Long History of Violence

• Establishment of Rana regime.

• greatly influenced by India to revolt against
monarchy.
• hijacking of Royal Nepal Airlines, royal massacre of
2001 greatly reflects the occurrence of political
insurgencies in Nepal.
• highlights the scenario of Nepal’s unhealthy political
conditions.
 The People’s War
• Peoples’ war by CPN
• Raid, Sabotage, Kidnapping
• Damage to school infrastructure, literacy among
youth , psychological trauma
• Major revenue : tax racket
• State Apathy, Royal Takeover and End of Conflict.
• Major decline in GDP due to conflict; decline in
tourist, loss in business, drying up of FDI, loss in
human capital.
• Mass migration
• Psychological impact-investment risk for doing
business.
• A great excuse: private and development sector to
excuse their inefficiencies.
• Impact on Terai
• Development stopped in 1996.
• Trend of migration with open borders.
 Emergence of remittance economy
• Tradition to go to work in India(more accessible and
more opportunities) in the 1950s and 1960s.
• First World War: Gurkhas started the remittance
economy.
• Low interest in capitalizing on a niche market in
labor.
• 157000 working out of 8.25 million.
• No strong economic growth, no entrepreneurial
success, nepotism.
• Multi-party democracy- liberal market for foreign
labor.
• Increase in remittance. Remittance through informal
channels- unaccounted contribution to national GDP.
• Involvement of private sector-manpower agencies,
educational consultancy
• Income through remittance and a potential source of
investment can be Nepal's loss of best human
resource.

• Solutions to the problems analyzed.

• Ideas for unleashing Nepal's potential.
• Should alleviate poverty and move up from being
LDC.
• Wealth creation-job opportunities, investment
opportunities, entrepreneurial assistance, secure
business environment and stable political
governance.
• Address poverty-participation in private sector
through ownership/as employees
• Capitalist welfare state.
• Embracing globalization-capitalizing its unique brand
and identity, reorient and re-brand, start marketing
and leveraging.
• Must integrate into global economy.
• BIMSTEC
• Private sector should be more ambitious.
• Forge alliances, seek capital and technology.
• Allow investment in abroad.
• Automating functions of government through
outsourcing.
• Tax Reform
• Aid Donors-transparency, ethics, rules
• Promotion of local businesses-subsidy, reduced tariffs,
partnership
• Scaling up
• Agricultural sector has to be made attractive for large
international companies to invest, transfer, operate and
package agricultural products.
• Framework for trading power between Nepal and India
• Allow foreign insurance companies to operate
• Unleashing tourism-investment in people, domestic
tourism.