Nepal : Sources of Growth in Agriculture for Poverty Reduction and Shared Prosperity

Agriculture contributes about 35 percent to the Gross Domestic Product (GDP) of Nepal. But growth in the sector has been quite volatile in the last decade, tothe extent that the lowest and highest growth rates were recorded in consecutive years. Ne...

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Main Author: World Bank Group
Format: Report
Language:English
en_US
Published: World Bank, Washington, DC 2017
Subjects:
Online Access:http://documents.worldbank.org/curated/en/464681499870177588/Nepal-Sources-of-Growth-in-Agriculture-for-Poverty-Reduction-and-Shared-Prosperity
http://hdl.handle.net/10986/28333
id okr-10986-28333
recordtype oai_dc
spelling okr-10986-283332021-06-14T10:12:49Z Nepal : Sources of Growth in Agriculture for Poverty Reduction and Shared Prosperity World Bank Group AGRICULTURE POVERTY REDUCTION SHARED PROSPERITY PRODUCTIVITY DIVERSIFICATION MECHANIZATION PUBLIC EXPENDITURE FERTILIZERS SEED SUBSIDIES EXPORT COMPETITIVENESS VALUE CHAIN Agriculture contributes about 35 percent to the Gross Domestic Product (GDP) of Nepal. But growth in the sector has been quite volatile in the last decade, tothe extent that the lowest and highest growth rates were recorded in consecutive years. Nepal agriculture is characterized by relatively low yields compared to neighboring countries. Furthermore,land is disproportionately allocated to grain staples (rice, maize, wheat, millet, barley, and buckwheat),despite fruits and vegetables showing relatively higher yields and higher growth in consumption. A proper understanding of the sources of agriculture growth would help identify what kind of agriculture offers most potential to further reduce poverty and boost shared prosperity.Nepal is increasingly becoming a net importer of food, both in high value foods such asfruits and vegetables as well as staples such as rice, potatoes, and maize. Expanding exports would require investments in infrastructure and a conducive regulatory environment to certify that products from Nepal achieve the various Sanitary and Phyto-sanitary standards of foreign markets. The main objective of this report is to identify policy and investment priorities to stimulate agricultural growth for poverty reduction and shared prosperity. The study ultimately seeks to inform strategic dialogue between Government of Nepal and the World Bank Group towards investments inagriculture and supporting sectors. The report provides building blocks to identify policy andinvestments priorities. After a brief Introduction, Chapter 2 examines the main drivers of agriculturefor poverty reduction and shared prosperity. The key issues addressed are drivers of agricultural income, drivers of total factor productivity growth, emerging patterns of diversification, degree of mechanization, and constraints to investments in the sector. Chapter 3 examines the effects of public expenditures in fertilizer and seed distribution programs, paying specific attention to effects on: supply of fertilizers, fertilizer application rates, retail prices, private sector participation, performance of the distribution chain, relative access between various categories of farmers, and consistency of the program with inequalities in the distribution of poverty and food and nutritional security. Chapter 4 generates lessons on policy and investments to expand exports. Chapter 5 generates lessons on policy and investments to substitute imports. Chapter 6 provides overall recommendations for policy and investments priorities, while distinguishing between actions needed to stimulate broad-based productivity growth with actions need for export promotion and import substitution. 2017-09-13T19:42:58Z 2017-09-13T19:42:58Z 2016-12-01 Report http://documents.worldbank.org/curated/en/464681499870177588/Nepal-Sources-of-Growth-in-Agriculture-for-Poverty-Reduction-and-Shared-Prosperity http://hdl.handle.net/10986/28333 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Other Agriculture Study Economic & Sector Work South Asia Nepal
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic AGRICULTURE
POVERTY REDUCTION
SHARED PROSPERITY
PRODUCTIVITY
DIVERSIFICATION
MECHANIZATION
PUBLIC EXPENDITURE
FERTILIZERS
SEED SUBSIDIES
EXPORT COMPETITIVENESS
VALUE CHAIN
spellingShingle AGRICULTURE
POVERTY REDUCTION
SHARED PROSPERITY
PRODUCTIVITY
DIVERSIFICATION
MECHANIZATION
PUBLIC EXPENDITURE
FERTILIZERS
SEED SUBSIDIES
EXPORT COMPETITIVENESS
VALUE CHAIN
World Bank Group
Nepal : Sources of Growth in Agriculture for Poverty Reduction and Shared Prosperity
geographic_facet South Asia
Nepal
description Agriculture contributes about 35 percent to the Gross Domestic Product (GDP) of Nepal. But growth in the sector has been quite volatile in the last decade, tothe extent that the lowest and highest growth rates were recorded in consecutive years. Nepal agriculture is characterized by relatively low yields compared to neighboring countries. Furthermore,land is disproportionately allocated to grain staples (rice, maize, wheat, millet, barley, and buckwheat),despite fruits and vegetables showing relatively higher yields and higher growth in consumption. A proper understanding of the sources of agriculture growth would help identify what kind of agriculture offers most potential to further reduce poverty and boost shared prosperity.Nepal is increasingly becoming a net importer of food, both in high value foods such asfruits and vegetables as well as staples such as rice, potatoes, and maize. Expanding exports would require investments in infrastructure and a conducive regulatory environment to certify that products from Nepal achieve the various Sanitary and Phyto-sanitary standards of foreign markets. The main objective of this report is to identify policy and investment priorities to stimulate agricultural growth for poverty reduction and shared prosperity. The study ultimately seeks to inform strategic dialogue between Government of Nepal and the World Bank Group towards investments inagriculture and supporting sectors. The report provides building blocks to identify policy andinvestments priorities. After a brief Introduction, Chapter 2 examines the main drivers of agriculturefor poverty reduction and shared prosperity. The key issues addressed are drivers of agricultural income, drivers of total factor productivity growth, emerging patterns of diversification, degree of mechanization, and constraints to investments in the sector. Chapter 3 examines the effects of public expenditures in fertilizer and seed distribution programs, paying specific attention to effects on: supply of fertilizers, fertilizer application rates, retail prices, private sector participation, performance of the distribution chain, relative access between various categories of farmers, and consistency of the program with inequalities in the distribution of poverty and food and nutritional security. Chapter 4 generates lessons on policy and investments to expand exports. Chapter 5 generates lessons on policy and investments to substitute imports. Chapter 6 provides overall recommendations for policy and investments priorities, while distinguishing between actions needed to stimulate broad-based productivity growth with actions need for export promotion and import substitution.
format Report
author World Bank Group
author_facet World Bank Group
author_sort World Bank Group
title Nepal : Sources of Growth in Agriculture for Poverty Reduction and Shared Prosperity
title_short Nepal : Sources of Growth in Agriculture for Poverty Reduction and Shared Prosperity
title_full Nepal : Sources of Growth in Agriculture for Poverty Reduction and Shared Prosperity
title_fullStr Nepal : Sources of Growth in Agriculture for Poverty Reduction and Shared Prosperity
title_full_unstemmed Nepal : Sources of Growth in Agriculture for Poverty Reduction and Shared Prosperity
title_sort nepal : sources of growth in agriculture for poverty reduction and shared prosperity
publisher World Bank, Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/464681499870177588/Nepal-Sources-of-Growth-in-Agriculture-for-Poverty-Reduction-and-Shared-Prosperity
http://hdl.handle.net/10986/28333
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