Attachments
OVERALL PROGRESS
Context
With a population of approx. 29.1 million which is very diverse in terms of ethnicity, cultures, languages and beliefs, Nepal is experiencing one of the fastest rates of urban growth of any South Asian country. The governments vision is to move towards becoming a middle-income country by 2030. More than 2.1 million Nepalis are living and working abroad, which is increasing every year, and also leading to the decline of the rural population in the country.
As per Human Development Index (HDI) report (2020), Nepal is placed at 142 out of 189 countries, with great disparities in human development. The caste system, which was officially abolished in 1962, remains one of the most influential factors in relationships, politics, economics and power, and continues to underpin inequality. Despite the provision of constitutional and legal rights, factors such as power relations, ethnicity, physical access, and the digital divide are still a barrier to equitable economic development, for women, in particular.
Nepal’s economy is gradually recovering from the COVID crisis, with an anticipated growth by 3.9% (at market prices) in fiscal year (FY) 2022 from an estimated 2.3% growth in FY2021, thanks to a wide access to vaccines as well as a normalization in economic activities, especially in the critical areas of tourism, agriculture and remittances, which are drivers of the economy.
Over the last few years, Nepal has been under dynamic and unprecedented political and economic transition since the promulgation of the Constitution in 2015. The country now has a new federal structure in place with a decentralized multi-level political system at central, provincial and local levels. In line with the new constitution, after the elections, the new government structure is now operational since early 2018 with 77 districts, 7 provinces and 753 rural/ municipalities. With the Government’s commitment and plan on sustainable development goals (SDG), localization and ‘leave no-one behind’ ethos, federalism has created both opportunities and challenges for community resilience.
However, there are still uncertainties about respective roles and responsibilities as the legal and administrative system is being gradually defined and rolled out, which can create delays and challenges in coordinating humanitarian or development actions.