Village road in Nepal. Weak infrastructure, particularly in the energy and transportation sectors, is the largest impediment to sustainable and inclusive growth in Nepal. Photo by: Simone D. McCourtie / World Bank / CC BY-NC-ND
For the past two decades, Nepal has had relatively stable but modest economic growth, averaging at 4 percent since the mid-1990s. Even so, the South Asian country managed to reduce extreme poverty from 53 percent in 2004 to just 25 percent in 2011.
Yet most of its success on the economic front can be attributed mainly to labor migration and the influx of remittances. Nepal still ranks among the poorest nations in the world, placing 157th out of 187 countries in the Human Development Index. With a growing population, limited employment opportunities and an undiversified economy, the country has yet to achieve sustainable, inclusive development.
This article is for Devex Members