Construction Management in Developing Countries

ECM 627.3

Chapter 1

Prof. Dr. Hari K. Shrestha

Nepal Engineering College
[email protected], [email protected]

1
CM in Developing Countries/Ch 1_HKS Updated: Oct 3, 2023
 (देश) विकासको अवधारणा
• विकासको परिभाषा कस्ले गर्छ? वृद्धी र विकास एउटै हो?
• विकासको परिभाषा किन यति धेरै र किन निरन्तर बदलिरहन्छ?
• विकासको परिभाषामा राजनितीकरण हुन्छ? विकास कस्कोलागि?
• विकासको मापदण्ड किन निरन्तर बदलिरहन्छ?
• दीर्घकालसम्म अविकसित रहनुका आन्तरिक र वाह्य कारणहरु
• विकसित र विकासशील देशहरूमा समानता /भिन्नता
• विकासका विभिन्न आयामहरूः
– भौतिक संरचनाको विस्तारः बाटो, पुल, भवन, यातायात, उर्जा, संचार
– आर्थिक विकासः कु ल ग्राहस्थ्य उत्पादन (समान क्रयशक्तिमा), निर्यात
– सामाजिक न्यायः खाद्यान्न, शिक्षा, स्वास्थ्य, रोजगार, शक्ति र स्रोतमा पहुँच
– सामाजिक सद्भावः संस्कार, कानूनी राज्य, भौतिक सुरक्षा, लगानी मैत्री वातावरण, पारदर्शिता, उत्तरदायी सुशासन,
धार्मिक/सास्कृ तिक/लैंगिक स्वतन्त्रता, भेदभाव विहिनता
– वातावरणीय न्यायः वातावरणीय संतुलन कायम, वातावरणीय न्याय
– संतुलित विकासः वर्गगत (आर्थिक तथा सामाजिक), पेशागत, क्षेत्रगत
– दीगो विकासः लामो समयसम्म, भविष्य(भावी पुस्ता)सम्म सकारात्मक (SDG)
– देशको इज्जतः मानसिक सुख, नागरीक स्वाभिमान, गर्वको वातावरण 2
https://www.undp.org/content/dam/nepal/docs/reports/SDG%20final%20report-nepal.pdf

3
 1.1 Defining Development:
Multiple definitions of development
1. The systematic use of scientific and technical knowledge to
meet specific objectives or requirements.
2. The process of economic and social transformation that is
based on complex cultural and environmental factors and their
interactions.
3. Development is the act of expansion and growth: growth of the
economy, growth of the people and the people's quality of life.

Which definition of development is the best, and why?

You may propose your own definition, and defend it.

4
 Development Thinking and Policy Involves

• Different meanings of development over time

(what for?, how to measure?)
• Different dimensions – economic, social,
environmental, political-legal, science-
technology, institutional, governance, military
• Different Stakeholders: development for
whom? At what cost?
• Different Contexts: Cultural values, social
practices, ecological conditions
5
 Major Traditional Approaches and
definitions of development
Perspectives Definitions
• Modernization: Development is state-led economic growth –
industrial modernity; China as a good example.
• Government as the prime agency to plan and execute dev. projects
• Development is government’s responsibility
• Government not only facilitates but also operates dev. projects

State-led: Government takes

responsibility of all essential sectors.
• National Security (external/internal)
• Law and Order
• Food Security (production/distribution)
• Basic Production/Industry
• Education and Research
• Health and Pharmacy
• Infrastructure (transportation,
energy…)
• Water Supply, Sewerage, Sanitation 6
• Conservation (nature and heritage)…
China vs. U.S.A.
Brenda P. Wenning, Dec 23, 2019

“The U.S. has retained its position of being the world’s largest
economy since 1871,” according to Investopedia. “The size of the
U.S. economy was at $20.49 trillion in 2018 in nominal terms and
is expected to reach $21.35 trillion in 2019.”
China’s nominal gross domestic product (GDP) is $13.41 trillion,
making it second to the United States, but its GDP based on
purchasing power parity (PPP) is $25.27 trillion, exceeding that of
the United States. Then again, China is known for exaggerating
its growth, so the numbers may not be accurate.
With a population of 1.43 billion people, compared with about 329
million in the United States, China has a population that’s more
than four times the size of the U.S. population. American
companies that need to continue growing have become
dependent on the world’s largest consumer market. China,
meanwhile, needs America’s technology and innovation.

https://www.patriotledger.com/news/20191223/china-vs-usa
9
10
 State-led development?
Opponents of state-led development points towards
failure of government lead projects and collapse of
countries which followed state led development.

If the Government of Nepal

properly used all the ODA it
received up to now … 11
Motorbike hill at Koteshor Traffic
Police Station;
Resources unused is resources
wasted!
Resources, if unmanaged, can
turn into problem!

12
• Neo-liberalism
Development is Market-led economic growth.
Policy: Get prices right; curb state failure through structural reform
(deregulation, liberalization, privatization); USA, UK, India after
Rajiv Gandhi, as examples. Government should facilitate, not
meddle, nor compete with the market, in development process
• NGO led Development: When government is weak, market does
not function, civic society is incapable, NGO can lead development
NGOs as partners of development, with link to the grass root and
the donors/sponsors/government
NGOs can focus, where central level government tend to neglect.
• Alternative Development: is community-led development should
be equitable, sustainable, participatory.
Themes: state & market failure; participation; local development
Bottom up approach to development; local level planning, not
13
central level planning, more role of think tanks, citizen groups, …
Neo-liberalism: Privatization/market to lead development

14
Critical view on the traditional approach of development:
• Focus should be on Human development :
Human capacitation and empowerment
Themes: Human resource development, HDI

• Challenges the basic notion of the traditional concept of

development.
• Development is destructive, Western concepts and forced on
indigenous societies. “Consumption level” unrelated to
development.
• Development for whom? Don’t need development at “our” cost.
• Themes: Local level development, Gandhian thinking, “small is
beautiful”, should be locally manageable, decentralized
development
• Environmental movements and sustainable development.
16
The new economic view of development
Dudley Seers (1969)
(1920-1983)
Economic growth is necessary for national development; however,
the growth should result in measurable decline in
• Poverty
• Unemployment and
• Inequality
If one or two of these central problems have been growing worse,
especially if all three have, it would be strange to call the result
DEVELOPMENT even if per capita income doubled. Seers challenged
the notion that economic growth automatically results in societal
development.
Do you agree with Seer’s notion of development?
What are the assumptions (background realities)
CM in Developing 17
Countries/Ch 1_HKS
behind his notion?
Why hunger in India is worse than in Nepal: 10 points
TIMESOFINDIA.COM, Oct 13, 2017
https://timesofindia.indiatimes.com/india/why-hunger-in-india-is-worse-th
an-in-nepal-10-points/articleshow/
Flaw in economic growth as development evident during Covid-19 pandemic
18
 1.2 Denis Goulet’s Three Core Values of Development (1971)

– Life Sustenance: The ability to meet basic needs: food &

water, shelter, health, education and protection

 Self-esteem: A sense of worth and self respect (to be a

person); each person should be given his due respect
and due right

 Freedom from Servitude: To be able to choose; the

emancipation from alienating material conditions of life
and from social servitude to nature, ignorance, other
people, misery, institutions and dogmatic beliefs.
Human freedom encompasses various components of
political freedom like personal security, the rule of law,
freedom of expression, political participation, and
equality of opportunity.

https://economicsconcepts.com/new_economic_view_of_development.htm
20
CM in Developing Countries/Ch 1_HKS
 Capability approach
Amartya Sen

• What a person is, or can be, and does or can do?

• 5 Disparities
1. Personal heterogeneities – age, gender,
disabilities, illness etc.
2. Environmental diversities
3. Variations in social climate
4. Relational perspectives
5. Distribution within family

CM in Developing Countries/Ch 1_HKS 22

Sen attempts to expand the basic interpretations of freedom by
examining five elemental forms of instrumental freedoms:
(1)political freedoms, (2) economic facilities, (3) social
opportunities, (4) transparency guarantees, and (5)
protective security.
These forms of freedom are complementary, remaining
interrelated and inextricable.
For Sen, these freedoms constitute not only the means, but
also the ends in development. Poverty, Sen asserts, should
be seen "as a deprivation of basic capabilities, rather than
merely as low income" (Sen, 1999), contesting the general
belief amongst economists who view income as the be all and end
all of development.
He is known for bringing an "ethical dimension" to a field
dominated by technical specialists. Based on the example of the
former Soviet Union, Sen argued that political liberties are
necessary for sustainable development

23
 1.3 Three Broad Objectives of National
Development
1. To increase the availability and widen the
distribution of basic needs
• Food, shelter, health and protection
• Rising per capita incomes
• Elimination of absolute poverty
• Greater employment opportunities, and
• Lessening income inequalities
are necessary but not the sufficient conditions for
development.
Despite Having Robust Economic Growth, India is Backward in Healthcare, Sanitation, &
Drinking Water
https://thewaternetwork.com/article-FfV/despite-having-robust-economic-growth-india-is-backward-in-healthcare-sanitation-drinking-water-cL0PK
wlcSTru0LUgrdRKXA
, Feb 2016
2nd Covid-19 Wave: Revealed weakness and vulnerability of Indian healthcare system, despite
boasting as global powerhouse of pharmacy and success in medical tourism.
CM in Developing Countries/Ch 1_HKS 25
 Three Broad Objectives of National Development

2. To raise levels/standard of living:

Enhanced material well-being
as well as greater
individual and national self-esteem

3. To expand the range of economic

and social choices
Free from servitude and dependence

Any differences from Gaulet’s three core values of development?

CM in Developing Countries/Ch 1_HKS 26

28
www.scidev.net/global/energy/data-visualisation/africa-hydropower-future-
interactive.html

29
Sri Lanka: 64th position; Bhutan: No data

30
Seven Categories of Human Security: Are these the objectives of Development?
The characteristic of human security today is multidimensional and intricate. Therefore, it was defined with seven categories by
the UN (See Human Development Report, 1994): economic, food, health, environmental, personal, community and political.
Economic security is job security and assures basic income. Food security doesn’t only mean availability of food, but also
economic access to food. Health security covers different conditions such as access to health services and to safe water.
Environmental security ranges over many issues such as prevention of air pollution, irrigated land conservation and prevention of
natural disasters. Personal security includes protection from domestic violence, child abuse and suicide. Community security
means conservation of traditions and cultures commonly valued in communities. Political security mainly signifies protection of
human rights.
United Nations. (2016). Human Security Handbook. New York: United Nations. 31
 1.4 Sources of (under)development
(intrinsic and extrinsic)
Intrinsic (factors that are within national control)
• Attitudes and aptitudes of the decision makers
- Attitudes and culture of the people;
- Attitude towards: (a) change and development, (b) foreign direct investment, (c)
research and innovation
- Aptitudes (natural capacity/tendency) and behavior of the elites and leaders to
effectively deal with internal and external developmental issues
• Legal structures and institutions in place
- Politics: Political stability, policy stability, legal stability
- Governance: facilitate versus red tape, degree of transparency/corruption
- Rule of law: uniform, fair and predictable application of law
- Democracy/Bureaucracy/autocracy
- Local capital market
- Security: financial and personal /physical
• Institutional Set up to facilitate development process
– Coordination and cooperation among the institutes
– One door versus multi layer clearance/approval
Several theories of underdevelopment: (For long list of theories of underdevelopment:
http://www.professor-frithjof-kuhnen.de/publications/causes-of-underdevelopment/0.htm )
32
CM in Developing Countries/Ch 1_HKS
 Sources of (under) development….(Contd.)
Extrinsic factors (factors that are beyond national control):
- Geopolitical and commercial interest that it creates compared to other countries;
(Porter’s Diamond Model); free access to international market, country’s need to
proactively compete to attract FDI, grant/loan, technology transfer
- Place of a country in a historical and cultural system; membership in multinational
organizations, like UN, Common Wealth, ASEAN, BIMSTEC, SAARC, SAFTA
- “Reforms” imposed in counterpart by multilateral organizations (like the IMF,
World Bank, IFC, ADB, AIIB) to get out of situations of deficit and indebtedness
in which the country is placed.
- Lack of interest in and comprehension for the specific dynamics of a nation, by
multinational companies.
- Changes in financing/funding policies of multinational/multilateral organizations
- Global Climate Change
- Changes in policies and priorities of donor countries, and UN System
- Protectionism of other countries
- Level of conflict among neighboring countries
- Image of country (business friendly, safety of investment and personnel,
infrastructure, availability of human resources, reliability of power/energy,
transparency, level of corruption, intellectual property right…) portrayed in 33
influential foreign media and embassy advisory CM in Developing Countries/Ch 1_HKS
 Chapter 1 Assignment; File Name: CRN_Initial_Chap1 Assignment
Ex.: 30_XYZ_Chap1 Assignment1
Impacts on CMDC (not DC)
Intrinsic Factors Investment Work culture Quality ……
Attitudes and aptitudes
Attitudes and culture of the people

!!
Attitude towards: (a) change and development, (b) foreign direct

rix
investment, (c) research and innovation

at
Aptitudes (natural capacity/tendency) and behavior of the elites/leaders
to effectively deal with internal/external developmental issues

m
Legal structures and institutions

is
Politics: Political, policy and legal stability

th
Governance: facilitate versus red tape, degree of transparency

it
Rule of law: uniform, fair and predictable application of law

ed
Level of corruption: financial, nepotism, intervention

ay
Local capital market: culture and capacity

m
Security: financial and personal /physical
Institutional set up to facilitate development

u
Yo
Institutional coordination/cooperation
Internal displacement due to civil war, terrorism

34
Extrinsic Factor Impact on CMDC (not DC)
Geopolitical and commercial interest that it creates
compared to other countries

e
slid
Place of a country in a historical and cultural system
“Reforms” imposed in counterpart by multilateral

us
organizations

vio
Lack of interest in and comprehension for the specific
dynamics of a nation, by multinational companies

pre
Changes in financing/funding policies of
multinational/multilateral organizations, eg. WCD

s in
Changes in policies and priorities of donor countries, and
UN System, like changes in hiring, visa policy

ga
Protectionism of other countries

din
Image of country portrayed in influential foreign media,
embassy advisory, UN reports, Global Survey reports

hea
Technological type and technology level changes
Global Climate Change

ilar
Global Pandemic, Terrorist activities, War, Trade
Embargo, Major accidents,

Sim
35
Extrinsic Factor Impact on CMDC (not DC)
Changes in Policies and Priorities of donor

e
countries, funding agencies, UN system and

lid
other supranational agencies

ss
State of conflict among neighbouring
countries

iou
Image of country: Business friendliness

ev
Safety of investment and personnel

pr
Existing infrastructure

in
Human Resources and physical resources

as
Reliable energy supply

ng
Transparency and level of corruption

di
Intellectual Property Right

a
he
Position in different index

r
Media
Embassy Advisory
ila
m
Si

You may add other factors.

36
 Impacts on CMDC
Impact Factors FDI Quality of Sustainability of
Works project outcome
High level of Bribery
Weak and uncoordinated regulatory institutional setup
Weak unregulated financial institutions

Legal structures and institutions

Politics: Political, policy and legal stability
Rule of law: uniform, fair and predictable application
of law
Level of corruption: financial, nepotism, intervention
Local capital market: culture and capacity
Security: financial and personal /physical
Institutional set up to facilitate development
Institutional coordination/cooperation

37
 1.5 Measures of Development
(Development Level Indicators/Indices)

Genuine Progress Indicator

• GPI: Among the things it considers are income
distribution for each country, along with household
and volunteer work (activities that enhance welfare
but do not involve monetary transactions), and, for
example, the cost of environmental degradation.
Ecological Economics doi: 10.1016/j.ecolecon.2013.04.019 (2013)

Don’t confuse parameters with

indices!, GPI, HDI, GNH… are
indices not parameters. 38
 Measuring development
Traditional Economic Measures
Traditional economic measure (before 1970)
– Capacity of national economy
– Per capita income or per capita GNP
– Gross Domestic Product (GDP): Simon Kuznets, 1934
– Industrialization: manufacturing & service industries
– Social indicators – literacy, health, housing etc.
Issues like poverty, discrimination, unemployment, and
income distribution were not considered

Some recent thoughts on Nepal’s development:

http://kathmandupost.ekantipur.com/news/2016-12-05/political-bickering-unsafe-for-
nepal.html
39
CM in Developing Countries/Ch 1_HKS
The economic growth rate does not necessarily match with the
development rate of a nation because the parameters of economic
growth and national development are different.
Nevertheless, here's a look at the five fastest growing
economies in 2021, based on IMF's April 2021 projections.
Libya. 2020: (59.72%) 2021: 130.98% 2022: 5.44% ...
Macao SAR. 2020: (56.31%) 2021: 61.22% 2022: 43.04% ...
Maldives. 2020: (32.24%) 2021: 18.87% ...
Guyana. 2020: 43.38% 2021: 16.39% ...
India. 2020: (7.97%) 2021: 12.55% 42
 HDI as a development indicator
The Human Development Index (HDI) is a composite statistics
used to rank countries by level of "human development" and
distinguish "very high human development", "high human
development", "medium human development", and "low human
development" countries. The Human Development Index (HDI),
developed by Dr. Mahboob ul Haq of Pakistan, is a comparative
measure of life expectancy, literacy, education and standards of
living for countries worldwide. It is a standard means of measuring
well-being, especially child welfare. It is used to distinguish
whether the country is a developed, a developing or an under-
developed country, and also to measure the impact of economic
policies on quality of life.

We aim to shift the focus of development economics from 43

national income accounting to people-centered policies. UNDP
New method to calculate HDI (2010)

44
46
Nepal HDI: 0.579, 2018 47
HDI across 15 eco-development regions, Nepal, 2011
Source: Nepal Human Development Report 2014
Link to Nepal Human Development Report 2020:
https://un.org.np/sites/default/files/doc_publication/2020-12/UNDP-NP-49
NHDR-2020.pdf
 Nepal’s Position: 157 in 2011 and 2012. Nepal’s HDI 0.458 (2011) and
0.463 (2012), South Asia HDI 0.558 (2012).
HDI Report 2013, as reported in Aarthik Abhiyan Rastriya Dainik,
March 16, 2013, page 1
Nepal’s Position: 147 in 2018 (UNDP’s HDI Report, 2019)
Life
Position HDI Expected Years of School Mean Years of School GNI PPP $
Expectancy
50
147 0.579 70.5 12.2 4.9 2,748
 2018 0.579

http://hdr.undp.org/sites/
all/themes/hdr_theme/co
untry-notes/NPL.pdf 51
 Gross National Happiness (GNH) as a
development indicator
9 Domains and 33 Indicators of GNH:
1. Psychological Well being
2. Health
3. Time use
4. Education
5. Cultural diversity and resilience
6. Good governance
7. Community vitality
8. Ecological diversity and resilience
9. Living standard
Source: www.grossnationalhappiness.com
Nepal ranked in 121st position in Happy Country in 2015.
World Happiness Report 2015; http://81c27a5d9c3263e8ebcc-
2da201d1ba4d5004cb235610c26ba057.r67.cf5.rackcdn.com/WHR15.pdf
54
Common Parameters between HDI and GNH Non-Common Parameters between HDI and
GNH

Formula to calculate HDI:

Numerical Example:

57
 Physical Quality of Life Index
Morris D. Morris developed "Physical Quality of Life Index (PQLI)". He
included three indicators like life expectancy, infant mortality rate and
literacy rate. For each indicator he devised a scale which includes the
numbers ranging from 1 to 100 where 1 represents the worst performance
by any country and 100 is the best performance. For life expectancy, the
upper limit of 100 was assigned to 77 years which was achieved, by
Sweden in 1973, and the lower limit of 1 was assigned to 28 years which
was the life expectancy of Guinea-Bissau in 1960.

Within these limits each country's life expectancy figure is ranked from 1 to
100. As the midway between the upper and lower limits of 77 and 28 years
is 52 years will be assigned a rating of 50. Similarly, for infant mortality,
the upper limit was set at 9 per thousand was achieved by Sweden in 1973
and the lower limit at 229 per thousand was achieved by Gabon in 1950.
The minimum rate regarding IMR was rated 100, while the highest IMR was
given the scale of 1. Whereas the literacy rates, measured as percentages
from 1 to 100, provide their own direct scale. Once a country's
performance in life expectancy, infant mortality and literacy has been rated
on the scale of 1 to 100, the composite index for the country is calculated
by averaging the three ratings, giving equal weight to each.
59
http://www.economicsconcepts.com/physical_quantity_of_life_index.htm
 Countries Per Capita GNP in Dollars PQLI
348 20
Gambia 790 21
Angola 380 34
Sudan 349 40
Pakistan 12720 40
Saudi Arabia 253 42
India 3020 48
Iraq 27790 56
Qatar 299 58
Tanzania 815 63
Zimbabwe 2214 72
Brazil 304 75
China 302 82
Sri Lanka 5220 86
Singapore 2503 87
Taiwan 1476 89
Cost Rica

60
 1.6 Countries are often loosely placed
into four categories of development:

Countries fall into four broad human development categories,

each of which comprises 47 countries:
• Very High Human Development,
• High Human Development,
• Medium Human Development and
• Low Human Development (46 countries in this category).
1. Developed countries (Canada, United States, European Union
members, Japan, Israel, Australia, etc.)
2. Countries with an economy consistently and fairly strongly
developing over a longer period (China, India, Brazil, South
Africa, Costa Rica, Mexico, Egypt, much of South America, etc.)

CM in Developing Countries/Ch 1_HKS 61

 3. Countries with a patchy record of development (most
countries in Africa, Central America, and the Caribbean
excepting Jamaica (category 2); much of the Arab world fall in
this category)
4. Countries with long-term civil war or large-scale breakdown of
rule of law or non-development-oriented dictatorship ("failed
states") (e.g. Somalia, Sudan, Myanmar)
Nepal to be upgraded from LDC category
With the preparatory period of five years, Nepal
will graduate to a middle-income developing
country by December 2026.
In the last two triennial reviews conducted in
2015 and 2018, Nepal had met two of the three
Nepal ? criteria related to the human asset index and
economic vulnerability index. It couldn’t,
however, meet the per capita income criterion.

https://bit.ly/3cKPtob

https://bit.ly/3cKPtob
https://kathmandupost.com/money/
2021/11/25/un-approves-proposal-to-upgrade-
62
CM in Developing Countries/Ch 1_HKS
nepal-from-ldc-category
 1.7 Common and Different
Characteristics of Developing Countries

No. of independent countries in the world: 1946: 76; 2020: 195

CM in Developing Countries/Ch 1_HKS 64

 1.7 Ten Common Features of Developing
Countries

High population Low level of living

Low level of Agro-based
growth rate & (low income, productivity economy
dependency inequality, poverty)

Unemployment & Traditional Under utilization of Foreign trade

underemployment Technology natural resources orientation

Low concern over Low moral

time orientation

CM in Developing Countries/Ch 1_HKS 65

1.7 Ten Common Features of Developing Countries

1. High population growth rate and dependency

Nepal as an example:
• Total population - 23151423 (2058 BS, 2001AD) April 27, 2021:
29,563,546
• Population growth rate - 2.25 %
• Would be double by 2095 BS (2039)
• 2010: 29959364
• 2009: 29432743
• 2008: 28905358, according to the World Bank.

The current population of Nepal in 2021

is 29,674,920, a 1.85% increase from 2020.
The population of Nepal in 2020 was 29,136,808,
a 1.85% increase from 2019.
The population of Nepal in 2019 was 28,608,710,
a 1.83% increase from 2018.
The population of Nepal in 2018 was 28,095,714,
a 1.68% increase from 2017.

What effect does high

population growth rate and
dependency has on CMDC?

http://www.google.com/publicdata/explore?
ds=d5bncppjof8f9_&met_y=sp_pop_grow&idim=country:NPL&dl=en&hl=en&q=population+
CM in Developing Countries/Ch 1_HKS 66
growth+rate+nepal
2. Low level of living (low income, inequality, poverty)
Measures  Per capita: energy use, water use, calorie intake, disposable
income, social insurance, degree of vulnerability against disasters, …

S. No. Countries GDP per capita HDI

(US $) (177)
1 China 2000 81/101
2 Bangladesh 450 140
3 Bhutan 1430 133
4 India 820 128/134
5 Maldives 3010 100
6 Nepal 320/640 (2005) 142/157
7 Pakistan 800 136
8 Sri Lanka 1310 99

GDP Growth Rate: 2008/9/10/11: 6.1/ 4.9/ 4.6/ 4.5

GDP Per Capita – PPP: 1329 International Dollars, 2005
Economic Survey July 2008/2011. HDI calculation method changed since 2010.
http://www.gfmag.com/gdp-data-country-reports/212- 67
CM in Developing Countries/Ch 1_HKS
nepal-gdp-country-report.html#axzz1l22MoAdi
• 30.85 % below poverty line (NLSS 2003/04) based on Rs. 7696 as the average national
poverty line.
• 24.1 % below poverty line as per 1 dollar per day based on purchasing power
parity (PPP).
• Minimum Wage in Nepal (2018): $1430 (nominal), $4405 (PPP)
68
CM in Developing Countries/Ch 1_HKS
2071/72: PCI increase Rs. 3800

69
 Ethnic Inequality in Nepal
Description % below
poverty line
Dalit 46
Janajati in 44
hilly areas
Muslim 41
Terai 35
Janajatis
Minority 31
castes
Newars 14
Brahmin/ 18
Chettris

Three Year Interim Plan,

Mangsir, 2064
70
 3. Low levels of productivity
Low
nutrition

Low Low
income health

Low
productivity

CM in Developing Countries/Ch 1_HKS 71

 4. Agro based economy (without
any processing or supply chain management)
Composition of GDP in percentage
S. Industries 2000/01 2004/05 2007/08
No
1 Agriculture & forestry 36.15 34.71 32.12
2 Fishing 0.43 0.47 0.48
3 Manufacturing 9.03 7.92 7.06
4 Construction 6.01 6.47 6.44
5 Real estate, renting & 8.29 8.69 9.91
business activities
(Economic Survey, July 2008)

Agriculture Industry + Manufacturing Services

Manufacturing only
34 16 7 51
CM in Developing Countries/Ch 1_HKS 72
 5. Unemployment and underemployment
S. Descriptions % age
No.
1 Population relied on agriculture as main 78
occupation
2 Employed (15 years above) 74.3
3 Unemployed (Male 3.1 % & Female 2.7) 2.9
4 Inactive 22.8
Based on NLSS 2060/61
Three Year Interim Plan, Mangsir, 2064

Unemployment Rate in Nepal increased to 3.20

percent in 2016 from 3 percent in 2015.
Unemployment Rate in Nepal averaged 2.97 percent
from 1991 until 2016, reaching an all time high of 4.50
percent in 1996 and a record low of 1.90 percent in
73
1999.
http://www.theglobaleconomy.com/
Nepal/Unemployment_rate/

75
Annapurna Post: 27 April 2019
77
Total Unemployed: 908000; 511000 male and 39700 female
Total employable: 7994000, Labor Force Survey, CBS, 2019
Unemployment: 11.4% (2019)
Unemployment: 2.8% (2008) and 1.0% in 1998 survey, due to volunteer
work counted as employed, as per DDG Nebil Lal Shrestha of CBS.
Subsistence agriculture activities: not counted as employed in 2019 survey
Population above 15: 207044000; 4300000 in foreign employment
Employment in informal sector: 62.2%, formal sector 37.8%

यसपटक विभागले वस्तु तथा सेवा उत्पादन र त्यसको उपभोग तथा नाफा आर्जन गर्ने क्रियाकलापलाई मात्र रोजगार मानेको छ।
अघिल्लो सर्वेक्षणमा आफ्नै उपभोगका लागि खेतीपाती, पशुपालन तथा पारिवारिक उपयोगका लागि वस्तु उत्पादन कार्यमा संलग्न व्यक्तिलाई रोजगारमा
गणना गरिएको थियो।
श्रमशक्तिभन्दा बाहिरको संख्या एक करोड २७ लाख ५० हजार छ। त्यसमध्ये ८५ लाख महिला र ४२ लाख ५० हजार पुरुष छन्। ७० लाख ८६
हजार रोजगारीमध्ये २५ लाख ४० हजार महिला र ४४ लाख ४६ हजार पुरुष छन्।
Monthly Salary: 17800; Male 19400, female: 13630

रोजगारमध्ये सहरी क्षेत्रका ४९ लाख ग्रामीण क्षेत्रका २१ लाख ८५ हजार रोजगारीमा छन्।
कृ षि, वन र माछापालनमा २१.५ प्रतिशतले काम गर्छन्। त्यस्तै थोक तथा खुद्रा बिक्रीमा १७.५ प्रतिशत र मोटरगाडी तथा मोटरसाइकल
मर्मतसम्भारमा १५.१ प्रतिशतले काम गर्छन्। उद्योगमा १३.८ र निर्माण क्षेत्रमा ७.९ प्रतिशतले काम गर्ने गरेको सर्वेक्षणले देखाएको छ।
आईएलओ को सहयोगमा सन् २०१७ जुलाईदेखि २०१८ जुलाईसम्म १८ हजार घरपरिवारमा अध्ययन गरेको थियो।

78
6. Traditional
Technology

79
 7. Underutilized natural resources
• Natural resources either underutilized or exploited by foreign companies at the
expense of local environment: gold in Africa, riches in USA/Europe
• For Singapore, population is a resources. For many developing countries, it is a
problem.
• For many European countries, snow capped mountains are resources (winter
sports, tourism, fresh water), for Nepal it is one of the reasons for
underdevelopment
• Export of unprocessed natural resources at low price
• Abundant SGS materials in the mountain, exported at rock bottom price; human
resources exported as laborers/technicians
• Though Nepal is rich in natural and human resources, the resources have not
been optimally utilized, thereby, Nepalese people are sometimes referred to as
“poor in a rich country”.
• Inability to make optimum use of available natural resources due to various
technical, management and political reasons.
Botswana, Angola, DR Congo, South Africa and Namibia: rich in diamond yet
Economic Survey
controlled byJuly 2008 companies
foreign
“Whenever a substance of value is found in Africa, people die”. Blood
Diamond
Nepal is assumed to have uranium deposit in Mustang. Who do you think will
80
benefit if the uranium deposit is assessed to be techno-financially feasible?
 8. Foreign trade
orientation
• Export of unprocessed goods and
raw materials, import of processed
materials at higher price.
• Trade deficit increased by 37.7 %
to 102.85 billion in the first eight
months of FY 2007/08
• Share of trade deficit with India
was 62.1 % and with other
countries by 37.9 % in the review
period.
• Dependence and vulnerability in
international relations
• Trade deficit 82
Impact of
Covid-19? 83
विगत एक वर्षमा २ करोड ५४ लाख ४० हजार मूल्य बराबरको १ सय
२७ मेट्रिक टन चिराइतो, १ करोड १३ लाख २३ हजार २ सय मूल्य
बराबरको ६७ मेट्रिक टन मजिठो र १३ लाख ६५ हजार ३ सय मूल्य
बराबरको १२ मेट्रिक टन पदमचाल भारत निर्यात भएको छ ।

१३ श्रावण २०८०, 29 July 2023

85
Nepal’s trade (im)balance; % of annual national budget

86
 9. Low concern over time
• Time is not considered as important/valuable.
• People enjoy plenty of free/leisure time
• “Will do tomorrow” attitude
• “Personal problem” considered for missing deadline
• Strikes, Chakkajam (transportation/vehicle strike)
• long list of holidays
– democracy, loktantra, republic
– Death of people, student, teacher, official …
• Road/drain maintenance at office time …
• Project delay considered normal
• (2-years MSc. CM in 5 years, normal?)
• Covid-19: Lock down without an exit plan (2nd wave)?
CM in Developing Countries/Ch 1_HKS 87
 10 Low moral orientation
• Power revered over morality
• Survival mode mentality: “Professionals” easily succumb to “pressure”
• High level of bribery: property earned from illegal sources honored, socially
accepted
• Law breakers as “daring” and law abiders are “un-daring”
• Acceptance of low quality works and materials
• Personal integrity “for sale” at negotiable price
• Low level of
– (a) Work ethics
– (b) Professionalism and
– (c) Integrity

Global Corruption Barometer

Asia 2020
GCB_Asia_2020_Report_Web_f
inal.pdf 88
 11. More focus on technical solution to
societal problems
Ignore or less focus on:
• GESI/GEDSI
• EIA/ESIA/CIA
• Sustainable/Balanced Developments
• Interdisciplinarity
• Rights/informed consent of indigenous people
• Environmental Justice/ Social Justice

Survival mode mentality devalues GESI/EIA/sustainability,

89
fairness, justice, human rights, …
 12 Too many organizations (?)

90
Organization of “Abused Husbands”
91
 Developing countries are not homogeneous but are
enormously diverse in their structure. In particular it is stressed
that the developing world differs in:
• Population & geographic size (India v. Bhutan)
• Language and religion (India v. Maldives)
• Colonial era experience (India v. Nepal/Ethiopia)
• Levels of education (Sri Lanka v. Nepal)
• Natural resource endowments (Nepal v. Maldives)
• Types of industry (Nepal vs. India)
• Role of government and degree of democracy
(North Korea v. India)
• Degree of dependency in international
economic and political affairs (Bangladesh v. India)

A country is not measured by the size of its area on the map. A country is truly
measured by its heritage and culture. Sheikh Zayed bin Sultan Al Nahyan, former ruler
of UAE
92
Do these parameters have impact on CMDC?
Common Impact on CMDC Different Impact on CMDC
Characteristics Characteristics

End of Chapter 1
Final exam question collection in the following slides.

94
 Test yourself. Answer them using different resources.
Chapter 1: Concept of Development, Characteristics of developing & developed countries
• Select the most critical intrinsic (only one) and extrinsic (only one) cause of underdevelopment of a country.
Defend your selection (i.e., explain why that particular cause is most critical in comparison to other causes.
• Nepal is aspiring to be promoted to “developing country” from its current status of “least developed
country”. To achieve this goal, which national development parameters (select only two) should be
improved, and why?
• What should be the proper development model for a developing country: (a) state led, (b) Market led and
(c) Society led? Explain with reasons and examples.
• Nepal has practiced planned development since the last half century, yet Nepal is still one of the least
developed countries. List top three reasons for this state of Nepal (reasons for failure of planned
development), and propose practical solutions to overcome each of them.
• Despite abundant natural resources (like fresh water, forest, herbs, natural beauty, bio-diversity) many
developing countries, including Nepal, are reeling under extreme pressures of underdeveloped
infrastructure. Analyze the intrinsic and extrinsic factors of underdeveloped state of Nepal.
• Defining development of a country is a complex issue. Discuss the economic, social, cultural, and
environmental factors that may be used to define development.
• The traditional economic indicators of development of a country have been challenged by recent scholars
of development. Can a country be economically developing and still be underdeveloped?
• The basic economic indicators of development of a country may be increasing positively, but the
country may still be underdeveloped for many years. Agree or disagree? Give reasons.
• Discuss the basic similarities (common features) and differences among different developing
countries?
• What are the basic similarities and differences among different developing countries?
• Explain the three broad objectives of national development in the context of Nepal. 95
 Test yourself. Answer them using different resources.
Chapter 1: Concept of Development, Characteristics of developing & developed countries
• Is there any relationship between the Human Development Index and Gross National Happiness? Explain.
• Which one should be the ultimate measure of development: Human Development Index or Gross National
Happiness? Explain with appropriate reasons.
• Discuss the intrinsic and extrinsic factors of underdevelopment of a country. Explain these factors in the
context of Nepal.
• Discuss the major factors of underdevelopment of a country. Explain these factors in the context of Nepal.
• Some of the factors of under development are (a) rule of law, (b) financial and physical security and (c)
degree of transparency in institutional working mechanism. Explain how these factors affect (i) private
investment (ii) work culture and (iii) quality of works related to CMDC.
• The development of science and technology change in the global environment, population and others
because the whole people of different countries are linked with one another or earth is linked with one
another. Would you justify the role of following linkage factors are (i) Global Village (ii) Environment (iii)
Population (iv) Debt (v) Jobs (vi) Migration or Immigration (vii) Trade (viii) Politics and Peace (ix) Value of
Life, how would you conceptualized about the development?
• What are the characteristics of developing and developed countries?
• The factors of underdevelopment are (a) rule of law, (b) financial and physical security, and (c) degree of
transparency in institutional working mechanisms. Explain how these factors affect (i) investment, (ii)
work culture and (iii) quality of works related to construction projects in the developing countries.
• Explain the relationship between population growth rate and level of development of a country since
some developed countries are trying to increasing population growth rate while some developing
countries are doing just the opposite.
• Is there any relationship between the level of development of a country and the construction
management methods used in the country? Discuss.
96
Extra Slides:

97
साइकलमा कार्यालय
एउटा डरलाग्दो रोग नेपाली समाजमा विस्तार हुँदै गरेकोमा मलाई चिन्ता लाग्छ। समाजका विद्धत् वर्ग पनि सञ्चारमाध्यममा आएका समाचारका भरमा विचार बनाउँछन्।
संचारमाध्यमहरू आग्रहराखेर समाचारका शीर्षक बनाउछन्। महिलाहिंसामा सरकारले चालेका कदमबारे प्रेसिवज्ञप्ती
प्रकासित गर्यौं तर कु नैपनि पत्रिकाले छापेन। गेरखापत्रले समेत छापेन तर गरेको कामको पनि गरेन भनेर
गाली र सरकारको अलोचना भने सबैले छापे। जनतालार्इ सुसूचित गर्न त गरेकाकाम छापेर कमजोरी
देखार्इदिनु पर्ने थियो तर हाम्रो दुर्भाग्य। मान्छे हरू दल/अनुहार, भूगोल वा आफ्नो इच्छा स्वार्थसँग जोडेर
कसैका कामको प्रशंसा वा आलोचना गर्छन्। विषयवस्तुको गहिराइमा पुगेर साङ्गोपाङ्गो विश्लेषण गरेर
आग्रहरहित वस्तुपरक विचारको सट्टा सतही टिकाटिप्पणी र कहिलेकाहीं तुरुन्तै निष्कर्ष मा पुग्छन्। कतिपयले
समस्याको जड एउटा नेतामा वा समस्या समाधानको छडी अर्को नेतामा देख्छन्। मान्छे लाई देवत्व वा
दानवत्वकरण गर्ने, जटील सामाजिक आर्थिक समस्याको एउटा सपाट उत्तर खोज्ने, फलानो ठीक भएपछि सबै
ठीक हुन्छ भन्ने मान्यता राख्ने बौद्धिक जमात बढीरहेको छ। आफ्नो खास काम बाहेक सबै काम जान्ने
हुनखोज्ने, अर्काको आलोचनामा रमाउने, आफ्नो कर्तव्य होइन, अधिकारका मात्रै कु रा गर्ने, सजिलै र तुरुन्तै
उत्तर खोज्ने, अधैर्य, उत्तजेक र हिंसक बन्दै छ युवा पुस्ता। अर्काको दुःखमा रमाउने, अह्राएको काम मात्र गर्ने,
जोखिम नउठाउने, अन्य मुलुकलाई राम्रो र आफ्नालाई नराम्रो देख्ने, व्यक्ति, परिवार आफन्त, इष्टमित्र र दलगत
नाफाघाटामा रमाउने, पढ्ने पढाउने एउटा तर व्यवहार अर्कै गर्ने, आत्मविश्वास नभएको, अरुले सहयोगको
अपेक्षामा दिनरात दौड्ने तार त्यही समय सृजनाशीलता र मिहिनतमा नखर्चने, भनसुन, दवाव वा पैसामा
सबैकाम हुन्छ भन्ने धारणा राख्ने, आफ्नो सन्तान विदेशीको गुलाम बनेकोमा गर्व गर्ने, आफ्नै माटोमा गरिने
शारीरिक कामलाई हेय ठान्ने, पढेको तर के ही पनि सीप नभएको, कसैलाई लगाएको गुणको प्रतिफल खोज्ने,
पैसालाई सबैथोक ठान्ने, आफ्ना बाबुआमा र बालबच्चाको स्याहार नगर्ने तर युरोप-अमेरिका वा इजरायलमा
बृद्ध र बच्चाको सार्है राम्रो स्याहार गर्ने, दयामाया, ममता, सदाचार, सँस्कृ ति, इतिहास, भूगोल बारे बेखवर
जमात पनि देखिदैछ। उपर्युक्त चरित्रले समाजलाई पतनोन्मुख बनाउँ छ। अहिले हामीलाई मिहिनती, दुरदृष्टीयुक्त,
दृढ, सक्षम, स्वच्छ, मुलुकप्रति माया भएको (राष्ट्रप्रेमी), आत्मविश्वास भएको, पौरखमा विश्वास गर्ने, सिक्ने
तत्परता र इच्छाशक्ति भएको, सामाजिक प्राणीको खाँचो छ।
लीलामणि पौड्याल, १ जनवरि २०१३

98
 Dualism
Dualism holds the belief that there are two elements of existence:
Mind-Body Dualism; Physical-Spiritual Dualism

99