TyroCity: Economics 11 Notes

Features of agriculture

Economics 11 Notes — Sun, 08 Apr 2012 05:41:42 +0000

1. Sustenance farming

Nepal carries out sustenance farming rather than commercial. In the Nepali Market, demand of food is equal to its supply. In last 3-4 decades Nepal use to export wheat to Bangladesh but now its vice versa. The production of agro-products makes just equal to its demand.

2. Monsoon based agriculture

Due to lack of irrigation facilities, almost all the farmers depend upon monsoon rain. Nepal’s government has not made any irrigation plant till today. Only few places are reaching to irrigation facilities. Only 69.48% of land has irrigation facilities where only 50% of land or cultivable lands have year round facilities.

3. Predominance of food crops

Food crops are the type of crops that are basically used as primary source of food. Such as paddy, maize, etc. From centuries back in Nepal has been continuously growing more amounts of food crops and today also it shares around 48.9% of total food which is nearly half.

4. Traditional technology
Nepal is practicing traditional method of farming since past. To plough the field, we never use improved seed and pesticides. GON also does not have any attention towards it.

5. Low productivity

It’s obvious to have low productivity because farmers entirely depend upon monsoon rain which is uncertain. No proper irrigation facilities and traditional method of farming causes low production.

Characteristics of Poor

Economics 11 Notes — Sun, 08 Apr 2012 05:41:42 +0000

1. Low income
Nepal is poor country and is enlisted in under developed country. In Nepal, more than 60% are illiterate among poor. Adult illiteracy rate is 57.2%, according to human development report 2010.

2. Education

Education is the process of getting knowledge poor people are not aware about education knowledge. So, they think providing education facilities to daughter is useless and son and does not send their daughter to educational institute which causes high illiteracy rate.

3. Housing condition

Housing condition of poor is extremely poor. Moreover, the condition of urban poor is worse than rural poor. Urban poor do not have their own house. They sustain their life on the basis of daily wage. Similarly, the life of rural poor is difficult. They live on small house.

4. Expenditure

The less income, the more expenditure. The expenditure exceeds income in poor. They spend more than 70% income merely in food and rest in other sector.

5. Large family size

Due to lack of education, poor people are not aware of family planning measures (birth control measures). So, they think begetting children is boon of god.

6. Property

The word poor automatically refer to those who do not have property or who have less property. They do not have sufficient land to earn their livelihood. So, they work on other’s land and earn their livelihood.

Types of Poverty

Economics 11 Notes — Sun, 08 Apr 2012 05:41:42 +0000

Poverty is a situation in which people cannot fulfill their basic needs.

Types of poverty

Absolute Poverty
Relative Poverty

1. Absolute Poverty:
Absolute poverty refers to a situation which individuals are unable to attendant necessities of life such as food, cloth, shelter, safe drinking water, health facilities, primary education etc.

In other word, it is a situation in which the level of income of the people is so low that they cannot afford must of their basic needs.

2. Relative poverty:
Relative poverty is the situation in which a person has enough income to sustain the life but the income and living standard is lower compared to rest of the community. It is also the condition of less income in a country compare to the worldwide income average income.

Importance of Tourism Industry

Economics 11 Notes — Sun, 08 Apr 2012 05:41:42 +0000

1. Sources of foreign exchange earnings

Tourism industry is the main influential type of industry in the world. Nepal has also taken tourism industry as its major sector of income in the fiscal year 2009/11.

2. Employment Opportunities

Tourism industry is also one of the influential sectors. It generates employment opportunities. It provides employment to unskilled, semi-skilled and skilled manpower. Guide, load man etc are the personal or labour required in Tourism industry.

3. Sources of public as well as private income

Tourism industry is the source of income for both public also well as private sector government charges tax, sales tax, service tax etc. which is known as government revenue is the income of public. And handicraft, arts etc are the things that attract tourist and most of them buy them and the seller makers some profit which is called private income.

4. Cultural Exchange

Tourism industry facilities cultural exchange tourist carry over various cultural concepts of other countries where they visit. Local people can learn their language, art, skill, culture etc and vice versa.

5. Publicity of nation

Nepal is a small country, difficult to be located in the world map. Tourism helps to publicize the country in different parts in the world. It helps to publicize. Nepalese art, skills tradition, cultural beauty and hospitality to the world.

Causes of Poverty

Economics 11 Notes — Sun, 08 Apr 2012 05:41:42 +0000

1. Rapid Population Growth
In Nepal, the growth rate of population is very high 1.40% per annum as compared to the economic growth rate is 4.5%, according to world Economic Outlook – 2011. Due to extreme high population, the living standard of people is degraded.

2. Gender inequality

The unequal distribution of income and wealth is another cause of poverty in Nepal. The gap between rich and poor is very high and the distribution of national income is not in favors of poor people. So, poor get poorer and poorer and rich get richer and richer.

3. Illiteracy

Illiteracy is also one of the causes of poverty. Illiterate people are unaware about family planning measures and birth spacing and are not familiar with the problem created by large population. So, the more population, the more requirement of job causes unemployment and ultimately arises poverty.

4. Lack of employment

Nepal, a country with poor, weak and fragile economy has very limited industries (large). The population is growth rate is high but industries are limited. So, rate of unemployment is growing rapidly leading to poverty.

5. Low saving

About 70 or more percent of total salary or income is spent in food which is very high and rest 30% is spent in other sectors such as education, health etc. The percent shared by saving is null or very less.

6. Old technology

Farmers of Nepal are traditional and are poor. They use old technology for farming and their production include max food crop (49.1%). Similarly, the production is low, which causes poverty even though they labour hard enough.

Importance of agriculture in Nepal

Economics 11 Notes — Sun, 08 Apr 2012 05:41:42 +0000

1. Source of food
Agriculture is determined as main source of food in Nepal. All food and cash crops are grown from agriculture. Agriculture is the mean to survive. We get all required food from it. So, it is a main source of food.

2. Source of raw material
Agriculture is not only source of food but a dominant source of raw material. Jute, sugarcane, tobacco etc. are produced or obtained from agriculture.

3. Employment opportunities
Agriculture is the primary source of employment. According to a report of World Bank about 71.74% of total population depends upon agriculture. The number are 3,831,000 families depending on agriculture as per the 6th agricultural counting from Nepal Government. Thus, almost all farmers are completely engaged in agriculture, making agriculture dominant in agricultural employment.

4. Source of foreign trade
Most of the agro-product is export to foreign or international market. About 60% of agro-product is exported to foreign land. Tea, coffee, woolen clothes, leather jackets etc. are exported which is agricultural products.

5. Increase in Government revenue
Since, 60% of goods exported are obtained from agriculture. So, Government of Nepal includes export tax, tax, registration tax etc. which is the important source of Government revenue.

Problems of tourism industry

Economics 11 Notes — Sun, 08 Apr 2012 05:41:42 +0000

1. Lack of transportation and communication:

Nepal is economically poor country. Nepal has not been able to provide transportation and communication facilities in all sectors. So, tourists who visit Nepal cannot get a chance to observe all parts of Nepal.

2. Lack of trained tourism manpower:

Tourism industry needs trained and untrained manpower. Trained manpower is scarce in Nepal. Such as: Geographical experts, Trained and Export guides etc.

3. Lack of good quality hotels:

According to the fiscal year 2009/10, there were 103-star hotels with 9613 beds. The hotels are not well managed and unhygienic. So, tourists do not prefer to visit Nepal due to unhygienic, unmatched and unmanaged hotels.

Economics XI

Economics 11 Notes — Sun, 08 Apr 2012 05:41:42 +0000

General

Human Resources

Agriculture

Poverty

General Industry

Tourism Industry

Prospects of Tourism Industry

Economics 11 Notes — Sun, 08 Apr 2012 05:41:42 +0000

1. Natural beauty

Nepal is a country full of natural beauty. Fast flowing river, evergreen hills, snow capped mountains etc makes Nepal look attractive and majestic. Yearly thousands of tourists visit Nepal to have glance over her magnificent beauty.

2. Religious places

Nepal is the destiny per Hindus. The greatest and the biggest temple of Hindu, Pashupatinath temple is situated in Kathmandu Nepal. The largest statue of Shiva in the world, 143ft is situated in Bhaktapur (Sanga), Nepal other many famous temples shrines etc are in Nepal such as Swyambhunath, Changunarayan, Budhanikantha etc.

3. Art and architecture

Nepal is renowned for its natural and cultural heritage and is generally reputed for the pagoda style of temple which is rare in the world. Many tourist visit Nepal to know the art and architecture of Nepal.

4. Climate and cultural diversity

Nepal is rich in both climate and cultural sector. Different climate can be found in each topography of Nepal. Extreme cold in Himalayan, mixed climate in Hilly and hot climate in Terai. Due to variety in climate, bio-diversity exists in Nepal.

Moreover, Nepal is rich in cultural aspect. There are more than 60 ethnic groups found in Nepal with 103 language. So, many tourists come to visit Nepal to learn or for research purposes.

5. Less expensive

Nepal is an underdeveloped country with few infrastructures. So, Nepal is less expensive country than others. Tourists can visit Nepal in reasonable price.

Poverty line

Economics 11 Notes — Sun, 08 Apr 2012 05:41:42 +0000

The poverty line established the distinction between who is poor and who is not. According to Nepal Living Standard Survey (NLSS) 2010/11 an individual considered as poor if his/her per capita total income is below Rs 19261. According to this approach 25.16% people live below the poverty line where 15.46% urban poor and 27.43% rural poor.

Remedial Measures of poverty reduction

Economics 11 Notes — Sun, 08 Apr 2012 05:41:42 +0000

1. Population Control

Population is the total number of people living in a certain place for specific period of time. The more population, the more requirements of different aspects. To fulfill the need of huge population is not a simple task. But if the population is small then, fulfillment can be done. All can get job and other requirement. Finally, the number of poor decreases.

2. Industrialization

Industries are the main source of income and employment. Many people can be employment opportunities if the industries are established. Thus, the number of poor decreases with the increase in the number of industries.

3. Education

Educated people are aware about family planning measures, (birth spacing) and helps to reduce population growth. So, poor people should be provided education free of cost, and they should be aware about family planning measures.

4. Use of modern technology

People in Nepal use traditional method of farming. So, the productivity is low which includes about 49% of food crops. In order to increase productivity and standard of farmer, modern technology should be used.

5. Reduce in-equality

Vast inequality between rich and poor should be banished “Education for all”, should be implemented and maintained properly. Poor should also have equal right to go to school. So that all can know about negative impact of large population.

Problem of cottage and small scale industry

Economics 11 Notes — Sun, 08 Apr 2012 05:41:42 +0000

1. Lack of rural infrastructure
Nepal’s rural area is sympathies and have no infrastructure life is extremely difficult and hard to earn livelihood. To run an industry, infrastructure is essential but Nepal lacks infrastructure.

2. Lack of skilled manpower

Nepal does not have sufficient manpower basically skilled one Brain drain is the main problem of Nepal. All skilled manpower move abroad which is the major problem.

3. Lack of modern technology

Farmers in our country use traditional method of farming. They do not know about modern technology. They totally depend upon tradition. They depend upon monsoon rain and use low quality seed.

4. Lack of credit facilities

Farmers are poor and there is no proper banking facility in Nepal which lends money in low interest. So, farmers depend upon money- lender, traders etc and charge very high rate interest.

5. Limited market

Due to lack of infrastructure (communication and transportation) farmers do not get opportunity to sell their product in reasonable price.

6. Intermediary Exploitation

Intermediary or middlemen are the price maker of Nepalese economy. They exploit the entire economy. They charge very amount to farmers and sell/supply to market in very huge amount. They are the profit maker and exploiter.