A Letter from the UNDP

A few days ago I got a request from Avi Sharma, an Indian volunteer with the UNDP, to post the following on my blog. I agree in principle with what follows and have therefore decided to post it. I have also added the mentioned website to the list of "Useful Resources" found on the left column.  If you have any further questions you can contact Avi Sharma at leisuresoul.avi@gmail.com

South-South Learning on Social Protection

When the world is connecting and exchanging ideas & knowledge through internet, then why Social protection topics should be left behind? We can never expect a country to generate correct and workable ideas to change the world. We need a platform, world needs a platform to exchange ideas and knowledge that have gained practicality in some part of the planet which can be implemented in others. Thus, United Nation’s International Policy Centre for Inclusive Growth (IPC-IG) has realized this requirement of mankind and recently launched a website named “South-South Learning on Social Protection”. This gateway is an initiative to foster south-south collaboration, aiming to expand the knowledge base and capacities of developing countries to design and implement nationally-owned poverty reduction strategies, bridging the gap between theory, policy and practice with accessible and diverse social protection information in print and online. It also provides a space where practitioners can share ideas, experiences and resources.

This new website has been set up as a “virtual bookcase” where there is a searchable database of social protection materials from across the world. The collection includes tools, case studies, policy papers and research. Another innovation of this gateway is that is that it fosters the interactive engagement of users, offering the possibility to participate by posting news, comments and suggestions, submission of recommendations for library inclusions, proposing new features and also participating in the Forum. The South-South Learning on Social Protection features more than 150 papers in the area and maps public policies of 94 nations - from Brazil to Madagascar, from India to Zimbabwe from South Africa to East Timor, from Mexico to the Cook Islands, from China to Trinidad and Tobago.

The idea of the website has its roots on the Africa-Brazil Cooperation Programme on Social Protection, which started in 2008 to support the development and implementation of effective social protection policies and foster South–South learning with partner African countries. Now, it’s our time to contribute i.e. youths, national policy makers, NGO’s and other organization who believe in serving and healing this world. This can provide a platform for youths to interact and design a policy in discussions with specialist by using roster feature of website and forum. As we, the people, are very energetic and have excessive interest to contribute to the society that can be contributed in the right directions. We can get ideas, policies and many publications that can lead us in contributing to the society around us which can result in a change, a change that world expect, a change which we all want to see in our lifetime. A world without poverty, without employment, without unavailability of basic necessities, that’s the kind of world I and we aim for.

Let’s hope we can change the world with clearer ideas to implement and seek guidance from people world believes on!!

Visit us at http://south-south.ipc-undp.org/

Failure of Foreign Aid

This article (Click Here) on Nepalnews points out that the United Nations Conference on Trade and Development concluded that there needs to be a mandatory "structural change in the international assistance and aid designed for the economic growth of LDCs." Duh!

Thanksgiving Break... Posts resume on Monday.

Maiti Nepal

Ms. Anuradha Koirala won the CNN's Hero award. The show is scheduled to be televised this evening on CNN in the U.S. I have already posted a YouTube video of her speech at the ceremony a couple of days ago (see below).  Here is the link (CLICK HERE) to the website of the organization that she is involved with.

Nepal Budget 2010/2011

This article from Telegraph Nepal (Click Here) summarizes the budget that was presented by the finance minister after he got assaulted in the parliament!  

                     

"Doodh Cha?"--Got Milk? --Part Three

I cannot believe this story posted here (Click Here) at Nepalnews.com and here (Click here) at MyRepublica.com! Are these officials serious when they justify the business venture of one man as "solution to the shortage of milk in the nation?" Call it what it is—a business expansion of a man (which I have no problem with) who has developed enough following from the Nepali population--now he wants to sell them his products, apparently made from dung and urine. That's right, dung and urine! 


Let us do the numbers...


The article in MyRepublica points out that the total number of milk producing cows and buffaloes currently stand under a million and 1.25 million, respectively. They also point out that only 15% of the milk is sold through formal markets. With the stated 400,000 liters of milk supply everyday in the nation, back of the envelope calculation spits out about 1.2 liters per cow per day. Now, let us accept the assertion that the donated cows will be highly productive than the current stock and will provide us with double the current amount—which comes out to about 2.4 liters per cow per day. With 50, 000 cows that is an increase of 120,000 liters per day, with an overall supply of 520,000 liters of milk per day. To be sure, this will help ease some of the shortage issues in the nation, but it is hardly enough to meet the industry stated demand of 800,000 liters per day. 


NepalNews points out that "the high breed cows being gifted by Ramdev, founder of Patanjali Yoga Peeth, will be used for acquiring dung and urine for the proposed drug company (see, I told you--a business venture) which can, with the aid of the cows, produce up to 22 litres of milk per day" I do not know where the 22 liters came from, however, if this number is true then these cows will add more than one million liters, which will not only solve the shortage issue but actually create a surplus! My head hurts....


The article points out that “State-owned Dairy Development Corporation (DDC), which commands more than 40 percent share in the domestic dairy market, has been importing around 40,000 liters of milk per day from India´s Bihar state. Similarly, big private dairies, which are running under 50 percent of their installed capacity due to shortage of fresh milk, are also sourcing weighing the possibility of sourcing fresh milk from the northern neighbor.”


Again, I have written a couple of posts before on this topic (Doodh Cha--Got Milk & Got Milk-Part Deux), where I have argued that this is a problem created mainly due to the direct involvement of the government in the production and distribution of milk. The government should limit its involvement to quality control of dairy products and move away from direct involvement in production. This will assure private investors of fair and free competition in the future, thus acting as an impetus for investment.


What's this proposed drug company? hmmm...

CNN Hero Of The Year--Anuradha Koirala

"Anuradha Koirala and her group, Maiti Nepal, have helped more than 12,000 victims of Nepal's sex trafficking business." --CNN

Gender Equality in Education

I recently wrote about education and girls in Nepal and presented a graph demonstrating the trend over the years. You can find that post here (CLICK HERE). The graph showed that Nepal was moving in the right direction. However, a study (Click here for the article) conducted by Didibahini and Asia South Pacific Association for Basic and Adult Education (ASPBAE) finds that "Nepal stands fifth among South Asian countries on gender equality in education." --There are 7 countries in South Asia!

Time for a laugh!

The world's one and the only stand-up economist, Dr. Yoram Bauman, was at our college past week. It was a great show and the people (about 180 or so) who attended had a great time. If you are scratching your head and wondering how economics and humor can possibly go together, watch the video below.

"The Poverty Lab"

I was reading "The Poverty Lab" published by The New Yorker, May 17, 2010 about Esther Duflo, "a thirty-seven-year-old professor of development economics" at MIT, and thought that I should share the article with you. I could not get a hold of the article online, however, I have managed to get the video of her talk at Ted (see below). According to the article Ms. Duflo "runs field experiments that measure different ways to save the world." She compares her work to various scientific experiments that take place in the field of medicine everyday. She calls these experiments "a very robust and very simple tool" which help reduce statistical noise and allows us to "connect cause and effect."

Issues with Microcredit

Microcredit institutions have been growing in numbers in Nepal for some time, and private/commercial lenders have started to partake in the game. Here is a link http://nyti.ms/9ReO4i to a story about defaults in India on similar programs.

Crisis of Capitalism

Interesting RSA analysis of the present crisis. Is there anything here for the developing world to learn as they look for an economic system that fits them? Food for thought...

RSA Animate – Crisis of Capitalism

Invention of Foreign Aid

President Truman in his inaugural adress in 1949 spoke to the importance of foreign aid. He said "we must embark on a bold new program for making the benefits of our scientific advances and industrial progress available for the improvement and growth of underdeveloped areas…More than half the people of the world are living in conditions approaching misery….For the first time in history, humanity possesses the knowledge and the skill to relieve the suffering of these people…. And…we should foster capital investment in areas needing development.…this program can greatly increase the industrial activity in other nations and can raise substantially their standards of living."

(Click here for the entire article)

I am participating at the Regional Science Association International conference in Denver, CO. I am presenting my paper on dynamic dual sector model on Saturday's afternoon session.
I will resume posts on Monday.

"Nwaran"

The original name of this blog was "Economist Jetha." The name was picked because I am older than Shabda Gyawali, who runs the blog "Economist Kancha." However, without the context the name does sound haughty. Therefore, I have decided to change the name of my blog to "Ghintang Economics"-- Ghintang is the sound made by a traditional Nepali drum Madal.

Hope you are finding this blog interesting and helpful.
Niroj Bhattarai

Lecture On Newari Art

My dear friend Kerry Brown (PhD Candidate-Virginia Commonwealth University) will be giving a lecture on the Art History of Newar Buddhism on November 12, 2010 at 2:45 pm at the Rangjung Yeshe Institute, Boudhanath, Kathmandu, Nepal.

Commitment to Development Index 2010

This interactive map/chart shows the commitment level of developmed countries towards the developing world. The factors include: Aid, Trade, Investment, Migration, Environment, Security, and Technology.
Commitment to Development Index 2010 : Center for Global Development : Initiatives: Active

Innovation Around The World

This chart (Click Here To Enlarge) shows the total number of patent filings per research and development dollar spent. It is clear that the highest return on investment seems to be with South Korea.

Nepal's Monetary Policy 2010/11

Here (CLICK HERE) is the entire monetary policy for 2010/11 put out by Nepal Rastra Bank.

"Bhana Bhana Bhai Ho..."

Nepal--Jindabad!

"SINCE 1980 the country that has made the greatest strides in improving human development is Nepal, according to the UN’s annual Human Development Index (HDI)."-- (The Economist)
Good to hear that Nepal is moving in the right direction! (Click here for the article)

Inflation Averages for Nepal



Source: http://www.tradingeconomics.com/

 Yesterday I wrote about the various factors that the NRB mentioned in their Monetary Policy Report, which might be the factors for higher prices in Nepal. Obviously, there are supply side disturbances, including international factors, that might be adding to the pain as well. Keeping up with yesterday's theme, I have posted this chart showing inflation in Nepal since the late 1970s. This chart which includes data from the IMF shows prices falling and stabilizing at about 5% by 2016. Cross your fingers!

"Mahangee Badyo"

I just got a chance to read some parts of the “Monetary Policy for Fiscal Year 2010/11” put out by Nepal Rastra Bank. (Click here for the entire report) The Rastra Bank reports that the government expenditure “increased by 20.2 percent” in 2009/2010. The report also points out that there was a 20.2% increase in recurrent expenditures driven mostly due to “an upward revision in the salary and allowances of civil servants” and an “increase in the expenditure on special security plan.”  The budget deficit was 13% higher in 2009/10 than in the previous fiscal year.  According to this report the total “number of banks and financial institutions licensed by the NRB has also increased in 2009/10”—in fact, it went up by 12.15%.  Given all these factors that increase liquidity in the economy, it should be no surprise that the NRB estimated the average inflation rate “to remain at 10.5 percent.”  

Pythagoras Theorem…Solved!

Should the student get zero or 100?

"Yo Man ta Mero Nepali Ho"

"Jaso gara, je bhana, jata sukai laijau malai---yo man ta mero Nepali ho" -- 1974 A.D. (Click here for the song)
 Over the last few years I have heard about western educated Nepalese returning back to Nepal. In fact, some of my friends and people close to me, including my cousins, have returned—and sometimes I find myself entertaining the thought. 
 This research (Click Here) sheds some light on similar phenomenon involving Indian-Americans returning back to India.