This article explores how Nobel Prize–winning economic ideas, particularly on innovation, creative destruction, and inclusive institutions, provide valuable insights for Nepal’s economic development and policy-making in a rapidly changing global economy.
Despite decades of goodwill, Nepal-Bangladesh trade remains far below its potential, but strategic cooperation in power, connectivity, and investment could transform their partnership into a model of regional integration.
The historic power flow of 40 MW hydroelectricity from Nepal to Bangladesh via the Indian grid has opened a new chapter in our economic partnership — a symbolic beginning with the potential to promote hydropower cooperation as the centerpiece of our bilateral relations.
Rather than pursuing a Preferential Trade Agreement (PTA), Bangladesh and Nepal would derive greater advantages from establishing a Comprehensive Economic Partnership Agreement (CEPA).
Nepal’s development story has long been shaped by external financing through both foreign aid and foreign direct investment (FDI). Yet, as Nepal prepares to graduate from the Least Developed Country (LDC) status in 2026, the question of how the country can sustain growth beyond concessional aid has become increasingly relevant.
As Nepal is highly reliant on external sources of finance for its socio-economic development, with personal remittance inflows consistently exceeding 25% of GDP, the country is experiencing a structural shift from an “agriculture-based subsistence economy” to a “remittance-based consumption economy”.