Science

are leaving the country every day for foreign destinantions in search of employment. These
youths can be retained in the country if the medium and large-scale industries are set up in
Nepal in different zones of the country. According to the industry-related data published
by the ‘Department of Industry’, a total of 112 large-scale industries were set up in Nepal
in 2069/070 BS. A total of 12,743 people got employment in these industries. Similarly, a
total of 99 medium-scale industries were set up in the same year and these industries had
provided employment to as many as 6,379 people. These data clearly prove that setting up
medium and large-scale industries helps reduce poverty by providing employment to the
people.

3. Improving Life-standard of the People: As rate of employment goes up with establishment
of medium and large-scale industries, it hikes the personal income of the people. People in
general acquire more purchasing power than ever before. They place more demands in the
market to buy various goods and services which they require to enhance their life. Quite
naturally, the standard of life of the people goes up. To meet sudden demands, industries
step up their productions to come out with more supply. Market gets filled with various
kinds of goods and services thereby lowering the overall price-level. Common people in
such a market condition can buy more goods and services at cheaper prices.

4. Extending Help in Agricultural Development: Modernization of agriculture is not at all
possible without latest tools, technologies and use of light and heavy machines. These
tools and technologies which help in modernizing the agriculture are manufactured by
industries. There are other chemical-related products manufactured in medium and large-
scale industries such as chemical fertilizers, pesticides and insecticides which are often
used by farmers in agriculture to protect the crops and plants for higher yield per hectare.
Development of alternative irrigation facilities is not possible without manufacturing
of accessories and allied equipment and tools needed for irrigation. Extra pressure of
labour-force on agriculture gets diverted towards industries if the medium and large-scale
industries are set up in the country. In this way, these industries enhance the agricultural
productivity by absorbing extra labour being engaged in agriculture in form of “disguised
unemployment”.

5. Increasing Export by Decreasing Import: Nepal is caught in a vicious cycle of trade deficit.
The best way to pull the country out of the clutches of trade deficit is to establish medium
and large-scale industries in order to manufacture producs which were imported within
the country. Not only this, these manufactured products must match with the international
quality so that the products are exported to other countries too. Thus, Nepal will have
more foreign-exchange reserve as exports will substitute import.

6. Rise in National Income: Setting up more number of medium and large-scale industries
gives momentum to process of industrialization within the country. And industrialization
in turn increases the level and scale of economic activities in the domestic economy. More
jobs are available in the industries with more capital formation leading to more intense rate
of industrialization. Thus, a chain reaction starts in the market where wealth-formation
(capital-formation) begins to take place. Average standared of life of the people goes up
with higher level of consumption. Industries too benefit from this situation by producing
more, supplying more and then selling more. Overall, it is always good for the nation
when national income jumps up to touch higher targets.

345<< Nova Social Studies Grade-9

Problems Faced by Medium and Large-scale Industries and their Remedies
(Ways to Solve the Problems)

Efforts towards industrializing Nepal have been made but the expected success has not been
achieved yet. Government of Nepal has brought the Industrial Policy, 2067 BS in order to support
and encourage entrepreneurs, labourers (workers), traders, managers, etc. Problems being faced
by medium and large-scale industries in Nepal along with their suggested remedies are given
below:

Problems Remedies (Steps to remove Problems)
1. Lack of Capital Investment:
Sufficient capital is required for * Establishing the “financial institutions” to provide
buying tools and equipment, raw- loans and credits, making easy ways for providing
materials,workers, building, storage loans to entrepreneurs, promoting foreign investment,
house, etc. increasing savings, encouraging indigenous capital
2. Lack of Raw-Materials investment
* Increasing the production of food and cash crops
3. Problem of Market * Utilizing other naturally available resources
* Making suitable arrangement for importing raw-
4. Lack of proper facilities in areas of materials from foreign countries in case of need
Transportation and Communication * Searching for market, increasing the quality of
5. Problems in Energy-supply manufactured products, enhancing the purchasing
(buying) capacity of common people
6. Lack of Entrepreneurs and Skilled * Going for rapid development in areas of
Labour-force transportation and communication
7. Lack of Basic Industries
*Increasing the production of hydro-electricity,
8. Strict No to Strike, Closure and finding out other alternative sources of energy such
Protest as petroleum, solar-power, wind-power, bio-fuels,
thermal-power, etc.
9. Politics of Indecision and * Training and grooming skilled entrepreneurs,
Uncertainity Encouraging the spread of technology-related
10. Frequent change in Industrial education and skill-training programs
Policy & Impractical Tax Policy
* Going for setting up those industries which support
in infrastructure-building in the country such as iron-
steel, cement, etc.
* Developing cordial relationship between
entrepreneurs-industrialists and labourers-workers,
creating the appropriate work-culture
* Ensuring industrial security
* Ending political instability and bringing certainty in
policy implementation

* Making strong (concrete) industrial policy and
implementing it effectively
* Avoiding any change in the Industrial Policy or
scrapping it even after the change in Government
* Adhering to clear Tax Policy

346 Nova Social Studies Grade-9 >>

Prospects (Possibilities) For Medium and Large-scale Industries in Nepal:

Nepal has still been waiting for industrial revolution. Nepal is desperately looking for vigorous
pace of industrialization in order to become self-reliant and self-sufficicient in its economy.
Industrialization of this scale will spur the growth of agriculture and other service sectors.
Educational sector will see the new height to touch as many institutions imparting knowledge
and skills of engineering and technology will come up to feed the industries with skilled labour-
force. Domestic economy will absorb the upcoming work-force with ease. And, this will reverse
the trend of migration into retaining the labour-force within the country rather than exporting the
labour-force to outside world. Many numbers of youths will prefer to stay back in the country and
contribute to the nation as entrepreneur or industrial worker or manager or in capacity of expert-
service provider or by becoming expert-consultant and so on. This reverse trend of migration will
boost the pace of industrialization by manyfold because industrialists will no longer feel anxious
about arranging for labour (workers). Industrialists in Nepal will begin to employ workers from
the neighbouring countries to work in their industries. There is a great prospect of such scenario
in Nepal where whole economy will take a new look and the market will be heading towards full
employment instead of facing chronic unemployment as is the case in present-day Nepal. Our
natural resources such as mineral ores, forest products, river-water and agricultural products are
waiting to be turned into raw-materials for manufacturing different types of readymade products.

Words and terms you would like to know

Beverage (n.): a drink other than water
Step up (v.): to raise or increase something in stages
Accessory (n.): an optional part that may be fitted to something to perform an additional function or
enhance performance
Vicious Cycle (n.): a situation in which attempts to solve one problem lead to further problems that only
make the original position worse
Scrap (v.): to get rid of something; to discard or discontinue something because it is considered useless
or ineffective
Spur (v.): to encourage a person or organization to try harder
Manyfold (adv.): multiple times
Head towards (v.): to move or go in a particular direction

Activities

Get your class divided into two groups. Assign one group with the task of doing research on the
medium-scale industries, its status in Nepal, a range of problems being faced by them and suggested
remedies to these problems. Similarly, ask another group to do research on the large-scale industries
on the same lines as mentioned before. Arrange the presentation to be given by both the groups in the
class.

Exercise

1. How does the existing Act (Law) in Nepal define the ‘Medium and Large-scale Industry’?
2. List the importance of ‘Medium and Large-scale Industries’.
3. Highlight the reasons (causes) for poor development of the ‘Medium and Large-scale Industries’

in Nepal.
4. Highlight the remedial measures to remove the problems being faced by the ‘Medium and Large-

scale Industries’.

347<< Nova Social Studies Grade-9

5. Explain if there is a prospect for the growth of ‘Medium and Large-scale Industries’ in Nepal. If
yes, illustrate how the growth of such industries is possible.

6. List the areas in which strong possibilities lie ahead to establish ‘Medium and Large Scale
Industries’ in Nepal. State the reasons for your choice.

Community Work

Make a list of all the Medium and Large-scale Industries operating in your community. Visit any one
of them and seek answers to following questions:
a) What is the name of the industry?
b) Name the product that is manufactured there.
c) How and from where does this industry get the raw materials?
d) In what quantity does it manufacture the product?
e) What is the level of demand of the manufactured products in the market?
f) How many people are employed there?
g) What are the problems and challenges being faced by this industry?

348 Nova Social Studies Grade-9 >>

Lesson

6 Trade

Introduction

As it is generally understood, trade is the act of buying goods and services. Trade transfers the
ownership of goods and services from one person to another in exchange for money. A network
that makes trade possible is called a market. Trade brings movement to the produced goods and
services through the activity of ‘sale and purchase’ either within the country or outside. Trade is
divided into two types on the basis of point of sale (from where the produced goods and services
are sold to the other person or entity): Domestic Trade and Foreign Trade.

Domestic Trade

Domestic trade is also known as internal or home trade. This trade takes place within the
geographical boundary of a country. Domestic trade is of two types: wholesale and retail. In
wholesale trade, a trader buys goods directly from manufacturers or dealers or producers in
large quantities and sells them in smaller quantities to either retailers or final consumers. When
goods are sold in small quantities to consumers, it is called retail trade.
Goods and services produced in different parts of a country reach different areas for consumption
from one place to another through domestic trade. This kind of movement of goods and services
brought about by trade is known as distribution. Distribution is one of the most important
segments of economy along with production and consumption. Goods produced in Himal and
Hilly region travel to Tarai region of Nepal for consumption. Similarly, goods and services
produced in the Tarai region reach Hilly and Himal regions of Nepal. The ultimate purpose of
this distribution of goods and services is to satisfy the demands (wants/necessities) of people
residing in different destinations. Thus, domestic trade creats a network (market) in which the
movement (distribution) of goods and services takes place from one district to another district,
from one village to another village and from one town to another town covering all the three
ecological regions of Nepal.

Foreign Trade

Foreign trade is all about the movement of goods and services through sale and purchase from one
country to another country. Selling of goods and services to another country is known as export
and buying the goods and services from another country is known as import. Thus, both export
and import put together constitutes the foreign trade. Foreign trade is also known as international

349<< Nova Social Studies Grade-9

or external trade. Nepal exports the products like tea, leather items, carpet, and medicinal herbs
to other countries. This is foreign trade. On the other side, Nepal imports industrial products,
mechines, electrical appliances, tools and equipment and other such products from foreign
countries like India, China, Japan, United States, Germany and so on. This is again foreign trade.
For any country, favorable balance of trade where export exceeds import is taken as economically
healthier as foreign exchange reserve increases because export is paid in foreign currency. In
another situation, unfavorable balance of trade exists when import exceeds export resulting in
depletion of foreign exchange reserve as payment is made to another country on purchase of
goods and services from it. This unfavorable (negative) balance of trade is also known as trade
deficit. Nepal suffers huge trade deficit.

Importance of Foreign Trade

Foreign trade plays an important role in economic development of the country. Nepal’s
economic sectors such as agriculture, industry, transportation are dependent upon foreign
trade. Besides, Nepal’s economic planning and annual budget of the Government are hugely
affected by the status of foreign trade. Continuous efforts to improve upon trade deficit by
increaisng the quantity of export will help us raise our economic status to become one of the
developing countries in the world.
1. Fulfillment of Basic Essential Needs: There are many such essential products/items which

are not produced in our country or cannot be produced due to our incapacity. Such products
are imported from foreign countries to Nepal. These essential products are petroleum,
textile-cloth, salt, iron-steel, paper, medicines, edible products, etc.
2. Earning Foreign Currencies and Increse in Foreign Exchange Reserve: The goods and
services which Nepal can sell (export) to outside world will earn foreign currencies for the
country. Export of labour, tourism and selling carpets, handloom products, artifacts, etc to
outside world is the major source of earning foreign currencies for the country.
3. Creation of Employment Opportunities: Foreign trade in a country creates jobs of several
types through export and import activities. For example, Nepal imports the raw materials
or the immediate product like iron and steel to convert it into several kinds of finished
products. For doing this, human skills are required to be employed. Similarly, Nepal
imports finished products of various descriptions including daily-use consumer products.
The network of distribution centers employs sales-men, retailers, traders, mechanics,
technicians, etc to sell these imported products in different parts of Nepal. On the export
side, factories and industries employ the labor-force with a range of different skill-levels to
manufacture export-oriented goods. This opens up opportunities for skilled, semi-skilled
and unskilled workers to be employed.
4. Accelarator of Economic Growth and Development: Foreign trade brings economic
development in the country by promoting industrial growth. For industrial gowth, Nepal
requires heavy machines, latest technologies and other modern equipment. All these capital
goods required for building up industries and infrastructure come from import. Foreign trade
gives business firms and industries access to improved capital inputs such as machine, tools,
expertise to boost their productivity and compete with others within and outside the country.
Even raw-materials can be imported to convert them into finished products of international
quality and then export them to outside world. There is a huge opportunity for a country to
develop only if smart technology coupled with human skills operates in the right direction.
5. Expansion of Market and Increase in Fair Competition: Modern economy has interlinked
market connected with all the countries in the world. Closed domestic economy cannot

350 Nova Social Studies Grade-9 >>

bring prosperity and progress to a country. Market gives wealth (money) only when human
skills are rightly used in a country. Therefore, three M’s (MARKET, MONEY and MEN)
are interconnected in foreign trade. Nepal has to look for linking the three M’s to become
economically self-reliant and foreign trade gives this opportunity to us. “Whole world is the
stage (market) and we are the players (economic agents) on it.” Nepal needs to improve the
infrastructure to establish export-oriented industries to expand the market and enter into
‘play of competition’ on the world stage (global market).

6. Productive use of Human and Non-Human Resources: At present, Nepal has a lot of
potential to become rising and upcoming economy in Asia with vast reservoir of natural
resources and unharnessed human resources. Nepal has both natural as well human
resources. But, these resources are still lying underutilized. Foreign trade with facility of
global market will force Nepal into competition to perform by manufacturing world-class
goods and sell them in the global-market. Same applies in providing services of various
kinds like transportation, communication, education, health and so on. Driven by the spirit
of competitiveness, Nepal will go for best combination of utilizing available human and
natural resources.

Words and terms you would like to know

Consumption (n.): the purchase and use of goods and services by consumers
Destination (n.): the place to which somebody must go
Accelerator (n.): a system or device used to increase speed
Boost (v.): increase something

Activity

Conduct a survey in your community as to how many ‘Medium and Large-scale Industries’ are
operating. Find out the range of products they are producing with the standard of quality of
manufactured products. Prepare a set of questions to ask the owner, workers and the managers to
know about the problems they are facing and their future plan to reach out to new market. Make a
detailed analysis and present the same in the class.

Exercise

1. Define ‘Trade’. Explain two important features of ‘Trade’.
2. Define market. Differentiate between ‘Internal Trade’ and ‘External Trade’.
3. Highlight the benefits of foreign or external trade to Nepal.
4. Give suggestions what steps are to be taken in order to promote the external (foreign) trade in

Nepal.
5. What is ‘trade deficit’? What is its impact on Nepal’s economy?

Community Work

Find out if any industrialist in your community is struggling to get market for his/her products. Make
a list of those products which have not found the market or are struggling to find market. Prepare a
full description after having conducted enough research and enquiy as to what steps need to be taken
up to promote and shape up the market for these products.

351<< Nova Social Studies Grade-9

Lesson Structure of External Trade in
Nepal
7

Structure (pattern) of external trade in a country means what kinds of goods and services are being
exported and imported and in what quantity (volumes). It means that types (and quantity) of
goods (and services) our country Nepal exports to other countries in the world and the types (and
quantity) of goods (and services) imported to our country from the rest of the world. Combining
them together gives the profile of structure (pattern) of external trade in Nepal. India is Nepal’s
largest trading partner at present. More than sixty percent of Nepal’s trade is concentrated with
India, and the remaining with the rest of the world. Following is the structure (pattern) of external
trade in Nepal:
A. Export Pattern: Nepal has not yet achieved satisfactory level of industrialization within the
country. This is why Nepal is not much into the export of manufactured goods produced by
industries. Most of the exported products come from agriculture belonging to the category of
raw materials and semi-processed goods. These products (of export) are wollen carpets, cattle
feed, jute goods, readymade garments, zinc sheets, Galaicha (carpet, mat or rug), Gheeu (clarified
butter), herbs, spices, mustard, tea, wooden-craft, metal-statues, jewellry and filigree, Pashmina,
Nepali-paper, etc.

Nepali Carper or Mat Spices Clarified Butter

Ready-herbs Ready Made Garments and Apparel

352 Nova Social Studies Grade-9 >>

Nepali Paper Wooden-craft Silver Jewelry

A. Import Pattern: As Nepal has not gone through waves of industrial revolution; the base
(foundation) for manufacturing goods by industries is weak here. All the necessary products
required for daily life or otherwise are not produced within the country. We are not self-sufficient
in manufacturing sector. Therefore, we import most of the consumer goods as well as capital
goods. Prominent imported items in Nepal are petroleum products, vehicle and spare parts,
machinery and parts, MS Billet, milk-products, coal, chemical fertilizers, electric appliances,
medicines, cooking gas etc.

Petroleum Oil Cooking Gas Electrical Goods (Products)

Motor-vehicles Motor-parts Machine-parts

Agricultural Tools Chemical Fertilizer Milk-products

353<< Nova Social Studies Grade-9

Activities

1. The following data shows how Nepal's trade deficit with India has been increasing with each
passing year. Discuss it in the classroom and suggest the ways to curb this trade deficit.

Fiscal Year (in AD) Trade Deficit (In billion Rs.)

2012/2013 346.16

2013/2014 422.89

2014/2015 444.19

2014/2016 447.7

Source: Trade and Export Promotion Center (TEPC)

I. Draw a bar-diagram to depict the above data.

II. According to TEPC, nearly 57 percent of Nepal's total imports in the first 10 months of 2016/17
AD came from India alone. Should we stop this trade totally? Is it the right way of dealing with
foreign trade? Is it wise for us totally ban the foreign trade with India? Explain with reasons.

2. According to data compiled by Trade and Export Promotion Center (TEPC), Nepal suffered trade
deficit of Rs. 491 billion in the first 10 months of 2016/17 which is already higher than the total
trade deficit that the country has suffered in any fiscal year.

Foreign Trade Nepalese Rupees in billion

Total Export 526.49
Total Import 35.7

Do you see any serious problem in Nepal’s economy as shown by the above data? If yes, then
name the problem and highlight its adverse effects on overall economic, social and political life of
Nepal. Also suggest solutions to solve the problem.

Exercise

1. What do you understand by external trade structure or foreign trade pattern?
2. Describe the trend of both export and import in Nepal.
3. Make a list of exported products from Nepal and imported products to Nepal.

Community Work

Visit a retail-shop in your community. Observe yourself how many products are being displayed there
under the category of exported items. Make a list of them as far as possible. After that, find out the
products which have been made in our country and list them. Then, look for those products which
have been imported to Nepal but could have been easily made in Nepal. So, you have prepared three
lists of consumer goods under three headings. Now see which list is the longest and which one is the
shortest. Discuss the list in your class to explore the possibilities of manufacturing all the consumer
items within our own country. And, motivate each other to become manufacturer in the future so that
we can substitute imported goods by our own country-made goods.

354 Nova Social Studies Grade-9 >>

Lesson

8 Diversification of Trade in Nepal

Introduction

Trade diversification means increasing or adding more places (areas/regions) and countries to do
trade in a wide range of goods and services instead of being limited to few places and countries
with a limited range of goods and services to trade. It is always economically beneficial and
desirable to diversify trade because it adds to the spped of economic development of a country. In
this way, Nepal can pump in new vigour and momentum in domestic economy by producing a
diverse range of goods and services rather than being complacent (satisfied) with the production
of limited items.
Trade diversification is the process by which a country offers a range of different products or
services, as opposed to specializing in just one or a few. Diversification is also a trade strategy
adopted by a nation to enter into a new market or industry and also creating a new product
for that new market.  A nation like Nepal with an economy that is dominantly dependent on
agriculture will fail in case of a poor growing season, while an economy with a variety of
agricultural and manufacturing sectors could more easily survive such unfavorable conditions.
This is the significance of trade diversification.
Trade diversification takes place in two ways:
A. Region or area-related diversification (with a view to enlarge the market)
B. Products-related diversification (with a view to produce more kinds of goods and services at

different levels)

Region or area-related Diversification in Trade

Manufactured goods and services produced in a country reach different nooks and corners of
that country and cross the boundary to reach out to foreign countries too for consumption. This
process of reaching out both internally within a country and externally to foreign countries crossing
the border makes up the region or area-related diverfication. To reach out to large numbers of
consumers living in far and wide regions is to widen the consumption-base for goods and services
and hence extend the market leading to diversify the trade. Nepal’s external (foreign) trade was
limited to India since ancient times. Kaji Bhim Malla, the brother of King Pratap Malla, negotiated
the trade treaty with Tibet for the first time. According to this treaty, Kathmandu was granted joint
authority with Tibet over the border towns of Kuti and Kerong. The Newari merchant community of
Kathmandu valley was allowed to establish 32 trading houses at Lhasa. Tibet further agreed not to
impose any charges or customs duties on Newari merchants who were engaged in trade with Tibet.
These measures and provisions helped Nepal a lot towards gaining new market and thus helped in
trade diversification. Nepal and Tibet became trading partners to each other. Nepal in those days
imported sheep, Himalaya mountain goats (called Chyangra), gold, wool, salt, etc from Tibet and
used to export rice, wheat-flour, sugar, etc to Tibet. This is how Nepal’s trade with Tibet (now part
of China) remained limted till 2020 BS besides India. But, Nepal’s trade got further extended beyond
the seas from 2020-21 BS onwards. During that time, Nepal had exported the goods worth Rs. 25.2
crores to foreign countries located overseas and imported the goods worth 0.50 crore from them.
Nepal accepted the trade diversification at official level as a principle of trade in Fourth Five-Year
Plan Document (2027-32 BS) and onwards. Nepal is eagerly looking towards finding the opportunities
all over the world. This is quite visible as Nepal has already established trade relationship with more
than 80 countries in the world and has trade and transit agreement with at least 15 countries all over
the world.

355<< Nova Social Studies Grade-9

Countries Financial Year 2015/2016 Trade Balance
Figures in '000 NPR Figures in '000 NPR
Bangladesh
Canada Export Import -- 2,828,895
China -- 5,918,601
Germany 1,206,848 4,035,743 -- 114,396,748
United States -- 1,172,011
906,025 6,824,626
617,972
1,719,467 116,116,215

3,138,340 4,310,351

9,208,090 8,590,118

Source: Ministry of Finance, Department of Customs (Government of Nepal)

Products-related Diversification in Trade

Products diversification is an important step towards consolidating and fine-tuning the performance
of trade. No nation can afford to ignore it. What is products diversification? Products diversification
is all about adding new products or services which are often technologically or commercially
unrelated to current (existing) products in order to catch additional market (get more consumers).
To make new products, manufacturers (or producers) go for improving, altering (changing) or
creating altogether new products or services. On a larger scale, entire nation could opt for creating
new economic sectors with a view to ease the pressure on a specific economic sector (for example:
agriculture in Nepal). ‘Products diversification’ increases the sale and distribution of a diverse
range of products and services instead of focusing on a handful of limited products. Actually,
products diversification should be an ongoing process and strategy for trade to keep the market
always attractive and a consumer guessing like what is next. Looking at the trend of foreign trade
in Nepal, more different and diverse products have been added in the export basket than before.
Nepal used to export products like pulses, rice, maize, wood (timber) and areca nut to India till
2041/042 BS. Now, Nepal has added more products diversified in nature to export to India. The
current products being exported to India are rice, pulses, cardamom, medicinal herbs, wollen
clothes, Nepali paper, leather and leather items, RMG (Ready Made Garments), carpet, tea, silver
jewelry, handicraft items, Pashamina, living animals, areca nut (betel nut), etc. Therefore, Nepal has
definitely improved on external (foreign) trade. But, Nepal is still relying more on raw materials
and semi-processed products for export. It is always preferable to export final finished products or
completely manufactured products to get much better price in the international market and to earn
more foreign currency through external (foreign) trade.

Activities

1. Enquire from your relatives and family members about new products (goods and services) which
have been introduced by agricultural and industrial sectors in Nepal in the last ten years. Make a
list of those products and discuss their impact on our life.

2. Study the export-import table given in the lesson and analyze it from various perspectives
(angles). Write a descriptive essay based on your analysis and conclusions you derived from it.

Exercise

1. What is trade diversification?
2. Give reasons why trade diversification is required for promoting trade.
3. Describe what scale (level) of region-related diversification in trade has taken place in Nepal.
4. Trade diversification is both a process and strategy to enhance trade. Critically comment.
5. Explain the meaning and scope of region-related diversification in trade.
6. Explain the meaning and significance of products diversification.
7. Differentiate between region-related diversification and products-diversification in trade.

356 Nova Social Studies Grade-9 >>

Lesson Trade-Promotion and
Marketization
9

Understanding Trade Promotion and Marketization

Trade promotion is a marketing technique to increase demand for products in retail stores (shops).
Trade promotion encourages retail stores to be extremely competitive in order to sell more and
more products. Different companies, manufacturing units and various industrial houses utilize
‘Trade Promotion’ to create brand awareness, increase product visibility and to increase the
consumption rate of product. Thus, trade promotions help enlarge a product’s market segment
(the product’s total sales). There are various ways to go for trade promotion like in-store displays,
temporary price reduction, coupons, contests, refunds and rebates, etc.

The term marketization refers to the process of transforming an entire economy on line of open
marked-based economy based on the principle of free and fair trade without Government’s
control and restrictions. Government-owned and managed industries (public enterprises), under
marketization, must perform and compete with other parallel private sector at national and
international level. There is no place for undue protection and monopoly to public sectors at the
cost of suppressing competitive private sector to sell goods and services in the market.

Both trade promotion and marketization are inter-linked. Marketization reduces the undue
interference of Government into the play of market. More is the speed and extent of marketization,
more is the chance for trade promotion. Marketization leads to free competition amongst the
products of similar nature and this is where manufacturers hurry up to promote their products
at retailer’s shops.

Measures or Steps need to be taken by Nepal for Trade Promotion and
Marketization

Nepal is lagging behind in both trade promotions and marketization. Following are the steps (ways)
that Nepal requires to take up to go for trade promotion and marketization:

1. To produce high-quality products,

2. To stress on producing more creative and artistic products by using traditional skills,

3. To arrange for education and skill training in entire country,

4. To regulate the border for checking custom points by the Government,

5. To produce the goods and services according to the needs of the market and continue with
exploring new market,

6. To take initiatives in order to get favours and facilities that a landlocked country deserves to
get,

7. To go for regions-related divsification and products-diversification in trade,

8. To urge the Government for making simplified tax-policy, encouraging trade-promotion and
launching marketization.

357<< Nova Social Studies Grade-9

Actual Steps (Measures) taken by Nepal in direction of Trade Promotion and
Marketization

Ministry of Commerce and Supplies functioning under the Government of Nepal has joined hands
with international and bilateral donors to formulate the Nepal Trade Integration Strategy (NTIS).
NTIS is the Government’s roadmap for export-sector development. It sets out short to medium-
term priorities for trade-driven inclusive growth. The Government of Nepal and the private sector
are looking to enter the regional and international markets. Further, Ministry of Commerce and
Supplies organizes ‘International Trade Fair’ for getting new market for Nepal-made goods.
Following are some of the steps (measures) that the Government of Nepal has taken in order to go
for trade promotion and products diversification:
1. Kaligadh sculpture training centre and production of sculpted artifacts from there have

contributed towards production of sculpted statues and designs in Nepal.
2. Special training programs have been conducted to make RMG (Ready Made Garments) in

Nepal.
3. Many training programs have been organized to develop skills in processing and making

threads out of cotton, deriving local paper called LOKTA and Nepali hand-made paper.
4. Training related to weaving, knitting and sewing cloth and tailoring clothes have been targeted

to women, DALITS, indigenous groups, ADIVASI and unemployed youth.
5. Publication of ‘Trade Bulletin’ has been started.
6. The data regarding Nepal’s external (foreign) trade are collected regularly on periodic basis

monthly, quarterly, bi-annually and annually.
7. Publications such as Nepal’s Bilateral Trade and Transit Agreements, Nepal Export Trade

Directory and Nepal Trade Statistics have been very helpful in understanding the ongoing
trend in trade and hence contribute in making policy and plan on Nepal’s trade (both internal
as well as external trade).
8. Nepal has already entered into bilateral trade agreement with as many as 17 countries in the
world. Apart from this, Nepal is an active member of several regional trading blocks like
SAFTA, BIMSTEC, AFTA and TIFA.

Words and terms you would like to know

SAFTA: South Asian Free Trade Agreement
BIMSTEC: The Bay of Bengal Initiative for Multi Sectoral Technical and Economic Cooperation
AFTA: ASEAN Free Trade Agreement. ASEAN stands for Association of South East Asian Nations.
TIFA: Trade and Investment Framework Agreement. Trade and Investment Framework Agreements
(TIFAs) provide strategic frameworks and principles for dialogue on trade and investment issues between
the United States and the other parties to the TIFA.

Activities

1. Think, just for a moment, that you are an industrialist-entrepreneur. How do you create market
for the goods you have produced? Discuss in pairs with your friends. Write down the conclusions
of your discussion.

2. Find out if the goods and services produced by your community have gotten attractive market.
If not, suggest what steps are needed to be taken in order to create the market for community-

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produced goods and services. Before giving suggestions, discuss the existing problems and
challenges being faced by the community in producing the goods and services with traders,
business-persons and industrialists of your community.

Exercise

1. What is trade promotion? Make a list of different ways to go for trade promotion.
2. What is marketization? How is the marketization linked with trade promotion?
3. Nepal desperately needs both ‘trade promotion’ and ‘marketization’. Justify the statement

highlighting its relevance in the present-day Nepal.
4. Explain the significance of trade promotion and marketization.
5. How do you think Nepal can go for ‘trade promotion’? Write down the ways/methods for taking

up ‘trade promotion’ in Nepal.
6. Outline the steps that Government of Nepal has taken up in direction of ‘trade promotion’.

359<< Nova Social Studies Grade-9

Lesson Relationship between
Agriculture, Industry and Trade
10

Introduction

There is a close relationship between agriculture, industry and trade. Most of the agricultural
products are treated as raw-materials by industries to process them and manufacture them
into finished products (consumable goods). And the goods produced by industries are put into
distribution channel for consumption through trade. Similarly, agriculture requires various types
of industrial products in order to increase the productivity and efficiency of both farm-products
and non-farm products. These industrial products used by agriculture are: agricultural tools,
equipment and machines, chemical fertilizers, high-yielding variety of seeds, insecticides and
pesticides, etc. Both agriculture and industry exchange their own products through a network
of market via trade. This is how agriculture, industry and trade are inter-related. As a whole,
economic development of a nation is impossible in absence of the development of agriculture,
industry and trade.

Agriculture – The Backbone of Trade and Industry

Agriculturists (farmers) buy many tools, machines and other agriculture-related products produced
by industries such as fertilizers, insecticides, pesticides, etc for using them on farm-lands and in non-
farm agricultural activities. Similarly, agricultural products such as cotton, jute, silk, wool, honey,
sugar-cane are used by industries as raw-materials to convert them into useable finished products
like clothes and various typs of fabric items, carpet, rope, honey-pack, sugar, etc. All the agricultural
and industrial products are brought in the market for exchange through trade by the activity of sale
and purchse. Agriculture and industry have reciprocal relationship. Trade assists in building this
inter-dependence between agriculture and industry. For example, agricultural production goes high
through appropriate use of farm tools, chemical fertilizers and insecticides. Likewise, the generator
needed for  artificial irrigation  is produced and supplied by industry. Agriculture is the strength
of Nepal’s economy. Even industrial growth in Nepal has to start from the success of agro-based
industries. It is absolutely necessary to develop more and more agro-based industries in Nepal in
order to utilize the agricultural raw-materials like tea leaves, sugarcane, cotton, oil seeds, milk, etc.
Few more examples will make us understand the inter-relationship between agriculture, industry
and trade better. Sugar industry in Biratangar gets sugar-cane grown in Morang and Sunsari districts.
Similarly, districts like Rautahat, Bara, Parsa, Nawalparasi and Rupandehi supply sugar-cane to the
sugar mills in Nawalparasi, Birgunj, Sarlahi and Bhairahawa. Tea-leaf is supplied as a raw material
from Illam and Jhapa to tea industries in Nepal.

Problems of Trade

Like agriculture and industry, trade too faces problems in Nepal. One of the greatest problems is the
absence of well-connected road-network throughout the country. Agricultural products (as well as

360 Nova Social Studies Grade-9 >>

industrial products) do not reach all the districts and villages in Nepal in time and very often reach
in inadequate amounts. It creates scarcity, mal-nutrition, starvation, black-marketing, inflation and
corruption. Apple-growers of Manang in Nepal get disappointed when they do not see their apples
sold in urban-areas of Nepal due to transportation problem. Thus, trade gets obstructed in absence
of well-connected transport routes in Nepal. This is why apples from neighbouring countries flood
Nepal’s market and are sold at much higher prices. This is the case with most of the food products
in Nepal. Some of the farmers have taken initiative to establish food-processing industries in the
rural areas to utilize the agricultural produce. For example, making apple-juice, apple-products and
other such products like cheese and milk products derived from mountain Yak have saved the
agricultural products from going to waste. This has helped in establishing cottage and small-scale
food-industries in rural Nepal. Farmers’ income has risen up. What does this prove? It proves that
agriculture is lame if industry does not stand with it together. Both agriculture and industry have
to stand together like two legs (pillars) of Nepal’s economy. But if trade is obstructed in absence of
supporting infrastructure such as transport, communicion, market, etc then this will make Nepal’s
economy extremely weak. Both the agriculture and industry will go blind without having trade in
place. Trade is the eyes which show the path to do selling and buying of the products. It makes the
exchange of goods and services possible in the country and beyond the boundary of the country.
There is mutual relationship between agriculture, industry and trade. Each of the three and all the
three must develop in order to attain national economic development.

Words and terms you would like to know

Generator (n.): a machine or device used for producing electricity
Black-market (n.): a system of buying and selling in illegal manner
Malnutrition (n.): a lack of healthy foods in the diet; inadequate nutrition
Mutual (adj.): done, felt or expressed by each toward or with regard to the other; felt by each

Activities

1. Describe in detail the nature and functioning of an agro-based industry located in the
neighbourhood of your residence. Take the pictures (photos) of that industry showing working
pattern, types of products manufactured, tools and machines used and so on. Use the photos in
accordance with the description and share it in the class.

2. What kinds of raw materials produced by agriculture are present in your community? Discuss in
pairs and make a list of those raw materials.

Exercise

1. Illustrate the relationship between agriculture and industry.
2. Explain the importance of trade in establishing mutual relationship between agriculture and

industry.
3. ‘Agriculture is not just the main source of food; it is also the source of raw materials used by

industries to manufacture finished products.’ Justify the statement with the help of examples.
4. Explain how industrial growth in a country helps the growth of agriculture.
5. The lack of transportation has adversely impacted trade in Nepal. Critically evaluate.

Community Work

Do the farmers use (consume) all the farm products themselves or have some quantity of agricultural
produce to sell in the market? In case they do sell the agricultural produce in the market, make a list
of the products and mention their use purpose of consumption). Finally, prepare a report on “Market
Prospects for Local Farm and Non–farm Products”.

361<< Nova Social Studies Grade-9

Lesson

1 1 Economic Planning

Introduction

Generally, a plan is devised to accomplish a task within the framework of certain purposes and
fixed time-period by taking help of capital and labour-force (human-resource). A plan ensures
the performance of a task which meets the fixed targets (objectives) within a given (fixed) time-
period. A person with responsibility and awareness makes a plan in order to succeed in his/her
objectives (set goals). In the same way, Government too makes a plan to fulfill certain objectives
or purposes related to economic and social development by managing the available human and
natural resources in the country. In the language of economics, this is called “economic plan”.
Economic planning is the mechanism of a resource allocation to raise economic activity and
establish the social parity (harmony) in a country at all the levels like production, distribution
and consumption. Therefore, economic plan is a vision-document which shows the path and the
manner in which the goals of economic and social development are to be achieved by a nation
in the fixed-time period. Economic planning as a method for bringing rapid development of the
country was initiated by the then Soviet Union (Union of Soviet Socialist Republic now Russia)
in 1928 AD. The entire course of the Soviet economy was directed and envisioned by a series of
Five-Year Plans beginning in 1928 AD. Soviet Russia had achieved great success in economic
development in a time-bound manner guided by the economic plan. Many countries in the world
got attracted to the concept and execution of economic planning. Majority of the countries in
the world now frame economic plan and work accordingly to bring economic development in
their countries. Nepal has also adopted the framework of economic planning and devises the
economic plan in the format of Five-Year Plan or Three-Year Plan. Five-year plans (or three-year
plans) have two areas of priorities: economic and social. Economic plans generally strive to increase
output and employment; develop the infrastructure; attain economic stability; promote industry,
commerce, and international trade; establish administrative and public service institutions to
support economic development; and introduce labor-intensive production techniques to alleviate
underemployment. The social goals of the plans stress upon improving health and education as well
as encouraging equitable income distribution within the society. Although each plan in the past had
different development priorities, the allocation of resources did not always reflect these priorities.

Economic Planning in Nepal

After the fall of the Ranas in 1950-51, economic planning as a method of bringing development was
discussed for the first time in political history of Nepal. Finally, the First Five-Year Plan (2013-2018 BS
or 1956-61 AD) was announced in 2013 BS (1956 AD). Till 2073 BS, Nepal has already implemented a
total number of 13 plans. There were some targeted efforts in Nepal to bring a planned approach of
development even before 2013 BS.
Following are the efforts made in Nepal to introduce some sort of planning as a method of bringing
social and economic reforms in the country:
1. Rana Prime Minioster Juddha Shumsher had made an announcement to launch twenty-year

plan format in Nepal. But, nothing concrete happened in this direction.
2. The first Company Act of Nepal was implemented in 1992 BS. In the same year, Industrial

Council was established in Nepal.

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3. During the rule of Rana Prime Minister Mohan Shumsher, National Planning Committee was
established in 2005 BS. This Planning Committee had drawn an outline of Fifteen-Year Plan in
order to develop various economic sectors like transportation, agriculture, industry, and other
sectors in Nepal.

4. A Planning Committee was set up in 2007 BS. This committee had also made Fifteen-year Plan
but the plan never came into light.

5. The then King Shree-5 Mahendra had also made an announcement regarding Five-Year Plan in
2012 BS.

List of Implemented Economic Plans in Nepal

1. First Five-Year Plan (2013 – 2018 BS)
Zero Planning-Year (2018 – 2019 BS)
2. Second Three-Year Plan (2019 – 2022 BS)
3. Third Five-Year Plan (2022 – 2027 BS)
4. Fourth Five-Year Plan (2027 – 2032 BS)
5. Fifth Five-Year Plan (2032 – 2037 BS)
6. Sixth Five-Year Plan (2037– 2042 BS)
7. Seventh Five-Year Plan (2042– 2047 BS)
Zero Planning-Year (2047 – 2049 BS)
8. Eighth Five-Year Plan (2049– 2054 BS)
9. Ninth Five-Year Plan (2054– 2059 BS)
10. Tenth Five-Year Plan (2059– 2064 BS)
11. Eleventh Three-Year Plan (2064/065 – 2066/067 BS)
12. Twelfth Three-Year Plan (2067/068 – 2069/070 BS)
13. Thirteenth Three-Year Plan (2070/071 – 2072/073 BS)

Thirteenth Three-Year Plan (2070/071 – 2072/073 BS)

*Long Term Vision: Progression of Nepal from the least developed country to the status of
“developing country” within 2079 BS (2022 AD).
*Objective: This plan aims at transforming the standard of life of the people of Nepal by removing
poverty (pushing the incidence of poverty below 18% mark) and uplifting the economy of the
country.
Targets: Following are the objectives of the Thirteen Three Year Plan (2070/71-72/73):
1. Generation and production of hydroelectricity and electricity
2. Diversification, commercialization and production of agricultural products
3. Development of tourism, industry and trade
4. Access to basic education, health and sanitation with improved quality
5. Promotion of Good Governance
6. Building road and other physical infrastructures
7. Preservation of natural resources and environment

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Strategies: To achieve the objectives mentioned above, following strategies need to be employed:
1. Incorporating the contributions from private, public and cooperative sectors in development

process with a view to achieve inclusive and sustainable development
2. Development of physical infrastructure
3. Improvement and enhancement of the quality of social service by making it within reach of

those who require it
4. Emphasis on Good Governance in all the sectors
5. Social and economic empowerment to targeted populations and regions
6. Sustainable developments matching with climate change measures
Present Challenges: At present, Nepal faces following challenges in the path of integrated
development of the country:
1. To create investment friendly environment and speed up the national projects
2. To neutralize the effect of diplomatic misunderstanding in bi-lateral and multi-lateral foreign

dealings at political and economic levels
3. To check excessive inflation and black-marketing due to economic-blockade
4. To ensure people’s participation while formulating local area development plan and its

management
5. To manage and distribute relief materials to the earth-quake victims
6. To generate employment with a view to raise living standard of people in Nepal
7. To strengthen and empower the backward areas, community and people in Nepal to enable

them enjoy the fruits of development and achieve inclusive democracy
8. To improve public service network with a view to improve democratic administration in the

country
9. To overcome the problem of electricity-crunch being faced in the country at the moment
10. To provide and ensure good governance to the people
Programs at hand: Following are the programs at hand that Government of Nepal needs to work for
to realize the targets of this plan amidst above stated challenges:
1. Hydro-electricity and development of other alternative sources
2. Diversification, commercialization and increase in the productivity of agricultural sector
3. Development of tourism, industry and trade in the country
4. Development of necessary infrastructure such as Basic Education, Health, Drinking Water and

Regional Development
5. Good-Governance
6. Building physical infrastructure such as road transportation and others
7. Preservation and conservation of natural resources and environment

364 Nova Social Studies Grade-9 >>

Activities

There could be an economic plan for your home. If indeed an economic plan exists for your home,
then find out for how long this plan has been continuing at your home, what factors are taken into
account to make the plan and how many members got involved to make it. Discuss with your parents
regarding this and take down the notes to describe it later in the class.

Exercise

1. Briefly introduce the meaning and nature of economic plan.
2. Explain the significance of the economic planning in bringing about economic development of the

country.
3. What could be the reasons behind the state of under-development and backwardness of Nepal

despite having the periodic economic plan introduced from 2013 BS onwards? Illustrate the
reasons in points by giving suitable examples.
4. ‘Nothing succeeds without having a plan.’ Justify this statement.
5. Outline the targets and startegies adopted by the 13th plan of Nepal.
6. Highlight the major challenges on the way to achieve the target fixed by 13th Three-Year Plan.
7. List the programs at hand that Government of Nepal is working on for pushing the incidence of
poverty below 18% mark.

Community Work

Make a specimen of a plan for bringing reforms in your community by prioritising the needs and
listing the programs to attend to. Before making the plan, have a discussion with community members
to develop understanding of the problems and insight into their remedies (solutions).

365<< Nova Social Studies Grade-9

Lesson Poverty Eradication and

12 Contributions of Economic Plans
towards Employment–Creation

Any development work undertaken strictly in accordance with plan gets complted within
prescribed time-period. In this way, available means and resources are properly utilized.
Promotion of economic activities by making economic plan helps in reducing poverty to a great
extent. A good economic plan and its timely execution generate more employments at new
levels. A country like Nepal requires effective implementation of the economic plan for bringing
rapid economic development within the country. In following ways, the economic plans help in
removing poverty and creating jobs:

1. Increasing the Rate of Economic Development

Economic plans take stock of all the available human and natural resources of a country for
bringing economic and social development. Economic planning lays down the rules and roles
for the Government in order to utilize the means and resources of the country. A developing
country like Nepal can always take maximum possible benefits from even limited resources if
well-crafted economic plan is executed in the right spirit with right purpose. Our country Nepal
is suffering from poverty. Widespread unemployment besets every region of the country. In a
situation like this, rightly executed economic plan will open up employment opportunities for
the Nepalese people, promote saving and help in capital-formation and thus lead the country on
the path of prosperity.

2. Ending the Regional Imbalance

Fruits of development in Nepal have not reached all the regions of the country. This has
created lopsided development in Nepal thereby creating regional imbalance in socio-economic
development. Such kind of regional imbalance fans the feelings of alienation and discrimination
which lead to generate social disharmony. Many number of indigenous and tribal groups in
Nepal are dissatisfied with their current socio-econoimic status.To remove this kind of regional
imbalance, economic plans go for phase-wise rapid development of basic infrastructures such
as transportation, communication, public health and education. Targeted programs and projects
are launched in rural areas of Nepal to bring them into mainstream of development just like the
urban areas. All the three ecological regions: Himalayan region, Hilly region and Tarai (plain)
region do not experience same intensity of economic activities in Nepal. The Hilly region is more
intense in economic activities than the Himalayan region while the Tarai region is more active
in the economic activities than the Hilly region of Nepal. Economic plans assess the strengths
and weaknesses of these regions and aim for introducing region-specific economic activities by
taking away or minimizing their weaknesses. This is how economic plan plays an important role
in ending the regional imbalance.

3. Alleviation the Poverty and Inequality

Economic plan includes various programs aimed at alleviating poverty and income-inequality
in the country. Various kinds of development-oriented programs launched by economic plan
attempt to create employment opportunities and work on capacity building of people to make
them capable of setting up enterprise, doing business and trade and getting employment

366 Nova Social Studies Grade-9 >>

elsewhere. Such types of employment-generation programs also include provisions for education,
skill-training and self-employment schemes. For example, 13th Plan has undertaken to reduce
poverty to 18% mark from the existing level of 23.8% in Nepal.

4. Favourable Conditions for Employment Generation

Developing countries have continued to remain backward because these countries are poor or ill-
equipped in utililizing their means and resources. Besides, there is a lack of capital in the country
as a result of which industrialization gets blocked before maturing. And, productive labour-
force (work-force) keeps on waiting for employment. In such situations of economic difficulties,
economic plan steps in to revamp and restructure the economic sectors like agriculture, industry
and trade by laying out the strategy for proper utilization of human and natural resources within
the country. Employment opportunities are generated by executing the plan and productive
labour-force gets fully absorbed in the economy.

5. Increase in Capital Formation

Successfully executed economic plan helps people to find employment opportunities and
enhance their skill level and capacity. A range of economic activities at different levels begins in
the domestic economy of a country. This creats variety of jobs, vacancies and opportunities for
entrepreneurship for all kinds of labour-force: skilled, semi-skilled or unskilled in nature. The
entire economy starts moving towards the stage of stability and the status of full-employment.
People have more earning in comparison to their needs (wants) and therefore, they begin to
save more. As the rate of saving increases in the economy, it leads to overall increase in capital
formation. Rise in capital formation raises the prospects for more investment in different sectors
of economy. High rate of investment expands the capacity and performance of entire economy
which now looks ready for more and more workers getting employed. A newly resurgent
economic condition throws up many employment opportunities to the people. A cycle gets
formed where saving, capital formation and investment go on to uplift the socio-economic status
of the country.

6. Development of Agricultural and Industrial Sectors

Agriculture is the foundation of our economy. But, agriculture in our country is suffering because
of lack of skilled work-force, absence of physical infrastructure, insufficient capital, etc. Industrial
sector is also facing downturn. Status of industries in our country is far below the expected
level. Both the economic sectors - agriculture and industry - are ailing and have gone sick. Since
industries in Nepal are heavily dependent upon agriculture, economic plan needs to focus and
concentrate more on this sector. Agriculture being labour-intesive sector in Nepal invites more
reforms and economic plan can bring this turn around. Both industries and agriculture are to be
taken together in making provisions in economic plan for bringing reforms in this sector.

7. Expansion of Foreign Trade

Our country has been in trade deficit every year for more than a decade. In absence of industrial
growth within the country, import has exceeded export. To reverse this unfavorable trade situation,
Government has to go for making economic plan which stresses more on heavy industrialization
particularly for agro-based and daily-consumable products. Here, economic plan envisions
capital investment in export-oriented industries by competing with other imported products.
Skill training, education, favorable tax-policy, exploring new overseas market, etc. further assist
in expansion of foreign trade.

367<< Nova Social Studies Grade-9

Words and terms you would like to know

Lopsided (adj.): unbalanced
Alienation (n.): keeping separate; exclusion from the mainstream society
Alleviation (n.): lessening the hardship or intensity of the pain and problem
Revamp (v.): to improve the condition
Resurgent (adj.): rising or becoming stronger again
Downturn (n.): reduction in economic activity
Ailing (adj.): in poor condition; performing below an expected standard

Activities

1. Clarify with the help of examples how economic planning can create ‘jobs and works’ (employment
opportunities) in a country.

2. Economic plan generally follows the ‘Five-Year’ format. But, the plan period has been reduced to
‘three years’ from 11th Plan to 13th Plan. Highlight the reasons why it was reduced to just ‘Three-
Year’ Plan.

Exercise

1. Explain in brief what roles the economic plan plays in removing the regional imbalance in
development within a country.

2. Write a letter to the Vice-Chairman of the National Planning Commission of Nepal suggesting the
strategies with regard to enhancing the employment opportunities in the country.

3. ‘Employment is an important way to poverty alleviation.’ Justify this statement with your
argument and valid examples.

4. Analyze how economic plan helps in poverty alleviation in Nepal.
5. Both agricultural and industrial sectors are ailing and sick in Nepal. The country is over with 13th

Plan. It is something very uncomfourtable to observe that sixty years of planning in Nepal could
not develop these sectors and Nepal is still labeled as the “Least Developed Country”.
Where have things gone wrong? What are the reasons behind such a slow pace of development in
our country?
6. Nepal lacks capital investment in various sectors of domestic economy. Both foreign as well as
domestic investment in Nepal is poor.
a. List the side-effects of poor capital investment on Nepal’s economy.
b. Explain how economic plan can help in increasing capital investment in Nepal.

Community Work

Visit your Village Development Committee or concerned municipality. Have a meeting with the head
of the VDC or municipality in order to get the answer to following questions:
1. What types of plans are being framed at local level for generating employment?
2. When will these plans complete in fulfilling their objectives?
3. What are the benefits of these plans?
4. What is the total number of population getting direct benefits from these plans?

368 Nova Social Studies Grade-9 >>

Lesson

1 3 Entrepreneurship

The word entrepreneurship has been derived from the word “entrepreneur” that in turn originates
from a French verb,  entreprendre,  meaning “to do something” or “to undertake.” Therefore, it
is better to know and understand more about an entrepreneur first before attempting to know
about entrepreneurship.

Entrepreneur

An entrepreneur is someone who organizes, manages, and owns the risks of a business or
enterprise. The notable economist of twentieth century Joseph Schumpeter sees the role of the
entrepreneur as an innovator who implements change in an economy by introducing new goods
or new methods of production.
Another economist of the twentieth century Israel Kirzner looks at entrepreneur as a person who
discovers new profit opportunities which were previously unnoticed. Therefore, an entrepreneur
is commonly seen as an innovator – a designer of new ideas and business processes (opportunities).
Collins Barrow, one of Canada’s largest associations of chartered accounting firms, agrees with
Israel Kirzner when he says that “an entrepreneur is a person who takes up business and trade
to make profits.”
An entrepreneur is an agent of change. An entrepreneur sees an opportunity which others do
not fully recognize and comprehend. An entrepreneur is always alert and remains on ‘prowl’ to
look out for business opportunities. Most often, an entrepreneur creates the opportunity for his/
her own profits through hard work, commitment and the adaptability to learn the lessons of the
market along the way.

The Roles performed by an entrepreneur

1. S/he explores new ideas of management, new production method and new market for goods
and services produced.

2. S/he recognizes the potential and prospects of a new product or the improved version of the
product.

3. S/he expands the enterprise and business by investing more capital, adopting smart technology
and devising effective tools of marketing and advertisement.

4. S/he takes up the risk of failure of an enterprise or any activity which relates with an enterprise
and hence bears the entire loss.

5. S/he motivates and encourages the managers and workers to increase their productivity and
efficiency by announcing incentives and giving rewards and share in business profit.

What are the essential qualities found in a successful entrepreneur?

Entrepreneurs are not diverted or discouraged by criticism and skepticism from ‘experts’ or
from his team-members. They are always receptive and willing to listen to honest analysis and
suggestions. They know that success comes from hard-work and team-work. Therefore, they set
examples by doing based on their own performance.

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Essential qualities displayed by a successful entrepreneur

1. S/he should have a new way of thinking (novel ideas) and unique style of working which
ensures better productivity and efficiency.

2. S/he must have capacity to explore, research, comprehend and analyze the things and issues
which affect the prospect and performance of his/her enterprise or venture.

3. S/he must not be well guarded and controlled by just ancestral property as the personal
quality to expand and add on to existing business and enterprise demand individual efforts
and intelligence.

4. S/he must have great management skill and strong team building abilities. These are essential
leadership attributes for successfully running the enterprise and opening up a new one.

5. S/he must have capacity to bear financial loss as well as the failure of some schemes, ideas or
even a new venture. It is because an entrepreneur is the risk taker and s/he does not have fear
of failures, though never tries to get it. Failures and losses for an entrepreneur are lessons to
learn and avoid their repetition.

6. S/he knows how to translate an idea into real action. An entrepreneur sees a dream and makes
it real. So s/he is the doer, implementer and performer rather than being just an idle thinker or
only a dreamer.

Entrepreneurship

Entrepreneurship is the ability and willingness to take the risk to develop and operate a business
for profit to serve the needs of a particular group. Entrepreneurship is all about initiating, financing
and managing new commercial enterprises by discovering new ways of combining resources
(natural plus human resources as well as man-made resources). Entrepreneurship goes along
with a danger of suffering financial loss. There is always a risk involved of a failure of a vennture
or an initiative that an entrepreneur has decided to take up. Therefore, entrepreneurship goes
for either ways: risk of making loss or fortune of making a profit. This is how entrepreneurship
is an intelligent and adventurous play of finance and business where an entrepreneur assumes
the responsibility and the risk for a business operation with the expectation of making profit.
Entrepreneurship further involves the managing and decision making abilities (powers) to decide
on the product or service for production, acquire the facilities, and bring together the labor-force,
capital, and production materials. If the business succeeds, the entrepreneur gets the reward of
profits; if it fails, s/he owns the loss. Actually, it is an art that makes the entrepreneurs to stand
up and succeed in the business venture. Therefore, entrepreneurship is an art of starting a new
business (enterprise, venture, industry) and continuing the same by skillfully managing it with
the expectation of making profit.

Benefits of Entrepreneurship

Entrepreneurship allows people to do what they want and creates new job opportunities in a
society. Entrepreneurs are needed to lift the economy and make it deliver on producing goods
and services, generating employment opportunities, increasing capital formation, launching
investment for opening up new enterprises and so on. Entrepreneurship brings economic growth.
In some countries there are more entrepreneurs than in other countries. And, this is where we
find the difference between developed and least-developed countries in the world. Therefore,
a lot of governments around the world support people who want to start their own business.
Following are the benefits of entrepreneurship:

370 Nova Social Studies Grade-9 >>

1. Entrepreneurs Add to Production, Nation’s Development and National Income: Spread and
development of entrepreneurship helps in setting up new businesses for producing goods and
services. In this way, scores of jobs are created in the market and the rise in economic activities
leads to optimum utilization of both natural and human resources within a country. With the high
level of production, economic status of a country also goes better by adding on to national income
of the country. Entrepreneurial ventures begin to generate new wealth. New and improved
offerings, products or technologies from entrepreneurs enable new markets to grow more and
more. Businesses in associated industries, like call center operations, network maintenance
companies and hardware providers root themelves in the market. Various types of educational
and vocational training institutes come up to impart necessary skills to job-aspirants. Creation of
more wealth at national level both at enterprise as well as individual level helps the Government
in collecting more taxes of different kinds from different sources. This is where Governemet
has more spending power to rescue struggling economic sectors, building infrastructure and
restructuring public education and health.
2. Entrepreneurs Improve the Quality of Production: Entrepreneurship helps to bring new
products and ideas to the market. Without the creative ideas of entrepreneurs our world would
not be as advanced as it is today in the fields of culture, science and technology. New ideas either
to give something new or to improve upon the exisiting model hold the key to entrepreneurship.
Scientific discoveries, technological inventions, new research in natural and social sciences have
no meaning when entrepreneurs are not present to use and utilize them for the production of
goods and services. Having managed such a level of inputs in production, entrepreneurs give
improved and higher quality of goods and services to consumers in a society. Entrepreneurs
dealing with similar kinds of products compete with each other. Better quality of production at
reasonable price is the only way to survive in the market. And, it is always good for consumers
to have more than two choices to make while buying products for use.
3. Entrepreneurs – Agents of Social Change and Community Development: Entrepreneurship
always goes for new, novel and innovative ideas and things. It is a clear shift from the past and
traditional method adopted before. Unique offerings of new goods and services break the old
practices, habits and attitudes in a society. This is a social change. Look at the products of 50
years ago and compare them with recent products. How have things changed? Posting letter by
a son to mother has been replaced by direct talk on phone through video-calling. Smartphones
and their smart apps due to technological entrepreneurship have revolutionized work and play
across the globe.
Let us take an example of Nepal. Our country Nepal faces drinking water problem at nation-wide
level. Some of the villages are the worst-sufferers. Water scarcity in a remote village called Thali
of Doti district has forced many of the residents migrate to other areas in Kailali district in the
last four decades. An entrepreneur sees a business opportunity here by producing an innovative
product which stops the internal-migration of the people and saves time for productive work.
An entrepreneur can produce automatic, low-cost, flow-based device-pump that fills the water
containers. Such an installation will ensure villagers are able to focus on their main economic
activities. They won’t be worried anymore about a basic necessity like carrying water for whole
day or half a day. They will have more time to work in a day. More time to work means more
saving and more saving means they can easily pay for installation of low-cost water-filling device.
Is not it a social change? Indeed, it is. It is not just a social change but community development
too. Entrepreneurs always function in the community. Therefore their prime concern is to protect
and nurture the community. They invest in community projects and provide financial support to
local charities.

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4. Entrepreneurs Utilize Factors of Production: Success of entrepreneurship lies in the utilization
of all factors of production (popularly known as means and resources). Entrepreneurs utilize these
factors of production available as resources in a country for the best of their purposes in order to
make finished goods and services. These factors are used in a form of inputs by entrepreneurs not
to limit their use but to enhance their presence and application by creating more outputs (finished
goods and services). Factors of production like land, labour and capital are called basic resources
to start a business enterprise. Entrepreneurship goes on adding value to these basic resources by
nurturing them. Human resource building and capital formation are the fittest examples here
because neither of them will develop in absence of entrepreneurs.

Words and terms you would like to know

Prowl (n.): the act of roaming around in search of opportunity
Adaptibility (n.): the process or state of changing to fit in a new environment or different conditions
Skepticism (n.): the belief that absolute truth is simply not possible
Incentive (n.): something that encourages or motivates to do something
Attribute (n): a quality or characteristic of somebody or something
Venture (n): new business enterprise

Activities

1. Read the following news report:

Boddhi-Chitta

Banepa, 23 Falgun: The price of the seeds of Boddhi-Chitta trees has shot up to become double of
the earlier price in Kavrepalanchok district. Bodhi-Chitta trees are grown in Bahra-Temal area of
Kavre district. The seeds of these trees are used for making prayer-beads by Buddhists. Boddhi-
Chitta trees are also called as holy trees. There is a great demand for this tree from different parts of
the world where Buddhists are residing. A Boddhi-Chitta tree fetches somewhere from 5 lakh to 32
lakh Nepalese rupees in the international market. Many farmers have been attracted towards this
tree in order to go for commercial farming. There is a great business prospect for the farming of this
tree as demands are far more than the current rate of supply. A farmer shares his experience, “I had
earlier managed a nursery of two thousand Boddhi-Chitta plants and all of them got sold. Now, I
am planning to maintain a nursery of five thousand such plants.” Every plant fetched five hundred
rupees for him. As demands of Buddhist prayer-beads have risen up, the price of such plants have
also touched the new height. Quite surprisingly, a big tree of Boddhi-Chitta was sold in 32 lakh
Nepalese rupees in Katunje of Bhaktapur district and in 36 lakh rupees in Bhajuwa of Ramechhap
district. The farmer further shared that he himself earned 10 lakh rupees as net profit by selling the
plants of Boddhi-Chitta.
Farmers of other districts in Nepal like Kathmandu, Bhaktapur, Lalitpur, Panchthar, Dhankuta,
Pokhara, Tanahun, Baglung, and Gorakha have already taken the plants of Boddhi-Chitta in order
to do commercial farming. Prayer-beads made out of Boddhi-Chitta are exported to countries like
China, Thailand, Bhutan, India, South Korea and many other countries. One tree of Boddhi-Chitta
produces 50 kilogram prayer-beads.

Now, answer the following questions:
a. Did you ever hear the name of Boddhi-Chitta? Did any of your family members or relatives
know about it? If yes, then state what perception they had about Boddhi-Chitta. If no, what
reponse and reaction they have now on hearing about Boddhi-Chitta?

372 Nova Social Studies Grade-9 >>

b. Highlight the purpose of including this topic in the lesson. Bring out the linkage between the
lesson and the above topic Boddhi-Chitta.

c. What is the use of Boddhi-Chitta?
d. Do research on other medicinal herbs and decorative but significant plants which are as

precious and valuable as Boddhi-Chitta. How can such herbs and precious plants create
opportunities for people to become entrepreneurs?
e. Do you think that making garlands out of ‘Beads’ derived from Boddhi-Chitta tree is the
classic example of entrepreneurship? Give reasons for your answer.
2. The globalization of technology means entrepreneurs in lesser-developed countries have access
to the same tools as their counterparts in richer countries. They also have the advantage of a lower
cost of living, so a young individual entrepreneur from the least developed countries like Nepal
can take on the might of the multi-million dollar existing product from a developed country. But
in reality, it does not seem to happen like this in case of Nepal. Do you agree with it? Give reasons.
3. Has Nepal become slow and negligent in promoting and creating entrepreneurs? Do we expect
to continue with aids and grants without improving on clean and transparent institutions
and governing system to deliver good governance? Discuss these questions in the class by
emphasizing on the linkage between promotion of entrepreneurship and political will to deliver
“Good-Governance”. Share the conclusions in the school’s morning assembly.

Exercise

1. Who is an entrepreneur? What are the essential qualities (attributes) found in a successful
entrepreneur?

2. An entrepreneur is an agent of change. Comment with appropriate illustrations.
3. Enumerate the roles played by entrepreneurs.
4. Explain briefly the meaning and nature of entrepreneurship.
5. Present a detailed account on the advantages (benefits) that entrepreneurs bring to a nation.
6. Entrepreneurs are more than the power-crazy politicians. Critically analyze by drawing your

definite conclusions.

Community Work

1. There may be unemployed youth from both the genders in your community. In absence of any
fruitful economic engagement, they get drawn towards indulgence in bad habits, wastage of time,
energy and money in gambling, gossiping and partying and other such unproductive addictions.
Prepare a plan for such youth on making them skilled for self-employment.

2. There are two types of entrepreneurship: Social and economic entrepreneurship. Social
entrreneurship includes the activities like raising social awareness, being active in Children’s
Club to provide children safe and secured childhood. On the other hand, examples of economic
entrepreneurship are creation of engagement in economic activities for one’s own by starting
venture at small, medium and large-scale levels, undertaking savings for future investment and
so on.

Meet the teachers, guardians and others whom you know to find out the type of entrepreneurship
they are engaged in. Make a list of the benefits of entrepreneurship and name the specific areas in
which it is operating.

373<< Nova Social Studies Grade-9

Lesson Employment Generation and

1 4 Management

Balrampur Village- A Success Story

There was a tea-shop near a village-road in Balrampur VDC. Wayfarers and villagers would often
gather there to get refreshed with a cup of tea. Tea-shop owner had arranged for carom-board,
playing cards, ludo and other indoor-games in order to entertain the customers. Unemployed
youths of the village would often get into playing indoor games like carom-board and cards while
older people would relish on ludo. Playing cards very soon got converted into gambling which
invited even people with shady characters from neighbourhood to stake money for a chance of win.
Unemployed youths from the village got carried away by the win-loss proposition of the game of
gambling. They started stealing money from their own houses and selling things to get money in
order to gamble through cards. Very soon, tea-shop started supplying wine and beer-bottles to those
who would gather for a longer stay on the shop. Thus, tea-shop gradually developed as the hub of
people of all kinds including laborers, farmers and educated villagers. Owner of the tea-shop was
the happiest man on the Earth as he was making huge profit. There was a sea of people streaming
both inside and outside the shop.
In due course of time, cases of disputes, fist-fights, stealing, extortion and domestic violence began
to surface in the village. The village got defamed and earned disrepute far and wide. Villagers lost
their confidence and stopped taking the name of their own village to strangers or outsiders. Having
realized the worsening situation of the village, some educated members took on to themselves to
change the course of situation by uprooting the main cause of the problem. Unemployment was the
main cause of the problem. Unemployed youths were idle and all sorts of evils were playing in their
empty minds. Educated villagers counseled the unemployed youths and motivated them to find
work or job. Educated ones fixed the meeting with the head of the cooperative society of the village
and the cooperative society put forwad the proposal to the Village Development Committee. Both
the cooperative society and Village Development Committee joined their hands and organized a
training camp to admit all the unemployed youths from the village to give them training according
to their aptitude and interest. For example, they were trained in a range of skills such as handicraft,
computer, animal husbandry, cash-crop cultivation, cottage industries, tailoring, plumbing, electrical
and electronic repairing and maintenance, etc. After the completion of skill training, cooperative
society extended loans on easy interest to the youth who were ready with newly-acquired skills. The
new brigade of youth shared the common goal of setting up new business and enterprise with the
loan amount. And, they did that.

The youths of Balampur Village are engaged now in tea-cultivation, some are growing vegetables;
others are running their cottage industries for pounding spices, packing rice and making pickles.
Women and girls are managing community forestry and selling forest products which have
naturally fallen on the grounds without cutting trees. Many women opted for tailoring. And,
now they are making clothes and garments for sale. Those who were trained in wood-craft and
wood-work have set up cottage industries for wood sculpting and furniture making enterprises.
Poultry farms, bee-keeping, silk-farms and piggeries are operating with great success in the
village. Computer shops with hard-ware repairing and software installation have been opened in
the village. Electronic and electrical appliances are being repaired in the village. Now, customers
from nearby villages are also visiting the village for buying goods and services. It is a remarkable
turnaround for the village Balrampur experiencing new level of economic and social progress.
Inculcatoin of skills in unemployed youths made all the difference in the social and economic
conditions of the village and the villagers.

374 Nova Social Studies Grade-9 >>

In the above example, all the youths and villagers tried to look into the problem and came out with
the solution. No external agency was blamed for their plight of idlness, joblessness and poverty.
They didn’t wait for the problems to worsen and fester to destroy the whole village. Rather, they took
remedial actions and went for entrepreneurship by taking support and help from the cooperative
society and local administration. The fruitful combination of land, labour and capital brought
rewards for them in the form of self-employment and having one’s own enterprise. Today, they
are creating employment for others at local level. They have gradually paid back all the interests
charged periodically on extended loan to cooperative society.
Balrampur village has all the peace and order to progress further. Villagers are feeling confident
as they have realized the power of self-support and entrepreneurship. All the social problems and
evils which had gripped the village are the stories of the past. The youths who are running their
own business and enterprise have turned trainers for other unemployed youths from neighbouring
villages. Noboby is idle in the village. Neighbouring villages are inspired by the success of Balrampur
village and transforming themselves accordingly.

Words and terms you would like to know

Wayfarer (n.): traveler who makes a journey on foot
Relish (v.): enjoy something
Shady (adj.): dishonest
Turnaround (n.): a big improvement
Disrepute (n.): disgrace, a lack or loss of good reputation or respect
Pound (v.): beat something to pulp or powder

Activitie

What is the condition of youths in your community? Are they straying around? Have they become
idlers and going to rack and ruin? If this is the situation in your community, then find out the ways
to come out of this dangerous situation which will ruin the entire community and the village. Discuss
several options and remedies possibly available to help out these youths in groups. Share the outcomes
of the discussion in the class.

Exercise

1. Why did the village Balrampur earn disrepute earlier?
2. What was the main problem of Balrampur village?
3. What were the ways and remedies adopted by the educated villagers of Balrampur to come out

of the problem?
4. How did the village develop the employment opportunities for the youths?
5. Who will you give credit for solving the problems of Balrampur village?
6. Enumerate in points the ways the youths of the village went ahead to establish their own business

and enterprise.
7. Highlight the roles to be played by local bodies and Government of Nepal to generate employment

opportunities in several other villages in Nepal.

Community Work

There could be unemployed young men and women in your community. They require skill-training
and orientation for gainful employment. Take down their names and addresses with their basic qual-
ifications and available skill level. Assess their profiles and make a plan for their self-employment.

375<< Nova Social Studies Grade-9

Lesson

1 5 Labour

Introduction

Generally, labour is understood as physical exertion or doing any work with the involvement
of physical strength and stamina. Carrying the load, ploughing the field, constructing houses,
working in the factory, selling one’s own labour for money are commonly portrayed as labour.
As commonly understood, any effort which is undertaken at either physical or mental (or both)
level by an individual in return (exchange) of money is called labour. Therefore, the aggregate
(sum total) of all human physical and mental efforts used in creation of goods and services is
called labour.
* An effort undertaken by an individual involving his hands and head in order to reach an

objective is called labour...... Alfred Marshall.
* An effort that creates value (usefulness or utility) in goods or/and services is called labour......

Adam Smith
* Labour Act, 2048 BS of Nepal has defined labour as given below:
Labour is understood as an effort or work that is involved in producing goods and services in an
enterprise and may get combined with land, capital or any tangible property or heavy machinery.
Labourer is the one who gets paid in either money or kind or both in form of salary or wages.
Lobourer also includes contract workers and those who work in the unorganized sectors on daily
basis.

Labour is being displayed on different foams

Types of Labour

Labour can mainly be divided into three types:
1. Productive and Unproductive Labour: A human-effort undertaken within the framework of
law of the land with a view to benefit the society is taken as productive labour. And just opposite
to this is the unproductive labour. An unproductive labour is an illegal work which harms the
society and endangers the safety and security of the people’s life. Examples of unproductive
labour are theft, smuggling, black-marketing, hoarding, etc.
2. Skilled and Unkilled Labour: A human-effort which requires specific skill, training,
knowledge and education is called skilled labour. Examples of skilled labour are teacher, doctor,
engineer, advocate, and others. A human effort which does not require any specific skill, training

376 Nova Social Studies Grade-9 >>

or education is called unskilled labour.
3. Physical and Menatal Labour: A work which demands more physical involvement of body
strength of an individual is called physical labour. Examples of physical labour are farmers
working in the farm with traditional technique, workers working in a factory, potter carrying a
load, rickshaw-puller pulling a rickshaw, etc. A work which requires more mental input than the
application of physical strength of an individual is understood as mental labour. For example,
labour like doctor, engineer, scientist, manager, technician, driver, etc come under the category
of mental labour.
3. Physical and Menatal Labour: A work which demands more physical involvement of body
strength of an individual is called a physical labour. Examples of physical labour are farmers
working in the farm with traditional technique, workers working in a factory, potter carrying a
load, Rickshaw-puller pulling a rickshaw etc. A work which requires more mental input than the
application of physical strength of an individual is understood as a mental labour. For example,
labour like doctor, engineer, scientist, manager, technician, driver etc come under the category of
mental labour.

Value or Significance of Labour

Labour plays a great role in the development of a country. No goods and services will ever be
produced without having input of labour in their production. Labour is the mobile factor of
production. Therefore, labour puts the speed and movement in other factors of production such
as land, capital and natural resources. Combination of all of them including labour makes the
production possible. Labour is an important factor not only in production, but all other economic
activities. Efficient labour-force utilizes the available natural resources of the country. Sincere,
dedicated, devoted, intelligent and hard-working labour-force helps the country to become
developed.
A country like Nepal has more number of manual labourers than skilled labour-force. For rapid
development of a country, maximum number of skilled labour-force is needed. Skilled labour-
force helps increase the quality of products and services and contributes in wealth-creation for
a country. Providing skill-training and high quality education to youths and unskilled labour-
force will create balanced labour-profile in Nepal. More number of skilled labour-force will
speed up the production of goods and services within the country. Export will rise and nation’s
wealth will go up with collection of more foreign currencies. More and more enterprises will be
established in Nepal and this will open up several employment opportunities for the common
people having different skill level. As individual’s earning rises higher, national income too picks
up and goes higher. Nepal’s labour market produces more than four lakh new workers every
year. Unfortunately, Nepal has not been able to upgrade their skill-level and absorb them in the
domestic economy. Most of them migrate from the country for foreign employment. It is the sad
situation for Nepal’s economy. Our labourers (workers) are making foreign countries prosperous
but Nepal is still struggling economically.

Dignity of Labour

Respecting all types of jobs equally without considering any occupation superior to others is
known as ‘dignity of labour’. An occupation may involve manual (physical) or menial labour
(work) but the job carries dignity compared to other jobs which require more intellectual (mental)
inputs. It does not matter what category of labour has come into play to make production
possible. All types of labour involved in all kinds of jobs and occupations play an important
role in developing the nation. Hence, a nation that does not acknowledge the dignitiy of labour

377<< Nova Social Studies Grade-9

cannot prosper. A clerk works in the office, a farmer exerts in the farmland, a waste-collector
collects the waste, a vendor sells the groceries, a teacher teaches in the class-room, a scientist
works on a research, a doctor diagnoses the diseases, an engineer constructs the bridge, and
a lawyer practises the law and so on. Some of the works here apply bodily labour more while
others employ more intellectual and mental inputs in their work. But, what is common in all
these works? All of them are working in legal ways to earn their livelihood and at the same
time contributing to the development of a nation. From this perspective, their labour has dignity
because it is needed for nation’s development and it is respectful earning for livelihood. All of
them are required at their own respective place. And this is where we respect the labour which
makes a difference in our quality of life. An artisan working in a factory is not more important
than a miner working in a mine and at the same time he is not less important than a scientist
working in a laboratory to discover a new law of science. This is called the dignity of labour. Their
labour as a whole leads the nation towards prosperity and transformation at social and economic
level. In this sense manual labour is equally important as the mental labour is.

Nepal's Natural Resources and Human Resource

Nepal has been blessed with natural resources in abundance. But, Nepal is still in a sorry state of
development due to under-utilization the resources. Why are things like this in Nepal? It is because
Nepal does not have sufficient amount of capital and required number of skilled labour-force to
utilize the natural resources optimally. Unemployment is increasing day by day. Those who are
unemployed in Nepal show a tendency of remaining idle instead of doing a work. They are very
choosy about the type of work they intend to do. However, these youths would happily agree to
do any job when they are in a foreign country. This is something very strange and weird in the
21st century Nepal. What makes our youths behave like this? From where do they get such kinds
of attitude (SAMSAKARA)? Why do they refuse to work in their own country whereas they have
no problem in working in foreign land? It seems that we have not learnt to respect the work and
therefore do not show dignity towards labour. King Jayasthiti Malla had divided the castes on the
basis of types of work. Somehow things got rigidified and brought the feeling of high quality work
and low quality work. This is why Nepalese youths do not work in Nepal fearing that people will
mock at them when they are caught doing physical or manual work. It is absolutely stupid to think
like this. No work is small; it is the attitude with which we approach the work makes it small. Work
must receive its recognition in accordance with the purpose it serves.
It is high time that Nepalese youths got skill-training and education in Nepal to be here. Why should
they pay lakhs and lakhs of rupees to dishonest agents for getting overseas work? With the same
amount of money plus the assistance received from the Government, they can start enterprise or
business here. The latest report says that more than 1,500 Nepalese youths are migrating from
Nepal every day in search of foreign employment. If these migrating youths are retained with the
necessary arrangements made for their economic activities then all will improve their both economic
and social conditions of life. First thing first, work is a work no matter what we do until and unless
it violates the law and is anti-social and anti-national in nature. Let us join hands together and treat
our work as worship.

Words and terms you would like to know

Exertion (n.): strenuous (active and energetic) action
Tangible (adj.): having a physical existence
Mobile (adj.): able to move easily or freely
Groceries (pl. n.): food sold in a grocery store
Livelihood (n.): something that provides income to live on

378 Nova Social Studies Grade-9 >>

Optimally (adv.): in a manner that makes use of something to its best advantage
Weird (adj.): odd, strange, unusual
Mock (v.): to treat somebody with scorn or contempt
Rigidify (v.): to become inflexible or unchangeable

Activities

1. Find out the definition of labour and labourer as given in the Labour Act. Share it in the class.
2. Write a letter to the Labour Minister about improving our economy and creating the environment

whereby migrating youths should stay back in Nepal and get engaged in the economic activities.
3. “I do not want to do such low level work. I am not a low-born person; I want to do something big,

something bossy.” If your friends speak like this, explain how you will convince him/her about
the dignity of work. Make a list of important explanations and suggestions which you will use to
change his/her attitude towards work.
4. Make a list of those professions and occupations which are not liked much by your community
people. Present the list in the class.

Exercise

1. Briefly explain the types of labour.
2. “Production is simply not possible without labour.” Justify this statement with appropriate

illustrations.
3. “Labour creats the employment.” How far do you agree with this statement? Clarify with

examples.
4. Labour is needed for increasing the level of production. Prove the statement with the help of

examples.
5. If dignity of labour comes into practice it will solve the problem of unemployment to a great

extent. Critically examine the statement.
6. Assess the ‘profile of labour-force’ in Nepal and their potential to develop the country.
7. Differentiate between the following:

a) Manual and Mental labour
b) Skilled and Unskilled labour
c) Productive and Unproductive work

Community Work

Visit at least five families living in your neighbourhood and find out what ocuupations or professions
or jobs their family-members are involved in? Make a list of that. Also, conduct a survey to see the
value attached to different works in a society to prepare a report on the topic, “Work-type and social
respect’ to check the existence of the feeling for the dignity of work.

379<< Nova Social Studies Grade-9

Unit

9

Our International Relations and
Cooperations

Learning Objectives:

At the completion of this Unit, students will be able to:
 Analyze the relationship and cooperation of Nepal with donor countries and

international institutions
 Appreciate Nepal as an active member of the United Nations Organization and describe

its role in the UNO
 Highlight the helps and facilities received from different foreign diplomatic agencies
 Illustrate the effects (impact) of contemporary international events on human life

Lesson Nepal’s Donor Countries and
Institutions
1

The first official diplomatic relationship of Nepal with United Kingdom (Britain) was established
in 1816 AD – the year of signing Sugauli Treaty between Nepal and United Kingdom (Britain). It
was the new beginning in Nepal’s history of political governance as Nepal was no more confined
within traditional mode of governance isolated from the rest of the world. Thus, the year 1816
AD is the benchmark which heralded the new era of formal diplomacy for Nepal with the outside
world to be a part of the international community. After that, Nepal has been in continuous
interaction with the international community at diplomatic level. Till the end of Rana-rule in 2007
BS (1951 AD), Nepal had aready established diplomatic relationship with countries like United
Kigdom, India, United States of America and France. On 12th April 2013 when Nepal established
the diplomatic relationship with Papua New Guinea, the total numbers of countries with which
Nepal has diplomatic relationship has gone on to become 138 (One Hundred and Thirty Eight).
In means time, Nepal and Britain celebrated 200 years of esblishment of diplomatic relations. An
international exihibition was organized by the Government of Nepal to highlight the different
facets of Nepal-UK relations. The exhibition displayed the foreign policy and basic foundations of
Nepal’s foreign policy. Contributions and helps extended by different countries were highlighted
in the exhibition with the help of models and illustrations. Various development projects and
programs assisted by multi-lateral institutions and other world financial institutions were also

380 Nova Social Studies Grade-9 >>

on display. The United Kingdom (UK) Foreign & Commonwealth Permanent Under-Secretary
and the UK Department for International Development (DFID)’s Permanent Secretary arrived in
Nepal for an official visit on June 7, 2016 to celebrate bi-centenary of Britain-Nepal diplomatic
relations.

Nepal’s Dplomatic Relations Celebrating bicentenary of UK-Nepal relations

Nepal’s foreign relations with countries around the world and with donor countries as well as
with several financial institutions operating at continental and global level depend upon effective
and smart diplomacy. What is diplomacy? Why a country needs diplomacy? Diplomacy is the
art and practice of making negotiations and developing understanding between representatives
of states (nations/countries). It is commonly known as international diplomacy. We find out
from the definition of diplomacy that the negotiations between two representatives of the states
are a key component in diplomacy. The negotiations between the two states in diplomacy must
find a common interest based on which a solution is offered in the interest of both sides. In
this way, diplomacy is the promotion of national interest by peaceful means through negations
between the states (countries). Diplomacy is as old as the existence of the human race. It is an
art of survival and getting things done without breaking individual relationship or cracking
the harmonious existence of human community. As no individual can live in isolation so is the
country (or nation). A country needs cooperation from other countries and from international
institutions in order to survive with peace, progress and prosperity. International community
consisting of governments around the world and global institutions makes it sure to promote
international peace and security for achieving economic and social development for the people
living in different countries. Diplomacy helps a country to achieve this goal. No country can
today claim to be totally self-dependent. Economic interest drives one country towards the
other for getting raw-materials, technology, capital and creating market for manufactured goods
and services. Globalization has brought the countries and their people together on one stage
where exchange of community participation, culture and sports have become essential way to
maintain country-to-country relationship. Education, tourism and foreign employment are other
areas where free movement around the world from one country to another country is necessary
and hence promoted. Diplomacy is the only way to ensure these needs in the interest of the
people. Now, people from different countries having different nationalities interact with each
other and work together. In a situation like this, diplomacy is an essential tool for maintaining
reasonable relation between man and man and between a nation and nation. Without diplomacy,
international organizations and established pattern of the peaceful world would not exist and
smaller countries would not exist at all as more powerful countries would use war to threaten
them. Therefore, diplomacy also prevents war and violence between the countries.

381<< Nova Social Studies Grade-9

Basic foundations for Nepal’s foreign policy:

Nepal is a small landlocked country. Nepal is situated between two powerful nations: China
in the North and India in the South and in other two remaining sides. From the time of Prithvi
Narayan Shah until the 2nd Mass Movement in 2062 BS (2006 AD), Nepal has been perceived as a
“yam squashed between two boulders”. But after the declaration of Federal Democratic Republic
of Nepal, the country has been pursuing the foreign policy of being a bridge between two giant
countries and big markets – China and India. Nepal looks forward to maintain a transparent and
dignified relationship with all countries. After the end of Rana rule and introduction of democracy
in 2007 BS, Nepal has based its foreign policy on the objectives laid down in the United Nations
Charter, non-alignment, PANCHSHEEL (five principles of peaceful coexistence), international law,
the value of world peace and other universally recognized norms. Following are the objectives of
Nepal’s foreign policy:
 To enhance the dignity of Nepal in the international arena by protecting and maintaining the

sovereignty, integrity and independence of the country,
 To promote bilateral, regional and multi-lateral relations for the socio-economic development

of the country,
 To promote friendly relations with all the countries of the world and particularly with its

immediate neighbors, on the basis of sovereign equality, mutual respect, trust, goodwill and
understanding,
 To play an active role in the United Nations and other international organizations in order to
promote international peace and security, and development,
 To play a positive and meaningful role in the Non-aligned Movement in the context of a
changed world,
 To play an active role in the promotion of regional cooperation in South Asia under the South
Asian Association for Regional Co-operation.

Guiding Principles: The basic principles guiding the foreign policy of the country to achieve
above stated objectives include:
1. Mutual respect for each other’s territorial integrity and sovereignty
2. Non-interference in each other’s internal affairs
3. Respect for mutual equality
4. Non-aggression and the peaceful settlement of disputes
5. Cooperation for mutual benefit

United Kigdom India China

Now, let us appreciate the couributions made by some of the friendly countries and other multi-
lateral institutions to Nepal’s development:

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1. Nepal and United Kingdom
Diplomatic relation established in 1816 AD
Contributions and help from United Kigdom to Nepal:

• Road segment from Narayangadh to Butwal and from Dharan to Dhankuta
• Agricultural Research Centre, Pakhibas (Dhankuta) and Lumle (Kaski)
• Budhanilakanth School, Kathmandu
• British Library
• Recruitment in British Army
2. Nepal and India:
Diplomatic relation established on June 13, 1947
Contributions and help from India to Nepal:
• Soft loans to Nepal at very low enterest (say 1 to 2% of interest rate).
• Annual grant to Nepal sanetiored by India Parliament (in Budget)
• B. P. Koirala Institute of Health Sciences, Dharan
• National Trauma Centre and Bir Hospital, Kathmandu
• East-West Highway (some segments)
• Trishuli-Devighat Hydroelectricty Centre, Nuwakot
• Manmohan Memorial Polytechnic, Morang
• Mahendranagar-Tanakpur Link Road
• Pharbiiisgunj-Biratnagar Railway Link
• Ambulance distribution to several hospitals and institutions
• School-bus distribution to several schools
• Scholarship to several students for pursuing study in India
3. Nepal and China:
Diplomatic relatin established on August 1, 1955
Contributions and help from China to Nepal:
• Prithvi Highway, Araniko Highway, Construction of ring-road in Kathmandu and its

upgradation
• Trolley-bus service from Tripueswor to Suryabinayak
• Sunkoshi Hydroelectricity Project
• Hetauda Cotton Industry, Bhrikuti Paper Mills, Bhaktabur Brick Factory, Harisiddhi

Brick Tiles Factory, Bansbari Leather Shoe Industry
• Civil Hospital in Kathmandu, B. P. Koirala Cancer Hospital
• Birendra International Conference Centre

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• Scholarship to several students for pursuing study in China
Apart from above-mentioned countries, Nepal maintains bilateral diplomatic relations with

other countries such as United States of America, Japan, European Union and several others.
Nepal has maintained very productive economic relationship with multi-lateral financial
institutions operating at global level and regional level in Asia. Let us find out as given
below:
1. Nepal and the World Bank:
Date of taking membership of the World Bank: September 6, 1961
Projects which were completed with the cooperation of the World Bank:
• Several Highways, Irrigation Projects, Drinking Water Projects
• Nepal Industrial Development Council
• Kulekhani Hydroelectricity Project
• Agriculture-labour or manpower development
• Reconstruction of schools damaged by the earthquake
• Basic and primary education
2. Nepal and Asian Development Bank
Year of taking membership of Asian Deelopment Bank: 1966 AD
Contributions and help from Asian Development Bank to Nepal:
• Improvement in method and style of “Auditing” in public sectors, institutions and

agencies
• Community level drinking water projects and other related sanitation projects
• Capacity enhancement in use of drinking water in Kathmandu Valley
• Teaching-learning programs
• Institutional copperation in areas of developing hydroelectricity
• Institutional copperation in areas of developing Hydroelectricity

Besides the above-mentioned two multi-lateral institutions, there are other institutions which
are operating at global and Asian level. Nepal has been taking help and support consistently
in various development programs and projects. These institutions are International Monetary
Fund (IMF), World Trade Organization (WTO), Organization of Petroleum Exporting Countries,
SAFTA, SAARC and BIMSTEC.

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Activities

1. Do self-reseach and prepare a profile on Nepal’s relationship with United States of America,
Japan, South Korea, Malaysia, Israel and European Union. Also highlight the contributions of
these countries in Nepal’s development.

2. Discuss the role played by Nepal in SAARC. Evaluate the benefits that Nepal has received being
the member of SAARC.

3. Divide your class into three groups and discuss the significance of “International relations,
understanding and cooperation”.

4. Fill in the blanks below with correct information:

Country or Institution helping Nepal Areas of Cooperation and Help
1.
2.
3.
4.
5.

Exercise

1. Explain the meaning, nature and scope of ‘International relation and cooperation’.
2. From when did Nepal begin its foreign relationship? What are the basic foundations for Nepal’s

foreign policy?
3. Enumerate the major objectives of Nepal’s foreign policy.
4. There are mainly five basic principles which guide the foreign policy of Nepal. Name these

guiding principles.
5. What is diplomacy? Explain why a country requires successful diplomacy for its development.
6. Highlight the development of Nepal’s international relations and its foreign policy in points.
7. Which areas in Nepal have attracted more international cooperation? Explain by giving reasons

why these areas have invited more attention from friendly countries and other international
institutions.
8. Diplomacy is as old as the existence of the human race. Analyse with illustrations.

Community Work

Select at least one country which has not been discussed in the present chapter from each continent
except Antarctica with whom Nepal has maintained ‘international relation and cooperation’. Highlight
the areas of cooperation between Nepal and the country you have chosen. Write a letter separately to
the Head of State of these countries expressing your gratitude and feelings of pride as a student to
have the country as a friend of Nepal. Also, give your suggestions if you feel as to how to broaden this
relationship between the two countries.

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Lesson Nepal in United Nations
Organization
2

The United Nations Organisation (UNO) is the global organisation of sovereign independent
states. The headquarters of UN is located in New York, the USA. The UNO officially came into
existence on 24th October 1945 after World War II in order to save the world from war of similar
magnitude in future. Every year, 24th October is celebrated as the United Nations Day. It is
an inter-governmental organization which promotes international peace, understanding and
cooperation. Nepal chose to join UNO on December 14, 1955. There are 193 countries as United
Nations (UN) member states. Each of them is a member of the United Nations General Assemly
popularly know as World Parliament.
All nations have pledged themselves to the UN Charter. The Charter is the Constitution of
the UNO.  The purposes of the UN are defined in Article 1 of the UN Charter. Purposes like
maintaining international peace and security, taking adequate steps to avert wars, developing
friendly relations among nations on the basis of equality, achieving international co-operation in
solving international problems guide the actions of UNO and its member-states. United Nations
Charter is one of the most important foundations for Nepal’s foreign policy. Nepal is fully
committed to UN Charter and has remained active at international level through several activities
organized by the UNO. Nepal’s involvement in peace-keeping operations at international level
began just three years after joining the UNO.

Nepal sent five observers from Nepal Army to UN Military Observation Group in Lebanon in 1958
AD. The first Nepalese battalion-sized contingent, the Purano Gorakh Battalion, was deployed in
Egypt with UNEF II (United Nations Emergency Force) in 1974 AD. Nepal further contributed by
sending the army men to Lebanon in 1978 AD to deal with security problems between Lebanon
and Israel. Nepal has been regularly contributing to UN peace-keeping operations around the
world. Lately, even Armed Police Forces and Nepal Police have joined the Nepal Army in sending
peace-keepers to UN missions in different countries like Burundi, Sudan, Chad, Liberia and Haiti.
Impressed by Nepal’s performance, UN Secretary General appointed Major General Paban Jung
Thapa of Nepal Army as Force Commander of the United Nations Mission in Sudan (UNMIS)
in 2008 AD. Nepal’s contributions to UNO have diversified into other organs like Economic and
Social Council (as non-permanent members) and other specialized agencies affiliated with UNO.
Nepal had played important role in getting the special report passed against racial discrimination
(apartheid). Further, Nepal, as a non-permanent member of the Security Council, had played

386 Nova Social Studies Grade-9 >>

supportive role in getting the World Report prepared on “Disarmament and Ban on Nuclear
Weapons”. In order to get more secured at international political platform Nepal has always
been supportive of China’s status of being permanent member in Security Council. Nepal has
been lobbying for several concessions and rights to be given to “Land-locked Counties” around
the world. Nepal participated in the Paris Convention on Climate Change in 2015 AD and voiced
its concern over climate change. Nepal has been a leading voice on the problems and challenges
being faced by the LDCs (Least Developed Countries). Nepal has been leading these LDCs to be
united in their concerns and issues at the international level. This is how Nepal has made positive
contributions towards achieving international peace and security.

UN Help to Nepal

UNO has always helped Nepal in the most critical political situation and has extended full support
in the country’s social and economic development. UNO has been very supportive of democratic
movement in Nepal, the peace process after 10 years of armed conflicts between the Maoists and the
Government, and the adoption of the Constitution of Nepal by the elected Constituent Assembly.
UNO had set up a special political mission called UNMIN (United Nations Mission in Nepal) in
Nepal in support of the peace process in January 23, 2007 AD at the request of the then Seven-
Party Alliance Government and the Communist Party of Nepal (Maoist). UNMIN assisted Nepal
in monitoring the management of arms and armed personnel of the Nepal Army and the Maoist
Army. It provided technical assistance to the Election Commission in the planning, preparation
and conduct of the election of Constituent Assembly in a free and fair atmosphere. UNMIN stayed
in Nepal till January 15, 2011. UNO has been consistently working in Nepal for empowering
women, protecting and preserving human rights and saving the children from slavery and so on
through the presence of several specialized agencies. Some of the specialized agencies working in
different areas of development in Nepal are FAO (Food and Agricultural Organization), UNAIDS,
UNDP (United Nations Development Programme), UNFPA (United Nations Fund for Population
Activities), UNHCR (United Nations High Commission for Refugees), ILO (International Labour
Organization), UNICEF (United Nations Children Fund), UNESCO (United Nations Educational,
Scientific and Cultural Organization), WHO (World Health Organization) and UNODC (United
Nations Office on Drug and Crime).
We expect similar kind of cooperation between UNO and Nepal in the time to come.

Activities

1. There may be someone who has returned from UN peace-keeping operations in your community.
If such a person is present in your community, then meet him and enquire about the type and
nature of work he was doing there. Ask questions about the type of international conflicts where
peace-keeping operations are launched by UNO and how UN peace-keeping forces successfully
accomplish the task. Prepare the note and share the same in your class.

2. Collect all the news related to participation of Nepal Army and Armed Police Force in UN peace-
keeping operations and prepare a decorative file titled “UN Peace-keeping Operations and
Contributions of Nepal”. Use various types of statistical devices like pie-chart, bar-diagram and
others in order to achieve clarity of presentation and description. Present your work in the class.

3. Analyze the causes of breakdown of ‘peace and order’ in your society/community. Explain
how ‘peace and order’ is restored in your community. Interview the elderly people, teachers,
bureaucrats, social activists and politicians to develop complete understanding of the subject
matter in hand.

387<< Nova Social Studies Grade-9

Exercise

1. Briefly introduce the UN peace-keeping mission.
2. Explain in a paragraph why there is a need (requirement) for UN peace-keeping missions.
3. Present your views on what Nepal needs to do in order to play more effective roles in UN

activities.
4. UNO has been consistently helping Nepal in all the possible ways it can. Justify the statement

with appropriate illustrations.
5. Do you aspire to serve in UN peace-keeping mission? If yes, then give reasons for such an

aspiration. Which area or department of UN peace-keeping mission would you like to serve?

388 Nova Social Studies Grade-9 >>

Lesson Nepal’s Contributions to Maintenance
of International Peace
3

Nepal has been consistently contributing to UN peace-keeping missions in different parts of
the world since 1958 AD. Nepal is one of the largest ‘peace-keeping’ contributors to the United
Nations. Nepal and its peace-keepers are invaluable in maintaining world peace efforts. Nepalese
peace-keepers work in accordance with the guidelines given by the ‘Department of Peace-keeping
Operation’. Important guidelines for the UN peace-keepers include identification of the conflicts
which demand intervention, resolution of the conflicts, doing works for public welfare and the
help extended to the Government in conducting free and fair elections. These guidelines observed
(followed) during peace-keeping operations have helped in establishing and maintaining peace
in conflict-ridden countries.

UN peace-keepers discharging their duty for maintaining international peace
Apart from the above stated work, Nepal has also been active in making the world free from
nuclear arms and the cold war. Nepal has worked for ending racial discrimination and colonialism
in all the forms and colors. Nepal advocates for sovereign equality of all the nations – big or small,
developed or underdeveloped and democratic or non-democratic in geographical, economical
and political composition respectively. Therefore, Nepal has raised its voice against supression,
exploitation and humiliation meted out by one country to another. Nepal has always been against
inhuman treatment of the citizens in the hands of its political class or war perpetuated (imposed)
by one country upon another just to enforce the unilateral dictates. Nepal has earned several
positions under different organs of UNO and has served those positions with total commitment
and sense of responsibity. In doing so, Nepal has enlivened with its qualities of impartiality,
fearlessness and competency in discharging the duty at international platforms and in the dealings
with the international community. Nepal has received appreciation of the world community for
the efficiency and the honesty of its work in different capacities performed under the banner of
UNO. Nepal, due to its work, has been able to stand with pride and dignity in the international
community.

Nepal’s contributions in maintenance of international peace and security

1. Nepal was elected to the post of Vice-President of General Assembly in 1958 AD.
2. Nepal played an important role while drafting a report on ‘Discrimination against Race and

Colour’ in 1966 AD.

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3. Nepal was elected as one of the members of non-permanent members in the Security Council
in 1968 AD.

4. Nepal has firmly stood for the elimination of weapons of mass destruction - chemical,
biological and nuclear in nature. Nepal is a signatory to NPT (Nuclear Non-Proliferation
Treaty) and CTBT (Comprehensive Nuclear Test Ban Treaty).

5. Nepal has been happy and eager to host the UN Regional Centre for Peace and Disarmament
in Asia and the Pacific in Kathmandu. This shows how Nepal is sincere and committed to the
cause of ‘world peace’.

6. Nepal has served as a member of the management council UN Special Fund and a Study
Committee on Apartheid in South Africa. Inclusion of Nepal proves its credentials for being
a peace-loving country.

7. Nepal has always been sincere for the protection and promotion of human rights within and
outside the country. Nepal is one of the nations to sign the Universal Declaration of Human
Rights proclaimed by the UN General Assembly on December 10, 1948.

8. Nepal has been raising its voice in UN sessions and other meetings for the protection of
the rights of small landlocked countries and Landlocked Developing Countries for getting
access to the sea and transportation rights from the third country.

9. Nepal has been demanding technological and financial contributions from the developed
countries for the Least Developed Countries in dealing with natural and man-made disasters,
for economic development and fighting with the side-effects of ‘Climate-Change’.

Nepalese soldiers ready to discharge their duty as peace-keepers in UNO
Words and Terms you would like to know:
Colonialism (n.): a policy in which a country rules other nations and develops trade for its own benefit
Respectively (adv.): correspondingly
Mete out (v.): to give out something such as punishment in a way that is harsh or unfair
Enliven (v.): invigorate; to make somebody or something more lively or interesting
Apartheid (n.): a political system in South Africa from 1948 to the early 1990s that separated the different
peoples living there and gave privilege to those of European origin (popularly called Whites)

390 Nova Social Studies Grade-9 >>

Activities

1. Prepare a news report on the contributions made by the ‘Nepal Army’ in World Peace Mission.
2. Mention Nepal’s activities in the maintenance of world peace and security in the blanks given

below along with the effects of such activities:

Nepal’s Activities (Contributions) Effects of Such Activities on the World
1......................................
2.......................................
3.......................................
4.......................................

3. Discuss the causes of international conflicts in the class and work out their possible solutions in
peaceful manner.

Exercise

1. Enumerate Nepal’s contributions in the maintenance of international peace and security.
2. Highlight the guidelines according to which UN peace-keepers operate to maintain international

peace and security.
3. Nepal stands with pride and dignity in the international community. Evaluate the statement.
4. What do you understand by the following terms?

Apartheid, Colonialism, Sovereign equality of nations, Disarmament

Community Work

There could be a person in your community from Nepal Army or Armed Police Force or Nepal
Police who has come back after serving as UN peace-keeper. Or, there could be a retiree who had a
chance to serve in UN Peace-keeping Mission. Meet them to understand the nature of international
conflicts which disrupt peace and order of a country. Find out the causes of such conflicts. Consult the
newspapers, journals and other magazines and watch radio bulletins to get the news on international
conflicts and disputes from different parts of the world. Do research on the roles and contributions
made by the UN Peace-keeping Forces in maintaining international peace and security. Lastly, write a
detailed essay on the topic “International Conflicts and UN Peace-keeping Missions” with conclusions
at the end.

391<< Nova Social Studies Grade-9

Lesson

4 Diplomatic Missions

All the countries (states) in the world send diplomats to each other with a view to expand and
deepen their mutual relations for creating understanding and cooperation at economic, political
and social levels. For that matter, two countries (states) establish diplomatic relationship by setting
up ‘diplomatic mission’ in each other’s country. Who is a diplomat? What is diplomatic mission?
A diplomat is someone who is officially appointed by a country (nation state) to represent and
protect that country’s interests abroad (in foreign lands). International law recognizes four ranks
of diplomats that include ambassadors, envoys, ministers, and  charge d’affaires. In modern
diplomacy, there are a number of ranks below ambassador. A diplomatic mission is a group
of people from one state (country) or an international inter-governmental organization (such as the
United Nations) present in another state (country) to represent the sending state/organisation
officially in the receiving state. In practice, a diplomatic  mission usually denotes the resident
mission but it may also be a non-resident permanent mission to one or more other countries. The
resident mission serves as the office of a country’s diplomatic representatives located usually in
the capital city of another country. Thus, diplomatic missions are both resident and non-resident
embassies. A permanent diplomatic mission is commonly known as an embassy and the head of
the mission is called an ambassador. A consulate (or consulate-general) is similar to (but not the
same as) a diplomatic office. The person in charge of a consulate or consulate-general is known as
a consul or consul-general, respectively. A consulate focuses on dealing with individual persons
and businesses. A consulate or consulate general acts as a representative of the embassy in locales
outside of the capital city of receiving country. Therefore, consuls represent their state (country)
in a number of administrative ways but they do not enjoy the diplomat’s political functions. In
cases of dispute between the two countries (states), it is common for a country to recall its head of
mission as a sign of its displeasure. This does not mean cutting diplomatic relations completely.
In such a situation, the mission will still continue its diplomacy headed by a charge d’affaires
(known as the deputy chief of mission) but will have fewer powers than the ambassador.
Nepal has diplomatic relations with a total of 138 countries (states) out of which only 26 countries
(states) have embassies as the permanent diplomatic mission to represent Nepal in those countries.
In other countries, Nepal has set up consulates in accordance with the need and necessity.
Similarly, 29 foreign countries have established their own embassy in Nepal. Having embassy
in a country promotes trading relations between the two countries, eases the citizen’s tour and
travel in a host country and finally it works in balancing the political power between the home
and the host countries. However, all the countries having diplomatic relations between them do
not prefer to establish embassy, rather they go for setting up ‘Consulate-General’ or Consulate.
If a friendly country has an embassy in a country, then neighbouring countries may use that
embassy to protect their national interest and interest of their citizens in foreign countries.

Ambassador's role in diplomacy

An ambassador is an official envoy who represents the sending state in another sovereign state.
A country (state) appoints an ambassador with necessary staff of officials to assist him/her in a
foreign country. An ambassador in Nepal is appointed by the President (the head of the state) fully
guided by the Council of Ministers headed by the Prime Minister. It means that Priume Minister
and the Cabinet have full authority to elect ambassadors for different countries to represent Nepal.
An ambassador is the top diplomat and head of the diplomatic mission located in a receiving (host)

392 Nova Social Studies Grade-9 >>

country. S/he has a range of activities to perform in capacity of being a top diplomat representing
and protecting the interests of his/her home country in the foreign land. S/he discusses bilateral
issues, strategic agreements, treaties and conventions which involve the two countries (both the
sending country and the receiving country). S/he promotes flow of information, trade and commerce
between the countries for strengthening the friendly relations between the two countries. An
ambassador holds meetings with members and institutions of the business community, NGOs, and
civil society as well as the media, academia and the artistic world to create links through common
ideals and actions. Therefore, an ambassador works with the Government and with those who are
active in society outside the Government of the receiving country. An embassy issues visa to those
who want to travel the sending or home country and helps its own citizens who need help in the
receiving or host country.

Functions of Diplomatic Mission

The main functions of diplomats are to represent the sending or home country (state) and protect the
interests of nationals of the sending or home country (state) in the receiving or host country (state).
Following are the major functions of a diplomatic mission in a receiving or host state (country):
1. Represent the home country in the host country
2. Protect the interests of the home country and its citizens in the host country
3. Negotiate with the government of the host country
4. Monitor and report on conditions and developments in the commercial, economic, cultural,

and scientific life of the host country
5. Promote friendly relations between the host country and the home country
6. Develop commercial, economic, cultural, and scientific relations between the host country and

the home country
7. Issue passports, travel documents, and visas

Thus, diplomatic missions of different countries ensure personal security to their own citizens,
resolve the conflicts of their citizens with government departments and non-government authorities
at different levels like work place, tour and travel issues and so on. Diplomatic missions look into
the complaints of their own citizens and reach out to them in time of distress and crisis by arranging
for their safe return to the home country. Diplomatic mission takes a lead in organizing trade fairs,
economic promotion activities, cultural fests and festivals in host country. Diplomatic mission
represents the home country in case of signing treaty or bilateral agreement on different subjects
with the host country. Diplomatic mission clears the confusions and suspicions between the citizens
or between the two governments of home and host countries or at any other level. Diplomatic
missions function for mending the fences between the countries not to break it. Diplomatic missions
work in accordance with internationally approved diplomatic norms, values and principles. These
missions respect the sensibilities of the host country and hence repect the sovereignty, national pride
and territorial integrity of the host country.

Countries having Nepalese Embassy:
India, Sri Lanka, China, Japan, Malaysia, Myanmar, Egypt, Qatar, Brazil, Canada, and thus in total
26 countries around the World
Countries having Consulate of Nepal:
Hongkong, Lhasa (China), Kolkota (India), New York (USA)
Residential Embassies in Nepal:
Australia, Bangladesh, China, Denmark, France, Germany, India, Japan, Russia, United Kingdom,
Norway, Malaysia, United States of America and thus in total 29 countries from around the world

393<< Nova Social Studies Grade-9

Words and terms you would like to know

Embassy: A diplomatic mission located in the capital city of another country which generally offers a
full range of services, including consular services. Embassies are the examples of permanent diplomatic
missions.
Permanent Mission: a permanent mission to a major international organization
Consulate General: a diplomatic mission located in a major city, other than the capital city, which provides
a full range of services, including consular services
Consulate: a diplomatic mission that is similar to a consulate general, but it does not provide a full range
of services
Diplomatic Immunity: Diplomatic immunity is a principle of international law by which certain foreign
government officials are not subject to the jurisdiction of local courts and other authorities. Diplomatic
immunity is not meant to benefit individuals personally, it is meant to ensure that foreign officials can do
their jobs.

Activities

1. Explain the benefits and advantages which Nepal has received in socio-cultural development of
the country from different diplomatic missions located in capital city, Kathmandu.

2. Diplomatic mission plays an important role in enhancing the multi-dimensional relationship
between the two countries. Present your answer in clear points as to how diplomatic mission
does it.

3. Prepare a news report on the role played by a diplomatic mission of Nepal to boost the national
image and countrymen’s pride in foreign land.

Exercise

1. Define a diplomat and a diplomatic mission.
2. Distinguish between the following:

a) Resident and Non-resient Embassies
b) Ambassador and Charge d’affaires
c) Consulate and Embassy
3. How are ambassadors appointed in Nepal? What are the important functions discharged by an
ambassador?
4. Make a list of functions performed by a diplomatic mission.
5. Write the names of at least 10 countries having residential embassies in Nepal.
6. What is diplomacy? How many ranks of diplomats have been recognized by an international
law?
7. An ambassador can make or break (mar) the relationship between two countries. Justify the
statement with appropriate illustrations.

Community Work

There could be a person who has served as a diplomat of Nepal in foreign countries or in an international
organization. Have an interaction with him in order to know the kind of facilities a diplomatic mission
provides to a diplomat. Enquire about problems and challenges faced by a diplomat during the course
of discharging his/her functions and responsibilities. Collect the information from other sources too.
Based on the interaction with the diplomat and the collection of information from the other sources,
prepare a detailed essay on the topic “Diplomacy, Diplomat and Diplomatic Mission: Present Problems
and Challenges.”

394 Nova Social Studies Grade-9 >>