Activity
The families of British Gorkha, who fought in the World War II and who served
still the 1990s have got permission to stay in Britain permanently. Is this good or
bad for the nation? Conduct a mini survey asking this question to people randomly.
Then write a brief report about your finding.
E ixerc se...
Answer the following questions:
1. What is cold war?
2. What is the Atlantic charter?
3. What do you know about the Pearl Harbour event?
4. Make a table and include the major events of the World War II?
5. When did the World War II start and come to an end?
6. "Pearl Harbour event made Japan suffer to the extreme level." Justify the
statement.
7. Dialogue and understanding are better than belligerent military confrontation.
Justify the statement with reference to the Second World War.
8. If there were no Rana rule in Nepal, the Nepalese would not take part in the
world wars. There was intimate relationship between the Ranas and the British.
How do you analyze these statements? Give your opinion
9. What were the consequences of the World War II?
10. Make a comparison between World War I and II.
11. After the World War II the wave if independence started in the World. What
was the cause? Explain.
iCommun ty Work
If we look at the history of the world, we can find many examples of the establishment of peace
and reconstruction after great revolutions. In Nepal also people had gone revolutions during
different periods. What sorts of reconstruction planning were made after each revolution and
to what extent were they implemented? Talk to the senior citizens or the local intellectuals of
your community and prepare a report on it.
301 Dynamic Social Studies - Book X
Lesson Identification, Preservation and
Promotion of the Historical Place
7.13
and Monuments
FACTS Changu Narayan temple is the oldest temple of Nepal has a history that dates
back to around 3000 years. The temple was originally built in the 4th century
to Understand during the Lichchhavi Dynasty and rebuilt in 1702 after a major fire occurred. It is
one of the world heritage sites.
Source: bossnepal.com
Social studies are based on learning by doing, research, field visit, interaction, and it
is skill development subject. On the basis of these facts students of class 10 of Bhanu
Morang Secondary School have visited Janakpur Dham and prepared their report.
Janakpur Dham
Introduction
The students of class ten of Bhanu Morang
Secondary School along with the four teachers
visited the most anticipating place called
Janakpudham on 2nd Falgun 2074. The place
Janakpur is located in province number 2 in Janaki Temple of Janakpur Dham
Dhanusha district. It is among the holiest
places of the Hindus is Nepal, which can be
visited by the people of around the World. In Treta Yuga, this place is believed to have
been the Kingdom of king Janak and birth place of Goddess Sita.
Objectives
To know the art architecture and sculpture of Janakpur Dham and their present
condition
Historical background culture and festivals of Janakpurdham and their
importance
Methodology
They used both primary and secondary methodology
They observed the art architecture and sculpture.
They interviewed the tourist, visitors, priests and local people.
They collected information from the books, internet, photos and leaflets.
Dynamic Social Studies - Book X 302
Findings
Janakpurdham is located in provinces No.2 in Terai region. It was named after the
king Janak, who ruled here in Tretayug. Goddess Sita was born here and married to
Ram in Ayodhaya.
The Janaki temple is built in Mugha style which shows religious tolerance. The
temple was constructed by Queen Brisabhanu Kumari of Tikam- gadh in BC
1955. It is also called Nau Lakha Mandir because it is believed that it costs 9
Lakh rupees in its construction.
There are very beautiful and artistic idols of lord Ram, Sita and Laxman.
The Ram mandir was constructed by Amar Singh Thapa.
The Bibaha Mandap is famous for its gardens and impressive idols of saints,
Hermits, Ram and Sita and their brothers.
The temple of Hanuman (Sankatmochan) is also visited by many devotees.
Some of the popular ponds like Danush Sagar, Ganga Sagar, Ranta Sagar etc
for ritual baths in Janakpurdham.
It is the major centre of Mithili Culture. Diwali Dussera, Chhath, Holi,
Rakhi are observed with great pomp and interest. Thousand of visitors visit
janakpurdham during Ram Nawami and Bibahapanchami.
Mithila painting is highly flourished in Janakpur.
Conclusion and Recommendation
Janakpurdham is important religious pilgrimage Sile Protection and preservation of
this place can enhance economy and conserve our ancient culture.
For the promotion and protection of the place
The local people and the government should work together.
Manage proper drainage system and public toilets to maintain sanitation.
Holy ponds should be kept clean.
Washing clothes and taking common bath should be stopped in the ponds.
Activities
a. You may have visited some of the historical or religious place. What kind of
plan you have made for your visit? Prepare a report and present it in your
class.
b. Why is it essential to preserve the historical place or monuments of an area?
Discuss the reasons with your friends.
303 Dynamic Social Studies - Book X
E ixerc se...
Answer the following questions:
1. What do you mean by religious place?
2. Why is it important to conserve religious and archaeological heritage?
3. Discuss the importance of historical and religious places in the point of view of
economy and tourism.
4. Write some ways to promote and protect the local heritages.
5. You must have done research to explore the historical and religious sites nearby
your locality. On the basis of your research prepare a model report on the
following subtitles.
a. Title and Introduction
b. Objectives
c. Methodology
d. Findings
e. Conclusion and suggestion
6. Why should we visit various historical and archaeological places?
iCommun ty Work
Find out nearest monument of your community have historical or religious or archaeological
importance. Make a plan to get more information about it and on the basis of your research
prepare a report.
Dynamic Social Studies - Book X 304
Review Questions
Answer the following questions:
1. What is the Delhi Agreement?
2. Mention the conditions coded in the Delhi Agreement.
3. What were the causes of rise of Panchayat System in Nepal?
4. How was Panchayat System? Explain.
5. What is referendum?
6. Explain Sukhani Massacre and Timburbote incident.
7. Write any two advantages of democracy.
8. Compare the movement of BS 2046 with that of BS 2063.
9. Describe the political condition of Nepal between BS 2046 and BS 2063 in four
points.
10. Describe the statement that "an autocratic ruling system never becomes
successful" in the context of Nepal.
11. Write a letter to your friend about telling him/her about the People's Movement
2062/63.
12. When were World War I and II fought?
13. What is understood by the "Sick Man of Europe"?
14. What is the Balkan League?
15. What is the Rome-Berlin-Tokyo Axis?
16. Compare the cause of World War I and II.
17. How was groupism responsible for the outbreak of both the World Wars?
Explain in detail.
18. List the Allied power and Axis power.
19. What do you mean by Black Hand society?
20. Prepare a report of any historical place which you have visited.
305 Dynamic Social Studies - Book X
Unit ECONOMIC ACTIVITIES
8
Learning Outcomes of the Unit
UNIT CONTENTS The competencies of the social studies curriculum in
the unit are to enable students to:
8.1 Economic Planning and
Current Plans in Nepal 307 q define economic planning.
q state the importance and possibilities of tourism in Nepal.
8.2 Importance of Tourism q importance of water resource as energy source in Nepal.
q learn about foreign employment with special reference to
Industries and Its
Nepal.
Possibilities 314
q understand the significance of cooperative in the
8.3 Importance of Hydropower economy of Nepal.
Projects and q define financial education and its importance.
q find out the financial tools.
Its Possibilities 321 q know about insurance with its significance.
q explore the situation of revenue and tax collection in
8.4 Foreign Employment 326
Nepal, and
8.5 Cooperative Society and Its
Economic Importance 330 q understand consumer's rights.
8.6 Financial Education 334
8.7 Financial Tools 339
8.8 Insurance 343
8.9 Revenue and Taxation 347
8.10 Consumer Rights 351
Review Questions 356
Evaluation Scheme for the Unit -8
Total Period(s): 17
Sl. Question Knowledge Creative, Critical Application, Practical Value & Total No. of Total Weightage Time
of Marks (Minute)
NO. Type & Understanding Thinking & Analysis & Research Skill Attitude Questions
– –
1. VSATQ – – – ––
2 x4=8 8x1.8=14.4
2. SATQ – – 1 12
2 x 7 = 14 14x1.8=25.2
3. LATQ 1 1 – –2
22 22 x1.8=39.6
Total 1 1 1 14
Note: V = Very | S=Short | L = Long | A = Answer | T = Type | Q = Q3u0e6stion(s) | 1 Mark = 1.8 minute(s)
Dynamic Social Studies - Book X
Lesson Economic Planning and Current
Plans in Nepal
8.1
FACTS In 1928 AD, the then Soviet Union started the first Five-Year Plan.
to Understand
Planning is a systematic approach to utilize means and resources. Proper planning
gives many benefits to an individual as well as to the nation. It gives economic
benefit, work can be completed within a targeted time and resources can be utilized
wisely to promote sustainable development. Economic planning is very important for
the development of the country. Knowing this fact Nepal started its first economic
planning in BS 2013. It is also known as Periodic plan.
We know the means and resources are limited which cannot be enough with the
increasing population but the needs and necessities are unlimited and emerging
rapidly. So to fulfill the needs and necessities on priority basis within certain period,
planning is needed to utilize the available budget and other resources which is called
economic planning. Economic planning means to list the needs and necessities on
the basis of priority and then plan for the utilization of the available budget and
resources, launch the suitable programmes to fulfill the needs within certain period
of time. Planning development is possible only due to the perfect economic planning.
The concept of economic planning comprises mainly the following things:
Vision of short-term needs and long-term needs
Specified time period
Specified targets and necessary strategies
Launching suitable programmes and activities to achieve the target within the
set time-period
History of Planning in Nepal
A 20 year economic plan was declared during the time of Rana Prime Minister Juddha
Shumsher. However, it was not implemented. Thereafter, 15-year economic plan was
made by Mohan Shumsher, but it was also not implemented. After the advent of
democracy in Nepal, Matrika Prasad Koirala, the then Prime Minister established the
ministry of Planned Development Activities in Nepal. This too was not implemented
successfully. In BS 2013 the National Planning Commission was established to
achieve the concrete goals. Five-Year Plan was made and implemented successfully
in Shrawan BS 2013 which was addressed by Late King Mahendra. The 10th Five-
Year Plan was continued till 2063/64. After the Mass movement II (2062/63), Nepal
became Federal Democratic Republic Country after the promulgation of Interim
Constitution 2063 the Three Year Interim Plan came into practice. The current plan
307 Dynamic Social Studies - Book X
is the Fourteenth Economic Plan 2073/074 -2075/76. Thirteen Three Year Interim
Plan aimed to transform Nepal into a developing country from least developed.
National Planning Commission has a long-term perspective of transforming Nepal
into a developing country from the least developed country status within the next ten
years.
Development of hydropower and energy sectors agricultural development in a
commercial way, basic education, health, drinking water and sanitation, good
governance, expansion of roadways, development of infrastructures, tourism and trade
are the priorities of the previous plan. Similarly, its strategies were the empowerment
of targeted groups of people and minimization of negative impacts of climate change.
The main challenges of the thirteen Thre-year Interim Plan was to reduce the existing
trade deficit and to attain the higher economic growth rate. It has made more strategy
of increasing the contribution of private, government and cooperative sectors, the
three pillar economic policy to sustainable, broad and inclusive economic development
of the country.
Five year was reduced to Three-Year Plan because of political instability. When there
is stability in politics after the new constitution implemented again there will be Five-
Year Plan. If the government is stable for full term, there will be need for Five-Year
Plan. It is required for a long-term perspective.
The National planning commission has played a vital role to make plans. For the
development of the country under the Chairpersonship of the Prime Minister, National
Planning Commission has made Post Disaster Need Assistance (PDNA) plan for the
conference of donor countries held in Asar 10, 2072 BS in Kathmandu. After the
massive earthquake of Baisakh 12, 2072 situation of the country was vulnerable.
Many people died and many became homeless. Many helping hands showed their
interest to help Nepal. Therefore, the government made plan to get assistance in a
systematic way from the donor countries. As a result PDNA plan was made by the
National Planning Commission and discussed in the conference.
Focus of Periodic Plans and Their Target in Nepal
Year in BS Plan Areas to Develop
2013 - 2018 Transportation and communication Agricultural Development,
First Village Development Industry, Mines, Tourism and Health
2018 - 2019 Five-Year Plan
2019 - 2022 Transportation and communication, Industry and Tourism,
Year Without Plan Electricity, Irrigation and Forestry
2022 - 2027 Agricultural Development, Transport and Electricity Industrial
Second Development, Social Services
2027 - 2032 Three-Year Plan Transportation and communication, Agriculture Industry and
Social services
Third
Five-Year Plan
Fourth
Five-Year Plan
Dynamic Social Studies - Book X 308
2032 - 2037 Fifth Agriculture, Irrigation and Forestry, Transport and
Five-Year Plan Communication, Industry, Mine and Electricity
2037 - 2042 Sixth Agriculture, Irrigation and Forestry
Five-Year Plan
2042 - 2047 Seventh Agriculture, Irrigation, Forestry, Industry, Mine and Electricity
Five-Year Plan
2049 - 2054 Eighth Agriculture diversification, Energy Development, Rural
Five-Year Plan Infrastructure Development, Employment Creation and Human
resource development
2054 - 2059 Ninth Agriculture and Forestry, Water resource, Human Resource and
Five-Year Plan Social Development, Industrialization Tourism and International
Trade
2059 - 2064 Tenth Agriculture, Natural resource exploitation, Rural Infrastructure
Five-Year Plan Population Management, Social welfare Service, Tourism and
Foreign Trade
2064 - 2067 Eleventh Reconstructing and Expanding infrastructure of development,
Three-Year Plan Relief/support facility to the victims of conflict, Rehabilitation
social integrity and coordination, Inclusion of deprived
community regions and Gender in mainstream of development,
Support to agriculture, Tourism and industrial areas.
2067 - 2070 Twelveth Sustainable economic growth, Tourism hydropower, Industries,
Three-Year Plan Infrastructure Skill human resources, Poverty alleviation
sustainable peace, foreign employment inclusiveness
2071 - 2073 Thirteenth Graduating Nepal from LDC (Least Developed country) to a
Three-Year Plan developing country status by 2022 AD. Poverty alleviation and
social development, Hydro and other energy development,
Basic education, health, Drinking water and sanitation,
Tourism, industry and trade, Good governance.
2073 - 2076 Fourteenth To lead the country towards productive employment and
Three-Year Plan justifiable distribution along with high economic growth
in rapid pace for poverty alleviation and socio-economic
transformation.
2076/77- Fifteenth Five Year Plan to change the nation towards Prosperous Economy, Social
2080/81 Plan (Proposed) Justice including reformation of Nepalese Lifestyle along with
transforming the country to the Socialism Oriented and Public
welfare.
Advantages of Planned Development Activities
1. Optimum utilization of the limited resources of the country
2. Proper direction, objectives and goal of economic development
3. Fair utilization of aid, grants loans from foreign countries
4. Objectives achievement on priority basis
309 Dynamic Social Studies - Book X
5. Maintenance of regional balance and social justice
6. Encourage people's participation
7. Scientific approach to identify problems and determine solutions
Points to Remember while Making Plans
1. To identify the most urgent needs, prioritizing areas for development
2. The roles and responsibilities of government, NGOs, INGOs and local people
3. To make strategies for involving diverse caste, ethnic groups, regions, genders
and differently able people in the development work
4. To utilize locally available resources. So, over dependency on donors decreases
5. To improve agriculture from subsistence farming to commercial farming
6. To promote tourism strategies for development of infrastructure
Past plans brought many development or achievement in the field of infrastructure
education, health, trade diversification, industries, agriculture, etc. But we have not been
able to achieve the targeted goals till now due to the following reasons:
1. Planning based on central level and implemented on local level
2. Local people were ignored.
3. Lack of inclusiveness of people from various socio-economic and geographical
backgrounds
4. Lack of sustainable development
5. Increasing corruption and political instability
Fourteenth (14th) Plan (2073/74-2075/76)
Back ground
The fourteenth plan is the first plan prepared by the federal structural administrative
system to implement the economic and social principles according to the constitution.
This plan has aimed to reconstruct the destruction caused by the massive earthquake
BS 2072 and to rebuild a prosperous nation. Considering the bitter lesson learnt
by the effects caused due to the obstruction from the southern border which almost
hampered the nation's economy. The plan will be working to build a self dependent
economic system. In addition, it has established the committment of the United
Nations General Assembly regarding the aims of sustainable development upto
2030 AD.
It has decided annual programmes and plans to uplift Nepal to the level of developing
countries. With the formulation of new constitution this plan needs to address the
increasing expectations of the people.
Long Term Vision
Sovereign, prosperous, socialized economy, independent and dignified Nepal.
Dynamic Social Studies - Book X 310
Goal
To transfer Nepal into developing category from the existing underdeveloped category.
To establish a country with social justice and welfare
Objectives
To lead the country towards productive employment and justifiable distribution along
with high economic growth in rapid pace for poverty alleviation and socio-economic
transformation
Quantitative Aim
The fourteenth plan has some major socio-economic aims which have been listed in
the table below:
Major Socio-economic and Physical Aims
Sl. No Index/Aim Condition of Aim of 14th
F/Y 72/73 plan in 75/76
1 Average annual economic growth (%) 0.77 7.20
2 Average annual growth in agricultural sector (in %)
3 Average annual growth in non-agricultural sector 1.33 4.70
4 Population under poverty line
5 Human Development Index (HDI) 0.63 8.4
6 Life Expectancy
7 Net enrollment rate in secondary level (%) 21.60 17.0
8 Literacy rate of 15-24 yrs age group
9 Electricity production (in MW) 0.54 17.0
10 Population with access to internet facility(%)
71 yrs 72 yrs
37.7 45
88.60 91
829 2279
46.4 65
Strategies
1. Agricultural transformation, tourism and increase in production in industries
and small and medium scale business
2. Construction of infrastructure for energy road and air transportation,
information and communication and rural urban and developmental tripartite
inclusion
3. High and sustainable human development, prioritizing social development
security and conservation
4. Social economic and political reforms efficient and accountable public finance.
Transparent and people-friendly social service protection and promotion of
human rights along with promotion of overall good governance
311 Dynamic Social Studies - Book X
5. Gender equality inclusiveness environment conservation, optimum utilization
of science and technology with the increase in strength of organization
Challenges
1. Urgency to alleviate poverty thought rapid economic growth and its justifiable
distribution
2. Recognizable growth in human development and overall economic prosperity
and sustainable socio-economic development
3. Decreasing the inequality in income distribution along with economic growth
and promoting equity and good government in the state
4. Increasing employment opportunities through expansion of economic system,
efficiently utilizing the profits and provide adequate employment opportunities
in the country
5. Transformation agricultural sector into a competitive and business-oriented
sector and including it in the country's economic activities
6. Remove energy crisis minimize the risk of disaster and make economic activities
favorable according to the climate change.
7. Establish infrastructure of development in urban and rural areas and interrelate
them in economic development.
8. Increase the capacity of management development in provincial and local level
and make the administration accountable and efficient.
9. Quickly conclude restructuring the state and assign locally elected
representatives to implement the plans efficiently.
10. Improvement in management of public finance uniting development activities,
making it efficient for the public and provide assurance for distribution of public
service.
Opportunities
1. After the promulgation of the constitution, the political problems have been
resolved and the country has stepped to a socio-economic development process.
2. Adequate possibilities of obtaining prosperity from the optimum utilization of
natural resources like fertilize land, water sources, forests, mines wildlife and
physical beauty
3. Development of skilled and educated human resources whose ratio has been
increasing in total population and is providing rapidity to social-economic
development.
4. Population gain which was proved to have been unavailable and impossible to
attain will be available in the next 3-4 decades
5. Utilization of infrastructures which have been either not utilized to utilize in a
small amount.
6. Possibility of obtaining optimum result of investment done in socio-economic
sectors
Dynamic Social Studies - Book X 312
7. Will involve half of the economically active population in co-operative and
community system.
8. Non-residential Nepalese foreign investors are constantly attracted to invest in
different sector.
9. Middle class people in neighbouring countries are interested to invest in tourism,
foreign investment, import and other services. It has opened an opportunity to
prosper the country.
10. Skills, capital and capacity build amongst the people who went for foreign
employment can be taken as a chance of advancement and progress.
Features of the Plan
a. It is periodic.
b. The plan has directive objective.
c. Public welfare objective is inherent in the plan.
d. All the economic activities are performed according to the plan.
e. There is an objective of the plan to distribute means and resources of the nation.
Activity
Prepare a plan to improve an infrastructure in your school and present it in
your classroom.
Answer the following questions: E ixerc se...
1. Define planning.
2. What are the advantages of economic planning?
3. What were the main objectives of three-year interim plan?
4. Each five-year plan of Nepal has failed to achieve goal. Why? Give reasons
5. How does planning help to make nation's self-reliance?
iCommun ty Work
Make an appropriate plan of easy transport if Jumla to Kathmandu. So, the people in
the capital do not depend upon the neighboring country.
313 Dynamic Social Studies - Book X
Lesson Importance of Tourism Industries
and Its Possibilities
8.2
FACTS Tourism sector is key contributor to Nepal's economic growth. Despite its political
instability and poor infrastructure, the country attracted nearly 600,000 foreign
to Understand tourists in 2012, a 10% increase on the previous year. The industry provides
employment to more than 7,50,000 people in a country where the unemployment
rate is more than 45%. In 2011, the Tourism Sector earned revenue of $370
million, nearly 3% of the country's gross domestic product. It is also second
biggest income earner after remittance from abroad by Nepalese workers. The
number of Chinese visiting Nepal has been a big jump with nearly 75,000 tourists
coming to the country, 60% tourist increased from previous years. Indian tourists
are also increasing.
Source: BBC Business
Gokyo lake with Himalayan ranges
The industries that are involved in producing goods and services which help tourists
are called tourism industries. The word tourism is derived from the French word
Tur and “ism” means the behavior of the tourists. The World Tourism Organization
defines tourists as people traveling to and staying in places outside their usual
environment for not more than one or two nights for leisure, business, medical
treatment, study and business or other purposes.
Dynamic Social Studies - Book X 314
Any person who travels from one place to another for pleasure, adventure, business
pilgrimage seminars, etc. is called a tourist. There are two types of tourists. They are:
1. Domestic or Internal Tourist
2. International tourist or External Tourist
People who travel from one place to another within a country for various purpose
is known as a domestic or internal tourist. People who travel from one country to
another country are called an international or external tourist. Many tourists come to
Nepal for various purposes like mountaineering, trekking, etc.
Tourism in the Current Plan
The 14th Plan (2073/74 -2075/76) has taken a long vision to develop Nepal as one of
the world's best destinations for tourism development. This plan has an objective
of increasing the number of tourists and improving national economy through the
promotion of tourism in the national and international forms. The goal of this plan
is to promote tourism in collaboration with the private sector, to develop additional
tourist destinations and to create employment opportunities through rural tourism.
Besides this the strategy to have massive publicity focusing the neighbouring and
other nations has been adopted to promote tourism. This plan has emphasized
sustainable development of tourism encouraging domestic tourists.
Reasons for Travelling
1. To visit religious and historical sites
2. Suitable climatic condition
3. To see the diverse culture and lifestyle of Nepalese people
4. Official visit
5. For trekking mountaineering purpose or business
6. To spend holidays
7. Employment opportunities
Importance of Tourism
Tourism is very important and beneficial to the countries like Nepal which is full of
natural beauty and full of diversity.
Importance of tourism is as follows:
1. Source of foreign currency
2. Development of physical and social infrastructure
3. Increase in trade and commerce.
4. Promotion of Nepal in the world through publicity
315 Dynamic Social Studies - Book X
5. Conservation of art and culture
6. Support for cottage industry
7. Contributes to national income.
Being a small country of unique topographical and climatic variations and cultural
diversities, Nepal has been a premier destination among the domestic visitors to observe
culture, evergreen scenery of Nepal, amazing flora and fauna, extreme hospitality and
many more. Nepal tourism industry has made arrangements for different adventurous
and interesting activity for tourists such as trekking mountaineering, rafting, bungee
jumping, jungle safari, para-gliding, rock climbing, cannoying, etc.
The New Tourism policy BS 2065 expected Nepal as a beautiful, entertaining and
secure tourists destination as well as to increase the activities and business of
different sectors of tourism such as airways, hotels, tours and travels, etc. It can help
to control unemployment problem by creating employment opportunities along with
productivity, rate of increase in people's living standard and economic condition as
well as nation’s economy.
To promote tourism industry, Nepal celebrated Nepal Tourism Year 2011 AD.
The campaign was a contribution to achieve the set goals and objectives of the
tourism policy formulated in 2009 AD. Its main objective was to develop Nepal as
an attractive, entertaining and safe place in the world by preserving and promoting
country’s natural, cultural and historical heritages. So, more number of tourists can
get attracted and can help to enhance the economy of the country.
Possibility of Tourism Industry in Nepal
Nepal is a small country but it is rich and beautiful in terms of natural resources. Mt.
Everest, good weather and geographical diversity are its main features. People from
the different parts of the world come to Nepal to see its natural beauty in mountains,
waterfalls, lakes, rivers, gorges, which never fail to impress people’s heart. There is a
great possibility of tourism development if infrastructure for tourism is developed in
Nepal. Some of the possibilities are as follows:
1. Adventurous Tourism
Nepal is a very suitable place for
adventurous tourism. There are many
fast flowing rivers which are suitable
for rafting. Bungee jumping is another
attraction for tourists in Nepal.
Trekking, Cycling, Rock climbing,
para-gliding, mountaineering, etc. are
also the major areas of adventurous
tourism in Nepal.
Bungee jumping
Dynamic Social Studies - Book X 316
2. Famous Religious Place
Nepal is a famous pilgrimage for both Pashupatinath Temple
Hindu and Buddhists. Lumbini is a peerless
landmark of Buddhism. It is a birthplace of
Gautam Buddha a pious land for Buddhist
followers. Pashupatinath is considered as
the famous pilgrimage for Hindu devotees.
Other famous pilgrimage centres for the
Hindus are Manakamana, Muktinath,
Pathibhara, Halesi Mahadev, Guheshwori,
Dakshinkali, Budha Subba, etc.
3. The Great Himalayan Trail
The area from Mt. Kanchenjunga to
Saipal is called the Great Himalayan Trail.
Under this area Kanchenjunga conservation
Area, Makalu Barun National Park,
Sagarmatha National Park are included.
Mount Everest is the highest peak of the
world. People from different countries of
the world come to climb Mt. Everest or view
the scenery of Mt. Everest from mountain
flight Among the 14 mountain peaks in the
world having the height more than 8000
m eight mountain peaks are located in Mount Everest
Nepal. These mountain peaks are the main
attractions for the tourists having interest
in mountaineering. For example, Langtang, Gosainkunda, Gaurishankar, etc. come
under the Himalayan trail.
4. Diversity in Culture and Climate Nepalese diversity
Nepal is a multicultural, multilingual
and multi-ethnic country. Every ethnic
group has their own distinct culture
festivals and the way of living. The climate
influence the lifestyle of the people as the
country is divided into three geographical
regions. They are Terai, Hills and Mountain.
The Terai has hot temperature, hills have
moderate and mountain has cold climate.
Thus, all the physical regions of Nepal carry
great prospect of tourism industry.
317 Dynamic Social Studies - Book X
5. Rich in Ancient Art and Culture Janaki temple
There are several ancient monuments
and heritages in Nepal which attract the
tourists Durbar Squares in Basantapur
(Kathmandu), Bhaktapur and Patan
(Lalitpur), Swoyambhunath, Boudhanath,
Chagunarayan, Ashoka Pillar in Lumbini,
Krishna Mandir in Patan, Janaki Mandir in
Janakpur, etc. are some of the major attractions
of art and architecture which attract the
tourists.
6. Rich in Natural Beauty
Nepal is a naturally diversified country. Pokhara (Fewa Lake)
It has diverse land features, somewhere plains,
hills, basins, valleys, tars and somewhere
mountains. These diverse land features have
increased the scenic beauty of the country.
Tilicho Lake is the lake at the highest altitude,
the Arun valley is the deepest valley, the
Kaligandaki gorge is the deepest gorge, Mt.
Everest is the highest peak and many rivers,
lakes, plains and valleys make Nepal rich in
natural beauty. To see this natural beauty
many tourists from different parts of the world
come here and enjoy the nature.
National geography magazine has declared. Nepal as the cheapest and best destination
for adventurous tourism. Similarly, on January 5, 2012 “The Hindustan Time”, a
reputed national daily of India, wrote "Tourism is Nepal’s golden goose". The country
has been named as one of the best countries for adventurous destination and one of
the fifty places to see before you die. This shows the importance of tourism in Nepal.
Despite these great possibilities in tourism it could not be prospered. There are many
problems which hinder tourism to flourish. Some of the problems are as follows:
Lack of transportation and communication facilities
Lack of preservation of cultural and religious heritages
Lack of organized tourists centre
Lack of entertainment
Lack of tourist-related goods
Lack of facilities of accommodation and security to the tourist.
Lack of publicity
Lack of sanitation
Dynamic Social Studies - Book X 318
Measures to resolve problems in tourism industry are as follows:
There is only one international airport in Nepal. This is not enough. So, the
capacity of national and international airways should be increased.
Every tourism center should be facilitated with transportation and
communication.
Facilities like banks, market and security should be assured.
There must be convenient visa procedures for tourists.
All the cultural and religious heritage should be preserved.
Good advertisement should be done about Nepali arts, culture, natural beauty,
Mt Everest, historical and religious places, adventurous tourism, etc. to promote
the tourism industries, worldwide.
National investor and international investor should be encouraged to invest
money in tourism industries.
In this way, tourism industry can be promoted by resolving the problems and enhance
the foreign currency. This can help in the development of the country. The government
alone cannot work for its development but individual and other non-governmental
organizations need to give their best effort to improve this sector. Therefore, the
development of tourism industry requires unity and cooperation of all.
Activity
Make a list of tourists spot nearby the area you live in. Describe the importance
of the place and discuss in your class.
E ixerc se...
Answer the following questions:
1. What do you mean by tourism industry?
2. Explain the importance of tourism industry?
3. Explain the possibilities of tourism in Nepal.
4. What are the major problems that obstruct tourism industry?
5. Suggest the measures to solve the problems in tourism industries.
6. How does natural beauty aid possibility of tourism development in Nepal?
319 Dynamic Social Studies - Book X
7. Present the table given below in a pie chart.
a. Tourist arrival as per the country in percentage (%)
India China Srilanka USA UK France Japan Germany Australia Others
14 12 8 8 6 3 3 2 3 41
8. Write the mission and vision of the current plan for developing tourism.
9. What are the types of tourism? Explain the possibilities of religions tourism in
Nepal.
10. There might be some historically, culturally and religiously important places
in your locality. What contributions can they play to enrich the Nepal Tourism
Board? Explain.
iCommun ty Work
Visit any tourist place in your community and get some information from the tourist
on the following topics:
1. Name: .........................................................................................................................
2: Country: ......................................................................................................................
3. Purpose of visit: ...........................................................................................................
4. Whether the objectives are fulfilled or not.
......................................................................................................................................
5. What is the best and worst experiences you got while visiting various places in Nepal?
......................................................................................................................................
6. Suggestions: ................................................................................................................
Prepare a report on it and present in your class.
Dynamic Social Studies - Book X 320
Lesson Importance of Hydropower Projects
and Its Possibilities
8.3
FACTS Solar, wind, bio-gas, coal and hydro are the major producing hydroelectricity
due to its richness in water resources. The Koshi River alone can generate
to Understand 23,350 MW electricity in Nepal.
Tamakoshi hydropower project
Power means the energy. Among the various types of power, electric power is a
very important form of energy to energize a country for its economic growth and
maintaining life standard. The electrical power is produced from various sources
and methods. Hydropower is one of them. Hydropower uses the power of moving water
to produce energy. The power that can be generated in the form of electric power from
moving water is called hydropower. The high head required for running turbine is
either created by constructing dam across the river or diverting its flow to a location
lower than the head pond. Flowing water has three types of energy heads, namely,
potential head, pressure head and kinetic head. The running water with one or a
combination of more than one type of energy head causes spinning of a turbine that
runs the generator, which produces electricity. Hydropower development can play an
important role in the overall economic development of Nepal. The vast hydropower
potential do not bring only prosperity to the country but also can be a means of
321 Dynamic Social Studies - Book X
regional cooperation. Nepal has the potential of 83000 MW of electricity generation
from water resources but commercially 42,000 MW electricity can be generated. Due
to the lack of utilization of resources, lack of advanced technology, lack of skilled
manpower, political instability in the country establishment of hydropower projects
is still lagging.
The Koshi, the Gandaki, the Karnali, and their tributaries are important to generate
hydroelectricity. Prospects and production capacity of hydro electricity have been
mentioned below:
Rivers Potential Commercial Capacity
Koshi 23,350 MW 10,860 MW
Gandaki 20,650 MW 5,270 MW
Karnali and Mahakali 36,000 MW 27,360 MW
Others 40,000 MW 880 MW
Source: Central Bureau of Statistics
The first hydropower project in Nepal was established in Pharping in BS 1968,
during the Chandra Shumsher, then Rana Prime Minister, It had the capacity of
500 KW.
Similarly, the second hydropower project was Sundarijal Hydropower Project
providing 900 KW electricity. It was established in BS 1992.
At present there are many hydropower projects established to generate electricity.
Among them Kaligandaki ‘A’ Hydropower Project is the biggest one producing
144 MW of electricity.
Importance of Hydro electricity
Hydropower is one of the most important and efficient sources of energy known to
mankind. Hydro electricity holds much potential that can meet the energy needs of
Nepal. The importance of hydro electricity is as follows:
It can replace the expensive fossil fuels which the country is forced to import at
expensive price and hence helps us to save billions of dollars.
It is a renewable source of energy and thus never gets exhausted.
It has low per unit cost in comparison to other forms of energy.
It is long-lasting.
It is safe, reliable, sufficient and affordable electricity for domestic consumption
and industrial use.
It is used for earning revenue from export of hydro electricity through providing
the much needed capital to finance to achieve economic self-reliance
Dynamic Social Studies - Book X 322
Some of the major power projects are as follows:
Sl. No Project Name Capacity District
(MW)
1 Khimti I Dolakha/Ramechhap
2 Marsyangdi 60 Tanahun
3 Kulekhaki I 69 Makawanpur
4 Kulekhani II 60 Makawanpur
5 Kaligandaki A 32 Syangja
6 Upper Bhotekoshi 144 Sindhupalchowk
7 Madhya Marsyandgi 36 Lamjung
8 Trishuli 70 Nuwakot
21
Source: ippan.org.np>HPinNepal
There are many other hydropower projects established in the country but they are not
being utilized to supply energy. Rapidly growing population of Nepal has increased
the demand of electricity. The annual demand of electricity has been inclined by
9.3 percent. Although its
potentiality is very high with
83,000 MW among which Do You Know
42,000 MW is a commercially
viable capacity. In 2072/73
total of 829 MW electricity In Fiscal Year 2072/73 the total of 829 MW
electricity was produced which is approximately
is generated which is not
enough. It indicates the new 1% of the total production.
project of size 60-80 MW need
to add to meet the growing
demand of domestic market. People are compelled to live in dark most of the time
in Nepal due to load-shedding problem. So, the Government of Nepal has declared
"National electricity Crisis" in Nepal. The 14th plan has aimed to produced 2279 MW
electricity in 3 years. Although Nepal government has declared 'Load-shedding Free
Nation' and has given maximum efforts to supply electricity to every place in the
country but still it is not sufficient for commercial and other purposes.
Merits of Hydroelectricity
1. Environment-friendly source of energy
2. Non-polluting source of energy
3. Very cheap in rate
4. Renewable source of energy
323 Dynamic Social Studies - Book X
5. High employment opportunities to the people which helps to develop the
economy of the country
6. Many electricity appliances can be operated at a time.
Challenges of Hydroelectricity
1. It takes a long time to generate to install.
2. Very expensive to establish hydropower project
3. During the establishment of hydropower, there is a high risk of disaster such as
flood as well as submersion of a large area.
4. Need long transmission line to transmit the generated energy.
5. If it is not used properly, due to electricity shock life and property may come in
danger.
Nepal being a landlocked country depends on locally available energy resources which
is not enough to fulfill the needs of the Nepalese people. Therefore, the Government
of Nepal must think about the establishment of micro and Pico hydropower projects
with less investment to overcome from the crises of hydroelectricity. There are many
obstacles or factors that hydropower is not developed properly in Nepal. Some reasons
are:
Lack of internal resources to finance the huge investment needs of the power
sector
Lack of proper infrastructures, like access roads, transmission networks, etc.
Lack of local capability like trained manpower, raw materials and electro-
mechanical equipment
Conditions of difficult terrain
Inefficient government policy
If all these problems can be solved, then Nepal can make appreciable progress in
hydropower and develop economy. Nepal would experience development in all sectors
with the enormous development of hydropower.
Activity
Make a list of all the hydropower projects establish in Nepal with their
capacity and districts in which it is constructed.
Dynamic Social Studies -Book X 324
E ixerc se...
Answer the following questions:
1. What is energy?
2. What are the different sources to get energy?
3. Explain the importance of hydroelectricity in Nepal.
4. What are the possibilities to establish hydroelectricity projects in Nepal?
5. Explain the merits and demerits of electricity.
6. Mention the history of electricity generation in Nepal.
7. What is the present status of hydro electricity in Nepal? Explain.
8. "Hydro electricity is the best way to solve the problems of energy crisis in Nepal."
Justify the statement.
9. Why is water resource considered an important resource to Nepal? How can
Nepal be economically prosperous through water resource? Write in points.
10. What sorts of activities need to be carried out to develop hydro electricity? Write
with reasons for and against the question.
11. Why has Nepal not been able to utilize hydro electricity in its fullest form? Give
reason.
iCommun ty Work
Visit any hydro power project nearby your area and collect the different informations and
facts about it. Prepare a report based on the collected information.
325 Dynamic Social Studies -Book X
Lesson Foreign Employment
8.4 FACTS According to a report published by the World Bank, money sent home by
to Understand Nepalese working abroad contributes to 23 percent to national income.
People go to different countries to earn money or for jobs. It uplifts the life standard
of the people and has become an important source of earning foreign currency for
the country. The history of foreign employment in Nepal is not very long. After the
restoration of democracy the trend of going for foreign employment is increasing
rapidly. Due to the lack of employment opportunities in Nepal many Nepalese have
been forced to go out to work. This has some immediate advantages but it can be
harmful in the long run. This drives Nepalese labour force to a foreign land and
ultimately creates shortage of labour force required in our development work. This
trend is increasing day by day. The Nepalese labour and sweat are used in foreign
lands There are over 2 million Nepalese working in foreign land. Such as in India,
Malaysia, Australia, Japan, Korea, Israel, Singapore, Macao, etc. Most of the Nepali
workers have age between 20-44 years who are the most productive and energetic
youths. The flow of migration is staggering from every region, rich, poor and all castes.
It is said that about 41% of the total workers are working only in India while 38% are
in Gulf countries, 12% in Malaysia and 8.7% are in other countries. The rapid flow of
migration causing shortage of domestic labour in the country
Importance of Foreign Employment
Nepal is a poor country. The foreign employment has played an importance role in
our economy. The economic activities done in the country are very slow, due to the
political instability, lack of utilization of resources, lack of advanced technology, less
skilled manpower, etc. So in this situation foreign employment has helped the nation's
economy a lot of the total remittance, the Gulf countries contribute the most 48%,
19% comes from India, 10% from the Malaysia and 21% from the other developed
countries. (Source: Ministry of Labour)
Importances of foreign employment are listed below:
It has become a major source of income to the family as well as the nation
through remittance.
The unemployment burden of the country has descended.
It has helped to uplift the overall living standard of the Nepalese people.
It has helped to published Nepali culture to the foreign land.
It has helped to gain knowledge and skills from the foreign countries.
It has helped to develop international relationship, establishment of
embassies, etc.
Dynamic Social Studies - Book X 326
The number of job seekers are increasing day by day in Nepal. The regular bandh,
strikes, nepotism and favoritism, ever-changing policy of the government, political
crisis, etc. are the major obstacles in resolving unemployment problem. Therefore,
the attraction of foreign employment is increasing day by day in Nepal. There are
thousands of youths leaving the country everyday for foreign employment. New
destinations are explored and opened. The government has been carried out labour
contract with a number of countries. To make foreign employment effective, Nepal
Government has enacted the Foreign Employment Act-2064. This indicates the
growing prospect of foreign employment. According to the government report more
than 3 billion rupees earned annually from remittance.
Causes of Foreign Employment
Limited employment opportunity in the country
Poverty
Conflict and lack of political stability
Decreasing agricultural productivity
Foreign employment is taken as prestigious employment.
Influence of friends, relatives and well-wishers
Despite these prospects and benefits, there are many challenges that should be solved
and should make the destination safe, secure and free from exploitation.
Problems and Challenges of Foreign Employment
Nepal is not able to give good employment opportunities to the youths. Therefore,
attraction of foreign employment is getting increased in recent year. Nepalese
workers are lagging behind to utilize modern technology. So they are not skillful and
knowledgeable. Therefore, they have been exploited by the employers as well as man
power supplying companies.
a queue for foreign employment process Dynamic Social Studies - Book X
327
They are either paid less or forced to work at risky jobs under difficult circumstances.
Sometimes due to the lack of knowledge about the system, rules and regulations
of the country they are imprisoned or sent back to the own country Nepal.
They do not have dignity of labours. Nepalese workers are popular as cheap laborers
in international labour market.
They are compelled to work as a Durban, Kulli, Namle, Bahadur, Kancha. There
is not effective mechanism to check, supervise, regulating and ensuring the terms,
conditions and rights of the workers.
Many manpower companies have been established in the country but the employers
are not much serious regarding the problems of foreign employment and no dedicated
staff to monitor and work towards the safety, security and well being of the foreign
employee.
There are many examples of their problems. Sometimes workers are returned empty
handed being disabled. Condition of women worker is vulnerable. They are exploited
physically, mentally and some become mentally sick. It is not sure for them to return
home with a full bag of money. Sometime they themselves have to come in packed
coffins.
Lack of proper testimonies they cannot claim for insurance to the company and
manpower. Many of the Nepalese people who go for foreign employment need to spend
lots of money but there is no transparency in proceeding. Therefore, it has become
very essential to prepare before going for foreign employment. One may suffer in the
foreign land if one follows others blindly.
Solutions to the Problems
1. We should identify foreign markets and provide skill and training as per the
nature of the jobs.
2. Technical, practical training courses and knowledge of the law, culture and
languages of the countries should be given to the workers.
3. Life insurance and accidental death insurance should be guaranteed to the
workers.
4. Free medical service must be given to the employees.
5. Fair Labour Agreements should be done with the countries.
Preparation of Foreign Employment
1. A person must be mentally prepared.
2. Candidate should get proper information from Labour and Employment
Ministry.
3. The candidates should make a valid passport.
4. One should go to a reliable manpower company with certificate of educational
equivalence, certificate of skill oriented training documents, medical
certificate, etc.
Dynamic Social Studies - Book X 328
5. Must attain the age of 18 years in case of male and 24 years in case of female
6. One should contact Nepal embassy in case of any problem in foreign employment.
7. One should understand the nature of job cost, remuneration and other facilities
provide by the company.
Activity
“My country my pride, my sweat and my soul are dear to my life". Write an
article on this topic.
E ixerc se...
Answer the following questions:
1. What do you understand by foreign employment?
2. Foreign employment earns remittance. This increases country’s income, There
is also an opportunity to learn international skills and techniques. Prepare a
dialogue including the challenges and benefits of foreign employment.
3. Write in points about the importance of foreign employment.
4. What are the solutions to the problems of the foreign employment?
5. What is the age limitation for males and females for foreign employment?
6. Where should people seek help when they get problems in a foreign land?
7. Foreign employment has both positive and negative impacts in our society.
Make a list of such impacts in a table.
8. What is remittance? How does it support nation's economy? Explain.
9. Foreign employment is not a permanent solution to eliminate poverty and
enhance the nation's economy. Justify the statement.
10. Suppose your relative is abroad for employment. Write a letter suggesting him/
her to take necessary precautions that should be taken to make working period
safe and productive.
iCommun ty Work
Survey in your community of the number of people gone for foreign employment with
the help of manpower companies and consultancies. Prepare a report on it mentioning
the name of the countries, their earnings, how their earnings sent home being utilized
present in you class.
329 Dynamic Social Studies - Book X
Lesson Cooperative Society and Its
Economic Importance
8.5
FACTS The concept of human development is small deeper and riches than what can be
captured in any composite index or even by a detailed set of statically indication.
to Understand Yet it is useful to simple a complex reality and that is what the HDI (Human
Development Index) set out to do.
An organization where people voluntarily associate together on the basis of equality
for the economic benefits is known as cooperative society. It is established on the basis
of equal right and obligation and to conduct the same kind of business.
Cooperative society is very good for the poor people in rural areas in Nepal. People are
having agriculture as their main occupation. So they can get help from the cooperative
society. It provides loan to the needy people. It has got economic, social and educational
importance. People learn the habit of saving. These saved money can be invested
anywhere. They can generate income along with the profit. Members of cooperative
society have to attend different meetings which enhance their level of confidence, their
intelligence, knowledge, reasoning power, strategy and understanding capacity can be
grown. According to the Interim Plan, there are 9720 Primary Cooperative Societies
in Nepal. Approximately, 15 thousand people got an employment opportunity from
these societies.
The major functions of cooperative societies are as follows:
1. It arranges for marketing of the products of its member so as to get reasonable
price.
2. It grants loan for agricultural inputs like fertilizer, seeds, insecticide, pesticide,
cattle, etc.
3. It encourages its members in livestock farming so as to get extra income.
4. It helps and encourages for the establishment of cottage industries so as to get
good source of income.
History of Cooperative Society
Robert Owen (1771-1858) a Welsh social reformer is considered as the pioneer of
the cooperative movement. Similarly, the Rochdale Society of Equitable Pioneers
established in 1844 AD is considered as the first successful cooperative society in the
world.
A cooperative Society is an autonomous and voluntary association of people who join
together to promote their common interest. They work together for business with the
principle of equality and mutual help. It is a democratic organization where all the
Dynamic Social Studies - Book X 330
members contribute equally and receive essential goods and services. All the members
have equal status and shares. It is based on Each for All and All for Each and Self
help through Mutual Aid.
Cooperatives in Nepal had emerged in the form of Guthi, Dharma Bhakari, Manka
Khala, Kulayan, Dewali, Parma, Bheja, Dhikuri, etc. However, the formal organization
was started from 2010 BS with Cooperative Department. The first cooperative
in Nepal is Bakhan Loan Cooperative Chitwan established in BS 2013. Then the
government developed Cooperative Organization Act in BS 2016 to institutionalize
the cooperative sector. Later, in BS 2018 the Cooperative Rules were formed and the
Cooperative Bank was also established in BS 2020.
Principles of Cooperative
The cooperatives are bounded by 7 principles guidelines called Rochdale Principle.
They are:
1. Voluntary and open Membership
2. Democratic Member Control
3. Member's Economic Participation
3. Autonomy and Independence
4. Education, Training and Information
5. Cooperation among Cooperatives
6. Concern for Community
Types of cooperatives
1. Worker Cooperative
A cooperative that is owned and democratically governed by its worker owners.
2. Consumer Cooperative
A cooperative owned and democratically controlled organized that service their
members.
3. Volunteer Cooperative
A cooperative that is run by and for a network of volunteers for the benefit of
defined members.
4. Social Cooperative
A cooperative that provides social services such as the care of children, elderly
and disabled people.
331 Dynamic Social Studies - Book X
5. Business and Employment Cooperative
A cooperative that enables upcoming entrepreneurs to experiment with their
business idea.
6. Housing Cooperative
A cooperative which owns estate of one or more residential buildings
7. Utility Cooperative
A cooperative that is assigned with the delivery of a public utility such as
electricity, water, telecommunication, etc
8. Agricultural Cooperative
A cooperative where farmers pull their resources in certain areas of activities.
Facts and Figures of Cooperative in Nepal
There are 32,663 registered primary cooperatives.
5,100,000 people are involved in cooperative at present
Out of which 46% are females.
The share capital of all cooperatives is 63 billion.
people's involvement in cooperative
The 14th economic planning has emphasized on 'triangular economic policy' which
covers the public, private and cooperative as equal counter parts. Its aim is to increase
the member up to 60 lakh members, at least one member from each family. It has also
an ambitious plan to make 300 billion saving by the end of the plan.
Dynamic Social Studies - Book X 332
Activity
Discuss among your friends and find out at least 10 cooperatives working in
your community. Prepare a list on the board.
E ixerc se...
Answer the following questions:
1. Define a cooperative society.
2. What are the major functions of cooperative society?
3. Name the first successful cooperative society of the world.
4. What are the seven principles of cooperative? Name them
5. What are the types of cooperative society? Explain them briefly.
6. How can cooperatives be helpful? Write an editorial in a leading newspaper of
Nepal.
7. What are the major functions of a cooperatives society? Make a list of functions.
8. Write some facts and figures of cooperatives in Nepal.
9. Make a list of principle of cooperatives in points.
10. The principles of cooperatives is based on ''Each for all and all for each". Justify
the statement.
iCommun ty Work
Collect news articles related to cooperative and present in the class.
333 Dynamic Social Studies - Book X
Lesson Financial Education
8.6 FACTS There are four types of financial institutions. They are Commercial Bank (class
'A' type), Development Bank (class 'B' type) Financial Companies (class 'C' type),
to Understand Micro-Finance Development Bank (class 'D' type).
Finance means the wealth or property. It is related to the economic transaction.
Financial education is the knowledge to manage finance and understanding
its importance. Financial education provides information about saving some
amount from family income, productive utilization of remittance. Bank is
an institution that accepts deposits in different accounts and provides loans
of different types to the people. In other words, it is an institution established for the
loan, exchange or issue money, for the extension of credit and for facilitating the
transmission of funds. The word bank is derived from French “banque” and the word
was used in the 15th century for the first time.
In course of time many changes have taken place in the functions of bank from the
initial stage of its development to the present day. There are many types of banks at
present. Some banks do not accept deposits, such as Rastriya Banijya Bank, Industrial
bank, etc. Nepal Bank Limited, was the first bank of Nepal, established in BS 1990
during the Juddha Shumsher Rana. Thereafter, many banks were established in
Nepal. At present there are 30 banks are categorized into “A” class. Similarly, 74
Development Banks have been established under “B” class. Finance Companies are
48, which come under “C” class banking and Micro Credit Development Banks come
under class “D." Altogether there are 36 such banks established in Nepal.
Role of Financial System in Economy
The present economy is completely depending upon the financial system. The financial
system has facilitated the personal transactions such as deposit and remittances of
money, lending and borrowing of money through the bank. It has made easier to
develop agriculture, industry and trade. In developing countries like Nepal, it has
helped to accelerate the pace of economic development. The bank helps in mobilization
and allocation of scarce resources which is very essential for economic development.
The role of financial system like banking and its effects in the economy has been given
below:
1. Mobilization of Savings
Savings make people free of the future anxiety when they do not have regular
source of income. Since banks provide attractive interest on saving and fixed deposits,
people are encouraged to save more money. Sometime bank sells the shares to mobilize
its resources.
Dynamic Social Studies - Book X 334
2. Capital Formation
The capital formation is crucial for the economic development of a country.
The less developed countries like Nepal are suffering from low capital formation.
The bank collects unused money from the people and again give to an individual,
businessperson and government for productive investment. It helps to increase
employment opportunities, income and living standard of the people.
3. Promotion of Economy
Extension of banking services through various branches in rural areas increase
the banking habit of people. People keep their money in banks and withdraw at the
time of need.
4. Promotion of Employment
Increasing unemployment is a serious problem which may result in severe social
political and economic consequences. In Nepal, pressure of population on land is high.
A large number of labour force is unemployed. Bank helps to relieve the economy from
the pressure of unemployment. The bank provides loans to businessmen, entrepreneurs
and farmers in different forms. Likewise, the bank also makes direct investments in
different sectors. These all increase the economic activities and promote employment
opportunities.
5. Safety of Wealth
The banks collect people’s money and keep them safely. People have fear of theft,
robbery when kept at home. So they feel secure to keep their money and valuables
in banks. These practices reduce unnecessary expenditure and increases savings.
In this way, a bank is an institution which accepts deposits in different accounts,
provides loans on different headings and promotes economic development of an
individual society and government. It also gives employment opportunities and
secures the future of the people.
Bank Account
A bank account is a financial account maintained by a financial institution for
a customer. Account can be opened in the name of an individual or organization.
Voucher is issued after depositing money in bank account, cheque book, is issued to
withdraw the amount from bank and bank statements is provided to the depositor to
see the financial transactions. There are different types of bank accounts. They are
current account, saving account and fixed deposit.
1. Current Account
An account from which depositor can deposit and withdraw the amount in a
day as per their need is called current account. There is no interest rate in current
account. It is useful for businessmen, industrialists, etc.
335 Dynamic Social Studies - Book X
2. Saving Account
A saving account is a deposit account that pays interest. The customers can
deposit as much as they want but can withdraw the amount in certain time as
prescribed by the bank. It is useful for everyone.
3. Fixed Deposit
The amount deposited for a fixed period is called fixed or time deposit. The
amount deposited cannot be withdrawn before the fixed period. The interest rate is
higher than offered by banks. The fixed deposit in Nepal is of 3 months, 6 months, 1
year and 2 years and above. No cheque-book and passbook is issued in this account.
Only fixed deposited receipt is given as an evidence of deposit.
Requirements to open Bank Account
Citizenship certificate
Passport size photo
Application form
Minimum amount to open a bank account
Sample signature
Incase of minor nominees (parents/guardians citizenship photo and signature
in application form is required
Complete information about family members
Electronic banking is initiated through devices like ATM cards or code that let
customer to access their account mobile phone, internet banking ATM, etc. comes
under electronic banking.
Automated Teller Machine (ATM)
It is an electronic telecommunication device that enable the customers to perform
financial or cash transaction.
Customer is identified by inserting Do You Know
a plastic ATM card with a magnetic
stripe or a plastic smart card According to the ATM industry Association there
with chip that contains unique are 3 million ATMs installed worldwide
card number and some security at present.
information. Authentication is
provided by the customer entering
a Personal Identification Number
(PIN). ATMs are connected to the
inter bank networks.
Dynamic Social Studies - Book X 336
SMS Banking
SMS banking is a form of mobile banking some banks use this facility to send
notification to customer's mobile phones using SMS about financial transaction.
Credit card
It is a payment card issued to users as a system of payment. Bank grant a line of
credit to the cardholders. So, card holder barrow money in advance, in return, bank
taken interest as per the system. There is limitation of money issued from credit card,
card holder should pay interest to the bank.
Saving and Its Benefits
The little money earns from salary wages or other sources are kept separately for
future security, education health services is called saving. Mostly saving are kept in
a bank is called deposit. Deposit of money has great importance for financial support.
Mostly we deposit money for capital formation, property purchase, investment, day
to day expenses, etc.
Deposit in Formal Bank:
These banks get approval from Nepal Rastra Bank.
Deposit in semi-formal financial institution:
Cooperatives, Aama Samuha, consumer forum,
Deposit in Informal Sector
Landlords friends invest in jwelleris, etc.
Khutruke Bachat (cascade):
Deposit money in piggy bank
Benefits of Saving
Capital formation
Build capacity to invest
Development of entrepreneurship
Security of deposited money
Gain interest
The deposited money in bank financial institution helps in economic development of
the country. We also should develop the habit of saving.
337 Dynamic Social Studies - Book X
Activities
a. Discuss the process of opening saving account in any bank. What are the
things required? Mention its full detail.
b. There might be ATMs of different banks around your community. Visit nearby
bank and find out the process of obtaining ATM card. Share it with your
classmates.
E ixerc se...
Answer the following questions:
1. What is finance and financial education?
2. What is a bank? Write its importance.
3. Why is depositing a good habit? Write any two advantages.
4. What e-Banking (electronic banking)?
5. Mention the requirements to open a bank account.
6. What is ATM?
7. What is SMS banking?
8. Why do people use credit cards? Explain.
9. Define saving and its benefits.
10. What are the types of bank opened in Nepal? How are they similar and different
than each other? Explain.
iCommun ty Work
Visit any bank nearby your area and find out the detail procedure to acquire ATM card and
also find out the benefits of using ATM card. Prepare an analytical report and present it in
your classroom.
Dynamic Social Studies - Book X 338
Lesson Financial Tools
8.7 FACTS The Nepal Stock Exchange Limited abbreviated as NEPSE is the only stock
Exchange of Nepal. It is founded in 1993 AD under the ownership of Government
to Understand of Nepal. It is located in Singha Durbar Plaza, Kathmandu, Nepal. For detail
information log on to the website www.nepalstock.com.np
In a financial system, some monetary accessories are used for economic activities.
Some of them are discussed below:
1. Clean Note Nepal Rastra Bank
Paper Note is required for any kind of financial
transaction to trade. It is also known as paper currency.
Usually paper notes are common in the modern world.
The issuing and management of note is done by the
Central Bank of every country. In Nepal, Nepal Rastra
Bank issues new note. Clean Notes Policy has been
brought by Nepal Rastra Bank. We should not write,
stitch, tear or fold notes. These activities make the
note dirty and shorten its age. Culture, civilization
and nation's nature are mentioned in the notes. Thus,
it is our duty to protect and conserve notes.
2. Bank Loan
The financial source is essential for the operation of any kind of business
or trade. We must take loan or credit for animal husbandry, running any kind of
business, unexpected crisis, social activities, education etc. When we lack money for
our economic activities, bank loan serve as the best financial tools. Money taken as a
loan with the agreement of paying back with interest in a particular time is known
as loan or credit. These types of credit or loan are of different types. Such as current
capital loan, investment loan, purchase loan, consumption loan, etc.
If the loan taken from the bank or any financial organization cannot be returned with
interest on specific time penalty has to be paid. In such condition, mortgage can be
auctioned or legal action can be taken. A person might be included in the black list it
can affect on social reputation. Therefore, bank loan should be replayed in time with
interest.
Remittance
A remittance is a transfer of money by a foreign worker to an individual in his or her
home country. A money transfer can be done through banks, financial organizations or
339 Dynamic Social Studies - Book X
registered money transfer agencies. Remittances contribute to 23 percent of nation's
GDP. Sending of remittance through private traders or unresisting money transfer
agencies is called hundi. It is not considered legal. So, that money has to be sent
through official agencies. A large portion of remittances is spent on unproductive
goods and consumption. It has to control and to be spent on production sector.
Foreign Exchange
The trend of exchanging the currency of a country with another one is termed as
foreign exchange. It is a big source of financial management because it makes the
international exchange of goods and services possible. The external trade is possible if
we have globally accepted foreign currency. The production of quality goods and their
exports to a foreign land increases the stock of foreign currency. We can also earn
foreign currencies through remittance, aid or donation and the international tourism.
The rate of exchange of Nepalese currency with the foreign currency is called the rate
of foreign exchange. There is high demand for imported goods and services. So, more
foreign currency is required. This trend makes Nepali currency weaker.
Security Bond (Dhitopatra) Nepal Stock Exchange Limited
The financial tools issued by the government
or any company to collect necessary amount
is called security bond. A security bond is
issued dividing essential capital in various
portions for development and extension of
any business goods and services. There are
government debentures, bonds, shares under
it. Security bond helps in the development of
a nation with the mobilization of saving from
investing through this Generally, prescribed
amount per share is Rs.100. The shareholder
has the share in the profit and loss in the
company according to the number of share
he/she has.
There are two types of share:
i) Preferential Share
ii) Ordinary Share
i) Preferential Share
In preferential share, the buyer does not take risk in the profit or loss of the
share issuing company. A buyer simply gets the dividend fixed earlier, before other
share. Even the company collapses the preferential share investors should be paid by
Dynamic Social Studies - Book X 340
selling the assets. Hence, this type of stock does not have any market risk. Under it,
shareholders do not have any right to participate in a meeting and cast a vote.
ii) Ordinary Share
The share is issued to get dividend from the remaining profit after distributing
dividend to preferential share. This share is suitable to the investors who can take
more risk
We can get the share issued by a company by filling up the form with the following
information:
a. The attested copy of citizenship
b. The applicants address name of father and grandfather and contact number
c. DEMAT (Dematerialization) account number
d. Counterfoil for the return of amount and bank account number
e. Recent passport sized photo
f. Signature of the applicant
Activity
Some of your friend might have hobby of currency collection. Find them out
and required them to bring the coins of paper notes in the class. Compare the
currencies of different countries and discuss about their similarities and differences.
Answer the following questions: E ixerc se...
1. Why should we keep the notes clean? Write an advantage.
2. Define remittance. Also mention the different sources of remittance.
3. What is hundi? Why is it considered illegal? Explain.
4. Differentiate between security bond and loan.
5. Write down any four importance of share. What are its types? Explain them
briefly.
6. Write a short note on foreign exchange.
7. What is share market? How can we generate income from share market?
341 Dynamic Social Studies - Book X
iCommun ty Work
Visit your community and find out the name of financial organizations serving your community.
How are they serving to the people, are the customers satisfy with their service or not? Find
out the detailed information and prepare a report and present it in your class.
Project Work
Consult the daily newspaper or use the interest to find out the foreign exchange rates of
the countries mentioned below with that of NRP 100.
Country Exchange Rate
China Buying Selling
Japan
India
The USA
Canada
England
Malaysia
Dynamic Social Studies - Book X 342
Lesson Insurance
8.8 FACTS The history of insurance started from Marine (aquatic) in Italy. The first deal or
contract called Polizza was made in 1300 AD. Later, Marine Insurance developed
to Understand to life insurance. The first insurance was done in 1583 by William Gibbson. Later,
in 1744 AD, the first life insurance law was developed in England.
Rastriya Beema Sansthan, Ramshahpath
Insurance is an agreement in which a person makes regular payments to a company
and the company promises to pay money to the person who is injured or dies, or pay
money equal to the values of something (such as a house or car) if damage, lost or stolen.
Insurance is newly emerging business in Nepal. So the history of insurance business
is not so long. The first insurance company, in Nepal was “Nepal Mal Chalani Tatha
Beema Company Ltd." established on Asoj 8, 2004. This company was started with the
capital of 5 lakh Rupees. It was later converted into Nepal Insurance and Transport
Company Pvt. Ltd. in BS 2016 and again renamed in BS 2048 as Nepal Insurance
Company. Basically, the company was concentrated in non life insurance business. In
BS 2049 new Insurance Act was introduced. The number of insurance companies in
Nepal has been gradually increasing year by year. At present there are 25 insurance
companies in Nepal, 16 are non-life insurance and 9 life insurance companies have
been established.
Some of them are as follows: Do You Know
1. Nepal Insurance Co. Ltd National insurance company (Rastriya Beema
2. The Rastriya Beema Sansthan Sanstha) was established on Poush 1, 2025
3. National Life Insurance Co. Ltd. according to National Insurance Company
4. National Life Insurance Co. Ltd Act 2025.
5. Himalayan Insurance Co. Ltd.
6. United Insurance Co. Ltd.
343 Dynamic Social Studies - Book X
7. Premier Insurance Co. Ltd.
8. Everest Insurance Co. Ltd.
9. Alliance Insurance Co. Ltd.
10. Nepal life Insurance Co. Ltd.
11. Prime life Insurance Co. Ltd.
Types of Insurance
There are various types of insurance. Such as fire insurance, motor insurance, home
insurance, life insurance, etc. Life insurance policy is very popular in Nepal. Its
popularity is increasing day by day in Nepal. So broadly, insurance has been divided
into two types. They are:
a. Life Insurance b. Non-Life Insurance
Life Insurance
It is a contract whereby the insurance company agrees to pay specified sum of money
to the insured. It is either paid on the termination of certain time period or on the
death of the person whose life is insured.
Benefits of Life Insurance
1. Risk Cover
Life is uncertain. Life insurance ensures good life to the loved one in the family
member after the death of insured person.
2. Planning for Stage Needs
It gives support in children’s education, their marriage, building houses, etc.
3. Builds the habit of saving
It builds the habit of long-term saving.
4. Facility of loans
It gives an option of taking loan. This meets your unplanned needs.
5. Tax benefits
It provides attractive tax benefits. The insured person does not need to pay
extra tax to the government.
In this way insurance provides the dual benefits of saving and security.
Basic Terms of Insurance
1. Insured
The party (Public and institutions ) who was to protect him/himself against the
risk of financial loss is insured.
Dynamic Social Studies - Book X 344
2. Insurer
The party who takes the responsibility of protection to insure from the financial
point of view is an insurer.
3. Insured Amount
Insured amount is the total amount for which the risk and responsibility of
compensation insured.
4. Insurance Premium
It is the installment or sum of money paid to the insurer s the consideration of
the insurance contact,
5. Insurance Policy
Insurance policy is the written agree between insurer and insured
Non-Life Insurance
Non-life insurance is the security policy taken by the insured from the insurer for
the damage of property of any nature. The properties such as house, shops, factories,
vehicles, agriculture, etc. may suffer from a loss or damage by disasters like accidents,
fire earthquake, tsunami, flood etc. anytime. In such situation, non-life insurance
bears the risk of loss as premium is paid based on the contract signed.
In the country like Nepal, the importance of agriculture insurance in very high. The
Ministry of Agriculture has coordinated crops and refining insurance in BS 2069
according to the National Agriculture Act, 2061 According to which, the government
pays 75% and the farmers pay 25% of the premium. And in case of loss, the farmers
receive 90% of the insurances. Besides, one should not ignore to make insurance even
for animal husbandry.
Things to be considered while insuring
One should be clear about the objective of insurance.
The desired person has to be mentioned clearly on insurance paper.
One should not give any fake information.
It has to be considered whether the insurance fee of the fixed amount can be
paid or not.
Insurance proposal has to be studied attentively. If it is not as you have desired,
one has to consult the concerned insurer.
One should do insurance from license holder agent.
All the document of insurance must be kept safely.
345 Dynamic Social Studies - Book X
Activity
Make a list of the family member who have taken the insurance policy. Discuss
the privileges they got from insurance policy.
E ixerc se...
Answer the following questions:
1. What is insurance? When was it started? Give a brief introduction of history of
insurance.
2. What are the types of insurance? Mention them and describe briefly.
3. Write the differences between life and non-life insurance in four points.
4. What are the advantages of insurances. Mention any four of them.
5. Explain the terms:
a. Insured b. Insurer c. Insured Amount d. Insurance Policy
6. What are the matters to be considered while taking an insurance policy?
7. An insurance is always a good reason to do. Discuss the prospects and challenges
of insurance policy? Discuss in a paragraph.
iCommun ty Work
Find out a true story of a person in your community whose great loss or rick is managed by
an insurance company. Later present the story in your classroom.
Project Work
Visit any 5 families in your locality and collect the data of insurance policy on the
following topics:
a. Name of the company b. Total period
c. Total amount d. Types of insurance
And present it in your classroom.
Dynamic Social Studies - Book X 346
Lesson Revenue and Taxation
8.9 FACTS In Nepal, about 30% of revenue comes from direct tax, such as income tax
includes salary, investment, vehicle tax, etc. About 70% of revenue comes from
to Understand indirect tax like, VAT, excise, health service tax, education service tax, etc.
The word Revenue means all the income and receipts received by the government.
In narrow sense, revenue means only the income received from taxes. Similarly, tax
revenue is the income that a government receives from taxpayers.
Government revenue includes all amounts of money i.e. taxes or fees received
from sources. Governments usually have a department responsible for collecting
government revenue from the companies and individuals.
There are two types of revenue: 1. Tax revenue 2. Non-tax revenue
1. Tax Revenue
Tax revenue comprises compulsory, non-repayable receipt collected by the
government for public purposes.
Some of the sources of tax revenue can be explained as follows:
a. Customs
Customs include import clearance, tax, export clearance tax and excise
refund. It is the major sources of revenue of Government of Nepal. It accounts 44%
of the total revenue and 50% of the total tax revenue. It is also called commodity tax
based on foreign trade. Nepal government has established custom office in Kakarviata,
Biratnagar (Rani), Birgunj, Bhairawa, Nepalgunj, etc. to collect custom tax.
b. Tax on Consumption and Product of Goods and Services
It consists of excise tax, sales tax, value added tax, entertainment tax, air flight
tax, contract tax, road and bridge tax, etc. It contributed to the highest amount of total
tax revenue with 50.8 percent in 2009/10 AD. It is also called internal commodity tax
on goods and services.
c. Land Revenue and Registration
This includes the charges of house and land registration. It contributed to 3.5
percent the total tax revenue in 2009/10 AD.
d. Tax on Property, Profit and Income
This source includes income tax from public enterprises, private companies
individuals, urban house and land tax vehicle tax and tax on interest. It contributed
23.2 percent to total tax revenue in 2009/2010 AD.
347 Dynamic Social Studies - Book X
Customs and tax on consumption and product of goods and services fall on the category
of indirect taxes, whereas land revenue and tax on property, profit and income fall on
the category of direct taxes.
2. Non-Tax Revenue
Non-tax revenue includes non-payable receipts for public purposes, such as fines,
fees and dividend. Tax and Non-tax revenue make up the revenue of the government.
The non-tax revenue consists of the following sources.
a. Charges fees, fines and Forfeiture
The source includes firm and arms registration, administration penalty, vehicle
license and forfeiture.
b. Receipt from sale of commodities and services
This source includes income from electricity, drinking water, telephone,
education, postal service, transport, food and agriculture. These sources together
contribute to the highest amount in the total non-tax revenue.
c. Dividend
The government receives dividend from public enterprises of various types.
d. Royalty and Sale of Fix Asset
This source consists of royalty from mining and other sources.
e. Principle and Interest Payment
This source consists of the loan repayment made and interest paid by companies
and corporation.
The collection of revenue and taxation from various sources gives good support to the
nation’s economy.
Direct Tax
If only one person is responsible to pay the tax, such tax is known as direct tax. For
example, a person cannot transfer the duty of paying tax of his/her house and land to
other. It should be paid by himself/herself. Income tax, labour tax, etc. are direct tax.
This type of tax is based on equality and improvement.
Indirect Tax
The system in which the load and effect of tax is transferred to others is known
as indirect tax. For example, one should pay some amount with tax in hotel for
getting its service but the hotel owner will pay tax in state fund. In this way, the
Dynamic Social Studies - Book X 348
responsibility falls under hotel owner and the influence is under the customer. Excise
duty, inflation tax, duty custom charge, etc. are the examples of indirect tax. Indirect
tax is comfortable as well.
Some Popular Taxes in Nepal
The amount that has to pay for the goods produced within the country and import
from other countries is called Tax (Anta Sulka). It charges tax in alcohol, cigarette,
khudo noodles, etc. on quantity basis and TV, automobiles, plastics, etc. on the basis
of price rate of commodities. The Anta Shukla is divided into three groups; Alcohol
group, Tobacco group and self imported groups.
Value Added Tax (VAT)
It is known as Goods and Services Tax (GST). It is a type of general consumption
tax that is collected incrementally based on the value added to goods and services. It
applies in prices of goods and services which are sold to customers. Customers have
to pay VAT. Since BS 2054 VAT system is implemented in Nepal. It is administered
by Inland Revenue Department of Nepal. There are two rates of Vat: Normal Vat rate
is 13%, some goods and services are subject to Vat at 0%. In addition, some goods and
services are exempt from VAT.
Income Tax
Income tax is generally impose on income and profits. It is the traditional system of
tax. It was first started in Britain in 12th century. Before, income tax was imposed
in animals husbandry, agriculture, fisheries has changed into business and profit
oriented activities. Income tax is a key source of funds that the government uses this
fund for its activities and to serve the public.
Excise Duty
The tax fixed for the production inside the country and for the exported goods
and services is known as excise duty. Excise duty is another important source of
government revenue. In the beginning this tax is taken from the goods and services
produced in the country. Therefore, it is called as excise duty. It is raised on the basis
of the quantity of wine, cigarette, etc. The goods that charge excise are divided into
three categories; alcohol group, tobacco group and self exporting goods.
Custom
The custom is an indirect tax based on international trade. The export tax and import
tax at the borders are included in customs. The rate of custom duty differs as per laws
in different goods. There are major and minor custom offices in different borders.
The Tribhuwan International Airport, Kakarvitta, Biratnagar, Birgunj, Bhairahawa,
Nepalgunj and Tatopani have major custom offices and the minor custom office are in
many other places in the country.
349 Dynamic Social Studies - Book X
Activity
Find out major sources of revenue collection and discuss in your class about
its contribution to nations economy.
E ixerc se...
Answer the following questions:
1. Define revenue.
2. Mention the types of revenue. Explain them briefly.
3. What are the major items that come under tax revenue?
4. What are the sources of non-tax revenue?
5. What are the two broad classification of revenue?
6. What are the types of income tax? Also mention their importance.
7. Write full form of VAT. Why was it implemented in Nepal?
8. Why is excise considered as an important tax?
9. How are direct tax and indirect tax similar or different to each other? Explain.
iCommun ty Work
Visit a nearby custom office far as possible and prepare a report on different rates of custom
duty. Finally prepare a report and present it in your classroom.
Project Work
Visit your locality to collect the information from at least five families who are paying
taxes on various items. Fine out the items and amount they are paying. Prepare a report
and present it in your class.
Dynamic Social Studies - Book X 350
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