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Low Investments

  • Nepal has laws against foreign investments

  • Huge potential for hydroelectric investments but lack of trust for the first world investors

  • Foreigners not allowed to own businesses or land

  • Government doesn’t have money to invest in public infrastructure

  • Needs: More open borders for trade and investments, better government assistance

 

Child Labour

  • 1.6 million children (2014) children between 5 and 17 in the work force

  • Takes jobs from unemployed adults

  • Became illegal in 2000 but still happens

  • Decreases literacy, hurts economy

  • Needs: Crack down on labour laws, compulsory education for children

Natural Resources

  • Forest covers 37% of the country (used for exportation of lumber). Used very sustainably, supported by export taxes to discourage abuse of the resource

  • 2nd richest country in water sources. Currently used only for drinking, washing and agriculture. Great potential for hydroelectricity to power the country and use as a renewable export.

  • Needs: Find a balance between protecting the resources and using them to their potential  

 

Population Growth

  • Population is starting to exceed available food sources

  • Leads to higher poverty levels

  • Current fertility rate of 4.1. The goal is 2 (replacement rate)

  • Average population growth rate of 2.3 percent per year

  • This limits economic growth because it strains resources and increases unemployment

  • Needs: Increased knowledge of family planning

Lack of Economic Security

  • Still recovering from a civil war

  • Lack of capital, majority of people working just for sustenance

  • Little to no government assistance

  • Very protectionist. Difficult for citizens to grow economically because if trade barriers (export taxes on many resources such as lumber and rice)

  • Unemployment level high: 40%

  • Needs: Better opportunities for trade and jobs, politically stability and support

 

Malnutrition

 

  • 81% of children under 5 have some level of malnutrition. 41% have stunted growth

  • 2-3% of their GDP spent annually to try and deal with it

  • Slow economic growth because of poor physical condition leading to less productivity, higher health costs and loss of cognitive function

  • Needs: increased food security, decrease of stunting to have stronger farm workers

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Main Issues

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