Chapter 1-Concept of National Development_Nov2024.pdf
HariKrishnaShrestha1
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About This Presentation
Evolution of the development concepts, winners and losers in the process of national development, core values of development, factors and indices of development, intrinsic and extrinsic causes of underdevelopment, common features of developing countries, Human Development Index, Gross National Happi...
Evolution of the development concepts, winners and losers in the process of national development, core values of development, factors and indices of development, intrinsic and extrinsic causes of underdevelopment, common features of developing countries, Human Development Index, Gross National Happiness, State-led, market-let, NGO-led and community-led development models, mixed models of investment in infrastructure, public private participation, foreign direct investment, banks and financial institutes' investment in infrastructure
Size: 6.63 MB
Language: en
Added: Mar 08, 2025
Slides: 88 pages
Slide Content
Construction Management in Developing Countries
ECM 623
Chapter 1
Prof. Dr. Hari K. Shrestha [email protected]
1
CM in Developing Countries/Ch 1_HKS Updated: November 21, 2024
1.1 Defining Development:
Multiple definitions of development
1. The systematic use of scientific and technical knowledge to
meet specific objectives or requirements.
2. The process of economic and social transformation that is
based on complex cultural and environmental factors and their
interactions.
3. Development is the act of expansion and growth: growth of the
economy, growth of the people and the people's quality of life.
Which definition of development is the best, and why?
You may propose your own definition, and defend it.
4
Development Thinking and Policy Involves
•Different meanings of development over
time (what for?, how to measure?)
•Different dimensions – economic, social,
environmental, political-legal, science-
technology, institutional, governance,
military
•Different Stakeholders: development for
whom? At what cost?
•Different Contexts: Cultural values, social
practices, ecological conditions
5
Major Traditional Approaches and
definitions of development
Perspectives Definitions
•Modernization: Development is state-led economic growth –
industrial modernity; China as a good example.
•Government as the prime agency to plan & execute dev. projects
•Development is government’s responsibility
•Government not only facilitates but also operates dev. Projects
सरकारले विकासको नीवि,ऐन,वनयम र काययविविमात्र हैन विकास आयोजनाहरू बनाई कायायन्ियन र सन्चालन समेि गननय
पर्यछ। वनजी क्षेत्र नाफामनखी हुन्छ,वनजी क्षेत्रले गरेको विकास वर्गो भरपर्ोहुुँर्ैन। जहाुँ नाफा त्यहाुँ लगानी हुुँर्ा जनिाका
आिारभनि आिस्यकिा अपनरो रहन्छ। वनजी क्षेत्रले बच्ने सेिा र सामग्री महुँगो भई विकासको फल जनिाको पहुुँच बावहर हुन्छ।
6
State-led: Government takes
responsibility of all essential sectors.
•National Security (external/internal)
•Law and Order
•Food Security (production/distribution)
•Basic Production/Industry
•Education and Research
•Health and Pharmacy
•Infrastructure (transportation,
energy…)
•Water Supply, Sewerage, Sanitation
•Conservation (nature and heritage)…
9
China vs. U.S.A.
Brenda P. Wenning, Dec23,2019
“The U.S. has retained its position of being the world’s largest
economy since 1871,” according to Investopedia. “The size of the
U.S. economy was at $20.49 trillion in 2018 in nominal terms and
is expected to reach $21.35 trillion in 2019.”
China’s nominal gross domestic product (GDP) is $13.41 trillion,
making it second to the United States, but its GDP based on
purchasing power parity (PPP) is $25.27 trillion, exceeding that of
the United States. Then again, China is known for exaggerating
its growth, so the numbers may not be accurate.
With a population of 1.43 billion people, compared with about 329
million in the United States, China has a population that’s more
than four times the size of the U.S. population. American
companies that need to continue growing have become
dependent on the world’s largest consumer market. China,
meanwhile, needs America’s technology and innovation.
https://www.patriotledger.com/news/20191223/china-vs-usa
10
11
State-led development?
Opponents of state-led development points towards
failure of government lead projects and collapse of
countries which followed state led development.
If the Government of Nepal properly
used all the ODA it received up to now?
2000-2018: Nepal received ODA
NPR 277.9 Billion. Where is the money?
12
Motorbike hill at Koteshor Traffic
Police Station;
Resources unused is resources
wasted!
Resources, if unmanaged, can
turn into problem!
•Neo-liberalism
Development is Market-led economic growth.
Policy: Get prices right; curb state failure through structural reform
(deregulation, liberalization, privatization); USA, UK, India after Rajiv Gandhi, as
examples. Government should facilitate, not meddle, nor compete with the
market, in development process.
सरकारले विकासको नीवि,ऐन,वनयम र काययविवि बनाई विकासका आयोजनाहरू कायायन्ियन र सन्चालन गने िािािरण बनाउने र सहजीकरण
गने हो। सरकारले नै उद्योग खोल्ने भए उद्योगपविहरूले के गने? सरकारले नै व्यापार गने भएव्यापारीहरूले के गने?वनजी उद्योगले वनयम विगारे,
कमसल सामग्री बेचे,सरकारले वनयमाननसार कारिाही गने हो। सरकारीउद्योगले वनयम विगारे,कमसल सामग्री बेचे,कारिाही कस्ले गने?
सरकारले सरकारी उद्योगको वनयमन अननगमन गने? सरकारी उद्योग घाटामा गए त्यसको वजम्मेिारीजनिाले व्यहोननय पने हुन्छ। सरकारी उद्योग
खोल्र्ा,व्यापार गर्ाय,समिल खेल मैर्ान हुुँर्ैन एकाविकारको िािािरण सृजना हुन्छ, मनल्य र गनणस्िरमा प्रविस्पिाय हुुँर्ैन। जनिाले क्षवणक राहि
महसनस गछयन्, सस्िोमा पाएको भान मात्र हुने हो। विकास न र्ीघयकालीन न चनस्ि हुन्छ। वनजी क्षेत्र सवम्मवलि विकास र्ीघयकालीन र चनस्ि हुन्छ।
•NGO led Development: When government is weak, market does not function,
civic society is incapable, NGO can lead development
NGOs as partners of development, with link to the grass root and the
donors/sponsors/government
NGOs can focus, where central level government tend to neglect.
•Alternative Development: is community-led development should be equitable,
sustainable, participatory.
Themes: state & market failure; participation; local development Bottom up
approach to development; local level planning, not central level planning, more
role of think tanks, citizen groups, …
13
14
Neo-liberalism: Privatization/market to lead development
Critical view on the traditional approach of development:
•Focus should be on Human development :
Human capacitation and empowerment
Themes: Human resource development, HDI
•Challenges the basic notion of the traditional concept of
development.
•Development is destructive, Western concepts and forced on
indigenous societies. “Consumption level” unrelated to
development.
•Development for whom? Don’t need development at “our”
cost.
•Themes: Local level development, Gandhian thinking, “small
is beautiful”, should be locally manageable, decentralized
development
•Environmental movements and sustainable development.
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The new economic view of
development
Dudley Seers (1969)
Economic growth is necessary for national development; however,
the growth should result in measurable decline in
•Poverty
•Unemployment and
•Inequality
If one or two of these central problems have been growing worse,
especially if all three have, it would be strange to call the result
DEVELOPMENT even if per capita income doubled. Seers challenged
the notion that economic growth automatically results in societal
development.
17CM in Developing
Countries/Ch 1_HKS
(1920-1983)
Do you agree with Seer’s notion of development?
What are the assumptions (background realities)
behind his notion?
आवथयक िृवि सुँगसुँगै गरीबी,बेरोजगारी,र अनसमानिा
घटे मात्र र्ेश विकास भएको भन्न वमल्छ। आवथयक िृवि
र्ेश विकासको अपूरो सम्िाहक हो।
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Why hunger in India is worse than in Nepal: 10 points
TIMESOFINDIA.COM, Oct 13, 2017
https://timesofindia.indiatimes.com/india/why-hunger-in-india-is-worse-
than-in-nepal-10-points/articleshow/
Flaw in economic growth as development evident during Covid-19 pandemic
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1.2 Denis Goulet’s Three Core Values of Development (1971)
–Life Sustenance: The ability to meet basic needs: food &
water, shelter, health, education and protection
आिारभनि आिस्यकिाहरूको पररपूविय
➢Self-esteem: A sense of worth and self respect (to be a
person); each person should be given his due respect
and due right
आत्मसम्मान/स्िवभमानसाथ बाुँच्न पाउने िािािरण (र्ेशको नागरीकहुननमा गिय गने वस्थवि)
➢Freedom from Servitude: To be able to choose; the
emancipation from alienating material conditions of life
and from social servitude to nature, ignorance, other
people, misery, institutions and dogmatic beliefs.
Human freedom encompasses various components of
political freedom like personal security, the rule of law,
freedom of expression, political participation, and
equality of opportunity.
स्ििन्त्रिापूियक स्िेच्छाले रोज्न पाउने अविकारको रक्षा (रोजेकै कारणले भेर्भाि नहुने अिस्था)
CM in Developing Countries/Ch 1_HKS
https://economicsconcepts.com/new_economic_view_of_development.htm
Capability approach
Amartya Sen
•What a person is, or can be, and does or can do?
•5 Disparities
1.Personal heterogeneities – age, gender,
disabilities, illness etc.
2.Environmental diversities
3.Variations in social climate
4.Relational perspectives
5.Distribution within family
22CM in Developing Countries/Ch 1_HKS
A ma rty a S en NI H. jpg
23
Sen attempts to expand the basic interpretations of freedom by
examining five elemental forms of instrumental freedoms:
(1)political freedoms, (2) economic facilities, (3) social
opportunities, (4) transparency guarantees, and ( 5)
protective security.
These forms of freedom are complementary, remaining
interrelated and inextricable.
For Sen, these freedoms constitute not only the means, but
also the ends in development. Poverty, Sen asserts, should
be seen "as a deprivation of basic capabilities, rather than
merely as low income" ( Sen, 1999), contesting the general
belief amongst economists who view income as the be all and end
all of development.
He is known for bringing an "ethical dimension" to a field
dominated by technical specialists. Based on the example of the
former Soviet Union, Sen argued that political liberties are
necessary for sustainable development
व्यविमा वनवहि क्षमिाको पूणयसर्नपयोग हुने िािािरण विकासको मापर्ण्ड हो। उि
िािािरण भए/नभएको मूल्याङ्कण गने पाुँच मापनहरू मावथवर्इएका छन्।
25
1.3 Three Broad Objectives of National
Development
1. To increase the availability and widen the
distribution of basic needs
•Food, shelter, health and protection
•Rising per capita incomes
•Elimination of absolute poverty
•Greater employment opportunities, and
•Lessening income inequalities
are necessary but not the sufficient conditions for
development.
CM in Developing Countries/Ch 1_HKS
Despite Having Robust Economic Growth, India is Backward in Healthcare, Sanitation, &
Drinking Water
https://thewaternetwork.com/article-FfV/despite-having-robust-economic-growth-india-is-backward-in-healthcare-sanitation-drinking-water-
cL0PKwlcSTru0LUgrdRKXA, Feb 2016
2nd Covid-19 Wave: Revealed weakness and vulnerability of Indian healthcare system, despite
boasting as global powerhouse of pharmacy and success in medical tourism.
26
2. To raise levels/standard of living:
Enhanced material well -being
as well as greater
individual and national self-esteem
3.To expand the range of economic
and social choices
Free from servitude and dependence
Three Broad Objectives of National Development
CM in Developing Countries/Ch 1_HKS
Any differences from Gaulet’s three core values of development?
31
Seven Categories of Human Security: Are these the objectives of Development?
The characteristic of human security today is multidimensional andintricate. Therefore, it was defined with seven categories by
the UN (See Human Development Report,1994): economic, food, health, environmental, personal, community and political.
Economic security isjob security and assures basic income. Food security doesn’t only mean availability of food, but also
economic access to food. Health security covers different conditions such as access to health services and to safe water.
Environmental security ranges over many issues such as prevention of air pollution,irrigated land conservation and prevention
of natural disasters. Personal security includes protectionfrom domestic violence, child abuse and suicide. Community security
means conservation of traditionsand cultures commonly valued in communities. Political security mainly signifies protection of
humanrights.
United Nations. (2016). Human Security Handbook. New York: United Nations.
32
1.4 Sources of (under)development
(intrinsic and extrinsic)
Intrinsic (factors that are within national control)
•Attitudes and aptitudes of the decision makers
1.Attitudes and culture of the people;
2.Attitude towards: (a) change and development, (b) foreign direct investment, (c)
research and innovation
3.Aptitudes (natural capacity/tendency) and behavior of the elites and leaders to
effectively deal with internal and external developmental issues
•Legal structures and institutions in place
4.Politics: Political stability, policy stability, legal stability
5.Governance: facilitate versus red tape, degree of transparency/corruption
6.Rule of law: uniform, fair and predictable application of law
7.Democracy/Bureaucracy/autocracy
8.Local capital market
9.Security: financial and personal /physical
•Institutional Set up to facilitate development process
10.Coordination and cooperation among the institutes
11.One door versus multi layer clearance/approval
Several theories of underdevelopment: (For long list of theories of underdevelopment: http://www.professor-
frithjof-kuhnen.de/publications/causes-of-underdevelopment/0.htm )
CM in Developing Countries/Ch 1_HKS
33
Extrinsic factors (factors that are beyond national control):
1. Geopolitical and commercial interest that it creates compared to other countries;
(Porter’s Diamond Model); free access to international market, country’s need to
proactively compete to attract FDI, grant/loan, technology transfer
2.Place of a country in a historical and cultural system; membership in multinational
organizations, like UN, Common Wealth, ASEAN, BIMSTEC, SAARC, SAFTA
3.“Reforms” imposed in counterpart by multilateral organizations (like the IMF,
World Bank, IFC, ADB, AIIB) to get out of situations of deficit and indebtedness
in which the country is placed.
4.Lack of interest in and comprehension for the specific dynamics of a nation, by
multinational companies.
5.Changes in financing/funding policies of multinational/multilateral organizations
6.Global Climate Change
7.Changes in policies and priorities of donor countries, and UN System
8.Protectionism of other countries
9.Level of conflict among neighboring countries
10.Image of country (business friendly, safety of investment and personnel,
infrastructure, availability of human resources, reliability of power/energy,
transparency, level of corruption, intellectual property right…) portrayed in
influential foreign media and embassy advisory
Sources of (under) development….(Contd.)
CM in Developing Countries/Ch 1_HKS
34
Impacts on CMDC (not DC)
Intrinsic Factors InvestmentWork cultureQuality… …
Attitudes and aptitudes
Attitudes and culture of the people
Attitude towards: (a) change and development, (b) foreign direct
investment, (c) research and innovation
Aptitudes (natural capacity/tendency) and behavior of the elites/leaders
to effectively deal with internal/external developmental issues
Legal structures and institutions
Politics: Political, policy and legal stability
Governance: facilitate versus red tape, degree of transparency
Rule of law: uniform, fair and predictable application of law
Level of corruption: financial, nepotism, intervention
Local capital market: culture and capacity
Security: financial and personal /physical
Institutional set up to facilitate development
Institutional coordination/cooperation
Internal displacement due to civil war, terrorism
Chapter 1 Assignment; File Name: CRN_Initial_Chap1 Assignment
Ex.: 30_XYZ_Chap1 Assignment1
You may edit this matrix!!
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Extrinsic Factor Impact on CMDC (not DC)
Geopolitical and commercial interest that it creates
compared to other countries
Place of a country in a historical and cultural system
“Reforms” imposed in counterpart by multilateral
organizations
Lack of interest in and comprehension for the specific
dynamics of a nation, by multinational companies
Changes in financing/funding policies of
multinational/multilateral organizations, eg. WCD
Changes in policies and priorities of donor countries, and
UN System, like changes in hiring, visa policy
Protectionism of other countries
Image of country portrayed in influential foreign media,
embassy advisory, UN reports, Global Survey reports
Technological type and technology level changes
Global Climate Change
Global Pandemic, Terrorist activities, War, Trade
Embargo, Major accidents,
Similar heading as in previous slide
36
Extrinsic Factor Impact on CMDC (not DC)
Changes in Policies and Priorities of donor
countries, funding agencies, UN system and
other supranational agencies
State of conflict among neighbouring
countries
Image of country: Business friendliness
Safety of investment and personnel
Existing infrastructure
Human Resources and physical resources
Reliable energy supply
Transparency and level of corruption
Intellectual Property Right
Position in different index
Media
Embassy Advisory Similar heading as in previous slide
You may add other factors.
37
Impacts on CMDC
Impact Factors
FDIQuality of
Works
Sustainability of
project outcome
High level of Bribery
Weak and uncoordinated regulatory institutional setup
Weak unregulated financial institutions
Legal structures and institutions
Politics: Political, policy and legal stability
Rule of law: uniform, fair and predictable application
of law
Level of corruption: financial, nepotism, intervention
Local capital market: culture and capacity
Security: financial and personal /physical
Institutional set up to facilitate development
Institutional coordination/cooperation
1.5 Measures of Development
(Development Level Indicators/Indices)
Genuine Progress Indicator
•GPI: Among the things it considers are income
distribution for each country, along with household
and volunteer work (activities that enhance welfare
but do not involve monetary transactions), and, for
example, the cost ofenvironmental degradation.
Ecological Economicsdoi: 10.1016/j.ecolecon.2013.04.019 (2013)
38
Don’t confuse parameters with
indices!, GPI, HDI, GNH… are
indices not parameters.
Measuring development
Traditional Economic Measures
Traditional economic measure (before 1970)
– Capacity of national economy
– Per capita income or per capita GNP
– Gross Domestic Product (GDP): Simon Kuznets, 1934
– Industrialization: manufacturing & service industries
– Social indicators – literacy, health, housing etc.
Issues like poverty, discrimination, unemployment, and
income distribution were not considered
39
CM in Developing Countries/Ch 1_HKS
Some recent thoughts on Nepal’s development:
http://kathmandupost.ekantipur.com/news/2016 -12-05/political-bickering-unsafe-for-
nepal.html
42
The economic growth rate does not necessarily match with the
development rate of a nation because the parameters of economic
growth and national development are different .
Nevertheless, here's a look at thefivefastest growing
economiesin2021, based on IMF's April 2021projections.
Libya. 2020: (59.72%)2021: 130.98% 2022: 5.44% ...
Macao SAR. 2020: (56.31%) 2021: 61.22% 2022: 43.04% ...
Maldives. 2020: (32.24%)2021: 18.87% ...
Guyana. 2020: 43.38% 2021: 16.39% ...
India. 2020: (7.97%)2021: 12.55%
HDI as a development indicator
The Human Development Index (HDI) is a composite statistics
used to rank countries by level of "human development" and
distinguish "very high human development", "high human
development", "medium human development", and "low human
development" countries. The Human Development Index (HDI),
developed by Dr. Mahboob ul Haq of Pakistan, is a comparative
measure of life expectancy, literacy, education and standards of
living for countries worldwide. It is a standard means of measuring
well-being, especially child welfare. It is used to distinguish
whether the country is a developed, a developing or an under-
developed country, and also to measure the impact of economic
policies on quality of life.
43
We aim to shift the focus of development economics from
national income accounting to people-centered policies. UNDP
44
New method to calculate HDI (2010)
46
Source: Nepal HDI Report 2020
47
Nepal HDI: 0.579, 2018
49
HDI across 15 eco-development regions, Nepal, 2011
Source: Nepal Human Development Report 2014
Link to Nepal Human Development Report 2020:
https://un.org.np/sites/default/files/doc_publication/2020-12/UNDP-NP-
NHDR-2020.pdf
50
Nepal’s Position: 157 in 2011 and 2012. Nepal’s HDI 0.458 (2011) and
0.463 (2012), South Asia HDI 0.558 (2012).
HDI Report 2013, as reported in Aarthik Abhiyan Rastriya Dainik,
March 16, 2013, page 1
Nepal’s Position: 147 in 2018 (UNDP’s HDI Report, 2019 )
PositionHDI
Life
Expectancy
Expected Years of SchoolMean Years of SchoolGNI PPP $
1470.579 70.5 12.2 4.9 2,748
52
UNDP’s Nepal rank in HDI: 146 out of 193 countries and territories in
2023, which is 3 places higher than in 2021.
Nepal’s progress on HDI value is 0.010, higher than the global
average of 0.004.
Between 1990 and 2022, Nepal’s HDI value changed from 0.395 to
0.601, representing a change of 52.2 percent.
With its new HDI, Nepal has been placed in the Medium HD Category
(countries with HDI between 0.550 to 0.699)
From 1990 to 2022 : Nepal’s life expectancy at birth changed by
15.7 years, expected years of schooling changed by 5.4 years and
mean years of school changed by 2.1 years. Nepal’s GNI per capita
changed about 165.7 percent.
My Republica: 15 March 2024
Gross National Happiness as a
development indicator (2008)
9 Domains and 33 Indicators of GNH:
1.Psychological Well being
2.Health
3.Time use
4.Education
5.Cultural diversity and resilience
6.Good governance
7.Community vitality
8.Ecological diversity and resilience
9.Living standard
Source: www.grossnationalhappiness.com
Nepal ranked in 121
st
position in Happy Country in 2015 .
World Happiness Report 2015; http://81c27a5d9c3263e8ebcc -
2da201d1ba4d5004cb235610c26ba057.r67.cf5.rackcdn.com/WHR15.pdf
55
58
2024
2021 World Happiness
Report: Top ten
happiest countries
1.Finland
2.Denmark
3.Iceland
4.Switzerland
5.Luxemburg
6.Israel
7.Netherlands
8.Sweden
9.Norway
10.New Zealand
Factors: GDP per
capita, social support,
healthy life expectancy,
freedom of choice,
generosity, and
perceptions of
corruption
59
Nepali Times, 5 Dec 2024
60
Common Parameters between HDI and GNHNon-Common Parameters between HDI and
GNH
Formula to calculate HDI:
Numerical Example:
62
Physical Quality of Life Index
Morris D. Morris developed"Physical Quality of Life Index (PQLI)" . He
included three indicators like life expectancy, infant mortality rate and
literacy rate. For each indicator he devised a scale which includes the
numbers ranging from 1 to 100 where 1 represents the worst performance
by any country and 100 is the best performance. For life expectancy, the
upper limit of 100 was assigned to 77 years which was achieved, by
Sweden in 1973, and the lower limit of 1 was assigned to 28 years which
was the life expectancy of Guinea-Bissau in 1960.
Within these limits each country's life expectancy figure is ranked from 1 to
100. As the midway between the upper and lower limits of 77 and 28 years
is 52 years will be assigned a rating of 50. Similarly, for infant mortality,
the upper limit was set at 9 per thousand was achieved by Sweden in 1973
and the lower limit at 229 per thousand was achieved by Gabon in 1950.
The minimum rate regarding IMR was rated 100, while the highest IMR
was given the scale of 1. Whereas the literacy rates, measured as
percentages from 1 to 100, provide their own direct scale. Once a
country's performance in life expectancy, infant mortality and literacy has
been rated on the scale of 1 to 100, the composite index for the country is
calculated by averaging the three ratings, giving equal weight to each.
http://www.economicsconcepts.com/physical_quantity_of_life_index.htm
63
Countries Per Capita GNP in DollarsPQLI
Gambia
Angola
Sudan
Pakistan
Saudi Arabia
India
Iraq
Qatar
Tanzania
Zimbabwe
Brazil
China
Sri Lanka
Singapore
Taiwan
Cost Rica
348
790
380
349
12720
253
3020
27790
299
815
2214
304
302
5220
2503
1476
20
21
34
40
40
42
48
56
58
63
72
75
82
86
87
89
64
Countries fall into four broad human development categories,
each of which comprises 47 countries:
•Very High Human Development,
•High Human Development,
•Medium Human Development and
•Low Human Development (46 countries in this category).
1. Developed countries (Canada, United States, European Union
members, Japan, Israel, Australia, etc.)
2. Countries with an economy consistently and fairly strongly
developing over a longer period (China, India, Brazil, South
Africa, Costa Rica, Mexico, Egypt, much of South America, etc.)
1.6 Countries are often loosely placed
into four categories of development:
CM in Developing Countries/Ch 1_HKS
3. Countries with a patchy record of development (most
countries in Africa, Central America, and the Caribbean
excepting Jamaica (category 2); much of the Arab world fall in
this category)
4. Countries with long-term civil war or large-scale breakdown of
rule of law or non-development-oriented dictatorship ("failed
states") (e.g. Somalia, Sudan, Myanmar)
Nepal ?
65CM in Developing Countries/Ch 1_HKS
Nepal to be upgraded from LDC category
With the preparatory period of five years, Nepal
will graduate to a middle-income developing
country by December 2026.
In the last two triennial reviews conducted in
2015 and 2018, Nepal had met two of the three
criteria related to the human asset index and
economic vulnerability index. It couldn’t,
however, meet the per capita income criterion.
https://bit.ly/3cKPtob
https://kathmandupost.com/money/2021/11/25
/un-approves-proposal-to-upgrade-nepal-from-
ldc-category
I ma g e: GDP nomina l per ca pita world ma p I M F fig ures for y ea r 2006. png
1.7 Common and Different
Characteristics of Developing Countries
67CM in Developing Countries/Ch 1_HKS
No. of independent countries in the world: 1946: 76; 2020: 195
68CM in Developing Countries/Ch 1_HKS
High population
growth rate &
dependency
Low level of living
(low income,
inequality, poverty)
Low level of
productivity
Agro-based
economy
Unemployment &
underemployment
Traditional
Technology
Under utilization of
natural resources
Foreign trade
orientation
Low concern over
time
Low moral
orientation
1.7 Ten Common Features of Developing
Countries
1. High population growth rate and dependency
Nepal as an example:
•Total population - 23151423 (2058 BS, 2001AD)
•Population growth rate - 2.25 %
•Would be double by 2095 BS (2039)
•2010: 29959364
•2009: 29432743
•2008: 28905358, according to the World Bank.
69CM in Developing Countries/Ch 1_HKS
1.7 Ten Common Features of Developing Countries
http://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=sp_pop_grow&idim
=country:NPL&dl=en&hl=en&q=population+growth+rate+nepal
April 27, 2021:
29,563,546
The current population of Nepal in 2021
is29,674,920, a1.85% increasefrom 2020.
The population of Nepal in 2020 was29,136,808,
a1.85% increasefrom 2019.
The population of Nepal in 2019 was28,608,710,
a1.83% increasefrom 2018.
The population of Nepal in 2018 was28,095,714,
a1.68% increasefrom 2017.
What effect does high
population growth rate and
dependency has on CMDC?
2. Low level of living (low income, inequality, poverty)
S. No. Countries GDP per capita
(US $)
HDI
(177)
1 China 2000 81/101
2 Bangladesh 450 140
3 Bhutan 1430 133
4 India 820 128/134
5 Maldives 3010 100
6 Nepal 320/640 (2005) 142/157
7 Pakistan 800 136
8 Sri Lanka 1310 99
70
Economic Survey July 2008/2011. HDI calculation method changed since 2010.
CM in Developing Countries/Ch 1_HKS
GDP Growth Rate: 2008/9/10/11: 6.1/ 4.9/ 4.6/ 4.5
GDP Per Capita – PPP: 1329 International Dollars, 2005
http://www.gfmag.com/gdp -data-country-reports/212-
nepal-gdp-country-report.html#axzz1l22MoAdi
Measures Per capita: energy use, water use, calorie intake, disposable
income, social insurance, degree of vulnerability against disasters, …
•30.85 % below poverty line (NLSS 2003/04) based on Rs. 7696 as the average
national poverty line.
•24.1 % below poverty line as per 1 dollar per day based on purchasing
power parity (PPP).
•Minimum Wage in Nepal (2018): $1430 (nominal), $4405 (PPP)
71
CM in Developing Countries/Ch 1_HKS
72
2071/72: PCI increase Rs. 3800
Ethnic Inequality in Nepal
Description% below
poverty line
Dalit 46
Janajati in
hilly areas
44
Muslim 41
Terai
Janajatis
35
Minority
castes
31
Newars 14
Brahmin/Che
ttris
18
73
Three Year Interim Plan,
Mangsir, 2064
74
“the population living below the poverty line was calculated based on whether a person spent a
minimum of 1.9 U.S. dollars per day for daily essentials.”
People living under poverty line: 25.16% in 2011
Food expense more than 50% of income in rural areas.
The 4
th
Nepal Living Standard Survey 2022-2023
National Statistics Office (NSO), Magh 29, 2080 (12 Feb 2024)
Human Development Report (2019): Working poor (earning $3.1 per day) in Nepal
is 33%; an indication of underemployment.
3. Low levels of productivity
75
Low
nutrition
Low
health
Low
productivity
Low
income
CM in Developing Countries/Ch 1_HKS
4. Agro based economy (without
any processing or supply chain
management)
S.
No
Industries 2000/012004/052007/08
1Agriculture & forestry 36.15 34.71 32.12
2Fishing 0.43 0.47 0.48
3Manufacturing 9.03 7.92 7.06
4Construction 6.01 6.47 6.44
5Real estate, renting &
business activities
8.29 8.69 9.91
76CM in Developing Countries/Ch 1_HKS
Composition of GDP in percentage
(Economic Survey, July 2008)
AgricultureIndustry +
Manufacturing
Manufacturing
only
Services
34 16 7 51
5. Unemployment and underemployment
77
S.
No.
Descriptions % age
1Population relied on agriculture as main
occupation
78
2Employed (15 years above) 74.3
3Unemployed (Male 3.1 % & Female 2.7) 2.9
4Inactive 22.8
Based on NLSS 2060/61
Three Year Interim Plan, Mangsir, 2064
Old data: Unemployment Rate in Nepal increased
to3.20%in 2016 from3%in 2015. Unemployment
Rate in Nepal averaged2.97% from 1991 until 2016,
reaching an all time high of4.50%in 1996 and a record
low of 1.90% in 1999.
Human Development Report (2019): Working poor
(earning < USD 3.1 per day ) is 33% in Nepal,
indication of underemployment
82
Total Unemployed: 908000; 511000 male and 39700 female
Total employable: 7994000, Labor Force Survey, CBS, 2019
Unemployment: 11.4% (2019)
Unemployment: 2.8% (2008) and 1.0% in 1998 survey, due to volunteer
work counted as employed, as per DDG Nebil Lal Shrestha of CBS.
Subsistence agriculture activities: not counted as employed in 2019 survey
Population above 15: 207044000; 4300000 in foreign employment
Employment in informal sector: 62.2%, formal sector 37.8%
यसपटक विभागले िस्तु तथा सेिा उत्पादन र त्यसको उपभोग तथा नाफा आर्जनगने
क्रियाकलापलाई मात्र रोर्गार मानेको छ।
अघिल्लो सिेक्षणमा आफ्नै उपभोगका लागग खेतीपाती, पशुपालन तथा पाररिाररक उपयोगका
लागग िस्तु उत्पादन कायजमा संलग्न व्यक्ततलाई रोर्गारमा गणना गररएकोगथयो।
श्रमशक्ततभन्दा बाहिरको संख्या एक करोड २७ लाख ५० िर्ार छ। त्यसमध्ये ८५लाख महिला र
४२ लाख ५० िर्ार पु�ष छन्। ७० लाख ८६ िर्ार रोर्गारीमध्ये २५ लाख ४० िर्ार महिला र
४४ लाख ४६ िर्ार पु�ष छन्।
Monthly Salary: 17800; Male 19400, female: 13630
रोर्गारमध्ये सिरी क्षेत्रका ४९ लाख ग्रामीण क्षेत्रका २१ लाख ८५ िर्ार रोर्गारीमा छन्।
कृवष, िन र माछापालनमा २१.५ प्रघतशतले काम गछजन्। त्यस्तै थोक तथा खुद्रा बबिीमा १७.५
प्रघतशत र मोटरगाडी तथा मोटरसाइकल ममजतसम्भारमा १५.१ प्रघतशतले काम गछजन्। उद्योगमा
१३.८ र घनमाजण क्षेत्रमा ७.९ प्रघतशतले काम गने गरेको सिेक्षणले देखाएको छ।
आईएलओ को सियोगमा सन् २०१७ र्ुलाईदेखख २०१८ र्ुलाईसम्म १८ िर्ार िरपररिारमा
अध्ययन गरेको गथयो।
6. Traditional
Technology
83
7. Underutilized natural resources
•Natural resources either underutilized or exploited by foreign companies
at the expense of local environment: gold in Africa, riches in USA/Europe
•For Singapore, population is a resources. For many developing countries,
it is a problem.
•For many European countries, snow capped mountains are resources
(winter sports, tourism, fresh water), for Nepal it is one of the reasons
for underdevelopment
•Export of unprocessed natural resources at low price
•Abundant SGS materials in the mountain, exported at rock bottom price;
human resources exported as laborers/technicians
•Though Nepal is rich in natural and human resources, the resources have
not been optimally utilized, thereby, Nepalese people are sometimes
referred to as “poor in a rich country”.
•Inability to make optimum use of available natural resources due to
various technical, management and political reasons.
Economic Survey July 2008
84
Botswana, Angola, DR Congo, South Africa and Namibia: rich in diamond yet
controlled by foreign companies
“Whenever a substance of value is found in Africa, people die”. Blood Diamond
Nepal is assumed to have uranium deposit in Mustang. Who do you think will
benefit if the uranium deposit is assessed to be techno-financially feasible?
85
The natural resources of Nepal:
Water Resources
Water: Water for Energy (Hydropower)
Water for agricultural production
Water for drinking and export (purified/bottled) mineral water
Water for sports and navigation
Hot springs
Snow covered mountains: Mountain climbing, Winter sports, skating,
skiing
Mountains: Tourism, Adventure tourism, high altitude trekking, hiking,
walking to hill stations, bungee jumping, skyline, cave exploration
Forest: Silviculture, forest based tourism
Herbs and medicinal herbs: high value plants, seeds, roots
Bio-diversity: animals, amphibians, fishes, birds, insects, trees, plants
Endangered Species: Big Cats, Venomous snakes, rare animals & birds
Seed diversity due to elevation variation
High Fiber low sugar Grains:
Rocks and Minerals: high value and industrial minerals,
Shaligrams: Ammonites
Construction materials
Human Resources
How to make the best use of these
available natural resources of Nepal?
What are the legal, institutional, financial,
& technological barriers to proper
utilization of these natural resources?
8. Foreign trade
orientation
•Export of unprocessed goods
and raw materials, import of
processed materials at higher
price.
•Trade deficit increased by 37.7
% to 102.85 billion in the first
eight months of FY 2007/08
•Share of trade deficit with India
was 62.1 % and with other
countries by 37.9 % in the
review period.
•Dependence and vulnerability
in international relations
•Trade deficit
88
89
Fitch Assigns Nepal 'BB-' IDR;
Outlook Stable
21 Nov, 2024
Fitch Ratings - Hong Kong
Fitch Ratings has assigned Nepal a
Long-Term Foreign-Currency Issuer
Default Rating (IDR) of 'BB-' with a
Stable Outlook.
90
Fitch Assigns Nepal 'BB-' IDR;
Outlook Stable
Thu 21 Nov, 2024 - 4:24 AM ET
Fitch Ratings - Hong Kong - 21 Nov
2024: Fitch Ratings has assigned
Nepal a Long-Term Foreign-Currency
Issuer Default Rating (IDR) of 'BB-'
with a Stable Outlook.
92
१३ श्रािण २०८०, 29 July 2023
विगत एक िषजमा २ करोड ५४ लाख ४० िर्ार
मूल्य बराबरको १ सय २७ मेहिक टन गिराइतो,
१ करोड १३ लाख २३ िर्ार २ सय मूल्य
बराबरको ६७ मेहिक टन मक्र्ठो र १३ लाख
६५ िर्ार ३ सय मूल्य बराबरको १२ मेहिक टन
पदमिाल भारत घनयाजत भएको छ ।
93
Nepal’s trade (im)balance; % of annual national budget
9. Low concern over time
•Time is not considered as important/valuable.
•People enjoy plenty of free/leisure time
•“Will do tomorrow” attitude
•“Personal problem” considered for missing deadline
•Strikes, Chakkajam (transportation/vehicle strike)
•long list of holidays
–democracy, loktantra, republic
–Death of people, student, teacher, official …
•Road/drain maintenance at office time …
•Project delay considered normal
•(2-years MSc. CM in 5 years, normal?)
•Covid-19: Lock down without an exit plan (2
nd
wave)?
94CM in Developing Countries/Ch 1_HKS
10 Low moral orientation
•Power revered over morality
•Survival mode mentality: “Professionals” easily succumb to “pressure”
•High level of bribery: property earned from illegal sources honored,
socially accepted
•Law breakers as “daring” and law abiders are “un-daring”
•Acceptance of low quality works and materials
•Personal integrity “for sale” at negotiable price
•Low level of
–(a) Work ethics
–(b) Professionalism and
–(c) Integrity
95
Global Corruption Barometer
Asia 2020
GCB_Asia_2020_Report_Web_f
inal.pdf
96
OnlineKhabar, 25 December 2024
11. More focus on technical solution to
societal problems
Ignore or less focus on:
•GESI/GEDSI
•EIA/ESIA/CIA
•Sustainable/Balanced Developments
•Interdisciplinarity
•Rights/informed consent of indigenous people
•Environmental Justice/ Social Justice
97
Survival mode mentality devalues GESI/EIA/sustainability,
fairness, justice, human rights, …
12 Too many organizations (?)
98
Organization of “Abused Husbands”
99
Developing countries are not homogeneous but are
enormously diverse in their structure. In particular it is stressed
that the developing world differs in:
•Population & geographic size (India v. Bhutan)
•Language and religion (India v. Maldives)
•Colonial era experience (India v. Nepal/Ethiopia)
•Levels of education (Sri Lanka v. Nepal)
•Natural resource endowments (Nepal v. Maldives)
•Types of industry (Nepal vs. India)
•Role of government and degree of democracy
(North Korea v. India)
•Degree of dependency in international
economic and political affairs (Bangladesh v. India)
100
Do these parameters have impact on CMDC?
A country is not measured by the size of its area on the map. A country is truly
measured by its heritage and culture. Sheikh Zayed bin Sultan Al Nahyan, former ruler
of UAE
Common features of developed and
developing countries!!
•Pursuit of peace and prosperity
•Effect of climate change
•Population growth
•Migration
•Aspiration of further growth and development
•Terrorist acts
•International Tourism
•Demonstrations for freedom
•Periodic elections
•Membership in international organizations
•Bilateral and multilateral pacts
•Many more, …
102
103
End of Chapter 1
Final exam question collection in the following slides.
Common
Characteristics
Impact on CMDC Different
Characteristics
Impact on CMDC
Test yourself. Answer them using different resources.
Chapter 1: Concept of Development, Characteristics of developing & developed countries
•Select the most critical intrinsic (only one) and extrinsic (only one) cause of underdevelopment of a
country. Defend your selection (i.e., explain why that particular cause is most critical in comparison
to other causes.
•Nepal is aspiring to be promoted to “developing country” from its current status of “least developed
country”. To achieve this goal, which national development parameters (select only two) should be
improved, and why?
•What should be the proper development model for a developing country: (a) state led, (b) Market
led and (c) Society led? Explain with reasons and examples.
•Nepal has practiced planned development since the last half century, yet Nepal is still one of the least
developed countries. List top three reasons for this state of Nepal (reasons for failure of planned
development), and propose practical solutions to overcome each of them.
•Despite abundant natural resources (like fresh water, forest, herbs, natural beauty, bio-diversity)
many developing countries, including Nepal, are reeling under extreme pressures of underdeveloped
infrastructure. Analyze the intrinsic and extrinsic factors of underdeveloped state of Nepal.
•Defining development of a country is a complex issue. Discuss the economic, social, cultural, and
environmental factors that may be used to define development.
•The traditional economic indicators of development of a country have been challenged by recent
scholars of development. Can a country be economically developing and still be underdeveloped?
•The basic economic indicators of development of a country may be increasing positively, but
the country may still be underdeveloped for many years. Agree or disagree? Give reasons.
•Discuss the basic similarities (common features) and differences among different developing
countries?
•What are the basic similarities and differences among different developing countries?
•Explain the three broad objectives of national development in the context of Nepal.
104
Test yourself. Answer them using different resources.
Chapter 1: Concept of Development, Characteristics of developing & developed countries
•Is there any relationship between the Human Development Index and Gross National Happiness?
Explain.
•Which one should be the ultimate measure of development: Human Development Index or Gross
National Happiness? Explain with appropriate reasons.
•Discuss the intrinsic and extrinsic factors of underdevelopment of a country. Explain these factors in
the context of Nepal.
•Discuss the major factors of underdevelopment of a country. Explain these factors in the context of
Nepal.
•Some of the factors of under development are (a) rule of law, (b) financial and physical security and
(c) degree of transparency in institutional working mechanism. Explain how these factors affect (i)
private investment (ii) work culture and (iii) quality of works related to CMDC.
•The development of science and technology change in the global environment, population and
others because the whole people of different countries are linked with one another or earth is
linked with one another. Would you justify the role of following linkage factors are (i) Global Village
(ii) Environment (iii) Population (iv) Debt (v) Jobs (vi) Migration or Immigration (vii) Trade (viii)
Politics and Peace (ix) Value of Life, how would you conceptualized about the development?
•What are the characteristics of developing and developed countries?
•The factors of underdevelopment are (a) rule of law, (b) financial and physical security, and (c)
degree of transparency in institutional working mechanisms. Explain how these factors affect (i)
investment, (ii) work culture and (iii) quality of works related to construction projects in the
developing countries.
•Explain the relationship between population growth rate and level of development of a country
since some developed countries are trying to increasing population growth rate while some
developing countries are doing just the opposite.
•Is there any relationship between the level of development of a country and the construction
management methods used in the country? Discuss.
105
106
Underutilized natural resource is considered as one of the common
features of the developing countries. Suggest practical ways to make the
best use of the available natural resources in Nepal. (PU, Fall 2023, 8
marks)
Compare and contrast the characteristics of developed and developing
countries, focusing on their similarities, differences, and the sources
contributing to underdevelopment in various regions. (PU, Fall 2023, 7
marks)
107
Extra Slides:
108
साइकलमा कार्ाकलर्
एउटा डरलाग्दो रोग नेपाली समार्मा विस्तार िुाँदै गरेकोमा मलाई गिन्ता लाग्छ। समार्का विद्धत् िगज पघन
सञ्िारमाध्यममा आएका समािारका भरमा वििार बनाउाँछन्। संिारमाध्यमि� आग्रिराखेर समािारका शीषजक
बनाउछन्। महिलाहिंसामा सरकारले िालेका कदमबारे प्रेभसिज्ञप्ती प्रकाभसत गयौं तर कुनैपघन पबत्रकाले
छापेन। गेरखापत्रले समेत छापेन तर गरेको कामको पघन गरेन भनेर गाली र सरकारको अलोिना भने सबैले
छापे। र्नतालाइज सुसूगित गनज त गरेकाकाम छापेर कमर्ोरी देखाइजहदनु पने गथयोतर िाम्रो दुभाजग्य।
मान्छेि� दल/अनुिार, भूगोल िा आफ्नो इच्छा स्िाथजसाँग र्ोडेर कसैका कामको प्रशंसा िा आलोिना गछजन्।
विषयिस्तुको गहिराइमा पुगेर साङ्गोपाङ्गो विश्लेषण गरेर आग्रिरहित िस्तुपरक वििारको सट्टा सतिी
हटकाहटप्पणी र कहिलेकािीं तु�न्तै घनष्कषज मा पुग्छन्। कघतपयले समस्याको र्डएउटा नेतामा िा समस्या
समाधानको छडी अको नेतामा देख्छन्। मान्छेलाई देित्ि िा दानित्िकरण गने, र्टील सामाक्र्क आगथजक
समस्याको एउटासपाट उत्तर खोज्ने, फलानो ठीक भएपघछ सबै ठीक िुन्छ भन्ने मान्यता राख्ने बौद्गधक
र्मात बढीरिेको छ। आफ्नो खास काम बािेक सबै काम र्ान्ने िुनखोज्ने, अकाजको आलोिनामा रमाउने,
आफ्नो कतजव्य िोइन, अगधकारका मात्रै कुरा गने, सक्र्लै र तु�न्तै उत्तर खोज्ने,अधैयज, उत्तर्ेक र हिंसक बन्दै
छ युिा पुस्ता। अकाजको दुुःखमा रमाउने, अह्राएको काम मात्र गने, र्ोखखम नउठाउने, अन्य मुलुकलाई राम्रो र
आफ्नालाई नराम्रो देख्ने, व्यक्तत,पररिार आफन्त,इष्टभमत्र र दलगत नाफािाटामारमाउने, पढ्ने पढाउने
एउटा तर व्यििार अकै गने, आत्मविश्िास नभएको,अ�ले सियोगको अपेक्षामा हदनरात दौड्ने तार त्यिी
समय सृर्नाशीलता र भमहिनतमा नखिजने, भनसुन,दिाि िा पैसामा सबैकाम िुन्छ भन्नेधारणा राख्ने,
आफ्नो सन्तान विदेशीको गुलाम बनेकोमा गिज गने, आफ्नै माटोमा गररने शारीररक कामलाई िेय ठान्ने,
पढेको तर के िी पघन सीप नभएको, कसैलाई लगाएको गुणको प्रघतफल खोज्ने, पैसालाई सबैथोक ठान्ने,
आफ्ना बाबुआमा र बालबच्िाको स्यािार नगने तर युरोप-अमेररका िा इर्रायलमा बृद्ध र बच्िाको सािै
राम्रो स्यािार गने, दयामाया, ममता, सदािार, साँस्कृघत, इघतिास, भूगोल बारे बेखिर र्मात पघन देखखदैछ।
उपयुजतत िररत्रले समार्लाई पतनोन्मुख बनाउाँछ। अहिले िामीलाई भमहिनती,दुरदृष्टीयुतत, दृढ, सक्षम,
स्िच्छ, मुलुकप्रघत माया भएको (राष्िप्रेमी),आत्मविश्िास भएको,पौरखमा विश्िास गने, भसतने तत्परता र
इच्छाशक्तत भएको, सामाक्र्क प्राणीको खााँिो छ।
लीलामखण पौड्याल, १ र्निरर २०१३
Dualism
Dualism holds the belief that there are two elements of existence:
Mind-Body Dualism; Physical-Spiritual Dualism
Exterior shot of a tra ditiona l building Photo (04008364)
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