Vedanta Social Studies Book 8 Final (2078)

Leonardo da Vinci spent fourteen years to paint the famous painting of
Mona Lisa.

Humanism

Most people in Europe placed great importance on God and religion before
the Renaissance. However, some people began to think about the importance
of human beings as well during the Renaissance period. They are known as
humanists. They began to argue that human problems can be solved through
science rather than religion. They believed that a study of humankind, rather
than God, should be at the centre of learning. Humanism means a system of
thought and reasoning based on human values and interests, often without
accepting the beliefs of religion. It is an outcome of the Renaissance.

Art

Art was an important part of life during the Renaissance period. City-states
were proud of their artists. Renaissance artists carefully observed and
studied ancient Greek and Roman art. They gave depth to their paintings
and drawings. They tried to show their subjects as realistically as possible.
They also covered a greater variety of subjects: medieval art mostly showed
religious scenes and portraits, but Renaissance artists also painted scenes
from history, Greek and Roman myths, and everyday life.

Leonardo da Vinci, Michelangelo and Raphael were
prominent figures in the field of art at the time. Leonardo
was a man of many talents. He created the world-famous
painting 'Mona Lisa' which is still famous for its beauty,
liveliness and sensuality. He also painted a wall painting
called ‘The Last Supper’ on the wall of an Italian monastery’s
dining room.

Da Vinci was a scientist as well as an artist. He filled his Monalisa
notebooks with drawings of inventions that were far ahead
of that time. He designed the first parachute and made drawing of flying
machines.

The painting of Mona Lisa is still safe in Louvre Museum in Paris, France.

Michelangelo was another greatest painters and sculptors of the Renaissance.
His sculpture of David, King of Israel (in Bible), is regarded as one of the
most perfect human figures ever carved in marble. Lorenzo Ghiberti was
another famous Italian sculptor of the period who had created a door for

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a church in Florence. Michelangelo himself praised the painting by saying
that it deserves to be placed at the door of the paradise. Raphael is famous
for his painting ‘The School of Athens’.

Literature

During the Renaissance, educated people wrote in pure
Latin, the Latin used in ancient Rome. Then, many
writers began to written in the vernacular language.
Vernacular means the language of ordinary speech
rather than formal writing. When authors began
writing in the vernacular, many more people could
read their work. In the early 1300s Dante Alighieri,
a poet of Florence, wrote one of the world’s greatest
poems titled The Divine Comedy in the vernacular. Dante Alighieri

He protested against the evils deeds of fanatical popes, priests and feudal
lords through the poem. Erasmus, another talented writer, wrote The Praise
of the Fully.

In about 1450 AD, a German named Johannes Gutenberg invented the
printing press. It allowed people to make many copies of written works.
Printed books soon spread the ideas of the Renaissance all over Europe.

Science and Exploration

Among the scientists of the Renaissance were
scientists such as Nicholas Copernicus, Gilbert,
Galileo and Newton, and mathematicians such as
Kepler and Napier. Nicholas Copernicus theorised
that the sun is stationary and that other planets,
including the earth, revolve around the sun, while
Kepler proved the theory of Copernicus to be
mathematical.

The Renaissance also led people in Europe to explore Galileo

parts of the world they had never seen. Christopher
Columbus discovered America, Vasco da Gama discovered the sea route
from Portugal to India and Marco Polo explored China.

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Glossary

famine : a situation in which many people do not have enough food
to eat
epidemic
: an occurrence in which a disease spreads very quickly and
hampered affects a large number of people
revival
: slowed the movement or progress of something
prominent
sensuality : a period in which something becomes popular again after
a long period of time
sculptor
: important and well-known
fanatical
: the expression or suggestion of physical, especially
pleasure or satisfaction

: someone who creates statues or solid objects using wood,
clay, metal or stone

: holding extreme beliefs that may lead to unreasonable or
violent behaviour

ACTIVITIES

(1) Complete the following table, copy it on a chart paper and
display it on the wall of your noticeboard.

People in the Renaissance Period

Philosophers Scientists Artists Writers Explorers

Names

(2) Write an article on the Renaissance and share it in the class.

EXERCISE

(1) Give very short answers to the following questions.
(a) What do you mean by the Renaissance?
(b) Which period of the history is known as the Renaissance period?

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(c) From which place did the Renaissance period begin in Europe?

(c) Who are humanists?

(d) Name any two prominent scholars and artists of the Renaissance
period.

(e) Name any two prominent scientists and explorers of the Renaissance
period.

(f) Who were Leonardo da Vinci and Marco Polo?

(g) Who were Dante Alighieri and Nicholas Copernicus?

(2) Write short answers to the following questions.

(a) Give a short historical background of the Renaissance period.

(b) What were the major causes of the Renaissance? Mention them.

(c) How did the Reneissance help open the door to world modernisation?
Write in a short paragraph.

(d) What were major achievemenets in the field of art and humanism
during the Reneissance period? Mention them.

(e) Prepare a list of major achievemenets in the field of literature and
science during the Reneissance period?

(f) "The Renaissance must have been a very interesting time to have
been alive." Justify this statement.

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Revisiting the Unit

(1) Find out a brief description of each of the following personalities by
searching in books, magazines, on the Internet or in encyclopaedias or
by asking someone you know.

(2) Identify these personalities with the help of the following description.

Chandra Junga B. Leonardo Da Marco Polo Rajendra
Shumsher Rana Vinci Laxmi

(a) He abolished Sati custom and slavery from Nepal. He also built
Singha Durbar and established Trichandra Campus.

(b) He was an Italian merchant famous for his account of his travels in Asia. He
served Kublai Khan of China before returning to Venice by sea.

(c) She was the wife of King Pratap Singh Shah and the regent of Nepal
during the minority of her son Rana Bahadur Shah between 1777 and
1785 AD. She contributed to the unification of modern Nepal started by
PN Shah.

(d) He was an Italian painter, sculptor, architect and engineer. He was the
most versatile talent of the Italian Renaissance. His most famous paintings
include Mona Lisa, the Last Supper and the Virgin of the Rocks.

(e) He was the founder of Rana regime in Nepal. He established Durbar High
School and published Muluki Ain.

Project Work

Collect news stories about Greece and Italy in newspapers and post
them on wall magazines.

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UNIT OUR ECONOMIC
7 ACTIVITIES

Learning On the completion of this unit, we will be able to:
Outcomes
• tell about tourism and foreign trade in Nepal;

• mention the importance and present condition of tourism in Nepal;

• state the importance and present condition of foreign trade in Nepal;

• recognise the problems in tourism and foreign trade in Nepal and find their
solutions;

• say the concept of money, banking, co-operatives, saving, investment, capital
formation and determination of price; and

• make the practical implementation of these concepts.

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Lesson

71..11 Tourism in Nepal

Tourism and Tourists Tourists

Human beings do not always want to stay in a place.
They like to travel or visit new places for various
purposes such as holiday, pleasure, entertainment,
pilgrimage, business, and studying art, culture,
and the way of life of other people. Some people
travel for sightseeing, mountaineering, adventure,
and other purposes. Such travelling or visit of
people from one place to another with a specific
objective for a limited duration is called tourism.
Likewise, people who travel or visit a place for
various reasons are tourists.

Types of Tourists

There are mainly two types of tourists, internal and external. If a resident
of a country travels within her or his own country, she or he is a domestic or
internal tourist. If she or he travels to another country, she or he is a foreign
or international tourist.

Tourism Industry

When tourist visit or travel to any place, they
need many goods, services, and facilities. The
business or industry that provides all the things
and facilities necessary for tourist during their
stay in a place is called the tourism industry.
The business of travel agencies, paragliding,
rafting, trekking, snow skating, gulf, polo,
money exchanging, and so on come under this
industry. It is a service-oriented industry.

Trekking

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Importance of Tourism in Nepal

Nepal is a naturally beautiful and culturally rich
country. There are plenty of snow-capped mountains,
fast-flowing rivers, green forests, beautiful flora and
fauna, and many places of natural beauty. There
are many historical palaces, important religious
sites, buildings that depict our ancient art and
architecture, and people with diverse lifestyle. Many
places of Nepal are important from the natural, Rafting

cultural and religious perspective. They attract thousands of tourists every
year. Therefore, there is a great importance of tourism in our country.

The significance of tourism in Nepal can be mentioned in the following
points:

(1) It helps to earn foreign currency and increases national income.
(2) It provides employment opportunities to a large number of

people in our country.
(3) It helps in the development of cottage and handicraft industries.
(4) It assists in the promotion of trade and commerce.
(5) It helps in the promotion of our ancient art and culture in the

international community.
(6) It contributes to the development of rural infrastructures.

Current Status of Tourism Industry in Nepal

There is a great prospect of development of tourism in Nepal. Our country
is not only naturally beautiful but is also rich in cultural and religious
diversity. In fact, the tourism industry is the largest source of foreign
exchange and revenue in Nepal. If the tourism industry develops, we can
foresee the possibility of the overall development of our country.

The government of Nepal has established the Nepal Academy of Tourism
and Hotel Management (NATHM) to produce high level and basic human
resource for the development of the tourism sector. This institution is affiliated
with Tribhuvan University. It has been conducting several bachelor's level
programmes in Hotel Management and Travel and Tourism Management.
It has also been running a Master of Hospitality Management programme
since 2011 AD. Likewise, Kathmandu University and Pokhara University
also offer courses on tourism and hospitality management.

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Present Situation of Tourism in Nepal

Nepal has a great potentiality of tourism development. It has natural
resources such as snow-capped mountains, rivers, lakes, caves and waterfalls.
There are many religious and historical places with full of ancient arts in
Nepal. It also has geographical and cultural diversities. However, tourism
has not been developed as expected in Nepal. Therefore, government has to
put a lot of efforts for tourism development.
In the fiscal year 2018/2019 AD, tourist arrival was 1.197 million; the
contribution of tourism in GDP was 2.7 per cent; 200,000 people got direct
employment, and the average length of stay was 12.7 days.

Problems of Tourism Industry in Nepal

Although tourism is the backbone of our national economy, it has to face
several problems. They are mentioned below:

(1) Lack of proper communication and transportation facilities;
(2) Pollution;
(3) Lack of abundant means of entertainment for tourists;
(4) Lack of proper maintenance, preservation and promotion of

cultural and religious sites;
(5) Inadequate accommodation facilities in many hotels and poor

security system in many places;
(6) Shortage of qualified and trained human resources required for

the tourism sector;
(7) Lack of promotion and publicity for major tourist destinations;

and
(8) Lack of visionary and effective plans and policies for the

development of the tourism sector.

Solution to These Problems

The tourism sector has a high potential for the development of the Nepali
economy. Therefore, the following measures should be taken in order to
solve the problems of the tourism industry.

(1) Transport and communication facilities should be expanded.
(2) Extensive publicity of our country should be done at the

international level.

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(3) Peace and security need to be maintained in the country.
(4) Necessary quality goods and services, markets, banks, hotels,

and facilities should be provided for the tourists.
(5) Emphasis should be laid on the production of suitable human

resources in this sector.
(6) Population growth and environmental pollution need to be

controlled.
(7) Land and air transportation facilities should be improved.
(8) Our country needs to focus on ecotourism. It means the business

of organising holidays to places of natural beauty in a way that
helps local people and does not damage the environment.

The world is a book, and those who do not travel read only one page.
-Saint Augustine (A philosopher and writer from Africa)

Glossary

pilgrimage : a journey to a holy place

flora and fauna : plant and animal life

revenue : money that is collected for public use by a government
through taxes

foresee : to see or become aware of something that has not yet
happened

affiliated : closely connected with or to something as a member or
partner

accommodation : a place where people can live, stay, or work

extensive : large in size or amount

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ACTIVITIES

(1) Describe a tourist destination located in or near your community.

(2) Plan a five-day trip for a friend who is coming to visit your
community from another district.

(3) Paste the photos of any three major tourist destinations of
our country on a sheet of photocopy paper and write short
paragraphs about them. Show it to your Social Studies teacher.

EXERCISE

(1) Give very short answers to the following questions.

(a) Who are tourists?

(b) What is tourism?

(c) Why do people travel from one place to another? Mention any two
reasons.

(d) How is a domestic tourist different from an international tourist?
Write in a sentence.

(e) What do you mean by ecotourism?

(f) Why do tourists visit our country? Write any two reasons.

(2) Give very short answers to the following questions.

(a) What is the tourism industry? Write its five importance for the
development of Nepal.

(b) Why do tourists visit Nepal? Write their objectives in six points.

(c) How is the current status of the tourism industry and tourism studies
in Nepal? Write in a short paragraph.

(d) What problems are prevalent in the tourism industry in Nepal?
Mention any six of them.

(e) Write any six ways to solve the problems of the tourism industry in
Nepal.

(f) "Tourism is the backbone of the national economy in Nepal." Justify
this statement in a paragraph.

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Lesson

71..21 Foreign Trade

Trade

People cannot produce all the things they need on their own. Therefore,
people buy necessary things they do not have and sell surplus items in the
market. Such exchange or transaction of buying, selling, or exchanging
goods and services between people is called trade. People have traded since
the early days of civilisation. They conduct trade to earn profit and provide
service. It is necessary for satisfying human needs.

Types of Trade

We can divide trade into two major categories. They are internal trade and
external trade.

Internal Trade:

Trade that is limited to the country’s
borders is called internal trade. It is also
known as domestic trade. It can be at the
local, regional or national level. Internal
trade can be classified into two broad
categories: wholesale trade and retail trade.
A wholesale trader buys and sells goods
and services in large quantities and sells to
retailers. On the other hand, a retailer buys goods from a wholesaler and
sells them to the public, usually in small quantities.

External Trade:

Trade that a country makes with other
nations is called external trade. It is also
known as international trade. An external
trade occurs when the business firms of two
different countries participate in buying
and selling goods. We can divide external
trade into import trade and export trade on

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the basis of the sale and purchase of goods and services. When the business
company of a country purchases goods from the firm of another country, it is
import trade. For example, when the Nepal government imports petroleum
products from India, it is import trade.
On the other hand, when the business house of a country sells goods to
a firm of another country, it is called export trade. An example includes
the sale of Nepali handicrafts by a Nepali company to a Chinese company.
People use foreign currency in foreign trade. Customs duties, quota system,
foreign exchange rates, and trade policies govern foreign trade.
Surplus goods and services remained after the consumption are exported to
other countries from Nepal. Similarly, items that cost more to produce in our
country or goods that we cannot produce ourselves are imported from other
countries. Imports and exports denote purchase and sale in foreign trade.
Balance of trade is simply the difference between the value of exports and the
value of imports. A nation can benefit from comparative cost differentiation
through foreign trade.
Likewise, foreign trade promotes specialisation. When there is a huge
demand for a particular commodity, its producer gets encouraged to specialise
in its production. For example, there is a demand for Japanese electronic
goods all over the world. The result is that Japan has specialised itself in
producing electronic goods, and it supplies them to many countries in the
world. Likewise, Nepal has specialised in tea, carpet, and garments. When
countries are involved in foreign trade, comparative cost differentiation and
specialisation of products can benefit each other.

Importance of Foreign Trade in Nepal

Foreign trade has an important place in the economy of most countries of
the world. As Nepal is a developing and landlocked country, foreign trade is
more important here. The market for manufactured goods can be expanded
through foreign trade. It helps to earn foreign currency. It assists in the
utilisation of means and resources available in a country. It also contributes
to the creation of employment opportunities, increment in government
revenue, and industrialisation of a nation. When international goods are
available at a competitive price through foreign trade, domestic companies are
compelled to produce goods at a competitive price. It enhances competition,
and customers can get a large variety of goods. Foreign trade also helps to
improve international relation by bringing people from different countries
together. External trade is a means through which the natural resources of
various countries get utilised properly.

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Current Condition of Foreign Trade in Nepal

About two-thirds of the total foreign trade of Nepal is with India. Nepal
has been suffering losses in foreign trade because our country imports more
than its export. Such a situation in which the value of a country's imports is
greater than its exports is called a trade deficit.
Nepal exports various items such as textiles, polyester threads, GI pipes,
stones, sand, and cardamom to India. Likewise, our country trades carpets,
readymade garments, Pashmina, Nepali paper, raw leather, handicrafts, tea,
and coffee to other nations besides India. On the other hand, Nepal imports
petroleum products, coal, chemical fertilisers, readymade garments, and
agricultural equipment from India. Imports for Nepal from other countries
include gold, soybean crude oil, tea, edible oil, electronic goods, and other
machinery parts.

Problems in the Development of Foreign Trade

The trade deficit is on the rise in our country as imports have been increasing
whereas the exports of goods and services have remained constant. Although
Nepal is an agricultural country, it has to import even rice and other food
grains. Similarly, there is a growing demand for petroleum products in
Nepal. A huge sum of money goes to foreign nations while exporting them.
Most of the exports of Nepal include raw materials, which are comparatively
cheaper in price. Likewise, our imports include readymade, expensive and
luxurious finished goods that are costlier. The major problems that Nepal
has been facing in foreign trade are mentioned below:

(1) Growing demand for petroleum products.

(2) Increase in import of expensive goods such as mobile phones,
cosmetic products, and other luxurious products.

(3) Inability to produce quality and standard domestic products.
(4) Lack of visionary and effective plans and policies.
(5) Inability to reduce import smuggling due to open border and

landlocked feature of our country.
(6) Lack of expected growth in the service sector.
(7) Inability to develop industrial infrastructures.
(8) Incompetence to produce and export goods of basic necessity.

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Ways to Solve the Problems of Foreign Trade in Nepal

Various measures can be taken to solve the above-mentioned problems.
They are given below.

(1) Production of exportable agricultural and forest-based goods
should be increased.

(2) Special focus should be laid on the earning of foreign currency
through the export of energy and service business, including
tourism.

(3) Remittance needs to be directed towards income-generating
activities.

(4) The investment environment in the country should be improved.
(5) Special facilities should be demanded from the World Trade

Organisation (WTO) for a landlocked country like Nepal.
(6) Industrial infrastructure should be developed, and quality goods

should be produced at a competitive cost.
(7) Unconditional transit facilities should be provided.
(8) The agreement should be done with India to access its additional

ports and with China on transit and transportation.
(9) Our country should diversify its trade. This type of process of

expanding trade of various items to different nations is called
trade diversification.

Glossary

surplus : more than the amount that is needed

firm : a business organisation

customs duty : a tax that people pay for importing and exporting goods

trade deficit : a situation in which a country buys more from other
countries than it sells to other countries

crude : petroleum that is not yet ready to be used as fuel

remittance : the act of sending money to somebody to pay for
something

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ACTIVITIES

(1) Collect at least five foreign-made items used in your home,
neighbourhood, school or local community, and sort them out
the names of countries where they are made.

(2) Discuss the current state of foreign trade in Nepal.

EXERCISE

(1) Give very short answers to the following questions.
(a) What is trade?
(b) Why do people carry out trade? Mention any two reasons.
(c) How is a wholesale trader different from a retail trader? Mention in
a sentence.
(d) What factors govern foreign trade? Mention any two of them.
(e) Write the meaning of balance of trade.
(f) What do you mean by trade deficit?
(g) What is the primary cause of the trade deficit in Nepal?
(h) Make a list of any two-two things that Nepal imports and exports.
(i) Write any measures to minimise the trade deficit in Nepal.
(j) Write the full form of WTO.

(2) Give short answers to the following questions.

(a) What do you mean by trade? What are its types? Explain both of
them in short paragraphs with examples.

(b) What is foreign trade? Mention its importance in Nepal five points.

(c) How is the current status of foreign trade in Nepal?

(d) What are the problems in the development of foreign trade in
Nepal? Mention any six of them.

(e) What are the measures to solve the problems of foreign trade in
Nepal? Write any six ways.

(f) What is a trade deficit? Mention any five ways to reduce the trade
deficit in Nepal.

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Lesson

71..31 Currency

Barter System

People in ancient time were self-dependent. They used to produce whatever
things they needed at their own homes. They used to give surplus things to
others and take other things when they needed them. In this way, people
used to exchange goods with each other in the absence of money. Such
system of exchanging goods, property, and services for other goods without
using money is called barter system.

Currency

As economic activities increased, barter
became more and more impractical. They
began to seek a universally accepted
commodity as a means of exchange. Then,
they used certain grains, animals, animal
skins, shellfish shells, and tortoise shells
as a medium of exchange. With the pace of
development, metals like gold and silver
came into circulation. Nowadays, paper
money or notes are prevalent in the world and Nepal. The money that is
used in a particular country at a particular time is called currency. The
Nepalese rupee is the official currency of Nepal. The essential features of a
good currency are universality, legal acceptability, portability, durability,
and divisibility.

With the development of human civilisation, the form and definition of
money have gone through several changes. Besides paper cash, people use
debit cards, credit cards, cheques, and drafts in Nepal these days. Nepal
Rastra Bank is the only institution to handle the issue of notes in Nepal.
Most European countries have introduced a common currency called the
euro. The US currency is called the US dollar. The currency of India is the
Indian rupee, and that of China is the yuan.

A country cannot become rich by printing as many notes as it wants. It must
obtain approval from the International Monetary Fund under the United

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Nations to print notes or mint coins. The IMF allows the printing of notes
or coins based on the ability of the nation to consume goods and services.
In proportion to the value of the note, the country must secure a certain
amount of gold or similar valuables. After that, the country can print notes
and mint coins according to its needs. The notes of a country depict how
civilised its citizens are.
We need foreign currency to import essential goods from abroad. We have to
export goods to earn foreign currency. We can also earn it by going abroad
and working there. Serving tourists with goods and services necessary for
them is another way to earn it. Another way for earning foreign currency
is from foreign grants or loans. Among them, the most reliable sources of
foreign exchange are trade and tourism. Many Nepali people have gone
abroad for foreign employment, especially in countries like Saudi Arabia,
Malaysia, Qatar, South Korea, Japan, Australia, Canada, America, and
other nations. They earn foreign currency and send it to Nepal in the form
of remittance. Remittance means money that is sent by a foreign worker
back to their own country.

Request of Nepal Rastra Bank, Department of Currency Management
Regarding the Precautions to Be Taken While Using Nepali Notes

• Let's make a habit of using money bags to save notes.

• Let's not write on the notes indiscriminately.

• Let's get in the habit of using new notes as much as possible as the value of
both new and old notes of the same denomination is the same.

• Let's save the notes and save the wealth of our country by protecting the note
from dust, termites, fire, and water since we have to spend a lot of money to
print new notes.

• Let's discourage the actions of burying the notes and keeping them in a bag
for a long time as they can damage the notes.

• Let's think about protecting notes ourselves, and let’s teach others too.

• Let's get rid of the habit of making notes dirty while handling them.

• Let’s not touch notes with dirty hands while performing Pooja or doing any
work.

• Let’s discourage the acts of putting a stitch on a bundle of notes as such acts
can tear notes and make it difficult to remove them.

• Let's inform the nearest Nepal Rastra Bank office or other banks and financial
institutions if we find any suspicious notes during the transaction.

• Let’s not put colour, water, milk, and blood in the notes while using the note
for religious purpose. Instead, let’s put them in the donation box or give a
donation to the authorities directly.

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Glossary

monetary : related to money
prevalent
mint : common or widespread
draft
: to make (coins) out of metal
grants
: a written order for money to be paid by a bank, especially
termite to another bank

suspicious : an amount of money that is given to someone by a
government or a company to be used for a particular
purpose

: a kind of soft, white insect that lives in groups, eats wood,
and causes a lot of damage to wooden structures

: causing a feeling that something is wrong or that someone
is behaving wrongly

ACTIVITIES

(1) What are the uses of money in your community? Find out and
make a list of three uses.

(2) Find today's foreign exchange rate on a daily newspaper, cut it,
and paste it on your school notice board wall.

(3) What do we say to the currencies of SAARC nations? Discuss
among your friends and prepare a list.

EXERCISE

(1) Give very short answers to the following questions.

(a) What is a barter system?

(b) What is currency?

(c) What are the essential features of a good currency? Mention any
two of them.

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(d) Which is the only institution responsible for issuing notes and
minting coins in Nepal?

(e) Introduce International Monetary Fund in a sentence.
(f) Write any two ways to earn foreign currency.
(g) Name any four countries where Nepali people have gone for foreign

employment.
(h) What are the euro and yuan?
(i) What do you mean by remittance?

(2) Give short answers to the following questions.
(a) What were the drawbacks of the barter system? Mention them.
(b) What is the importance of currency in our daily life? Write in six
points.
(c) How can a country issue its currency? Write the stepwise procedures.
(d) What are precautions to be taken while using Nepali notes? Mention
any six of them.

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Lesson Banks

71..41

Banks and Banking Service

A bank is a legally organised financial institution that provides various
financial services. Individuals and organisations do not want to keep their
cash due to various sources. It is not safe to keep cash with a person or in
an institution, and there is no return on it. Moreover, there are chances of
theft, robbery, fire, and other accidents. Therefore, one has to keep it safely
in a bank.

When an individual goes to a bank to keep money, the concerned bank makes
arrangements to open an account in her or his name. The bank then accepts
the money as a deposit. The bank provides the cheque book, and automated
teller machine (ATM) card to the depositor in accordance with the rules of
the bank and the demand of the depositor. On the other hand, the bank also
provides loans from deposits to individuals or institutions on the basis of her
or his collateral.

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In this way, a bank is a financial institution established according to law,
which accepts deposits, provides loans, creates credit and does business
with it. The bank works to collect small amounts of money scattered with
individuals or organisations in different parts of the country. Banks play an
important role in building the capital required for the development of the
country. Banks are considered both the result and the cause of economic
progress.
On the basis of the purpose of the establishment and the nature of their
work, we can classify the bank into different categories. They are the central
bank, commercial banks, and development banks.

Central Bank

Almost every country has a
central bank. It is the highest
institution in the currency
and banking sector. It issues,
controls and manages money.
It controls other banks
and financial institutions
in the country and gives
necessary instructions. It is
also called the bank of banks and the bank of the government. Nepal Rastra
Bank in Nepal, Reserve Bank of India in India, and Bank of England in the
United Kingdom are the examples of central banks. The central bank works
not for profit but for the monetary purpose of the government and the public
interest.
Nepal Rastra Bank was established on April 29, 2013. It denominates notes
and mint coins that help in exchange and payment. It has played an important
role in the establishment and development of various other banks and
financial institutions as well as in credit control. NRB has also contributed
to the smooth operation of foreign exchange rate and monetisation in rural
areas.

Commercial Bank

Commercial banks are established to make a profit. They accept deposits
from the general public in various accounts. They provide various types of
loans on the basis of their collateral for the general public and traders. They
transfer money from one place to another through various means. They also

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deal in foreign exchange, issuance
of credit instruments and buying
and selling. They provide locker
facilities for their customers to
keep valuable ornaments and
documents. Established in 1994
BS, Nepal Bank Limited is the
first commercial bank in Nepal.
Similarly, Rastriya Banijya Bank,
Krishi Bikas Bank, Nabil Bank Limited, Nepal Investment Bank Limited,
and so on are commercial banks in Nepal.

Development Bank

A development bank is a financial institution established to develop and
promote agro-industry, and other major sectors. It provides medium and
long term loan assistance to private and public institutions. It assists
enterprises or institutions from planning to the operational level. Nepal
Industrial Development Corporation, established in 2016 BS, is an example
of a development bank in Nepal.

Glossary

collateral : something that you promise to give someone if you cannot
pay back a loan
denominates
monetisation : expresses an amount of money using a particular unit

: the act or process of earning money from something,
especially a business or an asset

ACTIVITIES

(1) Make a list of any four services available from a financial institution
near your home or neighbourhood.

(2) What are the differences between Nepal Rastra Bank and Banijya
Bank? Discuss among your friends and make a list of any four
differences.

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EXERCISE

(1) Write very short answers to the following questions.
(a) What is a bank?
(b) Why should we keep our money in banks?
(c) Make a list of any two facilities that we can get from a bank.
(d) Write the full form of ATM.
(e) Which is the central bank of Nepal?
(f) Which is the first bank of Nepal? When was it established?
(g) Give any two examples of commercial banks of Nepal.
(h) Introduce the development bank in a sentence.
(i) Write a reason why depositing money in banks is better than keeping
it at home.

(2) Write short answers to the following questions.
(a) ‘Banks are both the result and cause of economic progress.’ Justify
this statement.
(b) What are the different types of banks? Introduce them in short
paragraphs.
(c) What roles have banks played in the economic development of our
country? Mention any six roles.
(d) Give a brief introduction to development banks.
(e) Compose a dialogue between two friends discussing how banks
have made our life easier.

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Lesson Price Determination of Goods
and Price Hiking
71..51

Factors Determining the Price of Goods

Producers or manufacturers produce the products or goods available in the
market. The producers can be an individual, firm, or industry. They need
different means and resources to produce goods. Such resources include
land, capital, labour, and physical infrastructure. A manufacturer needs
investment for land, interest for capital, wages for labour and profit for the
enterprise. The payment or expense included in producing such goods is
called cost price. It is the price that is necessary for the production of a
product without adding profit to it. Generally, the price of a commodity is
determined on the basis of this production cost. The government levies tax
on certain products. The manufactures add such government taxes in the
cost price. Similarly, the government can provide subsidy to the producers
for the production of some goods. In such a case, the price of the commodity
can be less than the cost of production.

The price of a commodity also depends on the nature of the market. If the
producer of a commodity has a monopoly in the market, that is if there
are no other competitors in the market to produce the similar commodity,
then the producer determines the price of the commodity herself or himself.
However, a monopolistic producer has to reduce the price to sell more goods,
but she or he can only sell fewer goods at higher prices.

There are many producers, retailers, and consumers of the same product in
a competitive market. In such a market, the volume of supply and demand
determines the price of a commodity. Consumers demand goods. The buyers
demand more quantity of the commodity when the price is lower and less
quantity of the commodity when the price is higher. Similarly, producers/
suppliers supply more quantity of goods when prices are higher and lower
quantities of goods when prices are lower. Eventually, the price of the
product is determined when the price of the supply quantity of the product
and the demand quantity is equal.

If, due to some reason, the price of a product or commodity exceeds the fixed
price, the supply exceeds its demand. As supply is high, there is competition
among producers to reduce prices. As a result, the price of the commodity

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goes down to the pre-determined price. Similarly, if for some reason the price
of a commodity falls below the fixed price, the demand is higher than the
supply of the commodity. As the demand is more than the supply, the price
of the commodity increases to the pre-determined price due to competition
among the demanders or consumers.
Competition between the firms that produce similar products is another
reason to determine the price of a product. A company has to consider the
price of another similar product to determine its price. It has to fix nominal
profit in a tough competitive market.

Price Hiking

There may be a tendency of the illegitimate business in the market, such
as increasing the commodity price by reducing the supply compared to the
demand for the commodity and making the profit excessive. Such illegal
trading of goods that are not enough for everyone who wants them is a
black market. Similarly, some traders can create an artificial scarcity of
commodities and hike their price. Such increment in the price of daily
need is called price hiking. The cost of goods becomes far more expensive
than its original price in a price hike. Consumers suffer a lot due to a price
hike. Traders seize opportunities of price hiking during shutdowns, strikes,
lockdowns, pandemic, and natural calamities.

Various factors that cause price hiking are lack of effective laws, lack of
awareness in the customers, lack of regular and periodical monitoring of
concerned authorities, monopoly market, black market, natural and artificial
disasters, epidemic, shortage of goods, and so on.

Measures to Control Price Hiking

(1) The government has to make effective laws to control the black
market and artificial price hiking.

(2) Consumers should be made aware of their rights through
various media.

(3) The government needs to have strategies to conduct regular and
surprise monitoring and implement them strictly.

(4) The government should take action against those traders who
hike the price of their goods.

(5) Awareness generating campaigns need to be conducted time
and again in the presence of journalists, consumer right
activists, and representatives of the security personnel.

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(6) The retailers should be compelled to display price list and issue
bills to the customers.

(7) Public enterprises need to operate a number of fair price shops
across the country.

Glossary

wages : an amount of money that a worker is paid based on the
number of hours, days, etc., that are worked
commodity
levies : something that is bought and sold
subsidy
: uses legal authority to demand and collect a tax
monopoly
: money that is paid usually by a government to keep the
nominal price of a product or service low or to help a business or
shutdown organisation to continue to function

lockdown : complete control of the entire supply of goods or of a
service in a certain area or market

: very small in amount

: the act of stopping the operation or activity of a business,
machine, etc., for a period of time or forever

: an official order to control the movement of people or
vehicles because of a dangerous situation

ACTIVITY

(1) Traders should display the price list of food items in their shops
so that everyone can see it. Similarly, the manufacturer packs
and sends some items to the market. When packing such items,
the date of manufacture, weight, price, and expiration date
need to be mentioned. Search for a few items and fill out the
table below.

SN Name of Price of Weight Date of Expiry

product product (Rs) (kg/litre) production date

Discuss with your classmates why we should not use expired
products.

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EXERCISE

(1) Write very short answers to the following questions.
(a) Name any two resources that producers or manufacturers need to
produce goods and services.
(b) What do you mean by cost price?
(c) What is meant by a monopoly market?
(d) What is the black market?
(e) What do you mean by price hiking?
(f) When do traders usually hike the price of their goods?

(2) Give short answers to the following questions.
(a) What are the factors that determine the price of goods? Describe
them in a paragraph.
(b) What are various reasons responsible for the price hike? Mention
any six causes in points.
(c) What is price hiking? Write any five measures to control it.

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Lesson Capital Formation and
Cooperatives
71..61

(Jagat Chaudhary works as a reporter for a popular Nepali news
channel. He is going to interview Mr Prem Prasad Sharma today.
Mr Sharma is the chairperson of Shantipur Saving and Loan
Cooperative Society. Let’s hear the conversation between them.)

Jagat Chaudhary: Namaskar Sir! I want to welcome you in this
programme.

Prem Prasad Sharma: Namaste Jagatji! Thank you!

Jagat Chaudhary: You are the chairperson of Shantipur Savings and
Loan Cooperative Society. It has become a popular
cooperative not only in this district but in the whole
nation. Can you please give us a short introduction
to your cooperative?

Prem Prasad Sharma: Sure! Around fifty families live in Shantipur village.

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Until five years ago, its inhabitants were extremely
poor. Most of us lived on daily wages. There was not
enough food for the whole year. Wages were not good.
As the yield in our fields was less, most of us had to
live a miserable life.

Meanwhile, adult literacy classes began to run in our
village. The volunteers of the adult literacy classes
conducted the Khutruke saving programme among
the class participants. They made the rule that
every family had to save at least 100 rupees instead
of spending it on tea and cigarettes every day and
put it in Khutruke. After this rule came into force,
many people of our village stopped smoking. We
were able to collect more than Rs 1, 50,000 a month.
We bought five goats with the money and distributed
it to five families on the basis of inclusive principle.
The families had to pay certain interest to the group
every month.

We lent the money collected in the second month to
four people for growing vegetables. They rented a
Ropani farm and cultivated vegetables. Ten people,
including me, borrowed the money collected in the
third month. I bought the seeds of improved maize
and planted them in my field. My friends used the
money for buying the seeds of lemongrass. Two
brothers used the money collected in the next month
to set up a small shoe factory in the village. In this
way, the amount the people saved was used in various
businesses and economic activities. Gradually,
principal and interest began to return. The amount
was increasing, and we were able to collect a good
sum of money. It became difficult to keep accounts.

Jagat Chaudhary: How did the idea of this cooperative come?

Prem Prasad Sharma: The volunteers of the adult literacy classes suggested
us to set up a cooperative in our village. They helped
us to open it. So, we opened Shantipur Saving and
Loan Cooperative Society. More than a hundred
villagers became members of the cooperative. There
was no discrimination of gender, religion or caste.

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Monthly savings turned from Khutruke to account.
Our savings also increased. We started raising
Rs 300 a month. The people of our village went
through a radical change. No one was unemployed.
Our children started going to school. There was no
shortage of money. It was possible to borrow from
the cooperative at any time. The amount invested in
the shares of the cooperative also earned profit. The
interest on savings also kept on coming.
Seeing the success of Shantipur Cooperative,
the District Agriculture Development, Rural
Municipality and District Coordination Committee
Office provided special assistance. At present,
our village is connected to the main road. Various
government and non-government agencies provide
us with training regularly. The fate of Shantipur
village has changed in these five years. We were
able to build up capital with our saving habit. As
we invested the capital in various businesses,
our economic status got improved. In addition,
agriculture, cottage industries and trade developed
in our village. Cooperatives help to manage savings
and form capital. The policy of the Government of
Nepal of "GAUN GAUNMA SAHAKARI, GHAR
GAHRMA BHAKARI" has become meaningful in
our village. We have become successful in forming
capital with our savings.
Jagat Chaudhary: Thank you, Sir, for giving your valuable time.
Prem Prasad Sharma: It’s my pleasure.

Glossary

inhabitant : a person or animal that lives in a particular place
radical
shortage : very new and different from what is ordinary

: a state in which there is not enough of something that is
needed

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ACTIVITIES

(1) Which cooperatives are there near your home or school? Make
a list and write their major activities.

(2) If you get an opportunity to interview with the chairperson of a
cooperative, what questions will you ask? Prepare a set of any
five questions.

EXERCISE

(1) Which words from the lesson give the following meanings? Look and
write.

capital cooperative cottage industry saving wages

(a) A small business in which people work in their own homes with

their equipment ..................................

(b) An amount of money that a person receives by doing work that

needs physical skills or strength ..................................

(c) An organisation or company that is owned and controlled by a
group of members who each have a share in it ...........................

(d) The money that you keep in an account in a bank or similar
financial organisation without using or spending it ...........................

(e) A large amount of money used for starting a new business or for

producing more wealth ..........................

(2) Give very short answers to the following questions.
(a) What is saving?
(b) What is a cooperative?
(c) What is the policy of the government regarding cooperatives?
(d) What are the working areas of cooperatives? Mention.

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Lesson Condition of Employment in
Nepal
71..71

Employment

Employment is the condition in which a person gets a job to earn money.
She or he gets wages or salary in the form of cash or commodities from work.
She or he receives payment on a periodical basis. This period can be hours,
days, weeks, months. Only people of a certain age group are considered for
active employment in an organisation. Especially people in the age group of
15 to 59 years can be included under this category. The population of this
age group is also called an economically active population. Such fixed age
groups vary from country to country.
Employment is the basis of human livelihood. The level of employment in
a country shows how many people of its total labour force are employed.
Employment can be analysed by dividing the economy into different
sectors, such as agriculture, industry, trade, construction, services, and so
on. Similarly, employment can be analysed by dividing it into two parts,
internal employment and foreign employment. Some people do not work
for employers. They find work for themselves or have their own business.
Such people are self-employed people. Unemployment is the situation of not
having a job that provides money despite her or his skill, age, ability, and
desire.

SN Description Unit

1 Unemployment rate 11.4%

2 Labour force engaged in formal sector 36.5%

3 Labour force participation rate 38.5

4 Forced labour participation rate 1.2 per thousand

Source: The Fifteenth Plan (Fiscal Year 2019/20 – 2023/24)

Problems Related to Employment in Nepal

(1) Failure to provide employment opportunities to the labour force
that is being added to the country's labour market every year;

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(2) Lack of adequate number of employment information centres;
(3) Lack of foreign employment and internal labour supply bodies with

clear vision, and policy formulation;
(4) Lack of visionary plans and policies to produce skilled human resources;
(5) Lack of production of new knowledge and skilled workforce as per the

demand of the market;
(6) Lack of factual and timely information to the people who are going for

the foreign employment;
(7) Lack of adequate number of skill-based training institutions across the

country;
(8) Poor effectiveness of the labour market information system and our

administration; and
(9) Lack of entrepreneurship development, self-employment, and

productive employment opportunities.

Solution to These Problems

(1) Employment opportunities should be identified and created in the
productive sector.

(2) Skilled human resource needs to be developed on the basis of
demands of the labour market.

(3) Entrepreneurship skill should be developed in the students by making
education practical, skill-based, and employment-oriented.

(4) Fundamental rights of foreign workers must be guaranteed in foreign
nations.

(5) Foreign returnee should be encouraged to use their capital, skills and
knowledge in our own nation.

(6) Minimum wages should be legalised for all workers.
(7) Employment information centres need to be established at all local

levels.

Glossary

livelihood : a way of earning money in order to live

entrepreneurship: the activity of making money by starting or running
businesses when this involves taking financial risks

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ACTIVITIES

(1) Collect data of employed and unemployed people in the
community. Use that statistic to calculate the percentage of
employed people in your community.

(2) Organise a speech competition on the title, “Creation of self-
employment is today’s necessity.”

EXERCISE

(1) Write very short answers to the following questions.

(a) What is employment?
(b) What do you mean by economically active population?
(c) Who are self-employed people?
(d) What is meant by unemployment?
(e) How is internal employment different from foreign employment?

(2) Give short answers to the following questions
(a) What are the problems related to employment in Nepal? Mention
any five of them.
(b) Write any five measures to solve the problem related to employment
in our country.
(c) What is the contribution of an economically active population to the
development of a nation?
(d) Compose a dialogue between two friends discussing the importance
of employment for national development.
(e) Prepare a news article on the topic, ‘Importance of self-employment.’

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Revisiting the Unit

(1) Prepare a set of questions to interview a representative of a local
cooperative or savings group. Collect adequate information and present
it in the classroom.

(2) Write a song or a poem with the motto 'Saving opens the door to a
happy future'.

(3) Match the following. Group B
Group A movement from one place to another
international trade
(a) Capital formation use of saving in production
(b) Investment increment in capital involvement in
(c) Foreign trade income-generating activities
(d) Employment

(4) The following are some of the statistics related to Nepal's foreign trade
in the Fiscal Year 2076/77. Critically analyse it in a group with your
friends.

SN Trade Indicators FY 2075/76 (12 Months) FY 2076/77 (12 Months) Change (%)
1 Imports (Rs.in `000) 1,418,535,343 1,196,799,053 -15.63
2 Exports (Rs.in `000) 97,109,521 97,709,105
3 Trade Deficit (Rs.in `000) 1,321,425,822 1,099,089,948 0.62
4 Total Foreign Trade (Rs.in `000) 1,515,644,864 1,294,508,158 -16.83
5 Imports/Exports Ratio 14.6 12.2 -14.59
6 Exports Share to Total Trade (%) 6.4 7.5 -16.16
7 Imports Share to Total Trade (%) 93.6 92.5 17.75
8 Revenue collection(Rs in `000) 362,574,874 305,187,829 -1.22
-15.83

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UNIT OUR INTERNATIONAL
8 RELATION AND

COOPERATION

Learning On the completion of this unit, we will be able to:
Outcomes • introduce the friendly nations of Nepal, their relations, and co-operation;
• explain about the association of Nepal with the UNO;
• identify and be familiar with the current affairs of the world;
• describe the contribution of Nepal in world peace; and
• present the role of diplomatic missions.

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Lesson

81..11 Our Friendly Nations

Nepal is a landlocked country
situated in South Asia. It lies
between the China and India.
The people's Republic of China
lies to its north, and the Republic
of India lies to its south, east and
west. Our country always seeks
to maintain cordial relation
with both of these countries.
Nepal also focuses on expanding
mutual ties and cooperation in
economic, social, and other fields
with its neighbours and other
countries of the world based on
equality. The principles of Non-
alignment, UN Charter, the Panchsheel and international law guide the
foreign policy of our country. By 2021 AD, Nepal has maintained a diplomatic
relationship with 170 countries around the world. The first being United
Kingdom (Britain) in 1872 BS (1816 AD), and the last being the Gambia on
24 May 2021 AD. Nepal has always been a faithful and active member of the
United Nations and its specialised agencies.
Panchsheel is also known as the Five Principles of Peaceful Co-existence.
The principles include mutual respect for each other’s territorial integrity
and sovereignty, non-aggression, non-interference, equality and mutual
benefit, and peaceful co-existence.
China, India, Pakistan, Bangladesh, Sri Lanka, Bhutan, and Maldives are
our neighbouring countries. The cordial relations between the neighbouring
countries have enhanced mutual harmony and cooperation. Nepal is a
founding member of the South Asian Association for Regional Cooperation
(SAARC). This organisation has been playing a vital role in enhancing
regional cooperation among its member countries on the basis of mutual
benefit.

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Situations

Denmark, Australia, Japan, the United States, the United Kingdom,
Germany, the Netherland, and many other nations have been providing
financial and technical assistance to the development efforts of Nepal.
Thousands of Nepali students are pursuing higher education in the United
States, United Kingdom, Australia, Japan, China, India and Bangladesh.
Likewise, thousands of Nepali workers work in countries such as India,
United Arab Emirates, Malaysia, Qatar, Bahrain, Kuwait, Israel, South
Korea, and Singapore. Such foreign employment has helped to solve
the unemployment problems of Nepal to a great extent. They send their
earnings in the form of remittance to our country. It has helped a lot in the
economy of Nepal. The occasional visits between the dignitaries of Nepal
and neighbouring countries have contributed to strengthening our ties.
Our relations with the neighbouring countries help us learn about the
economic, social and cultural issues of those countries. We can also heighten
the pride of our country by introducing our country at the international
level. Growth in the information and communication sector has brought the
world closer. We can get enough information and facts about any nations
through information and communication technologies such as email, mobile
phones, websites, and the internet. We can also share various information
about our country with others using such technologies. Apart from these
sources, we can get information about those countries from various books,
magazines, atlases, and even from foreigners visiting Nepal.

Glossary

cordial : politely pleasant and friendly

non-alignment : the policy or fact of not providing or receiving support
from any of the powerful countries in the world

charter : a written statement of the principles and aims of an
organisation

diplomatic : involving the work of maintaining good relations
between the governments of different countries

pursuing : trying to get or do something over a period of time

dignitaries : persons who have a high rank or an important position

non-aggression : a relationship between two countries that have agreed
not to attack each other

non-interference : the policy or practice of not becoming involved in
other people’s disagreements, especially those of
foreign countries

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ACTIVITY

(1) Where are the friendly nations mentioned in the lesson located
on the world map? Consult an atlas and find them with the help
of your friends.

EXERCISE

(1) Name the following countries. Give any eight examples.

(a) Our friendly nations
(b) Countries that have been providing financial and technical assistance

to our country
(c) Foreign nations where many Nepali students go for higher education
(d) Countries where a large number of Nepali workers go for foreign

employment
(e) Member countries of the SAARC

(2) Give very short answers to the following questions.

(a) What principles guide the foreign policy of our country?
(b) With how many countries has Nepal maintained a diplomatic

relationship till now?
(c) What are various sources that provide us with information about our

friendly nations?
(d) Which is the first country that Nepal maintained a diplomatic

relationship with?

(3) Offer short answers to the following questions.

(a) Why should our country maintain a good relationship with other
nations of the world? Mention any six reasons.

(b) What do you mean by Panchsheel? List its principles.
(c) How can a country maintain a friendly relationship with other nations?

Compose a dialogue between two friends discussing various ways
to maintain a friendly relationship among different countries.

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Situations

Lesson

81..21 Organs of the United Nations

Introduction to United Nations

The United Nations is a unique organisation of
independent countries that have come together to
work for world peace and social progress. It aims to
solve world problems in a peaceful way and promotes
international cooperation.

History of the UNO

In August 1941, then-US President Franklin D. Roosevelt and British Prime
Minister Winston Churchill signed a treaty for establishing an international
body, such as the United Nations. The meeting was held in a warship in
the Atlantic Ocean. The treaty is known as Atlantic Charter. It had eight
principles to guide the settlement of the Second World War.
The idea of the United Nations was born during World War II. World leaders
who had worked together to end the war felt a strong need for a mechanism
to help bring peace and stop future wars. They realised that this was
possible only if all nations worked together through a global organisation.
The United Nations was to be that organisation.
The organisation formally came into existence on 24 October 1945 AD.
There were 51 countries as its founding members. By the end of 2020, the
membership of the UN has grown to 193 countries, including Nepal. Nepal
joined the United Nations on 14 December 1955 AD. Its headquarters are in
New York, America.
However, it was not the first organisation of its kind. A similar organisation
called the League of Nations was set up in 1919 AD following World War
I. Its main objective was to keep world peace. However, not every country
joined the League. It was not a strong organisation, and it often failed to
take action against its members. Although it did not succeed, it paved the
way for a universal organisation.

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Organs of the UNO

The UN Charter establishes six main organs of the United Nations.

(1) The General Assembly:

The General Assembly is the
legislative body of the United
Nations. It may be even called the UN
Parliament. All the member states
of the UN send their representatives
to the General Assembly. It is the
largest organ of the United Nations.
It passes the UN budget and makes
other important decisions.

(2) The Security Council

While the General Assembly can discuss any world concern, the Security
Council has primary responsibility for questions of peace and security.
The Security Council has fifteen members. Five are permanent members:
China, France, the Russian Federation, the United Kingdom and the United
States. The other ten non-permanent members are elected by the General
Assembly for two-year terms and are chosen on the basis of geographical
representation. To pass a declaration in the Security Council, nine members
of the Council must vote “yes”, but if any of the five permanent members
votes “no”, the resolution does not pass.

Right to Veto
At the end of World War II, China, France, the Russian Federation (originally
the USSR), the United Kingdom and the United States played key roles in
establishing the United Nations. The creators of the UN Charter considered
that these five countries would continue to play important roles in the
maintenance of international peace and security. So the "big five" were given
a special voting power known as the “right to veto”. The drafters agreed that
if any one of the “big five” cast a negative vote in the 15-member Security
Council, the resolution or decision would not be approved.
The Security Council investigates any dispute or situation which might lead
to international conflict, recommends methods and terms of the settlement,
maintains international peace and security, makes decisions on mobilisation
peacekeeping forces, and imposing blockades on a country.

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Representation in the Temporary Members of the
Security Council

Regions Members
African and Asian states 5
Eastern European states 1
Latin American states 2
Western European and other states 2
Total 10

(3) The Economic and Social Council (ECOSOC)

The Economic and Social Council is the forum to discuss economic problems,
such as trade, transport, economic development, and social issues. It also
helps countries reach an agreement on how to improve education and health
conditions and to promote respect for and observance of universal human
rights and freedoms of people everywhere. The Council has 54 members
who serve for three-year terms.

(4) The Trusteeship Council

In 1945 AD, when the United Nations was established, there were eleven
territories (mostly in Africa and in the Pacific Ocean) that were placed
under international supervision. The major goals of the Trusteeship System
were to promote the progress of the inhabitants of Trust Territories and
their progressive development towards self-government or independence.
The Council has formally suspended operations since 1994 AD since the last
trust territory — Palau achieved self-government. It will meet only as the
need arises.

(5) The International Court of Justice

The International Court of Justice (ICJ) was established in 1946 as the main
UN organ for handing down legal judgments. The Court sits at the Peace
Palace in The Hague, Netherlands. It has fifteen judges who are elected by
the General Assembly and the Security Council. No two judges can come
from the same country. Nine judges have to agree before a decision can be
made. All the judgments passed by the Court are final and without appeal.

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(6) The Secretariat

The head of the Secretariat is the Security-General. It consists of an
international staff working at the United Nations Headquarters in New York
and all over the world. It carries out the day-to-day work of the organisation.
The Secretariat is responsible for servicing the other organs of the United
Nations and administering the programmes and policies laid down by them.

Glossary

warship : a ship used in war
mechanism
: a process or system that is used to produce a particular
blockade result

suspend : an act of war in which one country uses ships to stop people
appeal or supplies from entering or leaving another country

: to make something invalid or ineffective

: a process in which a decision is studied and accepted or
rejected by a higher court or by someone in authority

ACTIVITIES

(1) Divide the class into six groups and make each group present on
one of the organs of the United Nations Organisation, including
its composition and functions. Let the leader of the group
present it in front of the class.

(2) Find any two pieces of news about the organs or functions of
the United Nations and paste them on the notice board of your
school.

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EXERCISE

(1) Give very short answers to the following questions.
(a) Introduce United Nations in a sentence.
(b) What is Atlantic Charter?
(c) When was United Nations established?
(d) How many member nations does United Nation have at present?
(e) Where is the headquarters of the United Nations?
(f) What type of organisation was the League of Nations?
(g) What is a veto?
(h) Which is the legislative body of the United Nations?
(i) Name the five permanent members of the United Nations Security
Council.
(j) What is the major function of the International Court of Justice?
(k) Which organ of the United Nations has formally suspended its
service at present?
(l) Who is the current Secretary-General of the United Nations?

(2) Write short answers to the following questions.
(a) Write the history behind the establishment of the United Nations in
brief.
(b) What are the aims and main purposes of the United Nations?
Mention them.
(c) What are the six main organs of the United Nations? Mention a
major function of each organ.
(d) Give a brief introduction to the right to veto. Which nations hold
this right?
(e) Compose a dialogue between two friends discussing the functions
of the United Nations.

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Lesson

81..31 United Nations and Nepal

Nepal obtained the membership of the United Nations on 14 December 1955
AD. There has been active participation and contribution of Nepal in the
United Nations ever since Nepal obtained the membership. The Constitution
of Nepal also states that Nepal will conduct its foreign policy based on the UN
Charter. Nepal has been participating in many programmes of the United
Nations after becoming its member. It has been playing an active role in
maintaining international peace and security and expanding economic and
social development.
Nepal has been consistently supporting the
United Nations in its efforts to establish
international peace and security. Nepal Army
and police personnel worked as peacekeepers
in various countries like Lebanon, Kuwait,
Haiti, Israel, Somalia, Iraq, Congo, Cyprus,
Ethiopia, Burundi, Sudan, Morocco, Lybia,
Syria, Yemen, and so on. Peacekeepers are
members of a military force who have been sent to help stop people fighting
in a place where there is a war or violence. In fact, Nepal ranks fourth in
the world as a troop-contributing country. Many Nepal Army and police
personnel have lost their lives while working as UN peacekeepers. Thus, the
Nepali Army and Police have garnered international praise for their work
as the United Nations Peacekeeping Force.
Nepal has expressed its commitment by signing conventions and declarations
that the United Nations passed or issued. Nepal has been supporting the
United Nations on ending terrorism and disarmament of all weapons of mass
destruction. Nepal has also participated in various plans and programme
put forward by the United Nations and its specialised agencies in the field of
economic and social development. It has been conducting various programme
in collaboration with various donor organisations to achieve the Millennium
Development Goals. It has been drawing the attention of the international
community to solve the problems created by natural disasters and conflicts
in underdeveloped and developing countries.
Many specialised agencies of the United Nations such as the World Food

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Programme (WFP), the International Labour Organisation (ILO), the United
Nations Children's Fund (UNICEF), the United Nations Development
Program (UNDP), the United Nations Educational, Scientific and Cultural
Organisation (UNESCO), the World Health Organisation (WHO) and the
United Nations Population Fund (UNFPA) has been conducting various
programmes in our country. Nepal has served as the Vice President of
United National Organisations in 1958, 1967, 1970, 1974, 1983, 1988, and
2001 AD.
At the request of the Government of Nepal, the United Nations Mission
in Nepal (UNMIN) came to Nepal. The UNMIN was established after the
government of Nepal and the Maoist leaders requested the United Nations
on 9 August 2006 to assist in creating a free and fair atmosphere for election
to a constituent assembly and the entire peace process. It contributed to bring
the peace process to a successful conclusion and to create an environment
conducive to free and fair Constituent Assembly elections. In particular,
it mediated arms management in Nepal's peace process and oversaw the
Constituent Assembly. It has fulfilled its responsibility and even returned.
Nepal has also served as the vice-chairperson of the United Nations
Commission on Disarmament in 2004 AD. Nepal has served twice as a non-
permanent member of the United Nations Security Council from 1969 AD to
1970 AD and from 1988 AD to 1989 AD. During that period, Nepal has played
an important role in resolving international disputes. The Nepali delegation
led by the Heads of Government has participated in and addressed the UN
General Assembly at various times. Similarly, the Secretary-General of the
United Nations has also visited Nepal at different times. In this way, Nepal
has been an honorary member of the United Nations.

Glossary

garnered : got or received something wanted or valued
disarmament
: the process of reducing the number of weapons controlled
collaboration by a country's military

conducive : the act of working with another person or group of people
to create or produce something
delegation
: making it easy, possible, or likely for something to happen
or exist

: a group of people who represent a country

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ACTIVITIES

(1) Divide the class into different groups and make each group
conduct research on the specialised agencies of the United
Nations in Nepal. Let the group leader present its major
contributions in the class.

(2) Compile various news and articles broadcasted and published
on radio, television, newspapers, magazines, and the internet
about the United Nations and read them in class.

EXERCISE

(1) Identify the following specialised agencies of the United Nations
with the help of the following descriptions.

World Food Programme International United Nations Children’s Fund
United Nations Labour United Nations Educational,
Development Scientific and Cultural
Programme Organisation Organisation
World Health
Organisation

(a) It is a department of the United Nations whose aim is to improve
children's health and education, especially in poor countries.

..........................................................

(b) It is a part of the United Nations whose aim is to protect the rights
and improve the working conditions of employees all over the
world. It is the first specialised agency of the United Nations. It was
awarded the Nobel Prize for Peace in 1969 AD for its activities.

..........................................................

(c) It is responsible for helping governments of various nations to

improve their health services and limit the spread of diseases. It

helps various countries improve their people’s health by giving

medicines and providing information and education about diseases

and immunisation. ..........................................................

(d) It is the world’s largest humanitarian organisation. It fights hunger

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worldwide. It works worldwide to ensure that no child goes to
bed hungry and that the poorest and most vulnerable, particularly
women and children, can access the nutritious food they need.

..........................................................

(e) It promotes international cooperation and facilitates the exchange

of information in the fields of education, science, culture and

communications. ..........................................................

(f) It helps countries eliminate poverty and achieve sustainable human
development. It works with local inhabitants to find their own
solutions to global and national development challenges.

..........................................................

(2) Offer very short answers to the following questions.

(a) When did Nepal obtain the membership of the United Nations?

(b) Who are peacekeepers?

(c) Name any four countries where the Nepali military force has worked
as a peacekeeping force.

(d) Introduce National Human Rights Commission in a sentence.

(e) Write the full forms of UNICEF and UNESCO.

(f) Name any four specialised agencies of the United Nations that have
been working in Nepal.

(g) Write the full form of UNMIN and UNFPA.

(3) Write short answers to the following questions.

(a) How has Nepal supported the United Nations in its effort to establish
international peace and security? Mention in points.

(b) How has United Nations contributed to the economic and social
development of our country? State with examples.

(c) Explain the role of UNMIN in solving the internal conflict of Nepal.

(d) Name the six specialised agencies of the United Nations that have
been conducting their programmes in Nepal with a function of each
of them,

(e) Compose a dialogue between two friends talking about what the
situation of the world would have been without organisations like
the United Nations.

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Lesson

81..41 Diplomatic Mission

Diplomatic Mission

A diplomatic mission is an organisation in another country that formally
represents a country to develop and expand international relations and
exchange mutual assistance. Our country also has embassies in various
countries to maintain a formal diplomatic relationship with the concerned
countries. Ambassadors are appointed as the head of the embassy and
senior representative of her or his country. According to the Constitution of
Nepal, the President, on the recommendation of the government, appoints
ambassadors to other countries. Nepali civil servants work together to assist
the ambassador in her or his work.

In this way, diplomatic missions represent the government in foreign lands,
such as embassies, consulates, and permanent missions to the United
Nations. Such diplomatic missions are usually located in the capital. The
Ministry of Foreign Affairs arranges staffing and other arrangements for
diplomatic missions.
Just as our country's embassies are abroad, so are the embassies of foreign
nations in Nepal. The embassy consists of the ambassador of the country
concerned and other staff assisting her or him. The formal exchange of
information with foreign countries is done through these embassies. When
Nepalis have to visit any foreign country, they have to get permission from
that country. Such permission is called an entry permit. The embassy issues
such entry permits. Nepal and India have close social and cultural ties for
centuries. Therefore, there is no requirement to obtain a visa for the citizens
of either country to travel to each other’s country.

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