Nepal has underperformed all
other
South Asian economies and is now where Sri Lanka was in
1960 or India in 1980, according to the Asian Development
Bank.
"In terms of per capita GDP, Nepal is now where Sri Lanka
was in 1960, Pakistan was in 1970, and India and
Bhutan were
in 1980," the international lending agency has said in a
study.
In 2007, per capita GDP at the 2000 prices for Nepal was
estimated at USD 243, compared with USD 439 for Bangladesh,
USD 660 for Pakistan, USD 686 for India, USD 1,144 for Sri
Lanka, USD 1,277 for Bhutan, and USD 3,668 for
Maldives, it
said.
Weak governance, slow recovery from the civil war,
inadequate infrastructure, labour market rigidities and
inability to address market failures have held Nepal back, the
study said.
"Moreover, the global recession threatens to drastically
reduce the inflows of remittances and tourists," the ADB said
in the study "Nepal: Critical Development Constraints".
Economic performance has been lacklustre, despite some
important reforms in 1990s and 2000s and reduction in
below-the-poverty line population from 42 per cent in 1995-96
to about 31 per cent in 2003-04.
Despite poverty reduction, evidence suggests that Nepal’s
recent economic growth has had limited inclusiveness with
social, geographical and economic dimensions, the ADB said.
Besides, it said poverty may remain high and climb if the
global recession reduces remittances. An emerging concern is
the sharp rise in inequality, the bank said.
It said expanded employment opportunities may not lead to
major poverty reduction unless growth is inclusive and
inequalities in access to development opportunities and jobs
are reduced.
Overcoming inadequacies in infrastructure and
inequalities will need substantial increases in expenditures,
requiring creation of fiscal space, the bank said.
"The challenges Nepal faces in achieving its growth
potential are compounded by the slow transition from a kingdom
to a republic and the related political processes," the study
said.
Effective governance, the rule of law, control of
corruption, and accountability can climb back to their levels
prior to the civil war only after political stability comes,
it said.
Bureau Report
.
Source: http://www.zeenews.com/news539229.html
