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Follow Up - Progress to date: Nepal

The government of Nepal requested to join the IF in 2002 after which the IFWG decided to conduct a DTIS for this country. The groundwork for this study was laid through a preliminary mission in September 2002 and a full field mission in October 2002, during which consultants gathered data and conducted extensive interviews. The work was carried out under the guidance of the National Steering Committee.

The Nepal Trade and Competitiveness Study included the following topics:

  • Country Background

  • Trade Regime and Performance

  • Accession to the WTO

  • Price Competitiveness and Productivity

  • Facilitating Trade: Customs and Transport

  • Labor Markets

  • Regulatory Framework and Foreign Direct Investment

  • Case Studies (carpet industry, garments, tea processing, agriculture and tourism)

  • Action Matrix

The Nepal national workshop took place on June 27, 2003. Participants included representatives from the government, private sector, labor unions, academics and donors.

During parallel sessions the following cross-sectoral topics were discussed:

  • Trade Policy, Institutions and WTO accession,

  • Labor Market Policies,

  • Trade Facilitation,

  • Investment Climate and Foreign Direct Investment.


After the workshop the government convened a donors’ meeting during which the results of the workshop were discussed.

The main recommendations of the workshop will be incorporated in the study, which will be discussed by the Steering Committee. The formal validation of the revised study at the cabinet level is foreseen in the fall of 2003. A donor’s implementation meeting is also expected to be convened in the fall. It is expected that the government will submit proposals for Window II funding.

The Nepal PRSP is likely to be finalized before the end of 2003. In the draft report trade is recognized as an engine of economic growth. In the next government’s budget, provisions are made for the development of economic zones and direct cash allocations for low volume exports. The validated action program is expected to be included in the 2004 PRSP progress report.

Presently, the World Bank is preparing Nepal’s Country Assistance Strategy for 2004 onwards. Its foreseen objectives include the expansion of investment, trade and employment opportunities. The country work program is expected to provide follow-up and help coordinate the action as proposed by the IF diagnostic study.

The UK (DFID) is the IF facilitator in Nepal.

 

 

Page Last Updated On July 12, 2005