Economic Development

According to my analysis, various reasons are accountable for Nepal's low economic growth and poverty. In my research, I have concluded various factors that have constrained Nepal to explore beyond its level and acquire growth and prosperity. They are listed below:

* Government And Political structure:

The main reason is always regarded to be political deficiency in Nepal. The political uncertainty and ineffective leadership contributes to its poverty. The type of institution and entrepreneurship the country adopts will highly influence its growth rate. The technology and innovation actually makes a society move forward. However, the powerful social interest group in Nepal blocks technology and innovation, limits free trade and foreign exchange and protection of property rights. The government rules and regulation and its policies have been creating financial crisis so far. The entrepreneurship in Nepal is destructive entrepreneurship instead of being productive entrepreneurship. These powerful groups are just in a battle for higher power and election that they tend to forget that they should be one to protect and develop nation. They are engaged in bribes, violence, and exploitation. So far Nepalese society has been able to break the strength of political power and its suppression. The society still faces a great challenge to outbreak these political groups.

* Social exclusion:

Nepal is a very conservative country with its own beliefs and values. The Gender-based exclusion and Caste-based social exclusion are prevalent in Nepal for a long time. The discrimination in gender and caste have also contributed to low economic growth as there will be low health and educational opportunities to these groups who have been excluded. As a result, the abilities among these groups will never be explored and utilized which otherwise could be used as a powerful resource for the development of nation.

* Decreased level of social and economic infrastructure:

The health and education system are the primary backbone of a country. However, Nepal lacks the good infrastructure of health and education. Education and economic growth are positively related. When education system of a country improves, the country's economic growth also improves. In context of Nepal, the people in rural areas still do not have a good access to the health and education as there are not many health centers and hospitals, standard schools and colleges for children. Moreover, the geographical structure of Nepal comprising of more hills and mountains contributes to the access of roads and transportation.

* High population growth:

The relation between population growth and economic development is positive. When there is a population growth, it means there will be increase in technology and innovation. Technology enhances economic growth. However, in context of Nepal the scenario is not the same. Technology and innovation have been used in a very less amount. Therefore, job opportunities in Nepal will be considerably low. The young people are well educated and skillful are even no able to find a technical and skillful job. This will lead to people to depend on the agriculture which is the main occupation of Nepal. This creates adverse effects as people will be engaged in deforestation, use of public land and cultivating marginal land. All of these activities will affect the environment.

Higher Dependence of Foreign Aids:

Nepal has a trend to highly depend on Foreign Aids from a long history. The development aid policy has been also been contributing to Nepal's poverty. Nepal has been receiving foreign assistance since 1952 from countries such as Japan, India, Germany, United States, China and many more. The foreign Aid increases the production of a country by increasing the resources to the country. Foreign aid helps in controlling and planning of the country being helped. So far the foreign aid has been achieved to support and improve transportation infrastructure, health and education, power generation, transportation infrastructure and so on; however it does not mean that they will help in the overall economic growth of the country. Moreover, the political parties have not been able to utilize the aid in the correct way so far. It has enhanced more corruption, more competition for power and more violation. The aid seems to benefit these political parties more than they do the nation.

* Migration of youth to foreign countries:

One of the factors that contribute to Nepal low economic growth is the migration of young generation to the foreign countries. The low education system and low employment opportunities prevalent in the country has encouraged young generation to migrate to different developed countries such as United States, Japan, S. Korea, N. Korea, Switzerland, Germany, Dubai and so on in search of good education and employment. Many of them do not return back to the Nepal since they get habituated with high living standard of these nations and of course good money and opportunity. The number of people leaving the country for a better opportunity has been increasing day by day and a time might come when Nepal will be left with only children and old people. The youth power is the strongest manpower of a nation and when a nation loses that manpower it loses the greatest strength and opportunity of a country.

The strength and opportunity

I believe that Nepal still has many strengths and opportunities to exploit them for its development. According to my research, I feel that Nepal still can reverse its direction to the developing side if some of the truths are realized or appreciated and trying to change some of them.

* Tourism:

Tourism is believed to be the strongest and largest industry in Nepal and helped to acquire foreign exchange and income in a large scale. Nepal has so many authentic arts and beauties that can enhance the tourism. Mount Everest, the highest mountain in the world is located in Nepal which has attracted many foreigners. The country is fortunate to have many beautiful places with enormous history and artistic view that can make one feel in heaven. Nepal is the birth place of Lord Gautama Buddha, who was the founder of Buddhism. The hundreds of temples, comprising of arts and history of more than thousand years has made them one of their kind. It is often called a mini world with incredible beauty and natural vision. Nepal can highly benefit from these natural beauty and resources. Mountain climbing, trekking, rafting, bungee jumping etc. are some of the major attractions for tourist