NationMaster - Encyclopedia: Economy of Nepal

An isolated, agrarian society until the mid-20th century, Nepal entered the modern era in 1951 without schools, hospitals, roads, telecommunications, electric power, industry, or civil service. The country has, however, made progress toward sustainable economic growth since the 1950s and is committed to a program of economic liberalization. (19th century - 20th century - 21st century - more centuries) Decades: 1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s As a means of recording the passage of time, the 20th century was that century which lasted from 1901–2000 in the sense of the Gregorian calendar (1900–1999 in the... 1951 was a common year starting on Monday; see its calendar. ... Telecommunication is the extension of communication over a distance. ... Millennia: 1st millennium - 2nd millennium - 3rd millennium // Events and trends The 1950s in Western society was marked with a sharp rise in the economy for the first time in almost 30 years and return to the 1920s-type consumer society built on credit and boom-times, as well as the...

Nepal completed its ninth economic development plan in 2002; its currency has been made convertible, and 17 state enterprises have been privatized. Foreign aid accounts for more than half of the development budget. Government priorities over the years have been the development of transportation and communication facilities, agriculture, and industry. Since 1975, improved government administration and rural development efforts have been emphasized. 2002 is a common year starting on Tuesday of the Gregorian calendar. ... 1975 was a common year starting on Wednesday (the link is to a full 1975 calendar). ...

Agriculture remains Nepal's principal economic activity, employing 80% of the population and providing 37% of GDP. Only about 20% of the total area is cultivable; another 33% is forested; most of the rest is mountainous. Rice and wheat are the main food crops. The lowland Terai region produces an agricultural surplus, part of which supplies the food-deficient hill areas.

Economic development in social services and infrastructure has made progress. A countrywide primary education system is under development, and Tribhuvan University has several campuses. Although eradication efforts continue, malaria had been controlled in the fertile but previously uninhabitable Terai region in the south. Kathmandu is linked to India and nearby hill regions by road and an expanding highway network. Tribhuvan University is the largest and oldest university of Nepal. ... Red blood cell infected with Malaria (Italian: bad air; formerly called ague or marsh fever in English) is an infectious disease which in humans causes about 350-500 million infections and over 1 million deaths annually, mainly in the tropics and sub-Saharan Africa. ... This article is about the city. ...

Major towns are connected to the capital by telephone and domestic air services. The export-oriented carpet and garment industries have grown rapidly in recent years and together now account for approximately 70% of merchandise exports.

Imports/Exports

Nepal's merchandise trade balance has improved somewhat in recent years with the growth of the carpet and garment industries. In FY 2000-01 exports posted a greater increase (14%) than imports (4.5%), helping bring the trade deficit down by 4% from the previous year to $749 million. Trade with India rose rapidly after conclusion of the 1996 bilateral trade treaty between the two countries, and now accounts for 43% of all exports. Indian efforts to revise the treaty, which comes up for a 5-year review in December 2001, could dampen Nepal's export growth. The annual monsoon rain, or lack of it, strongly influences economic growth. From 1996 to 1999, real GDP growth averaged less than 4%. The growth rate recovered in 1999, rising to 6% before slipping slightly in 2001 to 5.5%. Balance of trade figures are the sum of the money gained by a given economy by selling exports, minus the cost of buying imports. ...

Strong export performance, including earnings from tourism, and external aid have helped improve the overall balance-of-payments situation and increase international reserves. Nepal receives substantial amounts of external assistance from India, the People's Republic of China, the United Kingdom, the United States, Japan, Germany, and the Scandinavian countries. Several multilateral organizations, such as the World Bank, the Asian Development Bank, and the UN Development Program also provide assistance. In June 1998, Nepal submitted its memorandum on a foreign trade regime to the World Trade Organization and in May 2000 began direct negotiations on its accession. Scandinavia, Fennoscandia, and the Kola Peninsula. ... Logo of the World Bank The International Bank for Reconstruction and Development (IBRD, in Romance languages: BIRD), better known as the World Bank, is an international organization whose original mission was to finance the reconstruction of nations devastated by WWII. Now, its mission has expanded to fight poverty by means... The Asian Development Bank (ADB) is a multilateral development finance institution dedicated to reducing poverty in Asia and the Pacific. ... The United Nations Development Programme (UNDP) is the largest multilateral source of grant technical assistance in the world. ... The World Trade Organization (WTO) is an international organization which oversees a large number of agreements defining the rules of trade between its member states (WTO, 2004a). ...

Resources

Progress has been made in exploiting Nepal's major economic resources--tourism and hydroelectricity. With eight of the world's 10 highest mountain peaks--including Mount Everest at 8,850 m (29,035 ft)-- hiking, mountain climbing, and other tourism is growing. Swift rivers flowing south through the Himalayas have massive hydroelectricity potential to service domestic needs and the growing demand from India. The two countries have joint irrigation-hydroelectric projects on the Kosi, Trisuli, and Gandaki Rivers. Several other hydroelectric projects, at Kulekhani and Marsyangdi, were completed in the mid- to late 1980s. In the early 1990s, one large public sector project and a number of private projects were planned; some have been completed. The most significant private sector financed hydroelectric projects currently in operation are the Khimti Khola (60 MW) and the Bhote Koshi (36 MW). A tourist boat travels the River Seine in Paris, France Tourism can be defined as the act of travel for the purpose of recreation, and the provision of services for this act. ... Hydroelectricity, or hydroelectric power, is a form of hydropower, (i. ... Everest is the highest mountain on Earth. ... Perspective view of the Himalaya and Mount Everest as seen from space looking south-south-east from over the Tibetan Plateau. ... Irrigation in the Heart of the Sahara Irrigation (in agriculture) is the replacement or supplementation of rainfall with water from another source in order to grow crops. ... Dudh Kosi (Milk River) is a river in eastern Nepal. ... THE BHOTE KOSHI PROJECT The Bhote Koshi Project was constructed from 1997 to 2000 and started operating in January 2001. ...

The environmental impact of Nepal's hydroelectric projects has been limited by the fact that most are "run-of-river" with only one storage project undertaken to date. The largest under active consideration is the private sector West Seti (750 MW) storage project which is dedicated to exports. Negotiations with India for a power purchase agreement have been underway for several years, but agreement on pricing and capital financing remains a problem. Currently demand for electricity is increasing at 8%-10% a year.

Population pressure on natural resources is increasing. Over-population is already straining the "carrying capacity" of the middle hill areas, particularly the Kathmandu Valley, resulting in the depletion of forest cover for crops, fuel, and fodder and contributing to erosion and flooding. Although steep mountain terrain makes exploitation difficult, mineral surveys have found small deposits of limestone, magnesite, zinc, copper, iron, mica, lead, and cobalt. Minerals are natural compounds formed through geological processes. ... Limey shale overlaid by limestone. ... Magnesite is magnesium carbonate, MgCO3. ... General Name, Symbol, Number zinc, Zn, 30 Chemical series transition metals Group, Period, Block 12, 4, d Appearance bluish pale gray Atomic mass 65. ... General Name, Symbol, Number copper, Cu, 29 Chemical series transition metals Group, Period, Block 11 , 4, d Density, Hardness 8920 kg/m3, 3. ... General Name, Symbol, Number iron, Fe, 26 Chemical series transition metal Group, Period, Block 8 (VIIIB), 4, d Density, Hardness 7874 kg/m3, 4. ... rock with mica Mica sheet mica flakes The mica group of minerals includes several closely related materials having highly perfect basal cleavage. ... General Name, Symbol, Number lead, Pb, 82 Chemical series poor metals Group, Period, Block 14, 6, p Appearance bluish white Atomic mass 207. ... General Name, Symbol, Number cobalt, Co, 27 Chemical series transition metals Group, Period, Block 9 , 4, d Density, Hardness 8. ...

Statistics

GDP - composition by sector:
agriculture: 40%
industry: 20%
services: 40% (2002 est.)

Household income or consumption by percentage share:
lowest 10%: 3.2%
highest 10%: 29.8% (1995-96)

Budget:
revenues: $665 million
expenditures: $1.1 billion, including capital expenditures of $NA (FY 99/00 est.)

Industries: tourism, carpet, textile; small rice, jute, sugar, and oilseed mills; cigarette; cement and brick production Jute is a long, soft, shiny plant fibre that can be spun into coarse, strong threads. ... A sugar is a carbohydrate which is sweet to taste. ... Vegetable oil or vegoil is fat extracted from plant sources. ... A cigarette will burn to ash on one end. ... In the general sense, a cement (Latin caementum) is any material with adhesive properties. ...

Electricity - production by source:
fossil fuel: 8.5%
hydro: 91.5%
nuclear: 0%
other: 0% (2001)

Agriculture - products: rice, maize, wheat, sugarcane, root crops; milk, water buffalo meat Species References ITIS 41975 2002-09-22 Rice (genus Oryza) is a plant of the grass family which is a dietary staple of more than half of the worlds human population. ... Species Zea diploperennis Zea luxurians Zea nicaraguensis Zea perennis References ITIS 42268 2002-09-22 Sorting Zea names This article is about the staple food. ... Species T. boeoticum T. durum T. monococcum T. spelta References: ITIS 42236 2002-09-22 Wheat (Triticum spp. ... This article is about the plant. ... A glass of cows milk Milk most often means the nutrient fluid produced by the mammary glands of female mammals. ... Binomial name Bubalus arnee (Kerr, 1792) The Water Buffalo is a very large ungulate. ...

Exports: $568 million f.o.b., but does not include unrecorded border trade with India (2002 est.)

Exports - commodities: carpets, clothing, leather goods, jute goods, grain Historically, carpet has been a general term given to any loom-woven or felted textile and to grass floor coverings. ... Modern leather-making tools Leather is a material created through the tanning of hides, pelts and skins of animals, primarily cows. ... Jute is a long, soft, shiny plant fibre that can be spun into coarse, strong threads. ... Cereal crops are mostly grasses cultivated for their edible seeds (actually a fruit called a caryopsis). ...

Exports - partners: India 50.5%, US 26%, Germany 6.6% (2003 est.) Wikiquote has a collection of quotations by or about: United States Wikinews has a related story: United States United States government CIA World Factbook Entry for United States House. ...

Imports - commodities: gold, machinery and equipment, petroleum products, fertilizer General Name, Symbol, Number gold, Au, 79 Chemical series transition metals Group, Period, Block 11, 6, d Appearance metallic yellow Atomic mass 196. ... Nodding donkey pumping an oil well near Sarnia, Ontario, 2001 Petroleum (from Latin petra â€“ rock and oleum â€“ oil), crude oil, sometimes colloquially called black gold, is a thick, dark brown or greenish flammable liquid, which exists in the upper strata of some areas of the Earths crust. ...

Imports - partners: India 22.9%, China 13.5%, UAE 12.6%, Singapore 7.1%, Saudi Arabia 5.5%, Kuwait 4.6%, (2003 est.) The United Arab Emirates is an oil-rich Middle Eastern country situated in the south-east of the Arabian Peninsula in Southwest Asia, comprising seven emirates: Abu Dhabi, Ajman, Dubai, Fujairah, Ras al-Khaimah, Sharjah and Umm al-Quwain. ...

Exchange rates: Nepalese rupees (NRs) per US$1 - 77.88 (2002), 74.95 (2001), 68.253 (1999), 65.976 (1998), 58.010 (1997), 56.692 (1996), 51.890 (1995) Wikiquote has a collection of quotations by or about: United States Wikinews has a related story: United States United States government CIA World Factbook Entry for United States House. ...

Fiscal year: 16 July - 15 July July 16 is the 197th day (198th in leap years) of the year in the Gregorian Calendar, with 168 days remaining. ... July 15 is the 196th day (197th in leap years) of the year in the Gregorian Calendar, with 169 days remaining. ...

References

Some information in this article has been taken from the CIA World Factbook, 2003 edition. World Factbook 2004 cover The World Factbook is an annual publication by the Central Intelligence Agency of the United States with basic almanac-style information about the various countries of the world. ... 2003 is a common year starting on Wednesday of the Gregorian calendar. ...

SAARC Logo This is a copyrighted and/or trademarked logo. ... The South Asia Free Trade Agreement is an agreement reached at the 12th South Asian Association for Regional Cooperation summit. ...

Categories: SAFTA members | Nepal | Economies by country | WTO members This is a copyrighted and/or trademarked logo. ... The World Trade Organization (WTO) is an international organization which oversees a large number of agreements defining the rules of trade between its member states (WTO, 2004a). ... The Asian financial crisis in 1997 and 1998, coupled with fluctuations in the price of oil have created uncertainty and instability in Bruneis economy. ... The European Union has the largest economy in the world. ... Economy - overview: Guinea-Bissau is among the worlds least developed nations and one of the 20 poorest countries in the world, and depends mainly on agriculture and fishing. ... The economy of Hong Kong has often been cited by people such as Milton Friedman and the Cato Institute as an example of the benefits of laissez-faire capitalism. ... The economy of Macau is based largely on tourism (including gambling) and textile and fireworks manufacturing. ... The St. ... Dr. Sun Yat-Sen decorates a 100NT bill. ...

Contents

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Resources

Statistics

References

Imports/Exports