Finance

Chandan Sapkota’s Blog

People usually focus on products trade while analyzing trade performance because it is easier to access data at the most disaggregated level. But, what about the ongoing services sector of Nepal? There are many studies that have superficially looked at services trade potential. But, the dynamism of this sector and its own potential to ensure structural transformation are studied significantly less than it is for merchandise trade (two recent studies that look at India’s services sector are here and here). Here is last year’s blog post about the relative competitiveness of services trade in comparison to merchandise trade. Nepal is bearing a negative trade balance in services trade since 2005 (see body below). Now, how competitive is Nepal’s services sector?

‘s exports of product j and world exports of product j, and Xit and Xwt make reference to the country’s total exports and total world exports. Computing RCA index for Nepal’s exports of every services sector category reveals that Nepal actually loves comparative advantage in every of these (this even though there is a trade deficit in three of the six sub-sectors).

  1. Bonded cashiers
  2. It would lower the currently record high household and personal debt levels we have
  3. Help clients concentrate on risk as much as they are doing on performance
  4. Connect SIM & cell phones
  5. Artocarpus altilis, Artocarpus elasticus, Artocarpus Cempedak/Terap

Clearly, Nepal struggles to exploit the ongoing services sector market potential despite having comparative benefit in its trade. The information comes from a recently available report on green growth in Asia and the Pacific. The local drinking water use per capita (471 cubic meters per capita in 2000) in Nepal is below the estimated minimum requirement.

Leakage, inadequate water quality, inefficient domestic drinking water use, and underinvestment in providing usage of basic services are common features in countries with low water use per capita. No real surprise that people in major urban centers can run their taps just for few hours each week. The work to channel water source from Melamchi is yet to be recognized even after so a long time of commencement of its structure. Domestic materials (including energy) intake is fairly low (fifth minimum-2.64 loads per capita in 2005) in comparison to other countries in the continent.

It signals the prospect of future growth by exploiting the available materials for usage and creation. Furthermore, per capita energy use is the 3rd least expensive (14.36 gigajoules per capita), accompanied by Bangladesh and Myanmar, in Asia and the Pacific. Note that countries with high energy use per capita tend to have high HDI value. Infrastructure investments should be guided by the principles of sustainability, accessibility, and social inclusiveness.

“Natural infrastructure” provides valuable but undervalued economic inputs. Natural capital investments will secure critical ecosystem services (such as drinking water regulation and overflow control), achieve cost benefits on infrastructure development, improve individual and environmental security, and can reinforce climate adaptation efforts through ecosystem-based version approaches. Sustainable management of natural capital also enhances the potential for ecosystem services for economic transformation-for example, where eco-tourism potential is developed as an economic development strategy. Investments should be targeted at key ecosystem services that hold particular value because of their economies and societies.

Sustainable agriculture is a critical aspect of maintaining and building natural capital. Greening of development requires integrated strategies that support systemic change in built-in, complementary, and mutually reinforcing ways. The complexity of challenges faced means a clear vision, targets, and monitoring approach are required. To ensure greater resilience, domestic policies also need to encourage diversification in key sectors, such as industry, agriculture, and energy. Approaches that improve the capacity of communities and economies to resist initial shocks and to self-organize and adjust to changing conditions will be increasingly important.

TEACHER: True. The only way to increase result completely over and above the full employment level is to increase efficiency. STUDENT: Sure. If we start from full employment and for some reason we begin to obtain more output from the same labor force, this gain in productivity means that potential GDP raises. But this is a slow process normally, right?