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Nepalese Economy:
Obsolescence, Underpinning and
Approaches to Sustainable Development
-Madan Kumar Dahal
NEPALESE ECONOMY, largely a subsistence as well as high-cost economy
with no direct access to sea for expanding interna� onal trade, and limited
transit facili� es, rising interest rate on lending, high tax burden, and costly
doing business, is passing through a downswing phase circumscribed by
poverty and stagna� on. The economy is strangulated by sluggish economic
growth rate, poor governance and rampant corrup� on, where a majority
of the people lives in abject poverty struggling for their survival. The
interna� onal comparison illustrates that Nepal's economy is conspicuously
trailing behind other member countries in the SAARC region. Prolonged
transi� on engulfed by growing risks and uncertain� es with increasing
ineffi ciency, corrup� on and poli� cal entrenchment jeopardized the
en� re prospects for economic development. In addi� on, the respec� ve
governments in the past and to-day are terribly engaged in managing the
crisis with li� le emphasis and priority over resolving crucial economic issues.
Investment is not a constraint to growth of Nepal, but lack of visionary and
determined leadership with strong poli� cal commitment to fulfi ll aspira� ons
of the common people is detrimental to economic progress and prosperity
in Nepal. The vision or mission of Nepalese economy should be to build a
strong economic na� on-state through ac� ve par� cipa� on of the people
ensuring a high quality of life to each individual and household within the
given � meframe. The primary objec� ves of Nepalese economy should be
Changing paradigms of aid eff ec� veness in Nepal 19