Browsing by Subject "Foreign Aid"
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Item Assessing Foreign Aid from The Perspective of Nepal’s Economic Diplomacy(Department of International Relations and Diplomacy, 2020) Karn, Navin ShekharThe present study has attempted to analyze the effectiveness of economic diplomacy to attract more and more foreign aid for development in hydropower and tourism sectors, from the two fast growing neighboring countries India and China. This research acknowledges that the foreign aid means the transfer of financial, social, cultural and technical assistance from the developed countries to the underdeveloped or developing countries, and it can be more effective and fruitful to Nepal by exercising economic diplomacy with India and China. This study argues that though Nepalese economy is passing through a critical phase of low level of equilibrium trap circumscribed by poverty, and stagnation over long periods along with slow economic growth rate, traditional way of diplomatic practices and internal conflicts, no commitment and implementation of settled program thus foreign aid has very high possibility to mobilize the resources. Due to lack of economic diplomacy, there is a poor utilization of resources, even though foreign aid was introduced since Rana regime. Present study discusses that Nepal is getting large amount of foreign aid from India and China, but it is not mobilizing towards top priorities sectors like hydropower and tourism, which can lead the country to the path of high growth rate and rapid reduction of poverty and unemployment. The reason behind this is nothing rather than lack of the effective and contextual economic diplomacy. This study uses qualitative as well as descriptive research methodology in which various empirical results are drawn using secondary data from various sources like Ministry of Finance, Embassy of India and China etc. This study concludes with a note that economic diplomacy can work as a tool to attract foreign aid from Indian and China towards top priority sectors that have huge potentialities. If Nepal is able to change its traditional way of economic diplomacy then the days of prosperity are not far off. Similarly, increasing trends of foreign aid from India and China to Nepal because of their competition or by their foreign policy instrument, in both ways Nepal can be benefited if Nepal government focuses on economic diplomacy through both government and nongovernment agencies.Item Contribution of Foreign Aid in Agricultural Development of Nepal(Department of Economics, 2012) Aryal, KapilNot AvailableItem Economic Diplomacy and Inflow of Foreign Aid (With Special Reference to India and China(Central Department of Economics TribhuvanUniversiy Kirtipur, Kathmandu, Nepal, 2015-12) Gupta, Jeet BahadurNot availableItem Foreign Aid in Nepal with Special Reference to Japanese Aid(Department of Economics, 2008) Bhattarai, Ram PrasadNot AvailableItem Impact of Foreign Aid in Economic Development of Nepal(Faculty of Economics, 2014) Baral, Krishna PrasadNepal is one of the least developed countries of the world with very poor economic and social infrastructure for development. It suffers from a serious resource gap with low saving and low investment. In this situation, foreign aid is only way to fulfill this types of gap and to boost up the economy or to accelerate the development. The short answer of foreign aid is that it consists of explicit transfer of real resources to less developed countries on concessional terms. Underdeveloped infrastructures, lack of good governance, adverse geographical structure, political instability, lack of proper education, and traditional farming low saving etc. are the major hurdles in the economic development of Nepal. The most serious of the seconstraints is the political constraint, i.e. lack of grassroots level of political institutions, lack of responsible government, and over-centralization of political and economic powers, heavy bureaucratization and lack of political priority to development works. This country is receiving foreign aid especially for the development of agriculture, industry, education,infrastructure etc. But the problem is that the foreign aid has not been fully and optimally utilized in these sectors which may be due to the inefficiency of administration, nonavailability of suitable contractors, resulting delays in the implementation of projects etc.Hence the major issues can be shown as; what is the role of foreign aid in Nepalese economy? Has the foreign aid been used in the desired sectors? What is the trend and pattern of foreign aid to Nepal? What is the impact of foreign aid on GDP, PCI, HDI and agricultural and non-agricultural sector? Descriptive, analytical and explanatory research design is used to gain insight about the foreign aid situation in Nepal. It is based on facts and interpretations of formation gathered in relation to the problems under consideration. Secondly data are handled to reach on the conclusions. Time-series data are taken to analyze the trends of assistance as well as to compare some important statistical indicators. Data are taken from officially published materials like books, journals, reports, papers etc. Such materials include the publications of Ministry of finance, Central Bureau of Statistics, World Bank, Nepal Rastra Bank, Nepal Planning Commissions and different websites….etc. To meet the objectives of effectiveness of foreign aid Nepal, the study covers thirty five years time span from FY 1975/76 to FY 2009/2010.During the analysis of foreign aid and its contribution on Nepalese economy is shown through regression analysis has been used. The study also focuses on foreign aid and its impact on GDP. Charts, diagrams and tables are drawn as per the requirements of the study. Data are presented in percentage when required. For Regression analysis, SPSS computer software program and MS Excel are used. The programs are also used for the calculation of different statistical tests as well. In the beginning transportation, power and communication sector has the biggest recipient of foreign aid. This sector has received greater amount of loans than grants. Share of aid to agriculture, irrigation and forestry sector was quite high until 1980s after which it began to fall. Social service sector has also remained an important sector from the perspective of aid receipt. The increasing trend of aid into this sector is a reflection of donor priority. This sector is provided with the grant assistance only. IN FY 2009/2010, out of the total disbursed aid of Rs.49769. 4 million, 6.2 % was distributed to agriculture, irrigation and forestry, 23.7 % to transport communication and power, 0.77 percent to industry and commerce, 66.35 % to social services and 3 % to others. The empirical analysis shows that, the coefficient of foreign aid is positive (I.e.12.626), which means, there is a positive relationship between GDP and foreign aid inflows.The model predicts that with 1 percent increment in foreign aid, GDP is increased by 12.626 percent. This indicates the important contribution of foreign aid in the Nepalese economy.The value of R 2 (adjusted coefficient) is 0.683, which implies that about 68.3 percent of variation in dependent variable (i.e. GDP)is explained by the independent variable(i.e.foreign aid). The value of R 2 ranges from 0 to 1. As the value of R 2 is 0.683 or 68.3%approaches to 1, the regression line thus estimated is good fit. Similarly, the coefficient of foreign aid is positive to PCI, HDI and others dependent variables. The coefficient of foreign aid to PCI is very less (i.e. 0.006). This result shows that only increment on GDP doesn’t increase the PCI significantly. To accelerate the PCI, foreign aid should be utilized very properly and effectively. In this study PCI is taken from World Bank reports which are less than our government data, this results the less coefficient of foreign aid. But the impact of foreign aid on HDI is accountable. The coefficient of foreign aid is positive (I.e. 4.16), which means, there is positive relationship between HDI and foreign aid inflow. The model predicts that one percent increment in foreign aid, HDI is increased by 4.16 percent. This indicates the important contribution of foreign aid in the Nepalese economy. The value of adjusted R 2 is 0.743, which implies that about 74.3 percent of variation in dependent variable (i.e. HDI) is explained by the independent variable (i.e.foreign aid).as the value of R 2 is 0.743 or 74.3 percent approaches to 1, the regression line thus estimated is good fit.Item Role of Foreign Aidin Economicdevelopment of Nepal(Department of Economics, 2008) Saud, Ramesh Kumarnot availableItem A Study on Foreign Aid to Nepal With Reference to Danish AID(Faculty of Economics, 2014) Shrestha, Indra KumarThis Study entitled “ A Study on Foreign Aid to Nepal :With reference to Danish Aid (1992/93–2011/12)” has been carried out in partial fulfillment for the degree of Master in Arts in Economics. The study analyzes the trend of foreign Aid and Danish Aid in Nepal ,areas of Danish assistance to Nepal,policies and commitment made by Denmark to Nepal and the overall impact of Danish aid in Nepalese economy. Secondary data have been used for the analysis. The data have been collected through annual reports, economical surveys and related publications. The data are presented in figures, tables,percentage, ratio and correlation analysis have been used to calculate facts under study. Trend lines and diagrams are also used to present the situation. During the period of 1992/93-2011/12, the amount of total foreign aid received by Nepal is Rs.4763369.9 million, out of which Rs. 287932.5 million (60.4%) is of grant and Rs.18446.4 million (39.55%) is of Loan. In the initial period, most of the aid was in the form of loan but later on the share of grant has been increasing. Similarly, the trend of bilateral and multilateral aid seems to be fluctuated in the beginning of the study period. But in total, bilateral and multilateral aid amount to Rs. 195374.8 million and Rs.281004.9 million which comprises 40.1% and 58.98% respectively. In the beginning period, sector like transportation, power, and communication had the biggest share of aid and the industry and commerce had the lowest share of the aid but later on the amount of aid to social service increased and became the most recipient sector. During the review period, social service received Rs. 233722.01 million (50.6%), transportation, power and transportation received Rs. 160378.4 million (34.77%), agriculture and irrigation received Rs.62681.9 million (13.5%) and industry and commerce received Rs.7992.8 million (1.9%) of total aid to Nepal. Foreign aid disbursement is less than that of aid commitment by more than half in which aid disbursement is Rs.476379.5 million and aid commitment is Rs. 799183.2 million. During the review period Denmark has provided Rs. 54349.18 million as aid which covers 27.81% as share of Danish aid to bilateral aid and 18.87% as share of Danish aid to foreign grant. The percentage of Danish aid to foreign aid is 11.40% which is about one eight of total foreign aid. Danish aid has highly concentrated in Education, Local Development,Road/Transportation, Agriculture, Forestry and Irrigation, Health, Economic and Financial reform which is 20.14%, 14.70%, 10.91%, 9.79 7.87%, and 7.56% respectively. The analysis shows that the correlation coefficient is o.45, which means there is positive relationship between GDP and Danish aid inflow. The variation in Danish aid has significant influence on GDP variable in the Nepalese Economy.Item Trend and Patterns of US AID in Nepal (FY1990/91-FY2017/18)(Faculty of Economics, 2020) Khanal, NawarajForeign aid can be defined as economic aid from one country to another, the beneficiary typically being a less developed country (LDC). Foreign aid is required for the economic development and growth of the country. Lack of enough capital formation in the country is the main problem for economic development of the underdeveloped country. The developed countries have been providing assistance to the less development countries by providing aid through various medium and agencies. The study is concerned with the trend and patterns of US aid to Nepal. The study aimed at examining the effect of US aid on GDP in Nepal. The study is descriptive aswell as analytical type and focuses on trend, magnitude, composition and concentration of US aid. The regression, correlation, hypothesis testing are done according to the given sets of data using SPSS software. The study is related to the analysis of Trend and Pattern of US Aid in Nepal(FY1990/91-2017/18). The study shows that USA aid to Nepal duringFY1990/91-2017/18). is Rs.1084864 millions.The US aid occupied 7.1% of the total aid in Nepal. Likewise,US aid has covered an average of 0.35% in the total GDP of Nepal.The total USA grants reached cumulative Rs.438785.4millions and the total USA aid loan reached cumulative Rs.346804.6 millions in the 16 years period from 2003-2017.The volume of USaid to Nepal is rising taking a pattern of decreasing and increasingthrough out the study period. The study tries to explain the USaid commitment anddisbursement situation in Nepal. TheUSaid commitment reached Rs.785590millionsand theUS aid disbursement reached Rs. 399108.4millions. The disbursedUSAamount is only49.70% of the total aid commitment. US is providing aid in almost every sector in Nepal. Theareasof US aid assistanceincludes food security, natural resource management, health and education,democracy and governance, disaster risk reduction , resilience and reconstruction.From this, we can see that the contribution of theUSaid to Nepal is vital for theeconomic development of the country. v The study tries to see the impact ofUSaid on the GDP of Nepal.The impact of USaid on GDP is found to be positive and significant. Using regression analysis,Ifoundthat there is positive correlation between US aid and GDP. The Pearson’s coefficientis 0.944 which implies that there is positive relation between the independent anddependent variables. The value of R 2 is 0.891 implying that predictor US aid accounts89.1% variation in the total GDP. The value of F-statistic is 180.594, which thecritical value of F is 4.30 at 5% level of significance which indicates that R is statistically significant. That is the estimated equation is significant. Likewise, the slope of US aid inflow is 48.206 which indicate that there is positive relation between GDP and US aid. This implies that when total US aid inflow increases by 1 million GDP increases by 48.206 millions. The history of foreign aid to Nepal shows that the donors of Nepal have been implicitly expressing and lobbying their political and economic motives to the GoN.The GoN should be careful while accepting foreign aid. The GoN should always accept foreign aid as per the needs and national priorities. There should be better utilization of foreign aid because aid today adds liability to the future generation.Item Trend and Structure of Nepalese Foreign Trade with India(Central Department of Economics Tribhuvan University Kirtipur, Kathmandu, 2017) Acharya, AshmitaNot Available