Why is Nepal a Poor Country?

Why is Nepal a Poor Country?

Nepal is known to be one of the most beautiful countries in the world. However, the fact that Nepal is a poor country stands true. The question of why is Nepal a poor country has emerged over the minds of many. Those who look at the living style of Kathmandu are amazed to know that more than 25.2 per cent of Nepal’s population lives below the poverty line. Why is Nepal a Poor Country?

The employed population of Nepal (almost 12.5%) earns below 1.90 American dollars per day. Out of every 1000 babies born in Nepal, 29 die before their first birthday solely due to poverty. So why is Nepal a poor country? Why has it not managed to stay out of the clutches of poverty? Why is Nepal a poor country and yet its people are rich? There are many factors that come to play. However, the significant factors that come to play are mentioned below:

1. Political Instability

Political instability stands out to be one of the primary reasons why Nepal is a poor country. Nepal has remained a sovereign country throughout the past years. It has never been under the clutches of some foreign power and does not celebrate Independence Day. However, this fact does not take our minds away from the fact that political instability is at its peak in Nepal.

Nepal has undergone several political changes in the past decades. With the phase-out of the Panchayat system and the introduction of the reformed democracy, Nepal was slowly gathering a steady pace, and this was hindered with the introduction of the Maoist insurgency which crippled Nepal. Following the end of a decade-long insurgency era, which killed a huge number of people, Nepal slowly started gaining momentum. This is the reason Why is Nepal a Poor Country?

2. Corrupt Bureaucracy

Corruption is another problem that has crippled the economy of Nepal. Nepal has been ranked as the third most corrupt country in South Asia. Every new idea that comes up in Nepal is phased out due to corruption. There are different layers of corruption in every sector, and this kind of corruption has not still been eliminated despite the continued efforts of organizations like Transparency International.

Lack of dependable data, extreme nepotism, and manipulation, in-transparent forms of work and continued abuse of authority is another reason why Nepal is a poor country. This is Why is Nepal a Poor Country?

3. Lack of Industry

Nepal is only slowly coming forward when it comes to creating industries inside the county. More than half of the items used in Nepal are exported from other countries. Nepal lacks even the most basic industries and depends largely on products imported from India.

Local products are used on a lesser level, and the initial investment required to start up an industry is lacking in the country. The industry sector also lacks back in comparison to other countries because of corruption. This is Why is Nepal a Poor Country?

4. 1/4 Population Falls Below The Poverty Line

Almost 25 per cent of the population of Nepal falls under the poverty line, with the negligible amount of salary to meet their basic needs. While the poverty factor has decreased over the past few years, it still is not enough. Poverty induces overpopulation, illiteracy and thus continues the cycle of poverty.

It is safe to state that the rich are becoming richer while the poor are becoming poorer in this country. A country is as poor as its poorest citizen, and this fact holds true for Nepal.

5. Migration of Nepalese Youth for Foreign Employment

The educated youth of Nepal adopt foreign employment as a means to fulfil their needs. With fewer employment Opportunities and salary capabilities in Nepal, the youth of this country are continually searching for options outside the country.

Worker class people adopt for countries in the UAE while those who seek future education opt for countries like the USA, Canada, and Australia. With the youth of the country and the educated individuals emigrating out in such a huge chunk, it is expectable of Nepal to remain a poor country. This is Why is Nepal a Poor Country?

6. Bad Neighbors

Nepal is surrounded on three sides by India and on one side by China. With the innumerable natural resources that this country possesses and the rivalry between the two countries Nepal has always remained like yam in the middle of a sandwich.

Nepal’s political situations have always been compromised because of the interference of these countries. For example, India also recently posted an unspoken blockade that crippled the economy of Nepal in several ways. Bad neighbours are also one of the leading reasons why Nepal is a poor country.

7. Lack of Trust to Invest in Nepal

With the lack of talented human resources and with instability posing problems in the economy of Nepal, there is a lack of trust to invest in Nepal. Labour is found in easy in Nepal.

However, people do not have the trust to invest in this country and make it a location to carry out business endeavours in. If provided with a safe and secure environment, foreign investment would also be a source of income for the country.

8. Natural Disasters

Nepal is a country prone to a number of natural disasters. It was hit by a massive earthquake in 2015, which took the lives of thousands of people and destroyed a chunk of property in the capital (Kathmandu). Nepal is also prone to a huge number of landslides that block roads and kill people.

The Terai region of Nepal is prone to some floods. These natural disasters destroy lives an s property, and waste up to a huge chunk of money on the rehabilitation of the lost resources. Regular natural disasters also contribute to making Nepal a poor country. This is Why is Nepal a Poor Country?

9. Lack of Proper Tourism Promotion

Nepal certainly has to be one of the most beautiful countries in the world. With the variety of topography, Nepal can give travellers the feel of cold arctic temperature to extreme heating conditions all for the duration of one day. It is home to eight of the highest peaks in the world, and the Himalayan range looks spectacular from several viewpoints in Nepal. It is also home to several rare species of animals and has a huge number of forests.

Water resources are abundantly available in Nepal, and the hospitality of this country is unparalleled to anything. However, the amount of exposure that Nepal needs to gain the world is less. There are lesser promotion activities that call upon tourists to visit Nepal, and this lack of promotion makes Nepal a less known country. This is Why is Nepal a Poor Country?

The land of Everest and the birthplace of Lord Buddha need to be exposed more to the nooks and crannies of the world, to remove Nepal from the list of poor countries in the world.

10. Nepal Depends on Agriculture But has Outdated Farming Practices

Agriculture is the primary profession of a huge population of Nepal. With an abundance of fertile lands in the Terai region of Nepal, a vast number of people depend on agriculture to fulfil their daily needs. Nepal has the capability of generating a lot of agricultural products, but it imports food products from neighbouring countries to satisfy the requirements of the nation.

The outdated farming practices are to blame for this condition. While the government has taken steps to make agriculture hassle-free and more productive, the outdated farming practices that still exist in the country makes it difficult for this country to earn more income. This is the last but not the least reason why Nepal is a poor country. This is Why is Nepal a Poor Country?

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