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Submitted by Phanindra Adhikary on
Remittances did significantly helped Nepal not only during the recent economic crises, but also through out the conflict period. Also that most people living in rural areas of the country are outside of the fundamentals of banking. Nepalese people do not rely on credit economy. Therefore this might also have worked as a cushion. However, remittances is likely to reduce in the coming year as a recent media report informs that Nepalese workers travelling to West Asia has reduced by around 10%. In my view, organization like the World Bank will need to focus on helping the Government of Nepal to implement programs that brings alternative instead of relying soley on remittances. Larger food crises is looming the region including Nepal. WFP forecasts well over a three-million people will be facing food shortages during the winter. Agriculture land has not been used to its fullest extent due to conflict and current political transformation process. Therefore, investment towards increased agriculture production and use of agro-based produces as income generating activities for the rural poor will help to revive the economy gradually. Labour-based irrigation program will help to increase employment opportunity. Increased agriculture production will also help to reduce our reliance on remittances as well as that the remittance incomes will be used within the country. This will also reduce our reliance on food aid through WFP. As Nepal is undergoing transition, political stability will be key to the recommend approach. However, if we start from now then we can hope to be achieving our target within the next 8-10 years. Phanindra Adhikary Kathmandu, Nepal