Development Challenges in Nepal

1. Lack of long-term vision the objectives of each periodic plan vary and consequently lack the continuity in strategies.
2. Lack of clear-cut vision on HRD.
3. Inability to divert foreign aids towards development priorities and to use the aid in a coordinated way.
4. There is no clear-cut vision on decentralization and nature and scope of autonomy of local bodies have been prepared. Thus, there is lack of an effective institutional system for local development of backward areas and ethnic groups.
5. Inability to formulate annual programs according to the objectives and targets set by the plan.
6. Lack of system to distribute resources on the basis of cost-benefit analysis.
7. Lack of legal and institutional infrastructures necessary for competitive market economy.
8. Lack of effectiveness in different plan-related activities. Such as studies, research monitoring evaluation and premature institutional development for these activities.
9. Weakness in different aspects of good governance, such as the rule of law, public accountability transparency, people’s participation etc.
10. No necessary infrastructures have been built for the commercialization of agriculture.
11. Lack of self-mobilization and strong tendency to be dependent on government because of the prevalence development programs under state direction and control.
12. Prevalence of the state-directed and controlled development process.
13. Inability to properly identify the sectors having comparative advantage and competitive capability due to lack of strong institutional development related to planning and studies.
14. Lack of various recognized standards and qualities for directing various sectors involved in economic activities.