply a fundamental administrative
restructuring, it is key to ensure that the administrative
systems are in place for service delivery to proceed and
that the new roles of each level of government are clear
and funded.
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Commitment of Major Political Parties and Gov of Nepal
 Develop a competitive and globally integrated economy.

Promote export-oriented and import substituting industries, and
construct dry ports inside industrial zones itself.

Ensure good industrial relations and promote industries to utilize
domestic raw materials and generate employment opportunities.

Human
resources
development
through
technical
and
scientific
education, and integrated skills development training.

Employment and production centric double-digit growth and in 15 years times attain
self-sufficiency with shared prosperity. Formulate action plan for rapid
modernization and commercialization of agriculture sector; develop
hydropower and energy with utmost priority and as a national campaign;
and develop road, railway, ropeway, airport, canal and large physical
infrastructure to achieve double digit growth.
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
Achieve
an
average
13.2%
growth
in
industry,
hydropower and construction sectors.

Raise Nepal’s HDI score to 0.781 from the current
0.462.

Ensure two-thirds investments from private sector by
attracting domestic and foreign investors. Gradually
increase domestic investment to completely substitute
foreign loans in 40 years.
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Thank You
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