Nepal improves in ranking, but economy lags robust performance

The Human Development Report 2009 reveals that Nepal has bettered its ranking in the Human Development Index (HDI), albeit marginally. Of the 182 countries, the nation stands at 144. While, it was 142 among 177 countries last year.
Of all the components of the HDI, only income and enrolment in schools respond to short term policy changes.
Nepal’s HDI rose by 2.1 per cent annually between 1980 and 2007. It now stands at 0.553. But it is falling behind since the HDI scores across the world have increased exponentially over the years.
“Nepal’s progress has been hampered due to poor economic component of the HDI,” said Robert Piper, UNDP, resident representative, at the launch of the 20th edition of the Human Development Report.
Though, the annual report is not a comprehensive measure of human development, it looks beyond the GDP, and encompasses a broader definition of wellness. The HDI gives a rounded view of three dimensions of human development: life expectancy, adult literacy and gross enrollment in education and income.
The report measures the average progress of a country in human development. Like every year, this year, too the UN had come up with a topical theme — ‘Overcoming Barriers: Human Mobility and Development. It loosely translates to migration to improve the standard of living.
Most migrants, domestic and international, reap gains in the form of higher incomes, better access to education and health that improve the prospects for the next generation.
"Nepal has an emigration rate of 3.9 per cent. The major destination for migrants from Nepal is Asia. Ninety-five per cent of emigrants are living there," as per the report.
"Remittance makes the most direct impact on migration. It has increased household incomes, thereby improving the overall standard of living," said sociologist Dr Ganesh Gurung.
However, the report has suggested policy reforms and reduction of transaction costs of remittance.
"Migration is a necessary evil since as many as 3,50,000 youths vie for jobs in the nation annually. Since there aren’t that many openings, they are forced to seek employment abroad. In the present context, brain drain is brain gain,” said Dr Yubraj Khatiwada, vice-chairman, National Planning Commission.
China and India are ranked 92 and 133, respectively, in the HDI. Norway ranks first, and Niger brings out the rear among the 182 UN member states. Ten UN member states were not included due to lack of data.
The countries were classified into three broad categories: high, medium and low human development. Eight-three nations belonged to high categories. While, 75 was medium and the rest 24 was low.
The HDR was developed in 1990 by Pakistani economist Mahbub ul Haq and Indian economist Dr Amartya Sen.

Where Nepal stands
HDI ranking: 144
Life expectancy: 115
Adult literacy rate: 130
Combined gross enrollment ratio: 136
GDP per capita: 165
Human Poverty Index: 99 (out of 135 countries)

South Asian ranking
(Chine -- 92)
Maldives -- 95
Sri Lanka -- 102
Bhutan -- 132
India -- 133
Pakistan -- 141
Nepal -- 144
Bangladesh -- 146
Afghanistan -- 181
(Niger -- 182)