Nepalese economics 11 class-merged

overview 6:42 PM

Thursday, October 29, 2020

Explain the overview of Nepalese Economy

Overview of the Nepalese economy:

Nepal is small land locked country with an area of 147,516 km2 situated between two powerful
country India and china. 60.4% of people are getting employment form agriculture but its
contribution from agriculture on GDP is 27.1% (economic survey 2019\20) There is huge
disguised unemployment, rural indebtedness’, mass poverty dual ownership of land, law
productivity. 16.7% people are living below the poverty line. HDI value of Nepal is 0.574. Per
capita income of is $1097.

The industrial sector provides employment less than 2 percent of the total labor force. Its
contribution to GDP is around 5%. Lack of adequate supply of power expensive price of
electricity unavailability of infrastructure depend upon imported raw maters tough competition
with foreign countries etc. are problems of industrial sectors

According to economic survey 2019/20 the growth rate of Nepal is 2.3% the trade deficit has
growth to 84933.5 crores.
constraint of Nepalese economy are
1) landlocked
2) difficult topography
3) high poverty
4) underutilization of natural and human resource
5) corruption
6) absence of good governance
7) frequent change in government
8 low productivity of agriculture and industry
9) uncertain market.

Potentiality of Nepalese Economy

→ Water resources
→ Tourism development
→ Management of human resources and remittance

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→ Management of human resources and remittance
→ Bio-diversity
→ Modernization of agriculture

Explain the characteristics of Nepalese Economy

Characteristics of Nepalese Economy

The major characteristics of Nepalese economy are are as follows:

1. Subsistence agriculture system:

2. Mixed Economy: Nepal is agricultural country .more than 60% active people are
getting employment and livelihood from the agriculture. They produce goods
for their self-consumption .sometime their product is not sufficient for
themself. The contribution of GDP is about 27%

3. High unemployment :Nepal is agricultural country .so, high rate of seasonal
unemployment, disguised unemployment is in Nepal. Industrial development is not
sufficient. Every year around 5 lakhs new job seekers are enter in the market.
Everyday 1500 abroad for job.

4. unequal distribution of resource: The distribution of land , building and other assets
are unequal . Few people have more assets and more people are serving with less
assets

5. lack of proper utilization of natural resources :Nepal is very rich in natural resources
like: water mineral forest .Due to lack of capital ,lack of technology ,lack of
technician, lack of political instability. But its uses is very less.

6. High rate of poverty. Around 16.7% people are living below the poverty line .In
some district there is mass poverty. The people who are just above poverty line also
depending on remittance. It may not long lasting .

7. Land locked country

8. Import based economy

Major economic indicator of Nepal

GDP, GNP, per capita income(PCI) and price level are major economic indicator of
Nepal

1. Gross Domestic product(GDP):the total market value of all currently produced final
goods and services within the boundary of a country in a year is called GDP.
According to economic survey GDP of 2017/18 is Rs 3045 billion, GDP of 2018/19 is
Rs 3459 billion . GDP of 2019/20 is 3767.

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Rs 3459 billion . GDP of 2019/20 is 3767.
2. Gross national product(GNP)the total market value of all currently produced goods

and services with in nation plus net factor income from abroad (NFIA) is called
GNP .According to economic survey GNP of 2017/18 is Rs 3068 billion, GNP of
2018/19 is Rs 3499 billion . GDP of 2019/20 is 3810.
3. Per capita income(PCI):the average income of a national per time period i.e. within a
year is called PCI. According to economic survey PCI of 2017/18 is $ 1009, PCI of
2018/19 is $ 1050. PCI of 2019/20 is $1097.
4. Price level: The average price of all the goods and services of a nation is called price
level. The annual percentage change price in 2017/18 is 4.2 The annual percentage
change in price in 2018/19 is 4.5 .The annual percentage change in 2019/19 is 6.5.

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Natural resource

Wednesday, December 23, 2020 6:41 AM

Natural resources of Nepal

Meaning of natural resources: natural resources may be regarded as free gift of nature to the human begins for
fulfilling its certain basic needs of life. In other words, the naturals resources include all the properties of nature
found on land, water, and in the air of country given by nature as free gift. Hence natural resource includes a
country’s land, soil, minerals, water, climate which play a very important role in the economic development of a
country. Natural resource classified into renewable and non-renewal resources.

Water resources: water resource is the most important natural resources of Nepal. it is second richest country in
the world on the basis of water resource. High Himalia rivers rivulets lakes rainfall, glaciers and underground
water are the major sources of water
Explain the role of water resource in economic development of Nepal
Or importance of water resource

Water resource is very much important for the over’s economic development Nepal. Nepal has been designated
as the “water resources capital of south Asia”. The roles of water resource in the Nepalese economy are as
follows

1) Development of agriculture sectors: water resource in the basis of irrigation and irrigation is the life blood of
agriculture. Adequate provision of irrigation helps to diversify crops and to increase agricultural productivity. The
development of irrigation and modernization of agriculture depend directly on water resources

2) Development of industrial sector: a large amount of fuel is needed to generate power for industrial
development. The cost of petroleum product is hug as compares to electricity. The heavy machinery of large-
scale industries cannot operate without electricity. Generating adequate electricity from rivers of Nepal can
develop industrial sectors of Nepal

3) Development of tourism: Nepal is rich in rivers, lakes, waterfalls and ponds tourist visit Nepal for rafting, boating,
fishing. water resource generates electricity which in turn help to develop transportation, communication and
hotels. These are essential to develop tourism industry.

4) Development of alternative transport and communication: electricity substitutes the use of petroleum and coal.
The means of transportation such as trolley bus ropeway, cable car etc. may be developed by using hydropower.
water resource is also use for the development water transportation like rafting and shipping. The means of
communication such as telephone, internet, fax, radio, T.V. etc. may also be developed by the use of
hydropower.

5) Basis of health: development of water resources helps to provide pure drinking water which is the basis of
healthy life. This not only helps to increase the productivity of labour but also to raise the stander of living.

6) Others important i) basis of forest conservation ii) employment promotion iii) export promotion
Potentiality of hydroelectricity in Nepal.

Nepal is rich in water resource. Nepal is second to brazil in the word with respect to water resource. Major
source of water resource in Nepal are rivers lake and underground water. There are about 6000 river and
rivulets in Nepal. most of the rivers are originates from mountain. Gandaki, Koshi karnali and mahakali are
the main river. Most of the river in Nepal are originated from mountain. They reach the tarai from deep

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the main river. Most of the river in Nepal are originated from mountain. They reach the tarai from deep
narrow mountains with high speed. Therefore ,electricity may be produced easily by erecting dam in this
river. Nepal possess about 2.27% of total potentiality of the world’s hydropower.
The total potential of the hydropower in the country is estimated at 83,000 megawatts. However, the
economically feasible potential is 44,370 MW i.e. this much of the electricity can be good return according to
the investment

River system Theoretical potentiality Techno economic Potentiality

Koshi system 22,000 10,860

Gandaki system 21,000 5,270

Karnarli 36,000 27,360

other 4,000 880

total 83,000 44,370

Current situation of water resources of Nepal

Nepal is rich in water resource. Most of the river in Nepal are originated from mountain. They reach the tarai
from deep narrow mountains with high speed . So ,It has high potentiality on hydroelectricity, irrigation and
drinking water

current situation of hydroelectricity : Total potentiality of hydroelectricity of Nepal is
Problems of water resource development in Nepal .The total potential of the hydropower in the country is
estimated at 83,000 megawatts. However, the economically feasible potential is 42000 MW . By the end of
2019/20, 1233 Mw has been generated from all projects.
It is 1.5% of total potentiality. 90% of total population is getting electricity facility
The major Hydroelectricity project of Nepal are

Name of project capacity

kaligandaki 144

Middle Marsyandi 79

Marsyandi 69

Kulekhani I 60

Kulekhani II 32

Trisuli 21

current situation on irrigation :- underground water and surface water is the main source of water of
Nepal .irrigation facility is lifeblood for agriculture. About 50 % of the arable land has irrigation facility and
remining land depend on monsoon. Only 30% of arable land has year round facility .The major irrigation
project of Nepal are
• Bagmati irrigation Project
• Mahakali irragation Project
• Narayani irration Project

current situation on Drinking water : People are using surface and underground water . 90% people had

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current situation on Drinking water : People are using surface and underground water . 90% people had
access to pure drinking water .There is acute shortage of water in urban and rural area. About 50 % people
are getting pipe line water others are getting from well ,tube well, spring etc. Melamchi drinking water
project is on process of construction .

What are the problems of water resources in Nepal

Though Nepal has high potentiality of water resource. We have not properly utilized it due to many problems
same of the major obstacles or problems in the development of the water resource in the county are as
follows:

1. Lack of capital: the Nepal government has no adequate capital to invest in hydroelectricity an irrigation project.
Likewise. The financial sectors are not able to invest huge amount of capital in the construction of electricity
projects. All big hydroelectricity projects have been completed with the help of foreign assistance.

2. Lack of technology and technicians: technical knowledge and technicians are essential in order to develop water
resource. But Nepal lacks such knowledge and technicians. so. Nepal has to buy technician at high cost from
other countries.

3. Lack of infrastructures: the infrastructure facilities like transportation. Communication. electricity etc. essential
for the development of water resources in country. Nut. These facilities have not been adequately provided
throughout the country. This has hindered the timely construction of irrigation and hydroelectricity projects and
maintenance of it.

4. Lack of market: market of water resource product is limited. Purchasing power of Nepalese people is very low.
There is lack of clear government policy on power trading. Only foreign market is India. But India policy is not
favorable to Nepal.

5. Uneven physiography : the geographical disparity has affected the development of water resources in Nepal. The
rivers flowing in terrain region are not suitable for electricity and geographical situation of hilly region is not
suitable for transportation, communication and irrigation.
Forest resources
The forest is important natural resources in Nepal. It has an important contribution in the economic and
social development of the country. Forest is the renewable natural resources. Scientific management and
utilization of resources can accelerate the pace of development of the country. Forest resources are
considered perquisites for the development of agriculture ,industry, Water resources ,environment and
bio-diversity in Nepal. The role of forest sector in economic development as follows.

1. Main source of energy: In Nepal forest is the main source of energy. About 75 of total energy consumption in
Nepal is obtained from forest. It is also the basis for creating source of fossil fuel in the long run.

2. Source of raw materials: forest resource provides raw materials like timber, bamboo, herbs ,fibers, furniture,
paper etc., for forest-based industries in the country. It helps to accelerate the process of industrialization in
Nepal. About 7000 species of medicinal herbs nave been use for medicine.

3. Source of construction materials: the construction materials such as timber bamboo, hay supplied by forest.
Besides, forest provides the ply furniture, decorate materials to decorate the houses office etc. It helps to

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Besides, forest provides the ply furniture, decorate materials to decorate the houses office etc. It helps to
improve the living standard of the people.

4. Back bone of agriculture: forest is the mother of agriculture sector. Leaves, litter and animal bedding are
collected from forest which is source of compost manure. Forest helps to maintain the level of underground
water and keep intact in the air which supports the timely rain fall. forest is also the major source of dosser and
grazing land for cattle. forest provides the agriculture tools. forest can prevent soil erosion and landslides.

5. Basis of preserving natural ecosystem: Forest is the habitat for wild animals’ forest in the wild animal. Forest is
the source of oxygens, it supports most of the ecosystems and food chain. so, forest prevent precious species
from being extant which helps to perverse bio- diversity.

6. Other important of forest: i)promotion of tourist ,ii) source of employment ,iii) source of public revenue
Explain the causes of deforestation
The state of being clear of tree is called deforestation. Deforestation is the great problems of developing
countries like Nepal. The main causes of deforestation are as follows:

1. Source of livelihood: Forest is destroyed every year to make more space for cattle rearing, to construction of
houses, for agriculture and other many purpose. Due to limited employment opportunity, people collect herbs
and other forest products and make a living by selling them.

2. Migration: Due to the low productivity of agriculture and lack of employment opportunities in hilly area ,hilly
people migrate to the Tarai. The tendency of such migrated people id to live nearly forest area because of
availability of their daily needs for from forest without cost. Due to open boarder external migration is also one
of the causes of deforestation.

3. Lack of employment opportunities: In Nepal, majority of people are engaged in agriculture. Most of farmers are
seasonal unemployment and disguised unemployment. Due to the lack of alternative employment opportunities,
they use forest resources as source of extra income.

4. Lack of alternative source of energy: demand for energy consumption is gradually increased with increase of
population in a country. Due to the lack of petroleum product, coal and slow development of hydropower forest
sectors is the only one source which contributes about 80 percentage share of energy consumption alone. Due
to lack of high income, people cannot afford commercial energy like kerosene and gas. This is another cause of
deforestation.

5. Ineffective administration and forest management program: Due to lack of clear forest policy and weak
administration, poacher, an illegal trader is not properly punished. lack of training for man power of forestry
department and its user. The one of the causes of deforestation is political instability and its uncertainty etc.

There are other causes of deforestation such as high dependency of hill farming system on forest, illegal
trading, uneducated people, lack of public awareness, mining, construction of road etc.
Explain Consequences of deforestation
Consequence of deforestation are as follows
1. Natural calamities: deforestation leads to flood, landslides, deficiency of rainfall and various diseases. In this way
deforestation creates the situation of natural calamities .it means deforestation break natural balance.

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2. Environmental degradation: forest help to keep environment clean. deforestation causes climatic changed and
irregular rain fall. The harmful gases which increase due to growing deforestation also increase the green houses
effect which cause drought and floods soil erosion landslides etc.

3. Effect in social life: increase in global warming pollution, natural calamities, reduction in underground water
which badly effect the social life.

4. Disappearance of rare animals and pants: forest is the natural habitat of animals’ birds and plants.
Deforestation leads to disappearance of such rare animals and plants like elephant tiger, rhino etc. which have
adverse effect on tourism industry.

5. Effect on agriculture: the forest resources are related with agriculture in many ways. Deforestation causes soil
erosion ,over and under rain fall, deficiency of water ,shortage of agriculture tools which in turn decrease the
productivity and production of soil. Therefore, deforestation affects agriculture negatively.

6. Other effects: i) effects on industry ii)decline in underground water iii) adverse effect on national economy iv) `

Why is minerals resources important for Nepalese economy
Nepal is rich in mineral resources .It's contribution in GDP is only 0.6%. The scientific exploration and
exploitation of available mineral resources have following importance
1) Establishment of industries : proper utilization of available mineral resources help to established new
industries .A nation can establish key industries like : steel, iron, copper ,chemical, petroleum industries etc. by
using mineral resource:

2) Generation of employment opportunities : unemployment is becoming chronic problem in Nepal Established of
many industries provide many employment opportunities in the nation.

3) Sources of foreign currency earning : Nepal is rich in different types of minerals like iron copper marbles
petroleum etc. We can earn large amount of foreign currency by exploring them in foreign countries.

4) Modernization of agriculture: established of mine based industries help to produce modern agriculture tools
fertilizers etc. . It help for large scale production and modernization of agriculture.

5) Development of transport and communication: Modern means of transport (air surface and water transport)
and communication (radio, television , new paper etc.) are produced and operated by using various mineral
resources
mineral resource's also help for earning government revenue , self-dependency etc.

Problems of minerals resources development (answer) same as problems of hydroelectricity
Causes of environment pollution
1. Rapid population growth: Increased populations need food shelter to survive. Unmanaged use of natural
resource causes pollution.

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resource causes pollution.

2. Deforestation: deforestation cause, flood ,landslides, global warming, climatic change which cause environment
pollution.

3. Migration: migrated people have unscientific settlement, lack of job, shortage of basic need which causes
environment pollution.

4. Lack of resource reutilization: if waste materials like polluted water ,plastic materials, bags papers are not
properly utilizing then it causes the pollution.

5. Use of unnecessary chemicals: An unscientific unnecessary chemical causes environment pollution because
unnecessary chemical pollutes air water land it badly affects animals and plants.

6. Other consequence are: i) inadequate public awareness ii) unscientific urban growth iii) agro- based economy
Iv)` unscientific government policy. V) number of vehicles vi) establishment of industry
Consequence of environmental pollution
The area around us occupied by living and nonliving things is called environments. Adding undesirable thing or
disturbing the self-system of natural phenomena is called environment pollution. Environment pollution causes
the following consequence.

1) Soil degradation: unscientific use of chemical fertilizer, global warming pollutes environmental components like
soil air water which leads decrease in fertility, decrease productivity of soil desertification in country

2) Natural calamities: rapid deforestation and environmental pollution has result irregular unnatural and scanty
rainfalls. It causes devastating floods, landslides, storms, droughts.

3) Water pollution: water pollution causes different water borne diseases. It may cause depletion of water sources.
So, there is scarcity of water.

4) Air pollution: polluted air cause different air born disease. It also causes different breathing related diseases
such as hypertension high blood pressure etc.

5) Atmospheric change: air pollution depletes the ozone layer which leads different disease increase global
warming loss of biodiversity.

6) Other consequence: i)adverse effect in biodiversity ii)adverse effect in tourism industry iii)decrease in labour
productivity iv)decrease in government revenue v)sound pollution

Remedial measures for environmental degradation.
a) Control on population growth: problems like deforestation water pollution air pollution sound pollution land

degradation caused by overpopulation can control with control on population growth.

b) Spread of education and awareness: educated people have idea to preserve, utilize natural recourse. They have
idea to reduce pollution.

c) Introduction of new technology: modern up-to-date technology produce less pollution. New technology can
reutilize waste materials.

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reutilize waste materials.
d) Others measures: 1)increase in employment opportunity 2)community development programmers 3) social

mobilization)pollution management 5)formulation and effective implementation of government policy 6)
improvement of technology 7) planned urbanization. 8)application of new scientific policy
What are the difficulties of natural resource management in Nepal.
The scientific and optimum utilization of water resources ,forest resources and mineral resources keeping
sustainable development in mind is called natural resources management. The difficulties in natural resource
management in Nepal are as follows
1) Lack of capital: one of the notable problem of natural resource management is lack of sufficient capital .Nepal is
underdeveloped nation with low per capital income and low rate of capital formation. The small amount of
capital becomes insufficient for the optimum utilization of natural resources.
2) Problem of transport and communication: transport and communication facilities are equally important for the
appropriate utilization and management of natural resources- water, forest and mineral resources . Due to
difficult geographical structure and other causes such facilities are not available in mountain and hilly region
3) Political instability: the next problem related with natural resources management is related with political
instability and frequent change in government and policies . Stable government ,sustainable policies and
farsighted visions are not found in Nepal. So, available resources are not utilized yet in Nepal besides Vast
potentialities
4) Lack of advances technology and technician : Nepal lacks technicians and latest technology which are most
important for the utilization of Nepal's natural resources ie for exploration and exploitation .Neither we have
advances technology in Nepal nor we can hire by paying large amount of foreign currency from abroad
5) Lack o natural resource management plan of government: Nepal government has no specific plan for the proper
utilization of natural resources .Recently a 10 Km long mountain of iron mine has been identified in Nawalparasi
district. But the government has no plan to utilize it

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Agriculture 6:42 AM

Wednesday, December 23, 2020

Agriculture

Nepal is predominantly agricultural country .Agriculture is the backbone of Nepalese economy as more
than 60.4 percent of total active labor force is engaged in agriculture and 27.1% of the total GDP is
obtained from this sectors. Climatic condition of country help to produce verities of product in different
part of Nepal .

Characters of Nepalese agriculture are as follows

a. Subsistence farming: Nepalese agriculture is largely carried on the basis of subsistence farming.
Nepalese farmers produce food crops primarily for themselves and their family consumption only and
the surplus production is sold by farmers in order to pay their loans to land lords .

b. Food crops predominance:-food crops are predominant in Nepalese agriculture. About 76% of total
cultivated area is under food crops including rice ,maize ,wheat ,millet and barley whereas the cash
crops occupy 24% of total land

c. Predominance of the temporary crops:-in, Nepal most of the agricultural land is used for the cultivation
of temporary crops like , paddy, wheat ,maize.

d. Small size of land holding:- small size of land holding are predominant in Nepal .Small size of land is not
suitable in business and commercial farming.

e. Depend on monsoon:- Nepalese agriculture highly depend on monsoon due to lack of adequate
irrigation facility. About 50% of the arable land has irrigation facility. Others depend on monsoon.

f. Other characters of Nepalese agriculture

I)unequal distribution of land holding: ii)low productivity iii)geographical variation

Iv) Dual ownership of land v) traditional farming practice vi) disguised unemployment

Role or importance of agriculture in Nepal

Agriculture is the primary sector of Nepalese economy. It is also consider the backbone of Nepalese
economy. Roles of agriculture can be explain in the following points.

i. Source of lively hood : About 6th '10 part of total population id engaged in agriculture sectors for their
livelihood.

ii. Source of food; food requirements of the country are fulfilled by agricultural sectors. It provides various
kinds food crops cash crops, fruits meat products vegetable ,hairy products etc which are essential for
the people.

iii. Source of employment opportunities: About 80% of total economically active population of country is
getting directly or indirectly employment opportunity in agriculture sectors of Nepal.

iv. Supply of industrial raw materials: It is the agriculture that provides raw materials that provides raw
materials required for Nepalese industry including sugar, cigarette jute flour rice oil paper.

v. Source of government revenue: agriculture is one of the major sources of government revenue. The
government of Nepal receives revenue from different types of source such as taxes and fees from agro

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government of Nepal receives revenue from different types of source such as taxes and fees from agro
based industries land tax registration fees irrigation charge s export duty etc.
vi. Other importance of agriculture in Nepal

I)basis of trade and commerce ii)source of national income iii)supply of animal forage iv)improve living
standard of rural people v)Maintains environmental balance.

Problems of agriculture in Nepal

The major problems of agriculture in Nepal are as follows

a. Inadequate irrigation facility:-Irrigation is the lifeblood of agriculture .But irrigation facilities are not
sufficient in Nepalese agriculture sectors. Agriculture of Nepal is heavily depends on the monsoon.

b. Excessive pressure of population on cultivable land: Cultivable land in Nepal is limited in extend where
as there is pressure of rapid growing population on land. Excessive pressure of population on land
because of slow development of industrial development and tertiary sector(trade, commerce and
services) in country.

c. Low productivity :The main factors responsible for low productivity are primitive method of
cultivation ,lack of irrigation facility of land holing. Agriculture productivity of Nepal is far low than
developed country .

d. Underemployment and disguised unemployment: Privative agriculture system provide seasonal
employment .So the Nepalese agriculture virtually face the underemployment and disguised
unemployment.

e. Lack of agricultural research :-Nepal lacks adequate agricultural research related to cropping pattern
productivity suitability of crops technology etc. Due to this the subsistence farming with low yield is
continuing.

f. Other problems
i)defective government policy ii)traditional method of farming iii)inadequate agricultural credit iv)
unorganized agriculture market v)lack of transport facilities vi) defective government policies v)rural
indebtedness vi)lack of physical infrastructures
Source of agriculture finance in Nepal
Source of agriculture finance in Nepal is classified in to
i) Institutional or formal or organized ii) non institutional or informal l or unorganized source.
Agriculture marketing:-generally agriculture market denotes the sale and purchase of agricultural
input and outputs. It includes collection, fixation of quality standard, management of organized
markets for agro-products.
Nature of agriculture marketing in Nepal.

1) Unorganized: the agricultural marketing of Nepal is not organized. Due to lack of organized market,
management system of measurement ,price ,quality control and other facilities are unsystematic .farmer
are not getting reasonable price

2) Seasonal: agricultural production and making both are seasonal in rural area of Nepal most of the
farmers follows single cropping pattern due to the lack of irrigation facility.

3) Predominance of middlemen: agriculture marketing is characterize by the predominance of
intermediaries. The visit door to door of farmers and collects buy produce in low price and sell the same
to other consumers at higher prices.

4) Influence of the Indian market: Due to the long and open broader of India and Nepal, price of
agriculture is directly influenced by the market of India .So the price of agriculture is in fluctuation.

5) Perishable products:-Agriculture products are perishable .The degree of perish ability varies from

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5) Perishable products:-Agriculture products are perishable .The degree of perish ability varies from
product to product but perish ability remain distinct feature.

Inadequate number of market center, small size of markets, poor marketing network, etc are others
features of agriculture marketing in Nepal .

Problems of Agricultural marketing in Nepal
• Lack of communication and transportation facility: farmers cannot carry their product to the market

due to transport difficulty in rural area .Due to lack of communication facility, the do not know the
actual price of their product. So the sell their production primary market at village level.
• Lack of organized markets: T the agricultural inputs like improve seed, fertilizer and tools are not
available in time due to lack of organizes marketing system. On the other hand, farmers are compelled
to sell their product cheaply to local trader and rich farmers.
• Lack of storage capacity: the farmers have to sell their product immediately after harvest because of
lack of storage facility. At the time of harvesting the price of product id very low. Most of the
agricultural goods are perishable so the traditional way of storage cannot save their products properly
from the sun heat rain cold pests etc.
• No grading and standardization: due to lack of grading and standardization system, there is any
disparity among the various products. Even farmers do not have knowledge about quality of their
product. There is common `system of selling high quality product by mixing it with low quality of
products.
• Defective weights and measures: most of traders in the rural are do not use proper weight and
measure. Instead of using metric weight, they use stone brick etc in buying goods from farmers and
exploit them.
• Other problems:- i) lack of institutional credit facility ii)problems of adulteration iii)lack of effective
organization of peasants.

Remedies against problems of agricultural marketing

I)developing transportation and communication facilities ii)provision of easy agricultural credit iii)
provision of warehouses

iv)uniform system v)developing marketing information system

Remedial measures for Modernization and Commercialization of Nepalese Agriculture.

Nepal is agricultural country .About 60.4 percent of total active labor force is engaged in agriculture and
27.1% of the total GDP is obtained from this sectors. It shows the requirement of modernization of
commercialization of Agriculture

Some of the remedials are as follows

1) Land reform: Present land policy and social norms about the land is not suitable for the huge production
and scientific and modern agriculture process. Removing dual ownership and distribution of land to real
formers , stopping the factorizing the land , proper usse of all grades of land for their prover and
suitable use.

2) Agriculture research :sufficient and regular agriculture research and its application ,its extinction ,all
farmers access to such research and agriculture scientist & technicians .Establishing the more research
Centre

3) Provision of agriculture credits: Most of the farmers are, land less uneducated , poor and deprived from

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3) Provision of agriculture credits: Most of the farmers are, land less uneducated , poor and deprived from
modern facility. They are taking credit from unorganized source in high rate. So, coverage of modern
facility ,extension of equipment ,Credit facility in low rate without collateral .

4) Establishment of agriculture market. Agriculture market is unorganized . There is presence of middle
man , no grading of product, adulteration on foods , shortage of agriculture tools & fertilizers, lack of
store house , lack forum of farmers and consumers. So effective and accessible agricultural market
should be established.

5) Supportive government policy: Government policy should focus for pension for farmers, agricultural
entrepreneurs ,social respect to farmers, upgrading economic and social status of farmers , motivation
of new generation to agricultures , secure of futures of farmers , agriculture should be carrier
development sectors nor compulsion and last option.

6) Others measures
a) providing irrational facility
b) food pricing and distribution policy
c) Establishment of more agriculture collage and free education
d) Agriculture information platform

Conclusion :Nepal is a

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Industry 6:42 AM

Wednesday, December 23, 2020

An industry is the group of productive enterprises or organization that producer or supply goods and
services with the objectives of earning

Cottage and small scale industries

Cottage industries are defined as the industries which are carries out by the help of family members
and can be run even by traditional skill knowledge and local raw materials. Small scale industries are
those industries which fixed capital investment up to five crore.

Importance of cottage and scale industries

The main importance of cottage and small scale industries are as follows

1) Employment opportunities:- being labour intensive nature , cottage and small scale industries
generate employment opportunities .It provides off- agriculture season opportunities in both urban
and rural area.

2) Easy to establish :- cottage and small scale industries can be establish with small amount of capital
local and traditional skill and local resource.

3) Basis of large scale industries:-entrepreneurs learn skill and technique from such industries. The
development of cottage and small scale industries increase income, saving purchasing power of
people. This extends the market for large industries.

4) Utilization of local materials: -various types of raw available in different parts of Nepal are locally
utilized by cottage and small scale industries .The economical utilization of existing resources would
led to production of various essential goods ,which in turn may promote local self –sufficiency.

5) Preservation of traditional art skill and culture: -cottage and smalls scale industries utilize specific skill
or local raw materials resource and labor intensive and related with national traditional art and
culture .Family members can operate such industries. So such types of industries hand over the
knowledge, skill to second generation.

6) Other importance of cottage and small scale industries .

I) source of national income ii) reduction of regional disparities iii) foreign exchange earnings.

Problems of cottage small and scale industries.

Problems face by the small and cottage industries in Nepal are as follows.

1) Lack of capital:-Owners of such industries have not sufficient capitals. Financial institutions also not
provide loan without collateral.

2) Lack of protection:-Due to the financial deficiencies they are completely handicapped. On the other
hand they have to compete with the fine imported machine product. Neither tariff protection nor any
subsidy has been provided to these industries.

3) Lack of skill manpower: The small producers are unable to employ skilled manpower due to inability
to pay higher wages. They employ unskilled and inefficient worker who are illiterate and have no
technical knowledge the use of unskilled labour result low productivity and quality.

4) Lack of raw materials:-Some of the industries do not get adequate and regular supply of raw materials
due to lack transportation and advertisement. Quality materials export to foreign country.

5) Limited market :-Because of low purchasing power of people ,lack of basic infrastructure, unorganized

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5) Limited market :-Because of low purchasing power of people ,lack of basic infrastructure, unorganized
market structure ;market of cottage and small scale industries is limited.

6) Other limitation:
i) tough competition with large industries ii) lack of infrastructures iv) primitive technology v)
Medium and large scale industries
Important of medium and large scale industries

1. basis of economic development :-Industrials development is the basis of economic development
because development of industrials sectors like iron cement, machinery equipments automobiles etc
automatically develops others sectors and economic activities.

2. Increase in employment opportunities :Seasonal nature of agriculture ,high pressure of population on
agriculture and high rate of population growth has create wider spread unemployment and
underemployment .such problems can be solved by establishment of medium and large scale
industries

3. Resource utilization:- The available natural resource can be utilize by developing industrial sectors.
Exports of raw materials give only little income. But need large amount of currency to buy the finished
goods made by same raw materials.

4. Rising standard of living:-well –developed industrial sectors can develop skill and employment
opportunities. This increase the income of people which increase the living standard of people.
Industrializations provide cheap and superior goods in low price which also increase living standard of
people.

5. Skill development:-the development of medium and large scale industries help to develop the skill and
competitive skill of labor as well as entrepreneurs. Skill development develops nation.
Other important of medium and large scale industries
i) development of basic infrastructure ii) export promotion and import substitution iii)
modernization of agriculture iv) source of government revenue v) capital formation vi) Sectorial
balance vii) self-dependency
Problems medium and large scale industries

➢ Lack of capital: Medium and large scale industries requires huge amount of capital which is beyond
the capacity of Nepalese entrepreneurs and financial institutions.

➢ Lack of infrastructure: Infrastructure such as transportation communication and power generation are
pre-requisites for industrial development .But the basic infrastructure are not being sufficiently
developed in Nepal.

➢ Lack of raw materials: Due lack of infrastructure unexplored mines low productivity of agriculture
deforestation etc most of industries have to import raw materials from foreign countries in
Nepal .How can we develop new industries?

➢ Limited market: The national market of industrial product in Nepalese very limited due to low level of
income and mass poverty. Nepalese goods and services do not have sufficient competitive quality to
compete in international market.

➢ Lack of skilled man power :-The industrial sectors needs skilled man power. Such skilled man power is
not available in Nepal. Imported man power are expensive and not dependable.

➢ Other problems of medium and large scale industries
➢ I)Land locked position ii)lack of industrial security iii)lack of entrepreneurship & managerial skills iv)

frequent change in industrial policy v)political instability vi)open boarder to India vii)insufficient
research viii)brain drain

Tourism industry

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Tourism industry

An act of travel from one place to another place of country as well as from one country is called
tourism. The main purpose of tourism are entertainment ,study of culture and art religious tradition
fashion etc. Tourism industry includes the whole business activities to provide facilities for tourists like
hotel travel agent and other related activities.

Importance of tourism industry

Role of tourism in Nepalese economic is explained as follows

a. Source of foreign currency: Nepal is developing country. So it needs huge volume of foreign exchange
for development. The way of getting huge foreign exchange is tourism.

b. Increase in employment opportunities: Tourism is a service industry and thus requires a huge
manpower. As tourist industry expands, the employment opportunities in hotels lodges, travel agency
rafting trekking mountaineering air lines etc.

c. Development of cottage industry: Tourists are attracted by various beautiful hand craft product and
many of them purchase some of them at handsome price .So, tourism industry also plays on important
role in the development of cottage industry.

d. Cultural exchange:-Tourism industry introduces Nepalese culture and art to foreign countries .A
tourist carries his culture with him .Tourism industry help to make mutual exchange of culture
between the people of different country. Exchange of culture broaden the mind and knowledge to see
the truth.

e. Promotion of trade:-Employment opportunities, expansion of service and cottage industry caused by
the tourism promote the trade.

f. Others importance of tourism industry
i)increase in government revenue ii)development o infrastructure iii)conservation of natural
resources iv)publicity of nation v)regional balance vi)development of human resources
prospects of tourism industry in Nepal
Nepal is known as one of the prime destinations for tourist .Due to natural and cultural
heritage , there is high prospects of tourism industry in Nepal . Some prospects are as follows

a) Nepal is a country having full of natural beauties . It has white mountains , rivers, lakes forests and
rare plants birds and wild animals . It is major attraction for tourist forever .

b) Historical and religious palaces: Nepal is the birth place of Gautam Buddha and sita .It has
thousand s of temples like : pashupatinath , muktinath Changunarayan. Ram Janaki etc likewise
historical palaces like Gorkha place , Bhaktapute Lumbini etc are other attraction for tourism

c) Ancient art and architecture: Many tourist visits Nepal to study its ancient art and achitetures .
Nepali art is basically based on Buddhism and Hinduism which are reflected by every temples

d) Climatic diversity: in Nepal, varieties of climates are found from Tarai to mountain . So , tourist can
enjoy and different climates as per they kike

e) Unique place for recreation : it includes mountaineering , trekking rafting gliding bungee jupm etc .
Such recreation facilities are also major attraction for tourism

f) Other prospects

i) Rural simplicity

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i) Rural simplicity

ii) less expenses

iii) white mountain

iv) Wide range of biodiversity

v) Cultural diversity

Conclusion: Nepal is full of natural beauty and historical art .but difficult to coemption with India and
china . So, tourism is necessary to develop and easy to develop.

Problems of tourism industry in Nepal

The problems of tourism industry in Nepal are as follows

a. Lack of advertisement: there is lack of publicity and advertisement of various tourist sites of Nepal in
international sphere .Due to this reason, the number of tourist is not so enough.

b. Lack of trained manpower : In Nepal ,tourism manpower such as tourist guides is neither well trained
nor adequate in number due to lack of training facilities .

c. Lack of quality hotels;-rich tourist need good quality hotel and lodges. But such good quality hotels
and lodges are limited in numbers. Most of hotels are concentrated only in Kathmandu valley.

d. Lack of transport and communication facilities:-transportation and communication facilities are
required for the development of tourism sectors. But we are unable to develop these facilities
sufficiently. Due to this reason this sectors is not well development in Nepal .

e. Other problems of tourist industry i)lack of recreation center ii)pollution iii)lack of security iv) lack of
capital
Conclusion: Nepalese tourism industry is not free form the problems but problems can be minimize
and solve with every citizens and government commitments .

Remedial measures of tourist industry in Nepal
a. Development of transport and communication facilities: tourist need good facilities of transport and

communication .transportation and communication facilities should be developed to attract tourist.
b. Development of quality hotels: development of quality hotels and lodges in tourist destination areas

gives comfort to the tourist. This comfort attract tourist and longer the visiting duration of tourist.
c. Publicity: Due to lack of publicity, the number of tourist is not increasing. Therefore, it is need to

advertise the tourist sports of Nepal in national and international means of communication.
d. Security: government should provide security measures in tourist destination area .Nepal should

provide faith full environment to convince all the tourist.
e. Control of pollution: The government, private sectors and civil society should carry out necessary

measure to remove growing urban pollution.
f. Other measures i)hotel management and training facilities ii)Development of recreational center iii)

development of tourist sites iv)effective tourism policy v) arrangement of adequate tourism center s

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communication

Wednesday, December 23, 2020 6:43 AM

transportation and communication

Explain the role of transportation in economic development

Ans book page 329 question 19

Explain the various means of transportation in Nepal

In, Nepal surface and air transportation are the main means of
transportation.

1) Surface transportation: surface transportation includes road
transportation railway transportation ropeway transportation
trolley bus cable car etc.
a. Road transport: due to rugged earth surface of Nepal, road
transportation is main means of transportation .Black
topped ,graveled ,fair weather are different types of
roads .Mahendra highway(1024 KM),tribhuwan
rajpath(109KM),pprithwi highway(174)are major highway of
Nepal. Bus ,Mini bush, truck crane, dozer car jeep motorcycle are
main means of transportation
b. Railway transport: Nepal have no high potentiality of rail way.
First rail way (Amlekhgung and Raxual) is out of operation. Now
janakpur –jayanagar Railway which is 52KM long , is the only
railway in Nepal.
c. Ropeway(cable car) :the transportation system operated on
electrical cable is called ropeway. Kathumandu –Heteauda
ropeway length of 42KM, is mot in operation. Kurighat –
manalamana spanning 3.1KM and Thankot to chandragiri
spanning 3KMare private sector cable car.

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spanning 3KMare private sector cable car.
d. Trolley bus service :bush service operaated by electrc power is

called trolley bus service .Only one trolley bus form Tripureswar
to suryabinayak (bhaktapure ) is also out of operation in nepal .
2) Air transport due to rugged earth surface of Nepal ,air
transport is main alternative of transport. Nepal Air Lines
Corporation is working under NCAA .NCA has extended its
international flight to many cities of India Thailand Hong Kong
Singapore Dubai Tokyo, Beijing etc. The NCAA also directs 15
private air lines. Buddha Air ,Gorkha Air, Karnali Air, are some
examples of private air lines. At present ,Nepal has 51 airports
including Tribhuwan international airport.

Means of communication services.
Postal services , wireless telephone and e-mail are the means
of personal communication. Radio television and newspapers
are the means of mass communication. Some important
means of communication are:
1) Postal services: postal services is one of the traditional modes of
communication services . private sector is also providing express
mail services both inside and outsides the country.
2) Telecommunication services : telecommunication is the easiest
and fastest means of communication .Nepal Telecom is providing
its services to all 77 district..Nepal has international telephone
linkage with more than 131 countries of the world. N cell, UTL
have been providing wave phone an mobile phone services.
3) Radio broadcasting services: It is one of the most important
means of mass communication .Radio Nepal was established in
2007 BS .It has been providing services in all 75 district .558
companies have been permitted for regular broad casting
through Frequency modulation(FM)by the end of 2015/16.
4) Television services :television telecasting services in an important
effective and live medium of mass communication. The service of

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effective and live medium of mass communication. The service of
Nepal television started in 2042 BS. Nepal Television is telecasting
its services inside nation and in 149 country through satellite
system .Out of 88 licensed company ,25 television channels are
telecasting the programs.
5) News papers : news papers are also an important effective
medium of mass communication. There are daily monthly bio
monthly daily weekly quarterly ,half yearly, yearly publication.
Some news paper are published in other language such as Newari
Maithili Hindi English.

problems of transportation and communication same
as hydro electricity

suggest Nepal government for the development of
communication and transportation of Nepal
Development of Transportations and communication is itself
a development and it is basis for the other sectors like
agriculture industry and service sector. So government should
develop communication. Some of the ways are discuss below:
1) Investing sufficient capital :communication and transportation
need large amount of the the capital . Only Private sector is
not able to invest sufficient amount of capital so government
should invest sufficient amount of capital
2) Provide sufficient and cheaper power supply: Communication
and transportation need large amount of the power supply so
government should supply cheaper and large amount of
power supply to develop communication
3) formulation of farsighted plans and policies: Development of
transportation and communication takes long time . It cannot
be develop in short time .Development of the transportation
has multidimensional effect on economy so government must
make farsighted plans and policy for the development of

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make farsighted plans and policy for the development of
transportation and communication .
4) Need stable government : only stable government can
implement farsighted plans and policy .People and donors
can believe only on the stable government . Stable
government can think about the development . Unstable
government think about its stability.
5) increase investment in the production of technical
manpower: transportations and communication need
different types of technical manpower. Per capita income
Nepal is low so hiring technical manpower form foreign
country is very difficult for Nepal so Nepal government should
invest in development of technical manpower.

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