Development Aid--What Does The Money Buy?

I was looking at the total amount of dollars spent by the West on development programs around the world and I started to wonder how much of that is spent on their own workers--the "Expert Consultants." Here is the graph on the total amount of development aid provided by various countries expressed as a percentage of their GDP.

Ghintang Economics' source: http://www.economist.com/node/15542846 

Here (CLICK HERE) is an explanation on the high cost of foreign consultants and experts brought in by a lot of these agencies and the problems associated with that practice.

Of Ghettos and "Gallis!"

I was happy to see the support and endorsement I got for the "Galli Aapnaun" (CLICK HERE) project that I proposed. I am sure that there are a few who would argue that it can't happen or won't happen. Well, I thought I might be able to persuade them with the help of this inspiring video--a story of success in the south Bronx!

                      

One More...Have We Hit A "Century" Yet?

There is one more bank entering the financial market of Nepal. It plans to start operations sometime during the second week of February. The CEO of the new Century Bank says (CLICK HERE) that they plan to get involved in both commercial lending and micro-finance lending. He tells the reporter of The Kathmandu Post that the bank's slogan is "Simple Banking For All."

Here is a graph of the various financial institutions from Nepal Rastra Bank's (Nepal's Central Bank) website. 

Growth of Financial Institutions in Nepal

  

"Galli Aapnaun"

I was driving on the highway and realized something that I had overlooked for a while--"Adopt A Highway" signs! So, I sat down and put my thoughts on paper. The article is published on Nepali Blogger (CLICK HERE). Please feel free to add your ideas/thoughts, which will undoubtly help improve it. Also, share it on Facebook so other Nepali people are aware of this project!

Nepal's GDP Growth--Hijo, Aaja, Bholi

Ghintang Economics' source: http://www.tradingeconomics.com/

New Bubble?

According to the World Bank data for Nepal, the Gini-index, a measure of income disparity, stood at 38 in 1996 and increased to 47 in 2004—an increase of about 24 percent. The overall income share of the richest 20% of Nepali people increased in the same time period from 46% to 54%, whereas the share decreased for all other income groups. In fact, the income share of the second richest 20% and the middle 20% dropped by 14% and 20%, respectively. It is very likely that the rich have a lower propensity to consume and would therefore save. However, due to the risk of inflation, these individuals would look elsewhere for saving rather than at a typical savings account—a well performing real-estate market was a perfect store of value. As the residential real estate market pulled back in recent years, is the money moving towards commercial real estate? Here is an article (CLICK HERE) from MyRepublica on the rise of commercial complex construction . Is a new bubble on the way? Is it the end of the "Kirana Pasal" concept that gives Kathmandu its unique identity?

"Ask What You Can Do For Your Country"--JFK

Remittance--Lifeblood of Nepal

Given the political chaos and uncertainty we should be thankful for the remittances.

source: http://data.worldbank.org/data-catalog 



Inflation--Relentless

Easy credit does add to aggregate demand--just saying!

Growth of Financial Institutions in Nepal

The Dream!

Biogas in Nepal: Time to Strike Down Cultural Taboos!

The concept of Biogas is not new to Nepal. I was aware of it back in the early 90s. But, the importance of its use now is much more vital than back in the 90s. The social and cultural stigma attached to it is still alive, especially amongst the higher caste. Some of these informal barricades will take time to fall, however, the government, NGOs, and INGOs should increase the educational outreach and make their efforts much more efficient. Also, there should be a higher subsidy provided by the government to install biogas system, which will allow more families to afford one. The one-time cost should not deter our efforts as there is a long run positive benefit to the society at large of implementing this system--*reduction in deforestation (CLICKHERE) *reduction of carbon dioxide emission *reduction of health issues (mostly respiratory) for families translating into lower social cost of health care *better health of workers and student means better productivity, etc. 

Here is a video of biogas use in southern Nepal. Thanks to Dr. Loren Byrne, Roger Williams University, for bringing this to my attention. Spread the word!  

Source: http://www.dw-world.de/dw/0,,13821,00.html

"Doc* Saab--Namaskar!"--Fake Honorary Doctorate Degrees

I read an article on The Economist (CLICK HERE) about why a PhD may not always be the best academic goal and may even be a "waste of time!" and potentially "reduce earnings." The article also talks about the recent increase in doctoral degrees awarded around the world. At that point I remembered reading something similar about Nepal as well...
Anyone have a degree from “Greenford International University” located in “Central United States?” If yes, it is a fake! This is not breaking news; however, I did not hear much about it after reading the report by Mr. Guna Raj Luitel on MyRepublica (CLICK HERE) a few months back and wanted to follow up on it. A quick Google search revealed the picture (see below) of the ceremony posted on Nepali World News (CLICK HERE) along with the original news article. I do not know what has come of the media exposure of these individuals, however, the article points out that “after the news was carried in Nagarik, famous artist duo of our country Madhan Krishna Shrestha and Hari Bansha Acharya, popularly known as Maha jodi, extended their apology to the public and their well-wishers for accepting the honorary PhD from GIU. Both of them have also requested the government bodies to investigate about this so-called university. Following in their footsteps, a media owner also declared that he had returned the PhD degree. Until now, however, our two political leaders Deputy Prime Minister Bijaya Kumar Gachchhadar and senior leader of CPN-UML K P Sharma Oli who had also been conferred ‘honorary’ degrees are conspicuously silent. Perhaps, their love of being called Dr supersedes their responsibility of being public figures.”



source: http://www.nepaliworldnews.com/page.php?id=260

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A Problem With "Development"

Most of the Op-Ed written on the development aid sector of Nepal seems to fall on deaf ears. At best, the concerns are dismissed as --"what do you know about development?" The criticism of such pieces are mostly personal, designed to discredit the critics rather than a defense based on empirical evidence. Well, there could be some dire circumstances that will prevail if things are not changed. And, as Dr. Jeremy Rappleye (PhD, Oxford) points out in his very interesting Op-Ed (CLICK HERE), Nepal "will see increased exit and violence, not less," if we continue down the same failed path of "development."

"Dahej"--Dowry, Not a Story of The Past!

The chart above shows the literacy rate in Nepal for young women. It has steadily risen over the years, which is a welcome news for all. However, this article (CLICK HERE) from EKantipur points out that there are still violence against young women in Nepal, especially along the Terai (southern plains) strip related to dowry. Here is an excerpt from the article-- " A woman from Santapur VDC was recently beaten to death by her husband and in-laws just because her parents could not provide Rs. 10,000 in dowry. While her in-laws are in custody and charged with murder, the husband is still at large. It is said that her marriage was fixed on the condition that Rs.15,000 would be provided in dowry."

The Reading List

Here are some interesting articles to start off the new year...

• Shyam K.C. writes about the problems of corruption in his Op-Ed (CLICK HERE)
• The number of people visiting Nepal reaches an all time high (ClICK HERE)
• However, some doubt that the Nepal Tourism Year will meet its target (CLICK HERE)
• Richard Parker explains why "foreign aid is a smart investment." (CLICK HERE) 
• USAID to put high priority on food security (CLICK HERE)

HAPPY NEW YEAR 2011!