Network Readiness Index 2020

Nepal
The Network Readiness Index (NRI) is one of the leading global indices on the application and impact of
information and communication technology (ICT) in economies around the world. In its latest version of
2020 the NRI Report maps the network-based readiness landscape of 134 economies based on their
performances in four different pillars: Technology, People, Governance, and Impact. Each of these pillars is
itself comprised of three sub-pillars (see Figure 1) that have been populated by a total of 60 variables.
Figure 1: The NRI 2020 model

Global NRI position of Nepal

Nepal ranks 113th out of the 134 economies included in the NRI 2020 (Figure 2). Its main strength relates to
Technology. The greatest scope for improvement, meanwhile, concerns Governance.

Figure 2: Nepal global ranking, overall and by pillar

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Performance at sub-pillar level
When it comes to sub-pillars, the strongest showings of Nepal relate to Quality of Life, Content and Future
Technologies, among others (Table 1). More could be done, though, to improve the economy's performances in the
Trust, Economy and SDG Contribution sub-pillars.

Table 1: Nepal rankings by sub-pillar

Sub-pillar Rank Sub-pillar Rank
Quality of Life 76 Businesses 109
Content 89 Inclusion 113
Future Technologies 106 Access 114
Governments 107 Trust 117
Regulation 107 Economy 117
Individuals 108 SDG Contribution 127

NRI score and income

Figure 3 shows the position of Nepal in terms of both NRI score and GDP per capita (PPP). The trend line shows the
expected NRI score given an economy's income level. As can be seen, Nepal is slightly above the trend line, which
suggests that its network readiness is more or less in line with what would be expected given its income level.

Figure 3: NRI score and GDP per capita PPP (log)

Note: SWE = Sweden (rank: 1), DNK = Denmark (2), SGP = Singapore (3), CHN = China (40), IND = India (88). USA is ranked 8th. Nepal belongs to
the group of lower-middle-income countries, where the best performer is Vietnam (VNM). The top performer of its region-Asia & Pacific-is
Singapore (SGP).

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Performance against its income group and region
Lower-middle-income countries
Nepal is ranked 26th in the group of lower-middle-income countries (Figure 4, left panel). In terms of pillar
performance, it has a score below the income group average in each of the four pillars. At the sub-pillar level, it
outperforms lower-middle-income countries in two of the twelve sub-pillars: Content and Quality of Life.

Asia & Pacific

Nepal is ranked 21st within Asia & Pacific (Figure 4, right panel). It lags behind its region in each of the four pillars.
With regard to sub-pillars, it trails the regional average in each of them.

Figure 4: Performance of Nepal against its income group and region, overall and by pillar

Table 2: Nepal scores vs. averages of its income group and region, overall and by pillar
Lower-middle-income
Dimension Nepal Asia & Pacific
countries
NRI 31.81 36.72 52.76
Technology 24.28 27.72 45.33
People 28.81 33.88 49.64
Governance 36.82 43.15 59.20
Impact 37.34 42.15 56.86

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Strongest and weakest indicators
The indicators where Nepal performs particularly well include e-commerce legislation, Income inequality, and
Privacy protection by law content (Table 3). By contrast, the economy's weakest indicators include SDG 11:
Sustainable Cities and Communities, 4G mobile network coverage, Business use of digital tools, and SDG 7:
Affordable and Clean Energy.

Table 3: Top-ranked and bottom-ranked indicators of Nepal

Strongest indicators Rank Weakest indicators Rank
e-commerce legislation 1 Handset prices 115
Income inequality 33 Government online services 115
Privacy protection by law content 71 Online access to financial account 115
Freedom to make life choices 75 Regulatory quality 115
Professionals 77 Internet shopping 116
GitHub commits 79 Computer software spending 117
Happiness 79 Business use of digital tools 118
Publication and use of open data 81 SDG 7: Affordable and Clean Energy 118
Ease of doing business 86 4G mobile network coverage 122
Wikipedia edits 87 SDG 11: Sustainable Cities and Communities 127

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NRI 2020 At-A-Glance: Nepal
Network Readiness Index Rank: 113 (out of 134) Score: 31.81
Pillar/sub-pillar Rank Score Pillar/sub-pillar Rank Score
A. Technology pillar 111 24.28 C. Governance pillar 114 36.82
1st sub-pillar: Access 114 32.63 1st sub-pillar: Trust 117 19.42
2nd sub-pillar: Content 89 21.84 2nd sub-pillar: Regulation 107 50.74
3rd sub-pillar: Future Technologies 106 18.37 3rd sub-pillar: Inclusion 113 40.30

B. People pillar 113 28.81 D. Impact pillar 113 37.34

1st sub-pillar: Individuals 108 31.24 1st sub-pillar: Economy 117 12.00
2nd sub-pillar: Businesses 109 29.29 2nd sub-pillar: Quality of Life 76 63.07
3rd sub-pillar: Governments 107 25.88 3rd sub-pillar: SDG Contribution 127 36.96

The Network Readiness Index in detail

Indicator Rank Score Indicator Rank Score
A. Technology pillar 111 24.28 C. Governance pillar 114 36.82
1st sub-pillar: Access 114 32.63 1st sub-pillar: Trust 117 19.42
1.1.1 Mobile tariffs 92 49.45 3.1.1 Secure Internet servers 90 41.83
1.1.2 Handset prices 115 21.21 3.1.2 Cybersecurity 108 27.30
1.1.3 Internet access 112 17.70 3.1.3 Online access to financial account 115 6.34
1.1.4 4G mobile network coverage 122 15.47 3.1.4 Internet shopping 116 2.20

1.1.5 Fixed-broadband subscriptions NA NA 2nd sub-pillar: Regulation 107 50.74

1.1.6 International Internet bandwidth 108 59.30 3.2.1 Regulatory quality 115 34.99
1.1.7 Internet access in schools NA NA 3.2.2 ICT regulatory environment 106 66.03

2nd sub-pillar: Content 89 21.84 3.2.3 Legal framework's adaptability to emerging technologies 96 24.70
1.2.1 GitHub commits 79 2.36 3.2.4 e-commerce legislation 1 100.00
1.2.2 Wikipedia edits 87 32.32 3.2.5 Privacy protection by law content 71 27.96

1.2.3 Internet domain registrations * * 3rd sub-pillar: Inclusion 113 40.30

1.2.4 Mobile apps development 92 51.85 3.3.1 E-Participation 114 34.56

3rd sub-pillar: Future Technologies 106 18.37 3.3.2 Socioeconomic gap in use of digital payments 96 47.57
1.3.1 Adoption of emerging technologies 108 27.45 3.3.3 Availability of local online content 108 34.35
1.3.2 Investment in emerging technologies 105 26.30 3.3.4 Gender gap in Internet use NA NA
1.3.3 ICT PCT patent applications NA NA 3.3.5 Rural gap in use of digital payments 110 44.73

1.3.4 Computer software spending 117 1.36 D. Impact pillar 113 37.34
1.3.5 Robot density NA NA 1st sub-pillar: Economy 117 12.00

B. People pillar 113 28.81 4.1.1 Medium and high-tech industry 104 10.43
1st sub-pillar: Individuals 108 31.24 4.1.2 High-tech exports 112 2.24
2.1.1 Internet users 105 32.31 4.1.3 PCT patent applications NA NA
2.1.2 Active mobile-broadband subscriptions 101 17.70 4.1.4 Labor productivity per employee NA NA
2.1.3 Use of virtual social networks 100 34.02 4.1.5 Prevalence of gig economy 106 23.33

2.1.4 Tertiary enrollment 102 8.53 2nd sub-pillar: Quality of Life 76 63.07
2.1.5 Adult literacy rate 94 58.71 4.2.1 Happiness 79 54.16
2.1.6 ICT skills 100 36.17 4.2.2 Freedom to make life choices 75 70.62

2nd sub-pillar: Businesses 109 29.29 4.2.3 Income inequality 33 77.84

2.2.1 Firms with website 107 19.27 4.2.4 Healthy life expectancy at birth 98 49.66

2.2.2 Ease of doing business 86 58.29 3rd sub-pillar: SDG Contribution 127 36.96
2.2.3 Professionals 77 19.27 4.3.1 SDG 3: Good Health and Well-Being 109 32.79
2.2.4 Technicians and associate professionals 94 18.44 4.3.2 SDG 4: Quality Education NA NA
2.2.5 Business use of digital tools 118 31.19 4.3.3 SDG 5: Gender Equality 109 50.76
2.2.6 R&D expenditure by businesses NA NA 4.3.4 SDG 7: Affordable and Clean Energy 118 52.67

3rd sub-pillar: Governments 107 25.88 . . .

2.3.1 Government online services 115 38.18 . . .
2.3.2 Publication and use of open data 81 15.49 . . .
2.3.3 Government promotion of investment in emerging tech 100 23.98 . . .
2.3.4 R&D expenditure by governments and higher education NA NA . . .
* Confidential data

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