Nepal Demographic Health Survey (NDHS) - 2011

Nepal has improved in almost all health indicators except neo-natal mortality. The neonatal mortality rate in the past five year was 33 deaths per 1,000 live births according to Nepal Demographic Health Survey (NDHS)-2011 disseminated 26^th March 2012.

The NDHS had collected demographic and health information from a nationally representative sample of 10,826 households, which included interviews with 12,674 women between 15 to 49 years of age in all selected households and with 4,121 men aged 15 to 49 in every second household.

The survey showed that fertility in Nepal has declined over the past fifteen years. Currently, women in Nepal have an average of 2.6 children, a decrease from 3.1 in 2006. Women in urban areas have 1.6 children on average, compared with 2.8 children per woman in rural areas. Fertility is higher in the mid-western (3.2) and far western (2.8) regions than in the eastern, central or western (each 2.5) regions.

The report said that family planning use has remained essentially the same since 2006 and use of female sterilization has dropped slightly from 18 per cent in 2006 to 15 per cent in 2011, while male sterilisation has increased from six per cent to eight per cent. The NDHS revealed that 27 per cent of married women have an unmet need for family planning—ten per cent for birth spacing and 17 per cent for limiting.

The infant mortality rate for the five-year period before the survey was 46 deaths per 1,000 live births just two deaths below the infant mortality reported in 2006. Under-five mortality rate was 54 deaths per 1,000 live births, down from 61 deaths per 1,000 in 2006.

Immunization coverage of children increased slightly during this period. Currently, 87 per cent of children aged 12 to 23 months are immunized against the six major childhood diseases whereas 83 per cent of children were fully immunized in 2006.

Nepali children are better nourished than in the past. In children under five years of age, 41 per cent are chronically malnourished and 11 per cent are wasted, While still high, these statistic represent a reduction from 2006 when 49 per cent were stunted and 13 per cent were wasted. Furthermore, data showed that 29 per cent of Nepali children under five were underweight in 2011, which is a decrease from 39 per cent in 2006.

Women’s health has improved over the last five years. In 2011, 58 per cent women received antenatal care from skilled providers, compared to 44 per cent women in 2006, and more than one in three (36 per cent ) births are delivered with the assistance of a skilled birth attendant currently compared to less than one in five births (19 per cent ) five years ago. Similarly, institutional delivery has also increased from 18 per cent in 2006 to 35 per cent in 2011.

The survey was conducted by New Era under the guidance of the Ministry of Health and Population with funding from USAID.

Other NDHS findings

• About 57 per cent of households reported at least one migration in the past ten years.

• Majority of Nepalis have some education, although only eight per cent of female respondents aged 15 to 49 and 15 per cent male respondents in the same age group have studied beyond secondary education.

• Nepali households consist of an average of 4.4 people.

• More than 99 per cent of all women know at least one modern method of family planning.

• Only 38 per cent of women know that abortion is legal in Nepal.

• About 86 per cent women and 97 per cent men have heard of HIV/AIDS but knowledge of HIV prevention measure is slightly lower.

• More than two in 10 women (22 per cent) have suffered physical violence at some point since 15.

• Almost one-third of married women have suffered spousal abuse at some point in time, whether physical, emotional or sexual.

The Index of Economic Freedom 2012

Nepal is ranked 147^th on 'Index of Economic Freedom 2012' among 184 countries. Nepal’s economic freedom score is 50.2 — an improvement by 0.1 — from last year, with an improvement in investment freedom offset by deterioration in business freedom,” according to the 18th annual Index of Economic Freedom released on 12^th January 2012 by The Heritage Foundation and The Wall Street Journal.

However, the report revealed that economic freedom has declined worldwide in 2011 as many countries attempted — without success — to spend their way out of recession. “The global average economic freedom score for the 2012 Index stands at 59.5 — on a scale in which 100 represents the ideal — down two-tenths of a point from 2011.”

The Index that covers 10 freedoms — from property rights to entrepreneurship in 184 economies across the world — ranked Nepal 32^nd out of 41 countries in the Asia–Pacific region, though its score remains far below world and regional averages.

Nepal’s statist approach to the economy continues to hold development progress far below the country’s potential, it said, adding that the foundations of economic freedom are extremely weak, and corruption, a lack of transparency, and a burdensome business approval process impede much-needed expansion of private investment and production. “Property rights are poorly protected by the inefficient judicial system, which is subject to substantial political influence.”

Overall, the economy lacks the entrepreneurial dynamism for broad-based economic growth and sustainable long-term development, the report said. Its scores for investment freedom and financial freedom are among the worst in the world. State interference continues to hurt regulatory efficiency, and there has been little effort to open the economy or engage in world markets. Lingering political instability undermines the government’s ability and willingness to implement necessary economic reforms, according to the annual report that ranked Hong Kong and Singapore the first and second freest economies for the 18^th straight year. Australia and New Zealand ranked third and fourth, and Switzerland fifth followed by Canada, Chile, Mauritius, Ireland and the US under the top 10 free economies.

Afghanistan, Somalia, Iraq, Sudan and Liechtenstein are not ranked.

According to the Index, the scores of 75 countries improved while 90 countries lost economic freedom. Fourteen countries showed no change.

Of the 75 showing improvement, 73 are considered emerging or developing countries, with many situated in the Sub-Saharan Africa, the Asia-Pacific, and South and Central America/Caribbean regions.

Economic freedom is not only a crucial component of liberty but it also reveals level of poverty and economic growth as it empowers people to work, produce, consume, own, trade, and invest according to their personal choices. Economic freedom matters the most as only an economically free nation can compete in the global market.

The Democracy Index 2011

The results of the Economist Intelligence Unit’s (EIU) Democracy Index 2011 show that democracy has been under intense pressure in many parts of the world. In most regions the average democracy score for 2011 is lower than in 2010, including the developed countries of North America and Western Europe. There was a decline in the average score for Eastern Europe and small declines for both Asia and Latin America. These were offset by increase in average scores in the Middle East and North Africa (MENA) and Sub-Saharan Africa. The index released on first week of January 2012.

According to 'The Democracy Index 2011 : Democracy under stress' Nepal is ranked 108^th among 167 countries and territories. In the index other South Asian Association For Regional Cooperation (SAARC)'s members are India 39^th, Sri Lanka 57^th, Bangladesh 83^rd, Bhutan 104^th and Pakistan 105^th. Maldives is not included in the index.

The United States ranks 19th, one notch below the United Kingdom. At the bottom of the Democracy Index 2011 rankings, at 167th, is North Korea.

A total of 53 countries, including all three Baltic states, are considered flawed democracies. Hybrid regimes are found in 37 countries, while authoritarianism reigns in 52.

The report scores countries based on five measures: electoral process and pluralism; civil liberties; the functioning of government; political participation; and political culture. Based on their scores, countries are placed in one of four different regime categories: full democracies, flawed democracies, hybrid regimes and authoritarian regimes.

It said almost one-half of the world’s population lives in a democracy of some sort, although only 11 per cent reside in full democracies, adding that some 2.6 billion people, more than one-third of the world’s population, still lives under authoritarian rule with a large share being in China.

The report said flawed democracies are concentrated in Latin America and eastern Europe, and to a lesser extent in Asia.

“This has affected mainly electronic media, which is often under state control or heavy state influence ‑ although repression and infringements of the freedom of expression have also extended to the print media and, most recently, the Internet,” said the report. The ranking shows the first 10 full democracies as Norway, Iceland, Denmark, Sweden, New Zealand, Australia, Switzerland, Canada, Finland and the Netherlands.

And according to the report, the last 10 authoritarian regimes are Syria, Iran, Central African Republic, Saudi Arabia, Equatorial Guinea, Myanmar, Uzbekistan, Turkmenistan, Chad and North Korea

The report said free and fair elections and civil liberties are necessary conditions for democracy, but they are unlikely to be sufficient for a full and consolidated democracy if unaccompanied by transparent and at least minimally efficient government, sufficient political participation and a supportive democratic political culture.

However, the report said: “It is not easy to build a sturdy democracy. Even in long-established ones, democracy can corrode if not nurtured and protected.”

World Press Freedom Index 2011

Nepal ranked 106th in World Press Freedom Index 2011/2012. Nepal witnessed a modest improvement in press freedom last year improving the ranking in the Press Freedom Index by 13 positions, the Reporters Without Borders (RSF) said on 25th January 2012.

 “In Nepal, a decline in attacks by Maoist groups in the south and greater efficiency on the part of the justice system account for the modest improvement in the country’s ranking,” RSF said. “However, press freedom was marred by threats and attacks by politicians and armed groups throughout the year.” 

Nepal is ranked 106th. The country was at 119th position in Press Freedom Index 2010.

Nepal’s ranking is however one of the best ranking that the South Asian nations received. Only Bhutan (70) and Maldives (73) are ahead of Nepal while Bangladesh (129), India (131), Afghanistan (150), Pakistan (151) and Sri Lanka (163) all rank lower than Nepal.

The media freedom watchdog also added that the Nepali journalists were regularly subjected to threats from rival political groups and their supporters in 2011.

The report noted that violence and censorship on the rise in Asia as violence and impunity persist in Pakistan, Afghanistan and Philippines. It also noted more repression on press in Sri Lanka, Vietnam and China.

The Index assesses condition of freedom of expression in 179 countries, with first places occupied by Finland, Norway, Estonia, the Netherlands and Austria.

“With 10 deaths in 2011, Pakistan was the world’s deadliest country for journalists for the second year in a row,” the report said.

“This year’s index sees many changes in the rankings, changes that reflect a year that was incredibly rich in developments, especially in the Arab world,” RSF said on global review of media freedom. 

“Many media paid dearly for their coverage of democratic aspirations or opposition movements. Control of news and information continued to tempt governments and to be a question of survival for totalitarian and repressive regimes. The past year also highlighted the leading role played by netizens in producing and disseminating news.”

Syria, Bahrain, Yemen received their worst ever press freedom ranking Wednesday in Reporters Without Borders' (RSF) index for 2011, a tumultuous year that saw the downfall of several Arab dictators.

Eritrea, North Korea and Turkmenistan came right at the bottom of the 10th annual list by the press freedom group, with the same clutch of European states -- led by Finland, Norway and Estonia -- at the top.

This year's index saw many changes in the rankings that reflect a year in which many media organisations paid dearly for their coverage of popular uprisings against veteran autocratic leaders, RSF said.

"Control of news and information continued to tempt governments and to be a question of survival for totalitarian and repressive regimes," said the Paris-based group.

RSF said it was no surprise that the same trio of countries -- Eritrea, North Korea and Turkmenistan -- were bottom of the list because they were "absolute dictatorships that permit no civil liberties".

"They are immediately preceded at the bottom by Syria, Iran and China, three countries that seem to have lost contact with reality as they have been sucked into an insane spiral of terror," it said. 

Bahrain and Vietnam -- both described as "quintessential oppressive regimes" -- were also down at the bottom, while RSF said "other countries such as Uganda and Belarus have also become much more repressive".

Tunisia rose 30 places from last year's index to 134th but "has not yet fully accepted a free and independent press", according to RSF.

Bahrain, now ranked 173rd, fell 29 places because of its "relentless crackdown on pro-democracy movements, its trials of human rights defenders and its suppression of all space for freedom," the group said.

Egypt fell 39 places to 166th "because the Supreme Council of the Armed Forces, in power since February, dashed the hopes of democrats by continuing the (ousted president Hosni) Mubarak dictatorship's practices."

"Total censorship, widespread surveillance, indiscriminate violence and government manipulation made it impossible for journalists to work" in Syria last year, which fell to 176th position in the index.

Elsewhere, pro-democracy movements that tried to follow the Arab example were ruthlessly suppressed, with, for example, many arrests made in Vietnam (172nd), said RSF. 

In China, which ranks 174th, the government responded to regional and local protests and to public impatience with scandals by feverishly reinforcing its system of controlling news and information, it said.

China carried out extrajudicial arrests and stepped up internet censorship, it added. 

In Azerbaijan (162nd), there was a dramatic rise in the number of arrests, as the government jailed netizens, abducted opposition journalists and barred foreign reporters in order to impose a news blackout on unrest, it said.

Led by President Yoweri Museveni, Uganda (139th) launched "an unprecedented crackdown on opposition movements and independent media after the elections in February". 

Similarly, Chile (80th) fell 47 places because of its many freedom of information violations, committed very often by security forces during student protests. 

The United States (47th) also owed its fall of 27 places to the many arrests of journalists covering Occupy Wall Street protests. 

The index highlighted the divergence of some European countries from the rest of the continent. 

The crackdown on protests after President Alexander Lukashenko's re-election caused Belarus to fall 14 places to 168th. 

Turkey (148th) lost 10 places because it failed to carry out promised reforms and launched a wave of arrests of journalists that was without precedent since the military dictatorship, RSF said.

Within the European Union, the index reflected a continuation of the distinction between states like Finland and Netherlands that have always had a high ranking and states like Bulgaria (80th), Greece (70th) and Italy (61st).

RSF noted South Sudan among its "noteworthy changes" of 2011, pointing out that the new nation had entered the index in a respectable position (111th) for what is a breakaway from one of the worst ranked countries, Sudan (170th). 

But it said that Africa also saw the biggest falls in the index. 

All countries

1 Finland

- Norway

3 Estonia

- Netherlands

5 Austria

6 Iceland

- Luxembourg

8 Switzerland

9 Cape Verde

10 Canada

- Denmark

12 Sweden

13 New Zealand

14 Czech Republic

15 Ireland

16 Cyprus

- Jamaica

- Germany

19 Costa Rica

20 Belgium

- Namibia

22 Japan

- Surinam

24 Poland

25 Mali

- Organisation of Eastern Caribbean States (OECS)

- Slovakia

28 United Kingdom

29 Niger

30 Australia

- Lithuania

32 Uruguay

33 Portugal

34 Tanzania

35 Papua New Guinea

36 Slovenia

37 El Salvador

38 France

39 Spain

40 Hungary

41 Ghana

42 South Africa

- Botswana

44 South Korea

45 Comoros

- Taiwan

47 United States of America

- Argentina

- Romania

50 Latvia

- Trinidad and Tobago

52 Haiti

53 Moldova

54 Hong-Kong

- Mauritius

- Samoa

57 United States of America (extra-territorial)

58 Malta

- Bosnia and Herzegovina

- Guyana

61 Italy

62 Central African Republic

63 Lesotho

- Sierra Leone

- Tonga

66 Mozambique

67 Mauritania

68 Croatia

- Burkina Faso

70 Bhutan

- Greece

72 Nicaragua

73 Maldives

- Seychelles

75 Guinea-Bissau

- Senegal

77 Armenia

78 Kuwait

79 Togo

80 Serbia

- Bulgaria

- Chile

- Paraguay

84 Kenya

- Madagascar

86 Guinea

- Kosovo

- Timor-Leste

- Zambia

90 Congo

91 Benin

92 Israel (Israeli territory)

93 Lebanon

94 Macedonia

95 Dominican Republic

96 Albania

97 Cameroon

- Guatemala

99 Brazil

100 Mongolia

101 Gabon

102 Cyprus (North)

103 Chad

104 Ecuador

- Georgia

106 Nepal

107 Montenegro

108 Bolivia

- Kyrgyzstan

110 Liberia

111 South Sudan

112 United Arab Emirates

113 Panama

114 Qatar

115 Peru

116 Ukraine

117 Cambodia

- Fiji

- Oman

- Venezuela

- Zimbabwe

122 Algeria

- Tajikistan

- Malaysia

125 Brunei

126 Nigeria

127 Ethiopia

128 Jordan

129 Bangladesh

130 Burundi

131 India

132 Angola

133 Israel (extra-territorial)

134 Tunisia

135 Singapore

- Honduras

137 Thailand

138 Morocco

139 Uganda

140 Philippines

141 Gambia

142 Russia

143 Colombia

144 Swaziland

145 Democratic Republic of Congo

146 Indonesia

- Malawi

148 Turkey

149 Mexico

150 Afghanistan

151 Pakistan

152 Iraq

153 Palestinian Territories

154 Kazakhstan

- Libya

156 Rwanda

157 Uzbekistan

158 Saudi Arabia

159 Côte d’Ivoire

- Djibouti

161 Equatorial Guinea

162 Azerbaijan

163 Sri Lanka

164 Somalia

165 Laos

166 Egypt

167 Cuba

168 Belarus

169 Burma

170 Sudan

171 Yemen

172 Vietnam

173 Bahrein

174 China

175 Iran

176 Syria

177 Turkmenistan

178 North Korea

179 Eritrea

Daily Lives and Corruption, Public Opinion in S. Asia

More than one in three people who deal with public services in South Asia pay bribes, according to a new survey published on 22^nd December 2011.

In the report, titled “Daily Lives and Corruption, Public Opinion in South Asia,” anticorruption group Transparency International surveyed 7,500 people between 2010 and 2011 in Bangladesh, India, the Maldives, Nepal, Pakistan and Sri Lanka on the frequency of bribes in those countries.

The survey asks respondents whether they think corruption has increased and which institutions are considered most corrupt. It also asks if people have paid a bribe in the past 12 months, to whom and for what.

“With bribery such a big a part of life for South Asians, you can see why so many people are angry at their governments for not tackling corruption. People are sick of paying bribes just to get on with their daily lives, and they are sick of the sleaze and undue influence of public servants,” Rukshana Nanayakkara, TI’s senior program coordinator for South Asia, said in a news release.

Political parties and the police are the most corrupt institutions in each of the six countries, followed closely by legislatures and public officials, according to the survey. Officials overseeing land deals were the next likely to demand a bribe, the survey found.

Bangladesh has the most rampant corruption, with 66% of people saying they pay bribes to public institutions. Meanwhile, two-thirds of Indians, Bangladeshis and Pakistanis who dealt with the police ended up paying a bribe.

The study also found that most people think corruption is on the rise in the region, with 62% of those interviewed saying they believe corruption has become worse in the past three years. But 83% of people said they were ready get involved in fighting corruption.

39% of people report paying a bribe in the past 12 months. The result was startlingly high in Bangladesh at 66 per cent, followed by India and Pakistan, with 54 per cent and 49 per cent respectively reporting having paid a bribe to one of nine service providers in the past 12 months. 

62% of people feel that corruption in their country has increased in the past three years. This was felt most strongly in India and Pakistan, where three out of four people felt that corruption had increased over the past three years. Government leaders were named as the most trusted to fight corruption by 38% of people.

Government leaders were named as the most trusted to fight corruption in Bangladesh, the Maldives and Sri Lanka. The media was the most trusted institution in India and Nepal. In Pakistan the highest proportion of people reported that they trust ‘nobody’ to fight corruption.

81% of people agree that ordinary people can make a difference in the fight against corruption. People are especially positive in the Maldives and Pakistan, where 90 per cent and 89 per cent respectively agree that ordinary people can make a difference. 

Outlook for Remittance Flows 2012-14

Nepal has ranked 6th among all countries across the globe that receive more remittances as a share of gross domestic product in 2011, says a report released on 1st December 2011 of the World Bank on Migration and Development.

The Outlook for Remittance Flows 2012-14 estimates that Nepal will receive around US$ 400 million worth of remittances from its overseas workers in 2011, making remittances stand at 20 percent of country´s total GDP. 

“Tajikistan, Lesotho, Samoa, Moldova and Kyrgyz Republic are the top five countries receiving more remittances as a share of GDP, and Nepal stands at the 6th place,” says the report. Remittances received by these top five countries were equal to 31 percent, 29 percent, 25 percent, 23 percent and 21 percent of their respective GDPs.

The new estimates show that the top recipients of remittances among developing countries in 2011 are India (US$58 billion), followed by China (US$57 billion), Mexico (US$ 24 billion) and the Philippines (US$ 23 billion). Pakistan, Bangladesh, Nigeria, Vietnam, Egypt and Lebanon are other large recipients in terms of US dollar.

The report estimates that remittance flows to developing countries in 2011 could have touched US$ 351 billion. This is 8 percent growth over what those countries received in 2010 and well above the growth forecast of 7.3 percent that the WB had made earlier.

When flows to high-income countries are included, the global remittance flows could touch US$406 billion this year.

“And this is the first time since the global financial crisis that remittance flows to all developing regions have increased in 2011”, reads the report. 

The report attributes the rise in remittance flows to countries like Nepal to high oil prices, something which enabled Gulf countries to hire more workers and pay them better than the past few years. The depreciation of local currency, which enabled families back home enjoy net exchange rate gains, also contributed in the flow of remittances in countries like Nepal.

Such finding of the WB matches with the figures that the Nepal Rastra Bank (NRB) released recently. The latest macro-economic report that NRB made public on Wednesday says Nepal received some Rs 75 billion worth of remittances over the first quarter of this fiscal year, which is about 28 percent rise over remittances received in the same period last year.

The report further adds that even though remittances to developing countries grew in 2011, they are vulnerable to the uncertain economic prospects in the migrant destination countries. Following this rebound, the WB predicts that the remittance flows to developing countries could continue in a range of 7-8 percent per annum and reach US$441 billion by 2014.

The remittances are expected to increase 8.0 percent to $351 billion in 2011, 7.3 percent to $377 billion in 2012, 7.9 percent to $406 billion in 2013, and 8.4 percent to $441 billion in 2014.

Global remittance flows, including those to high-income countries, are expected to exceed $515 billion by 2014.

Remittances to the developing economies in East Asia and the Pacific are projected to rise 7.6 percent to $101 billion in 2011 and 7.3 percent to $109 billion in 2012. They are forecast to increase by another 8.0 percent to $117 billion in 2013 and 8.7 percent to $127 billion by 2014.

The World Bank report says that high oil prices, which have hovered over $100 a barrel in recent months, continue to provide a much-needed cushion for migrant employment in, and remittance flows from, the Gulf Cooperation Countries (GCC) and Russia. Oil driven economic activities and increased spending on infrastructure development are making these countries attractive for migrants from developing countries.

The report acknowledges that the remittance costs have fallen steadily from 8.8 percent in 2008 to 7.3 percent in the third quarter of 2011. However, it pinpoints that the cost is still too high, especially in Africa and other small nations where remittances provide a lifeline to the poor.

Following such finding, the WB has pressed the countries across the globe to improve the data on remittances at the national and bilateral levels.

Corruption Perception Index - 2011

Nepal is the second most corrupt country in the South Asia, according to an annual report  by the global anti-corruption watchdog Transparency International (TI).

The Corruption Perception Index (CPI) 2011, published by TI on 1st December 2011, Nepal is ranked at the154th position on the list of the least corrupt countries. Last year, Nepal was placed in the 146th position.  

Among the South Asian countries, Bhutan is the least corrupt country placed in the 38th position and Afghanistan being the most corrupt country ranked in the 182th position.

Similarly, Sri Lanka is placed in the 86th, India in the 95th, Bangladesh in the 120th and Pakistan and the Maldives jointly in the 134th positions.

The TI report says that corruption continues to plague too many countries around the world. According to the Transparency International’s 2011 Corruption Perceptions Index, some governments failing to protect citizens from corruption be it abuse of public resources, bribery or secretive decision-making.

Transparency International warned that protests around the world, often fuelled by corruption and economic instability, clearly show citizens feel their leaders and public institutions are neither transparent nor accountable enough.

The 2011 index scores 183 countries and territories from 0 (highly corrupt) to 10 (very clean) based on perceived levels of public sector corruption. It uses data from 17 surveys that look at factors such as enforcement of anti-corruption laws, access to information and conflicts of interest. Two-thirds of ranked countries score less than five. New Zealand ranks first, followed by Finland and Denmark. Somalia, North Korea (included in the index for the first time) and Myanmar are last.

1. New Zealand 9.5

• 2. Denmark 9.4

• 2. Finland 9.4

4. Sweden 9.3

5. Singapore 9.2

6. Norway 9.0

7. Netherlands 8.9

• 8. Australia 8.8

• 8. Switzerland 8.8

10. Canada 8.7

11. Luxembourg 8.5

12. Hong Kong 8.4

13. Iceland 8.3

• 14. Germany 8.0

• 14. Japan 8.0

• 168. Angola 2.0

• 168. Chad 2.0

• 168. Democratic Republic of Congo 2.0

• 168. Libya 2.0

• 172. Burundi 1.9

• 172. Equatorial Guinea 1.9

• 172. Venezuela 1.9

• 175. Haiti 1.8

• 175. Iraq 1.8

• 177. Sudan 1.6

• 177. Turkmenistan 1.6

• 177. Uzbekistan 1.6

• 180. Afghanistan 1.5

• 180. Myanmar 1.5

• 182. North Korea 1.0

• 182. Somalia 1.0

Human Development Report 2011

Nepal has improved itself in 21st annual Human Development Index (HDI), according to United Nations Development Programme (UNDP).

Its HDI stands at 0.458, which gives the country a rank of 157 out of 187 countries with comparable data, said the report published first week of November 2011 globally.

The index forms part of the UN Development Report, and this year it is focused on environment, sustainability and inequality.

However, Nepal still ranks in the Low Human Development group among the four — Very High Human Development, High Human Development, Medium Human Development and Low Human Development — groups.

 “The HDI of South Asia as a region increased from 0.356 in 1980 to 0.548 at present, placing Nepal below the regional average, the annual flagship publication of the UNDP said, adding that the HDI trends tell an important story both at the national and regional level and highlight the very large gaps in well-being and life chances that continue to divide the interconnected world.

The HDI measures the average achievements in a country in three basic dimensions of human development — a long and healthy life, access to knowledge and a decent standard of living.

Data availability determines HDI country coverage. To enable cross-country comparisons, the HDI is, to the extent possible, calculated based on data from leading international data agencies and other credible data sources available at the time of writing.

Each year since 1990, the UNDP has been publishing the Human Development Index (HDI), which was introduced as an alternative to conventional measures of national development like level of income and the rate of economic growth.

The index represents a push for a broader definition of well-being and provides a composite measure of three basic dimensions of human development including health, education and income.

The report said income distribution has worsened in most of the world - with Latin America the worst region.

By 2050, in an ‘environmental challenge’ scenario factoring in the effects of global warming on food production and pollution, the average HDI would be 12 per cent lower in South Asia and sub-Saharan Africa than would otherwise be the case, the report estimated, adding that bold global action is urgently required for sustainable development, but local initiatives to support poor communities can be both highly cost-effective and environmentally beneficial.

Adverse environmental factors are expected to drive up world food prices by up to 30-50 per cent in the coming decades, the report has warned.

Food production must rise to meet the demands of growing populations, but the combined environmental effects of land degradation, water scarcity and climate change will restrict supply, the report says adding that income poverty and malnutrition could worsen if the prices of key staples rise.

It has also called for a currency transaction tax to help the world’s poorest countries deal with the effects of climate change. “In updated analysis prepared for this report, the North-South Institute estimates that a tax of 0.005 per cent would yield around $40 billion a year,” the annual Report, said, adding that the revenue potential is thus huge.

Half of the malnutrition cases in the world arise from environmental factors, according to the UNDP.

High living standards need not be carbon-fuelled and follow the examples of the richest countries, says the Report, presenting evidence that while Carbon dioxide emissions have been closely linked with national income growth in recent decades, fossil-fuel consumption does not correspond with other key measures of human development. “Growth driven by fossil fuel consumption is not a prerequisite for a better life in broader human development terms,” it said, adding that investments that improve equity—in access, for example, to renewable energy, water and sanitation, and reproductive healthcare — could advance both sustainability and human development.

The Report has also called for electricity service to be provided to the 1.5 billion people who are now off the power grid. It can be done both affordably and sustainably, without a significant rise in carbon emissions.

Overall, this year’s annual human development ranking showed progress made in the quality of life. However, when adjusted against inequalities among the population, there was an overall drop of 23 per cent in the quality of living this year.

In the South Asian region, Bangladesh ranked 146, India 134, Sri Lanka 97, the Maldives 109 and Bhutan 141.

Norway, Australia, the Netherlands, the United States and New Zealand were the top five respectively, while Burundi, Niger and the Democratic Republic of the Congo came last. This year, that spot is taken again by the Democratic Republic of Congo, where the life expectancy is less than 50 years and the gross national income is $280 a person, or about 75 cents a day.

However, when adjusted for inequalities, some countries fell off their top rankings.

Economic Freedom of the World Report 2011

The Economic Freedom of the World Report 2011 released on 19th September 2011 says Nepal's rank slid to 129 out of 141 countries this year. With a score of 5.50 (out of 10), Nepal continued to be one of the least free countries in the world in case of economic freedom.

Nepal continued to fare dismally in economic freedom, an indicator which highlights people's freedom to choose and undertake business activities, due to weak enforcement of industrial and consumer laws, low commitment of country's interim constitution and ongoing political discourse on security of property rights.

The report notes that not just Nepal, but all the countries across the globe performed badly during the year, particularly as enforcement of stringent financial and other sector regulations in the wake of global financial crisis ate up freedom. 

This year, the average global economic freedom score fell to 6.64, the lowest in nearly three decades, from 6.67 in 2008, reads a statement.

Among all 141 countries covered by the report, Hong Kong retained the highest rating for economic freedom, scoring 9.01 out of 10. Other top economically free countries include Singapore, New Zealand, Switzerland, Australia, Canada, Chile, United Kingdom, Mauritius and the United States. Similarly, Hong Kong scores 9.01 out of 10, followed by Singapore (8.68), New Zealand (8.20), Switzerland (8.03), Australia (7.98), Canada (7.81), Chile (7.77), the United Kingdom (7.71), Mauritius (7.67), and the United States (7.60).

This year Zimbabwe maintains the lowest level of economic freedom among the 141 jurisdictions measured. Myanmar, Venezuela, Angola, and Democratic Republic of Congo round out the bottom five nations.

The Economic Freedom of the World Report uses 42 different measures and rank economic freedom under five broader indicators like size of government, legal structure and security of property rights, access to sound money, freedom to trade internationally and regulation of credit, labor and business.

Sadly, Nepal's scores on all those indicators fell down this year, with score remaining the least on indicator related to legal structures and security of property rights. 

The report shows that individuals living in countries with high levels of economic freedom enjoy higher level of prosperity, greater individual freedoms and longer life spans. 

Measuring the Information Society 2011

Nepal has moved three places up from the ranking of 137 in 2008 to 134 in 2010 among 152 countries in the Information and Communication Development Index (IDI) that is published on 19th September 2011 by International Telecommunication Union (ITU).

Publishing its report ‘Measuring the Information Society 2011’, the union has said that information and communication technology uptake continues to accelerate worldwide, spurred by a steady fall in the price of telephone and broadband Internet services.

A key feature of the report is the ICT Development Index (IDI), which ranks 152 countries according to their level of ICT access, use and skills, and compares 2008 and 2010 scores. ICT Development Index captures progress made in regard to ICT infrastructure, use and skills. 

Nepal received the actual IDI value of 1.56 in 2010, up to from 1.28 in 2008, according to the report. 

However, Nepal fell in the lower raking compared to the countries from Asia Pacific countries. Nepal is ranked at the 25th position among the 27 Asia Pacific countries. 

In South Asia, Maldives tops the rank with 67th position followed by Sri Lanka (105th), India (116th), Bhutan (119th), Pakistan (123rd), Nepal (134th) and Bangladesh (137th), according to the report.

Nepal is in the low economics level according to ICT Development Index levels and Income, the union in report said, adding that the International Telecommunication Union (ITU) has divided four major levels – high (IDI values above 6.16), upper (IDI values between 4.09 and 6.4), medium (IDI values between 2.59 and 4.05) and low (IDI values below 2.55).

All the South Asian countries have been categorized as a low economics level. Countries that are categorized under low IDI levels and income need to give attention on policy-makers and ICT investors to promote ICT sector, according to the report.

“Falling prices are fuelling growth in high-speed Internet services, especially in developing countries,” it said.

South Korea has the world’s most developed economy in Information and Communication Technology (ICT), though, South Korea is the fourth largest economy in Asia.

Sweden, Iceland, Denmark and Finland were also among the top five in the ICT Development Index (IDI). Global mobile broadband subscriptions reached 872 million by the end of last year, the report said, adding that three hundred million of those are in developing countries.

Even so, the report warned that the people in many low-income countries were still paying too much for high-speed Internet connections. “Also, there are differences in broadband speed and quality from country to country,” it said.

Nepal ranks 17th on women representation in Parliament

Nepal ranks 17th on women representation in Parliament as per the list of World and Regional Averages of Women in Parliament, available at the Regional Seminar on Asian Parliaments (2011 Sep 15-17, New Delhi). The seminar is organized by the Inter-Parliamentary Union and the Indian Parliament.

While Rwanda, a small East African nation, tops the list of nations across the world for having the maximum representation of women in Parliament. Strife-torn Afghanistan and Iraq are ranked at 32nd and 38th rank, having 27.3 % and 25.5 % women representation in their lower houses.

India ranks a poor 100th, has only 10.8 % representation of women in the Lok Sabha with 59 out of 545 members as women. In the Rajya Sabha, India has only nine % women with only 21 women out of a total of 233 members.

India's ranking on this front falls even below its neighbours like Nepal, Pakistan, Bangladesh and troubled Iraq and Afghanistan.

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)