Nepali workers sent home USD 13.26 billion in ten months, yet the economy saved less than ten cents of every dollar it produced. Most of it went into spending, not investment. Economists described this as a poverty trap in 1953. Whether Nepal’s institutions can finally break free from it is still unanswered.
To improve productivity, we need to make conducive policies and plans to nurture businesses by identifying gaps in the value chains and provide support to fill those. It is only through these interventions that the country will be able to create a business environment that helps develop entrepreneurs and profitable businesses.