Global Competitive Report 2011-12

Nepal improved its score to 3.47 to climb up to 125th position — among 142 economies — from last year’s score of 3.36 and 130th position among 139 economies according to the Global Competitive Report 2011-12.

The report released on 7th September 2011 by World Economic Forum globally, the country has improved in macroeconomic environment and health, though its needs to have a lots of improvements in institutions and infrastructures — the two key pillars of the index among the 12 pillars based upon which the score is calculated.

However, Nepal still falls under factor driven country category that needs to focus on first four pillars — institutions, infrastructure, macroeconomic environment and health and primary education.

Under the first pillar — institutions — government’s attitude towards market also plays key role and under second pillar — infrastructure — market integration to reduce cost to the market is key, which has pulled Nepal's overall score.

There are 37 economies like Nepal that fall under the factor driven category that has their per capita income below $2,000. The economies that have between $3,000 and $8,999 per capita income fall under efficiency driven category which has 28 countries and the economies that have over $17,000 per capita income fall under the innovative driven category that has 35 countries.

Nepal’s GDP stands at $15.8 billion with $562 per capita income, according to the report.

The report has identified government instability, inefficient government bureaucracy, policy instability, corruption and inadequate supply of infrastructure as five most problematic factors for doing business, which was similar to last years report.

The Global Competitiveness Report’s competitiveness ranking is based on the Global Competitiveness Index (GCI), developed for the World Economic Forum by Sala-i-Martin and introduced in 2004.

The GCI comprises 12 pillars — institutions, infrastructure, macroeconomic environment, health and primary education, higher education and training, goods market efficiency, labor market efficiency, financial market development, technological readiness, market size, business sophistication and innovation — of competitiveness that together provide a comprehensive picture of a country’s competitiveness landscape.

The rankings are calculated from both publicly available data and the Executive Opinion Survey — a comprehensive annual survey conducted by the World Economic Forum with its network of Partner Institutes. In Nepal, (Centre for Economic Development and Administration (CEDA) is the partner that has been releasing the report since 2006.

This year, over 14,000 business leaders were polled in a record 142 economies. In Nepal some 103 small (with less than 20 employees), medium (between 20 and 50 employees) and large (with over 50 employees) industries were polled for the survey that is designed to capture a broad range of factors affecting an economy’s business climate.

As usual Switzerland still leads the world in competitiveness because of innovation and labor market efficiency, whereas Singapore came second and Sweden third.

The United States ranked fifth, falling for the third year in a row. 

The United States has good universities, is strong in research and development and has a big economy and a flexible workforce, the report said, adding that the business community, however, continues to be critical toward public and private institutions.

The South Asian ranking

• Sri Lanka — 52

• India — 56

• Bangladesh — 108

• Pakistan — 118

• Nepal — 125

The Missing Persons in Nepal- 2011

The International Committee of the Red Cross (ICRC) and the Nepal Red Cross Society (NRCS) on 29th August 2011 published the names of 1,383 people who went missing during the Maoist insurgency (1996-2006) on the eve of the International Day of the Disappeared on August 30.

A report titled ´The Missing Persons in Nepal: The right to know´ released on the occasion has updated the list of persons still missing, according to an ICRC press statement issued on Monday. This is the fourth such list published by the institution since the end of the Maoist insurgency in 2006.

Since 1999, the International Committee of the Red Cross (ICRC), supported by the Nepal Red Cross Society (NRCS), has maintained contact with the families of missing persons across Nepal and has been encouraging the former parties to the conflict to clarify the fate of those who remain unaccounted for. Over the years, the ICRC has received 38191 reports from families regarding the disappearance of a relative in relation to the conflict. While the fate and whereabouts of hundreds of people has been established, 13832 people are still missing, nearly five years after the end of the conflict. Their families are anxious to know what happened; they need a formal answer so they can get on with their lives. Until then, they are torn between despair and hope: despair at the loss of a relative and hope that he or she may reappear, against all odds.

For three consecutive years (2007, 2008 and 2009) the ICRC and the NRCS published lists of missing persons in Nepal. These lists contained 812, 1227 and 1348 names respectively. In 2010, the ICRC published the updated list of 1369 names on its website, in English and Nepali (www.familylinks.icrc.org).

Since 2007, 42 families have received an answer and have been able to move on with their lives; meanwhile many more have come forward and asked the Red Cross to help them obtain information.

The present document contains an updated list of 1383 missing persons, taken from ICRC records. This is not a comprehensive list of everyone who went missing during the conflict; it only includes people whose families have approached the NRCS or the ICRC looking for information about a missing relative. Each name represents the missing person, his or her family, the suffering of that family, the statements the families provided to the ICRC, and the ICRC’s repeated representations to the authorities.

For original report click here.

Need Assessment for Nepal 2010

Millennium Development Goals (MDGs) 'Need Assessment for Nepal 2010' released 24th August 2011 revealed that the country suffers from a resource gap to the tune of Rs 451.43 billion (a 32.34 per cent) over the last 5 years of the MDGs period. This further slims the country´s chances of achieving the goals by 2015. However, it points out that during 2011 and 2015, a total of Rs 1,395.8 billion is required to achieve targets.

In the context of shifting global priorities towards fighting global recession and climate change implications, it is difficult to manage.

Nepal is on track to achieve goals like universal primary education, rise in household income, improvement in child health and maternal health.

Targets that Nepal is likely to miss, according to the report of National Planning Commission (NPC) and UNDP, include the ones like halving the population below minimum level of dietary energy consumption, proportion of underweight children (aged between 6-59 months) and proportion of stunted children (aged 6-69 months).

Nepal also faces difficulty in achieving targeted survival rate to Grade 5 in primary education, literacy rate for 15-24 years old, proportion of births attended by skilled attendants, universal access to reproductive health, and proportion of population using an improved sanitation facility.

If Nepal is to achieve the targets, it must reduce proportion of population below minimum level of dietary energy consumption to 21 percent by 2015 whereas such proportion stood at 25.4 percent in 2010.

Likewise, the report notes the proportion of underweight children in 2010 stood at 36.4 percent against the target of 29 percent, proportion of stunted children is 46.8 percent against the target of 30 percent, survival rate to Grade 5 in primary education is 77.9 percent against cent percent target and literacy rate for 15-24 years old is 86.5 percent against the target of cent percent.

Third Nepal Living Standards Survey

Nepal has made significant progress in the social sectors in the last seven years.

Also, the income gap between the poor and the rich is shrinking, according to findings of the Nepal Living Standards Survey (NLSS)- III whose preliminary report was unveiled by the Central Bureau of Statistics on 8th August 2011.

The NLSS 2010-11 said common Nepalis' access to basic facilities has improved in the years.

Despite political upheavals and unrest, average household income of Nepalis has increased by more than four-fold to Rs 202,374 over the span of 15 years due to rise in the number of employed population, switch from agricultural to non-agricultural jobs and increased receipt of remittances.

Remittance is widely spent on daily consumption, followed by loan repayment and household property instead of capital formation. Some 78.9 per cent of the remittance is used on daily consumption, whereas 7.1 per cent of the remittance is used to repay loans followed by 4.5 per cent on household property, 3.5 per cent on education and only a minimal 2.4 per cent is used on capital formation.

However, percentage of household receiving remittances has also more than doubled from 23.4 per cent 15 years ago to 55.8 per cent in 2010.

Consumption of expenditure on food, housing and education has increased but on other non-food items it has decreased. Share of food in total household consumption has seen a increased to 61.5 per cent from 59 per cent in 2003-04, whereas share of non-food consumption has decreased to 22.2 per cent in 2010-11 from 2003-04’s 28.7 per cent, according to the survey that reflects the migration has not only increased the average income of a Nepali and consumption pattern but changed the social structure too.

The female headed households percentage has doubled — to 26.6 per cent from 13.6 pre per cent — in the last 15 years since the first Nepal Living Standard Survey 1995-96.

For instance, the third edition of the survey, which compared living standard of same households that were studied during the first NLSS in 1995/96, says almost 70 percent households have access to electricity at present, whereas only about 14 percent and 37 percent households had such access in 1995/96 and 2003/04 respectively.

The number of households with access to safe drinking water too has increased to 83 percent from 70.4 percent in 1995/96. Likewise, almost 18 percent households are presently using liquefied petroleum gas (LPG) - efficient and less polluting fuel - for cooking, up from 8.2 percent of 2003/04 and 0.1 percent of 1995/96.

Over the span of 15 years, access of Nepalis to primary school has jumped to almost 94.7 percent from 88 percent, access to health centers to 73.8 percent from 45 percent, market center to 45 percent from 24 percent and paved road to 51 percent from 24 percent

Over the same period per capita income of an individual has undergone a tremendous growth that average per capita income of Nepali has gone up to Rs 41,659 in 2010/11 from just Rs 7,690 in 1995/96.

The survey also shows a significant change in sources of income of Nepali households. According to the survey, more Nepalis have started to make non-agricultural income, whereas in the past, agriculture used to contribute the bulkiest share in households income.

The contribution of agriculture sector in the household income has come down to 27.7 percent from 61 percent in 1995/96. Subsequently, share of non-agricultural income in household income has increased to 37.2 percent from 22 percent of 15 years ago. The survey notes that in 2010/11, almost 56 percent of total Nepali households are receiving remittances, which is a remarkable rise over 23.4 percent recorded in 1995/96 and 31.9 percent in 2003/04.

The survey has also traced striking growth in the number of employed population. According to the survey, a total of 78.5 percent of the total population were employed in 2010/11, whereas in 1995/96 only 67.2 percent Nepalis were employed.

The percentage of not active population has dropped to 19.9 percent now from 29.4 percent of 1995/96.

Nepal ranks 134th on FDI Inflow Index- 2011

Nepal's ranking in UNCTAD's foreign direct investment (FDI) Performance Index is unchanged in 2011. UNCTAD's World Investment Report (WIR) 2011 has placed Nepal at 134th position in the Inward FDI Performance Index. According to WIR, FDI inflow to the country in 2010 was same as that in 2009. The report says Nepal received $39 million in FDI in 2010.

Nepal's worsening image as FDI destination is further illustrated by the latest statistics of the Department of Industry (DoI). As per DoI statistics, FDI commitment has declined by 48.35 percent in 2010-11.

With FDI inflow to India and Pakistan declining by 31 percent and 14 percent, respectively, in 2010, it was understandable that Nepal would not witness an increase in foreign investment. If delays in the approval of large FDI projects along with other macroeconomic concerns were responsible in the slide in FDI inflow in India, protracted political transition played a key role in the slowdown in FDI commitments in Nepal.

Interestingly, more than half of global FDI inflows were into developing countries and transition economies. The report says FDI inflows to Bangladesh increased by nearly 30 percent to $913 million with the country becoming a major low-cost production location in South Asia.

Accroding to UNCTAD report, global FDI flows recovered from the post-meltdown $1.19 trillion to $1.24 trillion in 2010, with the United States being the largest recipient ($228 billion), followed by mainland China ($106 billion) and Hong Kong ($69 billion).

The new report tells the same story about Nepal which the 2010 report had told. The 2010 report had said FDI to almost all LDCs increased during the 1990-2008 period, with the exception of Nepal, Burundi, Eritrea, Samoa and Timor-Leste.

Nepal, after success of 1990s, has not been able to attract foreign investors in recent years.

Although Nepal got FDI commitments worth Rs 9.81 billion in 2007-08, the highest in the last two decades, Nepal's image as FDI destination is eroding fast.

FDI or foreign investment refers to the net inflows of investment to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor. It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments. It usually involves participation in management, joint-venture, transfer of technology and expertise. There are two types of FDI: inward foreign direct investment and outward foreign direct investment, resulting in a net FDI inflow (positive or negative) and "stock of foreign direct investment", which is the cumulative number for a given period. Direct investment excludes investment through purchase of shares. FDI is one example of international factor movements.

The UN World Investment Reports have been published by the UN since 1991. They focus on worldwide FDI trends, at the regional and country levels. The reports contain recommendations as well as put special emphasis on the development implications that influence the FDI trends.

(2011 July)

Nepal ranks 25th among 26 Asia-Pacific in ICAO audit

Nepal is at the botton of International Civil Aviation Organisation’s audit report of the Asia Pacific region featuring at the 25th position.

The Universal Safety Oversight Audit Programme of ICAO that has featured 26 nations within Asia Pacific region is based on the survey by ICAO team in Kathmandu on May 8 - 14, 2009.

According to the audit report Nauru stood at the 26th position.

Civil Aviation Regulation 2058, Civil Aviation Accident Investigation Regulation 2024, and Aviation Security Regulation 2046 of Nepal are the legislation in the process of amendment.

The ICAO Universal Safety Oversight Audit Programme (USOAP) was launched on 1 January 1999. It is managed and run by the Safety Oversight Audit (SOA) Section of the ICAO Air Navigation Bureau. SOA is certified under ISO standard Quality Management Systems - Requirements: ISO 9001:2000 since 16 October 2002.

(2011 July 10)

Progress of the World's Women- 2011

Nearly half the population of women in the Asia-Pacific region have experienced physical and sexual violence at the hands of their partners, a report called 'Progress of the World’s Woman: In The Pursuit of Justice,', by UN Women claimed. Released on 6th July 2011, the report, which offers a comprehensive global review of women's rights around the world, said that the level of domestic violence is very high in the Asia-Pacific region.

In the Asia-Pacific context, the report said that there are 19 countries and territories in the region that have passed laws to prohibit domestic violence. "However, only eight countries and territories throughout Asia-Pacific region explicitly criminalise marital rape, leaving millions of women exposed to abuse at the hands of their partners," it said.

Even as India continues to seek 33 percent reservation for women in parliament and state legislatures, Nepal is the only country in the region which has reached the 30 percent critical mass mark for women in parliament. "Women parliamentarians have played a key role in passing new laws on domestic violence and improving poor women's access to reproductive health care," the report said.

The report also highlights 10 fascinating legal cases from around the globe that forever changed laws restricting women’s rights and access to justice. These range from the case of Martha Solay of Columbia who won the right to have a life saving abortion; or the case of Meera Dhungana of Nepal which lead to the enactment of marital rape laws.

Since 2000, a number of countries have decriminalized homosexuality, including Armenia, Fiji, Nepal and Nicaragua. Sic more prohibit discrimination on sexual orientation in their constitution: Bolivia, Ecuador, Portugal, South Africa, Sweden and Switzerland. Same-sex activity between consenting adults is still illegal in 40% of nations.

Saying that the private sphere must not be "outside justice", the report added that a large number of women in the region feel it's alright for a man to beat his wife. "According to surveys in seven countries in the region, on average, a third of respondents say that it is sometimes acceptable for a man to beat his wife, including over half of respondents in Malaysia and nearly two-thirds in Thailand," the report said.

The report says that the issue of women's rights in the present day world is a paradox. "The past century has seen a transformation in women's legal rights, with countries in every region expanding the scope of women's legal entitlements". "Nevertheless, for most of the world's women, the laws that exist on paper do not translate to equality and justice," it said.

Women are also under-represented in the justice system, the report said. In South Asia, women make up just nine percent of judges and four percent prosecution staff. Also, women are just three percent of police in South Asia and nine percent in East Asia and the Pacific, the report said.