JBD Social Studies Book 10

started in Nepal after the establishment of cooperative department in 2010 B.S. The first

cooperative organization formally established in Nepal was Bakhanpur Reen Sahakari

Sanstha Ltd. It was established at Bakhanpur, Chitwan on Chaitra 20, 2013 B.S. The
first five year plan (2013 -2018 B.S.) fixed the target of establishing 4500 cooperatives
all over the country. In the same time, Cooperative Society Act, 2016 was enacted to
institutionalize cooperatives. Later, cooperative law enforced in 2018 B.S. and cooperative
bank established in 2020 B.S. to provide loan to cooperative societies. This bank was
converted into Agriculture Development Bank in 2024 B.S. A new Cooperative Act 2048
has been passed and implemented now in Nepal. Government of Nepal has issued
cooperative monitoring and regulation act for the monitoring of cooperative organizations
in 2068 B.S. The Ministry of Cooperative and Poverty Alleviation, National Cooperative
Board, Department of Cooperative, Cooperative Training Centre, Cooperative Training

and Division Office and Division Cooperative Office are working as government agencies

to promote cooperative organizations in Nepal.

Principles and values of cooperatives Values
Principles • Self assistance
• Voluntary and open membership • Self responsibility
• Equitable economic distribution • democracy
• Democratic member control • Equity
• Education and Training opportunity • Solidarity
• Cooperation among cooperatives
• Autonomy and independence
• Concern for community

Process of Establishing Cooperatives

Cooperative organization will be formed with view to increase self reliance, mutual
cooperation and economy of the members. It is legally recognized organization. A
minimum of 25 members are required to establish Cooperative Organization/Society
according to the Nepal Cooperative Society Act 2048. But the membership of co-operative
society is open to all those who have a common interest. At least 25 members should give
application along with their citizenship certificate and a detail draft of constitution in
respective district cooperative department. The constitution should be democratic. The
election of executive body, membership, auditing system, protection of members, share
distribution etc should be mentioned clearly in the constitution. After completing a certain
process, a cooperative organization will get certificate with legal recognition according
to Nepal Cooperative Society Act 2048. A cooperative has to maintain books of accounts
which are to be audited by government auditors. The economic returns will be distributed
equally among all the members.

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Importance of Cooperatives

Cooperative organization is a legal entity established according Nepal Cooperative Act,
2048. It provides the services to the middle class or weaker groups in the society. It is one
of the financial organizations. So it helps in economic acceleration of the country. The
following are the main points of importance cooperative organizations.

(a) Economic Support
Cooperatives collect small amount form its members. The scattered money of the
society is collected, which encourages the people in saving. The collected amount
is provided as a loan to its member in low interest rate. They can utilize this money
for small business activities and can make the profit from it which helps in their
economic development.

(b) Increased productivity
Cooperative teaches us to be economical. It encourages in saving. It plays an
important role to develop the feeling of productivity in rural society. People invest
the money in production field that increases productivity.

(c) Improvement in living standard of farmer
Co-operative provides loan to farmers to invest in agriculture production. It manages
the market to sell their production. Farming cooperative organizations provides
agriculture training and technical eduction to farmers. It gives the knowledge in
use of fertilizer, pesticides and insecticides. Similarly, farmers increase their invest
in poultry farming, animal husbandry, mushroom farming, beekeeping, fishery etc.
The profit is high in these sectors. Thus, the living standard of the farmers will be
improved .

(d) Help in establishing cottage and small industries
The development of the country is not possible without the development of
industrial sectors. The required capital for establishing small and cottage industries
is only possible from cooperative organizations. These organizations provide loan
to establish such industries.

(e) Elimination of middleman's profit
There is direct link of consumers and costumers through cooperatives. The consumers
control their own supplies and thus, middleman's profit is eliminated. So, people get
quality goods at low price.

(f) Decreases unemployment and poverty
Cooperative organization cannot be imagined without people's participation . It
raises the capital from its members and invest in different sectors. People involve
in income generating activities, which automatically reduces unemployment and
poverty of the country.

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(g) Develop the feeling of mutual cooperation
Cooperative organizations thrive on the principle of mutual help. It increases the
social integration and cooperation in the society. Cooperative organizations convert
the weakness of members into strength by adopting the principle of self-help through
mutual cooperation. These organizations work jointly in the concept of each for all
and all for each.

Problems and Solutions of Cooperative Organizations in Nepal

Cooperative societies are very helpful for the development of the country. These
organizations increase the employment opportunity and help to improve the living
standard of the people. It helps in modernization of agriculture. Cooperative organization
is legally recognized. These are managed on democratic ways. The members of 'Board of
Directors' are elected among from the members based on one member one vote principle.
But some problems have been occurred in cooperative sector in Nepal. These problems
are listed below in points:

• Electing the members of Board of Directors from the same family or relatives
• Granting loan only for relatives or their well known people
• Utilizing collected amount (saving) in their own wish
• Mobilizing the deposit in housing or in buying of land
• High interest rate and service charge
• Co-operative organizations do not function effectively as a principle of

cooperatives due to the lack of managerial talent
• Lack of auditing of their annual account
• Inadequacy of capital and various other limitation make cooperative

organizations dependent on the government for support
• Selfish altitude and ego clash among the members may sometimes bring the

problems in cooperative organizations
• Unnecessary interfere of government in the management of cooperative

organization

Solutions
• There should be effective implementation of Nepal Cooperative Act 2048.
• Loan should not be provided only to relatives and high level businessperson.
• Discourage the investment which is done out of their criteria/objectives.
• Motivate the members to raise more capital.
• Stop to distribute the share except than the members of cooperative.

JBD Social Studies Book 10 297

• Government should supervise and control effectively rather than interfere.
• There should be system of regular auditing the book of account and should be

given high priority in transparency.
• There should be democratic management and Board of Directors should be

accountable towards its members.

1 Short answer questions

a. What is meant by cooperative? Discuss its principle.
b. Describe the conditions required to establish cooperatives.
c. Mention the role of cooperatives in the context of Nepal in points.
d. Briefly describe the historical development of cooperatives in Nepal.
e. How does cooperatives help to promote local production ? Describe.

2 Long answer question

a. List the advantages of cooperatives and explain any four of them in details.

Extra Questions for More Practice
a. Write down the activities run by cooperatives established in your locality.
b. Write a letter to your friend describing the problems of cooperatives and their

solution in Nepal.
c. Prepare a model of news to the Rising Nepal mentioning the importance of

cooperative in poor family.
d. Write an editorial on the role of government to make the activities of

cooperatives more effective.
e. The concept of people towards the cooperative is not good even today. Explain

this statement with reasons.

298 JBD Social Studies Book 10

Lesson Financial Education

6

At the end of this lesson, students will be able to

• tell about the financial education and its importance.
• tell the financial system, bank account debit and credit card.
• encourage saving and to tell its importance.

Ram Prasad : Sir, please tell me about the financial education in detail.

Economist : Generally, finance means money, land or property. The activities related

to the economic transaction is called financial monetary transaction.

Most of the people live in rural areas in the context of Nepal. They have

no access to the organization which involved in economic transaction.

So, the effective and economical use of financial resources of each

person is required. Therefore, the education which provides the

knowledge of understanding the importance of money and its proper

management is called financial education.

Ram Prasad : Would you tell me the importance of financial education, please?

Economists : Yes, of course. Many people in Nepal are poor and illiterate. There is no

access of financial institution in rural areas. So, people are not conscious

about saving. They do not know the importance of money. Due to the lack

of financial institutions, people cannot deposit their saving. Therefore,

financial education

or knowledge is

needed to make the

people economical.

Nepal Rastra Bank

has started financial

education to make

people aware about

financial activities.

The importance of

financial education

can be clarified in the

following points. Fig: Nepal Rastra Bank

JBD Social Studies Book 10 299

• Financial education teaches the value of money.
• It provides economic and social security from the proper utilization

of money.
• Financial education helps in mobilizing the income and teaches to

manage the household income and expenditure.
• Encourages the family for saving.
• Mobilizes the remittance in productive field and helps in proper

utilization of remittance.
Ram Prasad : How is the financial system in Nepal , sir?
Economists : The institutions which involve in economic and monetary activities are

called financial institutions. Basically, they are established for accepting
deposit and grant loan to needy people. They promote industrial,
agricultural and commercial sectors of the country by providing capital
and technical support. Central Bank, Commercial Bank, Development
Bank. Finance company, Small finance development bank, cooperative
which are involved in limit banking transactions and NGO involved
in small financial activities are included in financial system in Nepal
at present. These institutions are divided into A,B,C and D categories.
Look at this chart which tells you about the financial system of Nepal.

Central Bank

A class B class
Commercial Bank Commercial Bank

31 number 7 number

C class D class
Financial Company Small Finance Company

59 number 35 number

These banking and financial institutions perform the following activities.
• They collect the saving as deposit and grant the loan.
• These institutions, mostly commercial banks help the industry,
company and organization to issue share, capital and purchase
the securities of newly established companies which help to raise
capital
• These institutions exchange the value of foreign currency by
taking the permission of Central Bank.
• Some of the commercial banks transfer money from one place to
another through various means such as cheque draft, Hundi, TT,
L.C. etc.

300 JBD Social Studies Book 10

• Financial institutions provide loan against security deposit of gold
and silver.

• These institutions provide long term loan to industries and
companies by which they can expand their business transaction
in large scale.

While depositing money or other banking transactions, we should open
bank account.

Ram Prasad : Sir, just you talk about the bank account. How can the bank account be
opened ? Please, tell me the procedure of opening bank account and its
types.

Economist : Bank account is an banking instrument with personal account number
which can be opened by general people or organization for financial
transaction. People get the facility of deposit and withdraw of money
after opening bank account. Costumers can save their extra saving/
money in bank account.

Any Nepali citizen can open bank account in any bank. While opening
the account, they have to fill up an application form provided from the
bank along with the photocopy of citizenship certificate, two passport
size photographs, minimum essential amount and sample signature.
But in the case of children, parent's citizenship, photos and signature
are required as guardian. Every detail of the family like name of
grandfather, father's name, full address, citizenship number, name of
nominee etc. should be filled up in the application form. After submitting
the application form with necessary documents, account holder gets
cheque book with personal account number.

There are three types of bank account. They are:
Current account: This is an account in which a customer is allowed

to have frequent deposit and withdraw his/ her money as per his/her
requirement. Generally, the book does not provide any interest to the
depositors in this account. This account is suitable for an office, business
firms or institutions.
Saving account: An account in which customer withdraws his/her
money as per the certain rule of the bank is known as saving account.
Depositor can deposit money any time during office hour but bank gives
certain limit to withdraw money to the depositor. The bank provides
some interest to the depositor. This account is suitable to general public
who have surplus fund.
Fixed account : An account in which a customer can deposit amount
for fixed period of time is known as fixed deposit account. Money can
be deposited for 3 months, 6 months, 1 year, 2 years, 5 years or more

JBD Social Studies Book 10 301

in this account. Depositors cannot withdraw money before expiry time.
The bank provides higher rate of interest in this account. Depositor can
get the loan by depositing the certificate of fixed deposit account. This
account is suitable to those who do not need money for specific period
of time.
Ram Prasad : The development of information technology in the present days has
developed new techniques in banking field and financial institutions.
Would you tell me some of such techniques?
Economist : Of course, many facilities have been introduced in banking sector as new
techniques. The techniques have made easy transaction. Moble sms,
internet banking service, ATM, debit card, credit card etc. are sources
of such techniques. The service provided with the help of electronic
machine is known as electronic banking service. The customers get
the information of their deposited money or withdraw money and also
they can withdraw money from their account from these techniques.
Customer can send money from one place to another with the help of
internet banking facility for example, A businessman of Taplejung can
send the money to the businessman of Kathmandu by depositing money
at the local bank of Taplejung easily. The electronic banking service has
made banking transaction faster and easier. Lets discuss some of the
modern techniques used in banking sector here.

Automated Teller Machine (ATM) Fig : ATM

It is one of the electronic cards. It is provided by the bank with four-digit
personal pin number. Customers can withdraw or get the information
of deposited amount of their accounts. ATM card can be used anywhere
inside the country where ATM service is available. The use of ATM is
easier. First, we need to insert the card in Automated Teller Machine
and need to enter the four-digit pin code provided by the bank. ATM
reads the pin number and provides option of withdrawing cash or
deposit information. It is also called debit card.

Credit card Fig : Credit Card

Sometimes there is insufficient amount of truthful customer in their
bank account. In this situation bank provides facility of extra money to
buy goods or services through an electronic card. It is called credit card.
It is a kind of loan to the customers which they need to pay after some
time when they have money. It can be used like an ATM card but certain
limitation is fixed on the expenditure of amount. A certain amount is
deducted from the account of the customer who use this service.

302 JBD Social Studies Book 10

SMS Banking Service

This is mobile phone service. The bank gives the information of our deposited or withdraw
money through, SMS in our mobile set. Bank has provided pin code, by using the pin
code we can collect the information of account at any time. Payment of electricity bill,
telephone bill, water bill and transforming the amount from one account to another can
also done through SMS banking service.

Ram Prasad : Saving is very important part of financial education. How is saving

possible? What is its importance ? Could you explain in detail please?

Economist : Sure, it's my pleasure to tell something about saving. Listen carefully.

In fact, saving is a process in which a portion of income is set aside for

the future use. Saving is necessary to fulfill the economic and social

behaviours in the future. We save money for capital formation, for

buying property, for investment, for daily expenditure and to pay the

loan as economic behavior. Moreover, saving is done for social behavior

such as birth, bratabandha, marriage, death, ritual activities, education,

health etc. We can save money in different sources. They are:

(i) Saving in formal financial institutions: We can save the

money by opening accounts in bank or financial institutions

recognized by central bank.

(ii) Saving in semi formal financial institution: Cooperatives,

mother group (Aama Samuha), Forest group, consumer group etc

are semi formal financial institutions. We can save money in these

semi financial institutions. We also can save money in these semi

financial institution.

(iii) Saving in informal agencies: Saving can be done by investing

in housing, land, ornaments or by giving to friends, businessmen

etc. These are informal sources of saving.

(iv) Piggy bank (Khutruke) saving: Small amount can be collected

in small box of iron, woo or in Piggy

bank of clay.

The money saved in formal financial

institutions is more secure and we can get

interest too. Saving is very important part

of our life. No matter how much money is

earned, but it is the matter of concern that Fig : Khutruke

how much money is saved.

There are many advantages of saving.

• It helps to raise the capital.

• It creates the environment of investment.

JBD Social Studies Book 10 303

• It helps to develop entrepreneurship.
• It contributes in securing of earned income.
• Can be earned interest.
In this way, we can help to the country in its development through the
economic transaction made from the financial institutions. Therefore,
we should develop the habit of saving by reducing more expense.
Ram Prasad : Thank you, sir. I got a lot of information about financial system of
Nepal. I will share this knowledge to others and encourage them to
save. Thank you, once again.
Economists : You are, welcome !

1 Short answer questions

a. What is meant by financial education? Describe its importance.
b. Define bank. Describe the types of accounts.
c. What is saving? Where do can we save our money?
d. Prepare a dialogue between two friends explaining the advantages of saving.
e. Mention the pro and cons of ATM in table.

2 Long questions

What do you mean by bank account? Describe the types of bank account and
mention its advantages.

Extra Questions for More Practice
a. How do you encourage the people to open the account in financial

institution ?
b. Write a letter to your sister describing the new techniques used in banking

sector.
c. How can the Khutruke saving program be extended upto rural areas? Describe.
d. Write down the process of opening bank account.
e. Suppose one of your neighbours asked to open bank account. Which bank

account would you suggest him/her? Why? Describe with reasons.
f. 'Small saving of the present is the great prosperity of future.' Prove this

statement with your logic.
g. Write a model of economic report giving the information of role played by the

financial institutions in Nepal.

304 JBD Social Studies Book 10

Lesson Financial Instruments

7

At the end of this lesson, students will be able to

• tell different financial tools such as remittance, Hundi, share, note etc.

The device or tool which is used for smooth running of financial activities under financial
system of a country is called financial instrument/tools. These devices such as notes, coins,
bank loan, securities, foreign exchange etc. are used to obtain goods, services, cash and
for financial payment and saving. Some of such devices are discussed below.

Clean Note/Currency

Currency is the medium of exchange. It is used for doing any kind of economic transaction.
Central bank of any country issues and manages the currency. Nepal Rastra Bank is the
central bank of Nepal. Thus, Nepal Rastra Bank issues currency in Nepal. There are two
types of currency used in Nepal. They are paper note and metal coins. Nepal Rastra Bank
issues notes or coins by taking permission from the government of Nepal. While issuing
notes or coins, the bank has to keep at least 50% of the value as deposit of gold, silver,
foreign currency or government securities.

Paper notes or coins represent a nation. National nature, culture, civilization or heritage
are printed in notes or coins. These are our identity. So it is our duty to protect and to
keep note clean. We should not write any thing on note. We should not stitch or fold note
hapazardly. Note should not be form and make dirty. Nepal Rastra Bank has brought the
policy of 'clean note'. We should help to the bank by loving our note. If we love money,
money loves us.

Bank Loan

Loan is the money taken from individual, financial institutions or banks which need to
pay back with some interest within stipulated time. Loan is needed to run business or
industry, when the money is insufficient to run these activities. It is also taken to fulfill
our economic and social needs. People used to take loan from the rich people of the
neighbourhood or village in the past. This tradition is still in practice in rural areas of
Nepal. But there are different financial institutions, banks and cooperatives which provide
loan in urban areas. We can take the loan for different purposes. According to purpose,
there are different types of loan such as current capital loan, individual loan, home loan,
hire-purchase loan, autoloan, consumer loan, investment loan, etc.

The following things should be considered while taking loan.
• We should not take the loan more than our capacity.
• We should take the loan only for investment.

JBD Social Studies Book 10 305

• Generally, loan should be taken from the bank.
• The principle and interest of loan should be paid in time.
• We should take the loan from such institution which takes less service charge

and low interest rate.

Loan should be paid in time otherwise we should pay the penalty. If we are unable to pay
loan in time, the security given to the bank called collateral may be seized and sold. Our
name is black listed which damages our social prestige. We may get the legal punishment.
Therefore, we should use loan for right work.

Remittance

A payment of money/cash sent to a person in another place is called remittance. Nepal is
hugely dependent upon remittance. About 32 percent of our GDP comes from remittance.
However, only a limited portion of remittance comes into Nepal through formal channels
such as Bank, financial institutions, Money transfer agencies. Estimates from recent years
show that as much as 40 percent of all remittance comes through informal channels like
hundi.

Hundi is an informal money transfer system that uses businessmen, agents or non-
registered agencies to transfer cash from one person to another. The two brokers in
two different countries facilitate the money transfer through a mutual agreement. One
receives cash from the remitter and the other gives the cash to the beneficiary allotted
by the remitter. It is an illegal work. Our government as well as UN has made this work
illegal. It is illegal because the people who choose to use hundi are prone to significant
risk. There is no legal protection for the victims of hundi if the operators default on their
promises. In hundi, there is high chance of smuggling of currency, commodities or invoice
manipulation. Similarly, government cannot collect revenue because hundi is operated as
an informal business.

Foreign Exchange

The money of other countries is foreign exchange or foreign currency. Euro, US dollar,
Indian rupee etc are the foreign currency to Nepal. Foreign currency is needed to import
the goods. So a country should have more deposit of foreign currency. It can be earned
from different sources. They are:

• Nepalese workers in foreign employment can send foreign currency as
remittance

• Tourism
• Trade
• Help from foreign organizations or people or government.

The demand of foreign currency is increasing in Nepal due to the more import of goods
and services from other countries.

306 JBD Social Studies Book 10

Securities
A financial tool issued by the government or any company for collecting the necessary
amount to extend their business is called securities. According to the securities Act,
2064, the securities is defined as any shares, stocks, bonds, debentures, debenture stocks
or collective investment scheme, certificate issued by bonds or bonds or treasury bonds,
saving bonds or bonds issued by the Government of Nepal. It is a negotiable financial
instrument that represents some type of financial value.

Securities are mainly divided into debts and equities.
A debt security represents money that is borrowed and must be repaid, with interest
and maturity or renewal date. It includes government and corporate bonds, certificate of
deposit, preferred stock and collateralized securities.

Equity represents ownership interest held by shareholders in a corporation. This includes
the capital stock of a company, partnership or functions.

Generally, securities represent an investment and a means by which companies, government
and other commercial enterprises can raise new capital. Companies can generate capital
through investors who purchase securities upon initial issuance depending on an
institution's market demand or pricing structure.

1 Short answer questions

a. Why should we keep note (currency) clean? Write in points.
b. What is meant by bank loan? What things should be considered while taking

loan?
c. Remittance is one of the economic sources of Nepal. What are the advantages

of it? Make a list of them.
d. Hundi is illegal in Nepal. Why is it made illegal? Give as many reasons as

possible. Describe the types of securities briefly.

2 Long questions

What do you mean by financial tool? List the different tools used in financial sector
and describe any three of them.

Extra Questions for More Practice

a. Note (paper currency) should be clean. But in Nepal people don't have
the idea of keeping note clean. Prepare a design to keep note clean for the
local level awareness programme.

b. Differentiate between remittance and Hundi in four points.
c. The share market of Nepal is not static. It has the up and down indicators. The

people are not attracted in share market in Nepal. Why and How? Describe.

JBD Social Studies Book 10 307

Lesson Insurance

8

At the end of this lesson, students will be able to
• tell the meaning and types of insurance.
• tell the importance or advantage of insurance

Introduction

We, human beings are at risk everyday. Our life is uncertain. The agriculture that we
have done may not yield more production because of famine, flood or landslide, less
rain fall and more or uncertain rainfall. The animals that we have kept may die due to
diseases or other causes. Therefore, the concept of insurance arrived against the risk.
Insurance is a compensation of loss. It is defined as a contract between two parties where
one party assures to give final compensation of mentioned loss to the next party in
consideration of premium. An amount paid from the insured to insurer as coverage of risk
is called premium. It can be paid yearly or half yearly to the insurance company. Insurance
provides security to the person and his poverty. Two parties are involved in insurance.
They are called insurer and insured. The person or party who pays certain amount of
premium to get compensation is called insured and the company which promises to make
compensation for loss is known as insurer.
Insurance reduces the risk and saves people from possible loss in business. Insurance is a
process of transformation and management of risk. It is totally related to risk. The contract
between insurer and insured in called insurance policy. Insurance policy includes name of
insured, address, description of risk, premium, premium payment date, insurance time,
maturity date, surrender value, etc.
The history of insurance development in Nepal is not long. The first insurance company
was Goods Transport and Finance Company Limited in Nepal. It was established on Asoj
8, 2004 B.S. National Insurance Company was established on Poush 1, 2025 BS according
to National Insurance Company Act 2025 from the government level. Later, Insurance
Act 2049 was issued to monitor and control insurance company. According to this act,
insurance company (Beema Samiti) has been established. This insurance committee has
played important role in promotion, development and extention of insurance business.
It is an insurance regulatory authority of Nepal. It has conducted both life insurance and
non-life insurance. Beema Samiti has occupied 25% of non-life insurance and 50% of
life insurance in Nepal. It has provided the service from different branch offices and field
offices throughout the country. Beside Beema Samiti, there are 25 insurance companies
existed in Nepal. Among them, 16 companies provide the service of non-life insurance
and companies provide life insurance service.

308 JBD Social Studies Book 10

Type of Insurance
Insurance provides protection of properties and financial losses to the insured against
possible uncertain events. Insurance company distributes the risk over a large number of
people through various services. On the basis of these services, insurance can be divided
into two broad groups and other such group based on service. The following table shows
the types of insurance.

Types of insurance Non-life insurance
Life Insurance • Fire insurance
• Motor insurance
• Whole life insurance • Fidelity guarantee insurance
• Endowment life insurance • Aviation insurance
• Anticipated endowment • Employee's liability insurance
• Life insurance • Marine insurance
• Children education and

marriage life insurance
• Term life insurance

Life Insurance

Our life is uncertain. We don't know when our last date is. We may die at any day or
anytime. So, we should provide financial security to the family against uncertain life.
Life insurance is done for the protection as well as investment of the insured. Therefore,
life insurance is defined as a contract between two parties where insurer promises to
pay certain amount to insured or his/her nominee after death of insured or expiry of the
period by accepting premium from insured. Life insurance can be classified as follows
(a) Whole life insurance
(b) Endowment life insurance
(c) Anticipated endowment life insurance
(d) Children education and marriage insurance
(e) Term insurance
The insurance which is done for long period covering whole life of insured is called whole
life insurance. The insured does not get direct benefit from it because it is given to family
member after the death of insured. The insurance which is done for fixed period of time
such as 5 years, 10 years, 15 years of 20 years is known as endowment life insurance.
The insured has to pay premium amount until the expiration date of insurance policy.
If insured dies within the specific period, his/her nominee will get policy amount but
incase of alive until the policy period the insured will get whole amount with bonus
as mentioned in insurance policy. Anticipated endowment life insurance is the contract
between insured and insurer in which a part of the amount is paid in installment basis to
the insured. For example, if the life insurance is made for 15 years, the insured will get
the first instalment of 25% after 10 years and remaining 50% of insured amount with
bonus at the end of policy period of 15 years. The terms life insurance is done for short
period of time and children education and marriage insurance is done as the financial
support on the children' marriage or higher education.

JBD Social Studies Book 10 309

Non-life Insurance

The insurance which is done for the goods, properties, animals or agricultural things is
called non-life insurance. It compensates the looses of goods or properties in consideration
of premium. Generally, non-life insurance is done for a year. It should be renewed each
year. The importance of crop insurance is more in an agricultural country like Nepal.
Crop and Breeding Insurance 2069 is issued in the coordination of Agriculture Ministry
according to National Agriculture Policy, 2061. Seventy five percent premium of insured
amount is barred from the government and only twenty-five percent from the farmer
according to the crop and breeding insurance 2069. Ninety percent amount of insured
crop is provided to the farmer as compensation of loss crop. In animal insurance, whole
amount of security is given to the farmer as compensation amount when insured animal
dies.

Advantage or importance of insurance
Insurance is an agreement between insurer and insured that protects the insured against
financial losses due to uncertain events. Future risks cannot be determined and eliminated
at present. But the financial values of the risk can be reduced through insurance. People
can grab different opportunities and economic benefits with the help of insurance. It
provides financial security due to which the individual person, businessmen, professional
people get relief from worries of losses and uncertainty. Insurance company makes aware
the people to protect from probable losses. It also encourages the insured for compulsory
saving because the insured have to pay premium to the insurer. The other points of
importance of insurance are listed follow:
(a) Insurance is the helpful device which reduces the risk to number of insured person.
(b) Insurance provides financial protection of insured or nominee or dependent in case

of pre-matured death of insured.
(c) Insurance company needs various persons to run its administration smoothly. So,

it provides employment opportunities to the personnel having different skills and
knowledge.
(d) Insurance provides compensation against losses of business and assures the
businessmen in their unexpected loss in consideration of premium.
(e) Insured can take the loan from the deposit of insurance policy. The insured can
take the loan even from other financial institutions against the security of insurance
policy.

Advantages of insurance • Provides financial protection
• Minimizes risk
• Encourages saving • Creates employment
• Promotes business • Supports for loan
• Maintains living standard
• Insurance helps to maintain living standard of insured and also to the family
by providing the sum of money to the insured at the time of maturity of policy.

• Insurance company collects a lot of money from various people as insurance
premium by insuring life and property which can be mobilized for the
development of the country.

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Points to be considered while doing insurance
Insurance is the saving of present and the happiness of future. It encourages the people
in compulsory saving. Insurance plays very important role in the life of insured. Thus,
following points should be kept in mind while doing insurance:

• The objective of insurance should be clear.
• The name of nominee should be written clearly in insurance policy.
• False description or information should not be given.
• The insured should be clear whether the premium can be paid regularly or not

for the whole period of insurance.
• The insurance proposal should be read thoroughly. If that proposal is not in

favour of us then we should contact with insurer.
• The insurance should be done only from the registered insurance agent.
• We should not forget to take the receipt after paying premium.
• The information of insurance should be given to family members.
• Insurance policy should be renewed in time by paying premium in its due date

regularly.
• Insurance policy, receipts and other documents regarding to insurance should

be kept secure.

1 Short answer questions

a. What is insurance? Write down the advantages of insurance.
b. Differentiate between life insurance and non-life insurance.
c. Why is insurance important in our life? Describe.
d. Show the types of insurance in diagram.
e. What things should we keep in our mind while doing insurance? List them.

Extra Questions for More Practice

a. How does insurance reduce the risk of insured? Describe.
b. Most of the Nepalese do not like to do insurance. How do you convince them

to be insured? Describe.
c. Enumurate the advantages of non-life insurance.
d. Suppose one of your relatives want to do insurance and asked the suggestion

with you, what suggestions would you give? Write the suggestions in points.

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Lesson Revenue and Taxation

9

At the end of this lesson, students will be able to
• say the meaning of revenue and its sources.
• tell the characteristics of direct and indirect taxation.
• explain the types of taxation and sources of local taxes that can be collected in local level

Introduction

Government provides different services to its citizen. People pay little amount as use of
these services. Citizens involve in various economic and social activities in the country.
People earn profit of money from these activities. People have to pay certain percentage
of their income, to the government. It is a source of income of the government. It is
known as public income or revenue. The government collects the revenue or non tax
revenue.

A. Tax Revenue

The word tax is derived from the Latin word taxo. It is a fee charged or levied by a
government on a product, income or activity. The government collects the tax by making
law. Tax is the compulsory payment of the people. Taxpayer don't expect any profit of
their tax. So, it is a compulsory payment of taxpayer or citizens without any expectation
of profit. Tax is the main income source of government. Taxpayers donot get direct benefit
from tax payment. It is a right of state/government to collect the tax and is the duty of
citizen to pay the tax to the state. Custom duty, land tax, service tax, registration tax,
property tax, income tax, etc are the sources of tax. It can be collected from two ways.
They are direct tax and indirect tax. A short description of these two ways of collecting
tax is given below:

(i) Direct tax
In a general sense, a direct tax is one imposed upon an individual person or property.

But according to Adam Smith, a direct tax is generally a tax paid directly to the
government by the person on whom it is imposed. A direct tax is one that cannot
be shifted by the taxpayer to someone else. The tax which is paid by a person to
the government while buying the land is an example of direct tax. It is a tax which
is imposed upon the owner by virtue of ownership, rather than commercial use.

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Income tax, real property tax, tax on remuneration etc are some examples of direct
tax. The rate of tax may increase or decrease as need in the direct tax. This tax is
progressive and based on equity. Direct tax helps to control inflation rate of the country.

There are some drawbacks of direct tax. The tax payer may hide the tax, the tax is
fixed without any reason and study. It cannot include all the people having different
income. It has low tax elasticity and lack of voluntary compliance in tax payer.

(ii) Indirect tax
An indirect tax is a tax collected by an intermediary such as retail store from the

consumers. In indirect tax, the weight of paying tax falls in one person and its
effects in another person for example, if you pay the bill with tax in hotel as use of
service, and the tax is collected in the national treasure through hotel owner. Thus,
the weight of tax falls on hotel owner and its impact on consumer. The taxpayer
who pays the tax does not bear the burden of tax, the burden is shifted to the
ultimate consumers. Indirect tax is elastic able and convenience. It is based on
equity because the less tax is imposed in the goods that are used by the poor and
more tax is imposed for the luxuries goods that are used by the rich people. An
indirect tax may increase the price of goods to raise the price of the products
for the consumers. For an instance, an excise duty on motor cars, ultimately, the
manufacturer transfers the burden of this duty to the buyer of the car in the form of
higher price. Thus, an indirect tax is one that can be shifted or passed on. Indirect
tax is so called as it is paid indirectly by the final consumer of goods and services.
It is broadly applied to everyone in the society whether rich or poor. The cost/
rate of tax does not vary according to income. Indirect tax includes, service tax,
Value Added Tax (VAT), Goods and Service Tax (GST), etc. An indirect tax is more
expensive because it needs more human resource for its collection. Indirect taxation
can be viewed as having the effect of regressive tax as it imposes a greater burden
on the poor than on the rich, as both rich and poor pay the same tax amount
for consumption of a certain quantity of a specific goods. This tax may have the
negative impact in the development of industry as well as the country.

B. Non-tax Revenue

Government collects the money from different sources and that is used for the welfare of
the people. Government does not collect the revenue only from tax but also collects from
non taxable sources. The revenue which is collected from non-taxable sources such as
royalty, interest, present, penalty etc. is known as non-tax revenue. Tax revenue is collected

JBD Social Studies Book 10 313

with target but non-tax revenue has no fixed target/goal of its collection. This revenue
is not collected from the revenue collection office. The non-tax revenue is collected from
different offices or departments of the government. District Administration office, police,
post office, Drinking water, corporation, Nepal Telecommunication corporation, Nepal
Electricity Authority, Drug management office, Trade Department, financial institutions
etc are the main agencies of collecting and managing of non-tax revenue.

Non-tax revenue is collected from the following sources in Nepal. They are:

(a) Fee, penalty, fine etc
• Vehicle registration fee
• Justice fee, fine and penalty
• License fee
• Gun or pestol registration fee

(b) Service and goods selling income: • Income from education field
• Postal service income • Income from transportation field
• Drinking water fee • Income of food and agriculture
• Electricity/telephone bill • Income of other government fields
• Income from forest

(c) Royalty • Electricity royalty
• Mine royalty

• Other royalty

(d) Profit • profit of industrial organization
• Profit of financial institution • profit of service oriented institution.

• Profit of trade organization

(e) Principal amount and interest
• Principal from companies and organizations
• Interest
• Other principal and interest
• The contribution of non-tax revenue is more than 20 percent in Nepal.

Common Taxes in Nepal

(a) Value Added Tax (VAT)
A value Added Tax (VAT) is a type of consumption tax that is placed on a product

whenever value is added at a stage of production and at final sale. The amount of
VAT that the user pays is the cost of the product, less any of the costs of materials
used in the product that have already been taxed. VAT is based on a taxpayer's
consumption of goods rather than his income. The concept of VAT was started by
Willhelm phone Simons in Germany in 1919 but it was first time implemented in

314 JBD Social Studies Book 10

France in 1954. In Nepal, VAT was started in 2054 BS. Value Added Tax is levied
at each stage in the chain of production and distribution from raw materials to the
final sale based on the value (price) added at each stage.

A trader who does the transaction of 20 lakh or more in a year has to register in
VAT. The transaction of 20 lakh per year is threshold in Nepal. Basic agriculture
productions such as food grains, vegetables, raw cash crops and herbs, the goods of
basic needs, domestic animals and their products, agriculture materials medicines
and health service, education service, books, newspaper and printed materials,
cultural and artistic goods, service of public vehicles, professional service, gold and
silver ornaments, building and land and their purchase or sale, bet, casino and
lottery etc are tax exempted goods in Nepal. The transaction of these items is not
included in threshold. 13% VAT is added in each production in Nepal that every
consumer pay with the purchase of goods. So, we should be conscious and develop
the habit of taking VAT bill after the purchase of each good and service.

The VAT was implemented in Nepal for the following reasons:
• To increase the revenue by extending the tax base
• To make tax system more elastic
• To make tax system transparent.
• To discourage the tax reduce or hiding compliance.
• To make able tax system
• To encourage export

(b) Inland tax
The tax which is levied in the goods produced inside the country and imported

items in known as inland tax. It is the main income source or revenue of the
government. It is so called inland because the tax is imposed only to the product or
goods which are bought or sold inside the country. Inland tax is levied to alcohol,
cigarette, molasses, noodles etc based on quantity and in plastic, vehicles, printing
materials, T.V. etc based on cost percentage. Generally, inland tax is imposed in such
productions which have the health, environment and social affect in Nepal. These
productions are categorized in three groups, i.e. alcohol group, tobacco group and
self outing group.

(c) Income tax
An income tax is a tax imposed on individual's income or salary and also imposed in

profit of taxpayer. It was one of the oldest tax systems in the world and attributed to
Egypt. One of the first recorded taxes on income was the Saladin Tithe introduced
by Henry II in 1188 in England. William Pitt introduced a progressive income tax in

JBD Social Studies Book 10 315

1799 A.D. Traditionally, income tax was imposed to buy weapons for winning the
war. But income tax is imposed to fulfill the social responsibility of the government
nowadays.
Income tax was incepted in Nepal with the implementation of Economic Act
2016 and trade, profit and remuneration tax act, 2017 BS. Later, income tax act
2019, income tax act 2031 and income tax act 2058 were made and implemented.
According to the Income Tax Act 2031, agriculture, industry, business, occupation,
house rent, remuneration were the sources of income. But the Income Tax Act 2058
has included broad areas in taxable income.

(a) Income from business
• Service charge
• Presents regarding to business
• Business property or liability
• Net profit from disposal

(b) Income from employment
• Wages, salary, money from extra work, commission, bonus, fee etc.
• House rent, payment of personal allowance, payment allowance for
entertainment and transportation
• Payment of retirement, amount collected in retirement fine, other
payments in regard of employment

(c) Income from investment
• Any profit, interest from investment, royalty, benefit from insurance.

d) Customs Duty
A tax levied on imports and exports by the customs authorities of a country to
raise state revenue is called customs duty. Customs duty is imposed to protect domestic
industries from more efficient or predatory competitors from abroad. Custom duty is
based generally on the value of goods or upon the weight, dimensions or some other
criteria of the items. It is the main source of government income or revenue of a country.
Therefore, customs administration offices have been established in border area of each
country. There are 29 main customs offices and 143 small customs offices in Nepal. Nepal
government has established main customs offices in Pashupatinagar, Mechi, Biratnagar,
Setubandh, Rajbiraj, Siraha, Jaleshwor, Janakpur, Sarlahi, Gaur, Birgunj, Tatopani,
Tribhuwan International Airport, Bhairahawa, Koilabas, Krishnanagar, Nepalgunj,
Rajapur, Kailali, Kanchanpur, Mahakali, Olangchungola, Kimathankam, Lamabagar,
Rasuwa, Larke, Mustang, Mugu and Yari pass. Small custom offices established in different
parts also collect custom duty in small amount.

316 JBD Social Studies Book 10

Tax Collection in Local Level
Nepal is divided into seven provincial states. Each state is divided into rural municipality,
municipality and wards. According to the principle of decentralization and present
constitution, the state power of Nepal can be exercised by the federal, provincial and the
local level. The economic objective of the state is to make the national economy self-
reliant, independent and developing it towards socialism oriented economy by mobilizing
and strengthening the local level. The present constitution of Nepal (2072), has vested
some economic power in the local level. According to this, local level can collect local tax
such as property tax, house rent tax, fee on registration of houses and land, vehicle tax
and also can collect the service fee, tourism fee, advertisement tax, business tax, land tax
(land revenue), fines and entertainment tax.
These taxes can be collected in certain rate as passed from the Village Assembly and
Municipal Assembly. Similarly, no tax can be levied and collected except in accordance
with law in local level. But the local level can impose tax in areas within its jurisdiction,
without causing any adverse impact on the national policy, transportation of goods,
services, capital and labor and on neighbouring province or local levels.

1 Short answer questions

a. What is meant by revenue? Show the differences between tax revenue and
non-tax revenue.

b. Mention the characteristics of tax revenue.
c. What is direct tax ? Write down its advantages and disadvantages in table.
d. Describe the strength and drawbacks of indirect tax in short.
e. What is custom duty? Explain its importance in the context of Nepal.

JBD Social Studies Book 10 317

Lesson Consumer Rights

10

At the end of this lesson, students will be able to
• define consumer and consumer's rights
• be aware about the rights of consumer
• say the advantages of consumer rights education

Who are Consumers?

Consumers are those people who buy goods and services for their individual use. It does
not include only the person who consumes the specific goods but it includes all the people
who produce, supply and sell the goods. The producers of a kind of goods or service
may be the consumer of another goods or services. Therefore, all people, organizations,
companies etc who use the goods or services are called consumers.

According to the Consumer International, 'Consumers include all us. Consumers are
the largest economic group, affecting and affected by almost every public and private
economic decision. Yet they are the only important groups whose views are often not
heard.'

Consumer Protection Act 2054, defines, 'A person or institution who uses goods and
services or purchases goods from the market is consumer.'

In conclusion, a consumer in a real sense is a person or an organization who consumes the
goods or services. So, we all are consumers.

What is Consumer Right?

The right of using qualitative goods or services which does not hamper the health of
consumer is known as consumer right.
According to UN guidelines of 1986, the following rights are guaranteed to the consumers
in the world.

(a) Physical safety
(b) Promotion and protection of consumers' economic interests.
(c) Standards for safety and quality of consumers' goods and services.
(d) Measures enabling consumer to obtain redress.
(e) Distribution facilities for essential consumer goods and services.
(f) Education and information program.
(g) Measures relating to specific areas for plans and policies.

318 JBD Social Studies Book 10

But generally accepted consumers' right are:
(i) Right to safety: Protection from hazardous goods.
(ii) Right to be informed: Availability of information required for weighing

alternatives and protection from false and misleading claims in advertising
and labeling practices.
(iii) Right to choose: Availability of competing goods and services that offer
alternatives in terms of price, quality and service.
(iv) Right to be heard: Assurance that government will take full cognizance of
the concerns of consumers, and will act with sympathy and dispathy through
statutes and simple and expeditions administrative procedures.

Legal Protection of Consumer's Right in Nepal

The first law regarding to consumers started from Unites States of America on March 15,
1963. Thus, 15 March is celebrated as 'Consumers' Day internationally. Later in 1986,
UN General Assembly passed a resolution in about consumer's right. Then after many
countries formulated the law for the protection of consumers' right.
Nepal government has enforced Consumer Protection Act, 2054 from the 1st Baisakh,
2055 BS. The Constitution of Nepal (2072) has also made the provision of consumers'
right in part 3, article no. 44. It explains that each consumers shall have the right to quality
food and services. Similarly, the following rights are provided to consumers according to
Consumer Protection Act, 2054 in Nepal.

(i) Right to fight against the selling and distribution of such goods which affect
the health of the consumers.

(ii) Right to get information about price, quality, purity, etc of the goods and
services in order to protect from business fraud.

(iii) Right to select goods and services in competitive price.
(iv) Right to public hearing from the right agency for the protection of consumer's

rights.
(v) Right to get and impart the education of the consumer's right.
(vi) Right to be compensated against sub standard object or service and exploitation

of consumers.
Nepal's Consumer Protection Act, 2054 clearly states that any activity which intends to
deceive consumers is strictly punishable by law. Provisions of the act protect consumers
from irregularities such as quality, quantity and price of consumer goods or services. The
act includes provisions on selling, supplying, importing, exporting and storing safe and
quality consumer goods or services and protecting the rights and interests of consumers
through the establishment of an agency for redress. Beside these, the act has also made
compulsion to the producers to maintain the following things in their products:

(i) Name, address and registration number of producers.
(ii) Description of ingredients, quantity and weight in consumer goods like

foodstuff and medicine.

JBD Social Studies Book 10 319

(iii) Quality standard of the goods and necessary precautions such as keep away
from children, use as suggested by physician, keep in dark and cool place etc.

(v) Price, batch number, manufacturing date (MFD), expiry date of consumer
goods.

(vi) A warranty or guaranty card with date in case of electronic goods, hardware,
mechanical goods or long lasting items.

(vii) Strict directions for inflammable and poisonous goods.
Apart from the Consumer Protection Act, 2054, various other laws are prepared and
implemented in the country for the protection of consumers' right. Some of such laws
are:

(a) Essential Goods Control Act, 2017
(b) Food Act, 2023
(c) Standard measurement Act, 2025
(d) Black Marketing, Social crime and Punishment Act, 2032
(e) Drug Act, 2035
(f) Nepal Standard Act, 2037
(g) Breast Milk Substitute Act, 2049

Education Regarding Consumers' Right

Low quality food causes negative effects on human health. Nowadays, adulterated foods
are being produced and sold in the market. Manufacturers or shopkeepers mix low quality
substances, colour, artificial smell, chemicals etc in fine and qualitative goods to be rich
over night. Consumers' should be aware of conscious while selecting the goods. People
get the information of quality goods through consumer's right education. Consumers
Protection Act has managed the consumer right education. Every citizen has the right
of getting information of quality goods and services. Consumers should be aware while
using the goods. They should not attracted in colorful and attractive goods only. They
have to develop the habit of reading manufacturing date, expiry date and other necessary
things of the consuming goods. If we use low quality food, inedible colour mixing foods
and date expired foods that adversely affect our health and we may suffer from many
kinds of diseases. Consumer rights education aware us in all these matters. Beside these,
we can get the following advantages from the consumer rights education.

• It provides the golden opportunity of selecting of proper goods and services.

• It aware the consumers about the problems that they have to face while buying
the goods and services.

• Consumer right education provides the full information of market so that they
can buy quality goods.

• It makes the consumers conscious in their right and responsibility.

320 JBD Social Studies Book 10

• Consumers know about the quality of goods and services through consumer
rights education.

• It provides every information of rules and regulations regarding to consumers
right issued from the government. As a result, consumers can be satisfied in
the amount they have paid.

Consumer right education makes the people conscious in consumer rights. We don't
know the illegal activities or malpractices of manufacturer or black marketer without
consumer right education. So, it is our fundamental as well as human rights.

Activities being done for the protection of consumer's right
Consumer right is related to consumers' health. When consumers know about the adverse
effects of low quality of goods, they try to get quality goods. To get quality goods, is the
right of consumers. The duty and responsibility of the government is to provide quality
goods to its citizen. Therefore, the government should be active and there should be
regular monitoring of market. It is also necessary to implement the available law and
have to punish the person who frauds the consumer. However, some of the activities have
been done in Nepal for the protection of consumer's right. They are:

• Consumer Protection Act as well as other laws have been formulated and
implemented in Nepal.

• Ministry of trade and transportation, Department of trade, Department of
quality control and other institutions have been established in the protection
of consumer rights.

• The government has given the right to hear the cases against quackery, black
marketing, adulteration, fake medicine and other low quality goods to all
District Administration Office and police station nearby them.

• Government has managed to provide competition the people who suffer from
the low quality of goods.

• Government has provided consumer right as fundamental right through
constitution of Nepal.

• Consumer right education has been included in school level curriculum to
make consumer conscious.

• Government has appointed superintended officer for the protection of
consumer rights in every district.

• Different NGOs, CBOs, and other private organizations are also working to
protect the right of consumers in Nepal.

JBD Social Studies Book 10 321

1 Short answer questions

a. Who are consumers? What is consumer's right? List the right of consumers as
mentioned in UN guidelines.

b. What are the rights provided to the consumers according to the consumer's
protection Act 2054 ?

c. Write a news for a weekly newspaper mentioning the activities done by an
institution working in the field of protecting consumer's right.

d. What is meant by consumer's right education? Mention its advantages.
e. What activities are being done in Nepal to protect the rights of consumer. List

them.
Extra Questions for More Practice
a. How does black marketing limit the right of consumers? Discuss in class and
write.
b. What legal remedies are there in Nepal if the consumer's rights are violated?
c. Write a poem or song for making conscious to consumers in their rights.
d. Explain the utility of consumer right education in school curriculum.
e. What things should be mentioned by the producers in their production.

322 JBD Social Studies Book 10

9UNIT

OUR INTERNATIONAL
RELATIONSHIP AND

COOPERATION

� UNO and Its Organs

� Specialized Agencies of the UNO
� Nepal's Role in UNO
� Activities of United Nations in Nepal
� Contemporary Events and their Impact
� Globalization and Localization

JBD Social Studies Book 10 323

Lesson The UNO and Its Organs

1

At the end of this lesson, students will be able to

• introduce the UNO and its objectives
• describe the UN organs and their functions

Historical background and Atlantic Charter

The League of Nations was established

in 1920 AD to end the World War but it

could not stop war again. Nearly, 20 years

later of its formation, the Second World

War broke out in 1939 A.D. This war took

the lives of millions of people and there

was heavy loss of property, a powerful

worldwide organization was felt necessary

in order to protect the lives of mankind

from the destruction caused by wars.

Meanwhile, the leaders of Allied Power

made London Conference emphasizing Fig: UNO Building

in the establishment of peace and cooperation on 12 June, 1941 A.D. This conference

emphasized in peace.

UNO has not spring up suddenly. The American President F.D. Roosevelt and the British
Prime Minister Winston Churchil met in a battleship and signed in a declaration for
establishing permanent peace and security by ending war on August 12, 1941 is called
Atlantic Charter. Both countries made a commitment to work together for keeping peace
and security by establishing an international organization.

The representatives of 26 countries at White House, America met and discussed about
the charter on 1st January, 1942. Similarly, on 25 April, 1945, the leaders of 50 countries
gathered together at San Francisco, America which proposed United Nations Organization
and prepared the charter of UNO. Finally, 51 countries including Poland signed on the
charter and UNO was formally established on 24 October, 1945, which ended the second
World War. The Moscow Declaration, Teharan Declaration, Dambarton Declaration and
Yalta Declaration had also played very important role in establishing the UNO.

324 JBD Social Studies Book 10

Objectives

The constitution of the UNO is called Charter. It has 19 chapters and 111 Articles. It has
accepted English, French, Chinese, Russian, Spanish and Arabian languages as its official
languages. The objectives mentioned in the UN charter are as follows:

• To maintain international peace and security.
• To develop friendly relations among nations.
• To achieve international cooperation in solving various problems.
• To promote and respect for human rights, dignity and freedom.

Criteria for getting the membership of UNO

UNO is the largest organization of the world. It was established by the concepts of Atlantic
Charter of 1941 A.D. Its headquarters is in New York, America. There are 193 members in
the UNO till date. The General Assembly provides the membership to the new country as
its member. The following criteria should be fulfilled by a country to get the membership
of the UNO.

• The country should have peaceful nature.
• The country should accept the UN Charter.
• Nine members including five permanent members of security council should

accept the membership.
• The membership of new country should be accepted by the two-third majority

of General Assembly.

UN Organs and Their Functions

The UN Charter has mentioned six organs in article no.7. A short description and their
functions are discussed below:

A. General Assembly

It is the biggest organ of the UN. It is called the parliament or legislative organ
of the UNO. It is composed by all the member nations of the UNO. A country
can send six representatives in the meeting of General Assembly but the country
has single voting right. An important issue or decision need to be passed from
two/third majority and other decisions are passed by simple majority of General
Assembly. A chairperson and 17 vice chairperson are appointed for each session.
The General Assembly meets once in year and starts on the third Tuesday of the
month of September each year.

Functions
• Discussing on the international peace and security
• Discussing on the report received from Security Council and other organs.
• Issuing new membership

JBD Social Studies Book 10 325

• Passing the annual budget
• Appointing General Secretary on the recommendation of Security Council.
• Electing the member countries of Economic and social council.
• Appointing the judges of International Court of Justice.

B. Security Council
The provision of security council is managed in article 23-50 of UN Charter. It is
the executive body of the UNO. Security Council has 15 members consisting of 5
permanent members and 10 temporary members. USA, UK, France, Russia and China
are 5 permanent members of UN Security Council. The 10 temporary members are
elected from General Assembly for two years from different geographical regions
such as, from Afro-Asian region-6, from Latin America-1, from East Europe -1 and
from other nations - 2. The permanent members have Veto Power.
Veto power is the special right of permanent member country, which rejects any
decision made by General Assembly. It is the negative vote against any decision
or draft resolution of General Assembly. Any permanent member of the UNO can
exercise this de-facto power, which mean 'I forbid'.

Functions:
• It maintains the international peace and security.
• It recommends the country for the new membership of the UNO.
• It mobilize the peace keeping force as required.
• It recommends to the General Assembly for the appointment of General
Secretary.
• It studies about the controversial issues which may disturb the international
peace.

C. Economic and Social Council
This organ is included in article no. 61 to 72 of the UN Charter. It is composed of 54
members elected from General Assembly for 3 year. They are elected from different
geographical areas such as from Asia -11, from Africa -14, from Latin America -10,
from East Europe -6, from West Europe - 2 and from other countries-11. There are
9 commissions under this organ.

Functions:
• It deals with the various types of economic, social, cultural, and health related
problems of the member countries.
• It works for creating stability and well being of member nations.
• It recommends for protection and promotion of human rights and fundamental
rights.
• It organizes international conference related to social, cultural, education and
other fields.
• It coordinates the work of all the specialized agencies of the UNO.

326 JBD Social Studies Book 10

D. International Court of Justice (ICJ)
It is the judicial organ of the UNO. Article no. 92-96 of the UN Charter deal about

the ICJ. It is composed with 15 judges elected for 9 years from General Assembly.

A chief judge is elected from among the judges. The headquarters of this organ is

located in Hague, Netherland. The official languages of this organ are English and

French.

Functions:
• It settles the international disputes.
• It suggests to the UN and its specialized agencies in legal matters,
• It decides the cases related to natural resources and boundaries of two
countries.

• It explains the meaning of international treaty and legal terms.

E. Secretariat

The provision of secretariat is made from

article no. 97-101 of the UN Charter. Secretariat

is the administrative office of the UNO. Its

headquarter is in New York, America. Secretary

General is the chief administrative officer of

the UNO. The present Secretary General of the

UNO is Antonio Guterres from Portugal. He/

she is elected from General Assembly on the Fig: Antonio Guterres, the UN
recommendation of security council for six years.
General Secretary
He/she may be reappointed for one another term.

Functions:

• It performs day to day administrative work of the UNO.
• It keeps the record of activities of the UNO and informs to its member nations.
• It manages the General Assembly and prepares agenda for the meeting.
• It plays the role of arbitrary in international controversial issue.
• It conducts different programs for maintaining the peace.
• It organizes the international conference on the issue of international

importance.
• It provides information of the UN activities to the international news agencies.

• It publishes and distributes the annual report of the UNO.

F. Trusteeship Council

Article no. 86 - 91 of UN Charter are concerned with Trusteeship Council. This organ
was established to look after the colonial countries that got independence after the
end of the Second World War. It is composed of the five permanent members of

JBD Social Studies Book 10 327

security council. The main function of this organ is to help to run the government
smoothly in colonial or other weak countries. But now, there are not such countries
in the world. So, this organ is dyfunctioning, now.

1 Very Short answer questions

a. How many organs are there in UNO?
b. What is General Assembly? mention its any one function.
c. Where is the headquarters of International Court. of Justice located?
d. Name the present General Secretary of UN.
e. Which UN organ is called statue and why?

1 Short answer questions

a. Describe the historical background of establishing UNO briefly.
b. What is Atlantic Charter ? Why was the UNO established? Mention its

objectives.
c. List the organs of UNO and explain any two of them.
d. What is Veto Power? Which countries can exercise the Veto Power?
e. How is Security Council formed ? Write down its functions.
f. Write a model of news to be published in Times news paper including the

functions of General Assembly.

Extra Questions for More Practice

a. Critically analyze the activities of UNO giving the reference of present situation
of the world.

b. What role can be played to protect the right of small and poor countries by
UNO?

c. The five permanent countries exercise the Veto Power. Is it appropriate to give
the absolute power only to few countries? What is your view? Clarify with
logical reasons.

d. If you were appointed as the UN Secretary General, what programmes would
you like to launch in Nepal?

e. Draft a model of an editorial on the title of the "Role of UNO has increased
more in the present context of the world."

f. Imagine, your friend is participating in the conference of UN General
Assembly as the representative of Nepal. Give him/her your suggestions about
contemporary issues on behalf of Nepal, to be raised in the conference.

328 JBD Social Studies Book 10

Lesson

2 Specialized Agencies of the UNO

At the end of this lesson, students will be able to
• tell the name of different specialized agencies.
• mention the main objectives of those agencies.
• explain the main functions of UN specialized agencies in Nepal.

UNO specialized agencies are the self motivated and autonomous wings of UNO
established in different sectors of social and economic lives of the people. These agencies
work to fulfill the UN objectives. They work in the field of agriculture, communication,
public health, human rights, education, culture, science and technology, employment,
labour's right etc. Their objective is to work for the wellbeing of the people in the world.
There are 18 such specialized agencies, which are described briefly along with their main
functions below:

1. International Labour Organization (ILO)

ILO was established after Paris Peace Conference on April 11,
1919. It became specialized agency of UNO in 1946 A.D. The
headquarters of this organization is in Geneva, Switzerland.
Nepal became the member of this organization in 1966 AD. It
helps to maintain uniformity in labour. It provides economic and
social security to the labours. It determines the minimum salary
or wages of labour. It formulates laws regarding to labour's welfare and works
against woman and child labour and exploitation. It had got Nobel prize in 1969
A.D.

2. Food and Agriculture Organization (FAO)

This organization was established on October 16, 1945 and
became the specialized agency of UNO in 1946 AD. Nepal joined
in this organization on 27 November, 1945. The headquarters
of this organization is in Rome, Italy. The main objective of this
organization is to increase the agriculture productivity. The
functions of this organization are:
• It helps in improvement of food production for increasing the living standard

of the people of the world.

JBD Social Studies Book 10 329

• Improving the distribution of agricultural products and emphasizes on food
security.

• Helps to raise the level of nutrition and it provides suggestion to raise the
governments of its member countries to formulate food plan and policy.

3. United Nations Educational, Scientific and Cultural Organization
(UNESCO):

This organization was established on 4 November, 1946 and
became the UN specialized agency in 1947 AD. Nepal got its
membership in 1966 AD. The headquarters of this organization is
located in Paris, France. The main objective of this organization is
to promote education and promote social and cultural heritage of
the world. The functions of this organizations are:
• It promotes education, spreads culture and protects heritage sites.
• It helps in educational, scientific and cultural development of member

countries.
• It promotes universal friendship and cooperation and encourages the people

to preserve social, religious and cultural heritage.

4. World Health Organization (WHO)

This organization was established on 7 April, 1948. Nepal became
the member of this organization in 1954 A.D. Its headquarters
is in Geneva, Switzerland. Its main objective is to improve the
health condition of the people in the world. It performs the
following activities.
• It provides technical help to improve the health condition in member countries.
• It conducts different health programmes for controlling and elimination of

epidemics.
• It encourages the research work regarding to medicine and treatment.

5. International Bank for Reconstruction and Development (IBRD):

This organization was established on 27 December, 1945.
Nepal joined in this organization in 1961 AD. The central
office of this organization is in Washington DC, USA. It
provides financial supports to the member nations for the
infrastructure development. It also provides financial loan to the country having
medium income and the countries which are able to take loan.

330 JBD Social Studies Book 10

6. International Monetary Fund (IMF)
IMF was established on 27 December, 1945. Nepal became the
member of this organization in 1961 AD. The headquarters of this
organization is located in Washington DC, America. The functions
of this organization are:
• It keeps economic stability by solving the monetary problem.
• It brings stability in foreign exchange.
• It helps to reduce negative balance of payment.
• It provides soft loan to the developing countries.

7. International Civil Aviation Organization (ICAO):
It was established on 4 April, 1947. Its headquarters is situated
in Montreal, Canada. It encourages to follow the safety measures
in international flight. It codifies the principles and techniques of
international air navigation. It helps to develop air navigation to
set international standards.

8. International Telecommunication Union (ITU):
This organization was established on 17 May, 1865. It became
the specialized agency of UNO in 1947 AD. Nepal joined in this
organization in 1957 AD. The main objective of this organization is
to bring uniformity in international telecommunication. It provides
technical and economic support to increase the capacity of telecommunication
worldwide. It helps to expand communication network in rural areas.

9. World Meteorological Organization (WMO):
It was established on 23 March, 1950. Nepal became member of this
organization in 1966 A.D. The headquarters of this organization is
in Geneva, Switzerland. It helps to establish meteorological stations
in its member countries. It also helps to exchange meteorological
information among the member countries. Forecasting of weather,
studying of weather condition, helping in standardization of meteorological
observations are other functions of this organization.

10. World Intellectual Property Organization (WIPO)
It was established on 26 April, 1970. Its headquarters is located
in Geneva, Switzerland. Its main objective is to protect and
promote creative activities and their copy right of the people.
The other functions are as follows:
• It protects industrial property like trade mark, design and
product right of an industrial owner .
• It protects the intellectual property such as literary act, music, songs, artistic
act, photography and audio visual aids etc.

JBD Social Studies Book 10 331

11. United Nations Industrial Development Organization (UNIDO)

UNIDO was established on 1 January, 1967 with the objective of
establishing industry in developing countries. Its main office is
situated in Vienna, Austria. This organization helps to establish
industry in developing countries and emphasizes on manufacturing
sector.

12. International Atomic Energy Agency (IAEA)

It was established in 1957 AD to promote safe, secure and peaceful use of nuclear
technologies. It was established with the slogan, 'Atoms for Peace.' Its headquarters
is located in Vienna, Austria. Its main functions are:
– To use atomic energy for peace, health and prosperity.
– To control the excessive use of atomic weapons and military force.
– It helps to minimize the storing of nuclear power.

13. United Nations Development Programme (UNDP):
This organization was established on 22 November, 1966. UNDP's
headquarters is situated in New York City of America. Its main
objective is to help in sustainable development. The functions of
this organizations are :
– It provides technical and financial help in different sectors of
development.
– It helps in economic and social development of developing
countries by centralizing its work in sustainable development
and poverty alleviation.
– It combats against HIV/AIDS and provides information technology for
development.
– It helps to promote quality of life of the people through employment and
development.
– It helps to minimize the effects of natural disaster and conflict by helping to
the victims.

14. United Nations Children's Emergency Fund (UNICEF):

It was established on 1 December, 1946 to protect the rights of
children. Its headquarters is in New York, America. The functions
of this organization are:
– It works for child health and nutrition.
– It promotes the member nations to protect the rights of

children.
– It provides emergency help to the children in the world.
– It works for education, sanitation and overall development of children.

332 JBD Social Studies Book 10

15. United Nations High Commission for Refugee (UNHCR):

UNCHR is a specialized agency of UNO established for the welfare of
refugees of the world. It was established in 1951 AD. Its headquarters
is located in Geneva, Switzerland. It has been working in 115 countries
in the world.

Functions:
– UNCHR provides the facilities of food, shelter and health care to refugees.
– It protects refugees from violence and exploitation.
– It makes diplomatic efforts to get back them to their home.
– It negotiates with the concerned country to solve the problems of refugees.

16. World Trade Organization (WTO)

It was established on 1 January, 1951 to make trade laws
transparent. There are 153 member countries of this organization.
Nepal took its membership in 2004 AD. Its headquarters is situated
in Geneva, Switzerland. The main function of this organization
is to increase business, investment, employment and income of member countries.

17. Universal Postal Union (UPU)

It was established on 8 October, 1974 and became
specialized agency in 1946 AD. Its headquarters
is located in Bern, Switzerland. It unites member
countries within a single postal territory. It
coordinates to regulate worldwide network of postal service and offers technical
support to all member countries.

18. International Fund for Agriculture Development (IFAD):

IFAD is an specialized agency of UNO established on 30
November, 1977. Its headquarters is located in Rome, Italy.
It helps to eradicate poverty in developing countries through
agriculture development. It encourages the developing
countries to modernize and increase agriculture.

Beside these organizations there are other many programs,
funds, entities and related organizations working all over the world under UNO.
Some these activities are: United Nations Population Fund (UNFPA), United Nations
Conference on Trade and Development (UNCTAD), UN Environment Programme
(UNEP) UN Relief and Works Agency for Palestine Refugees (UNRWA), UN Human
Settlements Programme (UN Habitat) UN programme on HIV/AIDS (UNAIDS), UN
Office for Disaster Risk Reduction (UNISDR), UN Office for Project Services (UNOPS),

JBD Social Studies Book 10 333

commission for the comprehensive Nuclear-Test Ban Treaty organiation (CTBTO),
Organization for the prohibition of chemical weapons (OPCW), International
Organization for migration (IOM) etc.

1 Very Short answer questions

a. When was ILO established?

b. Which UN specialized agency work to protect and promote the creative
activities and their copy right?

c. Identify the given logo and write its main function.

d. What does IMF do in Nepal? Write any one.

1 Short answer questions

a. What are UN specialized agencies ? Make a list of six such agencies.

b. Write down the functions of any four UN specialized agencies which are
working in Nepal.

c. Write down full forms and a function of each of the following organizations:

i. UPU ii. IMO iii. WIPO iv. ICAO

d. Prepare a model of news mentioning the contribution of UNICEF in the field
of children.

e. What should be done to make the activities of UN specialized agencies more
effective? Give any four suggestions.

Extra Questions for More Practice

a. Name any two of the specialized agencies of UNO that work in Nepal and
write their short description.

b. Which one of specialized agencies is more important in your view? Why?
c. There may have the programmes running in your community. Find them and

write a short report.
d. Complete the following table with any four agencies.

S.N. Name of established date Place of Main objective/function
Organization headquarters

334 JBD Social Studies Book 10

Lesson Nepal's Role in the UNO

3

At the end of this lesson, students will be able to
• state the contribution of Nepal in the United Nations Organization.
• tell the help of Nepal in the UN peace keeping operation.
• mention the functions of peace keeping force.

United Nations Organization (UNO) is the world
wide organization. It was established on 24 October,
1945 with 51 countries. There are 193 members
in the UNO at present. Since the formation of the
UNO, Nepal had tried to be its member to extent
its foreign relation. Nepal forwarded an application
for the membership of the UNO in 1948 AD. Russia
and Ukrain opposed its membership by questioning
in sovereignty of Nepal. Russia used Veto against
Nepal's membership. However, Nepal got the UN
membership after 10 years of its establishment
on 14 December, 1955 including other 15 countries. Nepal has established diplomatic
relationship with almost all of the member countries of the UNO. As being a member of
the UNO, Nepal actively participated in different activities of this organization and has
helps to maintain peace and cooperation in the world.

Representation in UN activities to solve international issue

Nepal has become the non-permanent member of security council two times in 1969-
70 and 1988-89 AD. Nepal played a vital role in solving the international problems and
issues during that time. Nepal was elected vice-chair country of the UNO in 1958 1968,
1970, 1974, 1975, 1983, 1984, 1988 and 2001 A.D. Nepal has adopted its foreign policy
based on UN Charter. Similarly, Nepal was appointed assistance secretary General of the
UN Security Council. Nepal is being the member of different specialized agencies of the
UNO and has contributed in the implementation of objectives of these agencies. Nepal
also played an important role by chairing in the investigation of plane crash of the Second
Secretary General Dag Hammarskjold.

Commitment against nuclear weapons and terrorism:

Nepal has signed in disarmament agreement and also signed in protocol to prevent Atomic
arms from the world. Nepal is a signatory country of the Geneva Convention concerning

JBD Social Studies Book 10 335

terrorism and also signed in the Declaration on Measures to Eliminate International
Terrorism. It shows Nepal's commitment against nuclear weapons and terrorism.

Committed towards human right protection

Nepal is committed to protect the human rights of all the citizens. For this, Nepal has signed
in the UN Declaration of Universal Human Rights. National Human Rights Commission
has been made independent and constitutional organ for the protection of human rights
in Nepal.

Stand for Justice

Nepal was against of attack of Soviet Union over Hungary in 1956. Our country worked as
coordinator country against apperetheid in South Africa. Nepal raised the voice against
the attack over Mishra in 1956 A.D. Nepal stood against the attack over Arab by Israel in
1967 A.D. Nepal has agreed in the Middle East issue of the UN resolutions, which deal
that Israel has the right to stand in Peace and Security and Palestinians have the right to
get their motherland. Nepal always stood against of imperialism and neocolonialism as
member of the UNO.

Support to UN programmes

Nepal participated in Earth Summit 1992, Brazil to protect the environment. Our country
had also participated in Quoto Environment Convention and World conference of climate
change. Nepal had supported to the UN by implementing the agenda's of Millennium Goal
2000. and actively participated in achieving all the goals of sustainable Development,
2016-2030 AD.

Participation in Peace Keeping

The main important role of Nepal is in the field of peace and security. Our country wants
to recognize herself as peace loving country. She does not attack other countries but also
maintains friendly relationship with them. Nepal is an active participant and dedicated
campaigner of all declarations, decisions and programmes for world peace process of the
UN by sending peace keeping force. Nepal started to send her army, police, armed police
force and other people in the UN peace keeping operation from 1978. Nepal has been
taken part by sending its troops in maintaining the peace in the world since then.

Peace Keeping Force

Peace keeping refers to the use of military force to prevent and to control conflict and
ensure the peace by disarming the rebels. This term also means the process towards
development after maintenance of hostile situation in control. Peace keeping is a part of
peace keeping and development. UN's main objective is to maintain peace and security in
the world. Therefore, the UN has been working towards this goal since its establishment.

336 JBD Social Studies Book 10

The UN peace keeping force came into existence when Israel invaded over Lebanon in
1978 AD. UN started to send peace keeping force in Lebanon under the mission of UNIFIL
(United Nations International Force in Lebanon). UN does not have its military force. It
requests the member states to send military force and other groups to support peace
keeping mission when arise conflict. The peace keepers include military and police
personnel together with civilian staff. UN Security Council decides whether or not to
deploy the conflicting parties to declare a cease fire and when a cease fire is arranged, the
UN peace keeping force is sent to monitor the cease fire and maintain peace. A head of
mission is appointed
from the Secretary
General. Member
countries then send as
many of their own
soldiers as they could
to make the peace
keeping force strong.
They wear their own
army or police
uniform with blue beret provided from the UNO. The soldiers of the peace keeping force
have weapons but in most situations they are used for defensive purpose. Beside the
soldiers, experts of various fields are involved in peace keeping mission such as electoral
experts, lawyers, mine removal experts, translators, development and emergency aid
workers, human rights monitors etc. The following are the main functions and duties of
peace keeping forces.

• To make sure that there is no fighting.
• To protect both fighting groups.
• To clear away mines which may explode and kill people.
• Supervising election
• To train a national army and to train police.
• To supply food and medicines to the victims.
Nepalese peace keepers are working in 11 different places in the world. The places are:
Lebanon, Western Sahara, Congo, Liberia, Cote d' Ivoire, Haiti, South Sudan, Darfur Iraq,
Sierra Leone, East Timor and United Nations Interim Security Force for Abyei.

JBD Social Studies Book 10 337

1 Very Short answer question

a. When did Nepal get the membership of UNO? Write full date.
b. What does middle east issue of UN resolution deal for?
c. What do you mean by peace keeping force?
d. Nepal sends Nepal army, police and army, police force in peace keeping

operation regularly. Do you like or dislike it? Write a reason.
e. Name any four countries where Nepalese peace keepers are working.

2 Short answer question

a. Describe the historical attempt of Nepal to get the membership of the UNO.
b. Discuss the contribution of Nepal in the UNO.
c. Are you satisfied on Nepal's role in the UNO? Give your opinion in points.
d. What is peace keeping force? Write any six duties have to be carried out by the

UN peace keeping forces.
e. Describe the role of Nepalese Army in the maintenance of peace in the world.

Extra Questions for More Practice
a. What role has Nepal been playing to develop international peace and

cooperation? Describe.
b. Do you like or dislike Nepal sending Nepalese Army and police in the peace

keeping operation? Write a letter to the Ministry of Defence of Nepal including
four reasons.
c. Since the establishment of the UN peace keeping force, Nepal has been
involved on it. What should be done to make the functions of peace keeping
force more effective? Write any four suggestions.
d. You might have listened to Radio, watched television and read newspaper and
observed the activities of the UN peace keeping forces. Prepare a report for a
newspaper regarding the activities of the UN peace keeping forces and their
contribution to establish peace in the world.

338 JBD Social Studies Book 10

Lesson Activities of the United Nations
in Nepal
4

At the end of this lesson, students will be able to
• describe the UN help in Nepal

The UNO is a volunteer organization. It Activities of UN in Nepal
provides services to all the countries of
the world. Different special agencies of • Promotion of agriculture
the UN have been working in the field of • Women education
agriculture, education, communication, • Literacy campaign
health, human rights and human • Prevention of diseases and drug abuse.
development. Nepal is also getting help • Family planning.
and cooperation in different sectors from • To combat HIV/AIDS
the UN and its specialized agencies. The • Prevention of culture, ecology and environment
role played by UNO in the development
of Nepal can be discussed as below. protection
• Refugees care, human rights democracy and

justice etc.

1. United Nations Educational Scientific and Cultural Organization
(UNESCO)

Nepal is assisted by UNESCO in the areas of education and culture. It provides
technical and financial supports in education sectors, with particular emphasis on
gender Equality, in education, literacy and non-formal education. It also supports the
Ministry of education by strengthening its Education Management and Information
Systems (EMIS). UNESO has included seven places from Kathmandu valley and
three places from outside the valley in the list of world heritage. It helps in the
protection and promotion of these heritage sites.

2. United Nations Children's Emergency Fund (UNICEF)

UNICEF is supporting to the health and nutrition to improve access to quality health
interventions and improved services for maternal, newborn and children's health
in Nepal. It deals with refuge, child mortality and maternal mortality and supports
piloting and expanding of newborn care package and national immunization
against measles and polio. It strengthens quality of maternity services at family
and community level. Similarly, it supports Nepal in the field of nutrition through
the distribution of vitamin A supplements and de-worming tablets to children, iron

JBD Social Studies Book 10 339

supplements to pregnant and breast feeding mothers and iodized salt promotion to
prevent iodine deficiency. It supports to reduce HIV infection among young people
and helps to increase access to sustainable and safe drinking water, sanitation
facilities and improved hygiene practices in school and communities.

3. World Food Programme (WFP)

FAO through world food programme (WFP) is supporting Nepal in Food Security
and Livelihood of rural poverty stricken people of remote areas in Nepal. It also
provides food to refugees residing in different parts of Nepal.

It has established three regional offices at Damak,
Nepalgunj and Dadeldhura and 32 districts are
benefited from this programme in Nepal. This
programme focuses the following area.
• Prevention of rapid starvation and providing
emergency food.
• Long term food security
• Effective food and nutrition strategy
• Participation in development.

4. International Labour Organization (ILO)

The ILO programmes are concerned with the poverty alleviation,
improvement of industrial relations and labour administration,
elimination of child and bonded labour, and improvement of
working conditions, occupational safety and health at work place
and promotion of social protection in Nepal.

5. United Nations Development Programme (UNDP)

UNDP is working in Nepal since 1963 to support the Nepalese in their
struggle against poverty. UNDP has worked in guiding, linkages that
address effective design and implementation of poverty alleviation
programmes in Nepal. Other work of UNDP in Nepal are inclusive
growth and sustainable livelihood, peace building and recovery energy,
environment and natural disaster management, HIV/AIDS control etc.

6. United Nations Human Settlement Programme (UN - HABITAT)

The United Nations Human Settlements Programme (UN- HABITAT)
is working here to promote the fields of pro-poor governance, water
demand management and has increased its attention towards
environmental sanitation and income generation for the poor.

This organization is working in 35 municipalities including

340 JBD Social Studies Book 10

Kathmandu metropolitan city and in 15 other small cities in Nepal. This organization
mainly focuses in the following fileds.
• Advocacy, monitoring and partnership
• Participatory urban planning management
• Sustainable infrastructure development and service
• Financial support for well-managed human settlement.

7. World Health Organization (WHO)

World Health Organization (WHO) is working in
the field of health by strengthening health system,
control and prevention of disease and disability, child
adolescent and reproductive health etc.

8. International Fund for Agriculture Development (IFAD)

This organization is working in Nepal since 1978 AD. This organization is working
in rural and hilly areas of Nepal. It conducts the programmes by targeting to the
poor, landless, indigenous Janajati and women. The main priority areas of this
organization are:
• Increasing income of rural people, poor women and
men by empowering them.
• Eliminating poverty and starvation
• Promotion in food security
• Helping in increasing living standard of people.

9. United Nations Programme for HIV/AIDS

This programme is running with the collaboration of UN residential
coordinators, government, NGOs and INGOs in Nepal. It has
implemented the vision of zero HIV infection, zero discrimination
and zero death due to HIV/AIDS for the prevention of HIV/AIDS in
Nepal.

10. UN Women

UN women office was established in Nepal in 2012 A.D. This organization provides
help in the following sectors in Nepal.
• Against women violence
• Economic empowerment
• National planning and budget
• Peace and security
• Leadership and participation

JBD Social Studies Book 10 341

Similarly, OHCHR is working here to protect and promote human rights by
strengthening the capacity of NHRC (National Human Rights Commission) and
increase the human rights expertise of the government of Nepal and state actors
including security forces.

IMF programmes in Nepal are to support the maintenance of stable macroeconomic
policies as well as structural reforms in the financial and public sectors as well as
governance. Poverty reduction is the main objective underlying the world Banks
(WB) activities in Nepal.

1 Very Short answer questions

a. How has UNO helped Nepal? Write any two of them.
b. What does WFP stand for?
c. What does IMF work in Nepal?
d. Which UN organization helps in strengthening the capacity of National

Human Rights commission?
e. Which UN agency is involved in the development work running in your

community?

2 Short answer questions
a. Make a list of any eight major UN programmes in Nepal.

b. Describe the activities of UNICEF in Nepal.

c. What are the activities of UNDP and UNESCO in Nepal?

d. Describe the significance of the support provided by UN agencies in Nepal.

e. Mention two activities of each of the following UN agencies.

i. FAO ii. ILO iii. WHO iv. OHCHR

Extra Questions for More Practice

a. Make a list of different international organizations working in Nepal and write
the functions of any four organizations.

b. Write a letter to the Nepal office of UN HABITAT including the ways of making
the activities of this organization in Nepal more effective.

c. Prepare a model of an editorial about the contribution of UN women office in
the promotion of women participation and empowerment in Nepal.

342 JBD Social Studies Book 10

Lesson Contemporary Events and their
Impact
5

At the end of this lesson, students will be able to
• tell the current major events of the world
• say the impact of such events in human life.

The world is the greatest network of different people. Different events have been taken
place in the world due to the human beings and their activities. Murder, kidnapping,
terrorism, epidemics, environmental pollution, climate change, global warming, etc are
some of the contemporary issues of the world. No people in the world are far from the
negative impact of these events. We are also affected from these problems, no matter
wherever these events have occurred. These events have given the threat to the whole
universe. Therefore, we should aware and be conscious about these present issues of the
world. Some of the major issues of the world and their impact is discussed below.

A. Sustainable Development
It is a growth that satisfies today's need without jeopardizing the needs of future
generations. The main goal of sustainable development is to conduct the development
work without disturbing natural and socio-cultural setting of a place. Sustainable
development has a primary objective of promoting the quality of life of the poor people.
It emphasizes on environmental protection where the competition is not between
development and environment . This is based on the concept that present must not ruin
the future. This concept was started from the decade of 1980's. The world summit on
sustainable development 2015, has clearly mentioned that democracy, good governance
and rule of law are the measuring pillars of sustainable development. If the sustainable
development is not adopted while carrying out the development endeavors, the following
effects will be there:

• Deteriorates the environment
• Creates natural disasters
• Ends the available means and resources
• Affects in economic progress of future generation.

B. Disarmament
Disarmament means the limited use or no use of weapons. It includes the balance
deduction of traditional weapons and no use of weapons of mass destruction like nuclear
bomb. Since the birth of human civilization either in the primitive stone age or in the
modern civilization some kind of arms either in the form of stone or in the form of
weapons of mass destruction have been used. However, the primitive ones were used

JBD Social Studies Book 10 343

to protect the user from ferocious attack of wild animals and also to hunt for food.
As the civilization gradually advanced towards sophistication, ,complex weapons and
technology aided human beings. But the human beings have not used the weapons always
for ideal purpose. Not all rules and power holders use them rationally. Certain gangs and
rebels also possess weapons or arms to threaten people, topple down the governments
and to eradicate the existence of some groups of tribes.
The United Nations has given highest priority to reducing and eventually eliminating
nuclear weapons, destroying chemical weapons and strengthening the prohibition against
biological weapons. The UN objective has always been that it would set up a world based
on peace, security and development. However, some of the countries or groups are holding
massive weapons, ballistic missile, biological weapons, landmines which have given the
threat to human peace. The use and transportation of unlicensed arms or weapons have
taken the life of millions of people.

C. Terrorism: a threat to world peace
Terrorism is an act of violence designed to install fear in victims and potential victims and
wider audience. It can take any form from state havoc to international threat to peace. It
is a threat to peace and a crime against humanity. It is a more complex and dreadful than
criminality. Historical injustice, reaction against autocracy or absolute governing system,
conflict between groups of states, clash of civilization or culture, poverty, political conflict
etc are some of the causes of terrorism. Attack on twin towers of America in 2001, Paris
event of France in 2015. Mumbay attack of India, Kashmir attack of India in 2016 etc are
some of the examples of terrorism around the world. Some of the extremist groups such
as Taliban, Boko Haram, ISI, Al Qaeda, IS group, black hand society etc are the active
terrorist organizations in the world. Terrorist organizations are involved in hijacking of
aircraft, kidnapping, taking of hostages, mass assassination to fulfill their vested interest.
All these activities are given the threat to the whole world. Following measures can be
used to control or end terrorism:

• All the countries should work against terrorism together.
• The convention and agreement made against terrorism should be implemented

properly.
• Check cross-border terrorism.
• Control the transportation and production of small weapons.

D. Explosion of landmines

Landmines are those explosive things which are kept under the ground during war. These
explosive things do not explode for the long time. These are more destructive and take the
life of many innocent people. Generally, children, women and animals have been killed
or wounded or maimed due to the explosion of landmines. It has created negative impact
in the society.
Different agencies of UNO are working against landmines. They are preparing the bomb
or landmine disposal team and awaring the people about the oughtful things. They are
helping to the wounded people. We also need to be aware in such explosive things or
landmines.

344 JBD Social Studies Book 10