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Country Diagnostics Studies - Nepal: Critical Development Constraints (2009)
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Nepal’s performance in terms of economic development has lagged behind that of the other South Asian economies despite the important reforms made during the 1990s. In per capita terms, the growth was even less favorable: Nepal’s per capita gross domestic product (GDP) has been the lowest in the region since 1990. Despite the lackluster growth performance, poverty incidence declined from about 42% in 1995/96 to 31% in 2003/04. While this is a welcome development, the level of poverty remains high. In addition, an emerging concern is the rise in inequality over the same period—from 0.34 to 0.41 in terms of the Gini coefficient. Given that inequality is thought to be one of the most significant drivers of the recent conflict, it is important that a new growth strategy opens up economic opportunities for hitherto excluded groups.The latest national plan, the Three Year Interim Plan (2007/08–2009/10), spells out the government’s commitments for addressing the many challenges it still faces, particularly against the backdrop of its fragile law-and-order situation, following the end of the 11-year armed conflict in April 2006. The plan focuses on enhancing reconstruction and rehabilitation, improving governance, and pursuing a more inclusive development process, and aims to achieve 5.5% GDP growth per annum and to reduce poverty incidence by 7 percentage points to 24% by 2010 (NPC various years).This report has two interrelated objectives. The first is to identify critical constraints to long-run economic growth and equitable development in Nepal. The second is to spell out policy options that stand a good chance of overcoming the constraints identified to broad-based growth and to achieving the government’s development targets.
Publisher:
ILO ,   (2009 )
Type / Script:
Progress Report in English
Keywords:
DEVELOPMENT, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, INVESTMENTS, ENTREPRENEURSHIP, EMPLOYMENT, EDUCATION, SOCIAL SECURITY, SOCIAL SAFETY NETS, POLITICAL STATUS, DEVELOPMENT POLICY, DEVELOPMENT PLANS, POVERTY, INEQUALITY, PHYSICAL INFRASTRUCTURE, ELECTRICITY, DRINKING WATER, INDUSTRIAL MANAGEMENT, TRANSPORT, CORRUPTION, MIGRATION, REMITTANCES, POLITICAL ECONOMY, GOVERNANCE, LABOUR MARKET
Thematic Group:
 ILO : International Labor & Labor
Thesaurus:
02.04.00  -  Development
Reference Link:
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