Economic Underdevelopment Analysis: Nepal

CONTENT ANALYSIS Nepal is among least developed countries in the world and was listed as the poorest among the 121 countries in 1989. Various factors contributed to the economic underdevelopment including terrain, lack of resource endowment, landlocked position, lack of institutions for modernization, weak infrastructure, and the lack of policies conducive to development. With about one-quarter of its population living below the poverty line. Nepal is heavily dependent on remittances, which amount to as much as 29% of GDP. Agriculture is the mainstay of the economy, providing a livelihood for almost 70% of the population. Nepal was hit by the earthquake in early 2015, which damaged or destroyed infrastructure and
Agriculture is the lynchpin of the country’s economy and employs approximately 75% of its population of 27 million. Meanwhile, the country’s gross domestic product is 66 billion, according to a 2014 estimate by the CIA. That’s up from 63 billion in 2013 and 61billion in 2012. Agriculture is the mainstay of the economy, providing a livelihood for more than 70% of the population and accounting for a little over one-third of GDP according to the CIA. Industrial activity mainly involves the processing of agricultural products, including pulses, jute, sugarcane, tobacco, and grain”. Nepal has very little contact to other nations. India has been great support and only way to export and import the goods through seaways, railways and roadways. Neap has tried it’s best to expand its contacts with other countries and to improve its infrastructure. Nepal’s economy is irrevocably tied to India. Nepal’s geographical position and the scarcity of natural resource used in the production of industrial goods meant its economy was subject to fluctuations resulting from changes in its relationship with India. Trade and transit rights affected the movement of goods and increased transportation costs, although Nepal also engaged in unrecorded border trade with India. Economic development in has been complicated an affected by the constant change in political scenarios which has ranged from being a monarchy to being ruled by the
Most mineral commodities were used for domestic construction. The principal minerals agency was the department of mines and geology. Geological surveys conducted in the past had indicated the possibility of major metallic and industrial mineral deposits, but a poor infrastructure and lack of manpower force inhibited further development of the mineral industry. Nonetheless, the mining industry has the potential to become a more important part of the economy as new mines are being planned or were being developed. Nepal was long under a feudal system where a small number of landlords held most of the agriculture land. The state extended its control over the land by the administrative device of making land grants and assignments and raising revenues. The effort of land reform has brought about a drastic change in the economics of