Travel Reference
In-Depth Information
an ideal environment for power plants. Furthermore, Nepal's
geographic locationﾭin this context, at leastﾭis a real bless-
ing. It has as neighbors the world's two most heavily populated
countries and lands that rank among the world's most rapidly
growing economies. India and China are hungry for any kind
of energy to fuel their future economic growth and develop-
ment. Both could be major customers for Nepal's surplus elec-
trical energy.
Economic reports estimate that currently only one to two
percent of Nepal's hydroelectric potential has been harnessed.
The main issue here, as in many other aspects of Nepal's econ-
omy, is the removal of large-scale projects from direct govern-
mental control. In less developed countries, political leadership
often relates economic progress with its own benefits. As a
result, governments maintain strict control over many revenue-
producing activities (such as energy production) and financial
management. In other words, corruption must be eliminated in
order to attract foreign investments. Nepal is no exception.
SECONDARY INDUSTRIES
During recent decades, globalization has created some rather
peculiar economic trends. For example, a number of coun-
tries have managed to transform their economy from agri-
culture based to service oriented in a relatively short period
of time. In so doing, they have almost entirely bypassed
manufacturing. That is, they have jumped over the second-
ary stage of industrial development. If Nepal is to join the
economically developed world, this fast-forward scenario is
both necessary and quite possible. Manufacturing industries
barely exist in Nepal. In other words, the country has not
made the transition from primary to secondary economic
activity and dependence.
For example, only about 20 percent of the country's $41
billion GDP was contributed by the manufacturing sectorﾭ
or about $8 billion. This sector is by no means Nepal's equiva-
lent to the glory days of Detroit or Pittsburgh in the United
