Development Planning in Nepal - Economics Notes Grade XI

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Development Planning in Nepal - Economics Notes Grade XI

Development Planning in Nepal

Development Planning:
A plan is a set of thing or activities to operate in a systematic order to achieve definite target or objectives. In other words, the process of making plans, to meet definite goods is planning. Individuals, groups, firms or government can do planning but planning done by the government is development planning. Development planning is closely related to the economic activities of a nation. Therefore, it is also known as economic planning. The concept of development planning was first introduced in 1917 A.D. in the former Soviet Union. It became very popular after the end of 1930’s great economic depression and the Second World War. The systematic development planning in Nepal was started in 2013 B.S. which was for 5 years (2013 B.S. to 2018 B.S.). After the introduction of development planning in Nepal, 11th development plans were experiencing and one is running. In short, economic planning may be defined as the deliberate control and direction of the economy by the state for achieving certain targets and objectives within the schedule time. The basic objective of development planning is to achieve sustainable economic development in primary secondary and tertiary sectors of the economy.

Plan Formulation in Nepal
Plan formulation is definitely a challenging issue because it’s a success, usually depends on it rationality and appropriateness. The plan should be formulated according to the economic condition of a nation. The success of any plan depends on the firm and the process of plan formulation. In Nepal Development Council (NDC) gives direction to NPC (National Planning Commission) in plan formulation the process of plan formulation in Nepal consists of the following activities:

  1. Past plan and estimation of new plans: At the time of making new plans, NPC evaluates past and current plans; it gives clear ideas and projections for making new plans. On the process of evaluation, drawbacks should be changed with improvement and should be included unsuccessful plans and policies in new plans.
  2. Collection and proposal of a new project proposal: NPC collects project proposal from each District Development Committee. District level government organization also sent proposals through their respective ministers. Then, NPC presents all proposals including some proposals propose by himself to NDC.
  3. Discussion: Discussion is one of the most important steps in plan formulation. NDC, NPC, Ministries, secretaries, Experts of concern field, NGOs, INGOs, representatives of donor agencies, etc. take part in the discussion. Then, NPC prepares plan document according to the conclusion derived from the discussion.
  4. Determination of objectives, targets, and priorities: Objectives should be determined in a complete plan document to meet the desired goal according to the economic condition. For a good development plan, target and priorities should be determined which guide the overall activities and programmes during the purposed plan period.
  5. Authorization & implementation of Plan: The final plan document prepared to NPC for Authorization. After the authorization, it is presented to the cabinet for its approval. Finally, the plan is executed after the cabinet approval. Then, the plan is implemented in association with the government, private sectors, NGOs, INGOs, and general people.
  6. Monitoring & evaluation: Monitoring and evaluation are necessary for the process of plan formulation. It helps to determine the success by evaluating the implemented plan whether it is according to objectives, strategies of plan or not. It also keeps feedback while making a future plan.

Current Interim Plan:
[Draft Paper of Interim Plan/12th]

Long Term Vision:
The long term vision of this plan is to transform the Nepalese economic status from least developed countries into developing country at the end of this plan, Nepal would be prosperous, justice and peaceful country. All forms of discriminations and inequalities would be ended from society.

The goal of this plan is to improve the living standard of the general public and reduce poverty to 21% and achieve millennium development goals. By 2015 through sustainable economic growth by attending the following other goals:

a) Generating employment opportunities.
b) Reducing economic inequalities.
c) Achieving regional balances.
d) Eliminating social exclusions.

The main objective of this plan is to enable people to feel a change in their livelihood and quality of lives by the establishment of the sustainable peaceful situation and poverty alleviation through employment oriented, inclusive and equijustive economic growth.

This plan has set up the following strategies:

  • To achieve employment and poverty alleviation, oriented, sustainable and broad-based economic growth.
  • To develop the physical infrastructures for support on federal structures and regional economic growth
  • To emphasize on inclusive and equijustice development to achieve sustainable peace.
  • To help in the socio-economic transformation of the country by improving the socio-economic services.
  • To make result-oriented development by good governance and effective service delivery.
  • To attain economic growth and stability by developing private and community, cooperative sectors through industrialization, trade, and services.

This plan has set up inter-related sector policies which are as follows:

  1. Poverty alleviation and employment:
    Poverty alleviation is achieved through expansion or socio-economic development programmes and creating more employment opportunities.
  2. To make a Federal Nepal:
    To make federal Nepal, by preparing the structural and illegal basis in a new form is one of the policies.
  3. Adopting the system of a market economy:
    There will be adopted as the market economic system of public welfare and economic development.
  4. To identify the people with poverty line:
    There will be starting the process of identifying the people living under the poverty line by focusing development efforts on poverty alleviation.
  5. Adopting the agriculture perspective:
    Using appropriate technologies to make modernization will help the development of agriculture, production, and productivity.
  6. Programmes in modern sectors of the economy:
    The priority of programmes on foreign trade, development of cooperative labour management and tourism promotion is necessary.
  7. Opportunities of the self-employment:
    The employment opportunities will be provided for youth especially those who are affected by the conflict and improvement of productive sectors for self-employment.
  8. Especially targeted policies:
    Preparing the estimates for food scarcity and socio-economic empowerment of the deprived people, Dalits, Adivasi, Janjatis, Madhesis, backward classes, people with disabilities, etc.

Priority Sectors:
The following priority sectors have been identified by this plan:

  • To make economic development sustainable and alleviate poverty by attending balanced development.
  • To develop agriculture including tourism industries and export trade for attending economic growth and employment opportunities.
  • To assist in development by increasing the investment for the marginalized group in all the process of state restructures.
  • To give emphasis on the quality of public services and make available in the reasonable price by implementing good governance
  • The investment will be an increase in education, health, water supply, sanitation sectors for the development of the human resource.
  • To set the programmes and projects to assist directly relief to the general people.

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