Travel Reference
In-Depth Information
materials in exchange for their own products. In this cultural
environment, bartering is the key to everyday survival.
Today, Nepal, like many other less developed countries, is
undergoing gradual change. The influence of globalization is
increasing, and its impact is being felt on even the smallest and
most remote countries. Times have long passed when a place
could remain isolated from others. In this context, the Nepal-
ese economy, as minor as it is, will eventually enter the market
system. Step by step, traditional economies will be replaced by
a commercially oriented market economy, even in the most
remote villages. This trend is already visible in the shrinking
influence of agriculture in the country's gross domestic prod-
uct. A country such as Nepal cannot rely on its own commer-
cial agriculture to provide the nation's needs. Self-sufficiency
is costly to achieve and technologically difficult to develop in
a poor country. As a result, Nepal is dependent on imports for
much of its food, particularly that consumed in urban centers.
Such an economic policy, however, creates several problems.
First, the imported products lower prices of and demand
for locally grown crops. This, in turn, decreases the already
low incomes of Nepalese peasants. Second, such economic
maneuvering decreases the need for labor and contributes to
the growth of unemployment. Finally, high unemployment
rates lead to a variety of serious social issues and unrest. This
is a “catch-22” for the developing world. Such countries need
to modernize in order to achieve long-term economic ben-
efits. In so doing, however, governments in the LDCs often
create a number of short-term problems. In Nepal, where so
many people are tied to the land, this problem is of substantial
magnitude. To prevent potential economic, social, and politi-
cal problems, various attempts have been made to develop
the country's agricultural sector. With help from international
institutions and agencies, several projects have been envisioned.
Progress, however, has been very slow, and the impact on the
national economy has been minimal.
