write an essay on the topic of "Economic challenges and solutions in developing countries like Nepal"
Answers
Nepal is a beautiful South Asian landlocked country lying on the laps of the Himalayas, covering an area of 1,47,516 square km. It is surrounded by two giant nations; China in the north & India in the rest of the sides. From the huge Himalayas to hills and then Terai, more than 3 crore people have made Nepal their habitat and earn their livelihood.
Although Nepal has been trying for the betterment of the nation, still it lags behind in the present scenario on the world map. Some of the problems that are hindrances to the development of the country are listed below.
Development Issues & Challenges of Economic Development in Nepal

Poverty
Nepal has been known as one of the poorest countries in the world. 18.7% of people living below the absolute poverty line while the multidimensional poverty index is reported to be 28.6%. Nepal ranks 147th among 189 countries with a Human Development Index of 0.579 in the year 2019 which shows the critical condition of the population residing in Nepal. Low income, illiteracy, dependency on agriculture, lack of proper knowledge, lack of employment opportunities can be listed as the main causes of poverty. According to Economic Survey 2076/77, the per capita income of Nepal is $1085 i.e. Rs 1,26,018. Nepal is ranked 165th among 189 countries in terms of per capita income by World Bank for the year 2019 which illustrates the pathetic situation the country has been facing. The PCI of the USA & Maldives in 2019 is roughly 62 times and 10 times that of Nepal, Maldives being at the top of the chart among the SAARC nations. However 15th plan has aimed for the decrease in people living under the poverty line and multidimensional poverty index to 11% and 13% respectively.
Trade Imbalance & Economic Dependency
The trade imbalance of Nepal has been a major issue in the economic development of the nation. The trend of trade imbalance has indicated the dependency of Nepal on foreign nations. According to the economic survey 2076/77, import(924.24 billion) exceeds export (74.91 billion) by 12.3 times resulting in a trade deficit of 849.33 billion which is a huge number. Around 62% of total trade is done with India solely showing high dependency of Nepal on India while 14.8% trade is done with China. Moreover, Nepal depends on foreign nations for aids to perform development tasks. 92 countries around the globe can invest in Nepal. The total budget of Nepal for the current fiscal year is 1474.64 billion of which nearly 40% of the budget source comes from grants(60.52 billion) & loans(524.5 billion). This approach of forming capital has also been an economic burden for the nation.
Lack Of Physical Infrastructures
Physical infrastructures like transportation, electricity, communication, etc are the backbone of the national economy. The better the physical infrastructures, the better is the national economy of the country. But since Nepal is a developing country, it has still a long way to go for the achievement of the best physical infrastructures. Though the urban areas have an access to all of these infrastructures, rural areas are yet to be brought into the idea of new infrastructures over orthodox or conventional ones.
On the completion of the 14th plan, 88% of people have been using electricity while the remaining 12% being on the dark side. 89% of people have an access to drinking water while the remaining 11% are walking hours and hours to fetch a bucket of water. Only around 66% of people use internet services and know about world &
Answer:
Development Issues & Challenges of Economic Development in Nepal
Poverty
Nepal has been known as one of the poorest countries in the world. 18.7% of people living below the absolute poverty line while the multidimensional poverty index is reported to be 28.6%. Nepal ranks 147th among 189 countries with a Human Development Index of 0.579 in the year 2019 which shows the critical condition of the population residing in Nepal. Low income, illiteracy, dependency on agriculture, lack of proper knowledge, lack of employment opportunities can be listed as the main causes of poverty.
Trade Imbalance & Economic Dependency
The trade imbalance of Nepal has been a major issue in the economic development of the nation. The trend of trade imbalance has indicated the dependency of Nepal on foreign nations. According to the economic survey 2076/77, import(924.24 billion) exceeds export (74.91 billion) by 12.3 times resulting in a trade deficit of 849.33 billion which is a huge number. Around 62% of total trade is done with India solely showing high dependency of Nepal on India while 14.8% trade is done with China. Moreover, Nepal depends on foreign nations for aids to perform development tasks. 92 countries around the globe can invest in Nepal
Lack Of Physical Infrastructures
Physical infrastructures like transportation, electricity, communication, etc are the backbone of the national economy. The better the physical infrastructures, the better is the national economy of the country. But since Nepal is a developing country, it has still a long way to go for the achievement of the best physical infrastructures. Though the urban areas have an access to all of these infrastructures, rural areas are yet to be brought into the idea of new infrastructures over orthodox or conventional ones.
Prevalence Of Poor Technology
The world is marching towards more powerful technologies and their advancement in order to save time, money and increasing work efficiency. The use of poor technology in Nepal has become a constraint to developmental works as more time and human capital are required which in turn gives a low value. A huge capital and trained experts are the main requirements to foster new technologies. Furthermore, science and technology have not been given proper attention and lags behind in the priority list of the government. Thus, the deficiency of capital and absence of skilled labor has become major hurdles in spreading new advanced technologies in Nepal.