Course Title: Nepalese Economy

Course No: Eco. Ed 428 (Miner) Full marks: 100

Nature of the course: Theoretical Pass marks: 35
Level: B.Ed. Period per week: 6
Year: Second Total periods: 150
Time per period: 45 minutes

1. Course Description
This course is designed to acquaint the students with the nature, features, and performance of
Nepalese economy. The contents included in the course are characteristics of Nepalese economy,
issues of economic development, natural resources, human resources, sectoral status and
planning of Nepalese economy. The sectors of economy are comprised of agriculture, industry,
tourism, transport and communication, money and banking, foreign trade and government
finance. The course helps the students to appraise the Nepalese economy by bringing together
the existing resources and development practices to make perception for future economic
development of the country.

2. General Objective:
The general objectives of the course are as follow:
 To make the students familiar with characteristics of Nepalese economy and issues of
economic development in Nepal.
 To provide the students with the knowledge of natural resources.
 To provide the students with the knowledge of human resources.
 To make the students able to analyze the present state, problems and prospects of
agriculture.
 To make the students able to analyze the present condition, role, problem and prospects
of industrial development in Nepal.
 To make the students able to explain the role, problems, prospects of tourism
development in Nepal.
 To make the students able to describe the present condition of means of transportation
and communication with its role, problems and prospects.
 To make the students familiar with the present money and banking system.
 To familiarize the students with the policies trends and problems of Nepal’s foreign trade.
 To impart the concept to students of government finance.
 To orient the students with the outcome of development planning and Nepal’s current
plan.

3. Specific Objectives and Contents

Specific Objectives Contents
 To explain the major macro-economic Unit I: Introduction (7)
indicators 1.1 Major macro-economic indicators
 To describe the various characteristics 1.2 Characteristics of Nepalese economy
of Nepalese economy. 1.2.1 Demographic characteristics
1.2.2 Economic characteristics
 To explain the various constraints of 1.2.3 Technological characteristics
economic development. 1.2.4 Socio-cultural and political
characteristics
1.3 Constraints of economic development
 To find out the major issues of Unit II: Issues of Economic Development (12)
economic development of Nepal. 2.1 Poverty
 To explain the concept, types and 2.1.1 Concept, types, characteristics of poor
characteristics of poor. and measure of poverty reduction
 To describe the current situation of 2.1.2 Current situation of poverty
poverty. 2.2 Inequality
 To explain the concept, measurement 2.2.1 Concept and measurement of inequality
and current situation of inequality. 2.2.2 Current situation of inequality
 To explain the concept, types current 2.3 Unemployment
situation of unemployment. 2.3.1 Concept and types of unemployment
 To examine the issues of inclusion and 2.3.2 Current situation of unemployment
define obstacles of human resource 2.4 Issues of inclusion in economic development
development. 2.5 Human resource development: concept and
obstacles
 To evaluate the role and need of
2.6 Women empowerment: concept, role and
women empowerment in economic
need
development.
 To explain the current situation and Unit III: Natural Resources (18)
role of forest resource and biodiversity 3.1 Forest Resources
in economic development. 3.1.1 Current situation and role of forest
 To explain the problems, prospects resource and biodiversity in economic
and policies of forest resource development
development. 3.1.2 Problems, prospects and policies of
 To describe the current situation, forest resource development
problems, prospect and importance of 3.2 Water Resources
water resource in terms of irrigation, 3.2.1 Current situation, problems, prospect
drinking water, sanitation and and importance of water resource in
hydropower development. terms of irrigation, drinking water,
 To describe government’s current sanitation and hydropower development.
integrated policies of water resource 3.2.3 Government’s current integrated policies
development. of water resource development including
 To describe the current situation, role, the irrigation, drinking water/sanitation
problems and prospects of mineral and hydro power sector.
resource. 3.3 Mineral Resources.
 To describe the government’s current 3.3.1 Current situation, role and problems of
policy of mineral resource mineral resources
development. 3.3.2 Government’s current policy of mineral
resource development
 To describe the current situation, role,
3.4 Land Resources
problems and prospects of land
3.4.1 Current situation, problems and
resource.
prospects of land resources
 To describe the government’s current
3.4.2 Government’s current policy of land use
policy of land use pattern and land
pattern and land resource development
 resource development.
 To describe the condition of 3.5 Environment and natural resource
sustainable development through management
environment and natural resource
management.
 To explain importance, process, UNIT IV: Human Resources (12)
sources and problems of human 4.1 Human resource development
resource development. 4.1.1 Importance, process, sources and
 To evaluate the condition of human problems
development index of Nepal. 4.2 Human development index of Nepal
 To describe the size, composition, 4.3 Size, composition, distribution and growth
distribution and growth of Nepal's of Nepal's population
population. 4.4 Causes and impact of rapid population
 To evaluate causes and impact of rapid growth.
population growth on Nepalese 4.5 Current population program
economy. 4.6 Current population policy of Nepal.
 Review the current population
program and policy in Nepal
 To explain the characteristics, role, UNIT V: Agriculture (20)
problems and prospects of agriculture. 5.1 Characteristics, role, problems and prospects
 To explain the problems of Nepalese 5.2 Agricultural land
agriculture focusing on agricultural 5.2.1 Pattern of landholding, land tenure
land holding and land tenure system. system, land reform efforts and act
 To evaluate the government land 5.3 Agricultural production
reform efforts and land reform act.
5.3.1 Major food-crops, cash-crops and spices
 To describe the present area under
food-crops and cash-crops and their 5.3.2 Imports and exports of agro-products.
production. 5.3.3 Major reasons behind fluctuations in
 To measure the status of imports and agricultural production and productivity.
exports of agro-products. 5.4 Agricultural labour force: size and problems
 To measure the size and problems of 5.5 Agricultural marketing: nature, problems
agricultural labour force and and prospects
agriculture production and 5.6 Agricultural price policy: importance, causes
productivity.
of price instability and measures of price
 To explain the nature and problems of
agricultural finance, marketing and stability
pricing. 5.7 Agriculture finance: importance, sources and
 To explain the causes of food problems
insecurity and vulnerability. 5.8 Food security and nutritional requirement.
 To explain the need of co-operative in 5.9 Causes of food insecurity and vulnerability
agriculture development. 5.10 Need of co-operative in agriculture
 To evaluate the government policy of development
agriculture development.
5.11 Government policy of agriculture
development
 To explain the current status, role, UNIT VI: Industry (16)
problems and prospects of cottage and 6.1 Cottage and small scale industries
small scale industries. 6.1.1 Current status (number and
 To explain the current status, role, employment), role, problems and
problems and prospects of medium prospects
scale and large scale industries. 6.2 Medium scale and large scale industries
 To explain the current status of foreign 6.2.1 Current status (number and
investment (number and employment). employment), role, problems and
 To understand the concept of special prospects
economic zone. 6.3 Current status of Foreign investment
 To explain the problems and prospects (number and employment)
of manufacturing industry. 6.4 Special economic zone
 To explain the problems and prospects 6.5 Manufacturing Industry: problems and
of agro-based industry. prospects
6.6 Agro-based Industry: problems and
 To describe current status of public
prospects
enterprises of Nepal.
6.7 Current status of public enterprises
 To find out the recent industrial
6.7 Recent industrial policy
policy.
 To define the concept of internal and UNIT VII: Tourism (11)
external tourism policy. 7.1 Concept of internal and external tourism
 To explain the role, problems and 7.2 Role, problems and prospects of tourism
prospects of tourism industry in Nepal. industry
 To identify the number of tourist 7.3 Current situation of tourism industry
arrival and country of origin. 7.3.1 Number of tourist arrival and country
 To explain the growth and trend of of origin, annual growth rate and trend
tourist arrival. of tourist arrival and average length of
 To identify the average length of stay stay of tourist and its trend
of tourist and its trend. 7.4 Purpose of tourist arrival and destination
 To define the purpose of tourist arrival zone.
and destination zone. 7.7 Review of tourism policy and program under
globalization
 To review of tourism policy and program
7.8 Current government tourism development
under globalization.
policy
 To examine current government
tourism development policy.
 To describe the current situation of UNIT VIII: Transportation and
means of transportation and Communication (4)
communication. 8.1 Current situation of means of transportation
 To explain role, problems and and communication
prospects of transportation and 8.2 Role, prospects, problems and remedies of
communication. transportation and communication
 To define the concept of money and its Unit IX: Money and Banking (12)
supply process. 9.1 Concept of money and its supply process
 To understand the share market trend 9.2 Share market trend in Nepal
in Nepal. 9.3 Current status and role of money and capital
 To understand the current status and market
 role of money and capital market. 9.4 Function and role of Nepal Rastra Bank in
 To explain the function and role of economic development.
Nepal Rastra Bank. 9.5 Current monetary policy of Nepal Rastra
 To evaluate current monetary policy of Bank
Nepal Rastra Bank. 9.5 Function of commercial bank and role of
 To explain function of commercial commercial bank and non-banking financial
bank and role of commercial bank and institution in economic development.
non-banking financial institution in
economic development.
 To state the foreign trade situation Unit X: Foreign Trade (11)
with volume and growth. 10.1 Foreign trade situation with volume and
 To show the composition and direction growth.
of Nepal's foreign trade. 10.2 Composition and direction of foreign
 To identify the possible export zone of trade.
commodity with reference to WTO 10.3 Balance of trade and payment
perspectives. 10.3 Prospect of foreign trade expansion
 To explain the reasons of growing 10.4 Reasons of growing foreign trade deficit
foreign trade deficit. 10.5 World Trade Organization (WTO):
 To examine opportunities and opportunities and challenges for Nepal as
challenges for Nepal as a member of a member of WTO
WTO. 10.6 Recent trade policy.
 To evaluate current trade policy of
Nepal.
 To explain importance of government Unit XI: Government Finance (16)
finance. 11.1 Importance of government finance
 To describe the importance, 11.2 Government expenditure
classification and trend of government 11.2.1 Importance, classification and trend of
expenditure. government expenditure
 To explain the source and trend of 11.3 Government revenue
government revenue. 11.2.1 Source and trend of government
 To analyze the financing resource gap. revenue
 To explain the type, role and 11.4 Financing resource gap
magnitude of foreign aid. 11.5 Foreign aid
 To describe the internal and external 11.5.1 Type, role and magnitude of foreign
sources of public dept. aid
11.6 Public debt
 To explain the burden of public debt to
11.6.1 Source and burden of public debt.
the people.
11.7 Foreign employment and remittance
 To review the development Unit XII: Development Planning (12 )
performance of agriculture, industry, 12.1 Review of development performance of
social service sector during various agriculture, industry, social service sector
plan periods. during various plan periods
 To overview through macro 12.2 Macro perspective overview of National
perspective to national income,
income, investment and saving during
investment and saving during plan
periods. plan periods
  To explain the objectives, priorities, 12.3 Review of immediate past plan
strategies, policies, source and 12.4 Current Plan: Objectives, priorities,
allocation of resources of the current strategies, policies, source and allocation
plan. of resources
 To evaluate the need of planning and
12.5 Need of planning and plan formulation
plan formulation process in Nepal.
process in Nepal
Note: The figures in the parenthesis indicate the approximate period for the respective units.

4. Instructional Techniques
4.1 General Instructional Techniques
 Lecture
 Discussion
 Demonstration.
 Inquiry and question answer.
 Writing articles
4.2 Specific Instructional Techniques
Unit I, II & III:
 Library consultation
 Review of materials by students
Unit IV, V & VI:
 Peer and group work discussion
Unit III to VIII & X:
 Practice to prepare the separate brief article on natural resources, human resources,
agriculture, industry, transportation and communication, tourism sector and foreign trade
in Nepal,
Unit XI & XII
 Group discussion to analyse the government’s revenue, expenditure, foreign aid and
debts
 Review of past planning documents and presentation in class room.

5. Evaluation Scheme
Students will be evaluated on the basis of classroom tests, class participation, presentation of the
reports and other practical activities. The scores obtained will not be considered in the annual
examination. It will be used only for feedback purposes. The office of the Controller of
Examinations, Tribhuvan University will conduct annual examination at the end of year to
evaluate student’s performance. The types, number and marks of the subjective and objective
questions will be as follows.

Subjective and objective questions

Types of questions Total questions Number of questions Total
to be asked to be answered and marks
marks alloted
Group A: Multiple choice items 20 questions 20 x 1 mark 20
Group B: Short questions 8 with 3 alternative 8 x 7 marks 56
 questions
Group C: Long questions 2 with 1 alternative 2 x 12 marks 24
question

6. Recommended Books and References

Recommended Books
Dahal, M.R. and Paudel M.R. (2070). Quantitative Techniques and Nepalese Economy.
MK Publisher and Distributers Ltd. (For Unit I to X)
Panta, Y.P (1974), Economic development of Nepal, S. Chand and Co. Delhi. (For Unit I
to IX)
Shrestha, B.P. (1981), Nepalese economics, Kathmandu: Ratna Pustak Bhandar. (For
Unit I to IX)
National Planning Commission (Various Years). First to Current Periodic Plans,
Kathmandu: National Planning Commission (For Unit XI).
Ministry of Finance (Various Years). Economic Survey. Kathmandu: Ministry of Finance,
Nepal Government.

References
Dahal, M.K et all. (1999). Development challenges for Nepal Kathmandu: NEFAS -
Embassy of Finland, Kathmandu.
Dahal, M.K. (2001). Future of Nepalese economy, Kathmandu: NEFAS-FES,
Rastogi, A.K. (2002). Rural development strategy, Jaipur: Wide Vision
Sharma N.K. (2069). Nepalko Arthasastra (4th ed.), Kathmandu: Pairabi Prakasan.
Bista R.B. (2016), Economics of Nepal (3rd ed.). Kathmandu: New Hira Books.
National Planning Commission first to current plan, Kathmandu: National Planning
Commission
Ministry of Finance (2015 and 2016), Economic Survey and budget speech, Kathmandu:
Ministry of Finance
Nepal Rastra Bank (2015 and 2016), Various Publications, Kathmandu
World Bank (Various Years). World Development Report. Washington DC: World Bank.