Written by: Ayan Basnet - 25019, Grade X
Posted on: 23 June, 2022
Economy directly relates to wealth, finance and money. An economy is the system by which a country's or region's finance, industry, and commerce are structured. Development is the most important term that a country can use to move further. And, for developing countries, the economy is the most important part. If a country’s economy is weak, that means there is less development. In order to develop the country in the proper manner and pace the country should be in a good economical state . A good economical state can be procured by having an increase in the size of the workforce and an increase in productivity.
So, economic development refers to plans, policies, and actions aimed at improving a country's economic well-being and standard of living. Growth in the gross domestic product shortly known as GDP or another measure of net profits is frequently used to measure it. When a country begins to generate more products and grow its overall wealth, it is said to be developing economically. An economic developer is in thought of planning, designing, and implementing economic development programmes, as well as operating as a vital medium between the public and private sectors and the society. Economic management also relates to economic development. It hugely affects the economy and economical development directly or indirectly. If management is not proper, there will be an economical crisis. As for the economic crisis we all know what Sri Lanka went through. Sri Lanka was on the top of the list in South Asian HDI (Human Development Index) of 2020. So, how did this happen all of a sudden? How a financially stable and well developing country’s economy suddenly crashed. According to economists, successive administration's economic mismanagement damaged Sri Lanka's public finances, resulting in national expenditure exceeding income and insufficient production of trade products and services. So, is Nepal financially stable and will it be good for the future? The simple and short answer is no. Nepal’s economy hasn’t been any better from the past few years. Nepal has luckily survived the economic crash like Sri Lanka more than once. Nepal is ranked 31st out of 39 Asian countries, with a score that misses the mark of the regional and worldwide averages. Nepal's economic growth rate has slowed significantly in the last five years, from 2017 to 2019. In 2020, the economy entered full downturn, but recovered in 2021. There have been some ongoing development projects in both agricultural and industrial sectors which are helping in the economic growth of our country. Some of them are:
Sikta Irrigation Project,
Nepal has diplomatic relations with foreign countries which helps us by donating in technical and financial fields. And now it seems that Nepal’s government has taken several steps to avoid that kind of situation.
References:
11th May, 2022, https://www.aljazeera.com/news/2022/5/11/how-sri-lanka-spiralled-into-crisis-and-what-happens-next
