Modernization and globalization in Nepal.

Nepal

Globalization and Modernization

Summary: This is a 3 page paper on modernization and globalization in Nepal

Globalization and modernization is a process of accelerated growth, expanding horizons, taking into account both national and international frontiers duly aided by state of the art communication technologies. If one were to take a purely optimistic view of globalization, it would be found that the rate of its progress is certainly targeting even the remotest regions of the world following what we have come to call as the natural laws of the economy. However, the other side of this otherwise positive picture lie factors, however adverse they may be, and yet unaccounted for, for example the loss of national and cultural identity. Nepal is one of the countries which is experiencing a new phase, a rapid modernization of the country and the introduction of the economic liberalization. Though the country has started to gain from its economic reforms it has to be cautious of the ramification of the new technology and global trade which might be dangerous to its cultural identity and values.

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It was in the year 1951 that Nepalese monarch declared an end to the heredity system of rule and adopted a semi-monarchy government of system with cabinet. In the 1990s the King Birendra set up a multiparty democracy within the framework of a constitutional monarchy. Nepal has always had an enigmatic status; it was a close country a kingdom with a picture of medieval fairy-tale. With the population of almost 86 percent of Hindus Nepal is the only official Hindu nation in the world. Since the establishment of the multiparty democracy Nepal has initiated a course to modernism. The country is rated among the poorest and least developed in the world and nearly half of its population lives below the poverty level. The main economic activity in the country is agriculture and about 80 percent of the population earns their living through agricultural activities. There is little industrial activity and whatever there is involves agriculture production, such as sugarcane, jute, tobacco and grain [CIA World Fact Book, 2002].

Since the reformation the government has sought to modernize the country and have taking many steps to develop the living standards of the people. More than half of Nepal still does not have electricity but because of the efforts of government there are signs that Nepal is changing. One of the significant aspects that the government has taken in this respect is implementation of new economic policies and reforms which aims at increasing foreign trade and foreign investment. Nepal had a close economy and the government controlled all the economic activities but now with the new reforms in the changing world and with the aim to modernize the country the government has reduced business control and registration requirements to simplify the investment procedures. in addition the government has opened it economy to the foreign traders, it has also cut its expenditure by reducing subsidies, privatizing state industries, and laying off civil servants [CIA World Fact Book, 2002]. It is clear that after the break up of Soviet Union and the growth of free market economy, countries like Nepal had to reconsider their position in this changing world. The government had realized that they could accelerate the economic growth by exploiting its hydropower and tourism areas. We already see many gains that the country has made since the economic reforms, the country now acquire latest technology and state of art equipments in its industrial areas, to maximize the production and this is the reason that agriculture production in the country has increased by 5 percent during the last three years.

The government has provided electricity to the remote areas in Nepal, the standard of living has also increased, there was no TV, Internet and cellular phone service in Nepal and it was only 1997 that gradually all these technology was available in Nepal. Companies in Nepal now compete in the Global Market and although the facilities are not the same the government is fast building the infrastructure to provide cheap and efficient technology. Though most of the technology that the Nepalese businessmen using are outdated, the government is emphasizing on the new technology as well taking steps to produce skill professionals to enable the country to compete in the global market [Peter, 2003].

Globalization and economic liberalization has brought many opportunities and challenges not only to the local businessmen but also for average Nepalese. Old traditional business and culture of Nepal face collapse whereas the new ones have the capacity to be competitive. As an optimist one can believe that new breed of Nepalese will emerge and will the save the nation from the collapse of the traditional system while also encourages the new competition and the use of technology. The government and politicians need to support and facilitate the emergence of new potential ventures in the country. These ventures need to be competitive not by Nepalese and South Asian standards, but must be measured by the global yardstick [Author Unknown, 2001].

Sources:

The CIA World Fact Book, Nepal, 2002

http://www.cia.gov/cia/publications/factbook/geos/np.html

Author Unknown, Effects of Globalization on Business in Nepal, 2001

http://www.panasia.org.sg/nepalnet/economics/effects.htm

Peter Rojas, Lost Kingdom, 2003

http://www.thealarmclock.com/online/cfContent/00_07_03/nepal.html