An Overview of Nepalese Economy
There is nothing much to talk about when it comes to Nepalese economy.
The data doesn't paint a rosy picture at all. In fact the picture looks
grim. Nepal is among the poorest and least developed countries in the
world. In fact Nepal doesn't stand anywhere to its otherwise developing
neighbors such as India, Pakistan and Bangladesh. Thanks to the
Sub-Sahara African countries, it is not considered the poorest economy
now. Nevertheless, with almost 45% of its population living below the
poverty line, Nepal has to do much catching before being termed a
Developing Economy.
Agriculture is the mainstay of the economy, providing a livelihood for
three-fourths of the population and accounting for 38% of GDP. Most of
the agriculture activities take place in the Tarai region. The
sub-standard equipments and pesticides along with the medieval mode of
agriculture make it a tough affair. The industrial sector is in a dismal
condition. Industrial activity mainly involves the processing of
agricultural products including jute, sugarcane, tobacco, and grain.
These things are hardly considered industrial activities by New-school
economists.
Due to its long stint with monarchy and feudalism, Nepal has one of the
most uneven distributions of resources and wealth in the Asia. This has
led to the birth of counter initiative movements such as Maoism.
Security concerns relating to the Maoist conflict and counter insurgency
initiatives have led to a decrease in tourism, a key source of foreign
exchange. Nepal has considerable scope for exploiting its potential in
hydropower and tourism. These are considered the up coming hot cakes in
New-wave economy. Prospects for foreign trade or investment in other
sectors will remain poor, however. There are lots of reasons for this
such as the small size of the economy, technological backwardness,
landlocked geographic location, civil strife and its susceptibility to
natural disaster
Banking
in Nepal
Taj Mahal Tour
