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Nepal
A Country Assessment Study was undertaken in Nepal. The
following is a summary of the findings.
March 2000
NEPAL IS A LANDLOCKED least-developed country with a
very low level of human development and widespread environmental
degradation. In recent decades it has made significant progress in
education and literacy and modest progress in other indicators of human
development. But inadequate growth, agricultural stagnation, increasing
inequality of income distribution and continues disadvantagees of women
have slowed down Nepal's progess SHD.
The country implemented a
substantial programme of structural adjustment during the mid 1980s, and
in the early 1990s it implemented a far-reaching programme of reform of
the trade regime and related policies to facilitate its integration into
the global economy. These reforms have resulted in a significant growth in
trade. But this growth has not been robust: exports have become less
diverse both in terms of composition and destination, and the inflow of
FDI has been very modest. Furthermore, the favourable initial effect of
globalisation on economic growth has not been sustained and the inequality
in the distribution of income has continued to rise.
The weak
impulse of reforms on trade and growth has been due to many problems: the
difficulty of promoting worthwhile infant industries because its
location places Nepal in a de facto free trade situation vis-a-vis
relatively developed India; the high cost of transit and transport to
ports from which it can access international markets; and generally low
elasticity of supply.
A mission by the Global Programme to Nepal in
December 2000, noted the importance of enhancing the competitiveness of
the economic reform process, the need to strengthen the legal and
regulatory system as well as economic governance, reform of the tax system
and government support for the private sector.
Follow up action is
being undertaken to conduct an investment and technology policy review and
to strengthen capacity building in the field of commercial diplomacy. The
International Trade Centre (ITC) is
preparing a project proposal on the establishment of export processing
zones in the rural areas and the development of export created
micro-enterprises.
For more information email globalprogramme@unctad.org
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© United Nations 2001 |
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