Chandra Shumsher abolished it in 1981 BS. Bir Hospital, Bir Library, Ghantaghar (the
clock tower), Bir Dhara, etc. were established during the rule of Bir Shumsher. Chandra
Shumsher established Tri-Chandra College in 1975 BS. He also established the Army
Hospital, Tokha Health Centre, Bhaktapur Tuberculosis Hospital, Pharping Hydroelectric
Project. Dev Shumsher was the promoter of education. He opened 50 schools in the valley
and about 100 schools outside the valley. He sent 8 students to Japan for the study of
agricultural technology. The Gorkhapatra, the oldest newspaper of Nepal, was published
during his rule in 1958 BS. He also fixed the working hours from 10 o’clock to 5 o’clock.
During the time of Juddha Shumsher, the SEE Board was established in Nepal. He tried to
set a limit to expenses in wedding and festivals. Padma Shumsher introduced for the first
time a written constitution in 2004. He established some schools and colleges for girls.
At the end of the Rana government, the literacy rate in Nepal was only 5.7 percent, and
women’s literacy was 0.7 percent.
Economic Reforms
Most Nepali people lived in poverty
during the entire Rana reign. To get
employment, one had to be either
close to the Rana family or to support
and please them. The forced labour,
(the Jhara system) and the bonded
labour were prevalent. People used
to pay different taxes either in kind
or in cash but the revenue used
to go for the personal expenses of
the Ranas. Junga Bahadur started
systematic tea plantation in Ilam.
Junga Bahadur sent Nepali troops to
help the British suppress the Sepoy
Mutiny in Delhi. For this, Nepal got Banke, Bardia, Kailali, and Kanchanpur back which
Nepal had lost during the Anglo-Nepal War. It can also be taken as one of the achievements
during the reign of Junga Bahadur. Chandra Shumsher tried to change Birta and Kipat
land to Raikar. He started telephone, electricity, ropeway and the railway. Chandra Nahar
(Trijuga, Saptari) is the first canal in Nepal, which was constructed during the rule of
Chandra Shamsher. Similarly, Juddha Shumsher also had Juddha Nahar constructed in
Manusmara River in Rautahat. Sundarijal Hydro-Electric Centre, established during the
premiership of Juddha Shumsher, had 900 kw production capacity. The time from 1993 to
2007 BS remained a productive period in the field of industry. In this period, Nepal Bank
Limited (1994 BS) was established and paper money was introduced in 2002 BS. In 1936
AD, Biratnagar Jute Mill was established according to the first Company Act of Nepal.
During the reign of Juddha Shumsher, the first Nepali cloth industry, cottage industries,
skills development centers were established. At the end of Rana rule, Nepal used to
export timber, leather, and foodstuff to foreign countries. There was trade balance with
other countries. Nepali youths who were employed in the British Army helped to earn
foreign currency as well.
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Administrative Reforms
Junga Bahadur’s tour to Europe led to the
reform of administration in Nepal. He
established a number of courts and offices:
the civil court (Muluki Adda) to conduct
daily administration; Jangi Adda for the
administration of army; Ainkhana and Kaushal
Adda for drafting laws; Muluki Khana to collect
revenue. Bir Shumsher introduced the system
of ‘Daudaha’ (make-shift courts held by the
traveling high officials) to check corruption
and revenue leakages. People had a chance to lodge complaints about problems during
these Daudahas. But this system was less effective because the chiefs of the commission
were mostly Ranas and people could not complain against official corruption. Bir
Shumsher also divided Nepal into 35 districts (12 in the Terai and 23 in the hilly region).
Dev Shumsher fixed the office hours from 10 AM to 5 PM and made provision for the
annual leave of 17 days. Chandra Shumsher introduced Khadga Nishan office, offices
of water supply (Pani Goshwara), Bijuli Goshwara (Electricity office), and Naksari office.
Bhim Shumsher started the tradition of giving holiday on Saturdays. Padma Shumsher
introduced a written constitution in 2004. Municipal elections were held and Shava (public
court) and Bhardari Shava (court of royal courtiers) were formed during the period of
Padma Shumsher. In comparison to development taking place in other countries, these
reforms were negligible.
There was not any system of selecting public officials based on merits. Nor was there a
system of selecting civil servants. Ranas having higher positions used to appoint staff
and public officials according to their personal will. There was the system of Pajani for
promotion or demotion of staff but it also depended on the personal will of the Ranas.
Glossary
immolation : burning
abolish : bring to an end
Birta : land awarded to somebody by the rulers
Kipat : collective ownership of land awarded by the rulers
In-class Activity
At the end of the Rana rule there were only 321 schools, one college, 5.7 percent
male and 0.5 percent female literate. Now, there are about 30,000 schools, half
a dozen universities, about 500 colleges, technical schools, as well as about 65
percent literacy rate. Discuss in your class the development of education in Nepal
in recent time. What should be done to further the development of education in
the country?
252 Oasis Social Studies Grade - 9
Exercise
A. Offer very short answer to the following questions.
1. Introduce the Rana rule in a sentence.
2. When was Sati system abolished in Nepal?
3. Who first introduced the written constitution in Nepal?
4. Write any two major reforms of Dev Shamsher.
5. What is Pajani system?
B. Offer short answer to the following questions.
1. What were the major social reforms carried out during the reign of Chandra
Shumsher? How would you analyse the reforms introduced by him?
2. Discuss the development of education during the Rana government.
3. What were some of the bad social practices introduced during the Rana rule?
4. Which Rana Prime Minister contributed most to industrial development in
Nepal? Make a list of industries established in that period.
5. What were the positive and negative aspects of the Rana rule?
6. Some of the infrastructure and facilities constructed during the Rana rule are
used in our present time as well. Make a list of some such infrastructure and
facilities.
7. Which offices established during the Rana regime resemble the ministries,
offices, and departments of the Government of Nepal these days?
Self- Discovery: Project Work
Visit a public place, palace or a monument established during the Rana Regime.
Prepare a short report, describing it and then stating what is most impressive
about the monument.
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Lesson Industrial Revolution
in Europe
7.11
Pre-reading Activity
Read the following basic facts about Industrial Revolution and discuss the
questions that follow.
The Industrial Revolution started in Great Britain.
The steam engine was invented during this period.
The revolution was started by people trying to find increased production of food
and other goods.
Miners used child labor was one of the main ways to get coal in small places.
People paid less money to children and women than men.
• In what ways did the invention of steam engine contribute to Industrial
Revolution?
• In what ways might the increased demand of food and goods have impacted
the invention of machines?
• What other key inventions do you think contributed to Industrial Revolution?
Reading
From the sixteenth century, scientists began
inventing many wonderful things, including
labour saving machines. This development in
science and technology over the centuries led to
the Industrial Revolution in Europe. In
industries, labour saving machines began to be
used. In the economic history, it is called the
Industrial Revolution. Manual work was
replaced by machinery work, and many
industries were established for mass production.
Especially, the industrialization started from England. With the establishment of factories,
agricultural economy of England changed into an industrial one. Before the Industrial
Revolution, there were small cottage industries producing wool, clothes, cotton, coal,
iron, etc. Children, women and men used to work in the factory for long hours with low
wages. Generally, children were employed for light work such as washing. Women used
to make threads whereas men were employed in knitting and weaving of clothes. England
was famous for wool production but textile industries were also established. Gradually,
import of cotton clothes from other countries such as China, India, and Iran was banned.
254 Oasis Social Studies Grade - 9
England still imported raw cotton for its textile
industries. There was high demand of cotton
clothes in West Africa, West Indies, and South
America as well as within the country.
Making of thread from cotton was a slow process
and knitting was faster than it. One person was
sufficient to knit out of threads made by eight
persons. It means there was scarcity of thread. To
solve the problem, John Kay invented a wooden
Flying Shuttle in 1743. Two persons operated
the machine at a time. Another faster machine was invented by James Hargreaves, called
‘Spinning Jenny’. It could produce thread eight times faster than a person. This machine
could not displace the manual labour-based system of cotton industry. Industry system
was developed form the Water Frame invented
by Richard Arkwright. So he is called the father
of modern industry system. Another person
Samuel Crompton invented another improved
machine called Mule which was based on the Flying Shuttle
theory of both Spinning Jenny and Water Frame.
It could produce a large amount of thread with
strong and improved condition. Now, there was
the scarcity of weavers. This problem was solved
by Edmund Cartwright, who invented a weaving
machine, called Power Loom. These machines
were mostly water powered. Running water was
the only source of power to operate machines
in the industries. There was lack of full volume Spinning Jenny
running river and hence industries could not run
during the dry season. In the meantime, James
Watt invented Steam Engine which could operate
the engine from steam, so factories now could
run round the year.
There was yet another problem – lack of
availability of coal and iron to build and run steam
engines. Iron was used for different purposes.
In 1779, iron was used to make a bridge and to
make a plane in 1810. Similarly, Humphrey Devy
invented a Safety Lamp which made it easier to
work in coal mines.
Due to the establishment of industries, goods
were produced in large quantities. Now, there was
the need of transportation and the distribution of Power loom
goods within and outside the country. To meet this need, inventions were made one after
Oasis Social Studies Grade - 9 255
another. The development of transportation and
communication significantly influenced trade and
commerce. John Loudon MacAdam introduced
new and easy system of road construction,
known as “macadam” in 1810. Similarly, George
Stephenson invented the steam engine locomotives
for railways. Likewise, "Morsey’s Telegraphy
(1837)," "Graham Bell’s telephone (1867)," Michael
Faraday’s electric power, Thomas Elba Edison's
electric bulb, and Marconi’s invention of radio and
wireless brought drastic change in the fields of The first steam engine
industry, communication and transportation. invented by James Watt
The Industrial Revolution also improved
agriculture. Terrace system of farming, improved
seeds and hybrid crops replaced traditional
farming systems. Animal farming also improved
with hybrid breeding; it increased meat and milk
production drastically. The industrialization also
led to urbanization and rapid population growth in
city areas. In this situation, scientific farming with
improved seeds and use of fertilizers alone could Steam engine locomotives for
meet the need for a large amount of consumer railways invented by George
goods. Stephenson
The Industrial Revolution also changed the mode of
production and economic structures. Home-based
cottage industries were replaced by large factories; such factories could produce goods in
large quantities. The traditional artisans and farmers became factory workers.
Impact of Industrial Revolution on Human Society
A vast economic gap between those who owned factories and those who worked for
wages emerged. This disparity in income and wealth created polarization which led to
conflict. Urbanization, change in social system, establishment of trade union, beginning
of socialism, etc. were the positive impacts of the revolution. Depletion of cottage
industries, population growth, unemployment, less opportunities for workers, expansion
of imperialism, etc. were the negative impacts. It also brought a change in the population
distribution. Before 1760 AD, most of the people used to stay in rural area. After the
industrial revolution, they migrated to the urban area. The revolution indirectly helped
in parliamentary reform. Before the resolution, the political power was limited to a few
landlords but after it the industrialists became very powerful. The government also
passed the bill in favour of labour and middle class.
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Industrial Revolution : Glossary
the rapid development of industry that occurred
artisan : in Britain in the late 18th and 19th centuries
craftsman
In-class Activity
We do often hear of the need for “Agricultural Revolution” to develop Nepal.
Discuss what can we do to revolutionize agriculture. How would it help develop
the nation? Share your views with the class.
Exercise
A. Offer very short answer to the following questions.
1. What do you understand by Industrial Revolution?
2. Where did the Industrial Revolution first take place?
3. Who is called the father of modern industry?
4. How did Industrial Revolution bring change in agriculture?
5. How did Industrial Revolution change the mode of production?
B. Offer short answer to the following questions.
1. What were the major causes of the Industrial Revolution?
2. What were the major changes that the use of machines in factories brought in the
production of goods and markets?
3. Make a table in which you list the names of inventors and their inventions.
4. Discuss the effects of Industrial Revolution on the social life.
C. Offer a long answer to the following question.
Describe the major changes brought by the Industrial Revolution.
Self- Discovery: Project Work
Many believe that Nepal has great prospects of agricultural revolution leading to
increased production, development of industry and trade. In a small group, prepare
a report as to how Nepal can bring about agricultural revolution like the Industrial
Revolution in Britain. Present your ideas to the class.
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Lesson Our Ancestors and
Their Inspiration
7.12
Pre-reading Activity
Fossils of ancient hominoids Ramapithecus were found near the Tinau (Tilottama)
River of Butwal, Nepal as early as 1932, including a 10.1 - million - year - old tooth.
Barry, J.C. (July 1984), "A review of the Siwalik hominoids" .
Read the above information and discuss in the class.
Reading
The religious and cultural diversity with typical tradition has made Nepal a unique country
in the world. The history of Nepal has been divided into three periods: the Ancient period,
the Medieval period and the Modern period. The culture, lifestyle and our tradition have
been gradually changing in different periods. The culture, lifestyle and traditions our
ancestors developed have become the guidelines to the modern generations. The path
they have paved for us have become a powerful tool to explore the new dimension of our
future.
If we trace back our history, in Vedic period the occupation was based on Varna system.
There was no hierarchy in the caste system. Brahmin, Chhetri, Baisya and Sudra were four
major caste Strata. The work was divided accordingly. Later on it developed in the form
of culture.
Nepal has been a rich country in its typical rituals since ancient period. Some of those
rituals are still prevalent. Most of the rituals were developed during the Malla period.
Punsaban (worship of the main deity), Chudakarma (shaving head during tonsure
ceremony), Shreefal Vivaha (Zihi), Chaurasi Puja (worship at an old age for reputation and
dignity) or Budho Jangko (in Newari), death rituals, etc. are its examples.
They had a feeling of cooperation. They used to fulfill their necessity through barter
system and even by borrowing. They were very pious. They made the religion as their
major guideline. Morality was given due priority. They had keen interest in art and
architecture. The temples, the monuments, the paintings, the monasteries, the palaces,
the museums, the statues, etc. we see today demonstrate the superb skill and devotion of
our ancestors in art and craft. They also gave due priority to preservation and promotion
of those artistic tasks. Today these artistic tasks are popular worldwide and we feel very
proud of them.
The major economic activity at that time was agriculture. They had trade relation with
Tibet. There was uneven distribution in land. Guthis were large in number. Religious
places were major education centres. In ancient period, Sanskrit was the major language.
However, during medieval period, Newari and Maithili were also popular. Festivals were
based on religions and people used to celebrate as per their ability. Homemade clothes
258 Oasis Social Studies Grade - 9
were used. Men used to wear Daura Suruwal and Dhaka Topi whereas females used to wear
Guneu Choli and Ghalak.
In ancient period, laws were made and amended as per the religious scripture. The
punishment was given according to caste. Hence, unjust judiciary system was practised.
Later, the king of Gorkha Ram Shah ended it. During Ram Shah's time there was a popular
saying "Nyae napaye Gorkha janu" (If you do not get justice, go to Gorkha). The local level
quarrels and conflicts were decided through Panchasmuchchya. Decentralized judiciary
system was practised. Quarrel in a village was looked by Dware, Pradhan looked after Tol
and Khardar moved round the nation to give justice.
Glossary
Verdict period : the period in Hindu mythology between 1500B.C. and 500 B.C.
In-class Activity
Visit a nearby museum or historical or religious place and collect different
information about our ancestors and prepare a report on it.
Exercise
A. Offer very short answer to the following questions.
1. Who are our ancestors?
2. What has made Nepal a unique country?
3. Write down major caste strata of Nepali culture.
4. What was the major economic activity of Nepal in the past?
B. Offer short answer to the following questions.
1. Write a short note on the festivals celebrated in the past.
2. What kind of tradition was prevalent in the past ? Explain.
3. 'Our ancestors were pious.' Justify the statement with examples.
4. Art and architecture flourished rapidly during medieval period. Do you agree
with the statement? Write your views.
5. Why should we be proud of our ancestors? Give reasons.
C. Offer a long answer to the following question.
1. Draft a dialogue between two friends explaining the social, cultural and
economic conditions of Nepal during ancient and medieval periods.
Oasis Social Studies Grade - 9 259
Unit Review
In this unit, you have learnt that:
• History is a record of past events such as people’s lifestyle, wars, crusades, and
development of language, religion, and culture.
• History is written on the basis of primary and secondary sources.
• These sources include written, oral, and physical materials.
• In Nepalese history, inscriptions, accounts of the travelers, coins, chronicles, oral
literatures, government documents, and legends have been used.
• The history of the Shakya dynasty begins from king Okkaka.
• Before 1794 B.S. Nepal was divided into many principalities, known as baisi and
chaubisi states, and Prithivi Narayan Shah, the then king of Gorkha Kingdom, began
the process of unification of those small states.
• After P. N. Shah, his successors, including Bahadur Shah, Queen Rajya Laxmi,
continued the process of unification.
• The war between the East India Company and Nepal began in 1814 AD, and it ended
with the treaty of Sugauli in 1816 AD.
• Balbhadra Kunwar, Bhakti Thapa, Amar Singh Thapa, and Bam Shah were the major
warriors who fought in the Anglo-Nepal war.
• After the death of Prithivi Narayan Shah, due to dispute among the ruling class,
consipiracy in the royal court, Kot massacre, one-century long Rana Rule began in
Nepal.
• In 2007, Rana Rule was overthrown and democracy was restored.
• Industrial Revolution began in Britain with the invention of steam engine and other
innovations in technology.
• Our ancestors are the source of inspiration for us.
Test Your Knowledge
A. Offer very short answer to the following questions.
1. Define the term 'historiography'.
2. What do you mean by the secondary source in history?
3. Give two examples of written sources used in history.
4. Define oral sources.
5. Why is it necessary to study history?
6. Why did Prithvi Narayan Shah strengthen his army?
7. Who is called the father of history?
8. Why did Gorkha army fail twice to conquer Nuwakot?
9. What type of book is 'Makaiko kheti' and who wrote it?
10. In which year did the Sugauli Treaty take place?
260 Oasis Social Studies Grade - 9
11. Name the last Rana Prime Minister of Nepal.
12. What was the immediate cause of the Anglo-Nepal War?
13. What was the name of Major General of the East India Company during the
Anglo-Nepal War?
14. What do you mean by Marwat system?
15. What was the East India Company?
16. Write two consequences of the Anglo Nepal War.
17. Why did Nepalese soldiers leave the Khalanga fort for another fort?
18. Mention any two economic reforms made during the Rana rule.
19. What do you mean by the Bhandarkhal event?
20. What do you mean by an autocratic rule?
21. Who established Pharping powerhouse and Sundarijal powerhouse?
22. Name two bad social practices that were introduced during the Rana government.
23. What was the main cause of the Bhandarkhal event?
24. Who was the Rana Prime Minister when industrialization first started in Nepal?
25. Why is Juddha Shumsher called the father of industrial development?
26. Mention the social reform made by Chandra Shumsher.
27. Define Industrial Revolution.
28. Who invented the steam engine and the safety lamp?
29. Who is called the father of modern industry?
B. Offer short answers to the following questions.
1. Give three examples of written sources, oral sources and material sources that
are used in history.
2. Among the various sources of history, which one do you think is the most
important and why?
3. List out four sources of history and explain any two of them.
4. Why did Gorkha establish friendly relationship with Lamjung?
5. What were the main strategies of Prithvi Narayan Shah for strengthening his
soldiers?
6. How did Prithvi Narayan Shah tackle the economic obstacle to his unification
campaign?
7. List out four causes of the downfall of the Rana rule in Nepal.
8. How were the Gorkhali benefitted from the victory of Nuwakot?
9. Show the following historical events in a timeline:
a) 1801 B.S - conquest of Nuwakot
b) 1814 B.S – the first attack in Kritipur
Oasis Social Studies Grade - 9 261
c) 1819 B.S – conquest of Makawanpur
d) 1825 B.S – conquest of Kantipur
10. Explain briefly the major causes of the Anglo-Nepal War.
11. Describe the role played by Bhakti Thapa during the Anglo-Nepal War.
12. How could it be possible for Nepal to become a friend of England after the war
when the latter was a pre-war enemy?
13. Write a letter to your sister dealing with the bravery shown by the brave warriors
of Nepal during the period of the Anglo-Nepal War.
14. What were the causes for the rise of the Rana rule? Explain any one.
15. Rana rule was an autocracy, not a democracy. Explain.
16. Show the relationship between the three Parvas.
17. Padma Shumsher was a great education reformer. Justify.
18. How did the classification of Ranas into A, B and C classes led to the downfall of
the Rana rule?
19. Prepare a news report about the main administrative achievements of the Rana
rule.
20. What is division of labour? What are its advantages?
21. Industrial Revolution did have several disappointments. Write any four of them.
C. Offer long answer to the following questions.
1. You might have visited a factory and might have observed how the division of
labour is practised there. Demonstrate the various pieces of jobs performed by
various workers out there.
2. What do you mean by the Anglo-Nepal War? Describe the social, political and
economic condition of Nepal before the Anglo-Nepal War.
3. Explain in brief the three causes for the rise and fall of the Rana regime.
4. Define history. Explain any eight sources of history.
5. Prepare a dialogue between two friends including the causes and consequences
of the Anglo-Nepal War.
6. What were the main inventions and discoveries made during the industrial
revolution? What changes were brought by these? Explain with examples.
7. How did Junga Bahadur Rana rise to power after the Kot Parva, Bhandarkhal
Parva and Alau Parva? Explain.
8. What were the two main obstructions faced by Prithivi Narayan Shah during his
unification campaign? Explain in detail.
262 Oasis Social Studies Grade - 9
8Unit
Economic Activities
In this unit, we will learn about:
• Agriculture, industry, trade and their interrelationships
• Present condition of agriculture, industry, and trade
• Problems related to agriculture, industry, trade and their solutions
• Concepts and meaning of planned economy
• Evaluation of economic plans in Nepal
• Meaning of poverty and its relationship with employment
• Economic planning, poverty reduction, and employment
• Entrepreneurship and its advantages
• Creation of work and its management
• Labor and its types
Oasis Social Studies Grade - 9 263
Lesson Agriculture, Industry
8.1 and Trade
Pre-reading Activity
Make a list of at least ten objects and things that you use or possess. Identify the
source of each thing: agriculture, industry and trade. Then discuss how the things
listed are related to major economic activities. Think how agriculture, industry, and
trade are interrelated.
Reading
The major economic activities in the country are agriculture, trade, and industry. A
good balance between these three economic sectors can be ideal for economy. However,
countries tend to have one or another sector as dominant. It is because the economic
activities depend on so many other factors such as geography, culture, climate, and
vegetation.
Nepal is an agricultural country where most of the people depend on agriculture for
employment. However, the agriculture system in Nepal is traditional; modern technology
is rarely used in agriculture or used in a very limited way. Most of the agricultural
production is used for household purpose. Most of the farmers grow crops for subsistence
but not for commercial purpose. Furthermore, there is unequal distribution of land.
Majority of the farmers do not have land to grow crops. Those who own large tracts of
land do not often farm. This situation has hampered the productivity of the land.
Interrelationship among agriculture, industry and market
A very few people work in industry and service sectors in Nepal. As a result, there is
unemployment in the country as there are inadequate job opportunities in the industrial
and service sector. So, more manpower is involved in the agriculture sector, leading to low
productivity and hidden unemployment. There are a few industries in Nepal and they also
depend on agriculture for raw materials. In this condition, Nepal’s economy directly or
indirectly depends on agriculture. So there is a close relationship between agriculture, trade
and industry.
For example, sugar mills, jute mills, and tea factories depend on agro-products such
264 Oasis Social Studies Grade - 9
as sugarcane, jute plants and tea leaves. Dairies, meat processing plants, and leather
factories are also based on animal husbandry. Because of this relationship, we cannot
think of developing industry and commerce without developing agriculture. Similarly,
agriculture needs modern tools, fertilizers, pesticides, which are produced in factories.
Both types of goods—agricultural and industrial— are traded in the market. Market is
the place where the exchange between agricultural and industrial products takes place.
Therefore, there is close and inevitable relationship between agriculture, industry and
trade.
Agriculture product Industry
Tea, jute, sugarcane, Tea factory, jute mill, sugar
paddy, milk, meat, leather, mill, rice mill, dairy factory,
meat factory, leather factory,
herbal plant
pharmaceuticals, etc.
Industrial product Plantation of crop,
transportation, support
Agriculture tools, tractor, for productivity, control of
spade, fertilizer, pesticides,
diseases
shovel, pickaxe
The chart above shows the interrelationship among agriculture, trade and industry. If
one sector is affected and slows down, then the other sector is also affected. For example,
if there is a shortage of agro-products, then agriculture-based industries cannot run
properly. Likewise, tools, machinery, and equipment produced in factories cannot be
sold, if farmers do not produce enough to save and invest. If the market is disturbed, all
the economic sectors are affected. For example, the recurrent bandh and strikes in Nepal
immediately affect the market. But, in the long run, it affects the farmers as well. It is
because farmers cannot sell and store perishable products such as green vegetables and
milk for a long time. Subsequently, it hampers both industry and trade.
Importance of agriculture for industry and trade
Being the main source of employment and raw materials for industry, agriculture holds
an important place in Nepalese economy. A strongly performing agriculture sector can
supply raw materials to industries so that industries can operate in their full capacity.
Produced goods in turn can be supplied to the domestic as well as international markets.
It can then reduce import and increase export and help reduce the foreign trade deficit.
The agriculture sector also consumes industrial goods and helps develop industries. Once
the industrial sector becomes stronger, the demand for agriculture-based raw materials
grows. As a result, a large number of farmers can be fully involved in agriculture
throughout the year. This helps reduce the seasonal unemployment in the agriculture
sector. A strong industrial sector generates the demand for raw materials throughout the
year. As a result, farmers are induced to grow crops during off-season. Because of the
Oasis Social Studies Grade - 9 265
high demand of agro-products, farmers earn more and can save and invest. So agriculture
in fact remains at the centre of all economic activities in a country. This is more so in a
country like Nepal where majority of people are involved in agriculture.
Glossary
subsistence : related to surviving; merely enough to feed
inevitable : something that cannot be avoided
trade deficit : condition in which a country spends more buying goods
from other countries than selling goods to them
In-class Activity
Divide the class into three groups—farmers, traders, and industrialists. Make
a plan to produce and sell five products. And, following the chart given in the
lesson, draw a flow chart in which how each product can be related to each group.
Exercise
A. Offer very short answer to the following questions.
1. What is the major economic activity of Nepal?
2. Give an example to show the close relationship between agriculture, trade and
industry.
3. Why do most of the farmers in Nepal grow crops for subsistence?
B. Offer short answer to the following questions.
1. Why is Nepal considered as an agricultural country? Explain.
2. Write about the importance of agriculture in Nepal.
3. How does agriculture help generate income and develop industry?
4. Look at the picture below and write a
paragraph describing the activity the person
is involved in.
C. Offer a long answer to the following question.
How are agriculture, industry, and trade related to each other? Explain with examples.
Self- Discovery: Project Work
A farmer produces cotton and uses cotton clothes produced by a textile industry.
Make a flow chart to show steps or stages involved from producing raw cotton to
ready made cotton clothes.
266 Oasis Social Studies Grade - 9
Lesson Agriculture
8.2
Pre-reading Activity
Read the news below and discuss the questions that follow.
Agriculture and Food Security
Nearly 66 percent of Nepal’s population works in the agriculture sector, accounting
for 36 percent of the GDP. Nevertheless, Nepal struggles to produce an adequate
supply of food for its citizens. Farmers have limited access to improved seeds,
new technologies, and market opportunities. Declining agricultural production
has depressed rural economy and increased widespread hunger and urban
migration. Almost 50 percent of Nepal’s population is undernourished, and nearly
half of all children under 5 are chronically malnourished. Chronic malnutrition
has debilitating effects, such as blindness, brain damage, and infectious diseases,
which often can result in lifetime damage.
Source: USAID
a) How is agriculture important for Nepali economy?
b) What problems does the news indicate about agriculture in Nepal?
c) How is rural economy affected by declining agriculture production?
d) How is agriculture related to food security and health of the people?
Reading
Perhaps agriculture is one of the
oldest and traditional economic
activities. It includes farming,
animal husbandry, and even insect
farming. Nepal is an agricultural
country. Nearly 66 percent people
are involved in agriculture. In rural
areas, agriculture is the only source
of employment and income. Due to
lack of employment opportunities
in other areas, a large number of
people are involved in agriculture. It
contributes nearly 36% of the total GDP of Nepal.
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Importance of agriculture in Nepal
Nepal is an underdeveloped country with limited saving and low capital formation.
So, it is difficult to invest a large amount of capital in bigger projects and industries. A
large number of people involved in agriculture lack investment capacity as most of the
production goes for sustenance. With the development of agriculture, people’s income
and living standard can be raised. This leads to investment in education and production
of skilled manpower. A developed agriculture sector can supply raw materials to
industry. The growth of industry boosts export, increases national income, and creates
employment opportunities. Therefore, the development of agriculture helps the country
reduce poverty. Thus, we can say that agriculture is the backbone of Nepalese economy
and the source of income and employment. In a nutshell the importance of agriculture
can be highlighted as follows:
• supply of food
• major source of national income
• supply of industrial raw materials
• earning of foreign currency
• source of employment opportunity
• economic backbone
Traditional agricultural system
The trend of doing agricultural activities in a primitive way is called traditional
agricultural system. Traditional farming is the major cause of unsatisfactory achievement
from agriculture in Nepal. Traditional agricultural tools and use of insecticides are the
features of traditional agriculture. Traditional agriculture does not use compost and
chemical fertilizers and hybrid seeds. If Nepal has to develop, she has to adopt modern
agricultural system.
Glossary
husbandry : animal farming
fragmented : broken into pieces; small in size due to division
barren : not cultivated
In-class Activity
Get into small groups and discuss the specific problems related to agriculture you
have discussed at the beginning of this lesson. Then, offer specific suggestions to
tackle each problem.
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Exercise
2. Offer very short answer to the following questions.
1. What percent of people in Nepal are involved in agriculture?
2. What percent of GDP is contributed by agriculture in Nepal?
3. What is traditional agricultural system?
4. Agriculture is the economic backbone of Nepal. Justify the statement in a
sentence.
2. Offer short answer to the following questions.
1. Although agriculture is the main source of employment for people living in
rural areas, their living standard is very low. Give reasons
2. What is the difference between subsistence farming and commercial farming?
Why is Nepal unable to develop commercial farming? Give reasons.
3. What do we mean by hidden unemployment in the agriculture sector? What can
be done to solve this problem?
4. What are cash crops and food crops? Make a list of these crops produced in your
community.
3. Offer a long answer to the following question.
If you were a member of the National Planning Commission, what would you do to
improve the present condition of agriculture in your area? Show your plan.
Self- Discovery: Project Work
a) There may be some kind of agriculture-based industry, or milk collection
centre, a water mill, or vegetable collection centre, etc. in your community.
Study the economic activities of these centres. Find information on the
amount of production, sales, and income of each facility. Present your
findings to the class.
b) There is a possibility of land bank like money bank, which can rent land from
one person and lend to others, taking some profit. Discuss its possibility,
implication and likely effects in Nepal. If you like, write a letter to the editor
of a newspaper to initiate such plan. In your letter, also include the possible
procedure, policy and target groups.
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Lesson Agriculture: Problems
8.3 and Their Solutions
Pre-reading Activity
As you know 66% of Nepal’s population is engaged in agriculture and yet we suffer
from severe shortage of food every year. As a result, Nepal imports food items from
other countries, primarily from India. Discuss this problem in the class and think of
some reasons behind this problem and then suggest what we can do to provide food
security to people.
Reading
Agriculture has been the main economic activity in Nepal from the ancient period to the
present. Due to different reasons, agriculture in Nepal has been facing many problems.
The basic mode of agriculture is subsistence farming, that is, the majority of production
goes for the daily consumption. We are unable to introduce technology and develop
commercial farming. As a result, the agriculture sector still remains traditional. The
following are some of the major problems that the agriculture sector is facing in Nepal:
1) Difficult geographical structure and unproductive soil
Nepal has mostly a hilly and mountainous terrain which is not ideal for agriculture.
Because of the steeply-slopping land, it is difficult to construct irrigation canals. Most
of the soil structure is rocky or sandy. Every year, the rain water washes the top soil
away. Unlike in the flat land and plains, it is difficult to develop agriculture in the
mountainous region. Similarly, due to cold climate, it takes a long time for crops to
ripen. In the Himalayan region, people grow crops only once in a year.
2) Traditional agriculture method
The farming method in Nepal is traditional. Modern
tools and technologies are hardly used in farming. Most
farmers still use traditional tools and locally available
seeds. Spades, picks, and wooden ploughs are the major
tools used in agriculture. It costs a lot while cultivating
and harvesting the crops, as a result, agriculture suffers
from a lower rate of production.
3) Lack of investment
Farmers spend most of the income to meet their daily necessities. They are mostly
unable to save enough to invest in agriculture, buy modern agricultural tools,
chemical fertilizers, and improved seeds. Most of the farmers are heavily in debt as
they are forced to borrow money at high interest rates.
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4) Lack of market
There is lack of easy access to markets for agricultural goods. Farmers have to deal
with the middle men and are unable to get the right price for their products. There
is a huge gap between the price consumers pay for food items in the local markets
and the price at which farmers sell their products to middle men and traders. As a
result, the sales price of agricultural products often tends to be lower than the cost of
production. In this situation, farmers are unable to buy fertilizers, seeds, and tools.
5) Lack of transportation
The lack of transportation is one of the major problems for the development in
Nepal. This has also impacted the agriculture sector. Many areas in Nepal have great
possibility for the development of agriculture. But, in the absence of transportation
facilities, such areas are not utilized properly. Similarly, farmers in these areas are
unable to transport their products to the market. For example, a large amount of fruits,
such as apples and oranges, are produced in the Himalayan and the Hilly regions.
Due to the lack of transportation, farmers are unable to bring fruits produced in these
regions to the markets in urban areas. Similarly, seeds, fertilizers, and agricultural
tools are not available in remote areas of the country.
6) Lack of irrigation
As per the Interim Three-year Plan, about 40 percent of arable land (11, 68, 144
hectares) has irrigation facility. The rest of the farm land has to depend on monsoon
for cultivating. Global warming and climate change have also affected the climate
patterns, rainfalls, and seasonal patterns as well. The prolonged-drought, floods,
soil erosion and landslides are other problems that the agriculture sector faces these
days. Such natural disasters have adversely affected the existing water sources. So
the agricultural production has decreased. Harvesting rain water can be an effective
way of improving farmland in the Hilly region, but it tends to be expensive.
7) Lack of equipment
The use of modern tools and technology, seeds and fertilizers increases the
productivity of land. However, such equipment and expertise are either not available
in Nepal or farmers cannot simply afford to buy due to high cost. The government is
unable to provide subsidies to farmers to buy necessary tools and technologies.
8) Unequal distribution of land
The majority of farmers in Nepal own less than two hectares of land on average,
whereas a few landlords possess thousands of hectares of land that they do not
cultivate. Most farmers have a small plot of land which is difficult to plough and till,
using modern equipment. Due to rapid urbanization, the fertile land has also been
used up for constructing houses. This unequal distribution of land has a negative
effect on the gross agricultural production in Nepal.
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9) Lack of disease control and preservation of food
Every year, agricultural production suffers because of diseases that destroy crops
and animals. There are not enough preventive measures applied to protect crops
and cattle from diseases. The agriculture sector also lacks sufficient number of
agronomists, veterinarians and other agro-technicians. There is also a lack of cold
stores to preserve perishable agro-products.
10) Lack of agriculture subsidy
In Nepal, government does not subsidize farmers. As a result, farmers are often
unable to buy tools, seeds, and fertilizers. In many developed countries, government
provides assistance to the farmers through direct subsidies. Similarly, we are yet to
develop sound and effective insurance system, which can help protect farmers from
the damage caused by natural disasters such as hails, flood, and crop-diseases.
11) Lack of visionary government policy
There is lack of effective agricultural policy for the commercial development of
agriculture in Nepal. Policies such as identifying pocket-areas for a particular type of
farming, provision for farming subsidy, policy related to modernization of agriculture
are yet to be formulated.
Solutions to agricultural problems or ways to modernize agricultural system
As the agriculture sector faces multiple problems, the government, the private sector and
farmers should be equally involved to develop agriculture. The following measures can
be taken to solve the problems related to agriculture:
a) Modernizing and commercializing agriculture with modern tools, technology, seeds and
fertilizers
b) Supplying sufficient number of trained manpower to identify the farmers’ needs and
help them use improved seeds, modern tools and technology
c) Establishing training institutes, colleges or schools to produce skilled manpower, who
can effectively work toward solving the problems related to diseases, environment, and
technology
d) Producing modern tools and technology, seeds and fertilizers within the country or
making such things available in the local markets
e) Developing markets in local areas so that it becomes easier for farmers to buy and sell
products
f) Developing effective transportation network to carry goods from all parts of the country
g) Building a sufficient number of cold stores to preserve and store goods for a long time
h) Establishing small or medium scale agro-based industries in local areas to help reduce
unemployment and utilize the local resources
i) Establishing cooperatives and agricultural banks to mobilize savings and capital
j) Identifying and selecting the areas for particular type of farming such as tea farming in
Ilam, cotton in Bardia, coffee in Gulmi, horticulture and animal husbandry in the Hilly
and the Himalayan region
k) Introducing specialized farming to reduce cost of production and share ideas
l) Developing the irrigation system so that farmers can grow crops throughout the year
m) Providing soft loans to encourage the farmers in using the latest technology which
enhances the productivity
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n) Implementing land reform programme and initiating cooperative crops
o) Encouraging educated people to put their efforts in agriculture
Glossary
subsistence farming : farming that is only sufficient to meet the daily necessities
specialized farming : to grow a particular type of crop in an area
animal husbandry : cattle raising; animal farming
middle men : trading people who buy things from one person and sell to another
In-class Activity
“Modernization” and “commercialization” are some solutions often cited to solve the
problems faced by agriculture. Imagine you are given the task of modernizing and
commercializing a farm. How would you do that? Make a list of things that you will
do to modernize and commercialize the farm. Share your ideas with the class.
Exercise
A. Offer very short answer to the following questions.
1. What is subsistence farming?
2. Why does an agriculture in Nepal suffer from a lower rate of production?
3. Write one way to subsidize the farmers.
4. How does an unequal distribution of land create a negative effect on the gross
agricultural production?
B. Offer short answer to the following questions.
1. An unequal distribution of land is one of the major problems of agriculture in
Nepal. Discuss.
2. What would you suggest to solve the problem of unequal distribution of land?
3. “In Nepal, the lack of markets and transportation facilities is a more serious
problem than the lack of modern technology.” Justify the statement with examples.
4. What are the major problems of agriculture in Nepal?
5. What is the present situation of irrigation in Nepal? What can be done to solve
this problem?
C. Offer long answer to the following question.
What is a modern agriculture system? What are its advantages compared to a
traditional farming system?
Self- Discovery: Project Work
Radio Nepal and Nepal Television broadcast agriculture related programs every day.
Listen to or watch Agriculture Programs over a week and present a report on the
situation, trends, major problems discussed in the media.
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Lesson Industry
8.4
Pre-reading Activity
Make a list of goods that you use or consume on a daily basis. Then, discuss how each
item is produced. In the following table, fill in the items in each category based on the
type of industry that produces each goods and source of raw materials.
Category Agro- Construction Energy- Manufacturing Mineral Service Tourism
of
based based
industry
Source
of raw
materials
Goods
Reading
Industry is the backbone of modern economy. Most of the developed nations of the world
are industrialized. Industry is the place where goods are produced in a large quantity
using machines and raw materials. Industries produce goods for commercial purpose.
In other words, industry means producing goods in a large quantity using machines,
manpower, and raw materials.
Types of industry
Industries are of two types – service-oriented
and production-oriented. The production-
oriented industries manufacture goods
using and processing raw materials. Cement
factories, sugar mills, chocolate factories,
flour mills, brick factories, etc. are some
examples of production-oriented industries.
Service-oriented industries provide services
to the people. For example, hotels, training
institutes, colleges, and universities, etc. are
service-oriented industries. These two types of industries are interrelated.
Alternatively, industry can also be divided into three major types: cottage industries,
medium scale industries, and large scale industries. Such a division is based on the
volume of production, amount of capital invested, level of power consumption and use of
human resources. Government of Nepal follows this division to categorize industries in
274 Oasis Social Studies Grade - 9
Nepal. The industrial development in Nepal has been
very slow as we lack basic infrastructures.
Prerequisites for industrial development
The following are the prerequisites for the development
of industries:
(i) effective transportation and communication
(ii) availability of skilled manpower and raw materials
(iii) electricity, capital, and strong markets
(iv) political stability, favourable laws and policies
Importance of industry in Nepal
Industries create employment opportunities and fulfill the need of people, providing
necessary goods. The industrial sector in Nepal needs to develop to reduce employment
pressure on agriculture. Industry is important because of the following reasons:
i) Creates employment opportunities
ii) Helps reduce poverty and improve the quality of life
iii) Helps reduce economic disparity among people as people from various sectors get
employment in different types of industries as per their education and skills
iv) Helps utilize local resources, skills, and raw materials
v) Increases export, reduces import and helps maintain the balance of trade with foreign
countries
vi) Helps earn foreign currency by exporting goods
vii) Increases national income as well as per capita income
viii) Helps promote national identity, prestige, and position in international markets
ix) Helps develop skills and technology
x) Reduces pressure on land and forests as it provides alternative employment to those
who depend on land and forests for livelihood
Prospects of cottage and small scale industries
Traditional skills and arts have been developing
over the years in Nepal. Still available sources and
means have not yet been utilized properly. Adequate
agricultural products are also available. A large amount
of remittance comes to Nepal. There is more human
pressure on agriculture. Almost 0.4 million manpower
comes to the market every year. There are several
returnees from the foreign countries waiting for better
opportunities to do something good. There are good prospects of cottage and small-scale
industries staying at our own place with the use of a small amount of capital, local skill
and technology.
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Cottage and small scale Industry: problems and their solutions
Nepal has a lot of local resources and materials, manpower with local skill and ability.
Therefore, there are a lot of possibilities of cottage and small scale industries. Still there
are various problems in this sector. That is why cottage and small-scale industries could
not be run effectively.
Problems of cottage and small-scale industries and their measures of solutions are as
follows:
Problems Solutions
1. Lack of market to produce quality products, to advertise, to explore
local and international market, to encourage to use
domestic products
2. Unable to compete with to produce goods that cannot be produced by large scale
large scale industries industries, to emphasize on artistic aspect of products to
support the cottage and small scale industry, protection
policy and tax exemption policy
3. Traditional technology to use modern machines, equipment and technology
4. Poverty to formulate and implement policies and programmes
to make employment opportunities available to the
people in the rural areas as most of the people in the
rural areas face difficulty to make both ends meet
5. Lack of capital to promote savings to manage soft loan at reasonable
interest rate, to make government subsidy available
6. To change the industrial The government has to formulate and implement the
policy frequently right industrial policy of permanent nature and create
appropriate environment
7. Lack of skilled labourers to manage contemporary education and training as there
is a problem in running industries due to traditional
skill and experience
Glossary
tax exemption policy : the policy of reducing taxable income
subsidy : money paid by the government to keep the price of
product or service low
In-class Activity
If you were to become an industrialist in a the future, which industry would you
choose to establish? Give reasons as to why you would choose that industry and how
that industry will contribute to Nepali economy. Share your views with the class.
276 Oasis Social Studies Grade - 9
Exercise
A. Offer short answer to the following questions.
1. Why is industry called the backbone of modern economy?
2. How are service-oriented and production-oriented industries interelated?
3. How is industry the source of employment?
4. How can industry promote national dignity?
5. What is an industry? What are its major types?
6. What are the prerequisites for the development of industry? What can be done
to accelerate the development of industry in Nepal?
7. Introduce cottage industry with examples.
8. “Cottage industry is the best type of industry in rural Nepal.” Justify.
9. What could be the advantages and the disadvantages of the large and small
scale industries?
10. Write a short note on the prospects of cottage and small scale industries.
B. Offer long answer to the following questions.
1. Explain the importance of industry for the development of a country.
2. Compose a dialogue between two friends, explaining the problems faced by
cottage and small industries. Also suggest measures to solve the problems.
Self- Discovery: Project Work
We use products from famous companies such as Sony, Nokia, Samsung, Honda,
Toyota, Intel, etc. How do these products come to our markets? Make a list of
goods that we produce and export to foreign countries. What can we do to make
our products as competitive as the imported products we use on a daily basis?
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Lesson Industrial
8.5 Development: Problems
and Their Solutions
Pre-reading Activity
Observe the image below and discuss the questions that follow.
A girl carrying a child stands in front of closed shops as she watches protesters
(unseen) march on the road during the general strike against the draft of the new
constitution, in Lalitpur, Nepal August 16, 2015.
Source: The Himalayan Times
a) What does this image taken from The Himalayan Times show about the
current situation of Nepali politics?
b) In what way do frequent general strikes like this impact Nepali economy?
c) As a class discuss and suggest alternative ways of expressing political
discontent than calling for a general strike.
278 Oasis Social Studies Grade - 9
Reading
Problems of industrial development
We know that industry is an indispensable part of economic development. Without a
strong industrial sector, a country cannot achieve its development goals. Unfortunately,
at present, industrial sector in Nepal is heading toward a wrong direction. The existing
industries mostly remain closed or are running below the capacity due to lack of power
supply, political instability, and unfavourable government policies. Some industries have
already been collapsed. We are unable to create favourable environment to establish new
industries as well. At present, the industrial sector in Nepal has been facing a number of
problems. Some of the major problems are as follows:
a. Conflict and political instability with frequent bandas
b. Lack of investment and capital
c. Inability to compete with multinational companies in global markets
d. Inability of the government to control malpractices in the industrial sector
e. Lack of fuel and electric power
f. Lack of raw materials needed for industries
g. Lack of proper markets within and outside the country
h. Lack of cheap means of transportation to import and export industrial goods and
raw materials
i. lack of direct access to sea route to export goods to third countries
j. Lack of clear vision, policy, and strategy
Ways to solve the problems
a. Stable government and political commitment for the development of industries
b. Clear vision, policies and strategies for the development of industry
c. An easier registration system and result-oriented policy than the procedure-oriented
one
d. An easy access to bank loans at lower interest rates
e. Development of infrastructures such as transportation, communication and electricity
f. Technical education to produce skilled manpower within the country
g. Availability of and access to market in local, national and international level
h. Eco-friendly industries that can sustain for a long time without disturbing the
environment
i. Security and friendly environment for both workers and owners
j. Provisions for large storage to stock seasonally available raw materials
k. Favourable monetary policy to attract foreign investment
Oasis Social Studies Grade - 9 279
heading : Glossary
malpractice :
commitment : moving towards
monetary : improper or unethical practice
adulterate : bound to something emotionally or through action
related to regulating money
mixing low quality materials to food or other products
In-class Activity
Read the facts below.
According to the United Nations Department of Safety and Security (UNDSS),
there were 1205 events of general strike in the year 2010 only.
A public website, nepalband.com has recorded 100 separate actions in one month,
and up to nine in one day
Now, discuss why Nepal is suddenly witnessing such an increase of various forms
of band over the years. Make a list of impacts such strikes are likely to have on the
industrial sector.
Exercise
A. Offer very short answer to the following questions.
1. Why is industry an indispensable part of economic development?
2. What negative impact regular strikes have on industry?
3. Why do people hesitate to invest in industries in Nepal?
4. What should the government do to attract foreign investment in Nepal?
B. Offer short answer to the following questions.
1. What are the major problems of industrial sector in Nepal?
2. Why are many industries in Nepal established in the Terai region?
3. How is politics related to development?
4. What are the conditions for the development of industry in Nepal?
C. Offer a long answer to the following question.
How can the problems related to industrial development be solved? Explain.
280 Oasis Social Studies Grade - 9
Lesson Medium and Large
Scale Industries
8.6
Pre-reading Activity
What types of industries are mainly found in Nepal ? Discuss in the class.
Reading
The businesses run to produce quality products in a large quantity using a huge amount
of capital, skilled manpower and modern machines and equipment are called medium
and large scale industries. According to Industrial Business Act, 2054 industries having
the fixed capital worth 30 million to 100 million rupees are called medium industries.
The large industries have the fixed capital worth of more than 100 million rupees. Sugar,
cement, cold drinks, iron, zinc, leather, jute, paper, cigarettes, clothes, tea, bricks, tiles,
soap, etc. are some of the medium and large scale industries.
Importance of medium and large scale industries
Medium and large scale industries have to play an important role to make the country
economically strong. They provide employment opportunities to the people. At the same
time they help to increase national income. The country can be self-reliant if we develop
such industries. The importance of medium and large scale industries is as follows:
a. Foundation of economic development
If medium and large scale industries develop, basic industries like iron, cement,
electrical machines, equipment will develop. There will be suitable condition for
industrial development in the country if basic industries are established.
b. Creation of employment opportunities
Due to lack of adequate economic activities, a large number of youths have gone out
of the country. On an average more than 1500 Nepalese go to Gulf and other foreign
countries in search of better opportunities everyday. If we can develop medium
and large scale industries properly, we can provide employment to all the youths
going out of the country. According to the data published by the Department of
Industry, there are 112 large industries. Around 12743 people got employed in such
industries. Similarly, in 99 medium scale industries 6379 get employment. We can
infer from these data that unemployment problem can be solved if we develop
medium and large scale industries.
c. Improvement in lifestyle
The income of the people increases with the increase in employment due to rapid
development of medium and large scale industries. There is more use of consumer
goods with the increase in income. The price of the products decreases if there is
more supply of consumers' goods. Consequently, goods will be easily available.
Finally, it results in the improved lifestyle of people.
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d. Help in agricultural development
Agricultural materials are required for agricultural modernization. The country
needs medium and large scale industries for agricultural implements, chemical
fertilizers, insecticides, hybrid seeds, large irrigation projects. With industrial
development, human pressure on agricultural can be transferred to industries to
increase production in the country.
e. Increase in export decreasing import
Industrial development has to play an important role to reduce foreign trade deficit
of Nepal. Import can be decreased if essential goods are produced in the country
itself. On the other hand, if industrial production is increased, such products can be
exported to foreign countries to earn more foreign currencies.
f. Increase in national income
Industrial development increases economic activities rapidly. Per capita income
increases as employment opportunities increase. As a result, capital formation
increases in a country. Finally, industrialization increases government income.
Problems of medium and large scale industries and their solution
measures
Though industrialization is going on in Nepal, success has not been achieved as per our
expectation. The government has tried to formulate industrial policy by encouraging
industrialists, labourers, traders and managers for its development. The problems faced
by such industries and their solutions are as follows:
Problems Solution measures
1. Lack of capital: Adequate capital to establish financial institutions to provide loan,
is required to manage machines, to manage industrial loan reasonably, to encourage
equipment raw materials, foreign investment, to increase savings, to
labourers, building, godowns encourage internal capital investment
2. Lack of raw materials to increase production of food grains and cash
crops, to utilize natural resources
3. Problem of market to explore market, to increase quality of products,
to increase people's purchasing power
4. Lack of facilities of transportation to develop transportation and communication
and communication rapidly
5. Energy problem to increase hydroelectricity production, to use
other alternative sources of energy, e.g. petroleum
products, coal, local solar energy and wind energy
6. Lack of export entrepreneurs and to manage export entrepreneurs
skilled labourers
7. Lack of basic industries to develop small processing-related industries, to
develop iron, steel, cement industries
8. Strike, bandh, agitation to manage harmonious relation between
entrepreneurs and labours
to create good working environment
to manage industrial security
9. Unstable politics to end political instability
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10. Change of industrial and to formulate and implement right industrial policy
impractical tax policy to stop the trend of changing industrial policy after
every change in government
to adopt clear tax policy
Prospect for medium and large scale industries
There is no adequate development of medium and large scale industries in Nepal. With
the development of basic industries there will be agricultural development. Agriculture
supplies raw materials to such industries. There is negligible utilization of mineral
resources in Nepal. There are possibilities of development of industries by utilizing forest
resources, mineral resources and water resources.
consumer : Glossary
insecticide :
hybrid seeds : a person who buys goods and services
a chemical substance used to kill insects
seeds produced by cross-pollinated plants
In-class Activity
Make a list of medium and large scale industries of your locality. Visit any one of the
industries and find out the answer to the following questions.
1. What is the name of the industry? 2. What are the major products?
3. How are raw materials supplied to it? 4. What is the total production?
5. How is the market of the goods? 6. How many people are employed in it?
7. What are the major problems of the industry?
Exercise
A. Offer very short answer to the following questions.
1. Give some examples of medium scale industries.
2. Give some examples of large scale industries
3. How do industries create jobs?
4. Why is there negligible utilization of mineral resources in Nepal?
B. Offer short answer to the following questions.
1. How are the medium and large scale industries defined in the present act ?
2. List out the importance of the medium and large scale industries.
3. Explain the prospects of the medium and large scale industries in Nepal.
4. Why have the medium and large scale industries not been developed in Nepal?
Explain.
C. Offer a long answer to the following question.
What do you mean by medium and large scale industries? Write down the major
problems
and solutions to the problems of medium and large scale industries in Nepal.
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Lesson Trade
8.7
Pre-reading Activity
Study the summary of Nepal’s foreign trade data for the year 2071/ 72 below and
discuss the questions that follow.
Fiscal Year 071/ 72 Total (in billion) Compared to Share of total trade
(11 months) previous year
78.06 10.1%
Export 694.06 Decrease by 5.8% 89.9%
Import Increase by 5.8%
Source: Trade and Export Promotion Centre, Nepal
a) According to the data, how much trade deficit (loss) does Nepal incur?
b) Compared to the previous year, how would you evaluate the foreign trade
situation of Nepal for the year 071/ 72?
c) What could be the reasons for the increase of imports compared with the
decrease of export?
d) Can you make some suggestions to reduce Nepal’s trade deficit?
Reading
Buying and selling of goods is called
trade. In the past, people used to
exchange goods with goods, which
is called barter system. The trade of
goods often takes place in markets,
which may be local, regional, national
and international. Through means of
transportation, trading goods are carried
away hundreds and thousands miles
away from the area of production. For
example, vegetables produced in South
India are available in the Kathmandu
markets; green vegetables produced in
Bhaktapur are exported to Qatar and
other Gulf countries. And, at the national
level, rice produced in the Terai is carried to the Hilly and Himalayan regions; apples
grown in the Himalayan region are sold in Kathmandu. In terms of the location of markets,
trade can be of two types-domestic or internal trade and external or international trade.
284 Oasis Social Studies Grade - 9
Domestic trade
If the produced goods are bought and sold within the country, it is called domestic or
internal trade. The domestic trade helps circulate necessary goods in different parts of the
country. All necessary goods cannot be produced in one place. Therefore, domestic trade
helps make goods produced in one place available in another place. Such trade goods are
transported from one place to another and sold in the local markets. For example, rice
produced in the Terai region is traded in the Hilly and the Himalayan regions to fulfill the
daily need of people living in those areas. Domestic trade, in this sense, helps maintain
the flow of cash within the country.
International trade
The trade between and among countries across the borders is called international trade.
Every country imports required materials that are not produced within the country. If
a country has a large volume of international trade, then it indicates that the country is
economically sound and developed. Exporting goods to other countries helps utilize the
means and resources of the country and earn foreign currency. A strong foreign trade
creates employment opportunities for people as well, improving their living standard.
Modes of foreign trade
Import and export are modes of international trade. If a country sends out goods to other
countries, it is called export trade; if a country buys goods from other countries to meet
its need, then it is called import trade. Similarly, if a country exports more than it imports,
then that country has a favourable trade balance. One of the major reasons for importing
goods from other countries is that such goods are not produced within the country.
Most often countries import goods for this reason. Secondly, some countries may import
goods even if they are produced within the country because imported goods are cheaper
than domestically produced ones. Generally, developed countries import goods for this
purpose. Sometimes, countries also import goods because of the high quality of the goods
produced in other countries.
If a country imports more than it exports, it bears trade loss because it has to pay more
than it earns. Such disparity between import and export causes trade deficit. Nepal
has trade deficit with India and other countries as Nepal imports more than it exports.
Developed countries have trade balance or profit. Developing and underdeveloped
countries tend to have trade deficit because they often export low-priced consumer goods
and raw materials, while importing high-priced capital goods such as machinery, vehicles,
electronic and luxurious goods, etc. Contrary to this, developed countries import low-
priced raw materials, agro based goods and low-wage manpower; but they export high-
priced capital goods and luxurious goods. Nepal also exports low-priced raw materials
and agro-based goods and imports high-priced capital goods, petroleum products, and
machinery. Hence, Nepal experiences trade deficit.
Importance of foreign trade
Only internal trade cannot fulfill the needs of people and the nation. A country practically
cannot produce all the goods and services it needs. Being an underdeveloped country,
international trade holds an important position in Nepali economy. The international
trade is important because of the following reasons:
Oasis Social Studies Grade - 9 285
Import
a) Helps supply required goods that cannot be produced within the country
b) Helps develop the country utilizing local resources using foreign machines and
equipment
c) Helps meet people’s need for goods through imports
d) Helps conduct different projects using foreign knowledge and technology
e) Helps develop people’s skills and knowledge
f) Helps increase revenue due to taxation on foreign imports
Export
a) Helps utilize local resources and produce goods to export
b) Promotes employment opportunities
c) Helps earn foreign currency
d) Reduces trade deficit and increases profit by exporting goods in a large amount
e) Creates national identity by exporting high quality goods to foreign markets
f) Increases national income
g) Helps develop knowledge, skill, and technology in the country
revenue : Glossary
taxation :
money collected for public use by a government
system of taxing people
In-class Activity
Get into small groups and make a list of major goods that Nepal imports from and
exports to foreign countries. Then, fill in the table below:
Exports Imports
286 Oasis Social Studies Grade - 9
Exercise
A. Offer very short answer to the following questions.
1. Write one difference between export and import.
2. What do you mean by balance of trade?
3. What is an international trade?
4. What is domestic trade?
5. Name the major trade of the Terai, the Hilly and the Mountainous regions of
Nepal.
B. Offer short answer to the following questions.
1. What is trade? How is domestic trade different from international trade?
2. Briefly explain the terms “import,” “export,” and “trade balance”.
3. What are the causes of Nepal’s foreign trade deficit? How can Nepal reduce such
deficit?
4. Why are many industries in Nepal facing uncertainty and possible closure?
What can be done to solve this problem?
5. Why is foreign trade important for Nepal? Explain.
C. Offer a long answer to the following question.
What type of goods are imported to and exported from Nepal? Make a table with
export/import columns and compare the price of goods listed in two columns.
Self- Discovery: Project Work
Generally, every newspaper publishes economic news on its business page.
Review a newspaper published within a week. Collect news related to trade,
industry, and agriculture. Then, write a brief review essay and present in the class.
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Lesson Trade Diversification
8.8 of Nepal
Pre-reading Activity
What is the trend of trade in Nepal ? Discuss in the class.
Reading
Trade diversification means the supply of different goods not only limited to a place or
country but to different places and countries. The country can develop economically if
trading area becomes as broad as possible. We should not only produce limited goods
but several other new goods and services so that it helps in the promotion of trade of the
country.
The trade can be diversified in two ways. b. Goods wise diversification
a. Region wise/ Country wise diversification
Region wise/Country wise diversification
If the produced goods are sold and distributed in any region of a country, it is called
region wise/country wise diversification. Trade will flourish if there is diversification. In
the ancient time Nepal had foreign trade only with India. Nepal started having trade with
Tibet after the Nepal-Tibet Trade Agreement during the tenure of Kaji Bhim Malla. Nepal
used to import sheep, Chyangra, gold, wool, salt whereas it used to export rice, flour,
chilli, sugar, etc. to Tibet. Till 2020 BS Nepal had foreign trade only with India and Tibet
of China. Nepal expanded foreign trade with overseas countries after 2020/2021 BS. At
that time Nepal exported goods worth 25.2 crore rupees whereas she imported 0.50 crore
rupees worth of goods.
Nepal adopted the policy of trade diversification since the Fourth Five-Year Plan of Nepal
(2027-2032 BS). Nepal is earning foreign currency producing export-oriented goods to several
countries. Trade diversification plays a significant role in minimizing deficit of trade.
Nepal's foreign trade with various countries
S.N. Area Export (in %) Import (in%)
2011/012 2012/013 2011/012 2012/013
1. Asia 78.2 78.8 97.7 92.6
2. Africa 0.5 0.2 0.5 0.4
3. America 8.9 8.5 3.4 3.1
4. European Union 10.7 10.0 2.3 2.2
5. Europe 1.3 1.9 1.5 1.2
Source: Trade and Export Promotion Centre, CBS 2013
288 Oasis Social Studies Grade - 9
Goods wise diversification
If any country has to strengthen her trade she has to focus on trade diversification. We
should try to produce and sell newer goods and services instead of producing only
limited goods and services. If we look into the foreign trade of Nepal, goods wise
diversification has increased as compared to the previous time. Till 2041/ 2042 BS Nepal
had been exporting pulses, rice, maize, wood, oilseed cake, catechu to India. These days
Nepal exports pulses, cardamom, herbs, woollen clothes, Nepali paper, catechu, leather,
readymade clothes, carpet, live animals, tea, silver ornaments, readymade goods of leather,
pashmina, handicrafts, etc. As a result, there is improvement in Nepalese trade. We can
earn more foreign currency if we export manufactured goods instead of unprocessed and
semi-processed raw materials
Glossary
oilseed cake : residue obtained after the extraction of oil from oilseeds
catechu : a deciduous, thorny tree
pashmina : clothing made from fine, soft wool
In-class Activity
Study the table related to export and import given in the lesson. Analyse it and
prepare a report on it.
Exercise
A. Offer very short answer to the following questions.
1. How is the production of goods related to the promotion of trade?
2. When did Nepal start its trade with Tibet?
3. When did Nepal start the policy of trade diversification?
4. Why is it necessary for a nation to focus on trade diversification?
5. Write any four major exports of Nepal.
B. Offer short answer to the following questions.
1. What is trade diversification? Explain.
2. Why is trade diversification necessary to promote trade?
3. What is the region-wise/country-wise diversification?
4. Write a short note on goods wise diversification in Nepal's foreign trade.
C. Offer a long answer to the following question.
Draft a dialogue between two friends on trade diversification of Nepal.
Oasis Social Studies Grade - 9 289
Lesson Trade Promotion and
8.9 Marketing
Pre-reading Activity
Imagine yourself as an entrepreneur. How would you manage the market of your
products?
Reading
Problems facing trade sector have to be solved in order to promote trade of Nepal. It is
necessary to make produced goods reach the market. The following measures have to be
adopted for trade promotion and marketing in Nepal:
1. To produce quality goods
2. To emphasize on producing artistic goods based on traditional skill
3. To provide education and labour training
4. To pay attention to border management
5. To produce goods based on the study of world market demand and to explore new
destinations
6. To initiate for the facilities given to the landlocked countries
7. To emphasize on region-wise and goods-wise trades diversification
8. To prepare simple tax policy and trade promotion and marketing
Some of the activities conducted by the Nepal government for trade
promotion and marketing
1. To conduct training to produce skilled sculptors for the increase in production
of idols
2. To conduct training for labourers to improve efficiency in producing more readymade
garments
3. To conduct training on lokta, allo processing and Nepali handmade paper production
4. To conduct training for women, Dalits, Janjatis, aborigines, and unemployed youths
to produce thread of allo and weaving of clothes
5. Publication of trade bulletin
6. To collect data of Nepal's foreign trade
290 Oasis Social Studies Grade - 9
7. To publish Nepal Export Trade Directory after collecting detailed particulars of
exporters of Nepal
8. To publish Nepal's Bilateral Trade and Transit Agreements including bilateral trade
agreement with 17 nations, BIMSTEC, SAFTA
9. To publish Nepal Trade Statistics
Glossary
tax : an amount of money to be paid to the government for using goods or
services
lokta
allo : a type of plant whose bark is used to make paper
: a tall perennial herbaceous shrub that grows without cultivation
In-class Activity Industry
Interpret the given diagram. Agriculture
Trade
Exercise
A. Offer very short answer to the following questions.
1. What is trade promotion?
2. Why is marketing the most important factor in trade?
3. What do you understand by simple tax policy?
4. What is trade bulletin?
5. What is Nepal Export Trade Directory?
B. Offer short answer to the following questions.
1. 'There is necessity of trade promotion and marketing in Nepal.' Justify the
statement.
2. Clarify the importance of trade promotion and marketing.
3. What are the activities conducted by the government of Nepal for trade
promotion and marketing?
C. Offer a long answer to the following question.
In your view, what should be done to promote trade and market in Nepal?
Explain.
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Lesson Trade : Problems and
8.10 Their Solutions
Pre-reading Activity
You have observed in the previous lesson that Nepal’s foreign trade deficit is
soaring over the years. As such, Nepal’s economy has become predominantly
trade-based economy rather than production. Discuss the advantages and
disadvantages of trade-based economy. How can Nepal reduce her dependency on
trade and increase the contribution of industry to national economy?
Reading
Although foreign trade is inevitable, continued trade deficit leads to unhealthy economy.
As you know, Nepal’s foreign trade, due to massive amount of trade imbalance, is facing
many problems. Some of them are as follows:
1. More focus on trade than on industry
In recent times, the private sector and other investors are attracted to trade than
industry. Due to unfavourable situation for industry, the business community seems
to prefer importing goods and selling them in local markets. It may have different
reasons like frequent strikes, political interference, insecurity, lack of raw materials,
fuel and electricity. Such conditions make it difficult for industries to run freely,
leaving no choice for industrialists but to divert their business to other secure areas.
Recently, many industries have been closed, forcing the business sector to invest in
importing goods from other countries. Too much dependency on foreign imports
reduces export and obstructs the growth of industry.
2. More import than export
Nepal is unable to export goods in high volume; the export goods such as raw
materials and agro-products are low-priced with little real value. The revenue
received from such goods cannot match with the money spent in importing high-
priced readymade goods and machinery from other countries. For example, Nepal
exports coffee and tea to Japan whereas it imports high-priced electronic goods and
vehicles from there. The real volume of trade in terms of monetary value, therefore,
tends to be in favour of Japan.
3. Landlocked country
Being a landlocked country, Nepal does not have access to sea ports. Rivers in Nepal
are not ideal for transportation. Nepal’s foreign trade heavily depends on the transit
policy of India; as a result, we face different legal and procedural issues to reach the
sea port. We face similar problems while importing goods from the third countries
as well. As our international trade depends on using Indian ports, at times, foreign
292 Oasis Social Studies Grade - 9
relationship and policies also affect trade. Nepal imports and exports goods paying
high transportation cost. It makes Nepali goods less competitive in foreign markets.
On the other hand, imported goods tend to be expensive in the domestic markets.
4. Open borders with India
Nepal has open borders with India. So, it is difficult to control illegal trading across
the borders. India produces goods in large amount and they tend to be cheaper in
Indian market than in Nepal. As a result, it is difficult to control informal trade across
the border. Since a large amount of trade occurs in this way, it negatively impacts the
revenue collection. Ultimately, such cross-border trade also hampers development as
Nepali goods cannot compete with the low-priced (without taxes) goods from India.
5. Import of luxurious goods
To fulfill the demand of people and to increase the national income from tax,
government allows to import luxurious goods—vehicles, gold, jewellery, expensive
clothes— from other countries. People spend a large amount of money in such goods;
it diverts capital to unproductive sectors. Such capital spent on luxurious goods
cannot be invested in more productive sectors such as industry and agriculture.
6. Money is invested in unproductive sectors
Nepal is unable to invest and mobilize saving in productive sectors. Whether it is the
money earned within the country or the money received through remittance, people
either save in a bank or spend buying land, gold or vehicles. These are unproductive
sectors. Uncontrolled investment in land and housing is unproductive and dangerous
for the economy. If the same amount of money is invested in productive sectors, it
helps develop industry and create employment opportunities. But, because of many
reasons such as unstable political environment, people invest in unproductive sectors
as they view land and gold as the secure areas of investment.
Solutions
• More focus on industrial growth and agricultural development than on trade
• Reduction of import and promotion of export
• Exploring alternative transit routes to access the sea
• Regulating informal cross-border trade
• Discouraging import of luxurious goods through progressive taxation
• Mobilization of saving and capital to productive areas such as industry and agriculture
• Providing incentives to export trade
inevitable : Glossary
trade imbalance :
divert : that cannot be stopped from happening
remittance : gap between import and export trade
revenue : put to use in another area; re-channel
money sent from one place to another
money collected through tax and other means
Oasis Social Studies Grade - 9 293
In-class Activity
In a group, visit the web page of Trade and Export Promotion Centre at www.tepc.
np and make a list of activities the Centre has been doing to promote export. Which
activities do you think could be productive and why?
Exercise
A. Offer very short answer to the following questions.
1. Why is there more import and less export of goods in Nepal?
2. What is the impact of too much dependency on foreign imports?
3. Why does Nepal's foreign trade heavily depend on the transit policy of India?
4. Why are Nepali goods less competitive in foreign markets?
5. Why is it difficult to control illegal trade across the borders?
6. Why is Nepal unable to invest and mobilize saving in productive sectors?
B. Offer short answer to the following questions.
1. How does Nepal’s geographical condition impact its foreign trade? Explain with
examples.
2. Why does a country allow to import luxurious goods even though they are
unproductive?
3. What are advantages and disadvantages of import trade?
4. Interview a few business persons in your locality and prepare a report on the
problems faced by the business sector.
C. Offer a long answer to the following question.
What are the major problems of foreign trade in Nepal? Give solutions to the problems.
Self- Discovery: Project Work
• Visit a local grocery shop or a general store and make a list of as many goods
as you can. Make a two-column table in which you list the “goods imported”
and “goods produced within the country.” Compare the price between
imported goods and domestic goods. Prepare a report explaining what your
finding tells about trade and industry in Nepal.
• Draw out a clear plan of what you will be doing in five years to come. Be
precise in stating your goals, time frame to achieve those goals, things you’ll
have to do, and money you’ll be spending to achieve your objectives. Share
your plan with the class.
294 Oasis Social Studies Grade - 9
Lesson
8.11 Economic Planning
Pre-reading Activity
Make a brief plan for one week. In the plan, list reading, writing, and learning
activities you plan to do over a week. Then, write a brief report of what you could do
and what you couldn’t as planned and talk to the class after the week. Make sure to
reflect why you were not able to do things that you planned.
Reading
A plan is an image, map or vision to represent the form and feature of desired situations
within a given period of time. It consists of systematic set of policies so designed and inter-
related as to promote stated, and where possible, quantitatively measurable, objectives
within a time horizon. Every conscious citizen makes a certain plan in order to meet
or fulfil his/her objectives. In the same way, the government also makes a certain plan
according to set priorities 'keeping' the available means and resources in mind with a
view to achieving well-defined objectives within a given period of time. In economics, we
call it economic planning.
The system of economic planning began in 1928 when the Soviet Union devised a five-
year plan. After the successful attempt of economic planning in the Soviet Union many
countries in the world started development activities through economic planning.
Generally the economic planning is of five years. Hence, in Nepal we call it five-year plan.
In Nepal, we have also executed three-year plans.
Beginning of Planning in Nepal
Nepal started its economic planning from 2013 BS as the first five-year Economic Plan.
Before it also some attempts were made as a part of planning. Till now, Nepal has already
implemented thirteen plans and currently the fourteenth plan is in progress.
Attempts of Economic Plan before 2013 B.S.
• Though the Rana Prime Minister Juddha Shumsher proclaimed the preparation of
the 20-year plan no solid work was found related to it.
• The first Company Act was implemented in Nepal in 1992 B.S. In the same year,
Industry Council was also established.
• In 2005, during the reign of Rana Prime Minister Mohan Shumsher, the National
Planning Committee was established. This committee prepared a 15 year outline/
framework to develop the transportation, agriculture, industry and other economic
areas.
Oasis Social Studies Grade - 9 295
• In 2007 B.S., Planning Committee was established. It had also prepared a 15-year plan
but it was not made public.
• In 2012 B.S., the then king Mahendra declared a five-year plan that was to be enforced
from 2013 B.S.
After the introduction of democracy in 2007 BS, a need for development was felt. Due to
the century-long Rana rule, the development in Nepal had taken a back seat. Everywhere
there were needs and necessities. There was lack of basic infrastructures such as education,
health services, and communication. People were facing scarcity, crisis, backwardness, and
unemployment. Malnutrition, illiteracy, unemployment were widespread in the country.
So, most of the yearly and five-year plans gave priority to infrastructure development,
surveys, data collection and fulfillment of people’s basic needs. Major economic and
administrative bodies of the state like Nepal Rastra Bank, Supreme Court, Rastria Banijya
Bank, Commission of Land Reform were established. Similarly, there was political crisis
and no particular form of government had been established and the nation also lacked
constitution. Therefore, targets set for the first five-year plan could not be achieved. From
the second three-year plan, Panchayat system was introduced and the situation was not
favourable for carrying out many development projects.
Up to the fifth five-year plan, infrastructure development was given priority. As a result,
emphasis was placed on developing agriculture, constructing roads, conserving forests,
developing the education sector. From sixth and seventh five-year plans, fulfillment of
the basic needs was included as the main objective of periodic plans. Because of many
reasons, undemocratic political system being one, Nepal could not fully achieve the
objectives set in these plans. From eighth five-year plan, poverty alleviation, sustainable
development, and regional balance were taken as the major objectives for economic
development. However, the development has been very slow and many stated goals
could not be achieved. From eighth plan, however, the focus shifted from the state owned
industries to the concept of public-private partnership.
Significant achievements, however, have been made in the development of industry (cottage,
medium, large scale and agro-based), agriculture (cultivation, animal husbandry, fishery,
poultry farm, etc.), markets (local, regional, national and international), transportation
(roadways and airways) and communication (paper and electronic media). There has
been an expansion in the service sector as well. Development in health, education (school,
college and university), drinking water, irrigation, human resource development, services
(hotel, tourism and bureaucracy) can be taken as positive signs. After the restoration of
democracy, an increased responsibility of government and commitment to development
has also been felt.
While devising an economic plan for the country a lot of factors have to be considered.
Factors influencing economic planning
The following are some of the measures planners should consider while making economic
plan of a country:
1. Available resources, budget, time, human resource, and technology
2. Objectives, goals, priority sector, policy and strategy
3. Target areas, beneficiary groups, and the need of the people
296 Oasis Social Studies Grade - 9
4. Role of the state, I/NGOs, CBOs (community-based organizations) and local
institutions in the development activities and in economic responsibility
5. People’s participation, and role of users' group and pressure group
6. Inclusion of all kinds of people like the Madhesis, the Dalits, the backward community,
the marginalized groups, women, farmers, labours, etc.
7. Policy that fits for local skills, knowledge, resources and technology
8. Regional balance and priority of people from remote and rural areas
9. Sustainable environment-friendly projects and continuity of capacity building
10. Plans, policies and strategies that give maximum output using limited means and
resources
Economic planning implemented till date
1. First Plan (B.S. 2013-2018)
Year without plan (B.S. 2018-2019)
2. Second Plan (B.S. 2019-2022) -Three year plan
3. Third Plan (B.S. 2022-2027)
4. Fourth Plan (B.S. 2027-2032)
5. Fifth Plan (B.S. 2032-2037)
6. Sixth Plan (B.S. 2037-2042)
7. Seventh Plan (B.S. 2042-2047)
8. Eight Plan (B.S. 2049-2054)
9. Ninth Plan (B.S. 2054-2059)
10. Tenth Plan (B.S. 2059-2064)
11. Eleventh Plan (B.S. 2064/065-2066/067) - Three year plan
12. Twelfth Plan (B.S. 2067/068-2069/070) - Three year plan
13. Thirteenth Plan (Fiscal year 2070/071-2072/073) - Three year plan
14. Fourteenth Plan (Fiscal year 2073/074-2075/076) - Three year plan
15. Fifteenth Plan (Fiscal year 2076/077-2080/081)
The Current 15th Five Year Plan
Long-term Vision
‘Prosperous Nepal, Happy Nepali’
A prosperous, independent, and socialism-oriented economy with a happy, healthy, and
educated citizens enjoying equality of opportunities, dignity, and high standards of living.
Oasis Social Studies Grade - 9 297
Long-term National Goals
Prosperity Happiness
1.1 Accessible modern infrastructure and 2.1 Well-being and decent life
intensive connectivity
1.2 Development and full utilization of 2.2 Safe, civilized and just society
human capital potentials
1.3 High and sustainable production and 2.3 Healthy and balanced environment
productivity
1.4 High and equitable national income 2.4 Good governance
2.5 Comprehensive democracy
2.6 National unity, security, and dignity
Long-term National Strategies
1. To achieve rapid, sustainable and employment-oriented economic growth,
2. To ensure affordable and quality health care and education,
3. To develop internal and international interconnectivity and sustainable cities/
settlements,
4. To increase production and productivity,
5. To provide a comprehensive, sustainable and productive social security and protection,
6. To build a just society characterized by poverty alleviation and socio-economic equality,
7. To conserve and utilize natural resources and improve resilience, and
8. To strengthen public services, enhance balanced provincial development, and promote
national unity.
The Fifteenth Plan
(Fiscal Year 2019/20 – 2023/24)
Background
The Constitution of Nepal has envisioned building an advanced, self-reliant, and socialism-
oriented economy. In the same vein, the Fifteenth plan has set a vision for achieving a
rapid and balanced economic development as well as prosperity, good governance, and
happiness of the citizens. This will be the first plan to achieve the targeted objective
through collaboration with private, cooperative, and community sectors and efficient
intergovernmental fiscal management among the three tiers of governments in the federal
structure. This plan will create the basis for attaining prosperity, happiness, and socialism-
oriented economy fruit of which will hopefully be enjoyed by the current generation
itself. The Fifteenth plan has been formulated with the aim of upgrading Nepal from a
least developed country to a developing country by 2022 and achieving the SDGs by 2030
to lift Nepal to the level of a middle-income country through an increase in income level,
development of a quality human capital and the reduction of economic risks.
298 Oasis Social Studies Grade - 9
During this plan period, the available resources will be optimally mobilized in order
to achieve economic growth that promotes productive employment generation, fair
distribution, and social protection and security. For this, the investment will be focused
on making economic activities more expanded and dynamic. The private, cooperative,
and community sectors will be mobilized by making them complementary to each other.
The economy will be oriented towards structural change by making it production and
employment-oriented and self-dependent through investment, productivity growth,
and entrepreneurship promotion from these sectors. The plan will be implemented so
as to achieve the economic, social, and environmental and good governance-related
targets based on cooperation, coexistence, and coordination principle among the federal,
provincial, and local levels according to the federal structure. The plan will be oriented
towards building an equitable society based on social justice. The plan has emphasized
increasing the size of the national economy by focusing investment in the areas that are
considered drivers of transformation through the mobilization of contributing sectors of
the economy and internalizing the commitments made at the international and regional
levels. This plan will focus on building the basis of economic prosperity and citizens’
happiness through coordination between the works of the three levels of government and
mobilization of internal and external resources as well as intergovernmental finance.
Major Quantitative Targets
Quantitative national goals and targets for prosperity are presented in table.
National goals, targets and indicators of prosperity
S. N. National goals, targets, and indicators Unit Status in Target for
FY 2018/19 the FY
1 Economic growth rate (at the basic price) Percentage 2023/24
6.8 10.3
2 Per capita Gross National Income US dollar 1,047 1,595
18.7 9.5
3 Population under the poverty line (absolute Percentage
poverty) 69.7 76
239 99
4 Life expectancy (at birth) Years
39 24
5 Maternal mortality rate (at per 100,000 live Number
births)
6 Child mortality rate under five years (at per Number
1,000 live births)
7 Adolescent reproduction (Under 19 years) Percentage 13 6
58 95
8 Literacy rate (above 15 years) Percentage 92 99
93 99
9 Youth literacy rate (15-24 years) Percentage 46 65
10 Net enrollment rate at the basic level (1-8) Percentage
11 Net enrollment rate at the secondary level Percentage
(9-12)
Oasis Social Studies Grade - 9 299
12 Gross enrollment rate at the higher Percentage 12 22
education 31 50
13 Population of working age groups with Percentage
trainings in technical and professional areas
14 National highways (above 2 lanes, including km 96 1174
fast tracks)
Railways km 42 348
15 Human Development Index Index 0.579 0.624
16 Civic Satisfaction Experience index Index 4.7 5.1
Population living in safe housing Percentage 40 60
17 Population with access to basic drinking Percentage 89 99
water
facility
18 Gender Development Index Index 0.897 0.963
19 Gender Inequality Index1 Index 0.476 0.39
20 Schools teaching in the mother tongue Number 270 324
21 Sites listed in the World Heritage List Number 10 12
22 Rule of Law Index 0.54 0.58
23 Corruption Perception Index Index 34 41
24 Families with basic food security Percentage 48.2 80
25 Participation of voters in elections Percentage 68.67 72
Source: National Planning Commission
300 Oasis Social Studies Grade - 9
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