Nepal Human Development Report -2020
"Profound changes have taken place in Nepal since the last Nepal Human Development Report in 2014. The 2015 Constitution and subsequent elections under the new federal system of governance restored stability and led to reforms with far-reaching implications for democracy, the economy, institutions and the people."
Key Messages
- Notable progress in human development has taken place in Nepal. However, across gender, region and local groups, large disparities persist. Gaps are evident across and within provinces, and in all three dimensions of human development- a long and healthy life, knowledge and a decent standard of living. Remarkable gender inequality remains and has heightened a variety of human development disparities. Reoriented human development strategies should strongly focus on achieving gender equality and reducing interprovincial disparities, including through provincial and local governments playing more efective roles.
- Notable progress has been made on the protection and promotion of women’s rights and gender equality. Still, deeply rooted sociocultural norms impede better outcomes. The depths of gender inequality is much broader than what human development indices capture. Gender transformative policies need to aim at long leaps forward for women in the economy, politics and society at large, shifting norms as well as the structures that perpetrate discrination. Expanding women’s capabilities, opportunities and agency will accelerate empowerment.
- Nepal meets the criteria for LDC graduation despite its per capita income remaining below the threshold. It has satisfed two criteria associated with human assets and economic vulnerability, but its low per capita income remains a major challenge for graduation to be sustainable. Structural impediments to the productive transformation of the economy combine with multiple vulnerabilities, including natural and trade shocks, a landlocked geography, high inequality, climate risks, a largely informal labour market, and weak governance and institutions. Ensuring graduation is irreversible requires revamping development to achieve greater productivity while mitigating multiple risks.
- In graduating, Nepal faces potential export losses and erosion in concessional aid, although reductions may not be very high in the short to medium term. In trade, besides the possible reduction in some exports, Nepal may experience constraints on diversifying exports due to high tarifs, loss of fexibility in the implementation of the Trade-Related Aspects of Intellectual Property Rights (TRIPs) Agreement, limited fexibilities to promote infant industries, and loss of LDC-specifc decisions under the Doha Round negotiations. These factors may pose additional challenges to industrialization and compound problems related to protecting public health and preserving rich stores of biodiversity. Others risks stem from less favourable bilateral aid terms and the phasing out of some United Nations mechanisms and other supports. There is scope for new opportunities in the postgraduation period, however. These come from larger infows of foreign direct investment, among others. A very robust transitional strategy for graduation would help minimize risks and maximize gains.
- Structural shifts and radical changes in development strategies can speed up human development, making it equitable and sustainable. This is also key for a successful LDC graduation. Such changes would entail transforming the structure of the economy to make the most of productive resources, and reduce poverty and inequality. Important elements include improving entrepreneurial capabilities, and forging production and market links. Streamlining and reforming institutions and improving governance should make them highly responsive, accountable and results-oriented in putting policies into practice. On the other hand, inducing changes in the structure of investment and consumption demand could enhance productive capacity and increase consumption of large segments of the population currently left behind through decent employment, wages and distributional efects.
- Enhancing the catalytic role of provincial and local tiers of governance would minimize large spatial development gaps, reduce vulnerabilities and ensure sustainable human development. In line with the principle of federalism, including fscal federalism, a strategic shift in the roles and capacities of provinces and localities would unleash their vital contributions to more equitable and sustainable human development and prosperity.
- A comprehensive relief package accompanied by a medium- to long-term strategic plan to mitigate the COVID-19 crisis and build resilience is imperative. Although this report was prepared before the outbreak of COVID-19, a quick assessment of the implications of the pandemic based on the latest information indicated that it has already severely undercut critical dimensions of human development and LDC graduation. Given acute pre-pandemic vulnerabilities, the life and livelihood risks of people in general and informal sector workers, women and other vulnerable populations in particular have markedly increased. The pandemic has confrmed that enhancing human development in a more equitable way protects lives and boosts resilience. It has opened opportunities to bring about major shifts in development discourse and priorities. A more aggressive health programme to combat the virus and reach the most vulnerable should be combined with a comprehensive relief programme and a robust economic stimulus to revive the economy. A medium to long-term strategic plan should aim to accelerate economic momentum, advance productive transformation and prevent disruption in the development of human capabilities.
- The pandemic requires a fresh review of the graduation plan. With sharp deceleration in economic growth, reductions in human assets and intensifcation of economic vulnerability, Nepal faces a changed situation. This necessitates a closer review of the scheduled graduation plan. Enhancing socioeconomic and environmental resilience by reducing vulnerabilities will likely be a crucial part of the transitional strategy. n It could be time for a universal minimum income to cope with magnifed vulnerability. A comprehensive strategy could integrate social protection, social security and employment-related programmes, which are currently operating in isolation, and establish a guaranteed income threshold sufcient to live on. By helping to reduce vulnerabilities, especially among the most disadvantaged people across provinces, such a groundbreaking approach will take Nepal much farther down the road to equitable prosperity and sustainable development, and towards fully realizing its hopes for LDC graduation.
Human Development Index of Nepal:
HDI of Nepal is rising slowing over time. It was 0.378 in the year 1990 which rose to 0.587 in 29 years.
This figure shows the trend of Nepal's HDI indicators over time.The life expectancy has raised from about 35 years in the year 1990 to about 70.5 years in the year 2019.
Gender Development Index of Nepal
The overall GDI of Nepal is 0.886. Bagmati province has higer GDI followed by Sudurpaschim,and Karnali. GDI was least in Province-2.
Reference:
Nepal Human Development Report 2020 | United Nations Development Programme (undp.org)
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