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Country Diagnostics Studies Highlights - Nepal: Critical Development Constraints
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Nepal’s performance on the economic development front since turn of the century has lagged behind that of the other South Asian economies. In per capita terms, growth was even less favorable; as a result, Nepal’s per capita gross domestic product (GDP) remains the lowest in the region. In 2007, the per capita GDP in 2000 prices was estimated at $243 compared with $439 for Bangladesh, $660 for Pakistan, $686 for India, $1,144 for Sri Lanka, $1,277 for Bhutan, and $3,668 for Maldives. In terms of per capita GDP, Nepal is now where Sri Lanka was in 1960, Pakistan was in 1970, and India and Bhutan were in 1980. This lackluster economic performance has occurred despite some very important reforms during the 1990s and 2000s.
On the poverty front, remittance flows and investments in rural infrastructure have helped reduce poverty incidence from 42% in 1995/96 to about 31% in 2003/04. However, poverty incidence remain high and may climb further if the global recession reduces remittance flows. An emerging concern is the sharp rise in inequality—in terms of the Gini coefficient, inequality increased from 0.34 in 1995/96 to 0.41 in 2003/04. Given that inequality is considered 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, i.e. that future growth is inclusive.
Publisher:
ILO ,   (2009 )
Type / Script:
Progress Report in English
Keywords:
DEVELOPMENT, ECONOMIC DEVELOPMENT, ECONOMIC GROWTH, POVERTY, POVERTY MITIGATION, REMITTANCES, PHYSICAL INFRASTRUCTURES, INEQUALITY, INVESTMENTS, POLICY-MAKING, GOVERNANCE, CONFLICT, CIVIL WAR, DEVELOPMENT PROJECTS, TRANSPORT, LABOUR MARKET, INDUSTRIAL MANAGEMENT, EMPLOYMENT, SOCIAL SAFETY NETS, EDUCATION
Thematic Group:
 ILO : International Labor & Labor
Thesaurus:
02.04.00  -  Development
Reference Link:
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