Presented by Janjit Adhikari

B.Sc. Agriculture IAAS, Paklihawa Campus

Critical Analysis of 7th, 8th and 9th

Five-Year Plans of Nepal

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• First plan that stated poverty in the objectives. i.e. to fulfill the basic need of the people. It is also known as Basic Need Program (BNP). GOV announced BNP in 1987.

Seventh Five Year Plan(1985-90)

Objectives• Increase production at a higher rate• Increase opportunities for productive employment • Fulfill the minimum basic needs of the people

FinancingThe total outlay of this plan was estimated to be Rs. 50, 410.0 million at the constant rate of 1984/85.

Priority To fulfill these objectives, overall priority was accorded to development of agricultural sector.

1st Priority – Agriculture, Irrigation and Forestry

2nd Priority – Industry, Mining and Power

3rd Priority – Social Services

4th Priority – Transportation and Communication

Poverty Alleviation Programmes Main Programs ProgramsSubsidies and Transfer - Food Subsidies

- Fertilizer subsidies- Credit subsidies- Irrigation operation

Food and feeding program

- Nepal food corporation- Food for work- Nutritious food program- School feeding program- Joint nutrition support program

Targeted credit program - Small farmer development program- Production credit for rural women- Intensive banking program

Employment program - Food for work- Youth employment program

Target Vs Achievements

Features Targets Achievements

GDP Growth Rate (%)

4.5 % per annum 5.56 %

Per Capita Income (%)

1.9 % 2.9 %

Agricultural Growth - Food Grains - Cash Crops

4.0 %5.2 %

5.6%6.5 %

Literacy Rate +10 % (29.9 to 39.9)

N/A

Statistics or reports regarding the achievements of this plan is yet to be published. The following analysis is on the basis of datas available upto 3rd year of the plan.

Limitation and ObstaclesUpto 3 years of the plan, satisfactory achievements were made but during the following years, the achievement in most of the sectors was expected to decrease due to expiry of trade transit treaty in between India and Nepal.Obstacles Panchayat Regime : The budget allocated for

the structural development in the Panchayat, were mis-handled by the Panchas.

Political Instability Indian Blockade

Political Revolution and Restoration of Multiparty Democracy in 1990.

New era began in history of planning. Lag of about 2 years in between 7th and 8th

Five year plan.

The transition phase(1990-92)

1st plan after the political change of 1990. The legacy of economic depravity by

Panchayat Regime was left behind.

Eighth Five Year Plan(1992-96)

Objectives

The principal objectives were • Sustainable economic growth• Poverty alleviation( to bring down poverty level 49

percent to 42 percent)• Rural development and regional balance

Priority Agricultural Intensification and diversification Energy development Development of infrastructure Employment generation and HRD Control of population growth Industrial development and tourism promotion Export promotion and diversification Macro economic stabilization Reform in development administration and Monitoring and evaluation

Financing

The total outlay of the plan was Rs. 17033.2 million.

To fulfill the objectives, 70 % of its total development budget was allocated for rural development

25.8 % of the budget was allocated for the development of Agriculture, irrigation and forestry.

Problems /Obstacles

A single five year plan cannot find a remedy to all the problems but it is imperative to take concrete steps in that direction.

Political instability Drought Change in agricultural organizational structure. Political interference in government mechanism Lack of commitment

Target Vs Achievements

Features Targets Achievements

GDP Growth Rate (%) 5.1 % 4.9 %

Industrial growth(%) 10.0 % 6.9 %

Population under Poverty (%)

- 7 % (49 to 42)

N/A

Agricultural Sector - Production growth - Rice Productivity - Contribution to National GDP - Irrigation area(additional)

3.7 % per year

2.85 MT/ha

293,895 ha

3.0 % per year2.46 MT/ha

85.5 %

Afforestation programmes 67,119 ha 26,456 ha

This plan established long-term target and development indicates for all sectors based on their potential for alleviating poverty.

It will be implemented in a way as recommended by Agriculture Perspective Plan (APP).

Ninth Five Year Plan(1997-2002)

Objective

Poverty alleviation was the sole objective of the Ninth Plan.

The implementation of the Agricultural Perspective Plan was the major means to alleviate wide-spread poverty in rural areas. The plan had the target to drop the proportion of population living under absolute poverty to 32 percent at the end of the plan period, and had a 20-year objective to reduce the absolutely poverty to 10 percent.

Development Strategies

There were three main strategic development policies within the framework of liberal and market-oriented economy adopted in the Ninth Plan. And they were: Achievement of sustainable and wider economic

growth rate, Development of social sectors and rural

infrastructures, and Targeted group programs for hindered and deprived

areas and communities.

Priority

Agriculture and forestry Water resources, power and energy Human resources and social development Industrialization, tourism and international trade Physical infrastructure

Target Vs Achievements

Features Target(in %) Achievements(in %)

GDP growth rate 6 3.6Non-Agriculture growth 7.3 3.9Agriculture growth 4.0 3.3 - Cereal Crops 5.2 2.5 - Cash crops 6.5 5.3 - Other crops 4.2 3.3Population under poverty

32.0 38.0

Literacy above 15 years(%)

70.0 49.2

Problems Weaknesses on implementation side of Agricultural

Perspective Plan (APP) Loss of agricultural production during the first and last year of

the plan due to adverse monsoon Low level of investment and production in non-agricultural

sector : caused by worsening law and order situation, due to start of Maoist Rebelion Movement.

Recession in the export and tourism on the final year of the plan : due to pervading depression in the international scenario affected plan.

Thank You

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