Regional Economic Disparities Persist Despite Federalism
Summary
Nearly a decade after adopting federalism, Nepal still faces significant regional economic disparities, with provinces like Bagmati and Gandaki outperforming others such as Madhesh and Karnali in per capita GDP.
Key Points
- Nepal's federal system aims to balance economic development across provinces based on local needs and priorities.
- Despite federalism, substantial disparities remain among provinces in economic production, investment, infrastructure, and employment.
- Bagmati and Gandaki provinces surpass the national average per capita GDP, while Madhesh, Karnali, Sudurpashchim, and Lumbini fall below it.
- Regional inequality leads to issues such as internal migration, urban pressure, poverty, and unemployment in weaker provinces, highlighting challenges in inclusive development.
