What Is The Problem In Nepal Economy What Should Be Done To Solve It?
Posted in Nepal on 05/28/2009 11:07 pm by NepalNepal is currently in big economic problem. Following are some major problems.
1) According to government data GDP growth is acomplia purchase below 2%. In my opinion actually it is negative.
2) Inflation is very high. It is above 7.5% to 8%.
3) Export is declining by 5 to 10 percent every year.
4) Import is increasing 10 to 15 percent every year.
5) There is very little new investment. Almost nil.
6) Currency is fixed with Indian currency.
7) Fuel prices are fixed since last two years. State owned Nepal Oil Corporation is loosing about 1.5 million US Dollars every month.
Rigid labor policy. Minimun wages increases every year.
9) Lot of labor force is going outside country every year for work.
10) 40% to 50% government budget is based on foreign assistance.
11) Enough foreign exchange reserve only due to remittance from outside.
12) Political unrest.
Anyone suggest me how to solve this economic crisis.
05/28/2009 at 6:07 pm
Nepal really does not have an economic problem at all but suffers from a political culture that is destroying the economy. Nepal has a beautiful landscape and the population is not high. Nepalese are generally capable of and willing to put in hard work. Nepal has a large market for its good in India. Many Nepalese work in India as if they are Indians. Nepal is very attractive tourist destination. Average per capita income can go up very high within a short period in Nepal. But this will not happen because the educated minds in Nepal are too much influenced by corruption examles in India and Bangladesh, as well as by the useless slogans they borrow from China. The greed for power and money among the educated elite and politicians of different varities is very high. That is why the Nepalese suffer. Nepal has so many advantages to grow economically at a fast pace, the politicians creates chaos, uncertainty and instability to suit their own interests. If the younger Nepalese realise this and gradually ease out the self-seekiing warring politicians from left to right, they will have changed the conditiond for economic regeneration of Nepal.
05/28/2009 at 6:07 pm
physical isolation is a major barrier. That, and their relative lack of abundance of natural resources. Natural resource extraction is the only way to generate REAL capital, otherwise you are just spinning your wheels.