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Country Partnership Strategy in Agriculture and Forestry Sector with Nepal
Author Heo, Jang
Views 100463 Publication Date 2020.03.04
Original
Research Background
Belonging to the group of the least developed countries, Nepal is a fragile country after more than ten years’ civil war in both politics and the economy. Likewise, in other developing countries, agriculture plays the leading role in the national economy and society in Nepal; it takes a third of total GDP and two-thirds of total employment. People under the poverty line in rural areas are over twenty percent, implying the importance of its development.
It is required that Korean assistance increase effectiveness and efficiency in development cooperation to aid Nepal for its early recovery from civil war and a great earthquake, achieving sustainable economic, agricultural, and rural development.
This study has the purpose of analyzing the current situations of Nepalese agriculture and related public strategies and, based on it, to establish mid- to long-term development cooperation strategy in agriculture sector for Korean government.

Research Methodology
Domestic and international literature, including statistical databases, are the primary sources of information for the study. Visiting for interviews with experts and officials in Kathmandu of Nepal in May 2019 also provided critical information. Nepal Agricultural Research Council (NARC) contributed to a part of this study by implementing a value chain study of rice including other policy trends of India.

Findings
Agriculture takes a third of the GDP and two-thirds of employment in Nepal. Since 1996, Nepal had suffered from civil war, and, in 2015, a great earthquake hit the country, leaving it as one of the poorest countries in the world.
The growth rate of the agricultural sector is stagnating at the level of three percent. 255 million USD of agricultural products were exported in the 2017/2018 budget year, whereas about 1.38 billion USD of agricultural products had been imported. Paddy is the most important crop, occupying seven percent of total GDP and 19% of agricultural GDP. A large amount of rice is currently imported from abroad, including India, although, during 1970s, Nepal had been exporting rice.
Through the 「Agriculture Development Strategy 2015 to 2035」, the Nepalese government targets 2030 to achieve the status of a middle-income country, focusing upon four pillars of governance, productivity, profitability, and competitiveness. Korea, with 「Country Partnership Strategy」, adopts a rural income increase and balanced national development through agricultural value chain expansion as crucial areas of cooperation with Nepal.
Mid- to a long-term strategic objective for development cooperation in the agriculture sector is set as ‘food security and enhancement of agricultural income.’ Core pillars for cooperation are: organizational capacity strengthening for productivity enhancement, farm income increase through commercialization of principal crops, and food security through food crop supply. Cooperation needs to focus on agricultural R&D and extension system building, distribution system establishment, and food crop productivity improvement for Nepal.


Researchers: Heo Jang, Lee Mina
Research period: 2019. 1. ~ 2019. 12.
E-mail address: heojang@krei.re.kr

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