There is despair, there is a glimmer of hope

However, less than a decade after the implementation of the federal republican system, there are comments in the media that there is despair in the country. The concept that nothing happened and nothing can happen in Nepal is widespread. Therefore, now the youth are leaving the country for jobs and studies. Getting a foreign visa is considered an indicator of success. There is a situation where Nepalis are going to war and dangerous countries. Is it because of the lack of development that people have to be depressed? Let's analyze some indicators of economic development.

macroeconomic situation

During the Panchayat period, the average economic growth rate of Nepal was 3.1 percent. The average economic growth rate during the post-panchayat period was 4.4 percent. Before Covid, the average economic growth rate for three consecutive fiscal years was 7.7 percent. Although there has been a revival in economic activity post-Covid, there has been some relaxation due to external pressures. The average economic growth rate of Nepal is not so low but it is less than the required rate to take a leap in development. In 30 years, the per capita income of the panchayat increased from 51 US dollars to 185 and in the following 33 years, it increased 7 times to 1366 US dollars. It is the lowest in South Asia. This shows that the rate of economic development of Nepal is only at a slow pace.

The average price increase in the last decade of the Panchayat period was 10.6 percent, while the average price increase in the following years was 7.5 percent, and the average price increase in the last decade was 6.3 percent. As a developing country, the price increase should be considered normal. There is no high inflation.

Looking at the structural changes of the economy, during the Panchayat period, the share of the agricultural sector in the total domestic product could only decrease by 4 percent. At that time the service sector was not flourishing. During the 33 years after the Panchayat, the share of the agricultural sector in the GDP has come down from 61 percent to 24.1 percent, which can be considered positive. However, it is the industrial sector that has not flourished after Panchayat. During the Panchayat period, the government itself operated many industries. Along with liberal economic policies, imports were liberalized and government-run industries were privatized. Domestic production could not compete with the open imports following the liberalization policy. After Panchayat, continuous struggle for rights, labor unrest, regular bandhs/strikes, prolonged internal conflict and lack of energy also prevented the industrial sector from flourishing. Recently, the work of getting rights has been completed, social security has been arranged, labor unrest has decreased, and energy production has also increased, so an environment has been created for industries to flourish.

After the Panchayat, the current account was changed according to the economic liberalization policy. This opened up imports. However, the average annual import of the panchayat increased by 18 per cent in the last decade, and in the subsequent 33 years, the import has increased only by an average of 15 per cent annually. Exports have fallen since Panchayat period due to low production and productivity and unable to compete in the international market. Due to this, the trade deficit increased to 33.7 percent of the GDP in 2075/76. Due to globalization and liberalization, the external labor market has opened up for Nepalis, while the tendency to go for foreign employment has increased rapidly in recent years due to the internal conflict within Nepal and the lack of job creation in the formal sector. Due to the ease of immigration and study visas in developed countries, the trend of emigration for residence and study has increased. Due to the increase in remittances received from foreign employment, it has become possible to meet the increasing imports.

A sector that has thrived well in economic liberalization is currency and banking. The share of money lenders in GDP, a key indicator of financial intensity, rose from 5.4 percent in 1960 to 32 percent by the end of the Panchayat. However, in the following 33 years, the ratio has reached 114 percent. By the time the Panchayat ended, there were only 5 commercial banks, 2 development banks and one national insurance company in Nepal. Now the presence of banks and financial institutions is significant. It has become easier to open a bank account, withdraw money and get a loan, while financial access has increased. The sector of real production has not progressed in line with the expansion of the banking sector. Monetary and credit expansion seems to play a major role in increasing real estate prices.

Poverty situation

Nepal's first living standard measurement survey showed that poverty was 41.8 percent in fiscal year 2052/53. The third survey showed that by 2068, the population below the absolute poverty line in Nepal had decreased to 25.1 percent. The rate of multidimensional poverty also decreased rapidly from 28.6 percent in 2014 to 17 percent in 2017. The Human Development Index increased from 0.378 in 1990 to 0.602 in 2021. Even in the midst of conflict and low economic growth, Nepal is one of the countries that has succeeded in human development.

The literacy rate is improving due to the expansion of education. At the end of the Panchayat period, the literacy rate was 33 percent and in 2078, the literacy rate has reached 75 percent. This rate is not suitable for the present time. There was only one university during the Panchayat period, but now there are 16 universities in Nepal. Although there is controversy regarding the quality and involvement of the private sector in education, access to higher education is increasing. However, due to the poor quality, the human resources have not been prepared to compete in the world market, to solve the problems of the internal economy and to become entrepreneurs.

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During the Panchayat period, the average economic growth rate of Nepal was 3.1 percent. The average economic growth rate during the post-panchayat period was 4.4 percent. Before Covid, the average economic growth rate for three consecutive fiscal years was 7.7 percent. Although there has been a revival in economic activity post-Covid, there has been some relaxation due to external pressures. The average economic growth rate of Nepal is not so low but it is less than the required rate to take a leap in development. In 30 years, the per capita income of the panchayat increased from 51 US dollars to 185 and in the following 33 years, it increased 7 times to 1366 US dollars. It is the lowest in South Asia. This shows that the rate of economic development of Nepal is only at a slow pace.0

During the Panchayat period, the average economic growth rate of Nepal was 3.1 percent. The average economic growth rate during the post-panchayat period was 4.4 percent. Before Covid, the average economic growth rate for three consecutive fiscal years was 7.7 percent. Although there has been a revival in economic activity post-Covid, there has been some relaxation due to external pressures. The average economic growth rate of Nepal is not so low but it is less than the required rate to take a leap in development. In 30 years, the per capita income of the panchayat increased from 51 US dollars to 185 and in the following 33 years, it increased 7 times to 1366 US dollars. It is the lowest in South Asia. This shows that the rate of economic development of Nepal is only at a slow pace.1

During the Panchayat period, the average economic growth rate of Nepal was 3.1 percent. The average economic growth rate during the post-panchayat period was 4.4 percent. Before Covid, the average economic growth rate for three consecutive fiscal years was 7.7 percent. Although there has been a revival in economic activity post-Covid, there has been some relaxation due to external pressures. The average economic growth rate of Nepal is not so low but it is less than the required rate to take a leap in development. In 30 years, the per capita income of the panchayat increased from 51 US dollars to 185 and in the following 33 years, it increased 7 times to 1366 US dollars. It is the lowest in South Asia. This shows that the rate of economic development of Nepal is only at a slow pace.2

During the Panchayat period, the average economic growth rate of Nepal was 3.1 percent. The average economic growth rate during the post-panchayat period was 4.4 percent. Before Covid, the average economic growth rate for three consecutive fiscal years was 7.7 percent. Although there has been a revival in economic activity post-Covid, there has been some relaxation due to external pressures. The average economic growth rate of Nepal is not so low but it is less than the required rate to take a leap in development. In 30 years, the per capita income of the panchayat increased from 51 US dollars to 185 and in the following 33 years, it increased 7 times to 1366 US dollars. It is the lowest in South Asia. This shows that the rate of economic development of Nepal is only at a slow pace.3

During the Panchayat period, the average economic growth rate of Nepal was 3.1 percent. The average economic growth rate during the post-panchayat period was 4.4 percent. Before Covid, the average economic growth rate for three consecutive fiscal years was 7.7 percent. Although there has been a revival in economic activity post-Covid, there has been some relaxation due to external pressures. The average economic growth rate of Nepal is not so low but it is less than the required rate to take a leap in development. In 30 years, the per capita income of the panchayat increased from 51 US dollars to 185 and in the following 33 years, it increased 7 times to 1366 US dollars. It is the lowest in South Asia. This shows that the rate of economic development of Nepal is only at a slow pace.4

During the Panchayat period, the average economic growth rate of Nepal was 3.1 percent. The average economic growth rate during the post-panchayat period was 4.4 percent. Before Covid, the average economic growth rate for three consecutive fiscal years was 7.7 percent. Although there has been a revival in economic activity post-Covid, there has been some relaxation due to external pressures. The average economic growth rate of Nepal is not so low but it is less than the required rate to take a leap in development. In 30 years, the per capita income of the panchayat increased from 51 US dollars to 185 and in the following 33 years, it increased 7 times to 1366 US dollars. It is the lowest in South Asia. This shows that the rate of economic development of Nepal is only at a slow pace.5

During the Panchayat period, the average economic growth rate of Nepal was 3.1 percent. The average economic growth rate during the post-panchayat period was 4.4 percent. Before Covid, the average economic growth rate for three consecutive fiscal years was 7.7 percent. Although there has been a revival in economic activity post-Covid, there has been some relaxation due to external pressures. The average economic growth rate of Nepal is not so low but it is less than the required rate to take a leap in development. In 30 years, the per capita income of the panchayat increased from 51 US dollars to 185 and in the following 33 years, it increased 7 times to 1366 US dollars. It is the lowest in South Asia. This shows that the rate of economic development of Nepal is only at a slow pace.6

During the Panchayat period, the average economic growth rate of Nepal was 3.1 percent. The average economic growth rate during the post-panchayat period was 4.4 percent. Before Covid, the average economic growth rate for three consecutive fiscal years was 7.7 percent. Although there has been a revival in economic activity post-Covid, there has been some relaxation due to external pressures. The average economic growth rate of Nepal is not so low but it is less than the required rate to take a leap in development. In 30 years, the per capita income of the panchayat increased from 51 US dollars to 185 and in the following 33 years, it increased 7 times to 1366 US dollars. It is the lowest in South Asia. This shows that the rate of economic development of Nepal is only at a slow pace.7

During the Panchayat period, the average economic growth rate of Nepal was 3.1 percent. The average economic growth rate during the post-panchayat period was 4.4 percent. Before Covid, the average economic growth rate for three consecutive fiscal years was 7.7 percent. Although there has been a revival in economic activity post-Covid, there has been some relaxation due to external pressures. The average economic growth rate of Nepal is not so low but it is less than the required rate to take a leap in development. In 30 years, the per capita income of the panchayat increased from 51 US dollars to 185 and in the following 33 years, it increased 7 times to 1366 US dollars. It is the lowest in South Asia. This shows that the rate of economic development of Nepal is only at a slow pace.8

During the Panchayat period, the average economic growth rate of Nepal was 3.1 percent. The average economic growth rate during the post-panchayat period was 4.4 percent. Before Covid, the average economic growth rate for three consecutive fiscal years was 7.7 percent. Although there has been a revival in economic activity post-Covid, there has been some relaxation due to external pressures. The average economic growth rate of Nepal is not so low but it is less than the required rate to take a leap in development. In 30 years, the per capita income of the panchayat increased from 51 US dollars to 185 and in the following 33 years, it increased 7 times to 1366 US dollars. It is the lowest in South Asia. This shows that the rate of economic development of Nepal is only at a slow pace.9

The average price increase in the last decade of the Panchayat period was 10.6 percent, while the average price increase in the following years was 7.5 percent, and the average price increase in the last decade was 6.3 percent. As a developing country, the price increase should be considered normal. There is no high inflation.0

The average price increase in the last decade of the Panchayat period was 10.6 percent, while the average price increase in the following years was 7.5 percent, and the average price increase in the last decade was 6.3 percent. As a developing country, the price increase should be considered normal. There is no high inflation.1