Shubharambha Social book 9 final for CTP 2077

our ancestors are exemplary to us. They had faith in religion and were virtuous.
They were guided by religious belief. They used to live by maintaining social
harmony and religious tolerance. They used to love to preserve and promote art
and culture by constructing religious sites, Pati Pauwa, temple, Gumba etc. The
artistic structures made by our ancestors
are still our pride and identities. The
society was based on agriculture. There
was a trade relation with Tibet. People
used to live in joint family. The distribution
of land was uneven. There were enough
Guthis for social welfare and activities.
The education system was mainly guided
by religious performance and practices. Religious trusts, temples, gurukul and
gumbas were the main centres for education. Sanskrit language was recognized
as royal language during ancient period. Newari and Maithili languages were also
very popular in the country during Medieval Period. They used to observe festivals
on the basis of religion and ability. People used to wear clothes of domestic
product such as Dhaka Topi, Daura Suruwal (Male), Gunyu Choli, Ghalek
(Female) etc.

Judicial System

In the ancient period, the judicial system was based
on religions practised in the society. The laws used to
be formed and implemented according to the religion.
There was no fair judicial system because the nature
of punishment was based on caste and religion. Ram
Shah, the king of Gorkha abolished this judicial system
and started fair judicial system in his country. There
was even a usage to give clearance to accused person by
swearing gods and goddesses. There were various posts
to decide the criminal cases. Decentralized judicial
system used to be practised. Panchasamuchchaya used
to solve the local disputes. Dware (to look after local
quarrel), Pradhan (to look after Tole), Khardar (to give
justice visiting the whole country) used to be appointed to solve the disputes and
other criminal cases.

Our Past (Historical Studies) 301

virtuous : showing high moral standards Glossary

Evaluation Exercises

1. Activities
a. Conduct an oratory program on “Positive and negative aspects of
tradition, norms and culture developed by our ancestors” in the class.
b. Explore the festival and ways of celebration developed by our ancestors.

2. Very short answer questions
a. Name the three periods of Nepalese history.
b. What do you mean by exchange of labour and goods?
c. Name the castes based on Hindu religion.

3. Short answer questions
a. “Our ancestors are our pride”. Justify it with examples.
b. Describe the judicial system of our past.
c. How were the cultures transformed from one generation to next?
d. What is culture? Why is it important?
e. What do we learn from our ancestors?

4. Long answer question
a. Why do you think that our ancestors are our guides? Explain on the
basis of the various systems developed by our ancestors.

Community Work

a. Visit a religious site or museum and collect various information about our
ancestors. Write a report based on your findings and present in the class.

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Revision Exercise

a. Write any four sources of history and explain them in brief.
b. Highlight the importance of history of Shakya dynasty in the history of

Nepal.
c. Why were the Gorkhali defeated in the first battle of Nuwakot? How did

they achieve victory ober it finally?
d. What were the various obstacles faced by Prithivi Narayan Shah during his

unification campaign? How did he solve them? explain in brief.
e. What are the effects of unification campaign on Nepal? Explain one of them.
f. Mention the consequences of Anglo-Nepal war?
g. Why did British want to colonize Nepal?
h. Write the contributions of out great warriors to protect the nation, nationality

and sovereignty.
i. What are the causes of the downfall of Rana rule? Explain and three of them.
j. Why did C class Ranas involved in Anti-Rana rule?
k. Highlight the tole of Junga Bahadur Rana to bring reforms in Nepalese

society.
l. Write a paragraph on the social achievements of Rana regime.
m. Why is Rana rule considered a 'Dark Age' Mention the reasons.
n. How did industrial revolution promote agriculture? Give your reasons.
o. Describe the importance of genealogy.
p. What is culture? Why it is important? Explain.

Our Past (Historical Studies) 303

8Unit

Our Economic
Activity

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Contents of the Unit

‰‰ Agriculture
‰‰ Modern Farming System
‰‰ Commercial Farming in Nepal
‰‰ Industries
‰‰ Importance and problems of Medium and Large Scale Industries
‰‰ Trade
‰‰ Foreign Trade
‰‰ Trade Diversification in Nepal
‰‰ Promotion of Trade and Marketing
‰‰ Interrelationship among Agriculture, Industry and Trade
‰‰ Economic Planning
‰‰ Role of Economic Plan in Poverty Alleviation and Promotion of Employment
‰‰ Entrepreneurship
‰‰ Labor
‰‰ Creation of Work and Its Management

Expected Competency

‰‰ define agriculture, industry and trade and explain their importance,
‰‰ explain agriculture is the main source of national income in Nepal,
‰‰ point out the problems of agriculture in Nepal and their solutions,
‰‰ show the relationship between agriculture, industry and trade,
‰‰ know the importance of modernization and commercialization of agriculture,
‰‰ differentiate between large and medium scale industries,
‰‰ highlight the problems of foreign trade and their solution,
‰‰ explain about the economic planning and its contribution in poverty alleviation

and employment promotion,
‰‰ describe labour, its types, importance and respect labour.

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Lesson Agriculture

1

Agriculture refers to the occupation related to cultivation of land, raising crops,
feeding, breeding, rearing livestock and fishery. Agriculture is related to the
cultivation of plants, animals and life forms for food, fiber, bio-fuel, to sustain and
enhance human life. The word agriculture is a Latin word of ‘agricultura’ from
ager ‘field’ and ‘cultura’ means cultivation or growing. In this regard, agriculture
is the process of growing crops. In Nepal, it is considered to be important basis
for the development of industries. Majority people in the world follow agriculture
as their chief economic activity. Agriculture has been main economic activity of
people for a long period of time. Agriculture practices were started from Ancient
Egypt.

Types of Agriculture

Agriculture is one of the most widespread activities in the world, but it does
not have uniformity throughout world. There are a number of ways to classify
agriculture, some of the major criteria which can be adopted are crop and
livestock combinations, intensity of farming, means and ways of disposal of the
farm products, the level of farm mechanization etc. including the scale of farming.
The following are the major types of agriculture in the world:

Nomadic Herding

This is based upon the rearing of
animals on natural pastures and it is
practiced by the people of the semi
arid and arid regions. They move with
their animals in search of natural
pastures and have nomadic life.
Nomadic herding differs from one
region to the other. Northern Africa,
parts of Arabia and parts of northern

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Eurasia are the typical regions of this type of farming. This is a subsistence type
of activity.

Livestock Ranching

Under this system emphasis is laid on animals
rearing but the farmers live a settled life. This type
of farming has developed on a commercial basis
in those places where large areas are available
for animal grazing, such as the low rainfall areas
of North America, South America and Australia.
Animals are reared mainly for meat and wool. They
are kept on large scale farms called the ranches.

Shifting Cultivation

This is the type of farming adopted generally in
the tropical region of East Asia. Under this system
the land for cultivation is obtained by clearing
the forests with the help of slashing and burning
technique. It is cultivated for a few years till the
fertility declines or the land is overtaken by the
weeds etc. Then the land is abandoned, a new
plot is cleared for farming. This is a subsistence
type of farming done manually with nominal use
of animal power or other types of power. Major emphasis is on the grain crops.
This type of farming is now on a decline due to its land spoiling nature and it is
discouraged by the government agencies.

Rudimentary Sedentary Tillage

This is also a subsistence type of activity and it differs from the foregoing type in
terms of the fact that the same plot of land is cultivated continuously year after
year. Fallowing of land is commonly adopted to maintain the soil fertility and it
is also a farming type of the tropical regions. Besides the grain crops, some tree
crops such rubber are also grown under this system.

Intensive Subsistences Farming

This type of farming is practiced in the areas
of tropical regions having a high density of
population and receiving a large amount of
precipitation. Rice is the dominant crop as to

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feed a large number of people. Southeast Asian region is the major area of this
type of farming. Use of manual and animal power is chief features and effort is
made to enhance the productivity with the use of manures etc. This is a slightly
dry climatic variant of the foregoing type and as the amount of rainfall is not very
high. These regions grow grain crops other than rice, such as wheat and millets.
Besides the less wet areas of Asia, northern Africa and the parts of Middle East,
this type of farming is commonly practiced.

Commercial Plantations

This type of farming is quite important in
terms of its commercial value though it
is practiced over a rather small area. The
major products of this type of farming
are the tropical crops such as tea, coffee,
rubber and oil palm etc. This type of
farming has developed in parts of Asia, Africa and Latin America where the
influence of the Europeans has been important during the colonial period. This is
a highly capital intensive farming and most of the crops are tree crops.

Dairy Farming

This type also had its origin in Europe
from where it spread to other areas.
Closeness to the market and a temperate
climate are the two favourable factors
which have been responsible for the
development of this type of farming.
Countries like Denmark and Sweden have
witnessed the maximum development of
this type of farming.

Agriculture in Nepal

Traditional farming is the method of farming where agriculture is carried out
by using traditional tools and techniques. In Nepal, majority farmers follow the
traditional farming system.

Importance of Agriculture in Nepal

Agriculture in Nepal appears to be very important. Agriculture feeds us supplying
with daily needs. The development of the country depends upon agricultural
upliftment. Nepal has more villages than towns. Most of the people live in villages.

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They depend on agriculture, which is the backbone of the economic development
of a country. It supplies us with necessary goods for our survival. The development
may not gear up its pace rather crawls if the country has to import food from
other countries. Besides, its money goes away as the result of which the
development pace becomes very slow. If we can produce more crops, vegetables
and fruits than we need, we can export them to other countries to earn foreign
currency. Thus, agricultural development provides people daily needs, increase
exports and decrease imports. More than 65% of the people in Nepal are employed
in agricultural sector. If we can develop it properly, the problem of unemployment
will be solved. It provides raw materials to agro-based industries. Furthermore,
some raw materials for cottage industries can be provided from agriculture. Thus,
agricultural development in Nepal is very important to provide daily needs to the
people, increase exports, cut down imports, solve the problem of unemployment
and to provide raw materials to agro-based industries. The development of the
country depends on the agricultural development. The government and concern
sectors should give the top-most priority to agricultural development.

We can get our food from Importance of Agriculture.
agriculture. We can get
fresh crops, vegetables, ‰‰ It is the main source of national income.
fruits etc. from our farms.
‰‰ It is the source of foodstuff for human
beings including animals and birds.

But in our country, ‰‰ Agro-based industries get raw materials
agricultural development from agriculture.

has not been given high ‰‰ It is a source of earning foreign

priority. Most of the farmers currencies.

apply traditional methods ‰‰ It creates employment opportunities.

of farming because most of ‰‰ It is the backbone of the economic

them are not well-trained development.

and educated. Some of the

farmers who are trained and apply modern methods obtain more benefits. The

facilities of irrigation, modern-fertilizers, improved seeds and safe storage etc.

are not available. Besides, unequal distribution of land, lack of proper market,

lack of capital, lack of agricultural tools and subsistence farming are some of the

major problems of agriculture in Nepal.

Since agriculture plays vital role in economic development of our country, the
problems should be addressed in time so that expected development of our

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country can be maintained. Some of the measures to be adopted to improve
agriculture are as below:

‰‰ Equal distribution of land,
‰‰ Peasants should be given trainings to use new technology, fertilizers and

improved seeds,
‰‰ Expansion of market and good price for agro-products should be ensured,
‰‰ Irrigation facilities to be extended so that more arable land can be cultivated,
‰‰ Subsidy on fertilizer, seeds and other agricultural tools to farmers,
‰‰ Commercialization of agriculture,
‰‰ Proper plans and policies should be made,
‰‰ Fragmentation of land should be discouraged.

Glossary

pastures : land cover with grass, suitable for grazing animals
arid : too dry or barren to support vegetation
nomadic : wandering, mobile
subsistence : the action of supporting oneself at a minimum level
ranches : a large farm, especially in the western US and Canada,

where animals are bred and raised
precipitation : rainfall

Community Work

a. List out the major crops with specific reason for producing in given table:

Crops Reason for production

b. Nepal is the agricultural country where majority people are involved in
agriculture but it is still subsistence. Find out the reasons and its solutions.

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Evaluation Exercises

1. Answer the following questions:
a. Define agriculture.
b. Discuss the different types of agricultural system which are practiced
in the world.
c. What type of farming system is followed in your locality? Discuss its
present state.
d. Differentiate between cash crops and food crops in four points.
e. List out the food crops and cash products in your locality.
f. Discuss the importance of agriculture with reference to Nepal and
explain in brief.
g. What are the problems in agriculture system of Nepal? Write its
solutions.

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Lesson Modern Farming
System
2

In this type of agricultural practice, the output is not meant for consumption
at the local level only. Usually it involves the production of a large surplus for
export. In commercial farming, the farmer cultivates crops and rears animals for
commercial purposes, i.e., for selling. The main motive of the farmer here is to
make profit. Most of the work is done by machines in area under cultivation; the
capital involved is huge in modern farming system. Commercial farming includes
commercial grain farming, plantations and mixed farming.

There are two types commercial grain farming- 

1 Extensive commercial grain farming 
2 Intensive commercial grain farming

Intensive Farming

Intensive farming or intensive agriculture is
also known as industrial agriculture. It is
characterized by higher use of inputs such
as  capital and labour per unit land area. It
opposes to traditional agriculture in which the
inputs per unit land are lower. Intensive crop
agriculture features innovations designed to
increase yield. Techniques include planting
multiple crops per year, reducing the frequency
of uncultivated years and improving cultivars. It also involves increased use
of fertilizers, plant growth regulators, pesticides and mechanization, controlled
by increased and more detailed analysis of growing conditions, including weather,
soil, water, weeds and pests.

This system is supported by advancing innovation  in agricultural machinery
and farming methods,  genetic technology, techniques for achieving  economies
of scale, logistics and data collection and analysis technology. Intensive farms
are widespread in  developed nations  and increasingly prevalent worldwide.
Most of the meat, dairy, eggs, fruits and vegetables available in supermarkets are
produced by such farms.

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Smaller intensive farms usually include higher inputs of labour and more often use
sustainable intensive methods. These farms are less in number, but are growing
more rapidly. Most of the food available in market is produced by these small-
holder farms. Crops cultivation is done using small amounts of labour and capital
in relation to area of land being farmed. The crop yield in extensive agriculture
depends primarily on the natural fertility of the soil, terrain, climate, and the
availability of water.

Extensive Farming

Extensive farming or extensive agriculture is an
agricultural production system that uses small
inputs of labour, fertilizers, and capital, relative
to the land area being farmed.

Extensive farming most commonly refers to sheep
and cattle farming in areas with low agricultural
productivity, but can also refer to large-scale
growing of wheat, barley and other grain crops in
areas like the Murray-Darling Basin. Here, owing to the extreme age and poverty
of the soils, yields per hectare are very low, but the flat terrain and very large farm
sizes mean yields per unit of labour are high. Nomadic herding is an extreme
example of extensive farming, where herders move their animals to use feed from
occasional rainfalls.

Advantages of Extensive Farming

‰‰ Less labour per unit areas is required to farm large areas, especially since
expensive alterations to land (like terracing) are completely absent.

‰‰ Mechanization can be used more effectively over large, flat areas.
‰‰ Greater efficiency of labour means generally lower product prices.
‰‰ Animal welfare is generally improved because animals are not kept in stifling

conditions.
‰‰ Lower requirements of inputs such as fertilizers.
‰‰ If animals are grazed on pastures native to the locality, there is less likely to

be problems with exotic species.
‰‰ Local environment and soil are not damaged by overuse of chemicals.
‰‰ The use of machinery and scientific methods of farming produce a large

quantity of crops

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Modern Farming

Modern farming is the best way
to grow more food utilizing the
modern farming technology.
Increasing popularity of modern
farming is not only the boon but
also a curse as it damages the
ecological cycle due to the use
of chemical fertilizer, pesticides,
gas on machine that pollutes
water, decrease the production capacity of soil etc. Modern farming leaves many
negative impacts on environment and human health.

Organic Farming

Researchers recently developed
the organic farming techniques
to minimize the negative
impact of modern farming. It
is very similar to  traditional
farming  that produces crops
ecologically that plays the vital
role to minimize the negative
impact on environment and
human beings. Farmers of
developed and developing countries have started to practise organic farming with
the slogans of go green or return back to the nature. Organic farming techniques
avoid the use of synthetic and harmful pesticides, fertilizers, growth regulators
and livestock feed additives. Organic Farm Nepal is promoting organic farming
techniques amongst farmers including its environmental, health benefits. Main
principles of sustainable agriculture  are organic seed, sustainable cultivation,
sustainable care and sustainable harvesting.  Organic farming  is the fusion of
ancient farming and modern farming techniques.

Method of modern farming system

1 Diversification in crops
2 Modern agricultural system and use of technology
3 Provision of loans

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4 Commercialization of agriculture

5 New experiment

6 Irrigation facilities

7 Training and education

Glossary

intensive : concentrated on a single area or a subject

innovation : the action of innovating

cultivar : a plant variety

genetic : relating to genes or heredity

Evaluation Exercises

a. Differentiate between intensive and extensive farming system.

b. What do you understand by modern agricultural system?

c. How can we modernize the agriculture? Present some concrete steps.

d. The agriculture system in Nepal is not developed properly. Give the reasons.

e. Enlist the advantages that Nepalese farmers can gain by using modern
agricultural technology.

f. What sorts of steps do the government has to undertake to modernize the
agriculture.

g. List out the advantages of extensive farming system and discuss in the
classroom.

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Lesson Commercial Farming
in Nepal
3

Nepal is an agricultural country
where majority people are
involvedinagriculture.Nepalese
agriculture is survival type
rather than commercialized.
Due to illiteracy and traditional
farming system, productivity
of agricultural sector is low
in Nepal. People use manual
power and depend on rainfall due to lack of irrigation facilities. Farmers do
not give priority to modern agricultural tools and techniques. Very recently the
trend of producing varieties of goods for selling purpose is developed. We are
becoming independent in fruits, vegetables, meat products, dairy products, etc.
Large number of youths is fleeing abroad in one hand and they are attracted to
the jobs rather than labourer activities on the other. In developed countries, less
people are involved in agriculture sector but there is high yield due to extensive
farming system. So, we have to change our mentality of searching jobs and better
to start our own business to be self-reliant. We have enough productive lands
but not properly utilized. So the government should formulate the policies to use
barren land also. We have to use the skill and knowledge of youths returning from
abroad.

Modern farming has increased the productivity of the cultivable land. It helps
to maintain the fertility of soil by using machines and technology. It also assists
to create soil conditions appropriate for plant growth with minimal soil loss,
drought and other threats. The use of improved genetics enhances yields, quality

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and consistency. It features effective irrigation, harvesting, handling of storage
equipments and techniques to prevent losses.

The quantity is a major concern. However, the quality of new agricultural product
cannot be completely subdued. The use of science and modern technology to
produce hybrid seeds, pesticides and fertilizers has increased the agricultural
productivity but the nutrition value of such food is decreased in comparison to
the traditionally grown crops. The major problems are created by fertilizers and
pesticides which have long term effects on fertility of soil and consumers health.
Many fertilizers create disturbance in ecosystem as well. Also, the production of
crops like corn, rice and wheat is increased by the introduction of biotechnological
advancement in seed production and growth.

Advantages

1 Firstly, the production can be specified.
2 Crop protection is achieved by the use of pesticides, herbicides, insecticides,

etc.
3 Biotechnological products help to control thousands of weed species,

harmful insects and numerous plant diseases that trouble crops.
4 Soil can be made more fertile by adding soil nutrition after analysis of the

soil and suitability for seeds/crop for maximum yield.
5 Scientific and modern technology helps in better agricultural inputs and

outputs.
6 Modern storage & transportation facilities help to reduce wastages. Manual

labour can be reduced with the use of modern machinery and mechanization
for ploughing, levelling, harvesting, spraying, irrigating the land.

Disadvantages:

1 Use of fertilizers & pesticides can affect the health of the workers and
consumers too. Due to the use of synthetic fertilizers and pesticides,
agriculture products are getting contaminated and unhealthy. These kinds
of chemical inputs severely affect the ecosystem.

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2 Unmanaged use of fertilizers kills useful insects and the crops. It causes
an imbalance of the natural habitat of most wild creatures and leads to soil
erosion.

3 The use of inorganic farming techniques causes the decline of soil condition
and the problem of producing contaminated crops.

4 Due to use of chemical fertilizer, the production is high but the quality of
crops gets deteriorated.

5 The use of chemical in agriculture has been increasing which has been
decreasing the quality of our food.

6 It has direct effect on climatic change and global warming.
In Nepal, modern farming has been implemented for the development of
agriculture. Previously, the farmers used hard labour but they were not able to
improve their quality of living hence had miserable lives. Now they have started
using chemical fertilizers and pesticides for increasing production. Still there are
various places in Nepal which are out of the reach of these chemical inputs due to
lack of transportation facility.

Glossary

biotechnology : the genetic manipulation of microorganisms for the
production of antibiotics

synthetic : artificial

Evaluation Exercises

a. What do you mean by commercialization of agriculture?
b. Enlist the significance of commercialization in agriculture.
c. List out the pros and cons of commercialization of agriculture.
d. State the story of commercial farming which is practiced in your locality.

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Lesson Industries

4

Industry is the process of producing  goods or services  within an economy. 
Manufacturing industry became a key sector of production and labour
in  European  and  North American countries during the Industrial Revolution,
upsetting previous mercantile and feudal economies. This occurred through many
successive rapid advances in technology, such as the production of steel and coal.

The contribution of industry in the economy of Nepal is very significant. Industry
contributes to the national income; it provides employment opportunities to the
unemployed people. Above all, it makes the country self-dependent. According
to the industrial Policy, 2067 BS, industries in Nepal have been classified on the
basis of capitals in the following way:

1 Small Scale Industries: Industries employing a less number of people and
investing capital up to one 5 crore rupees, are called small scale industries.

2 Medium Scale Industries: Industries having fixed capital between 5 to
15 crores rupees, are medium scale Industries.

3 Large Scale Industries: Industries which have their fixed capital more
than 15 crore rupees and employ a large number of labours are known as
large-scale industries.

Cottage and Small Scale Industry

Those industries which are labor intensive
and related to country’s tradition, art and
culture are called cottage industries. These
industries use local means, resources, and
skills. According to Industrial act of Nepal
“the industries having fixed investment up to
50 million except cottage industries are called
small scale industries”.

Importance of Cottage and Small scale industries:

The cottage and small scale industries play an important role in the process of

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economic development of developing countries like Nepal. The importance of
cottage and small scale industries are as follows:

Easy to establish
Cottage and small-scale industries are easy to establish and run by single
households with their own capital, raw materials and skills.

Increase employment opportunities:
The development of cottage and small scale industries create employment
opportunity. It helps farmers to earn extra income.

Basis of the development of large industries:
Cottage and small scale industries are the foundation of large scale industries.
The development of these industries increases the income and purchasing power
of people. This helps to develop large scale industries.

Use of local resources:
Various types of raw materials are available in different places of the country,
which are also called local resources. Cottage and small scale industries can help
in the maximum utilization of such available local resources.

Preservation of art and culture:
The cottage and small scale industries play an important role in preserving
traditional art, culture and skills. It has helped to introduce Nepalese art and its
tradition and culture in different countries in the world.

Source of foreign exchange:
It is the major source of foreign exchange. Goods produced by the cottage and
small scale industries of Nepal such as ready made garments, handicrafts, woollen
carpets, etc. have good market in abroad.

Source of National income:
Cottage and small industries play an important role in increasing national income.
These industries provide more employment opportunities which leads to increase
per capital income of the people.
Problems of cottage and small-scale industries in Nepal
There are various problems of cottage and small-scale industries which are as
follows:

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Lack of capital:
Majority of Nepalese people are poor. They have low capacity to save and invest.
Due to lack of capital, cottage and small-scale industries are not flourished in
Nepal.
Lack of raw materials:
The raw materials needed for cottage and small-scale industries aren’t timely and
adequately available. The available raw materials are inferior in quality. Thus,
these industries are running below their capacity and producing low quality
products.
Problem of transportation:
The transportation facilities are essential for the development of cottage and
small-scale industries. But, there is lack of transport and communication facilities
in hilly areas of Nepal.
Limited market:
The size of National market is small and the purchasing power of people is low.
So, the market for industrial products is limited.
Primitive technology:
The production techniques of cottage and small scale industries are very primitive.
The entrepreneurs of these industries are uneducated, unskilled and untrained.
Thus, the goods produced from these industries are of inferior quality.
Lack of protection policy:
Every country has to adopt a protection policy for the development of cottage and
small scale industries. But there is lack of protection policy in Nepal. Therefore,
these industries are unable to compete with large scale industries.
Possibilities of Small Scale Industries
Nepal has abundant resources but the utility of the same is not up to the mark.
Agro-based materials supersede other. The labour required is also easily available.
A large number of youths who have returned from abroad are eager to employ
the skills they learnt there. In this regard the small and cottage industries which
can be operated with low investment, local skill and technology have plenty of
potentialities in Nepal.

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upsetting : disappointing Glossary

inferior : lower in rank, status or quality

entrepreneur : a person who organizes and operates a business or

businesses

supersede : take the place of something previously in use

Evaluation Exercises

a. List out the small scale industries operated in your locality.

b. What sorts of goods are produced by small scale industries which are
established in your surroundings? List them in table.

c. Define industries according to Industrial policy, 2067.

d. Discuss the types of industries in Nepal according to Industrial ploicy, 2067.

e. How do small scale industries support in income generating activities in
local level?

f. What are the obstacles for development of small scale industries in Nepal?

g. Write a letter to your friend including the possibilities of small scale
industries in Nepal.

h. There is great potentiality of development of small scale and cottage
industry. How?

Community Work

Visit the local small scale industries and collect the information about the
resources used there, manpower and market. Present it as a form of report.

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Lesson Importance and Problems of
Medium and Large Scale Industries
5

Introduction

The industries which are established
with the large capital investment
are called medium and large scale
industries. The industries having fixed
investment of more than five crore
to 15 crore are called medium scale
industries. The industries having fixed
investment of more than 15 crore can be
regarded as large scale industries. Both
of these aim at producing standardized
goods with larger volume. These industries use skilful and proficient human
resources and make wide use of modern technology. In Nepal, the establishment
of industries started during the period of Rana PM Jhuda Shumsher. However,
the first of this category of industries was set up in Biratnagar in 1993 BS. At
present several large and medium scale industries are being operated in our
country. They include sugar, cement, Iron, Steel, Jute, paper, cigarette, tea, Brick,
soap, biscuit, noodles, etc.

Medium and large scale industries can play significant role to strengthen the
economy of a country. The major roles of medium and large scale industries are
presented below:

1 Backbone of economic development: These industries serve as the pillar of
the economic development. In fact, the industrial revolution can gain its
significance only in the presence of these industries.

2 Improving the standard of living: It is free from the arguments that these
industries enhance employment opportunities which in turn raise the
standard of the respective population.

3 Source of national income: Along with the small-scale industries, these
industries assist to enhance the national productivity. The government
receives revenue in the form of customs duty, VAT, fees, etc.

4 Employment Opportunities: The majority of people of Nepal still depend
upon agriculture. This sector provides seasonal employment. As a result,

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about 1500 youths emigrate to aboard every day. Hence, the establishment
of these industries creates employment opportunities and engages the
fleeing population.

5 Utilization of resources: Nepal prides in its natural resources. The
establishment of such industries will promote the usage and mobilization
of such resources.

6 Increment of export: These industries help in reducing imports of both
consumer and capital goods from other countries and also promote exports.

In addition, they help to modernize the agricultural sector to develop infrastructure
and to make the country economically independent.

There are some problems faced by these industries in the context of Nepal. They
are enlisted below:

1 Lack of infrastructure: The infrastructures including transportation,
communication, electricity, banking, insurance, etc. are yet to see the
optimistic development in our country. This obstructs the development of
medium and large scale industries

2 Lack of capital: Lack of capital serves as the principal burden for the
industrial development in Nepal. One has to invest large sum of capital to
set up medium and large scale industries. Our country neither has ample
entrepreneurs who owe large investment capacity or will power nor can we
attract foreign investments.

3 Lack of technical manpower: We do not have efficient technicians and we
cannot afford the foreign technical exports.

4 Lack of raw material: Nepal does not possess enough raw materials required
including garment, plastic, iron, carpet, etc. As a result, we have to depend
on imports from abroad which are very expensive.

5 Limited market: We lack organized market, well furnished transportation
and systematic telecommunication. The higher price and lower quality of
Nepalese products discourage the international marketers too.

Lack of industrial policies, lack of energy sources like electricity, petroleum, coal
etc., landlocked, open border, lack of basic infrastructures, etc. also hinder the
industrial development of Nepal.

Preventive measures

We can use following measures to solve the above stated problems:

‰‰ Maintenance of encouraging environment for the local and foreign
investment.

‰‰ Development of infrastructure of development

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‰‰ Establishment of finances that provide loan at low limit rate

‰‰ Increment in the production of hydro-electricity
‰‰ Discovery of new market and production of quality goods

‰‰ Prioritizing the generation and use of alternative energy

‰‰ Implementation of industrial policies

Possibilities of Medium and Large Scale Industries in Nepal

Nepal possesses plenty of raw materials which can be utilized in these industries.
We are undoubtedly rich at natural resources including minerals, forest and water
resources. We benefit from the proper mobilization of such resources.

significant : sufficiently great or important Glossary

revolution : a radical and pervasive change in society

revenue : the income of government from taxation

Evaluation Exercises

a. What are medium scale industries?

b. Introduce large scale industries. Enlist some of these industries operating
in your country.

c. Discuss the significance of medium and large scale industries in our context.

d. Why do you think the pace of industrial development in Nepal is not
satisfactory?

e. In what regard the industry serves as the pillar of an economy? Present your
views.

f. Suggest some concrete steps to resolve the problems related to the medium
and large scale industries.

g. Is there any possibility of operating large scale industry in your locality?
How can draw such inference?

h. Prepare a modal of questionnaire to ask an industrialist.

Community Work

Visit a industrial area of your locality, collect the information about its
production process, marketing as well the problems and prepare a report.

Our Economic Activity 325

Lesson Trade

6

When the trade comes into consideration, most of us tend to understand it as an
activity of buying and selling of goods. It is also considered as the transaction of
the goods and the services with the objectives of making profits. So, trade is an
act or process of exchanging goods and services between two or more parties. It
involves the process of transecting or selling the products produced in a particular
place to different parts of the country or abroad. Trade is also considered as the
backbone of economy.

Trade can be categorized into two types on the basis of the areas of the transaction:

1 Internal trade
2 External or international trade

Internal Trade

When the transaction of goods and services take place within a country or nation, it
is termed as ‘Internal Trade’. It is also known as the home trade or domestic trade
where the domestic products are exchanged within the country. For example, the
apples produced in Jumla or cardamom produced in Taplejung is sold all over
Nepal.

The terai region supplies the grain to the hilly region and Himalayan region to
sustain life of the dwellers.

Basically internal trade can be classified into two categories:

1. Wholesale Trade

It is concerned with the transaction of the goods in the large quantity. It
consists of buying goods from the manufacturers, dealers, or producers in
large quantities and sells them in small quantities to retailers or sometimes
even to consumers.

2. Retail Trade

Simply it refers to the sale of goods in small slots to the final consumers.
Retailers buy the products from the wholesalers and sell it to consumers.

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Importance of the Internal Trade

Internal trade plays the vital role to improve the economic status. The role of
internal trade is significant in developing country like Nepal for its economic
prosperity. The role of the internal trade can be explained as follows:

1 It makes goods and services available to the lacking areas.

2 It helps to the reach of the means and resources to the right place.

3 It helps to improve the living standard of the people.

4 It ensures the increment of employment opportunities.

5 It helps to improve the industrial sector.

Foreign Trade/International Trade/External Trade

The trade with the other countries is known
as the foreign trade. The exchange of the
goods and services between the people
of different countries is called foreign
trade. Broadly speaking it is an act of
exchanging the capital goods and services
across international boards or territories.
Since no country is self-sufficient, the
foreign trade or international trade plays a
significant role in the global economy.

Export and the import are the two components of the external trade. If the
product is sold to the global market, it is an export. For instance, Nepal as an
exporter, send tea, carpet and medicinal herbs to international markets. A
product bought from the global market is an import. Importers import goods like
fuel, lubricants, drugs, machinery, etc. The difference between the import and
the export is known as the trade balance. If the import is greater than export, it is
called trade deficit and the trade in which the export is greater than the import is
known as the trade surplus. Nepal’s foreign trade is India centred (60%) which is
obviously connected with the fact that India locks us on the three sides with land.
Since imports dominate over exports, we suffer trade deficit. However, we can
contend with the fact that our foreign trade is expanding across the globe which
was traditionally limited to only India and Tibet. Foreign trade plays significant
roles in the economic development of the country. Some of them are as follows:

1 With the imports of the capital goods and the technology, we can gain
growth in all sectors of the economy including agriculture, industries and
service sector.

Our Economic Activity 327

2 International trade helps to increase government revenue. We can collect
revenue in the form of custom duties and excise duty of importing and
the exporting goods and the services which helps to make strengthen our
economy.

3 We can earn the foreign currency through the export.
4 To meet the demand of international market and growing competition, the

exporters are encouraged to produce and supply standardized and quality
goods.
5 People can have a choice of new and better verities of goods and the services.
6 It helps to extend foreign relationship with other countries.
7 The increment in the foreign trade facilities is the growth of employment
opportunities. It ensures the mobility of labors and resources also.

Glossary

lubricants : a substance used for minimizing friction such as oil or grease
deficit : loss
surplus : extra, additional
contend : lay claim to
excise : a tax levied on certain goods and commodities produced

Evaluation Exercises

a. Define trade and explain its types in brief.
b. Differentiate between internal and external trade.
c. List out the goods exported by Nepal to other countries.
d. Discuss the pros and cons of international trade.
e. What should be done to improve foreign trade of Nepal?
f. List out the imported goods by Nepal.
g. Differentiate between wholesale and retail trade with example.
h. Discuss the reasons of increasing trade deficit in Nepal?

Community Work

i. Identify the goods which are produced locally and internationally
renowned, write a description and present it in the class.

j. Collect the information about the volume of foreign trade of various goods
and present it in bar diagram.

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Lesson Foreign Trade

7

Pattern of Foreign Trade in Nepal

The transaction of goods and services between /among citizens of different
countries is known as foreign trade. As isolated agrarian society until the mid 20th
century, Nepal too has determined to follow the sustainable economic growth and
economic liberalization with the active participation in the global market .The
rapidity was started in foreign trade and advancement of telecommunication
industry and other infrastructures after 1951. In this process, Nepal breaks the
traditional trade relation with China and India and extends its trade beyond
oceans and opposite poles.

Export and import serve as major entities of foreign trade. The composition of
foreign trade includes the items of exports and imports between two countries as
well as to many countries. In this regard, the composition of Nepal’s foreign trade
refers to what shorts of goods are imported into Nepal from abroad and what
sorts of goods are exported abroad from here. The model of exports and imports
of Nepal is briefly discussed below-

Export Pattern

Agriculture remains Nepal’s principal economic activities and we are yet to bring
proven values to industrial advancement. In this regard, must of our exports
are agro-based or half –processed or crude raw materials rather than industrial
products. The principal export items include pulses, medicinal herbs, cardamom,
catechu, woollen goods, Nepalese paper, skins, carpets (hand woven), readymade
garments, ornaments, pashmina, handicraft, jute , ginger etc. These products
acquiesce less currency since most of them are cheap in cost.

Total Export Export (In Rs) Percentage
Export to India 26.17 billion 39.2
Export to China 13.88 billion 66.3
Export to Other Countries 11.81 billion 6.9

Source: Ministry of Finance, 2015

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Import Pattern

Nepal depends on other countries mainly with India for industrial consumers
goods. We will suffer a great crisis in case the supply of the same is interrupted.
The goods of our imports includes the finished items, raw materials for industries,
machinery equipment, chemical fertilizer, petroleum products, cements, drugs,
motor parts etc.

Countries Import (In Rs) Percenatge
Import from India 121.66 Billion 39.2
Import from China 37.19 Billion 14.1
Import from other Countries 54.98 Billion 22.6

Source: Ministry of Finance, 2015

Glossary

liberalization : the removal of restriction on something

acquiesce : be satisfied, be content with

Evaluation Exercises

a. Why do we have the volume of import is high and exports is low? Discuss
among the friends and present it in classroom.

b. Collect the information about imported goods and list them , show it in flow
chart in the classroom.

c. Differentiate between import and export.

d. What is foreign trade? Discuss its advantages and disadvantages.

e. Explain the trend of import and exports by Nepal.

f. Write a letter to the trade promotion centre including the way to improve
condition of foreign trade in Nepal.

g. Justify that present trade policy is not suitable.

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Lesson Trade Diversification in
Nepal
8

Simply ‘diversify’ indicates to bring change in something to introduce variety. It
means to make something diverse or varied. In the economic sense, it refers to
develop a wider range of product or market by adding some varieties to the existing
entity. Trade diversification is the process by which a business offers a range of
different products or services. It opposes specialization in just one product or
entity. In state of being restricted to one place or country, trade diversification
enables us to consider different places or country for the purpose of the trade.
This is good for nation as it reduces the nation reliance on a specific economic
sector. Trade diversification can be carried out in two ways-

‰‰ Region/Country wise diversification
‰‰ Commodity wise diversification

Region/Country-wise Diversification

Region/Country wise diversification means the Region/Country wise
expansion of trade of a product or a country diversification means the
to more geographical areas. It is an action of expansion of trade of a
supplying and selling the goods produced in a product or a country to
region or a country to another region or country. more geographical areas.
It helps in the promotion of trade by minimizing
trade deficit or loss. Goods can be imported or exported from many countries
rather than relying on a particular country.

The trade is likely to yield better fostering the economy of a nation if it can
afford to import or export goods from many countries instead of specializing in
one. Nepal as a landlocked country was dependent almost entirely on India for
trading. Partially, it had trade-ties with Tibet too. Landlockedness, open border,
resemblance in terms of culture, tradition and historical connection with India etc.
are some major factors that contributed to limit our trade. The trade with overseas
was almost nil. Having realized the fact that extravagant trade dependency on our
neighbours prevented us taking from international trade, Nepal started showing
concern about trade diversification from 3rd economic plan. Then Nepal started to
extend its foreign trade to overseas. In this process, Nepal tried to implement this
concept from 2021/2022 BS. Nepal took stiffer principle of trade diversification

Our Economic Activity 331

from 4th five year plan. Nepal has been exporting goods to many countries in the
world and earning foreign currencies nowadays.

The popularity of Nepalese goods grew rapidly in international market. Recently,
Nepal is exporting its products to many other countries in addition to India and
earning foreign currency.

Nepal's Foreign Trade With Different Countries

Country Exports Imports Balance
India 318 576 –258
United States 192 24 168
Germany 106 21 85
Japan 10 41 –31
China (inc. Hong Kong) 7 213 –206
Switzerland 6 143 –137
Singapore 3 113 –110
Koprea 1 39 –38
United Arab Emirates n.a. 28 n.a.
Thiland n.a. 31 n.a.

Commodity-wise Diversification

A country has to concentrate on commodity Commodity-wise

diversification in order to promote its foreign diversification is the

trade. It should not be limited with the process of including

production and sale of few goods only. The different items for export

production of new goods and sale as per the as per the demand of world

demand of the world market will promote the market.

foreign trade. If we see the trend of foreign

trade of Nepal, in the past, Nepal used to export limited goods. However, the

commodity-wise diversification has been found to be increasing these days. Nepal

used to export pulse, maize, wood, rice etc. But nowadays, it has been exporting

readymade garments, carpet, pulses, handicraft, leather, medicinal herbs, paper

products, silver jewellery, tea, cardamom etc. It is the positive symptom of Nepal’s

foreign trade which has contributed to change the direction of trade. However,

more has yet to be done to sparkle the possibilities of betterment.

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resemblance : the state of being alike Glossary

overseas : foreign country, especially one across the sea

extravagant : lacking restraint in spending money or using resources,

wasteful

stiffer : rigid

Evaluation Exercises

a. Visit the local market and collect the goods produced in Nepal.
b. Prepare an article about the trade diversification of Nepal.
c. What is trade diversification?
d. Why do we need tread diversification? Write any four reasons.
e. Discuss the development process and trend of country wise diversification.
f. Compare the import and export item and prepare editorial for national daily.
g. Discuss the condition of Product wise diversification.
h. Explain the possibilities of trade diversification in Nepal.
i. Differentiate between the product wise and country wise diversification.

Community Work

Prepare a report about the importance, problems and solutions of trade
diversification.

Our Economic Activity 333

Lesson Promotion of Trade and
Marketing
9

It is well-evident that Nepal suffers endless trade The advancement of existing
deficit due to dozens of the trading barriers. condition of trade into higher
Needless to mention, our import trade is level is known as trade
continuously bulking while export trade is not promotion.

catching the rhythm yet. In case the government fails to undertake immediate

long term measure to decrease the trade deficit, economic stagnancy continues to

prosper. In this regards, trade diversification has to go close at hand with trade

promotion. Marketing becomes an important aspect of trade promotion. It simply

involves the activity of presenting, advertising and selling the manufactured

products in the best possible way. Moreover, it makes necessary arrangement

for distribution and advertisement of the current products. It is always important

to identify exportable products, increase promotional activities and conduct

market research. We can consider following measures to promote our trade and

marketing:

1 In consideration to overwhelming competition in international and national
market, it is necessary to emphasize in quality production and standardized
goods.

2 Take the measures to diversify the trade both country-wise (search in a new

destination) and commodity-wise (manufacturing newer exportable goods
that includes industrial and agricultural goods)
3 Undertake permanent export policies in collaboration with agriculture and
industrial sector.

4 Carry out the market research to study the demand of the international
market and newer possible destination for Nepalese goods.

5 Arrangement of the labor training and education.
6 The government should undertake all the possible measures to dissuade

different sorts of illegal trade including smuggling black-marketing etc.
caused by the open border with India.
7 Extension of transportation service includes thereby promoting international
free trade. In this regard, the government should appeal for the right of a
land-locked nation such as the use of Indian land to reach sea-routes.
8 The government should formulate and adopt the easy tax policy for trade
promotion and marketing.

9 The region-wise and commodity-wise trade diversification should be
prioritized.

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10 Render due emphasis for the advertisement, publicity and exploration of
export trade industries.

Efforts made by government for promotion and marketing of trade

‰‰ Operating the training to increase the efficiency of the workers,

‰‰ Collecting the statistics of Nepal’s international trade,

‰‰ Publishing trade bulletin,

‰‰ Waging training for women, deprived caste, ethnic groups, backward
community and unemployed youths,

‰‰ Publishing Nepal trade statistics and Nepal’s bilateral trade and transit
agreements,

‰‰ Publishing Nepal expert trade directory,

‰‰ Organizing trade fairs.

bulking : increasing Glossary

stagnancy : stability
collaboration : alliance, partnership

dissuade : discourage from, divert from

exportable : produced for export
overwhelming : so great as to render resistance

Evaluation Exercises

a. How will you manage market of your product if you are entrepreneur?

b. What should be done to promote the market of the product produced in
your locality?

c. List out the activities of Market Promotion Center which is established by
the government.

d. State the importance of trade promotion and marketing.

e. What measures should be followed to promote trade in Nepal?

f. Prepare a news item mentioning the efforts made by government to promote
trade marketing.

Community Work

Suppose you are the producer of consumer goods, prepare a plan to promote
your product in local level and national level.

Our Economic Activity 335

Lesson Interrelationship between
10 Agriculture, Industry and Trade

There is close relationship
between agriculture, industry
and trade. Neither the above
mentioned can operate in absence
of the rest of two. Agriculture is
an indispensable for industrial
growth and development. It
supplied with substantial raw
materials to various industries.
The growth and development of
the industries such as cigarette factory, sugar mill, tea factory etc. depend upon
the crude raw materials obtained from the agriculture sector. Most of Nepalese
industries are agro-based.

It is impossible to operate industries without agriculture. Agriculture also helps to
accelerate the export oriented industries. The continuance of industries is possible
due to the agricultural sector. Similarly, industries produce the agriculture tools
like spade, plough, mattock etc. which are essential for farmers. In addition, other
ingredients including chemical fertilizers, insecticides, generator for irrigation
are the most to increase the agricultural production. The quality and quantity of
agricultural raw materials depend upon industries. Collaboratively these factors
serve as the backbone of Nepalese economy and are inseparable parts of the same
coin.

Agriculture stimulates the extent of domestic or international markets that
include different agricultural goods like vegetables, fruits, fibre, and timber,
which are brought to the market to fulfil the need of sellers and the buyers. We
cannot imagine the market without such items. Similarly we got machinery and
equipment, seeds, pesticides, insecticides from market. In the absence of such
market products, the agricultural products cannot be accelerated.

Now how about launching a market about industries? How absurd might a shop
be without the product of our daily consumption like milk, bread, biscuit, salt,
sugar, vinegar, rice, oil, shop, detergent, clothes etc? Suppose you have all of the

336 Social Studies Book - 9

products, but no market, buyers and sellers then we cannot assess the trade and
industries to complement each other.

In nutshell, agriculture sector forwards the industries with the crude raw materials
which then supply the market as a form of consumer’s goods. In another way,
industrial products are supplied to the market bought by the farmers for the
increment of their production. Industries and agriculture combine and compose
the goods that the market relies on. Without market, there will be no value of
agricultural products or industrial product. Agriculture sector provides raw
materials to industrial sectors which produce finished goods and ultimately send
to the market for marketing. Farmers buy it from the market and again there
is support for an increment of their production. In this way, there is triangular
relation among them. On the absence of one, other cannot function properly.
So we can say that the simultaneous development and growth of all of the three
sectors will only strengthen the economy of nation.

indispensable : absolutely necessary Glossary

substantial : adequate, sufficient

absurd : incoherent, irrelevant

Evaluation Exercises

a. Is there any industry based on agriculture sector? If yes, write its descriptions.
b. List out the products of agriculture and industrial sector.
c. Explains the inter relationship between agriculture and industries.
d. How does foster of agriculture support to promote industrial sector? Explain.
e. Explain the importance of agriculture sector for the development of trade

sector.
f. Discuss in groups about the interrelationship of trade, agriculture and

industry.

Community Work

Write short notes on ‘The industry established in your locality’ that utilizes
locally available raw materials."

Our Economic Activity 337

Lesson

11 Economic Planning

The term planning was first used by the The plan made by the
Greek philosopher Plato in his famous government to achieve
book ‘Republic’. Planning is an organized, specified objectives in
conscious and continual attempt to select the country on the basis
the best available alternatives to achieve of priority by utilizing
specific goals. So, a plan is a set of activities available means and
that operate in a systematic way to achieve resource is called economic
definite objectives. Likewise, the act of planning. The main aim of
making plans to meet definite goal or target economic planning is to
is called planning. We may refer economic grow country’s economy.
planning to be a process of making plans

related to economic activities to meet

certain objectives of a person, household, industry, country. It signifies the

economic decisions making process undertaken by the policy makers to ensure

the undertaken generations, sharing and consumption of wealth. We know

that a nation has unlimited wants but the resources are limited. That is why the

respective nation prepares plans to fulfill the wants within the limited resources.

The economic planning attempts to achieve sustainable economic development

in all sectors of the economy. It can be defined as the initiation, control and

regulation of economic activities with a view to achieving a definite objective

within the set period.

The economic planning is said to have its outset in the Soviet Union (USSR) in
1928. Having witnessed great success in short period of tenure, other onlookers
initiated developmental activities on the adobe of economic planning. In the
present context, almost every country prepares the economic planning with the
objective of sustainable economic growth and development .This sort of plan is
determined for the fixed time period like say three years, five years, ten years etc.
The systematic economic planning was started in Nepal since 2013 B.S. Some
efforts were made even before it.

Efforts of economic planning before 2013 BS

‰‰ Juddha Shumsher lead government had prepared 20 years plan but ended
without implementation.

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‰‰ In 1992 BS, Nepal Company Act was implemented for the first time in Nepal
to lay down the public limited company in various part of the country.
Industry council was established which aimed at developing agriculture,
industry and trade.

‰‰ In 2005 BS, National Planning Commission was formed under the
government lead by Rana PM Mohan Shumsher that had made a fifteen
year program but it couldn’t materialize.

‰‰ After the political revolution of 2007BS, a planning commission was formed
thereby forming 15 year-plan but it was not made public.

‰‰ In 2012 BS, King Mahendra declared the fifth year plan . A year later, in
Aswin 2013 the first year plan came into effect. Henceforth we have twelve
others plans as listed below:

1st plan (2013-2018BS) – 5 year
Plan less year (2018-2019 BS)
2nd plan (2019-2022(BS) - 3 year
3rd plan (2022-2027(BS) - 5 year
4th plan (2027-2032 BS) – 5 year
5th plan (2032-2037 BS) – 5 year
6th plan (2037-2042 BS) – 5 year
7th plan (2042-2047 BS) - 5 year
Plan less year (2047-2049 BS)
8th plan (2049-2054 BS) – 5 year
9th plan (2054-2059 BS) – 5 year
10th plan (2059-2064 BS) – 5 year
11th plan (2064/65-2066/67 BS) – 3 year
12th plan (2067/68-2069/70 BS) – 3 year
13th plan (2070/71-2072/73(BS) – 3year
14th plan (FY 2073/74-2075/76 BS) – 3 year
15th plan (FY 2076/77-2080/81 BS) – 5 year
(Nepal's economy is estimated to grow 6.5% in the fiscal year 2019-20
according to World Bank. The government has set a target of 8.5% to make
Nepal (a middle income country by 2030).

Our Economic Activity 339

15th plan : (2076 / 77 - 2080 / 81)

Long term vision: 2100 (for 25 years)
"Prosperous Nepal, Happy Nepali"
National Goal:
To prepare base for upgrading the country of high income by transforming into
socialism-oriented welfare state including prosperous economy, social justice
and improved life.

National Objectives
1 To prepare foundation for the prosperity.
2 To make citizen attain, improved and dignified life.
3 To protect self-respect, independence and national interest.

National Strategies
‰‰ To grow rapid, sustainable and employment-oriented economy.
‰‰ To ensurie acessible and qualitative health service and education.
‰‰ To develop internal and international inter connectivity and sustainable

urban / settlement.
‰‰ To increase production and productivity.
‰‰ To provide complete, sustainable and productive social security and

protection.
‰‰ To form just society including poverty alleviation and economic social

equality.
‰‰ To develop conservation, mobilization and promotion of natural resources.
‰‰ To promote national unity, provincial balance and strengthen public service.

Glossary

sustainable : able to be maintained or kept going
regulation : a law, rule or other order prescribed by authority

340 Social Studies Book - 9

Evaluation Exercises

a. What is economic planning? Discuss its needs.
b. What are the strategies of current plan?
c. What are the reasons of not achieving targeted goal in economic planning?
d. What are the advantages of economic planning?
e. Discuss the process of forming economic planning in Nepal.
f. Current planning has given emphasis to reduce poverty. What types of

activities has to be carried out. Discuss and write down.

Community Work

a. Prepare a plan for a year or more by asking your parents regarding
economic improvement in the family.

b. Ask your teacher about the objectives of all economic planning as well as
their achievements and paste in the classroom by making a chart in chart
paper.

c. Visit local body and collect the information about preparing plan and
write a report.

Our Economic Activity 341

Lesson Role of Economic Plan in Poverty
Alleviation and Promotion of Employment
12

The plan aims at utilizing the available resources more efficiently achieving the
well define objectives at targeted time. It helps to set countries objectives and
priorities. It enables sensible and practicable decision to be taken and allocates
the nations scarce resources. Nepal faces problems like inequality of income
problem due to unemployment, lack of capital/aid, etc. Other problems like low
investment, low per capita income, and lack of human resources development,
low level of technology and skills and lack of infrastructures are contributing to
the economic backwardness. Effective implementation of economic plans should
help for economic development. Above all, poverty and unemployment are firmly
attached to the entire nation.

Poverty Alleviation

Poverty is a common problem in underdeveloped countries or third world like
Nepal. In our context, poverty is related to rural populations. A part of Nepalese
society is still deprived of basic needs such as health, education and housing.
The poor people lack adequate income, nutrition, access to social services such as
education, health care, sanitation etc. Rapid population growth, lack of physical
infrastructures, improper utilization of resources, lack of industries, political
instability etc. are responsible for promoting poverty.

Poverty in Nepal largely depends upon structural factors, especially on the modes
of ownership, production and distribution of productive assets, which have their
own dynamics. But, the dynamics is determined by the choice of application of
development policy by the political class. The political class has not been able to
capture the middle ground of the Nepalese political economy that stands between
capital and labour.

Similarly, the problem of unemployment has also affected the majority of
Nepalese people. The excessive population growth rate is the most responsible
factor to increase unemployment and underemployment in Nepal. Due to
the rapid population growth and lack of corresponding increase in the level of
economic growth, the severe problem of unemployment is growing alarmingly.
Lack of industrial development, lack of technical knowledge, underutilization
of natural resources and unsatisfactory development of infrastructure are some
other factors to create poverty.

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Nepal needs planning because around 23.18% of population is below the poverty
line. The regional imbalances in income, employment, education etc. are common
problems. These facts manifest the needs of planning in Nepal. The economic
planning of Nepal encompasses the following to resolve the problems of poverty
and unemployment:

1. Launching poverty alleviation program

Economic planning can start systematic program to reduce poverty and
economic disparities. It aims to create employment opportunities, provides
social service to marginal poor people by launching poverty alleviation
programs in the targeted areas.

2. Reducing the regional disparity

Regional disparity concerning economic position is also a feature of
Nepalese economy. Through planning, we can commence necessary steps
to implement policies and programs to uplift economic state of serially and
economically backward areas of our country. This helps to eliminate poverty.

3. Increase in economic growth rate

Without increasing our economic growth rate poverty cannot be eliminated.
In our context, high economic growth rate can be made possible by developing
agriculture, agro- based cottage and small scale industries, tourism sector
and also foreign trade. It is necessary to make proper use of available means
and resources. Economic planning helps in achieving high and sustainable
economic growth rate which also contributes in alleviation of poverty.

4. Increase people’s participation in development

We know that economic development cannot take place until and unless
people participate in development programs. People’s participation engages
public and helps to solve unemployment problem and also increases the
economic growth rate of a country. As it also helps in eradicating poverty,
people’s participation must be given high priority.

5. Creating employment opportunities

In the developing countries, the available resources like forest, minerals,
human, water, etc. are not utilized properly. The lack of capital, technology,
skill and trained manpower lead to economic backwardness in country like

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Nepal. Therefore, economic planning has to materialize the role of private

sector and public sector. It has to lunch public employment opportunities

for poor and backward people. Various income generating programs such as
tailoring, beekeeping, handicraft, carpentering, etc. must be launched.

6. Development of agriculture and industrial sector

Economic planning emphasizes on use of developing agriculture and
industrial sector by addressing the problems related to the human
resources, physical infrastructures and security in agricultural sector which
automatically leads to industrial advancement also.

Hence, poverty can be alleviated through the above mentioned effective
tools.

dynamics : the motivating or driving forces Glossary
alarmingly : dangerously, horribly
alleviation : abolition, eradication
disparity : a great difference

Evaluation Exercises

a. What is planning? Why are planning done for different span of time?
b. Discuss the advantages of economic planning.
c. How does economic planning reduce region disparity?
d. Why does economic planning emphasize on reduction of poverty?
e. Prepare a news item about the effective tools to reduce poverty in Nepal.
f. Write a letter to national planning commission including the strategies of

creating employment opportunities in Nepal.

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Lesson

13 Entrepreneurship

A person who makes money by starting or running business is called
entrepreneur. Moreover, a person who organizes and manages any enterprise
usually with considerable initiative and risk rather than working as an employee,
an entrepreneur runs a small business and assumes all the risk and reward of
a given business venture, idea, goods or service offered for sale. The employer
of productive sector, a business tender or innovator of new ideas and business
process usually makes an entrepreneur who decides what, how and how much
of goods and services should be produced. In this regard, entrepreneurship is
the process of designing, launching and running a new business. It is backed
up by capacity, willingness to develop, organize and manage a business venture
along with any of its risks. It is characterized by innovation and risk taking. It
includes action such as developing a business plan, hiring the human resources,
acquiring financial and other required resources, providing leadership and being
responsible for the venture’s success or failure.
An entrepreneur has to possess the following qualities:

1 An unwavering passion
2 Open mindedness
3 A forward looking approach
4 Managing time effectively
5 Listening and communicating skills
6 Shameless self-pondering
7 Managing money wisely
8 Protecting a positive business image
9 Building a rock solid reputation
10 Building a top-notch business team
11 Organized and industrious
12 Optimistic self reliant

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Advantages of entrepreneurship

It is said that entrepreneurship is the horse and innovation the cart. It enables
creativity, ideas, discovery and innovation on one hand, and commercialization,
on the other. It plays key role in an economy. Its importance can be justified by
the following points:

1. Motivation and Innovation

It motivates people to achieve success. It fosters innovation or encourages
new ideas, provides access to resources and builds of multi disciplinary team
work. It brings about ways to improve operations and creates new products.

2. Tapping new markets

Entrepreneurs find ways to tap new markets. Thousands or millions of
people can become customers if the company emerges to meet their needs.
When the new venture grows, employment opportunities also increase.

3. Increase in production

Emergence of new market provides fuel for overall economic growth. The
newer venture engages the immobile resources and employs labour. It will
not only increase the production but also its quality.

4. Medium of change

It brings new concepts of producing goods and services. It can offer levels
of achievement that are hard matched by any other type of employment.
A committed team having a great idea surely helps to bring changes in a
society and a nation. A great idea connected with passion and commitment
surely helps to bring change in the society as well as the economy of the
respective nation.

5. Others

It even helps in formation of capital increasing level of competition,
multiplying economic opportunities, engaging human resources and
fostering economic growth.

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unwavering : steady, never doubted Glossary
venture : attempt, a daring task
immobile : not physically moved, stationary

Evaluation Exercises

a. Define entrepreneurship.
b. List out the characteristics of entrepreneurship.
c. Discuss the qualities of good entrepreneurship.
d. What are the advantages of entrepreneurship?
e. How does entrepreneur acts as a medium of change?
f. Discuss the negative impacts of bad entrepreneurship.
g. How does good entrepreneurship support for producing quality goods and

increase in production?

Community Work

Collect the information from your surrounding about a person possessing good
entrepreneurship and prepare a story.

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Lesson Labour

14

What is labour? One may say work or toil. Other tend to regard labour as physical
work. Yet some other understand it to be manual work. However, most of us
agreed that labour is both physical and non physical works. Carrying loads,
building houses, nursing patients, teaching students, writing books, trimming
hair, painting walls etc. all represent labour. Most of the common people still
believe that only physical worker is labourer but in economics all kinds of physical
and non physical workers who earn the wage are labourers. Just working without
any wage is not labour. In other words, the aggregate of all human physical and
mental effort used in creation of goods and services is labour.

Let us consider the following definition by Alfred Marshall:

“By labour is meant the economic work of man whether with the
hand or with the head.”

The economist is of the view that both physical work and non physical work are
considered to be labour. But most importantly it is an earning activity which has
to earn some goods rather than the pleasure derived from the work. In this regard
an author writing books for intellectual pursuit is not labour, he/she has to write
for royalty or some economic benefits.

Type of Labour

1. Productive and Unproductive Labour

Some forms of labour which are useful and even essential to the society
or humanity are called productive labour. They are legally permitted.
Constructing a bridge, extending transport, etc. are some of the examples of
productive labour. On the other hand, any kind of labour which introduces
disservice in the society and is carried out unlawfully is unproductive labour.
Theft, extortion, vandalism, abduction, etc. serve as some of its example.

2. Skilled and Unskilled Labour:

Skill is a measure of the amount of the worker’s expertise, specialization,
wages and supervisory capacity. Skilled labours refer to the labour that
requires workers who have specialized training or a learned skill set to
perform the work. Doctors, lawyers, electrician, computer operators,

348 Social Studies Book - 9

financial technicians, etc. fall under this category. The labour that does not
require any special trainings or skills is unskilled labour. Farm labourers,
grocery clerks, hotel maids, cleaners, sweepers, porters, etc. are housed
under this labour.

3. Physical and Mental Labour

Some works like picking crops or wiring demand the use of hands or body. The
works that are done with any of muscles and bones of body are categorized
under physical or manual work. The labour of a farmer is physical labour.
As opposed to physical work, mental or non manual labour prefers mental
energy of body to physical or muscular. Doctor, teacher, writer, etc. use
mental labour.

Importance of Labour

Labour is the stable datum of this society. Without something to do, there is
nothing for which to live. Human civilization has been built on work. The labouring
of many billions of people throughout has created the cities, farms, industries and
infrastructures. The role of labour has been central to our evolution from the
primitive primates.

Labour plays key role in the economic growth and development of a nation. It
is an active and mobile factor of production of goods and services. It mobilizes
the capital equipment and available resources. Both efficient and inefficient
labours contribute in the rapidity of economic activities in the nation. The more
production means greater export and lesser import. The countries can benefit
foreign currency and national income increases. This will improve the living
standard of people. The skilled manpower like doctors, engineers contribute with
their expertise and others can make use of their physical capabilities. We have to
utilize the active labour to maintain the pace of development.

Dignity of Labour

One of the striking reasons of massive unemployment rate in Nepal is due to our
reluctance to do work. Most of the Nepalese youths prefer to stay unemployed
rather than risking their so called reputation and fame with what they tag the low
standard labour that includes farming, animal husbandry, plumbing, etc. They
are assured that Nepal cannot provide them with so called respectful professions.
Hence they prepare for the betterment in abroad. Most of these migrated brains
would result in pitiful and even lower standard of labour in foreign countries. Truly
speaking, we do not have a culture of respecting the work. A master graduate is

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considered to be detestable and failure if he decides to rear pigs for his livelihood.
Aren’t we indirectly contributing in accelerating the unemployment rate? Aren’t
we pushing our nation to the worse ever level in terms of development? Aren’t
we too selective about the works? Neither we do such works like cleaning, selling
fruits, etc. nor do we stop criticizing others who embrace the same. Works aren’t
classified into bigger (standard) or smaller (low standard) in developed nations.
We can also utilize our skills and capabilities and prepare an atmosphere of self
employment in our nation. So why not to cultivate the habit of respecting all the
works !

aggregate : sum Glossary

pursuit : search

detestable : deserving intense dislike

Evaluation Exercises

a. Define labour with example.
b. Differentiate between skilled and unskilled labour.
c. Discuss the physical and mental labour with example.
d. Explain the concept of productive and unproductive labour with example.
e. Discuss the importance of labour.
f. Why should we respect any sort of job?
g. Justify that respect of work support to solve unemployment problems.

Community Work

Visit local community and collect the information about labour related activities
especially the types, their importance and prepare a report.

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