Shubharambha Social studies-10, 2078

Versailles. Thus, the League failed in its mission to stop such aggressive activities. Extreme
nationalism and undue competition of the powerful countries prevented the League from
effective functioning. As a result, World War II broke out.

3. Rise of Dictators

There started dictatorship in many countries taking the advantage of political and economic
crisis. Adolf Hitler in Germany, Mussolini in Italy, General Francisco in Spain, Stalin in USSR,
etc. were dictators. They rose to power exploiting the general public and killing the opponents.
They cultivated the trend of might is right and began militarism and production of arms to
challenge other countries. Hitler suspended the constitution and started to rule as a dictator.
He captured Rhineland, annexed Czechoslovakia and attacked Austria. He introduced the
provision of compulsory enrollment in army for German youth. Such aggressive activities
became the cause of Second World War.

Adolf Hitler Mussolini General Francisco Stalin

d. Formation of Alliances

Japan and Italy that had fought from the side of the Allied countries in the world war first
alliance with Germany in 1936 A.D and 1937 A.D respectively. Its main objective was to
stop the spread of communism in Europe. Germany and Japan signed anti-communism pact.
Italy too joined this pact next year. It became then Rome- Berlin- Tokyo Axis. They wanted
to prevent the rising communist influence of Union of Soviet Socialist Republic(USSR)in
China. On the other hand, Romania, America, England and France had formed next alliance.
Russia too joined this group. Hence, the formation of these hostile alliances gave rise to world
war second.

e. Fear of Communism and the Policy of Appeasement

After the successful revolution of 1917 AD in Russia, the influence of communism increasingly
spread in the world. Russia made a dramatic progress in the short period of time after the
establishment of communism. Hence, other European countries too were impressed by it.
Britain was worried because the influence of communism would cause the fall of its power.
Therefore, Britain followed the policy of appeasement and ignored the activities of Germany.
France also supported in this mission. It is the policy of appeasement adopted in Europe.

Social Studies Book 10 301

f. Civil War of Spain

Spain was struck by civil war in 1936. General Francisco Franco mobilized army to suppress
the revolution. Italy and Germany supported him. It was a good opportunity for them to test
the power of their army and ammunitions. Consequently, Franco got conquest and joined the
alliance of Germany. The countries of Axis force were more encouraged to get Spain in their
group.

g. Economic Crisis

The world suffered from severe economic crisis after the First World War I. The industries
were closed due to the lack of capital and workforce and agricultural production decreased.
There were many people starving to death in war-ridden countries. Industries were collapsed
which created dissatisfaction and depression among the general public in the whole world.
The unemployed youths joined army and armed groups. Several industries were established
to produce arms and weapons which lead to outbreak World War II.

h. Immediate Cause

Dazing and Polish Corridor were handed over to Poland by Germany after the Versailles
treaty. In 1939 A.D, Hitler demanded Dazing and Polish Corridor as he wanted to have access
to the Baltic Sea. At the same time, Hitler signed a treaty called ‘Nazi- Soviet Pact’ with Russia
on 24 Aug 1939 AD. They agreed not to fight each other for the next ten years. They also
agreed to annex and divide Poland between them. As per the agreement on 1st September,
1939 Hitler invaded Poland. This immediate attack was called ‘Lightening War’. Britain and
France jointly declared war against Germany and World War II started.

Word Meaning

• Invasion : attack
• Humiliated : dishonoured
• Undue : unjustified
• Blockade : embargo
• Imperialism : Expansionism
• Mission : task
• Pact : agreement

302 Social Studies Book 10

Points to Remember:

Years in Months and Events
A.D Days

1939 1 September Germany attacked Poland and the beginning of World War II.
1940
3 September Britain and France declared war against Germany.
1941
9 April Germany attacked Denmark and Norway.
1942
1943 30 April Japan joined the Axis Powers.
1944
1945 10 May Germany attacked Belgium, the Netherlands and Luxemburg.

17 May Germany attacked France.

10 June Mussolini of Italy declared war against Britain and France.

10 July Britain took part in the war.

28 October Italy attacked Greece.

6 April Germany attacked Yugoslavia and Greece.
21 April Greece surrendered before Germany.
22 June Germany attacked Russia against the treaty signed earlier.
7 December Japan attacked the warship of the USA in Pearl Harbor.
The USA had remained neutral in regard to that war till
8 December that time.
27 February
4 May The USA declared war against the Axis Powers.

Ocean war in Java.
Coral Ocean War.

8 September Italy surrendered.

25 August Allies made Paris free from German Army. Germany bore
a great loss.

17 January Russia attacked Warsaw.
12 April US President Franklin D Roosevelt died. Harry S.
28 April Truman elected president.
30 April The dictator of Italy, Mussolini murdered.
7 May Hitler and his beloved Eva Braun committed suicide.
6 August Germany surrendered at Rhine of France.
9 August The USA dropped atom bomb called ‘Little Boy’ at
Hiroshima of Japan
The USA dropped the second atom bomb called ‘Fat
Man’ at Nagasaki of Japan.

12 September Japan surrendered. The war formally ended.

Social Studies Book 10 303

Activities

1. Very short answer questions

a. How did the USA make Japan surrender?
b. When did the Second World War breakout? Write in full date.
c. When did the USA drop the atom bombs on Hiroshima and Nagasaki?
d. What was Rome-Berlin-Tokyo Axis?
e. What is the policy of appeasement?

2. Short answer questions

a. How was the Treaty of Versailles responsible for the outbreak of the Second
World War?

b. How did economic crisis cause World War II?
c. What was the League of the Nations? Why and how did it fail to get its objective?
d. Which country was more responsible for the outbreak of the Second World War:

Japan or Germany? Give your opinions.
e. A journalist once asked the great scientist Einstein what kinds of weapons would

be used in the Third World War. He replied, “I don’t know about the Third World
War, but if a Fourth world War is fought, stone weapons will be used”. What is
your comment on this?

3. Long answer questions

a. List the causes of the Second World War and describe them briefly.
b. World War II was because of the arrogance of Hitler. How? Justify with evidences.

Britain, Russia and France were also responsible for this war. How? Present
appropriate reasons.

304 Social Studies Book 10

Lesson 1 2 Consequences of World War II
and the Role of Nepal

World War II was formally begun at 5:30 A.M on September 1, 1939 after Germany invaded
Poland. In the beginning of the war, Germany achieved a great success. It had made the Allies
weak. It had captured Czechoslovakia, Poland, Denmark, Norway, Belgium and Holland by
June 1940. Japan too had took East Asia under its control and arrived to India. On 7th Dec
1941 AD, Japan attacked on Pearl Harbor, Hawaii Island of America. Then the USA declared
war against the Axis Powers on Dec 8th 1941 AD. Invasion of Germany and Japan did not
last long. After the USA involvement in the war, the Axis Powers slowly started losing the
war. Germany surrendered on May 8, 1945 AD after the suicide of Hitler. But Japan alone
continued the war against 44 countries. Slowly, Japan also started to lose the war.

Germany was divided into East and West Germany. American bombers dropped atom
bombs on Hiroshima on and Nagasaki on 6th Aug and on 9th Aug 1945 AD. Finally, Japan
surrendered to the allies unconditionally on 12th Sep 1945 AD and the war ended. This War
was more disastrous than the First World War. It was the deadliest military conflict in history.
Some important consequences of the war are described below.

a. Unprecedented Loss of Lives and Property

This World War caused heavy loss of life and
property in the world. The actual data of casualties
is not known yet. However, it is estimated that
about 22 million soldiers were killed in the war
and 25 million civilians died because of hunger,
diseases, etc. About 34 million people became
injured and handicapped in the battle. As a
whole, Second World War was a very bad tragedy
to mankind. The Second World War destroyed
huge amount of property too. It was estimated Effect of Second World War

that 1000 billion dollars was spent in the war. America alone had spent 350 billion dollars.
The war had completely or partially destroyed buildings, roads, infrastructures, warships, and
fighter planes. The cultivable land turned into deserts. Many people in the world rendered
homeless and lived the life of refugees.

b. Division of World into Two Blocks and Beginning of the Cold War

Almost all countries of the world became weak in term of economic and military power after
the World War II. But the USA and Russia became more powerful. America made a great deal
of economic progress by exporting war materials to European countries. On the other hand,
Russia had strong military power. So its political influence increased in the world. But they

Social Studies Book 10 305

differed in term of political ideology. It resulted in the division of world into two blocks i.e.
capitalist and communist. The capitalist block was led by the USA whereas the communist
block was led by Russia. They started criticizing each other. Although they did not declare
war against each other, though there was unhealthy competition among them. The cold war
began. It was a state of political and military tension between USA and USSR.

c. Establishment of Organizations for Economic Reconstruction

The countries of West Europe and America established North Atlantic Treaty Organization
(NATO) to stop the increasing popularity of communism in the world in 1949 A.D. In
response to the formation of this organization, Russia established Warsaw Pact in 1955
A.D in the capital of Poland, Warsaw. Russia and the countries of East Europe joined this
organization. To support this organization, Russia established an organization called ‘Council
for Mutual Economic Aid (COMECON). This plan was proposed by Molotov, the foreign
minister of USSR. The main objective of this plan was to support the European countries
and to develop their trade and commerce as well as their reconstruction. On the other hand,
Harry Truman, the then president of USA declared to support war victim countries of Europe
economically so as to stop the influence of communism. This declaration is called Truman's
declaration. George Marshall, the US foreign minister made a plan to support war victim
countries. About 12.5 billion dollars was spent by US to reconstruct the European countries
destroyed from the Second World War. More than 17 countries were reconstructed in terms
of food stuff, agriculture, transportation, etc.

d. Decline of Colonialism and Growth of National Movements

World War II made the imperialistic countries of Europe became weak. They couldn’t
effectively control their colonies. National movements against colonialism started in Asia and
Africa due to which countries like India, Pakistan, Sri Lanka and Egypt got independence
from British Empire. Vietnam, Cambodia and Laos got freedom from French empire. People
of many countries became aware against the undemocratic system and fought for democracy.

e. Establishment of the UNO

The head of the states of the leading nations tried their best
to stop the armed fighting while the World War Second was
going on. The allied countries met in London on June 12, 1941
and made a declaration appealing for the end of the war and
enhancement of international co-operation and peace. Right
after 3 months, on 14 August, 1941 the then US President
Franklin D Roosevelt and the British Prime Minister,
Winston Churchill met on a warship in 1941 and prepared a UNO

declaration called ‘Atlantic Charter’.On 26 Aug 1945, the representatives of 50 nations met in
San Francisco of the USA and signed the charter of the United Nations Organization. On 24
October, 1945 A.D, 51 countries established the UNO with its headquarters in New York.
The UNO was established with the aim to prevent the world from next destructive war and

306 Social Studies Book 10

maintain international peace and security through mutual understanding, co-operation and
friendly relations among nations.

Roles of Nepalese in the World War II

Though Nepal did not directly involve in the World War II, many Nepalese were sent
to support Britain in the war. Then Rana prime minister of Nepal, Juddha Shumsher sent
8,000 Nepali soldiers under the command of General Bahadur Shumsher to help England.
Moreover, heallowed the British Indian Government to carryout recruitment of one
thousand new soldiers into British Indian Army during this war. It is estimated that about
250,000 Nepalese soldiers fought in this war. They demonstrated very high level of bravery
and loyalty. They introduced Nepal as the land of brave Gorkhas around the whole globe.
Having been impressed with the progress and development of other countries, the soldiers
used their knowledge and skill gained from the World War to establish democracy in Nepal.

Nepalese soldiers had fought from the side of Britain against Germany and Japan. They were
deployed in Cyprus, Greece, Syria, Lebanon, Palestine, Iraq, Singapore, Malayaand Burma. It
is estimated that 7,544 Nepalese youths were killed and 23,655 were injured in the war. Hence,
Nepal bore a great loss in the war. Being pleased with Nepal’s support, Juddha Shumsher was
given the rank of Honorary General of the British Army. Moreover,Britain decided to provide
a lump sum of Rs. 33,300,000 and made commitment to provide Rs1, 000,000 every year.
Besides, many Nepalese were awarded various gallantry medals like Victoria Cross (VC) and
Military Cross (MC) etc. Some of the persons who received these medals are Gaje Ghale,
Ganju Lama, Tul Bahadur Pun, Nara Bahadur Thapa Magar, Agam Singh Rai, Sher Bahadur
Thapa Magar, Thaman Gurung, Bhanubhakta Gurung and Laxman Gurung.

Differences between World War I and World War II

Base World war I (wwI) World War II (WWII )
Time period
Warring groups It was fought primarily in Europe It was fought between the year 1939
from the year 1914 to year 1919 to 1945 for 6 years.
Immediate cause and lasted 5 years.

The allied powers composed of The axis powers composed of
france, Britain, Russia, Japan, Germany, Italy and Japan The Allies
Itally in the later years the us. powers composed of US, Britain,
The central powers composed France, the soviet Union and China.
of Germany, Austria-Hungary,
Bulgaria and Turkey.

It was taken place by the The outcome of WWI and the
assassination of Archduke Franz versailies Treaty caused bitter feeling
Ferdinand of Austria by Serbian among those who were asked to pay
nationalists and war began in for their crimes ,especially Germany.
between Austria–Hungray and Adolf Hitler took advantage of this
Serbia. and led to war and began the war
between Poland and Germany.
307
Social Studies Book 10

Cost The total destruction of the war The total destruction of the war was
Technology was low. Its cost was about us$ high. Its cost was about us $ 1 trillion.
Consequences 186 billion.

Area It was fought in the trenches It was fought using the modern
and used machine guns and artillery and modern machines
poisonous gas. utilizing more airplane, ships, tanks
and submarines.

It ended with the treaty of It ended when Japan surrendered
varsailles in 1919 where after Germany. It led to rise of two
Germany took responsibility new world super powers, the us and
of war. It led to emergence of USSR. Establishment of the UNO
some new countries and league as an international organization to
of Nations was established as monitor world peace.
an International organization to
monitor world peace.

WWI was Europe centric. WWII was taken place in Asia,
Africa, Europe and both American
countries.

Similarities of world war I and world war II.

While there were certainly many differences between world war I and world war II, there
were also many notable similarities worth examining. Some of the striking similarities are
mentioned below:
1. The initiator of both the wars was Germany
2. The motives of the aggressor nations were largely based on imperialistic nationalism.

Trying to conquer new territories and control more resources out of a sense of
nationalistic entitlement brought major powers into direct conflict with each other.
3. In terms of the waying of the war itself, both conflicts are marked by their exceptionally
high casualty rates.
4. In both cases, different militaries took advantage of and developed new technologies in
aggression and sense of competition.
5. Versailles Treaty was common in both the wars. It was end of WWI but a seed for
WWII.
6. By the end of the both wars, it gave birth to the international organizations. For example,
after WWI, League of Nations was founded and after WWII, UNO was founded.

308 Social Studies Book 10

Points to Remember:

"" World War-II was more disastrous conflict in the history.
"" The most destructive Weapon of Mass Destruction (WMD): atom bombs were

used.
"" As a result of the war, Germany divided into East and West, and USA and then

USSR emerged as super powers.
"" Establishment of the UNO is one of the most significant results of the Second

World War.
"" 7,544 Nepalese youths were killed and 23,655 were injured in the war.
"" Juddha Shumsher sent 8,000 Nepali soldiers under the command of General

Bahadur Shumsher to help England.

Word Meaning

• Disastrous : accident
• Resolution : decision
• Decline : turn down
• Unprecedented : exceptional
• Warship : battleship, gunboat
• Enhancement : improvement

Social Studies Book 10 309

Activities

1. Very short answer questions

a. When was the UNO established?
b. What is ‘Cold War’?
c. What is the full form of NATO?
d. What is the Atlantic Charter?
e. Who was Molotov?
f. Why do you think Hitler committed suicide?
g. What was Pearl Harbour Incident?

2. Short answer questions

a. What are the objectives of the establishment of the UNO?
b. Why did the movements for national independence spread in Asia and Africa

after the war?
c. How did the World War II come to an end?
d. What are the Marshall Plan and Molotov Plan? How are they different from each

other?
e. Dialogue and understanding are always more beneficial than war. Justify this

statement in reference to the World War II.
f. What is non-alignment movement? What message did it give to the then world?

3. Long answer questions

a. List out the consequences of the Second World War and describe in brief any
four of them.

b. Describe the role of Nepal in the Second World War and also mention its effects
to Nepal.

c. If the Versailles Treaty had been unprejudiced and impartial, 'Second World
War wouldn't have taken place'. Give your opinion on this statement in 5 points.
Analyze the world political and economic effects developed after the Second
World War in 4 points.

4. Project Work

Take a political map of the world and show the nations involved in the World War II
and the places of important incidents during the war. Then display it in your class.

310 Social Studies Book 10

13 Identification, Conservation and
Promotion of Historical Places
Lesson and Monuments

Introduction

A historic site or heritage site is an official location where pieces of political, military,
cultural, or social history have been preserved due to their cultural heritage value. Historic
sites are usually protected by law, and many have been recognized with the official national
historic site status. A historic site may be any building, landscape, site or structure that is
of local, regional, or national significance. Similarly, a monument is a type of structure that
was explicitly created to commemorate a person or event, or which has become important
to a social group as a part of their remembrance of historic times or cultural heritage, or as
an example of historic architecture. The term 'monument' is often applied to buildings or
structures that are considered examples of important architectural and/or cultural heritage.

On 12 Baishakh, 2072 a 7.8 magnitude earthquake devastated Nepal. Many of the historic
monuments, buildings and temples within and outside Kathmandu Valley were completely
destroyed or damaged. Currently the reconstruction work on monuments that were either
completely destroyed or partially is in progress. The Digital Archeology Foundation is now
trying to complete a project to digitally preserve the remaining monuments. However, one
can notice the reluctance on both the public and private side in renovation, maintenance and
reconstruction of these monuments.

Importance

The historical places and monuments are related to our history, culture and social life. Old
buildings teach us about the history that happened before we were born and promotes the
respect for those who lived in different times and different societies. Architectural monuments
cultivate pride of our past and heritage making us unique in the world. Secondly, economy
is an important merit of keeping the old. Architectural monuments are great attractors of
tourists. Tourists can provide locals with jobs and extra income. Historical places and objects
provide us knowledge about our history and tradition. We learn about the virtue of patriotism
from the history of Nepal.

Given below is a report prepared by Afjal Mikrani a tenth grader student after his study tour
to Gorkha Durbar, a historical place of Nepal.

Social Studies Book 10 311

Gorkha Durbar

A Historical and Religious Place of Nepal

a. Introduction

The Social Studies teacher of Buddha Jyoti
Academy organized a study tour of the tenth
grader students to one of the historical and
religious places of Nepal, GorkhaDurbar. The
tour was organized as per the objective of the
curriculum of Social Studies to identify and
conserve the historical and religious heritages of
Nepal. The group of thirty students along with
the teacher visited Gorkha on Bhadra 6, 2073. Gorkha Durbar

This heritage site is in Gorkha district in Province 4. It is the birth place of the Great king
Prithvi Narayan Shah, the founder of modern Nepal.

b. Objectives of the Visit

The main objectives of the visit are given below.

"" To know about the location of the palace.
"" To collect information about the archeological, historical and religious significance

of Gorkha Durbar.
"" To get information about present condition of the palace.
"" To identify the historical buildings and monuments in the Durbar Area and describe

their present condition.
"" To make recommendation about the ways to protect and promote Gorkha Durbar Area.

c. Methods of Study

Both primary and secondary methods were applied to study about Gorkha Durbar. To achieve
the objectives, four different methods were adopted i.e. observation, questionnaire, interview
and literature review.

d. Findings

"" Gorkha Durbar lies in Gorkha district in Province 4. It is situated on the top of
the hill. The view of green forest with blooming rhododendron around the palace
makes it look so attractive.

"" The founder of modern Nepal, great king Prithvi Narayan Shah was born in this
palace and he initiated the unification campaign of Nepal from here.

"" Dravya Shah commenced the construction of this palace. Later, Ram Shah
reconstructed it using unique art and architecture. Finally, Prithvi Narayan Shah
renovated bringing Muslim artists from Banaras.

312 Social Studies Book 10

"" It is constructed in middle age pyagoda style. The doors and windows are designed
in typical Nepali art and architecture. It can be a suitable place to study about the
middle age art and culture of Nepal.

"" A large number of people visit this place to worship Gorakhnath Baba
and Goddess Kalika every day. Moreover, a big feast is held on the days of
Mahaasthami of both Dashains.

"" The archeological department of the Government of Nepal has been given
responsibility of the conservation of this palace.

"" The Gorkha Earthquake of Baishakh 12, 2072 had destroyed the roof this palace.
Now, it has been repaired in its original structure.

"" There is a historical chautara in the palace area. It is said that Ram Shah used to give
justice from here.

"" Rani Pokhari, Ganesh Temple, Temple of Mahadev, Krishna Temple, a historical
museum, old stone water taps on the bottom of the hill in the Gorkha Duarbar Area
reveal the history and culture of Nepal.

"" About 40m north-east of the palace lies the footsteps believed to be of Sita imprinted
on a large stone.

It is our prime duty to protect and promote this heritage. We must do these works for this purpose.

a. Make proper advertisement about the historical, cultural and religious importance
of the palace so that this place can be developed as one of the popular tourist
destinations of Nepal.

b. Aware local people and enhance their participation for the sanitation of the Durbar Area.
c. Establish hotels and lodges with good and comfortable service near the palace.
d. Reconstruct and renovate the heritages without distorting their original structure.

e. Conclusion

Gorkha Durbar is one of the most important historical and religious places of Nepal. It has
tremendous potential to attract large number of domestic and international tourists. The
climatic and environmental condition is suitable for settlement. Hence, the visitors feel
relaxed while being here having the view of natural beauty of the place. The visit to this place
and the study about can be the best way to cultivate the feeling of patriotism among people.

Word Meaning

• Restoration : reinstatement
• Demolition : fall, destruction
• Prominently : highly, outstandingly
• Tactics : strategy
• Reluctance : unwillingness

Social Studies Book 10 313

Points to Remember:

"" A monument is a type of structure that was explicitly created to commemorate a
person or event.

"" Architectural monuments cultivates pride of our past and heritage making us
unique in the world.

"" On April 25th 2015 a 7.8 magnitude earthquake devastated Nepal.

Activities

1. Very short answer questions

a. What is a monument?
b. What do you mean by a historic site?
c. What can we learn from the historical places? Write in a sentence.
d. Many historically important places are in need of conservation. Give your opinion

in a sentence in this regard.
e. Why are architectural monuments important? Write in a sentence.
f. Give your opinion about the delay in the reconstruction of historical monuments

that were destroyed in the earthquake 2072.

2. Short answer questions

a. We can promote the virtue of patriotism through the conservation of historical
monuments. Justify this statement in points.

b. How are historical places/monuments important for us?
c. Find out a historically important place in your district and write its importance.
d. Discuss the economic importance of historically important places.

3. Long answer questions

a. Visit a historical place of Nepal and write a report under the following sub-
headings.
� Place you visited � Objectives of your visit
� Methods of study � Findings
� Suggestions and Recommendations

b. Find out any three historical places/monuments found in your province and
write in short about each of them.

c. If the Versailles Treaty had been unprejudiced and impartial, 'Second World
War wouldn't have taken place'. Give your opinion on this statement in 5 points.
Analyze the world political and economic effects developed after the Second
World War in 4 points.

4. Community Work

a. Take a political map of the world and show the nations involved in the World War II
and the places of important incidents during the war. Then display it in your class.

314 Social Studies Book 10

UNIT Our Economic
Activities
8

In this unit, you will learn the following subjects: 315
• Development Plans and Current Development Plan in Nepal
• Tourism Industry and Its Prospects in Nepal
• Advantages and Challenges of Tourism Industry in Nepal
• Hydropower as Important Source of Energy
• Foreign Employment and its Prospects in Nepal
• Financial Education
• Financial Instruments
• Cooperatives in Nepal
• Insurance in Nepal
• Revenue and Taxation in Nepal
• Consumers Rights

Social Studies Book 10

Lesson 1 Development Plans and Current
Development Plan in Nepal

Economic Planning

A plan is a pre-feature of a programme. Similarly, economic planning is a programme devised
to gain the target economic goal. It is an economic activity conceived, initiated, regulated and
controlled by the state. An economic plan has certain goal, objective, strategies, vision and
mission. Economic planning is normally made periodically in 5 years cycles.

A nation decides and prepares a periodical programme in advance for what to be done in
next few years. The decisions are made as per the country’s need and the available means
and resources. In the context of developing countries, it is a conscious effort on the part
of government to follow a definite pattern of economic development in order to promote
economic progress and social change.

The Union of Soviet Socialist Republic (USSR) is the first country to introduce economic
planning. It first introduced in 1928 AD. These days, almost every developing country has its
economic plan. Such countries should focus on education, health, transport, communication,
energy, human resource, industry, agriculture, etc. for the country’s overall development.
Hence, these are the diverse areas that the countries need to focus in economic planning.
Economic planning is, therefore, important for the full and effective utilization of available
national resources and for the overall economic progress and social change of the country.

Characteristics of Planning

An economic planning has the following characteristics.
a. Public welfare oriented
b. Periodical
c. Priority to the optimum utilization of the available resources
d. Goal, vision, mission, strategy and objective

Advantages of Economic Planning

The country can have the following advantages of preparing scientific economic planning and
their effective implementation.

a. It has clear goal and objectives.
b. It helps in the maximum utilization of available means and resources.
c. It helps to minimize the cost of development.
d. It is useful to gain the target economic goal in the stipulated time.
e. It is useful to identify the problems and solve them on the priority basis.
f. It promotes social, economic and environmental justice.
g. It is helpful to avoid regional disparity.

316 Social Studies Book 10

Economic Planning in Nepal

Nepal has a planning history of 60 years. It commenced in Nepal in 2013 B.S. So far 14
Economic Plans have been executed which included Five Year Plans – 9 and Three Year Plans
– 5. Currently, National Planning Commission (NPC) has prepared the approach paper of
the 15th plan. The 15th plan was endorsed on Falgun 19, 2076 B.S.

15th plan : (2076 / 77 - 2080 / 81)

Long term vision: 2100 (for 25
years)
"Prosperous Nepal, Happy
Nepali"

National Goal:

To prepare base for upgrading
the country of high income by
transforming into socialism-
oriented welfare state including
prosperous economy, social
justice and improved life.

National Objectives

"" To prepare foundation for the prosperity.
"" To make citizen attain, improved and dignified life.
"" To protect self-respect, independence and national interest.

National Strategies

"" To grow rapid, sustainable and employment-oriented economy.
"" To ensure accessible and qualitative health service and education.
"" To develop internal and international inter connectivity and sustainable urban /

settlement.
"" To increase production and productivity.
"" To provide complete, sustainable and productive social security and protection.
"" To form just society including poverty alleviation and economic social equality.
"" To develop conservation, mobilization and promotion of natural resources.
"" To promote national unity, provincial balance and strengthen public service.

Social Studies Book 10 317

Major Economic Social and Physical Targets

Status Target
(2074/075)
S.N. Indicator (2080 / (2100 /
081) 2101)

1. Economic growth rate 6.8% 10.3% 10.5%
2. GNP per Capita US$1,047 US $ 1,595 US$12,100

3. Contribution of Agriculture, 27.6% 23% 9%
Forest and Mineral to Economy

4. Population below poverty line 18.7% 11% 0%
5. Life expectancy at birth 69.7 yrs 72 yrs 80 yrs
6. Unemployment rate
11.4 % 6% 3%

7. Enrolment in Secondary Level 43.9% 65% 95%
(9–12) 15,000 km 33,000 km
200 km 2,200 km
8. Roadways 6,979 km

9. Railways 42 km

10. Fast Track 0 km 76 km 200 km

11. Family with access to electricity 90.7% 99% 100%

12. Internet Users 55.4% 80% 100%

13. Population with basic drinking 88% 99% 100%
water 5,000 MW 40,000 MW

14. Hydroelectricity Generation 1,020 MW

15. Gender Development Index 0.925 0.963 1

16. HDI 0.574 0.624 0.760

17. Maternal Mortality Rate 239 99 20
(per 100,000 live birth)

Source: 15th Plan Approach Paper (2076/77 - 2080/081)

318 Social Studies Book 10

Challenges and Opportunities

Challenges 

a. Rapid economic growth rate and fast poverty alleviation through justifiable
distribution.

b. Considerable increase in aspect of human development and moving overall
economy in the path of prosperity and sustainable socio-economic development.

c. Establish Nepal as equitable and public welfare state based on social justice by
decreasing possible inequality which may arise in income distribution along with
economic growth.

d. To create employment opportunities by expanding economic sectors and make
maximum utilization of demographic dividend and to create adequate employment
opportunities at home.

e. To transform the subsistence agriculture to competitive and commercial and link it
to industrial development of the country.

f. To make socio-economic development works climate friendly, reduce energy crisis
and minimize possible risks regarding calamities.

g. To construct and develop physical infrastructure, interlink rural and urban
development as a source of economic growth.

h. To work towards integrating the development programme, make the work of
projection effective, and provide people easy access to public service delivery, and
reform public financial management and other governance works.

i. To make administration accountable, clear and effective by building capacity for
development management from state to local level.

j. Complete the work of restructuring the state rapidly; strengthen implementation of
central plans and policies by elect representatives for state and local level leadership.

Opportunities

a. With the declaration of constitution of Nepal, political problems are getting resolved
and the country is entering into the phase of socio-economic development.

b. There are plenty of possibilities of achieving prosperity through wise use of natural
resources like fertile land, water resources, forest, mine, biodiversity and geographic
beauty.

c. The rate of population engaged in economic activities is increasing and healthy and
educated manpower is being developed who can play the role of catalyst in country's
socio-economic development.

d. Demographic dividend, which doesn’t last long as proved by world experience, will
be available for the next three-four decade.

Social Studies Book 10 319

e. There is greater opportunity to utilize the unutilized and less utilized physical and
other infrastructure.

f. There is a greater scope of reaping maximum reward of investment in social and
economic sector till date.

g. About half of the economically active population is associated to cooperative and
community system.

h. By utilizing the government's cooperative and private sector friendly policy, they
are ready to play complementary roles for national prosperity.

i. Investment from NRN is continuously being attracted.
j. Due to the rapid growth of middle class people in neighboring country, there is

greater opportunity for tourism, foreign investment, export and expansion of many
service sectors.
k. Skill, capital and entrepreneurship received from foreign employment have
provided additional opportunity to mobilize skills, technology and capital from
external world.

Word Meaning

• Conceiving : visualizing, considering
• Initiating : starting, beginning
• comprehensive : broad, all inclusive
• Strategy : plan of action, approach, game plan
• Allocated : separated
• Blockade : obstruction
• accountable : responsible
• envisages : visualize
• Enterprises : projects, ventures
• projection : estimation
• dividend : surplus money

320 Social Studies Book 10

Points to Remember:

"" The new Constitution of the Federal Democratic Republic of Nepal 2015
has clearly enshrined the goals of perpetual peace, prosperity and equitable
development, and good governance, with fundamental rights of the citizens on
basic necessities like food, education, health, etc.

"" The Planning Commission in Nepal was established in 2013 BS (1956), and the
First Five Year Plan launched in the same year.

"" Economic Planning is conceiving, initiating, regulating and controlling economic
activities according to set priorities with a view to achieving well-defined objectives
within a given time.

"" So far 13 plans completed, and the current plan, Fourteenth Plan (2016/17-
2018/19) is being underway.

"" The purpose of the current 14th Three-Year Plan, is building socialism-oriented
prosperous nation based on norms and values of democracy.

"" The main objective of the plan is to build an independent and prosperous state
while ensuring basic social service and maintaining food, health, energy and job
security to build a welfare state.

"" Of the numerous challenges, one is addressing structural problems in the economy,
such as inequitable access to productive means and resources, and inability to
ensure good governance.

"" The Planning Commission in Nepal was established in 2013 BS (1956), and the
First Five Year Plan launched in the same year.

"" Nepal has committed to achieve inclusive, and sustainable growth, while protecting
the environment and building resilience against the risk of natural disasters and
climate change.

"" Nepal needs to maintain 7–8% annual growth rate to achieve the next goal of
graduating from the LDC category and become a middle-income country.

"" Nepal needs to focus on—investment on infrastructure, maintaining a healthy
public finance, improving public service delivery, to meet the financing needs
partnering with the private sector and non-government organizations.

"" The 14th plan aims to transform Nepal into a developing country from the least
developed country by 2022.

Social Studies Book 10 321

Activities

1. Very short answer questions

a. What is economic planning?
b. When was the Nepal Planning Commission established?
c. How many economic planning had been implemented so far?
d. Which economic plan is underway at present?
e. What’s the goal of the 15th Economic Plan?

2. Short answer questions

a. What is the importance of economic planning?
b. What are the characteristics of the current economic plan?
c. What are the priorities of the current economic plan?
d. Economic plan is usually made of five years, but a number of such plans in Nepal

have had been made of only three years. Why?
e. What is economic planning? What are the important points to be considered

while making such a plan?
f. In the history of Nepal’s Economic Plan of more than 60 years, fourteen economic

plans had been implemented, but Nepal is still lagging behind in economic
development. Give at least 4 reasons.
g. What is the total estimate cost of the 15th Economic Plan and mention its sources?

3. Long answer question

a. The current 14th Economic Plan aims to transform Nepal into a developing
country from the least developed country by 2022. Keeping in mind the past
experiences and ongoing political situation, how optimistic are you and what are
your suggestions?

b. Write down the vision, goal, objective and strategies of the 15th economic plan?
c. Discuss the challenges and priorities of the current economic plan.
d. The economic plans of Nepal fail to gain the target economic goal. What are the

reasons behind it? Also suggest some ways to make them successful.

4. Community Work

Think of any five problems of your community and mention the strategy, opportunities
and challenges to overcome them.

322 Social Studies Book 10

Lesson 2 Tourism Industry and Its
Prospects in Nepal

Tourists

A person organizes a journey from the place of residence for a short period of time and
travels in a new land for varieties of purposes: adventure, entertainment, recreation, holiday,
business, etc. is called a tourist. There are basically two types of tourists. They are domestic
tourists and international tourists. The people who travel from one place to another within
their own country for various purposes are called domestic tourists. Similarly, the people who
travel to another country are called international tourists.

Meaning /Concept of Tourist

Tourism is an organized journey from the TouristsTrekking in Nepal
place of settlement to destination with the
objective of learning, recreation or any
other objectives. Moreover, tourism is a
hospitality industry. It is an employment
creating sector. Hence tourism industry
is related to the sector that produces and
supplies all kinds of services and goods
required to the tourists. It is considered as
export-oriented industries as the goods
produced and services rendered are
basically meant for foreign tourists.

People by nature do not want to stay in a place forever. They want to get recreation visiting
different places. The people are fond of visiting different places so that they can gain knowledge
about people, geography and other features of the place. Tourism has become one of the biggest
and fastest growing industries in the world. It includes all business activities or services connected
to lodging, flooding, guiding, transporting, translating or interpreting, communicating,
entertaining, etc. Hotels, lodges, restaurants, travel and trekking agencies, guides, interpreters,
banks, airlines, means of transportations, etc. come into play in this industry. 1173072 tourists
visited Nepal in 2018.

Reasons of Tourism

The main purposes of tourism or travelling are given below.
"" Relaxation and recreation.

Social Studies Book 10 323

"" Learning and education through observation
"" Adventure like trekking, mountaineering, rafting, bungee jump, etc.
"" Trade and business
"" Religious purpose
"" To attend seminars, conferences and meetings etc.
"" Government or official work
"" Climate change

Types of Tourism

Tourism is the temporary, short-term movement of people to destination outside the places
where they normally live and work and their activities during the stay at each destination. It
includes movements for all purposes. Tourism also means the business of providing services
such as transport, places to stay, or entertainment for people who are on holiday.
There are different types of tourism: Conference Tourism, Festival Tourism, Rural Tourism,
Sports Tourism, Adventure Tourism, Holiday Tourism, Business Tourism, Religious and
Cultural Tourism, eco-tourism, etc. Some important types of tourism are described below.

a. Eco-tourism

Tourism industry is one of the fastest growing industries in the world which often causes
adverse impact upon the natural environment. Eco-tourism aims to minimize negative
impacts on the environment and on the local culture. It is also called ‘Responsible Tourism’
because teaches both the hosts and the tourists to be sensible in the use of available resources
and to the environment.

b. Rural tourism

Any form of tourism that showcases the
rural life, art, culture and heritage at rural
locations, thereby benefiting the local
community economically and socially as
well as enabling interaction between the
tourists and the locals for a more enriching
tourism experience can be termed as rural
tourism. Hence, rural tourism normally
occurs in rural areas or settlements, Rural Nepal

providing employment and income to local population, and offering individualized holiday
products to consumers. Rural tourism encourages tourists to actively participate with
rural lifestyle or community. Nepal where major chunk of area is occupied by villages has
tremendous potential in rural tourism.Rural tourism can play positive role in people's life, by
proving job and promoting socio- economic development of disadvantaged areas.

324 Social Studies Book 10

c. Mountain Tourism

Mountainous regions have always
attracted visitors - from ancient pilgrims,
explorers and adventurers to modern-
day tourists. Mountain tourism includes
mountaineering, paragliding, walking,
hiking, bird watching, rafting, mountain
biking, skiing, snowboarding, sledging,
icefall climbing, trekking, ice skating,
etc. Tourists are attracted to mountain
destinations for many reasons, including Tourist at Everest

the climate, clean air, unique landscapes and wildlife, scenic beauty, local culture, history and
heritage, and the opportunity to experience snow and participate in snow-based or nature-
related activities and sports.

d. Adventure Tourism

Adventure Tourism may be defined as
a leisure activity that takes place in an
unusual, exotic, remote, or wilderness
destination where the traveler should
expect the unexpected. It tends to be
associated with high levels of involvement
and activity by the participants, most of
it outdoors.  Adventure tourism is rapidly
growing in popularity. Nepal is considered Bungee Jumping

one of Asia's most amazing adventure tourism destinations. Its mountains and rivers offer
almost unlimited opportunities for adventure activities.

Tourism Industry in Nepal

Tourism is the largest industry in Nepal and it is the largest source of foreign income and
revenue. Nepal offers varieties of tourist attraction centres. Nepal possesses eight of the ten
highest mountains in the world. Nepal is one of the most desired destination for mountaineers,
rock climbers and people seeking adventure. The Hindu and Buddhist heritage of Nepal and
its cool weather are also strong attractions.

Tourist industry employs a large number of people. Besides it also provides revenues generated
by the tourism market. The tourism industry generates substantial economic benefits to both
host countries and tourists’ home countries. One of the primary goals of promoting tourism
is economic improvement. Tourists contribute to sales, profits, jobs, tax revenues, and
income in an area. The most direct effects occur within the primary tourism sectors --lodging,
restaurants, transportation, amusements, and retail trade.

Social Studies Book 10 325

Tourism in the Current Economic Plan

The current economic
plan has given greater
emphasis to promote
tourism industry in
Nepal. It has envisioned
promoting Nepal as one
of the world's best tourist
destination in the world.
By developing tourism
sector the current
plan aims to increase
the number of foreign
visitors who come to
Nepal and earn foreign
currency from it. The
plan has three major
aims. Through private-
Source: Gorkhapatra
public partnership, the plan aims to promote tourism, open new tourist destinations, and
create employment through rural tourism. Similarly, the plan has also taken the strategy to
extent its hands with neighbouring and international countries to promote Nepal's tourism
sector through publicity. The present economic plan has equal emphasis on sustainable
development of tourism industry by encouraging internal or domestic tourism.

Prospects of Tourism in Nepal

a. The Great Himalayan Trail

The Himalayan region from Mt.
Kanchanjunga to Mt. Saipal is
called the Great Himalayan Trail.
In this region lies Kanchanjunga
Conservation Area, Makalu-
Barun National Reserves and
Sagarmatha National Reserve
of the Eastern Nepal. Langtang,
Gosain Kunda and Gaurishankar
Himal regions of the mid Nepal
have been included under this Scene from Nagarkot ViewTour

trail. Similarly, the touristic
places of Manang, Mustang, Mugu, Dolpa fall in this trail. From the area above 5000 meter,

326 Social Studies Book 10

one can see Himalayan wildlife and vegetation. Nepal Tourism Board has proposed this area
as important tourist destination. Due to the lack of proper publicity, the number of tourists
visiting this area is lower than the expected figure.

b. Biodiversity and Natural Beauty

Nepal is a beautiful country from the perspective of natural beauty and biodiversity. Such
diversities exist due to the varied landforms and climatic conditions. For instance, different
species of vegetation and wildlife are found in terai, hilly and mountain regions of Nepal.
Tourists have been fascinated by the panoramic view of Himalayan ranges, beautiful hilly
areas, topographical varieties, landscapes, caves, lakes, caves and rivers. Many tourists from
across the world visit Nepal to see these things. Moreover, Nepal might be the place for
research, study and observation that can attract the tourists to visit our country. If the facilities
in these places can be increased, the number of Tourist visitors will increase.

c. Historical and Religious Places

Nepal is rich in its ancient art and architecture which is an Krishna Mandhir
important aspect of our civilization. Nepal is known as the
land of temples and historical sites. Lumbini, Janakpur,
Muktinath, Swargadwari, Ridi, Ugratara, Manakamana,
Pashupatinath, Krishna Mandir, Changunarayan, etc. are
the main historical pilgrimage sites of Nepal. Similarly,
ancient palaces of Kathmandu valley are considered
important for tourism. The architecture and woodcraft
have both historical and cultural significance.

d. Cultural Diversity

Cultural Diversity is an important feature of Nepal. More than 125 indigenous people live in
Nepal with their unique culture, traditions, customs, language, costumes, lifestyle, beliefs and
values. Many tourists flock to Nepal in order to see the cultural diversity existing in Nepal.

e. Climatic Diversity

Like cultural diversity, Nepal has climatic variation or diversity which can be the best place to
enjoy for tourists. Nepal’s climate varies with its topography. It ranges from tropical to arctic
depending upon the altitude. The Terai region, which lies in the tropical southern part of the
country, for instance, has a hot, humid climate. The mid-land regions are pleasant almost all
year around, although winter morning and nights are cool. The northern mountain region,
around an altitude above 3,353 meters has an alpine climate with a considerably lower
temperature and thin air in winter as can be expected.

Social Studies Book 10 327

f. Adventure Tourism

Nepal can introduce adventure tourism by
initiating various kinds of adventurous activities.
The fast flowing rivers in the east have great
prospect for rafting. Besides, Nepal can introduce
other adventurous activities like mountaineering,
bungee jumping, paragliding, rafting, elephant
polo, yak blood shocking etc. Nepal can also focus
on growth and development of the snow sports like Paragliding

Alpine skiing, snowboarding, ski jumping, speed skating,ice hockey, etc.

g. Home Stay

Home stay trekking is a new
model of tourism. It helps to
introduce Nepal and Nepalese
culture in the World. The
program is generated by the
Government of Nepal in the
Nepal Tourism Year 2011.
It provides an opportunity
to each client to become an
ambassador of his/her home
country for publicity of Nepal
and its tourism industries.
Sirubari (Syangja District) and
Ghalegaon (Lamjung District)
were the first to implement
the concept of home stays in
Nepal.

Home stay is an excellent
activity to share, see and feel
the lifestyle, local culture,
countryside lifestyle, tradition,
arts and entertainment, hidden
trails and valleys and above all
the sharing, caring and loving
the true humanity. During home stay the tourist shares the same roof and locally available and
traditional foods with the typical Nepali family. Home stay also supports the eco-tourism,
raise the income of locals and respect to local culture and tradition.

328 Social Studies Book 10

Word Meaning

• Adventure : risky, challenging activities
• Destination : goal, place one wants to visit
• Eco-tourism : environment friendly tourism that doesn't harm the
• Rendered
• Interpreters environment
• Adverse : provided
: translators
: negative

Activities

1. Very short answer questions

a. Who is a tourist?
b. What is tourism industry?
c. Who are domestic tourists?
d. Who are international tourists?
e. What is eco-tourism?
f. What is adventure tourism?
g. What is rural tourism?
h. Write the name of any two historical and two religious places of Nepal that are

visited by the large number of tourists every year.
i. What is rafting?
j. Name the place of Nepal where tourists can enjoy paragliding.

2. Short answer questions

a. What is the difference between a domestic tourist and an international tourist?
b. Why do people travel? Discuss.
c. Discuss the possibilities of developing adventure tourism in Nepal?
d. How do we get benefitted from adventure tourism developed in Nepal? Discuss.
e. Why do the foreigners like to visit the rural parts of our country? Explain.
f. There is a great possibility of developing religious tourism in Nepal. Discuss.
g. What should be done to increase the number of tourists in Nepal?
h. Discuss the strategies included in our current economic plan for the development

of tourism.
i. Present the following information in graphic form (pie chart, line graph,

histogram, etc.)

Social Studies Book 10 329

NO. of tourists based on their interests Country wise NO. of tourists
Entertainment : 50.1 % India : 14 %
Trekking and mountaineering : 12.3 % China : 12 %
Business : 3.1 % Sri Lanka : 8 %
Official work : 4.1 % America : 8 %
Pilgrimage : 12.6 % Britain : 6 %
Seminars and Conferences : 1.7 % France : 3 %
Others : 16.2 % Japan : 3 %
Germany : 3 %
Australia : 3 %
Others : 41 %

(Economic Survey : 2072/73)

j. How can cultural diversity of Nepal help in promoting tourism?

k. How does climatic diversity provide opportunity to develop tourism?

3. Long answer question

a. What are the prospects of developing tourism in Nepal? Explain.

b. Write the name of any tow tourism centers of your province. Why do the tourists
visit these places? What can be the role of local people to increase the number of
tourists there? Discuss.

c. Prepare a model newspaper article including the possibilities of adventure
tourism in Nepal.

4. Community work

a. Which type of tourism has greater prospect of development among Eco-tourism,
Rural tourism, Mountain tourism, and Adventure tourism in your community?
Write a short report on the prospect and challenges of developing tourism in
your community based on your study.

b. The economic plans of Nepal fail to gain the target economic goal. What are the
reasons behind it? Also suggest some ways to make them successful.

330 Social Studies Book 10

3 Advantages and Challenges of
Tourism Industry in Nepal
Lesson

Advantages of Tourism Industry in Nepal

Tourism industry plays important role in the social and economic sectors in Nepal. It is the
main source of earning foreign currency. It has employed a large number of people. Our
national economy is largely based on tourism industry. The importance could be described
as follows.

a. Source of earning foreign currency

Tourism is one of the main sources of foreign currencies. The foreign tourists pay direct
and indirect taxes spend money for the other services they take, like fooding, lodging,
transportation, etc.

b. Employment opportunities

Tourism industry creates employment opportunities for the people. A large number of tour
and trekking guides, porters, cooks, travel agents, hotel agents and staff, air and road transport
staff, handicraft manufacturers, salespersons and so on are required to run this industry.

c. Development of infrastructures

Tourism helps to develop physical infrastructures. Tourist destinations and mid-way places
need infrastructures development such as airports, roads, tracks, hotels, restaurants, health
posts, water supply system, electricity, communication, etc. Remote areas get developed.

d. Development of trade and commerce

Tourism increases trade, commerce and business. Tourists need food, water, beverage, dairy
products, meat, fruits, poultry and other agricultural products, etc.

e. Development of cottage industries

It supports cottage and small industries as the tourists like to buy handicrafts and locally
manufactured goods as souvenirs and gifts.

f. Increase on national income

Tourism helps in increasing revenues from the taxes paid by the tourists for the goods and
services they use. Besides, they are also charged certain amount of fees for mountaineering,
entering parks and reserves, using phones and internet, etc. which goes to the government.
Tourist spending is the largest earner of foreign currency for Nepal with the tourism sector
contributing 2.2 percent to the GDP in the fiscal year 2017/2018.

Social Studies Book 10 331

g. Promotion of art and culture

Tourism helps promote arts and cultures. Tourists like to see our traditional arts and
crafts, cultures, traditions, historical monuments and heritage sites. It ultimately helps and
encourages in the protection, preservation and promotion of our arts and cultures.

h. Publicity of the country

Nepal has become famous in the world for her natural beauty through tourism. International
relations will be extended with many countries when tourists from various country come to
Nepal. Tourism also helps to increase the demand of Nepalese product in the world market.

Challenges of tourism industries in Nepal

Although Nepal has unlimited possibilities for the development of tourism industry, It has
not been developed well. Some major obstacles behind the promotion of this sector are given
below.

(a) Lack of adequate transport and communication facilities:

Tourists mostly travel by airways. But, the airlines in Nepal provide facilities to limited countries
of the world. Besides, domestic airway transportation in Nepalese is limited to few cities
and places of Nepal. Moreover, Nepal is geographically unsuitable for road transportation.
Much of its remote parts are still not linked by road net-works. They lack transportation and
communication facilities. Existing roads are also not very good. This poses a serious challenge
to the development and growth of tourism industry in Nepal.

(b) Lack of conservation of cultural and religious places:

Although Nepal is rich in cultural heritage; they lack proper care, repair, maintenance,
protection, conservation and promotion. Many of such important places have been
encroached, polluted and neglected.

(c) Lack of entertainment facilities:

Means of entertainment services and facilities are major sources for attracting tourists.
Proper means of entertainment haven’t been developed yet. There are no varieties of means
of entertainment for the families and children suitable for all age group. Existing means of
entertainment are also very limited and of traditional type. Due to this, the tourists normally
don’t stay long.

(d) Lack of organized tourist centres:

Nepal lacks proper and organized tourist centres. It is more so in rural and remote areas.
Tourists face problems in getting accurate information, help and other essential services. This
discourages tourists from coming to Nepal.

332 Social Studies Book 10

(e) Lack of enough publicity:

There has not been enough publicity about the various destinations and services available in
Nepal. There is very limited information disseminated about Nepal in the world. As a result,
very few people in the world know about Nepal and its beautiful places.

(f) Lack of tourist-oriented goods and services:

Nepal doesn’t produce much tourist-oriented goods. As a result, Nepal has to import almost
every goods tourists need. This takes our money out of the country. Furthermore, the tourists
have to pay higher prices for such imported goods which discourage them to buy such goods.

(g) Poor security condition:

Tourists want to visit places where their safety and security is guaranteed. We lack mechanism
to provide such security in remote places. Many a times, tourists have been the victims of rape,
theft, loot and cheating. Such a situation is not conducive for the development of tourism
industry.

(h) Lack of accommodation:

Tourists expect good and comfortable living conditions. Our country lacks such facilities in
remote areas. There aren’t enough hotels and lodges. Besides, some of the accommodations
which we have aren’t up to the expectation of tourists.

(i) Lack of proper sanitation:

There is not proper management of garbage and wastes. Our roads and neighbourhood are
often filled with piles of garbage and waste materials. It pollutes the environment and causes
serious diseases. Tourists as well as locals may become victims of such diseases. This ultimately
leads to the decrease of tourists.

(j) Lack of skilled human resources, capital and technology:

Tourism is a sensitive and demanding sector. It requires skilled and competent manpower
supported by modern equipment, machinery and technology. Unfortunately, our country
severely lacks these things.

Measures to Solve the Problems of Tourism

There is no doubt that Nepal is one of the most popular tourist destinations in the world.
Every year, the number of foreign tourists has been increasing. Tourism has become a major
industry for earning foreign currency in Nepal. However, there are many problems and
challenges in this sector. The following measures can be taken to solve the problems.

a. The infrastructures of major tourist destinations should be development to make
the service accessible for the tourists who admire to visit those places.

Social Studies Book 10 333

b. Conservation of old and ancient cultural, historical and religious heritages by timely
renovating in their original style to attract the large number of tourists.

c. Guarantee the security and safety of the tourists' life and their property.
d. Launch pro-environment program in those areas which have been polluted.
e. Authorized publicity of the tourism destinations and their reliable information.
f. Bandhs, strikes, disruption of any supply and transportation, internal conflicts

should be immediately stopped to encourage the tourists.
g. Increase the sources of entertainment and their facilities in all tourism destinations.
h. Promote locally made or produced goods using local materials.
i. Internet services, banking facilities, marketing and other online services should be

made available in every parts of the country.
j. Promote air and road connectivity.

Word Meaning

• Trail : paths, tracks for travelling
• Significance : importance
• Panoramic : an unobstructed and wide view of an extensive area in all
• Souvenirs
directions
: something you buy or keep to help you remember a holiday

or special event

Points to Remember:

"" Tourism industry is highly advantageous for the overall economic development
of the country.

"" Despite being rich in various things Nepal is unable to utilize them due to lack of
infrastructures.

"" Our country lacks sufficient skilled manpower for the development of tourism
industry in the country.

"" The means of entertainment for tourists in Nepal are not sufficient and properly
managed.

"" There is lack of good tourists services and facilities, including their safety.
"" Strike, bandhs, political unrest, etc. must be discouraged to develop tourism

industry.

334 Social Studies Book 10

Activities

1. Very short answer questions

a. How does tourism industry help to develop our cottage industries? Write in a
sentence.

b. Why do more tourists visit eastern and central parts of Nepal rather than far-
western part? Give your reason in a sentence.

c. If you were a member of the national planning commission, what would you do
for the development of tourism industry equally in all parts of the country? Write
your plan in a sentence.

d. The places of cultural heritages of Nepal have been demolished by the earthquake
of 2072 B.S. Write the effect of earthquake to the tourism industry in Nepal.

2. Short answer questions

a. Make a list of the roles of community and the government for the development
of tourism in Nepal.

b. The income from tourism industry must be spent for the development of local
area. Give your opinion to support this statement.

c. Tourism industry does not have advantages only, it has some disadvantages too.
Justify this statement.

d. How can publicity help promote tourism? Answer in a sentence.
e. Nepal should produce skilled human resources to promote tourism industry.

Discuss.
f. Prepare a model visiting/tour plan for four days in Kathmandu valley.

3. Long answer questions

a. Explain the advantages of tourism industry.
b. What are the challenges for the development of tourism industry in Nepal?

Explain.
c. How can we solve the problems related to tourism industry in Nepal? Discuss.

d. What do you see in the given picture? Which rivers of
Nepal are suitable for this activity? How can we benefitted
from this activity?

4. Community work

Write a letter to the editor of any daily newspaper stating some important places of
tourist attraction in your locality. Also suggest some varieties of things and activities
that tourist can involve in during their visit.

Social Studies Book 10 335

Lesson 4 Hydropower as Important
Source of Energy

Nature is a store house of energy. Nature provides various
sources of energy like hydro power, natural gas, coal, petroleum
products,solar energy, wind power, bio-fuel, firewood, nuclear
energy, etc. Human life is greatly dependent on energy. We use
energy for various purposes like cooking, transportation,
technologies, industries, etc. There are two sources of energy
used in Nepal: traditional and commercial energy. Traditional
sources include firewood, decayed agricultural products,etc.
and commercial sources include petroleum products, coal,
electricity, etc.

Among the natural resources, water is considered the most Wind turbine
important resource of Nepal. Though Nepal is a land locked
country,wehavesurfacewaterandundergroundwaterresources.
Most of the rivers in Nepal originate in the north and flow towards the south. As these rivers
are perennial, the water in them flows throughout the year. The mountainous topography and
the continuous flowing rivers provide better prospect of developing hydropower in Nepal.
Proper use of hydroelectricity can reduce our dependence on petroleum imports. Moreover,
it can help reduce our economic loss. Hydroelectricity can play positive role in developing
industries in the country. It can also reduce deforestation and increase national income
through its export. It can also help develop transportation and communication. Besides,
it can help in modernizing our agricultural system and environmental protection. Hence,
development of hydropower has several benefits.

Most of our rivers flow with forceful current.
These rivers have a great potentiality to generate
hydroelectricity. Nepal has the capacity to generate
83,000 MW of hydroelectricity, i.e. 2.26 % percent of
the world's total electricity production. Considering
the economic and technical factors, Nepal can generate
about 42,000 MW. The Koshi, Gandaki, Karnali and
their tributaries are considered important sources Upper Tamakoshi

of hydropower. If we can fully utilize potential water
resources, Nepal can become one of the richest countries in Asia.

The prospect and capacity of generating hydro power in given below.

336 Social Studies Book 10

SN Rivers Estimated Capacity Technical and Economic capacity
1 Koshi 23,350 MW 10,860 MW
2 Gandaki 20, 650 MW 5,270 MW
3 Karnali & Mahakali 36, 000 MW 27,360 MW
4 Other rivers 40, 000 MW 880
83, 000 MW 44,370 MW
Total

The above chart shows that Karnali and Mahakali has the largest prospect of producing
electricity after Kosi and Gandaki river. Likewise, other small rivers nearly occupy half of
the total capacity. Nepal can get greater benefit by developing hydro power along with other
multipurpose programs like irrigation for agriculture, fishery, transport and tourism, aquatic
animal farming, water sports and games, etc.

Situation at the present

Despite huge potentiality of hydropower generation, Nepal is facing power crisis. Many of
our industries are suffering from electricity crisis. Moreover, there is shortage of electricity
for public consumption; as a result many Nepalese are bound to live in darkness due to load
shading problem. In the economic year 2072/73, Nepal was able to produce 829 MW of
electricity from its existing power sources, which equals to only 1% of its total capacity. Of
the total production, 689 MW has been connected to national transmission line while the
remaining 140 MW is generated and distributed at the local level. The present economic plan
aims to promote small hydro projects and private sectors as well.

Nepal has a very short history of hydropower production. Electricity was first generated in
1968 BS at Farping Hydropower Project, which produced only 500 KW. At present all parts
of Nepal has been connected by electricity transmission but only 56% of the total population
has access to electricity. Similarly, electricity occupies only 2.56 % of the country's total
energy consumption. By sector, Nepal has been consuming the highest amount of electricity
in household purposes. Besides, industrial, commercial and non-commercial sectors have
also been using electricity in large amount.

Nepal has been receiving national and international aids and supports to develop hydropower
projects. Japan, World Bank, Asian Development Bank, etc. have been helping Nepal in this
sector. Many multinational companies have also lately shown keen interest in developing
hydropower projects in Nepal.

Despite having unlimited prospect in developing hydropower there are many problems and
obstacles such as lack of capital resources, lack of road transportation and communication,
political instability, interference by the local people, etc. Nepal can self-sustain by increasing
its capacity for generating electricity. This can have positive impact in the country's overall
development.

Problems and challenges of developing hydropower

a. Lack of political will and vision
b. Unscientific planning and programming
c. Political instability

Social Studies Book 10 337

d. Poor governance
e. Lack of skilled manpower and technology
f. Lack of capital
g. Lack of concrete government policy
h. Deeply rooted corruption, and inefficient management
i. Too dependent in foreign aid and grant
j. Lack of adequate mobilization of private sectors
k. Interference from the local community
l. Lack of involvement of local community

Word Meaning

• Potentiality : prospect
• perennial : continuously flowing
• multipurpose : serving more than one benefits
• bound : compelled

Points to Remember:

"" Energy can be produced from natural resources.
"" There are two sources of energy in Nepal: traditional and commercial sources.
"" There are different forms of energy like electricity, natural gas, solar, bio-fuel, petroleum,

nuclear power, etc.
"" Nepal has high potentiality to generate hydroelectricity.
"" The topography and the perennial rivers provide better prospect of developing hydropower

in Nepal.
"" Nepal has the capacity to generate 83,000 MW of hydroelectricity, which equals to 2.26 %

percent of the world's total electricity production.
"" Considering the economic and technical factors, Nepal can generate about 42,000 MW.
"" The Koshi, Gandaki, Karnali and their tributaries are considered important sources of

hydropower.
"" By utilizing potential water resources, Nepal can become one of the richest countries in

Asia.
"" Nepal can benefit by introducing multipurpose programs along with developing hydro

power.
"" In the economic year 2072/73, Nepal was able to produce 829 MW of electricity from its

existing power sources, which equals to only 1% of its total capacity.
"" Electricity was first generated in 1968 BS at Farping Hydropower Project, which produced

only 500 KW.
"" Hardly 56% of our total population has access to use electricity.

338 Social Studies Book 10

Activities

1. Very short answer questions

a. What are different forms of energy?
b. What are the two sources of energy used in Nepal?
c. What is the potentiality of rivers of Nepal to generate electricity?
d. When was electricity first generated in Nepal?
e. Give one suggestion to overcome the problem of energy crisis in Nepal.

2. Short answer questions

a. Why do we need energy? Make a list of them.
b. Make a list of the sources of energy we can produce in Nepal? Which one is the

cheapest source of energy?
c. Though Nepal is rich in water resources, we have not been able to generate

sufficient electricity. What do you think are the causes behind it?
d. Name some hydro electricity plants in Nepal.
e. If you were prime minister of the country, what would you plan to end the

problem of power cut off in the country? Present your plan.
f. Present the prospect and capacity of generating hydro power in Nepal in a pie

chart.
g. Discuss the present situation of hydropower development in Nepal.
h. Discuss the problems and challenges of developing hydropower in Nepal.

3. Long answer questions

a. How does electricity help in promoting industrialization of a country? What
other economic benefits can we get from electricity?

b. Write a letter to the president of Non Residential Nepalese association urging
him to invest in the energy development sectors.

4. Community work

a. Visit a hydro power project located in your area and prepare a short report based
on the following sub-headings.
- location
- name of the project
- capacity in MW
- date of establishment
- number of households benefitted

Social Studies Book 10 339

Lesson 5 Foreign Employment and its
Prospects in Nepal

Foreign employment has become an importance source of earning foreign currency in
Nepal. Everyday thousands of youths leave the country in search of better employment and
opportunities. The demand for Nepalese workers is also increasing in foreign countries.
Besides, new destinations for foreign employment are being explored and opened. This
indicates Nepal has greater prospects of foreign employment in the coming days.
The government earns a huge amount of remittance from foreign employment. Foreign
remittance has been the major contributor in our national economy. Nepal can greatly benefit
from foreign employment if the remittance is properly utilized.

Foreign employment means employment which a worker gets abroad. In other words,
working abroad for earning money is called foreign employment. People of Nepal go to
different countries of the world for jobs and earning. Foreign employment uplifts the living
standard of the people and has become an important source of earning foreign currency.
From the remittance the country can establish industries and create job opportunities inside
the country. People who go overseas to work can also learn different skills and technologies
which can be beneficial for the development of our own country. Foreign employment reduces
the unemployment problem of a country. It also helps to develop international relations
with other countries. Recently, the trend of Nepalese woman going to foreign countries for
employment is increasing day by day. This can have both positive and negative impacts.

Reasons for Going for Forign Employment

There are several reasons why people go to foreign countries to work. Some of them are:
a. Lack of job opportunities in own country.
b. Political instability and insecurity in the country.

340 Social Studies Book 10

c. No proper opportunities exist for skilled man powers.
d. Faulty education system.
e. Temptation of better pay and facilities.

Advantages of Foreign Employment

The foreign employment has played an important role in our economy.

a. It has been a major source of national income, remittance and foreign currency.
b. It has helped in up-lifting the overall living standard of our people.
c. It has lessened the burden of unemployment in the country.
d. It provides opportunities to learn skills, gain knowledge, and build intercultural

relationships.
e. It has helped to publicize our culture, customs and language in other countries.
f. It has helped to promote international relations as new consulates and embassies are

being opened due to increasing needs of our foreign employed people.
g. It has helped to reduce poverty.
h. It has also increases country's capital deposits, and provided capital for external

trade.

Disadvantages of Foreign Employment

a. It drives away high skilled and capable work force.
b. There may be shortage of human resources inside the country.
c. The country may lack human resources for development works.
d. Lack of competent human resources may slower the development works in the

country.
e. Chances of carrying communicable diseases.
f. Deterioration in cultural values and norms.
g. Social harmony may be disturbed due to the increase in social problems.
h. Difficulty to find decent and respectable job according to one's skill and expertise.
i. Chances of being deceived by the manpower agents, or the prospective employment

agency at home and overseas.
j. Lack of guarantee of getting decent and lucrative jobs abroad.
k. Risk of one's life and lack of safety and security abroad, especially at the workplace.

Social Studies Book 10 341

Preparations Needed Before Going for Foreign Employment

Foreign employment has both prospect and risk. From the past experiences, foreign
employment has proved to be both boon and bane. As most of the job seekers who had
travelled abroad for employment and better opportunities have to suffer due to various
reasons. One of the main factors is lack of proper knowledge and information about the legal
procedures involved in it. Planning in advance and getting the reliable information about the
type of work, the skill required, destination country, authorized employment agencies, etc.
are important for every prospective candidate going for foreign employment.
We can get accurate, authentic and reliable information regarding the foreign employment
from the Ministry of Labour and Employment, and other agencies working under it such as
Department of Foreign Employment, Foreign Employment Promotion Board, etc.
A prospective candidate for foreign employment must be mentally ready. She should be
physically fit and healthy. A person with skill gets better advantages and privileges in the
work place. Similarly, a person willing to go abroad for foreign employment must get health
certificate from the government authorized medical institutions. They are also required to
submit insurance certificate.
A person willing to go for foreign employment needs a passport, which can be made if only
one has the citizenship certificate. One can get the passport after submitting the application at
the concerned District Administration Office. People who want to go for foreign employment
can contact an authorized and licensed manpower agency with their documents including the
certificate of their education or qualification, work skill and experiences, etc. An authorized
manpower agency will provide you will detail information regarding the type of work, cost,
and other privileges. Hence, it is mandatory to receive pre-orientation training from the
specialized agencies. Such trainings have several benefits such as, legal information about
foreign employment, documents requirements, and departure procedures. Before going
for foreign employment, one should always take the permission letter from the Foreign
Employment Department.
Nepal Government has allowed its citizens to work in 110 countries of the world. The required
age for foreign employment is for a male 18 yrs and for a female 24 yrs.
A person who faces any kind of problems while working abroad can contact the Embassy of
the concerned country. 46 Nepalese people are in foreign employment in 26 years.

Challenges of Foreign Employment in Nepal

Though the prospect of foreign employment is rapidly expanding, it is not free from problems.
If the problems are not addressed on time, they may have negative impact in the long period.
Continuous outflow of our young, trained and skilled human resources may adversely affect
our own economic development.
As there is lack of adequate employment opportunities in Nepal, many of our youths seek for
job and other opportunities in foreign countries. The trend of going abroad for employment
has rapidly grown after the Popular Movement of 2062/63 BS. The trend for going abroad for

342 Social Studies Book 10

job as well as higher studies has been growing every day. Most of the low skilled people go to
India, Malaysia, and Gulf countries. Similarly, the rate of youths going to the USA, Canada,
European countries, Australia, Japan, Korea, and other
developed countries is growing. Brain drain is another problem
of our country. Most of the high skilled Nepali migrants who go
to developed countries are aged between 20 to 40 years. It
means high rate of people seeking foreign employment are the
most productive work force.

The out-migration is causing domestic labour supply shortage
in many rural areas. Hence, the major factor contributing to
large-scale out-migration from Nepal is the higher growth of
labor force and limited employment opportunities in Nepal.

The rate of remittance inflow in Nepal is also high. Remittance
from the foreign countries have played positive role in uplifting
the economic condition of the people living in all parts of the
country: mountain, hill and terai.

Nepalese labour and skills are wasted for the development
of other countries. Our own country lags behind. Unless we
develop our own country, this trend will not stop.

Moreover, the foreign employment hasn’t yet been properly
managed and regulated. There are many innocent people made
victims of illegal practices, cheating and frauds. There are many
manpower agencies illegally operating across the country.
They are taking undue advantages of the foreign employment
seekers. Hence, this sector has not yet become fully safe,
secured, credible and well managed.

Majority of the foreign employment seekers are illiterate,
unskilled and untrained. They have been exploited by both the
employers and manpower agencies. They are either lowly paid or forced to work at risky jobs
under difficult circumstances. Sometimes, they are jailed or sent back for not having proper
documents or training and skill.

There are many instances when these foreign employees have returned home empty handed
being maimed and disabled. Everyday some dead bodies are brought in. Moreover, many
people who go for foreign employment need to spend a lot of money. There is no transparency
in the proceeding.

Solutions of Foreign Employment Problems

a. Effective implemented of Foreign Employment Acts.

b. The manpower agencies should be properly registered, monitored and regulated.

c. Government should make labour agreement with the countries employing Nepalese

Social Studies Book 10 343

work forces.
d. Workers should be given appropriate trainings on legal, technical, professional,

social and cultural aspects.
e. Government should develop effective mechanism to check fake brokers, agents and

manpower agencies.
f. Consulates and embassies should be established in the countries where many of our

people work.

Source: Naya Patrika

Word Meaning

• Adequate : sufficient
• Brain drain : skilled and knowledgeable people going to other countries for
work
• Trend : practice
• Remittance : money sent to home country by the foreign employees
• Uplifting : raise
• Fake : not real
• Agent : assistant, broker
• Regulate : control a process so that it operates properly
• Out-migration : people going out of the country
• Outflow : going out of the country

344 Social Studies Book 10

Activities

1. Very short answer questions

a. What is foreign employment?
b. What are manpower agencies?
c. Nametheagenciesfromwherewecangetinformationaboutforeignemployment?
d. What is the required age for male and female for foreign employment?
e. From where do we get our pass port?
f. Which document is essential for making pass port?
g. From where should a prospective candidate certify his health fitness certificate?
h. Write one benefit of foreign employment?
i. Write one disadvantage of foreign employment?
j. What is a remittance?
k. Where should a person contact if he has a problem during foreign employment?
l. What is a brain drain?

2. Short answer questions

a. What are the advantages of foreign employment?

b. What are the disadvantages of foreign employment?

c. Why preparation and pre planning necessary for foreign employment?

d. How can a person benefit from pre-orientation training?

e. Many foreign workers do not get proper job and respectable salary due to lack of
training, skill and experiences. What should be done to improve this situation?

f. Recently, the trend of Nepalese woman going to foreign countries for employment
is increasing. What could be the reasons for this trend?

g. Although the foreign employment yields immediate benefits, it may not be useful
in the long run as there is shortage of manpower and our skill and sweat wasted in
another country. What steps should we take to stop this trend?

h. The remittance sent by the foreign workers has not been properly utilized. What
should be done to properly use this money? Give your plan.

i. Is foreign employment: good or bad? Give at least 4 points to support your
arguments.

j. What are the requirements to be fulfilled by them before their departure? Make a
model notice to be broadcast through radio.

Social Studies Book 10 345

k. The remittance from foreign employment is mostly spent on unproductive
sectors. How? Justify with examples. Mention the ways to use the money in
productive sectors.

3. Long answer questions

a. Prepare a short speech on "Remittance is the backbone of our economy."
b. Write an essay on the importance of foreign employment in Nepal.
c. Through foreign employment, remittance can be earned. It increases income and

uplifts living standard of people. It gives opportunities to get skill and knowledge.
Prepare a dialogue including these aspects of foreign employment.
d. What are the challenges and problems of the foreign employment? Also suggest
some measures for their solution.
e. What should be done to make foreign employment more safe, secure, dignified
and well managed?

4. Community work

a. Meet some of the people who have returned working in foreign countries and
find out what types of works they did there. Prepare a report indicating the types
of jobs, terms and conditions of work and their experiences.

346 Social Studies Book 10

6 Financial Education

Lesson

Financial education is the education and
understanding of various financial areas. It
focuses on the ability to manage personal
finance matters in an efficient manner, and it
includes the knowledge of making appropriate
decisions about personal finance such as
investing, insurance, real estate, paying for
college, budgeting, retirement and tax
planning.

Financial education or literacy also involves the Nepal Rastra Bank
proficiency of financial principles and concepts
such as financial planning, compound interest,
managing debt, profitable savings techniques and the time value of money. The lack of financial
education may lead to making poor financial choices that can have negative consequences on
the person's life.

The main steps to achieving financial literacy include learning the skills to create a budget, the
ability to track spending, learning the techniques to pay off debt and effectively planning for
retirement. These steps can also include counselling from a financial expert. Education about
the topic involves understanding how money works, creating and achieving financial goals,
and managing internal and external financial challenges. Hence, financial education helps
individuals become self-sufficient so that they can achieve financial stability.

Personal finance defines all financial decisions and activities of an individual or household,
including budgeting, insurance, mortgage planning, savings and retirement planning.

Financial System

The origin of the modern Nepali Financial System can be traced to the establishing of Nepal
Bank Ltd as the first commercial bank of the country. It was established under Nepal Bank
Act, 1994 B.S.

Nepal Rastra Bank, the central bank, is the national financial institution that exercises control
over key aspects of the financial system and carries out such activities as issuing currency,
managing international reserves, and providing credit to deposit takers. Nepal Rastra Bank
started to issue notes in 2016 BS.

Social Studies Book 10 347

The Nepali financial system consists of banking and non banking sector. Banking sector
consists of Nepal Rastra Bank (NRB) as the Central Bank and the Commercial Banks.
The non banking sector includes, financial institutions licensed by NRB like Development
Banks, Finance Companies, Micro finance Development Banks, NGOs undertaking banking
activities and those under different Acts like Insurance Companies, Citizens Investment Trust,
Postal Savings Offices, Employees Provident Fund, Nepal Stock Exchange and Commodity
Markets.
We need a healthy and stable financial service sector for sustainable economic growth. We
also need to enhance the institutional capacities of our financial institutions to that of global
standard so as to benefit from it.

Types of Bank In Nepal

Nepal has many nationalized as well as private banking ventures. The highest authority on
the pyramid is The Central Bank of Nepal. This is the central bank of Nepal that decides and
makes various guidelines for the banking sector of the country.

Central Bank

Nepal Rastra bank is the central bank of Nepal which was established in 2013 BS. Central
bank holds the top most position in the banking sector and slowly energies the rights of
issuing notes, managing cash and credit system, controlling foreign exchange and formulating
banking policy for the development of banking sector in the interest and welfare of the public.

Commercial Bank

Commercial bank refers to that bank which accepts deposits of the public and organization,
grants loan to them against securities, providing financial and technical assistance to the
traders and commercial parties.

Development Bank

The bank which is established for the development of various sectors like agriculture, industrial
etc. by providing financial, technical and administrative and other necessary assistance is
known as Development Bank.

Types of Bank Accounts

A bank account is an account at a banking institution that allows money to be deposited and
withdrawn by the account holder. First the person has to open the account by depositing
certain amount of money which is allowed to withdraw on demand.

Current Account

A current account, also called a demand account, is a basic checking account. Consumers
deposit money which they can withdraw as desired on demand. These accounts often allow the

348 Social Studies Book 10

account holder to withdraw funds using bank cards, checks or over-the-counter withdrawal
slips. In some cases, banks charge monthly fees for current accounts, but they may waive the
fee if the account holder meets other requirements such as setting up direct deposit or making
a certain number of monthly transfers to a savings account.

Savings Accounts

Any person having a savings account is allowed to deposit money and withdraw to the extent
of balance freely from his/her account. Individual banks however put a restriction on number
of withdrawals and amount for each transaction in saving account.

Savings accounts offer the account holder interest on his deposits. Savings accounts are
allowed to be opened only by individuals singly or jointly. Other than individuals, any
organization or body of persons (e.g. society etc.) can open a savings account if they are a
charitable organization and are exempt from income tax on their income.

Fixed Deposit Accounts

Like a savings account, a time deposit account is an investment facility for consumers. Time
deposit accounts tend to offer a higher rate of return than traditional savings accounts, but the
money must stay in the account for a set period of time. Time deposit account is also known
by alternative names such as term deposits, fixed-term accounts and savings bonds.

E-banking in Nepal

Advances in information technology and telecommunications have certainly introduced new
delivery channels for Nepalese commercial banks' products and services. These new delivery
channels include automated teller machines (ATM's), mobile banking, Internet banking, etc.

Online banking, also known as internet banking, e-banking or virtual banking, is an electronic
payment system that enables customers of a bank or other financial institution to conduct a
range of financial transactions through the financial institution's website. Internet-Banking was
first introduced by Kumari Bank Limited in 2002. The future of e-Banking is very optimistic.
Nepal can enter into the age of Cashless Transaction via non-cash elements; like credit cards,
internet-banking, etc.

There are some advantages on using e-banking both for banks and customers:

"" Permanent access to the bank 349
"" Lower transaction costs / general cost reductions
"" Access anywhere
"" Less time consuming
"" Very safe and secure method
"" Helps to transfer the money immediately and accurately
"" Security of account

Social Studies Book 10

Automated Teller Machine (ATM)

ATM is a computerized device which provides the financial services to
the customers through its ATM counters. A bank installs ATM in different
public spaces like department stores, hospitals, universities, hotels,
airports, railway stations, petrol/ gas stations, etc. The account holder
uses the debit card to draw money through ATM from his bank balance.
The ATM card contains a unique card number and security information.
The security refers to the Personal Identification Number (PIN) of the
customer. In ATMs one can withdraw cash and make balance inquiry.

Credit Card ATM machine

A credit card is a card issued by a financial company giving the holder an option to borrow
funds, usually at point of sale. Credit cards charge interest and are primarily used for short-
term financing. Interest usually begins one month after a purchase is made, and borrowing
limits are pre-set according to the individual's credit rating.

Today, many stores allow for payment of goods and services through credit cards. Because of
their widespread acceptance, credit cards are one of the most popular forms of payment for
consumer goods and services in the world.

Credit cards provide opportunity to the cardholder to make online purchases and eliminate
the need to carry cash. These cards usually require the applicant to deposit certain amount in
advance. The card holder can only use up to the amount he has deposited in the bank.

Mobile or SMS Banking Service

Mobile or SMS Banking is a service that allows you to do banking transactions on your mobile
phone without making a call, using the SMS facility. The Mobile Banking technologies allow
access to one’s bank account and conduct a host of banking transactions and inquiries through
the Mobile Banking service. One can check balance, stop a cheque payment, or even pay bills
for the goods and services they want to buy. Mobile Banking provides account information
and real-time transaction capabilities from the mobile phones at a true "anywhere, anytime,
anyhow" convenience. A number of city centered banks are using this facility within their
own limitations and conditions.

Laxmi Bank Limited was the first bank to introduce SMS-Banking (or Mobile Banking) in
Nepal in the year 2004. SMS banking requires a cell phone instead of land-line telephone.
Banking industry of Nepal has been taking rapid strides in the advancement of technology and
aggressive infusion of information technology in the functioning of the banks E-banking is a
new concept in Nepal. It can help people of remote areas where transportation and financial
institutions have not yet reached. Nepal has greater prospect of utilizing E-banking for which
an infrastructure and human capacity building are required.

350 Social Studies Book 10