Precaution and Protection E-Banking
E-Banking users must consider these things while transacting electronically
"" Never give your cards, account no. to anybody
"" Update your antivirus program regularly
"" Don’t use public computer for e-transactions
"" Don’t give your information in the websites which you don’t know
"" Before visiting any sites, check the certificate; and don’t continue unless you feel it
is from trusted site
"" Use passwords which are difficult to guess
"" Regularly check your account status; if you feel something is wrong, then let this
know to your bank
Benefits of Saving
Money is important to us in our life. First and foremost, saving money can help us to get
money when we need money urgently. For example, we need money for daily expenditure,
clear old debts, invest in productive areas, medical treatment, marriages, buy house and land,
for education, and to live happily. Hence, saving money brings many benefits to us.
"" We can save money in a bank or financial institution licensed by the central bank
(NRB) like Development Banks, Finance Companies, Micro finance Development
Banks, etc.
"" We can also save our money in semi-formal financial institutions like
cooperatives, local mothers' group (Aamasamuha), Forest Groups (Ban Samuha),
Consumers Groups, etc.
"" Informal sources like local merchants, friends and relatives, investing in lands and
houses, etc. can also be important sources of saving money.
"" Money can be saved at home in a piggy bank, made from wood, clay, tin, etc. which
can be later deposited in authorized banks.
The habit of saving money has several benefits:
"" It helps us save our money
"" A good means of saving money.
"" Can be used for emergencies
"" It helps an individual or family become financially secure.
"" Become financially independent
"" Get out of debt
Social Studies Book 10 351
Word Meaning
• purchased : bought
• automated : self operating
• emerging : growing
Points to Remember:
"" Financial education is the education and understanding of various financial areas.
"" The lack of financial literacy may lead to making poor financial choices that can
have negative consequences on the financial well-being of an individual.
"" Nepal Rastra Bank, the central bank, is the national financial institution that
exercises control over key aspects of the financial system in a country.
"" The Nepali financial system consists of banking and non banking sector.
"" We need a healthy and stable financial service sector for sustainable economic
growth.
"" Nepal Rastra bank is the central bank of Nepal which was established in 2013 BS.
"" A bank account is an account at a banking institution that allows money to be
deposited and withdrawn by the account holder.
"" E-banking is an electronic payment system that enables customers of a bank or
other financial institution to conduct a range of financial transactions.
"" There are some advantages on using e-banking both for banks and customers.
"" ATM is a computerized device which provides the financial services to the
customers through its ATM counters.
"" Credit cards provide opportunity to the cardholder to make online purchases.
"" Mobile or SMS Banking is a service that allows you to do banking transactions on
your mobile phone.
"" We must be careful and follow precaution while using E-Banking
"" Savings has several benefits.
352 Social Studies Book 10
Activities
1. Very short answer questions
a. What is financial education?
b. Which is the central bank of Nepal?
c. What is E-banking?
d. What is Automated Teller Machine (ATM) Cards?
e. What is a Credit card?
f. What is Mobile or SMS Banking Service?
2. Short answer questions
a. Describe the financial system of Nepal.
b. Write down the functions of the central bank of Nepal?
c. What does Nepali financial system consists of?
d. Distinguish between Central Bank and Commercial Bank.
e. Explain the types of Bank Accounts.
f. Distinguish between Current Account and Savings Account.
g. Write a short history of E-banking in Nepal.
h. What are the advantages of e-banking?
i. What precaution should E-Banking customer take?
j. State the benefits of saving. What are sources of saving?
3. Long answer questions
a. The lack of financial education may lead to making poor financial choices that can
have negative consequences on the person's life. Explain.
b. We need a healthy and stable financial service sector for sustainable economic
growth. Why?
c. Explain the types of bank in Nepal.
d. How can SMS Banking Service benefit country like Nepal?
e. The habit of saving money has several benefits. Explain.
4. Community Work
Visit at least two families in your neighbourhood whose family members work abroad
and find out how they receive the money or remittance sent by their family members
working abroad.
Social Studies Book 10 353
7 Financial Instruments
Lesson
There are several instruments used in financial system. Some of them are given below.
(1) Currency / Clean Notes
We need paper notes to exchange goods or services. Notes are also called paper money because
they are printed on paper. Most bank notes are made from cotton paper with a weight of 80 to
90 grams per square meter. The cotton is sometimes mixed with linen, or other textile fibres
so that it becomes resilient, resists wear and tear (the average life of a banknote is two years).
There are two types of money: paper money and metallic coins. In most cases, each country
in the world has its own paper money, but in many cases several countries use the same
money (such as the Euro or the U.S. dollar). A country's government designs, manufactures
and manages that country's paper money. In Nepal, the printing of paper money is typically
regulated by Nepal Rastra Bank. Paper money is often updated with new versions for the sake
of security issues so that it becomes more difficult for counterfeiters to create illegal copies.
Nepal Rastra Bank has brought Clean Notes Policy in order to bring clean notes in circulation.
We should not write or scribble on bank notes, tear, fold, use sticky tape or staples, etc. It will
spoil the currency notes and reduce their age. So it is our duty to protect and save the notes.
(2) Bank loans/credits
We need financial resources to operate any business or work. A loan is a sum of money that
we borrow with the expectation of paying it back either all at once or over time, usually with
interest. The exact amount of the loan and interest rate varies depending on your income,
debt, credit history, and a few other factors.
We can receive loan from a friend, bank or financial institution in exchange for future
repayment of the principal, plus interest. The principal is the amount you borrowed, and the
interest is the amount charged for receiving the loan. Since lenders are taking a risk that you
may not repay the loan, they have to offset that risk by charging a fee - known as interest.
Loans typically are secured or unsecured. A secured loan involves pledging an asset (such as a
car, land or house) as collateral for the loan. If the borrower defaults, or doesn't pay back the
loan, the lender takes possession of the asset. If we take loan and do not repay it to the owner,
we often lose our social status. So we should be careful while taking loan.
(3) Rmittance
The sending of money from one place to another is called remittance. Money can be sent or
transferred from banking and financial institutions. Remittances play important role in the
national economy. It has transformed the lives of a large number of rural people and helped in
reducing poverty. Remittance has approximately 23 percent share in GDP and has surpassed
the incomes received from tourism and national exports.
354 Social Studies Book 10
Sending money to home from foreign country through unauthorized sources like private
merchants, representatives and unregistered institutions is called hundi. Hundi is considered
illegal. So we should send money from only authorized and registered institutions. Studies
have shown that a large amount of remittance that flow into the country has been used in
daily consumption and unproductive goods and services. Hence, we should learn to use such
money in productive and income generating sectors.
(4) Foreign Exchange
Foreign currency means all the currency of the world except Nepali currency. Foreign
exchange is the exchange of one currency for another or the conversion of one currency into
another currency. Hence, foreign exchange is the market in which currencies are traded. The
global foreign exchange market is the largest financial market in the world. It is considered
good to have a large deposit of foreign currency in any country. We use foreign currency
while buying goods from other countries or any other international transactions. In Nepal,
foreign currency is received from various sources like from Nepalese workers who serve
in foreign countries send money home and from international organizations who work in
Nepal. Likewise, foreign currency is earned from international tourists who visit Nepal. The
foreign exchange rate is the price paid to sell one currency for another. There is increase in
the demand of foreign currency due to increase in Nepal's imports in goods and services from
foreign countries. This makes our economy weak, as all the foreign currency is spent. The
term foreign exchange is usually abbreviated as "for ex" and occasionally as "FX."
(5) Securities
A financial instrument issued by a company or government agency to collect or raise certain
amount is called security. Securities include bonds, debentures, notes, options, shares, and
warrants but not insurance policies, and may be traded in financial markets such as stock
exchanges. Thus, companies can generate capital through investors who purchase securities.
Companies issue securities as an attempt to raise funds or capital for example share markets.
It helps to collect the capital or money scattered among the people which can be invested in
the country's development works.
(6) Shares
Every firm needs adequate capital to perform efficiently. A share market is a market where
securities are bought and sold. A company may have many different types of shares that come
with different conditions and rights. Shares represent ownership of a company. When an
individual buys shares in a company, he becomes one of its owners. Generally, firms fulfill their
financial requirement by issuing two types of shares: Equity Shares and Preference Shares.
Preference Shares
Preference shares are shares of a company’s stock with dividends that are paid out to
shareholders before common stock dividends are issued. If the company enters bankruptcy,
the shareholders with preferred stock are entitled to be paid from company assets first.
Preferred shareholders typically do not hold any voting rights. The preference shares are safer
investments than the equity shares. Preference Shares are not traded in stock exchange.
Social Studies Book 10 355
Ordinary Shares
Ordinary shares are also known as equity shares. The holder of the ordinary shares is the
real owner of the company, i.e. the amount of shares held by them is the portion of their
ownership in the company. Ordinary shareholders have some privileges like they get voting
rights at the general meeting, they can appoint or remove the directors and auditors of the
company. Apart from that, they have the right to get the profits of the company, i.e. the more
the profit, the more is their dividend and vice versa. Therefore, the amount of dividends is not
fixed. This does not mean that they will get the whole profit, but the remaining profit after
paying all expenses. Ordinary or equity shares are traded in the markets and their prices go up
and down depending on supply and demand for the stock.
Requirements to Fill the Forms of Shares
"" Attested photocopy of citizenship certificate
"" Personal details like address, parents' names, phone no. etc.
"" Bank account and receipt for refund
"" Recently taken PP size photograph
Word Meaning
• Resilient : flexible
• Counterfeiters : people who involve in making fake money, forgers
• Scribble : to write or draw something quickly or carelessly
Points to Remember
"" A loan is the lending of money from one individual, organization or entity to another.
"" Preference shareholders enjoy the benefit of receiving their dividend distribution first;
the equity shareholders enjoy voting rights in major company decisions.
"" We need paper notes to exchange goods or services.
"" The sending of money from one place to another is called money transfer.
"" Sending money to home from foreign country through unauthorized person or institution
is called hundi.
"" Foreign exchange is the conversion of one currency into another currency.
"" The foreign exchange rate is the price paid to sell one currency for another.
"" A company or government agency can issue financial instrument to collect capital.
"" Securities include bonds, debentures, notes, options, shares, etc.
"" A share market is a market where securities are bought and sold.
"" A company or institution issues two types of shares: Ordinary Shares and Preference
Shares.
356 Social Studies Book 10
Activities
1. Very short answer questions
a. What is loan?
b. What is a remittance?
c. What is foreign exchange rate?
d. What do you mean by share market?
e. What is an ordinary share?
2. Short answer questions
a. List the disadvantages of soiled notes.
b. Prepare a chart of the foreign exchange rate of today.
c. State any five benefits of shares.
d. Show the difference between security and loans.
e. What is hundi? Why is it illegal?
f. How does remittance help the country's economy?
g. Why do companies issue shares?
h. Write a short paragraph on foreign exchange.
i. Distinguish between Preference and Ordinary share.
j. What are the requirements needed while filling the share forms?
3. Long answer questions
a. What are financial instruments? Explain them in brief.
b. What are securities? Explain their types.
c. What are shares? What are its types?.
4. Community Work
Visit a family member in your community whose husband is working abroad. Find out
how the husband sends the remittance and how that money is spent. Prepare a short
report based on your findings.
Social Studies Book 10 357
8 Cooperatives in Nepal
Lesson
The concept of cooperative in Nepal is very old. ‘Arma Parma’ (in hilly region), MangkaKhala’
(in Newar community), Dharmabhakari (established from religious point of view), Dhikuri,
guthi, kulayan, dewali, bheja, etc. were the traditional co-operatives. They functioned
differently according to community, religion, custom and society. These kinds of co-operatives
were in existence up to 2007 B.S. After the democratic revolution of 2007 B.S, people as
well as government made effort towards improvement of rural farmers' standard of living.
Co-operative Department was established to increase standard of living of rural farmer in
2010 B.S. On Bhadra 14, 2016 Cooperative Society Act was passed to improve effectiveness
of cooperatives. In 2018, Cooperative Law was passed and in 2020 B.S. Cooperative bank
was established. Bakhan Credit Cooperative Limited is the first cooperative established in
Bakhanpur of Chitwan in 2013 B.S. After the establishment of National Co-operative Board
in 2048, which marks the official registration of co-operatives under the law of Nepal, the
trend of opening Cooperatives has rapidly increased.
A cooperative is established to promote mutual socio-economic operations among the poor
community through establishment of co-operative organizations. At present, there are over 21
thousand cooperatives spread all over Nepal. More than 3 million people are getting benefits
358 Social Studies Book 10
from them. Most of the cooperatives in Nepal are urban centered. However, efforts have been
made to expand their services to rural areas too.
The Webster Universal Dictionary defines co-operation as "an association of a number of
persons for a common benefit especially in carrying on some branch of trade or industry, the
profit being shared or divided among the members". Co-operative has been defined as a form
of organization in which persons voluntarily associate together as human being on the basis
of equality for the promotion of their economic interests.
Co-operatives are autonomous associations formed and democratically directed by people
who come together to meet common economic, social, and cultural needs. Cooperatives
include non-profit organizations and business that are owned and managed by the people
who use its services or by the people who work there.
Features of Cooperatives
a. Open membership: The membership of a Co-operative Society is open to all those who have
a common interest. A minimum of ten members are required to form a cooperative society.
b. Voluntary Association: A person can be a member of co-operative voluntarily. He/she
can remain its members as long as s/he likes.
c. State Control: To protect the interest of members, co-operative societies are placed
under state control through registration. While getting registered, a society has to submit
details about the members and the business it is to undertake. It has to maintain books of
accounts, which are to be audited by government auditors.
d. Sources of Finance: In a co-operative society capital is contributed by all the members.
However, it can also take loans from government.
e. Democratic Management: Co-operative societies are managed in democratic way. The
society is managed by a group known as “Board of Directors”. The members of the board
of directors are the elected representatives of the organization. Each member has a single
vote, irrespective of the number of shares held.
Types of Cooperatives in Nepal
There are many types of co-operatives society existing in Nepal. Some of them are related with
finance and some of them are related with saving and credit. They are divided into different
types according to their working nature. The most popular cooperatives existing in Nepal are
as follows:
a. Saving and Credit Co-operative Society: This kind of co-operatives works under
the co-operative principle. They adopt policies directed by the co-operatives Act. They
motivate their members for saving money. They use the saving amount or capital on
behalf of their members and for the society. They invest their money for productive,
skillful, and income generating programmes proposed by the members.
Social Studies Book 10 359
b. Multipurpose Co-operatives Society:-Multipurpose co-operatives societies are also
helpful for providing loan facilities to the members. These types of cooperatives collect
saving from their members and us this saving into different purpose and program. A
multipurpose co-operatives society can do many tasks, such as mobilizing saving and
advancing credit, small co-operatives business, cooperatives education, development
work, literacy work etc. The major numbers of co-operatives existing in Nepal are
multipurpose co-operatives.
c. Co-operatives Society Licensed by Nepal Rastra Bank (NRB):-This kind of co-
operatives society have limited right of banking transaction. They can accept saving and
provide loan to their members as well as other persons. They have facilities of opening
account in the NRB for the daily transaction. They are able to exchange the foreign
currency by obtaining license from NRB. Their rules and regulations are supervised by
central bank.
d. Financial co-operatives:-The financial cooperatives are huge capital oriented co-
operatives. They can accept saving and open account to the other people in addition to
members. They provide housing, leasing and other types of hire purchase loan to the
interested people. These finance companies are under the supervision of Nepal Rastra
Bank. These are also called small bank which are classified into “D” category according
to Bank and Financial Institution Act 2005.
Advantages of Cooperatives
a. Works for the economic progress of the nation
b. Uplifts the poor and weaker section of the country
c. Brings balance between country's economic and social development
d. Mobilizes resources in rural areas
e. Provides employment in agricultural sector
f. Provides better qualities of seeds, fertilizers, pesticides, insecticides to the farmers
g. Helps to get loans for agriculture, housing, land, business, education, etc.
h. Enhances the economic activities like banking, shares, investment and so on
i. Encourages in saving daily income
j. Helps to eliminate poverty
k. Increases the living standard of people
Problems of Co-operatives in Nepal
a. Some of the co-operatives are being run by certain families and their kith and kin
confining the vital posts within themselves.
b. Some of them are not transparent in financial transactions and do not get their
accounts audited.
c. They collect deposits from ordinary people and provide loans to the rich
entrepreneur.
d. Sometimes the operators of co-operatives run away after collecting a huge amount
of money from the ordinary people.
360 Social Studies Book 10
Points to Remember:
"" The concept of cooperative in Nepal is very old.
"" Arma Parma, MangkaKhala, Dharmabhakari, Dhikuri, guthi, kulayan, dewali,
bheja, etc. were the traditional co-operatives.
"" Co-operative Department was established to increase standard of living of rural farmer.
"" Cooperative Society Act was passed in 2016 to improve effectiveness of
cooperatives.
"" Cooperative Law was passed in 2018, and in 2020 B.S. Cooperative bank was
established.
"" Bakhan Credit Cooperative Limited (2013 B.S.) is the first cooperative established
in Nepal.
"" National Co-operative Board was founded in 2048 B.S.
"" A cooperative is established to promote mutual socio-economic operations
among the poor community through establishment of co-operative organizations.
"" The Webster defines co-operative as "an association of a number of persons for a
common benefit".
"" Co-operatives are autonomous associations formed and democratically directed
by people.
"" There are many types of co-operatives society existing in Nepal.
"" Saving and credit co-operative society invest its money for productive, skillful, and
income generating programmes proposed by the members.
"" Financial co-operatives are also called small bank which are classified into “D” category.
Word Meaning
• functioned : worked, served
• promote : develop
• audited : checked and approved for consistency
• irrespective : without bias
• adopt : follow
• mobilizing : utilize, use
• Voluntarily : on one's own will
• Autonomous : independent
• Multipurpose : serving many purposes
• Transaction : deal
Social Studies Book 10 361
Activities
1. Very short answer questions
a. Name some traditional cooperatives of Nepal.
b. Why was the Co-operative Department established and when?
c. Name the first cooperative established in Nepal? When and where was it
established?
d. When was Cooperative Law passed?
e. When was the National Co-operative Board established?
f. What is a co-operative organization?
g. When was the Cooperative Society Act passed?
h. Why Co-operatives are called autonomous?
2. Short answer questions
a. Explain the principles of cooperatives.
b. Make a list of the necessary conditions required for the establishment of
cooperatives.
c. Why are cooperatives considered the sources of finance?
d. What is the main function of Saving and credit co-operative society?
e. What is the main function of Multipurpose co-operatives society?
f. State the function of Financial co-operatives.
g. Most of the cooperatives in Nepal are urban centered. Why?
h. What are the features of cooperatives? Explain.
i. Mention the types of cooperatives in Nepal. Explain each of them.
j. State the advantages of cooperatives.
k. Show the differences between saving and credit co-operative society and
multipurpose co-operative society.
l. We see that large number of co-operatives are established in Nepal. What benefits
do you think people in rural areas get from them?
3. Long answer questions
a. Prepare a short report on the roles played by cooperatives in your locality to
promote local production.
b. Show the historical development of cooperatives in Nepal.
c. We hear news about some cooperatives cheating people in the name of
providing services and opportunities. Hence, many people have negative image
on cooperatives. Suggest some measures how cooperatives can be made more
accountable and responsible towards people.
d. Do you think the cooperatives in Nepal at present are working effectively? What
roles should the government play to make them more effective? Discuss.
4. Community work
a. Visit a cooperative organization operating in your locality. Make a list of the
services and benefits it has been providing to the local people.
362 Social Studies Book 10
9 Insurance in Nepal
Lesson
Insurance is a device which provides financial
compensation to those who suffer from misfortune. In
other words, insurance is the best means for security to
human life and property from various risks. Insurance
can be defined as the contract between two parties
in which one party promises to pay a certain sum of
money as premium over the loss of life or physical
properties and another party agrees to compensate in
case of happening the events. In other words, insurance
provides a guarantee of compensation for specified loss, damage, illness, death, accident, fire
and so on in return for payment of a specified premium.
History of Insurance in Nepal is not long. History shows the introduction of insurance
company in Nepal as "Mal Chalani and Beema Company" started in 2004 B.S. It was later
converted into “Nepal Insurance and Transport Co. Pvt. Ltd” in 2016 B.S and now named as
Nepal Insurance. After the restoration of democracy, An Insurance Board (Beema Sansthan)
was established to promote, facilitate and regulate the insurance companies of Nepal. There
are 25 insurance companies in Nepal. Out of them 16 are non-life insurance companies, 9 are
life insurance companies.
Life insurance companies provide security against the death of insured person or provide
sum of money after a set period. They provide insurance against life of the policyholders.
Hence, insurance is considered as one of the most prominent measures to secure the value of
life, cover the losses in business and property and to achieve economic development of the
nation. The insurance policy is a contract between the insurance company and the insured
person also known as the policyholder. The policy determines the claims which the company
is legally required to pay, in exchange for payment, known as the premium. A premium is an
amount paid by the insured person in certain interval of time.
Insurance companies are a type of financial institutions that sell policies and provide protection
from various kinds of risks. More specifically insurance company collect fund in the form of
premium and provide compensation if the probable loss occur in the future. Generally risks
that insurance policies cover include the loss of life, income, or possessions and the high cost
of medical bills.
Social Studies Book 10 363
Insurance Industry in Nepal
Nepal Transport and Finance Company, the first insurance company in Nepal was established
in 2004 B.S. After the National Insurance Company Act was passed in 2025 B.S. the same year
Rastriya Beema Sansthan was established. It provided both life and non-life insurance. Now
there are more than 25 insurance companies operating throughout the country. Among them,
9are life insurance and 16 are non-life insurance companies.
Today, The number of companies, number
of policies sold and revenue earned, has
dramatically increased. However, there are
still many areas that the Nepali insurance
sector has not been able to cover. Beema
Samiti (Insurance Board) an autonomous
body was established to develop, systemize,
regularize and regulate the insurance
business of Nepal under Insurance Act,
2049 B.S.
Rastriya Beema Sansthan has been
playing important role in promoting and
expanding insurance business in Nepal.
Of the country's total policy holders, it
occupies 25 % in non-life insurance and 50% in life insurance. Rastriya Beema Sansthan has
been providing its services through its various branches and contact offices. The development
of insurance business is closely related to the industrialization in Nepal.
Types of Insurance
There are more than 150 different types of policies that people can choose from. But the
majors are classified under four categories. They are stated below:
a. Life Insurance
In general, life insurance is a type of coverage that pays benefits upon a person’s death
or disability. In exchange for relatively small premiums paid in the present, the policyholder
receives the assurance that a large amount of money will be available in the future to help his
or her beneficiaries pay debts and funeral expenses. To be the member of life insurance, a
person age must be between 16 - 65 years.
b. Non-Life Insurance
Non-life Insurance is also called General insurance, which includes automobile, and
homeowners policies. It provides payment depending on the loss from a particular financial
event. The crops of farmers can be damaged or destroyed by natural calamities like
364 Social Studies Book 10
landslides, earthquakes, storms, hailstones, floods, famine, etc. Similarly, a vehicle can meet
road accident. A house, shop, factory, etc. may be destroyed by earth quake or fire. In such
situation, the insurance company provides certain amount of the thing insured in the form
of compensation. This kind of insurance is normally done for a period of one year. After
the expiry of the period, it has to be renewed again by paying the required amount. Crop
insurance has great significance in the context of agricultural country like Nepal. Under the
National Agriculture Insurance Laws of 2061 B.S., Crops and Processing Insurance 2069
has been declared in collaboration with Ministry of Agriculture. According to this law, the
government will bear 75 % of the insured amount and the farmer will bear 25%. Similarly,
90% of the compensation will be paid if the crop has been insured. Likewise, certain amount
of the insured cattle will be paid if it dies.
c. Third Party Insurance
This policy ensures that third parties involved in an incident are protected. So, for example,
if you were to crash into another bike and the accident was deemed to be your fault, then the
cost of the damage to the rider of another bike would be covered, although you would not be
able to claim for damage to your own.
d. Health Insurance
One of the most important types of insurance to have is health insurance. It insures your
health when you are sick and you do not have money for treatment.
The following points should be considered while doing insurance
"" One should be clear about the aim of doing insurance.
"" Clearly state the name of your primary beneficiary
"" Do not provide any wrong information.
"" Being careful about whether you'll be able to pay the premium or not within the
required time.
"" Read the insurance documents carefully, for any inadequacy you should contact
your agent immediately.
"" Is the insurance agent registered in the Insurance Board?
"" Always take the cash receipt after the payment of your premium.
"" Always inform your family members about the insurance you have done.
"" Always remember to pay the next premium within the stipulated time.
"" Keep all the insurance documents safely.
Benefits of Insurance
"" It makes us compulsory to save our money.
"" Gives compensation for the lost property.
"" Secures our life
Social Studies Book 10 365
"" Provides us dividends
"" Provides us opportunity to fully utilize the total saved amount
"" We can take loan when we are in difficulty.
Word Meaning
• Premium : a certain amount a customer pays to the company for the
expected services
• contract : agreement signed between two or more persons/institutions
• policy : strategy, plan, program
• policyholder : a person to insures his/her life with an insurance company
• probable : likely
• compensation : give certain amount of the loss occurred
• possessions : properties
• regulate : administer
• ensure : guarantee
• primary beneficiary : the person who will receive the money of the life insurance
policy when the insured person dies
Points to Remember:
"" Insurance can be defined as the contract between two parties for their mutual benefits.
"" Insurance secures the value of life, by covering any kind losses be bear.
"" Insurance companies are financial institutions that sell policies to protect their clients
from any kind of loss.
"" The first insurance company in Nepal was established in 2004 B.S.
"" In 2025 B.S, National Insurance Company Act was passed and Rastriya Beema
Sansthan(RBS) was established.
"" RBS provided both life and non-life insurance.
"" More than 25 insurance companies operate in Nepal of which are life insurance and 16
are non-life insurance companies.
"" Life insurance is a type of coverage that pays benefits upon a person’s death or disability.
"" Non-life Insurance guarantees the loss or damage of automobile, and homeowners
policies.
"" We need be careful while becoming the client of insurance companies.
"" We derive several benefits from insurance.
366 Social Studies Book 10
Activities
1. Very short answer questions
a. What is Insurance?
b. When was the first insurance company established in Nepal?
c. How many insurance companies operate in Nepal?
d. What is Non-life Insurance?
e. What is life guarantees?
f. Who is eligible to the member of Life Insurance Company?
g. When were National Insurance Company Act and Rastriya Beema Sansthan
established?
2. Short answer questions
a. Why do Insurance companies sell their policies?
b. What are the types of insurances? Explain.
c. Insurance secures us from any kind of losses we bear. Discuss.
d. What are the benefits from insurance?
e. Why would you recommend your neighbor to do insurance of his/her life or
property?
f. Show a difference between life insurance and non-life insurance?
3. Long answer questions
a. Write a letter to the editor of a newspaper suggesting the significance of non-life
insurance in the context of agricultural country like Nepal.
b. Write about the history of insurance in Nepal.
c. How can we become careful while becoming the client of insurance companies?
d. Visit any three persons in your locality who have insured their lives and complete
the following table.
Name of Name of Insurance Total Premium Starting and
the person Insurance Period Insurance Amount Expiry date
Company Amount
1.
2.
3.
4. Community work
Visit the agriculture office in your locality and study about the crop insurance and
discuss with the farmers. Prepare a short report based on your findings.
Social Studies Book 10 367
Lesson 1 0 Revenue and Taxation in
Nepal
Economic development has been one of the most popular agenda in Nepal which can only
be achieved through high rate of economic growth, reduction of income disparities and
poverty and improvement of living standard of people. In this sense, our government needs
more revenue mobilization for overall economic development and state welfare. Similarly,
the government also requires some sources of income for meeting its day-today expenditure,
which is called revenue. The role of revenue in the development of a country is not less
important than the role of water for the existence of human body. Hence, in the developing
country like Nepal, there is a necessity for raising a larger volume of funds for the development
and administration expenses.
A country has various income sources, and the income derived from those sources is called
public income or revenue. One of the important sources of revenue is collecting taxes. The
amount which the government collects from its citizens according to the law of the country
and the amount its citizens have to pay the government is called a tax. Tax is a compulsory
payment for its citizens. A person or institution pays taxes without any expectations of
benefits. Hence, tax is a mandatory payment by the citizen to the state in return of no profits.
It is the rights and responsibilities of the state to collect the taxes. Similarly, it is the rights and
responsibilities of the citizen to pay the taxes. Hence, tax is considered an important source
of national revenue.
Citizens should strive towards creating a healthy tax culture where the taxpayers and the tax
collectors discharge their obligations with a sense of responsibility towards nation building.
National Revenue
National revenue is the main source of economic activities of a country. Government
needs sufficient revenue for its day to day administration, to maintain peace and security,
development activities and to launch public welfare programmes.
The government can collect revenue from taxable and non taxable sources. Tax is a key source
for revenue generation and mobilization. The government revenue or public revenue is
collected from various internal sources such as taxes, revenues from government corporations,
public enterprises, fees, special assessment and fines and penalties. Moreover, a country has
its different internal sources of income like agriculture, trade, industry, remittance, tourism,
customs, etc. But a developing country like ours receives donations and grants from foreign
governments, donor agencies and multi-national organizations. Income received from those
sources is not included under national revenue. National revenue is essential source for
368 Social Studies Book 10
economic and social change of a country and tax is the main source of national revenue. Tax
can be broadly classified into direct taxes and indirect taxes.
Direct Taxes
If a person pays the tax to the government directly, it is called direct tax. The government
collects direct taxes from the Inland Revenue Department (IRD) or the local authority. Such
tax cannot be transferred to others and must be paid by the tax payer to whom it is legally
levied. Such tax is imposed on the income and property of a person. Some direct taxes are
income tax, property (wealth) tax, vehicle tax, house and land tax, etc.
Direct tax system makes a person who has more income and property pay more tax than
a person who has less income and property. Similarly, the direct taxes collected from rich
people is utilized for the development programmes and public benefits. Hence, the poor
are indirectly benefited from direct taxes. The amount of direct tax is increased or decreased
according to proportional increase or decrease in income and properties. The primary goal of
this type of tax is to bring the rich under the tax net.
Indirect Taxes
Indirect tax is imposed on the consumption of goods or use of services. This tax is added
to the price of goods sold or services provided to the customers. An indirect tax is imposed
on one person but paid partly or wholly by another. Some indirect taxes are customs tariff
(export/import duty), sales (turnover)tax, value added tax (VAT), entertainment tax, hotel
tax, passenger tax, excise duty, etc.
Indirect tax has several benefits. For example, a business man has to pay tax to the government
which he collects from his customers, so the businessman dies not feel it as economic burden
and there will be less chance of tax evasion.
Similarly, the government can control import of foreign goods by levying higher rate of
indirect tax and encourage the use of domestic products by charging lower tax rate.
Non-tax Revenue
The government has several sources of revenue beside tax. Revenue collected from sources
other than tax is called non-tax revenue. Non-tax revenues are collected from gifts and
donations, fees, penalty and punishment, property without inheritor, public properties, etc.
Reason for Paying Tax
Paying tax is not only our responsibility but also our right as well. Tax has several advantages.
Some of them are given below.
a. It helps the government execute development and welfare programmes for its citizens.
b. It reduces economic gap between the higher income and lower income groups.
Social Studies Book 10 369
c. Tax collected by the government is invested in the welfare of all people equally.
d. It helps the government to increase its investment in different sectors like education,
health, good governance, communication, transportation, drinking water, electricity,
sanitation etc.
e. It encourages for the production of essential goods, use domestic products and cut
off the use of luxurious and harmful goods.
f. It helps in removing regional economic disparities by introducing the tax exemption
policy to encourage industries which operate in backward and remote regions.
g. It is the main source of national revenue. People are the backbone of national
development. Hence, it is the source of people's contribution in national
development.
h. If the people pay tax, the government can carry out different development activities
that will ultimately reduce poverty and unemployment problems.
Duties of Taxpayers
A taxpayer means a person who is under the obligation to pay tax according to the existing
law. A tax payer is also known as assessee. Every citizen has to register themselves and their
business organizations according to the law of the state. They must pay the taxes to the
government on time and get them renewed. There are several duties of a taxpayer. Some of
them are given below.
"" get registered with the Department of Revenue
"" know his/her tax reporting obligations
"" to obtain PAN and quote it in all documents and correspondence
"" to pay tax on time
"" to issue tax invoice
"" to maintain record and keep account of their transaction
"" to preserve the record safely until the transaction period is over
"" to inform IRO (In and Revenue Office) in case of any changes in address, telephone
number, reorganization of partnership, etc.
"" to allow the tax officials to examine his/hers business record and stock on hand
Current Tax System in Nepal
Value-Added Tax (VAT)
Value-Added Tax (VAT) is a certain amount of money charged on different stages from the
production to distribution of the products or services. It is a kind of tax which the customer
pays when he buys any goods or services. Generally, VAT is already included in the price of
370 Social Studies Book 10
something that is kept in a shop for sale. However, not all goods and services are taxed. Some
goods and services exempted from tax, which means the customers need not have to pay the
tax while buying those goods or services. Goods and services liable to VAT are known as
‘taxable supplies’.VAT is an indirect tax.
France was the first implemented of VAT in 1954. In Nepal, VAT was introduced in 2054
B.S. For example, according to the policy adopted in fiscal year 2072/73, green house and
irrigation equipment imported by agricultural firms are to be exempt from value added tax.
Similarly, the government has also introduced electric payment for deposition of VAT liability.
The standard rate is currently 20% and applies to most goods and services.
VAT divides all goods and services into two basic categories, taxable and tax-exempt. In
Nepal, goods and services are taxed at standard rate of 13% as per the fiscal year 2072/73
Economic Plan. According to VAT Act, if a person provides correct information that a tax
payer has evaded tax, he will be rewarded with the amount equal to 20% of the amount of tax
collected from that person.
Excise Duty (Anta Shulk)
An excise or excise tax (sometimes called an excise duty) is a type of tax charged on goods
produced within the country and also on import of certain goods from outside the country.
It is a tax on the production or sale of a goods. This type of duty is called Inland Tax (Anta
Shulka) as it is imposed in the domestic business on specified goods and services. Excise
duty is imposed on the goods like tobacco products, alcohols, noodles, according to quantity.
Likewise, polythene, vehicles, printing materials, TV, etc. are taxed according to percentage
of price. Goods under excise duty are grouped under: alcoholic drinks, tobacco products and
self exported goods. The rate of excise duty generally ranges from 0-40 percent.
In Nepal, the collection of tax through excise duty is an important source of revenue to the
government which helps the government to provide public services, and to achieve economic
growth.
Customs Duty (Bhansar Shulk)
Customs Duty is an indirect tax. Customs duty means the amount paid by the person who
exports or imports goods and services. Customs and duties are a principal source of domestic
revenue. Customs offices are located at the border areas. Customs duty alone contributes 20
% of the total tax revenue in Nepal.
Prohibited exports include archeological and religious artifacts; controlled wildlife; narcotics;
arms, ammunition and explosives; industrial raw materials; imported raw materials, parts and
capital goods; and timber and logs.
There are 30 customs offices within Nepal. In land route there are 9 in Northern borders, 20
in border with India and one in air route i.e. Tribhuvan International Airport Customs Office
in Kathmandu.
Social Studies Book 10 371
The major customs offices in border with India are in Biratnagar, Kakadvhitta, Janakpur,
Birgunj, Bhairahawa, Krishnanagar, Nepalgunj, Kanchanpur, etc. and other sub-customs
points include Mahespur, Prithivipur, Darchula, Bhadrapur, Gularia, etc. The customs
offices in Northern Border are located at Tatopani, Kimathanka, Lamabagar, Larke, Mugu,
Olanchungola, Yarinaka, Rasuwa, Mustang, etc.
Income Tax
An income tax is a tax imposed on individuals or entities (taxpayers) that vary with the
income or profits (taxable income) of the taxpayer. The main objective of the tax system
is to enhance revenue mobilization through effective revenue collection procedure for the
economic development of the nation.
Income tax is was first introduced in 12th century in Britain. It is the oldest type of tax. It
was imposed on animal, agriculture and fishery occupations in the past. But in the present,
it is imposed on income received from almost every sectors like business, employment,
investment, income, profit, etc. Hence, both individual and companies are required to pay
taxes. According to the Income Tax Act 2002, all persons with assessable income are required
to register with the Inland Revenue Office (IRO) and obtain a Permanent Account Number
(PAN) and to file a tax return annually. Hence, the income tax is a direct tax.
The income those are exempt from tax include agricultural income derived from sources
in Nepal by a person other than the income derived from agricultural firm, company,
or partnership. Non profitable, charitable or social service oriented institutions and
organizations, non professional sports organizations, and the political parties registered in
the Election Commission do not have to pay tax.
Tax and Revenue Collection Under Federal System
Under Nepal's federal model of government, the state has decentralized or given tax collecting
authority to the provincial governments. According to the Constitution of Nepal, 2015, local
governments should collect local tax, manage records and provide services.
In Nepal, central, provincial and local governments have their authority to formulate budget
and collect the revenues in their jurisdiction. Central government is responsible for declaring
tax rates, exempting tax, collecting tax and managing the tax system. Besides that, provincial
and local government can also generate revenue as per the law. Local government’s revenue
sources are taxes (land, property, rent, transport, commercial, entertainment, business,
advertisement and parking), user charges and non-taxes, intergovernmental transfer and
others. Based on these resources, local governments collect the revenues which are internal
revenue, shared tax, grants and specific programmes based in Nepal. Internal revenue includes
local tax, fees, registration, property sales, fine and property tax. Similarly, shared tax indicates
the tax-sharing system between higher and local government. Central government controls
over the budget and shares it with the local government. In shared revenue, local government
372 Social Studies Book 10
must share certain percentage of the revenue with the higher government. In Nepal, local
government shares 5-90 per cent of property registration, 30 per cent of tourism royalty and
10-50 per cent of other royalties (Local Self Governance Act, 1999).
Problems and Challenges of Tax System in Nepal
Fiscal decentralization is a way to transfer the power of central government to local level and
make them responsible. In developing country like Nepal, fiscal and budgetary deficits are
common economic problems. Therefore, proper use of revenue is a challenging problem
because a majority of the people lives in abject poverty and the people who engage in
economic activities have extremely limited taxable capacity. Moreover, the government is
unable to bring many businesses and organizations under its tax system. In addition, our
taxation system has unlimited tax shelters.
Our country has ineffective tax administration system and it lacks innovative mechanism to
identify new taxpayers and bring them into tax net. On the other hand, our tax system suffers
from the lack of simplicity and transparency and administrative and procedural complexities.
The major problems of taxation in Nepal include:
a. marginally high tax rates
b. low lax elasticity
c. poor voluntary compliance
d. leakages in tax collection
e. rigid Income Tax laws
f. inefficient and corrupt tax administration
g. no consolidated record of land and property
h. Lack of equity and transparency
i. Unable to promoting taxpayer awareness
Hence, the tax system in Nepal needs immediate reforms to ensure its growth, equity and
stability. The studies and reports on tax system suggest several reforms have had been
undertaken by the government in the past to simplify and modernize the tax system. These
reforms were confined to improving tax structure by designing appropriate policy instruments.
The reforms in taxation in Nepal consist of three types: reforms in tax laws and regulations,
reforms in environment, and reforms in tax administration.
Social Studies Book 10 373
Word Meaning
• Jurisdiction : the official power to make legal decisions and judgements.
• Government revenue : income of the government
• Liability : legal responsibility
• Disparities : inequality, differences
Points to Remember:
"" Tax is collected by government to meet the need of budget.
"" Tax is a permanent instrument for collecting revenues.
"" It is a major sources of revenue in the developing world like Nepal.
"" The biggest difference between VAT/sales tax and excise duty is that the prior to be
charged on consumption of goods, whereas excise is charged on the manufacture and
production of goods.
"" Customs duty is a tax levied upon goods imported into the country from foreign
countries while excise duty is levied by the government on the goods manufactured
in the country
"" Indirect tax is imposed on the consumption of goods or use of services.
"" Every citizen has to register themselves and their business organization according to
the law of the nation in the authority concerned.
"" Our tax system suffers from the lack of simplicity and transparency and administrative
and procedural complexities.
"" The tax system in Nepal needs immediate reforms to ensure growth, equity and
stability.
374 Social Studies Book 10
Activities
1. Very short answer questions
a. What is national revenue?
b. Who is a tax payer?
c. What is direct tax?
d. hat is indirect tax?
e. What is VAT?
f. Write one duty of a tax payer.
2. Short answer questions
a. What is the main source of national revenue?
b. Show a difference between direct tax and indirect tax.
c. Suggest some measure to bring everyone in the nation under the tax net.
d. What is national revenue? Write a short paragraph on ‘national revenue’ as the
main sources of developing the country.
e. How is tax imposed on goods and services indirectly? Discuss with example.
f. Why should the citizen pay tax? Make a list.
g. Suggest some ways to reform taxation in Nepal.
h. Name some goods and services that are tax exempt.
i. What is Value-Added Tax (VAT)?
j. What are the features of Income tax? Explain.
k. What is Non-tax Revenue? Explain.
l. What are the sources of Local government’s revenue?
3. Long answer questions
a. Explain the main sources of national revenue.
b. It is the prime duty of citizens to pay tax to the government. Discuss.
c. Make a list of the duties of tax payers.
d. What are the advantages and disadvantages of direct tax?
e. What are the advantages and disadvantages of indirect tax?
f. Nepal has several problems regarding taxation. Justify.
g. Discuss about the tax and revenue collection under Federal System.
4. Community work
What types of taxes are paid by your family? Do you think the amount of tax paid by
your family is utilized properly? Discuss with a member of your rural municipality.
Social Studies Book 10 375
11 Consumers Rights
Lesson
We enjoy various goods and services produced and available in the market. We get education,
health, transportation, irrigation and other facilities from the state. We buy and consume
other many goods produced or supplied in our place. Hence, we all are consumers. The word
‘consumer’ means any person who uses or consumes any types of goods or services from the
market. A consumer is any person who engages in the process of spending money and using
economic goods and services.
Consumer protection means safeguarding the interest and rights of the consumers. In other
words, it refers to the measures adopted for the protection of consumers from dishonest and
unethical malpractices by the business persons and to provide them speedy and effective
redress of their grievances.
Based on UN Guidelines for Consumer Protection, 1985, the Nepalese Parliament enacted
Consumer Protection Act in the year of 2054 BS to provide for better protection of the interest
of consumers. The Constitution of Nepal has guaranteed the rights of the consumer as one of
the fundamental rights of the citizen under the Part 3, Act 44 of the constitution. Consumer
rights include: the right to safety, the right to be informed, the right to choose, and the right to
be heard. A global consumer movement led by Consumers International, a global federation
of over 250 consumer organisations, added four more rights: the right to satisfaction of basic
needs, the right to redress, the right to education, and the right to a healthy environment.
According to Consumers Protection Act 2054 BS, "Consumer" means an individual
or institution consuming or using any consumer goods or service. Consumers can be
of international, national or regional level. All the people wherever they are will be the
consumers for the producers. A hotelier provides services to other consumers. But, he also
consumes various goods like vegetables, meat etc. which he buys from the market. Hence,
every individual, group or institution of the world is a consumer.
According to law, a consumer has every right to reject any product or services rendered by
any goods or service provider in the market and can mould them to produce goods and
provide services of their choice. However, majority of the consumers living in our country
have low level of awareness and low extent of utilization of consumer rights. In another word,
ignorance and illiteracy of consumers are the basic weaknesses of Nepalese consumers. When
the consumers are unaware of their rights, they are naturally unaware of their responsibilities
as consumers.
After the promulgation of the Constitution, consumer issues started getting importance in
Nepal. However, in a poor country like Nepal, where the level of poverty, unemployment and
illiteracy is high, the people are facing numerous problems regarding consumer issues.
376 Social Studies Book 10
Essential Commodities Recommended by the Government
The government of Nepal has listed the following commodities as essential for everyone.
The price list of these commodities is to be displayed by both the retailers and wholesalers
publicly are : rice, maize, beaten rice, wheat and flour, pulses, salt, sugar, tea, cooking oil, ghee,
milk, vegetables, meat, fruits, spices, medicines, certain clothes, soap, bricks, fertilizer, pipes, cement,
iron rods, tin, firewood and coal, kerosene, diesel, petrol and aviation fuel.
Other essential commodities are wood, stationery items and newsprint.
Consumers' Rights
Nepal’s Consumer Protection Act clearly states that any activity that intends to deceive
consumers is strictly punishable by law. Provisions of the Act protect consumers from
irregularities such as the quality, quantity and prices of consumer goods or services; ensuring
that no one lowers or removes the attributes or usefulness of consumer goods or services;
preventing circumstances in which monopolies and unfair trading practices may lead to an
increase in prices, as well as false and misleading propaganda about the use and usefulness of
consumer goods or services. The Act includes provisions on selling, supplying, importing,
exporting and storing safe and quality consumer goods or services, and protecting the rights
and interests of consumers through the establishment of an agency for redress.
The Consumer Protection Act 2054 BS has guaranteed the following rights to
consumers:
a. Right to protection of life, health and property from harmful consumer goods,
b. Right to be informed about price, quantity and quality of consumer goods in order
to be protected from mal-business practices,
c. Right to choose the goods and services at competitive prices,
d. Right to be assured on hearing by appropriate authority on consumer protection ,
e. Right to hearing and compensation and
f. Right to consumer education.
Particulars to be Mentioned in Consumer Goods :
The following particulars on the labels of consumer goods should be mentioned:
a. Name and address of the producer, and registration number of the industry
b. The ingredients, quantity and weight of food and medicines must be mentioned.
c. Quality of consumer goods whose quality has been determined, if any.
d. Method of consuming consumer goods and possible impact of such consumption.
e. Price, batch number, production date and expiry date of the consumer goods.
f. Electronic, hardware and machinery goods should have guarantee, date of guarantee,
and other necessary matters.
g. Precautions and safety measures must be mentioned on inflammable, dangerous or
fragile consumer good.
Consumers' Responsibilities
Consumers have to be careful while buying the goods and services. They should try to be fully
informed about the price, quality, packaging, manufactured and expiry date and quantity of
Social Studies Book 10 377
the commodities. They should also be careful about the producer's name and address. They
should always take the bill or receipt of the goods and commodities while buying.
In case of the impeachment of laws form the producers and seller every consumer should
readily inform the concerned authorities on time. Consumers must be aware of the following
things from not being deceived.
"" Never buy underweight goods.
"" Always check the manufacturing and expiry date and never buy the expired goods.
"" Be careful while buying goods that are claimed as of high quality.
"" Inform the authority concerned if you are overcharged while using public
transportation.
"" Identify the persons/institutions that violate the consumers' rights, and make them
publicly known.
"" Be aware of the unregistered and illegal institutions/persons who claim to provide
services to the general public.
"" Never use low quality and unhygienic foods and commodities.
It is the responsibility every consumer to protect and promote the consumers' rights. They
should carefully observe the services and goods available in their place. A conscious consumer
raises voice against unscrupulous traders and manufactures of goods and services that are of
low quality.
Consumer Rights Protection in Nepal
After long struggle and advocacy by the consumer
organizations and civil society for a separate and
comprehensive consumer protection law based
on UN guidelines, the Nepalese Parliament finally
enacted Consumer Protection Act in the year 2054.
The basic objectives of this Act are to safeguard the
health and comfort of the consumer, to prevent
the adulteration of the food stuffs with undesirable
elements, to prohibit the change of any originalities
of the food and to maintain quality standard of food.
The Act has strictly prohibited selling, distributing,
storing and producing such food staple that is
under quality or adulterated or harmful to human
health. Government owned corporations private companies in Nepal provide many goods
and services to consumers. But they do not fully comply with the requirements as per the
consumer protection laws.
Consumer Organizations play an effective role for the protection of consumer rights. To ensure
effective implementation of Consumer Protection Law in Nepal, consumer organizations,
civil society and government officials must work together. The unified activism will be a watch
dog and pressurize businesses, service providers & stakeholders to make them accountable
and enforce the law, which will ultimately ensure consumer rights in the country. Impunity,
378 Social Studies Book 10
corruption, unstable political situation and unfair politics are also the reasons for weak law
enforcement.
Finally, whenever we come across the violations of the provisions available in the Act we must
report the matter, so that actions/ punishment can be imposed on the defaulters. We all need
to be vigilant consumers in order to get the benefit from the legislations created by the State.
There are so many laws and other mechanism to ensure consumer welfare. Despite having
consumer protection laws in Nepal, the consumers have been still widely victimized. Various
factors are responsible for this sad situation. Some of them are:
"" The reluctant attitude of the government agencies to implement the law in true
spirit.
"" Lack of awareness among consumers about their rights and duties.
"" Majority of consumers are poor and illiterate.
"" Consumer’s negligence about their right or quality of goods or services.
"" Landlocked situation of the country and open border with India.
Solutions
"" Establish fast track courts for consumer complaints
"" Provide inspection officers with sub-judicial rights for on-the-spot punishment of
wrongdoers
"" Establish consumer complaint mechanism for each individual sector
"" Strengthen the Consumer Protection Council with increased representation from
the consumer movement
"" Standardize consumer products
"" Establish consumer laboratories for effective testing of products
"" Establish a collaborative consumer information centre to raise awareness of
consumer rights
Points to Remember:
"" We enjoy various goods and services produced and available in the market.
"" A person or an organization that uses or consumes the consumers' goods or services is a
consumer.
"" Nepal’s Consumer Protection Act clearly states that any activity that intends to deceive
consumers is strictly punishable by law.
"" Consumers should be fully informed about the price, quality, packaging, manufactured and
expiry date and quantity of the commodities.
"" It is the responsibility every consumer to protect and promote the consumers' rights.
"" Nepalese Parliament finally enacted Consumer Protection Act in the year 2054.
Social Studies Book 10 379
Word Meaning
• Commodities : produces, goods
• Deceive : betray
• Attributes : qualities
• Overcharged : charged too much
• Enacted : passed, endorsed
• Adulterated : contaminated
Activities
1. Very short answer questions
a. Who are consumers?
b. What is consumer rights?
c. In which Part and Article is the Consumer Rights mentioned in our constitution?
d. When was consumers' protection act endorsed?
e. Why should consumers' rights be ensured? Write in a sentence.
f. Name a few goods and services that you use from the market.
3. Long answer questions
a. What can be your role for the promotion of consumers' rights in Nepal?
b. What roles can people and the government play for the protection of consumers
rights?
c. Suggest some ways to minimize the supply of contaminated foods and low quality
service in the market.
d. As a consumer, what rights do you enjoy?
e. What roles can you play to aware the people about the consumers' rights?
f. Make a list of works done in Nepal for the protection of consumers' rights.
g. List the particulars to be mentioned in consumer goods.
h. How does black market limit the consumer’s rights?
i. Prepare a pamphlet to arouse consumers’ rights.
4. Community work
a. Visit a sweets shop or grocery in your community. Do the sweets or grocery items
have manufactured and expiry dates? What else information are given in them?
Make a list of them.
b. Prepare a short drama for creating consumers awareness in your community.
380 Social Studies Book 10
UNIT Our International
Relations and
9 Cooperation
We will learn the following subjects in this unit: 381
• United Nations Organization and its Specialized Agencies
• Specialized Agencies of the UNO
• Roles of Nepal in the UNO
• Activities of the UNO in Nepal
• Contemporary Global Issues and their Impacts on Human Life
• Concept of Localization and Globalization
Social Studies Book 10
Lesson 1 United Nations Organization
and its Organs
The world witnessed two devastating wars in the
20th century. The First World War broke out in 1914
A.D.. Millions of people were killed, wounded,
maimed, crippled and made homeless by the war.
The horror and tragedy of the First World War led
to a universal desire for peace. It was felt that some
international organizations should be established
to prevent future wars. Out of this desire was born
the League of Nations. The League of Nations
failed to work effectively and the Second World
War broke out in 1939 A.D. It was felt that a much stronger international organization should
be established, if the world was to avoid future wars and have permanent peace.
Atlantic Charter
Even before the end of the war, in August 1941, the U.S. President, Franklin Roosevelt and
the British Prime Minister, Winston Churchill, met on a battleship, in the mid-Altantic to
discuss the then world security situation. They talked the ways and means to end wars and
establish permanent peace and order in the world. They devised and signed an agreement,
called Atlantic Charter to establish an international organization.
Objectives of the Charter
"" To maintain international peace and security.
"" To encourage international cooperation in the spheres of social, economic and
cultural developments.
"" To develop friendly relations among nations on principles of equal rights and self-
determination.
"" To recognize the fundamental rights of all people around the globe.
United Nations Organization
On 1 January, 1942, representatives of 26 Allied countries met in Washington and signed
a Declaration of United Nations. The signatories agreed on the principles of the Atlantic
Charter. Later, on 26 June 1945, an international conference of 50 nations held in San
Francisco of the USA formally adopted this resolution and signed the charter of the United
382 Social Studies Book 10
Nations Organizations. The United Nations Organization was officially established on 24
Oct. 1945 AD.
The headquarters of the United Nations is located in New York, USA. The organization has
six official languages- English, French, Spanish, Russian, Chinese and Arabic. Its flag bears its
emblem, a map of the world encircled by two bent olive branches.
Objectives of the United Nations Organization
The objectives of the establishment of the UNO are given below.
"" To maintain international peace and security.
"" To develop friendly relations among nations on the basis of equality and the
principle of self-determination.
"" To foster worldwide cooperation in solving economic, social, cultural and
humanitarian problems.
"" To promote human rights and fundamental freedom of the people of the world.
"" To ensure international laws, treaties and obligations are respected, honoured and
implemented.
"" To prevent the world from next destructive war like World War I and World War II.
Organs of the UNO
There are 6 main organs of the UNO. They are:
"" General Assembly
"" Security Council
"" International Court of Justice
"" Secretariat
"" Trusteeship Council
"" Economic and Social Council
1. The General Assembly
Articles 9-33 of the UN Charter have made
the provision of the General Assembly. Each
member nation sends five delegates to take
part in the General Assembly. A Chairperson
and 17 Vice-Chairpersons are elected for a
session of the General Assembly.
The General Assembly is the legislative organ General Assembly
of the UNO. All member nations of the UNO
Social Studies Book 10 383
are the equal members of General Assembly. The members of General Assembly meet at least
once a year in September to December and discuss important world issues. Each member
nation can put forward their opinion in the meeting equally according to the UN Charter.
Decisions are made by majority vote. Each member country has one vote. The member
countries elect a President yearly to chair the General Assembly. All member states can engage
diplomatically, with their foreign counterparts to discuss questions of international peace and
security, general principles of cooperation and make recommendations within the scope of
the Charter for peaceful resolution of dispute.
Functions of the General Assembly
"" It discusses any matter affecting international peace and security.
"" It makes recommendations for peaceful settlements of disputes.
"" It passes the budget of the UN activities.
"" It elects the temporary members of the Security Council and elects the members of
the Economic and Social Council and the Trusteeship Council.
"" It admits new members to the UN on the recommendation of the Security Council.
"" It appoints Secretary General on the recommendation of the Security Council.
2. Security Council
Articles 23-50 of the UN Charter have
made the provision of the Security
Council. The Security Council is the
most important and effective organ of
the UNO. It is the executive body of the
UNO. The Security Council consists of
15 members. Five of them are permanent
members, namely Britain, China, France,
Russia and the USA. The ten temporary
members are elected by the General
Assembly for a term of two years on Security Council
regional basis like 6 members from Afro-
Asia, 2 from Latin America, 1 from East Europe and 2 from other countries. Each member
has one vote. Decisions are taken by the majority vote of at least nine members including the
five permanent members. Each permanent member can exercise a veto power. The Veto is a
special power given to the five permanent members of the Security Council that can reject
the decision made by majority. This organ has the basic responsibility of maintaining peace
and security in the world. The Security Council meets once a month but in the event of an
emergency, a meeting may be held whenever required.
384 Social Studies Book 10
Functions of the Security Council
"" To maintain international peace and security in the world.
"" To investigate international disputes and recommend appropriate methods of
settling them.
"" To recommend the admission of new members.
"" To recommend to the General Assembly for the appointment of the Secretary General.
"" To elect the Judges of the International Court of Justice.
"" To take military action against the aggressor, if required.
3. Economic and Social Council
Articles 61-72 of the UN Charter have made the provision
of the Economic and Social Council. The Economic and
Social Council is the central body for coordinating the
economic and social work of the United Nations and the
UN agencies. It has 54 member nations elected from the
General Assembly for the period of 3 years. The term of the
office of the one-third members is over every year, so that
number of members is elected every year on regional basis
like 11 from Asia, 14 from Africa, 10 from Latin America,
6 from East Europe, 2 from west Europe and 13 from other
nations. The Council recommends and directs activities aimed at promoting economic
growth of developing countries, supporting human rights and fostering world cooperation to
fight poverty and under-development.
To meet specific needs, the General Assembly has set up a number of specialized agencies, such
as the Food and Agriculture Organization (FAO), the World Health Organization (WHO)
and the UN Educational, Scientific and Cultural Organization (UNESCO) and programmes
such as the UN Development Programme (UNDP), the UN Children’s Fund (UNICEF)
and the Office of the UN High Commissioner for Refugees (UNHCR). The work of these
agencies and programmes is coordinated by the economic and social council.
Functions of Economic and Social Council
"" To promote economic and social progress.
"" To solve problems relating to health, illiteracy, unemployment, etc.
"" To coordinate the functions of the agencies of the UN like the International
Monetary Fund (IMF), the International Labour Organization (ILO), the Food
and Agricultural Organization (FAO), the World Health Organization (WHO), the
United Nations Educational, Scientific and Cultural Organization (UNESCO), the
United Nations International Children’s Fund (UNICEF), etc.
Social Studies Book 10 385
"" To make recommendations for the protection and promotion of human rights.
"" To organize international conferences related to different sectors.
"" To fulfill the responsibilities as assigned by the General Assembly.
4. Trusteeship Council
Articles 23-50 of the UN Charter have made the provision of the Trusteeship Council. This
organ was established to administer the trust territories and decolonized countries after the
First and Second World Wars. Hence, this council is quite inactive. Five permanent members
of the Security Council are the members of the Trusteeship Council.
Function of the Trusteeship Council
It helps the countries that have just got independence or have become free from colonization.
Its main objective is to help them set up needy mechanism to govern their territories
themselves.
5. International Court of Justice International Court of Justics
Articles 92-96 of the UN Charter have made
the provision of the International Court of
Justice. It is the judicial organ of the UNO.
There are 15 judges in this court. They are
elected from the General Assembly on the
recommendation of the Security Council.
Five of the judges are elected from five
permanent member nations of the Security
Council and other ten are elected representing
all continents. More than one judge is not
elected from the same country for the same
term. A Chief Judge is elected among them.
Its headquarters is in the Peace Palace of
Hague, the Netherlands.
Functions of International Court of Justice
a. To settle disputes brought to it by member nations.
b. To provide legal advice to any organ of the UN on request.
c. To settle legal disputes on human rights, boundary, etc. submitted to it by the
member states.
386 Social Studies Book 10
6. Secretariat
Articles 97-101 of the UN Charter have made
the provision of the Secretariat. The Secretariat is
made up of an international staff working at UN
Headquarters in New York, as well as UN offices
in Geneva, Vienna, Nairobi and other locations.
It is the administrative organ of the UNO. It is
headed by the Secretary General, who is elected by
the General Assembly on the recommendation of
the Security Council for 5 years term. A Secretary
General is supported by other staff, experts and
technicians. The present Secretary General of the Antonio Guterres
UNO is Antonio Guterres. He is the former Prime Minister of Portugal. The term of his office
began from January 1, 2017 and will hold the post for five years.
Functions of the Secretariat
"" To negotiate dialogue during international disputes.
"" To prepare agenda to be discussed in the General Assembly.
"" To conduct programmes to help maintain peace.
"" To hold international conferences on the issues of global importance.
"" To provide information, assistance and facilities needed by the UN bodies for their
meetings.
"" To keep records of UN activities.
Points to Remember:
"" The UNO was established on 24 Oct. 1945.
"" It has 193 member countries.
"" Its main objective is to maintain international peace and security.
"" The main organs of the UNO are General Assembly, Security Council, International
Court of Justice, Secretariat, Trusteeship Council and Economic and Social Council.
"" Permanent members can exercise ‘Veto Power’, a special power to reject any proposal.
"" The UNO has many agencies to work for the human welfare in the world.
Social Studies Book 10 387
Word Meaning
• Advisory : counseling, advising
• Charter : agreement,
• Codification : classification, arrangement
• Aggressor : invader, antagonist
• Deliberative : calculated, thoughtful
• Obligation : binding
• Recommendation : reference, proposal
Activities
1. Very short answer questions
a. What is the Atlantic Charter?
b. When was the UNO established?
c. What is the ‘Veto Power’?
d. Who is the present Secretary General of the UNO?
e. If you were the Secretary General of the UNO, what would you plan for the world
peace and prosperity? Present your plan in two points.
3. Short answer questions
a. Why was the UNO established? Has it been successful to achieve its target goal?
Discuss.
b. Prepare a news article about the functions of the General Assembly.
c. Construct a dialogue between students showing the role of the UNO is even
more important on the days ahead.
d. Critically evaluate the activities of the UNO.
e. List the organs of the UNO and write one major function for each.
f. How is the Security Council formed? What are its powers and functions?
g. Five permanent members of the UNO can exercise veto power. As a result, these
countries have become most powerful. Is it good to give such special power to the
five countries only? Discuss.
h. Discuss the role played by the UNO to maintain world peace.
i. If you got chance to meet the Secretary General of the UNO, what questions
would you ask him/her about the growing challenges of the world? Make a list of
any four questions.
j. Identify the following logos.
388 Social Studies Book 10
Lesson 2 Specialized Agencies of
the UNO
The United Nations Organization has established a number of specialized agencies for socio-
economic development of the world. They are autonomous organizations of the UNO. They
work under the Economic and Social Council of the UNO.
The brief description of each of them is given below.
1. Food and Agriculture Organization (FAO)
It was founded on the initiative of 44 countries that had fought Nazi
Germany. In May 1943, they came to Hot Springs (USA) to take part
in an agriculture and food conference. The conference established
a committee whose goal was to draft a founding act of FAO. It was
established on 16 October 1945. It became the specialized agency of the
UNO in 1946. FAO is involved in the fight against poverty and hunger
through agricultural development and improvement of nutrition standards. The Organization
also creates special programmes in case of famine. Its headquarters is in Rome of Italy.
2. United Nations Educational, Scientific and Cultural Organization
It was established on November 4, 1946. It became the specialized
agency of the UNO on December 14, 1947. Nepal took its membership
in 1966 A.D. It was established with the aim of promoting sustainable
development, working in the field of human development, conserving
the natural and cultural heritages and supporting the nations in the
world for their educational, scientific and cultural development. Its
central office is in Paris, France.
3. World Health Organization (WHO)
It was established on 7 April 1948. Its priority is to fight against the most
serious health problems, especially among the populations of developing
countries. It sets directions for health care development and cooperates
with governments on drafting national health care plans. It also participates
in the development of new technologies and disseminates information
regarding health protection. Nepal became its member in 1966 A.D. Its
central office is in Geneva of Switzerland.
Social Studies Book 10 389
4. International Bank for Reconstruction and Development (IBRD)
It was established on 27 December 1945 with
the mission of financing the reconstruction of
European nations devastated by World War
II. A country should compulsorily have the
membership of International financial institution
in order to get its membership. The Bank offers a number of financial services and products,
including flexible loans, grants, risk guarantees, financial derivatives and catastrophic risk
financing. Nepal became its member in 1961. Its head office is in Washington D.C of the USA.
5. International Organization Development Association (IODA)
It was established on 24 December, 1960. It provides loan to
economically backward countries at very low interest. It encourages
for sustainable economic growth and development in those
countries. Nepal became its member in 1963 A.D. Its head office is
in Washington D.C of the USA.
6. International Monetary Fund (IMF)
It was established on 27 December 1945. It fosters economic growth
and employment by providing temporary financial and technical
assistance to the countries. IMF helps member countries to improve
their monetary conditions. It works to bring about monetary
cooperation among the member countries to maintain economic
stability. Its head office is in Washington D.C of the USA.
7. International Civil Aviation Organization (ICAO)
This organization was established on 4 April 1947. The ICAO is
an independent and autonomous international organization. It
works coordinating with the UN through a special agreement. It
sets international standards for safety, efficiency and regularity
of air traffic and promotes the planning and development of air
transport. Today, the ICAO has 36 member states and is based in
Montreal of Canada.
8. International Telecommunication Union (ITU)
It became the specialized agency of the UNO in 1947 A.D. Its
main objective is to standardize and regulate international radio
and telecommunications. It also provides radio spectrum to allow
international phone calls and technical supports to telecommunication
and radio services.
390 Social Studies Book 10
9. World Meteorological Organization (WMO)
It was established on March 23, 1950. It makes weather forecasts,
exchanges the information about weather and enhances the activities
about climate. Nepal became a member of this organization in 1966
A.D. Its central office is in Geneva of Switzerland.
10. World Intellectual Property Organization (WIPO)
It was founded on 26 April 1970. Its constitutional objective is to
promote the creation, dissemination, use and protection of works of
the human mind that benefit economic, cultural and social
development. The Organization also fosters cooperation between
two unions set up to protect the intellectual property: the Paris union
(that deals with industrial property rights) and the Berne union (that
deals with literary and artistic works). WIPO ensures the observance
of international agreements with a view to preventing copyright
violations. Its central office is in Geneva of Switzerland.
11. United Nations Industrial Development
Organization (UNIDO)
It was established in 1966 A.D. It promotes industrial development
and encourages industrialization in developing countries. Its central
office is in Vienna of Austria.
12. International Atomic Energy Agency (IAEA)
It was established in 1957 A.D. The purpose of the International
Atomic Energy Agency (IAEA) is to promote and accelerate the
contribution atomic energy makes to peace, health and prosperity
throughout the world. Furthermore, its main aim is to prevent the
world from using atomic weapons and military force. It also provides
technical support to developing countries. Its central office is in
Vienna of Austria.
13. United Nations Development Programme (UNDP)
It was established on November 22, 1966. It has been supporting UN
developing countries to struggle against poverty since its establishment. DP
Much of this support has gone to building up the capacity of
government agencies, civil society and community groups to fight
poverty. It advocates for change and connects countries to knowledge
and experience. Its central office is in New York.
Social Studies Book 10 391
14. United Nations International Children’s Emergency Fund
(UNICEF)
It was established on December 1, 1946. It provides humanitarian and
developmental assistance to children and mothers in developing
countries. It also conducts programmes on nutrition, primary health
care, vaccination, education, etc. in developing countries. Its central
office is in New York.
15. World Trade Organization (WTO)
It was established on January 1, 1995. It works to make the policies
related to international trade more transparent. The goal of this
organization is to help producers of goods and services, exporters,
and importers conduct their business. Moreover, it aims to increase
trade, investment, employment and income. Altogether 153
nations of the world have taken its membership. Its central office is
in Geneva of Switzerland.
UN support to the poor nations
The UNO is the umbrella organization of the nations in the world. It aims to prevent the world
from destructive war and promote human rights condition in the world. Moreover, it keeps the
overall progress and prosperity of member nations at center. It implements several programmes
for the development of all countries through its agencies. It mainly focuses on the reduction of
poverty, raising socio-economic condition, abolishment of social problems and evils, agricultural
developments, protection of the rights of women, children and indigenous nationalities, etc.
Similarly, it launches several programmes in the favor of hungry and homeless people. The UN
activities in the field of environmental conservation, combating AIDS, drugs, crimes, human
rights and social justice are not negligible. The UN agencies help needy nations by providing
financial support too. They also conduct vaccination programmes and other programmes on
nutrition, primary health care and education.
Word Meaning
• Reconstruction : rebuilding or renovation
• Flexible : soft
• Spectrum : band
• Copyright : the right of the artists
392 Social Studies Book 10
Activities
1. Very short answer questions
a. When was International Monetary Fund established?
b. What does the UNESCO do?
c. Where is the head office of International Civil Aviation Organization?
d. What is the main work of the World Intellectual Property Organization?
e. What is the full form of UNICEF?
2. Short answer questions
a. Complete the following table.
Name of the Specialized Date of Work
Agencies establishment
1. FAO
2. WHO
3. IBRD
4. IODA
5. IDV
6. UNDP
b. What does UNICEF do for the promotion of child rights?
c. Make a list of any four UN agencies working in Nepal along with a work done by
them.
d. Are the specialized agencies working effectively? What should be done to make
their work more effective? Make a list of suggestions.
e. Among the specialized agencies of the UNO, which one do you think is the most
important? Why? Give reasons.
f. The role of International Atomic Energy Agency is even more increasing in the
present world. Justify with appropriate reasons.
g. How are the poor nations in the world benefitted from the UNO? Explain.
Social Studies Book 10 393
3Lesson Roles of Nepal in the UNO
The UNO is the worldwide organization. It has been the umbrella organization of all the
countries of the world. Altogether 193 nations of the world have taken the membership of the
UNO. Nepal first attempted to get the membership of the UNO through Nepalese Embassy
in Britain in 1947 A.D. Nepal applied for the membership in 1948 A.D and became a member
on 14 December 1955. Since then, Nepal has been playing active role in supporting the UN
activities both at home and abroad.
Nepal has been participating in the UN peace keeping operations since 1958. It has
contributed so far more than 100,000 Nepali troops and a few thousands of police and armed
police in these peace operations. There has always been a high demand and appreciation of
our troops. Nepal is one of the major troops contributing countries among the member
nations of the UNO. It is the result of our successful foreign policy and professionalism of our
troops. There are about 3,500 troops deployed under the UN flag at present.
Nepal was elected the temporary member of
the UN Security Council twice: 1969-70 A.D.
and 1988-89 A.D. Similarly, Gyan Chandra
Acharya from Nepal has been appointed Under
Secretary General and High Representative for
the Least Developed Countries, Landlocked
Developing Countries and Small Island
Developing States. The UN Convention on
Transit Trade of Landlocked States on July 8, 1965 Gyan Chandra Acharya
has made some provisions in favour of the target
countries. It addresses the international rules allowing for landlocked countries to transport
goods to and from seaports. The convention imposes obligations on both landlocked states
and on costal states that approve the treaty. It clearly states that the transit states will not
discriminate based on place of origin or destination of the goods being transported. It means
landlocked states can enjoy freedom of transit through the territory of transit states by all
means of transport. Nepal played a crucial role to approve this policy from the UNO for the
benefit of land-locked nations.
Nepal was elected Vice-Chairman of the UNO for nine times in 1958 AD, 1968AD, 1970AD,
1974AD, 1975AD, 1983AD, 1984,AD. 1988AD. and 2001AD. It has worked as a responsible
member of the UNO. It also has the experience of working as a member of the Social and
Economic Council and UNESCO.
394 Social Studies Book 10
Nepal is a peace loving country. It has always wanted to maintain friendly relation with both
the neighboring and friendly countries around the world. It is also an active member of the
Non-aligned Movement. It pursues the policy of non-alignment. It doesn’t take the side of
any powers on any issues. It takes its own independent course on critical foreign issues. It
freely raises voice against any injustice and exploitation taking place anywhere. It openly gave
opinion against the attack of Soviet Army in Hungary. It was the co-coordinator organization
formed to raise voice against the racial discrimination of Britain in South Africa. Similarly, it
raised voice against Israel’s attack in Arab.
Nepal has contributed its troops to the UNO for the first time in Lebanon in 1958. Since
then, Nepal has been contributing its troops regularly. At present, Nepalese armies, armed
police and police are deployed in several UN missions: Lebanon, Haiti, Congo, Sudan, Ivory
Coast, Israel, etc. So far, more than 100,000 Nepali soldiers have contributed in such peace
keeping operations.
Nepal is playing an active role in disarmament in the world. It is always in favour of elimination
of imperialism and the end of colonization. Nepal has stood for the rights of landlocked
countries. The UNO has been celebrating Buddha Jayanti as the World Peace Day. This has
helped Nepal raise its glory in the international community. Moreover, Nepal is a founding
member of the South Asian Association for Regional Co-operation (SAARC). It has taken
the membership of many other international organizations and UN specialized agencies.
Through these organizations, Nepal has been contributing to the world peace, security and
development.
Games and sports help to cultivate the feeling of team spirit and friendly relation. They are
played for peace, harmony and mutual relation. Nepal has also been taking active parts in
sports and games organized in both international and regional level.
Nepal’s Role for World Peace
Nepal is a peace loving country. It is one of the
most responsible members of the UNO. It has
been playing an active role in the UNO to maintain
world peace and security. The main contributions
of Nepal in this regard are given below.
"" Nepal is a member of Non-aligned UN Army from Nepal
movement. It keeps all countries of the
world all equi-distance. It does not ally
with any hostile groups during war. It
keeps good relation with all countries.
"" Nepal has signed the resolutions, treaties, declarations and commitments of the
UNO and its specialized agencies and has implemented them in the country.
Social Studies Book 10 395
"" Nepal sends Nepal Army, Armed Police Force and Nepal Police to take part in peace
keeping force in the conflict affected parts of the world in the request of the Security
Council of the UNO.
"" Nepal actively participates on different regional and international sports
tournaments.
"" Nepal plays important role in solving international disputes as the temporary
member of the UNO. It is always in favor of disarmament and against imperialism
and colonization.
Why to take part in Peace Keeping Force?
Nepal advocates peace and harmony in the world. It raises voice in favour of world peace and
cooperation in international forums. It has been working as one of the active members of the
UNO to maintain peace in the world. Nepal has been participating in the UN peace keeping
operations since 1958. It is really an opportunity for Nepal and Nepalese to offer service in
humanitarian field. Moreover, it helps to prove Nepal’s active participation and commitment
to world’s peace and security. Similarly, Nepalese force get opportunity to exhibit their
knowledge, skill and bravery and keep the glorious past alive. Taking part in peace keeping
force, they can learn about international skills and technology. It is the best way to enhance
mutual relationship and co-operation with other countries.
Points to Remember:
"" The UNO is the umbrella organization of all the countries of the world.
"" Nepal became a member of the UNO on 14 December 1955.
"" Nepal has been participating in the UN peace keeping operations since 1958.
"" Gyanchandra Acharya from Nepal has been appointed Under Secretary General
of the UNO.
"" The UN Convention on Transit Trade of Landlocked States on July 8, 1965 has
made some provisions in favour of the target countries.
"" Landlocked states can enjoy freedom of transit through the territory of transit
states by all means of transport.
"" Nepal contributed its troops for the first time in Lebanon in 1958.
"" The UNO is celebrating Buddha Jayanti as the World Peace Day
396 Social Studies Book 10
Word Meaning
• Worldwide : international
• Endeavored : made efforts
• Transit : passage
• Pursued : followed
• Elimination : removal
• Disarmament : act of reducing, limiting, or abolishing weapons
• Ally : friend, partner
Activities
1. Very short answer questions.
a. When did Nepal get the membership of the UNO?
b. Where did Nepal Army serve in the UN Peace Keeping Force for the first time?
c. Name the countries where Nepal Army and Nepal Police have worked in Peace
Keeping Force.
d. When was Nepal elected temporary member of the security council of the UNO?
e. Who is the Under Secretary General of the UNO from Nepal?
f. What is Peace Keeping Force?
3. Short answer questions
a. Are you in fovour of Nepal’s decision to send her troops for peace keeping
missions? Give reasons to support your answer.
b. What do you know about the support of UN in the peace process of Nepal?
Collect information and prepare an article.
c. Visit a person who has recently come back to Nepal taking part in UN Peace
Keeping Force. Then make a list of works to be done by Peace Keeping Force.
d. Discuss the role played by Nepal in the UN activities.
e. Present your opinion about the role of the UNO for the rights of the landlocked
countries.
f. Make a list of the contributions made by our country to maintain peace and
harmony in the world.
Social Studies Book 10 397
Lesson 4 Activities of the UNO in
Nepal
Nepal is one of the active members of the UNO. The UNO too has been contributing for
the development of Nepal. Its role in Nepal is invaluable in the field of social, economic and
infra-structural development. Moreover, it has supported us in maintaining sustainable peace.
Similarly, it is working for good governance through its various agencies.
Some UN agencies working in Nepal along with their priority sectors are given below.
1. United Nations International Children's Emergency Fund (UNICEF)
UNICEF initiated co-operation with Nepal in 1964.
Today, UNICEF/Nepal's country programme is one of
the 18 largest UNICEF programmes in the world. The
programme seeks to advance the respect, protection and
fulfillment of the human rights of children and women
in Nepal. In line with government of Nepal’s policy on
decentralization, the country programme's primary
strategy is to build family and community capacities to
access, analyses and plan their own actions to address
UNICEF
the principle problems faced by children and women.
The Decentralized Action for Children and Women (DACAW) programme provides the
basic framework for the implementation of programmes addressing nutrition and child
care, health, environment, education, child protection and HIV/AIDS in focus districts. In
addition, UNICEF supports the implementation of programmes such as immunization and
micro nutrients (Vitamin A supplementation, control of iodine deficiency diseases and iron
deficiency anaemia) in all 75 districts.
2. International Fund for Agriculture Development
Nepal became a member of the IFAD in 1978 and was
among the first countries to benefit from the Fund. The
main strategic thrusts of the IFAD financed projects
in Nepal are poverty alleviation and improvement of
household food and income security of the rural poor
especially the rural women, the landless, the indigenous
groups and small and marginal farmers from the
IFAD
disadvantaged areas of the country. Integrated Rural
Development Project (in Sagarmatha), effective from November 1979 with a loan amount of
398 Social Studies Book 10
US $ 11.5 million was the starting point of economic co-operation between Nepal and IFAD.
Since then, IFAD has financed altogether 15 projects of which 10 projects are completed and
5 projects are in ongoing phase. Since 1978, IFAD has provided a total of US$ 115.0 million
in loans for 12 projects and has also provided technical assistance.
3. International Labour Organization ILO
The International Labour Organization (ILO) is a
United Nations agency. Its Headquarters is in Geneva,
Switzerland. It was established on 11 April 1919. Initially
it was an agency of the League of Nations. It became a
part of the UNO system once the League was dissolved
and the UNO formed. 185 of the 193 UN member states
are members of the ILO.
Functions:
a. Time Bound Programme (TBP) on the elimination of the worst forms of child labour
b. Capacity building of employers' organizations in productivity and competitiveness
c. Sustainable elimination of bonded labour in Nepal
d. Combating child trafficking for labour and sexual exploitation
e. Extending social protection to workers in the informal economy
f. Community action for the elimination of child (bonded) labour from
exploitative and hazardous work
4. United Nations Programme for HIV/AIDS UNAIDS
In Nepal, UNAIDS works as a member of the UN
Country Team. It works with government and external
and internal development partners, to drive the
development and implementation of policies, strategies
and plans for an effective and efficient HIV response. A
key outcome of UNAIDS’ provision and mobilization of
strategic technical assistance has been the development
and implementation of the “Nepal HIV Investment
Plan.” Nepal HIV investment plan contributes to the
effectiveness and efficiency of national HIV response. Its
aim is to save the lives of HIV victims and keep people
healthy.
Social Studies Book 10 399
5. United Nations Population Fund
UNFPA began its work in Nepal in 1971. UNFPA works
closely with the Government of Nepal’s line ministries
and UN agencies to contribute to peace-building and
national development goals. UNFPA support has been
significant in planning and conducting the national
census; delivering reproductive health services in remote
districts; promoting sexual and reproductive health UNFPA
education for youth; and paying particular attention to
the special needs of women and young people during humanitarian assistance operations.
6. United Nations Capital Development Fund
This organization helps for local development through decentralization,
participatory approach and natural resource management and
promotion. It supports for the capacity building of local bodies. It also
helps to carry out the quality and standard service in local level.
7. United Nations Human Settlement Programme UNCDF
The United Nations Human Settlements Programme (UN- UN-HABITAT
Habitat), established in 1978, is the lead agency within the
UN system for coordinating activities in the field of human
settlement development. UN-Habitat is working with its
aim to improve the lives of slum dwellers by the year 2020.
UN-HABITAT is working in Nepal to promote sustainable
urbanization. It mainly focusses on: advocacy monitoring and
partnership, participatory urban planning management and
governance, pro poor land and housing, Environmentally sound
basic urban infrastructure and services and strengthen human settlements.
8. United Nations Volunteers Programme
The UNV programme in Nepal began in 1974. To date, hundreds of international and national
UN Volunteers have served in Nepal in different sectors. Its main aim is to promote peace and
nature of development through volunteerism.
9. UN Women
UN Women was established in Nepal in 2012 A.D. UN Women, the
UN Entity for Gender Equality and the Empowerment of Women is
operational from 1st January 2011. The UN Women was created by the
United Nations General Assembly on 2 July 2010 to accelerate progress
in meeting the needs of women and girls worldwide. This organization UN Women
works to help the country insure gender equality. Moreover, it keeps the improvement of
maternal health and women empowerment at center.
400 Social Studies Book 10
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