Planned Development of

Nepal

Evolution
14th Periodic Plan
An overview and target
 Concept
Development planning is:
• a deliberate effort of the government to
influence in the major socio-economic
variables like GDP, consumption, savings,
investment, prices and employment etc, of a
country for a specific period of time to achieve
its desired objectives.
• It is the instrument to define a country’s
future direction and destination.
 Concept ..
• A plan must be based on a long term vision (15-20 yrs)
and goal of a country set to achieve in a time period.
• A medium term plan provides medium-term vision of
the country. (3-7 yrs).
• The annual plan is important because it translate the
periodic plan into action.
• Planning is more direction-oriented in command
economy and more indicative in liberalized and mixed
economy.
 Why development plan?
• State knows the best
• State accords priority to the real needs
• Best use of resources
• Focus and perspective
• Better distribution of resources and outputs
• Efficient resource mobilization
 Why..
• Development in all areas including input
management to outputs and impacts
• Saves time, energy and resources
• Poverty reduction
• Inclusive development
• Private sector development
• Market development
• Coordination
• Foreign aid mobilization
• Development of remote and deprived areas
 Planned development: Brief history

• Begins since 1928 from the then Soviet Union.

• Adopted and spread after 1940’s in the
developing world in view of adoption of
mixed economy.
• Juddha Shamsher: 20 year Plan
• Mohan Shamsher: 15 year Plan. Declared that
Nepal will follow planned development
 History…
• Nepal introduced economic plan about 6
decade ago.
• The National Planning Commission (NPC) was
created in 1956.
• NPC is the apex body that formulates the
country’s development plans.
• The NPC assesses resource needs, identifies
sources of funding and allocate budget for
socio-economic development.
 History…
• The First Plan (2013-2018) was introduced in
1956 (BS 2013). Transport and
communication sector was given top priority.
• 13th periodic plan has just been completed.
• The 14th plan is in the beginning phase of
implementation .
 History….
• Nepal started 3 years interim plan after 10th
five-year plan (2059-64)
• 11th three-year plan (2064-67)
• 12th three-year plan (2067-70)
• 13th three-year plan (2070-73)
• 14th three-year plan (2073-76)
 Evaluation of 13 Plan th

Long-Term Vision:
• To upgrade Nepal from a least developed to a
developing country by 2022.
  Objective:
• To bring about a direct positive change in the living
standards of the general public by reducing the
economic and human poverty prevalent in the nation.
Goal:
• The main goal is to decrease the proportion of the
population living below the poverty line to 18 percent.
 Evaluation…
S. Targets of Achievemen
Indicators t
No. 13th Plan

1 Annual average economic growth rate (%) 6.0 2.92

2 Annual average agricultural growth rate (%) 4.5 2.22

3 Annual average non-agricultural sector growth 6.7 3.35

rate (%)
4 Annual average growth rate in employment (%) 3.2 2.9

5 Life expectancy at birth (in years) 71 71

6 Literacy rate (15-24 years) 90 88.6

7 Population below poverty line 18 21.6

8 Maternal mortality rate (per 100,000) 134 258

9 Population with access to drinking water (%) 95 83.6

 Evaluation…
10 Population with access to sanitation (%) 90.5 81

11 Net enrolment rate at the primary level (Grade 1- 100 96.6

5) (%)
12 Number of district headquarters with road 75 73
connectivity
13 Density of mobile phones and telephones (per 100 110.25
100)
14 Installed capacity of electricity generation (in 1426 829
MW)
15 Population with access to electricity (%) 87 84

16 Irrigation (in hectares lakh) 14.87 13.96

17 Forest coverage area (%) 40 44.7

18 Total length of road transport (km) 27965 27495
 Strategies
1. Achieve inclusive, broad-based and sustainable economic
growth by enhancing the contributions of the private,
government and cooperative sectors to the development
process.
2. Develop physical infrastructure.
3. Enhance access to social services and improve the use and
quality of those services.
4. Enhance good governance in the public and other sectors.
5. Empower targeted groups and sectors both socially and
economically.
6.Implement development programs which support climate change
adaption.
 The Fourteenth Plan (2016/17-2018/19)
Vision
• Self- reliant, prosperous and socialism oriented national
economy and affluent Nepalese people.
Goal
• To reach the level of middle income country through welfare
state with social justice.
Objective
• To achieve economic and social transformation by rapid poverty
reduction through high economic growth rate along with
employment oriented and just distribution.
Strategy
• Following five key strategies have been set to achieve the above
vision, goal and objectives:
 Strategies..
• To increase production by transformation of the
agriculture sector and expansion of tourism, industrial
and small and medium enterprises.
• To build infrastructure for energy, road and air
transport, information and communication and rural-
urban and development of trilateral connectivity.
• To achieve high and sustainable reform in human
development by emphasizing on social development,
and social security as well as social protection.
 Strategies..
• To promote overall good governance by
economic, social and governance reform,
efficient and accountable public finance, clean,
transparent and people friendly public service as
well as protecting and promoting human rights.
• To enhance institutional capacity along with
gender equality, inclusion, environment
protection and maximum use of science and
technology.
 Targets
S. Status of FY Targets
Indicators
N 2015/16 14th Plan
1 Annual average economic growth rate (%) 0.77 7.2

2 Annual average agricultural growth rate (%) 1.33 4.7

3 Annual average non-agricultural sector growth rate 0.63 8.4

(%)
4 Inflation rate (%) 9.5 7.5

5 Life expectancy at birth (in years) 71 72

6 GDP per capita (in ,000) 80.9 105.70

7 HDI 0.54 0.57

8 Gender Empowerment Index 0.56 0.58

9 Literacy Rate (15-24 yrs) 88.60 91

10 Population below poverty rate 21.60 17

11 Net enrolment rate at the secondary level (%) 37.70 45

12 Number of VDC with road connectivity 2739 3072

13 Access to Internet service population (% 100) 46.40 65

14 Installed capacity of electricity generation (in 829 2279

MW)
15 Population with access to electricity (%) 74 87

16 Irrigation (in lakh hectares) 13.96 15.20

17 Population with access to basic drinking water 83.6 90.20

(%)
18 Total length of regional and strategic road 27,495 29,495
transport (km)
 Economic Growth Rate and Investment Requirement in the Fourteenth
Plan

• Annual economic growth rate in the 14th Plan period will be

7.2 percent, with growth rates in the agricultural and non-
agricultural sectors maintained at 4.7 and 8.4 percent
respectively.
• The incremental capital output ratio (ICOR) is estimated to be
5.2:1.
• Gross fixed capital formation at the constant prices of FY
2015/16 will be Rs.2424.96 billion, Rs. 954 billion (39.4%) will
be invested by the public sector, Rs. 1327.30 billion (54.7%) by
the private sector and Rs. 143.24 billion (5.9%) by the co-
operative sector.
 Assessment of Plan development
• 9 five year plans and 3 three year plans have
been completed.
• Achievements of these plans have been
mixed.
• Since 1990: adoption of market or liberal
economic policy in the context of
globalisation, the form of the Plan has
changed from planning by direction to more
indicative or inducement type of plan.
 Assessment …
• The role of the Government has been
changed
- the Government: a catalyst, motivator,
regulator and facilitator role
- the private sector: a lead role in the
economy.
• Now: adoption of three pillar economy viz.
public, private and cooperative sector
 Assessment …
• More participatory approaches has been
followed than before.
• Both “top down” and bottom up” approach
has been followed.
• Started to formulate more strategic type of
planning
• Prioritization of projects and programs has
been started since the Tenth Plan
 Assessment ….
• Established a development paradigm
• Adopted mixed (State and the private sector)
development approach
• Recorded an average growth of about 4%
• Infrastructure development, social development
• Resource mobilization
• Change in livelihood
• Change in economic activities and structure
Success of plan are the function of
 Total knowledge on the nation as a whole including
grass roots level realities
 Setting of the objectives
 Appropriateness of policies and strategies
 Adequacy of data and information
 Realistic targets and projections
 Adequate consultations with the stakeholders
 Proper understanding of needs, resource and values
 Provision of resources
 Inter-sector consistency
 Success…
• Planning modality and approach
• Human and institutional resources
• Appropriate organizational set up and administrative
arrangement
• Public participation
• Coordination among the stakeholders
• Good quality projects/programs
• Effective Implementation
• Effective monitoring and evaluation mechanism