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countries are acing si!ilar issues$ 't can be stated about these countries. econo!ies that
they ha&e the! all: territories ull o natural resources, sound inances, and steady
gro%th$ =et, they struggle %ith a !a;or issue in ter!s o hardcore inrastructure: 'ndia
currently has >0 !illion people %ho don,t ha&e access to utilities, being the %orld,s
third country to produce ra% !aterials or de&eloped countries$
1razil too is one o the %orld,s greatest producers o ra% !aterial and yet, it has one o
%orld.s poorest seaport syste!s$
China is a!ongst the leading country in internal !igration rates$ "illions o
country!en lea&e their land or the cities thus increasing the need or %ider
transportation and electricity co&erage@ Jietna!, 'ndonesia, 7urkey, South Arica, and
Colo!bia a!ongst others, ha&e signed trade agree!ents that a&or eDport trade %hile
acing poor in inrastructure in roads, oil, !ining %hich %ould allo% the! to eDpedite
and i!pro&e eDports and i!ports o traded goods
During the irst years o this decade, through a nu!ber o su!!its and conerences, the
international co!!unity agreed to &arious co!!it!ents geared to pro!ote global
socioecono!ic gro%th$ 'n 8000, it %as the "illenniu! Declaration %hich set the
"illenniu! De&eloping Coals 3"DC5$ 'n 800(, 27he 1russels 6rogra!. %as geared
to%ards de&eloping countries$ 7his progra! %as urther reiterated in the :orld Su!!it
on Sustainable De&elop!ent in 80084800?4800/, in %hich landlocked countries %ere
included$
't.s note%orthy !entioning that these su!!its ha&e set the eDa!ple on dra%ing goals
and progra!s regarding global de&elop!ent issues, despite the crisis$ <ut o these
progra!s, one o the !ost i!portant %as that %hich included principles o global
solidarity or those countries in need o it$
Such is the case o !y country, %hich aced a decade o %ar %age and %as let %ithout
inrastructure, ;ust as so !any Arican countries ha&e$ 'n spite o this, %e %elco!ed
oreign in&estors in the light o our country,s potential or natural resources &ersus a
lo% output$ 't is esti!ated that or 80(? Nepal %ill produce 8*000 : o electric energy
or its o&erall population as %ell as building roads, housing and disaster resistant
inrastructure per the signing o the +yoto 6rotocol and the "arco Con&ention$ 7his
%ill result in boosting touris! industry, increasing its capital or business as %ell as that
o its partners$
7HE S<L-7'<N
Such %as the ai! o the present delegation$ :e %anted to call upon the international
co!!unity to support us, de&eloping countries, gi&en that the greater the in&est!ent is,
the greater the proit$ Such is the case o -ruguay, a South A!erican country %here the
'nter A!erican De&elop!ent 1ank appro&ed an 90 !illion dollar credit or
inrastructure i!pro&e!ent, %hich has boosted touris! to places containing astonishing
natural beauty$ 7he country has !anaged to pay o 8?$/B o the loan, %hich it turns,
sho%s an i!pro&e!ent in the Euality o lie o the a&erage inhabitant o about 8/$0>B$
Healthcare and educational ser&ices are !ore accessible no%$
A## 'n&estors, leaded by "organ Asset "anage!ent, build roads connecting
indigenous co!!unities, hydraulic syste!s, schools and !edical acilities, obtaining up
to ?0$8B o&er the initial in&est!ent$ 'n China, Sie!ens sells goods or !anuacturing
actories eDperiencing considerably proit$
<nly e% cases ha&e been clear enough so as to depict to the international co!!unity
ho% to ;oin orces thus creating opportunities or all o the parties in&ol&ed
C<NCL-S'<N
As a conclusion, the international co!!unity can no longer be a !ere spectator %hile
!illions o people around the %orld continue to languish in po&erty and o&er%hel!ing
eDclusion$ 7here is a %ay out o po&erty and it is %ithin e&eryone,s reach pro&ided ;oint
action$ Nothing %ill be acco!plished %ithout an international rein&igorated political
%ill, increased resources, sustainable policies and progra!s in tande! %ith co!!itted
national leadership$ 7ogether %e can !ake this happen$ 7his is truly the lesson %e ha&e
learnt ro! all the su!!its and conerences
#EIE#ENCES
http:K%%%$un$intK%c!KcontentKsiteKNepalKcacheKoonceKpidK?)(>@;sessionidLA/0c
Europa$euKlegislationMsu!!ariesKde&elop!entKsectoralMde&elop!entMpoliciesKr(?0(?M
es$ht!
%%%$proeDport$co!$coKsitesKdeaultKiles
%%%$un$orgKenKde&elop!entKdesaKpolicyK%espMcurrentK80(?%espMesMsp$pd
ECOFIN
NEPALS POSITION PAPER
TOPIC B
Delegates: Sebastian Hernndez, Ernesto Lanos
Introduction: The income gap is the synthesis of many of the problems that
have the international community in the world, this issue is so important that
almost all issues are related in some way with it, for example the black market
that in Nepal is a viable solution to people that can`t maintain a good life with
the legal work, Nepal thinks that we must focus in the problems that affect
global income, like that the government is capable of give all people
opportunities, education, and the minimum to life because when a government
can`t do this the people that cannot life without a help, for necessity try to gain
money by the illegal road and this lead to corruption, black market grow,
violence, inequality, and that more people is involve in illegal obs are not
helping the country with the work, they help themselves and harm the country
not ust economically, so the international community and each country has to
implement several and hard regulations to these problems, this is an issue that
has affected the world many time and is our ob to make that it stops, or to
reduce to the minimum!
"elated #istory $ statistics
Nepal oined with %sian developing countries are developing a regional
economic cooperation since the &'() promoted by the *nited Nations
+conomic and ,ocial -ommission for %sia and the .acific /*N+,-%.0! This
cooperation includes the 1angkok %greement established in &'(2 which
covered reciprocal tariff concessions between five member ,tates, India,
1angladesh, 3ao .eople4s 5emocratic "epublic /.5"0, ,ri 3anka and "epublic
of 6orea, -hina oined the 1angkok agreement in 7))), and the %sian union
with ( members including 6ingdom of Nepal start in the &'(8!
The Nepal government4s policy of actively seeking private sector investment
since the &)th 9ive:;ear 5evelopment .lan have not reach et significant
advances, -ivil war<conflict and deterioration in governance delayed some key
development proects or initiatives including the hydropower, as private sector
investments!
i
Nepal to stayed behind in economic development in comparison with the others
south %sian economies, Nepal4s per capita gross domestic product /=5.0
remains the lowest in the region! In 7))(, the per capita =5. in 7))) prices
was estimated at >78? compared with >8?' for 1angladesh, >@@) for .akistan,
>@A@ for India, >&,&88 for ,ri 3anka, >&,7(( for 1hutan, and >?,@@A for
Baldives! ,peaking In terms of =5., Nepal is where ,ri 3anka was in &'@),
.akistan was in &'(), India and 1hutan were in &'A)! The reforms during &'')
to 7))), Cn the poverty front, remittance flows and investments in rural
infrastructure have helped reduce poverty incidence from 87D in &''2<'@ to
about ?&D in 7))?<)8! #owever poverty is still an obstacle for Nepal to develop!
%lso the inequality is a big concern, according to the =ini:coefficient, inequality
has increased from )!?8 in &''@ to )!8& in 7))8 and today with )!8(, This
numbers are the results for the big conflicts that has the country including the
civil war in &''@! %lthough =5. registered an impressive 2!@D growth in
7))(<)A compared with ?!)D in 7))@<)(, the grow was for the increased in the
main agricultural crops and to a rise in tourism! %lthough the total investment
rate is reportedly high, this may be misleading as part of the rate is estimated as
the residual value to balance the income and expenditure account and is prone
to estimation errors and statistical discrepancies! The fixed investment rate
/gross fixed capital formation0, estimated using the materials<inputs approach
backed by surveys, is arguably a better indicator to gauge investment levels!
ii
%lso Nepal`s investment levels are the lowest in south %sia, including the fixed
investment, the private sector investments remain low in infrastructure
development and agriculture, this increased the problem of how to grow
economically, and how to reduce the poverty! The weak governance and slow
recovery from -ivil Ear had lead to policy instability insecurity, political and
criminal extortion from private business, corruption, strikes and road blocks, and
trade union militancy, including competitive militancy among trade unions with
different political affiliations for the different political parties that had fight for
power many time, at first private sector that was making proects find difficult to
work because of the strikes in roads, interruption in supplies of products,
violence that lead to the need to pay protection money to political or to criminal
networks!
,tatistics
The most drastic indicator in Nepal was the political stability indicator, where
Nepal`s rank dropped from 7@!' /&''@0 to 7!' /7))(0, also during the same
period of time the rank for voice and accountability dropped from 8@!8 to 77!@,
rule of law from 2&!8 to ?&!), government effectiveness from ?@!) to 7&!A, and
control of corruption from 88!7 to ?)!8!
5espite its tourism and energy:production potential, Nepal remains one of the
worldFs poorest countries! The per capita income for 7))(<7))A was ust >8()
*,! Cver &<? of Nepalis live below the poverty lineG in 7))8, the unemployment
rate was a shocking 87D! %griculture employs more than (2D of the population,
and produces ?AD of =5.! The primary crops are rice, wheat, maiHe, and
sugarcane! Nepal exports garments, carpets, and hydroelectric power! The civil
war between Baoist rebels and the government, which began in &''@ and
ended in 7))(, severely reduced NepalFs tourism industry!
iii
.roblem for the international community
The world economy development since mid II century has been protagonised
for an increase concentration of wealth and with this a great increase of poverty,
this comes when we see the income of the poor and wealth countries that also
are not capable of sustain a balanced distribution of the economic growth!
9or example the *nited ,tates of %merica that is a model to follow in the world,
has also poverty and income gap, in &''' reduce his poverty from &AD before
to &)D that is 7( million people, but then fall down again, and with the
presidency of 1ill -linton the country could growth his wealth until he ensure a
superavit of the economy, but after his leadership, the new president =eorge
1ush and the coming wars in the middle east like Iraq came into consequences,
the superavit turn into a deficit, one of the economic power of the world has a
income gap in his economy, and now still the president 1arrack Cbama is trying
not to resolve the problem, he tries to slow the crisis, and the losses affect the
people, if the country lost economic power, the distribution of wealth will be less
and the way of live of the people will be affected, so the poverty will increase,
for this a common discussion in the ,tates is if the richest have to pay more
taxes!
The ,tate must work as a regulator to the effects, achieve a maor equitable
distribution of the wealth of the country, directed to the maor possible number
of persons, because of it, a tax suitable politics should adapt the levels of
income between those of maor revenue, respect of the most postponed
sectors, which they find under the level of minimal revenue, this is, the minimum
wage necessary for a life in the country!
*ntil now as always the prices of products rises as a elevator and the salaries
go for the stairs, this problems of the economy increase and our tries to resolve
are not enough, also the external factors as corruption, conflicts, external and
internal with the inequality in every country that is very concern, the few have
everything and the maority live with the rest as they can, the corruption that is
the center of the sub problems affect occasionally the public institutions for the
benefit of the private, the individual, the interest of one that corrupt the public
sector focus in this particular interest, the real obectives are affected and like
magic the people pays for the evil of the few, this includes our personal in the
institutions and to make this stop implies to focus an institution to resolve the
problem directly and indeed this particular institutions need resources without
mention that it can be corrupt so the illegal movements don`t have limits, if they
can played someone will accept a price at the end!
9or worst corruption can work in many sector and in many ways, the bribes is
the principal tool of the corruption, because the limit is money, and money is a
factor in which illegal frameworks are always counting with, there are many, the
=overnment contracts in which it can influence the government`s decisions
about supply goods, services, and works changing the terms of their contracts!
The government benefits in which the benefits of the government are given to
the illegal framework, or to a particular type of individual like to the richest that
look benefits for its company, like an authoriHation to contaminate and make the
growing of the company easier! %lso use the brides to reduce taxes, or avoid
them, also to have a license for an exclusive right or for a particular reason, and
the last in brides is the 3egal outcomes in which 1ribes can change the
outcome of the legal process as it applies to private parties, by inducing the
government either to ignore illegal activities and giving this illegal processes be
almost free and make more damage to the society!
%s brides is the principal tool of corruption, corruption attacks many sectors, the
first is the .olitical and bureaucratic corruption which involves election laws,
campaign finance regulations, and conflict of interest rules for parliamentarians,
the next sector is Isolated and systemic corruption in which non:corrupt
behavior is the norm, and institutions in both the public and private sectors
support integrity in public life! ,uch institutions, both formal and informal, are
sufficiently strong to return the system to a non:corrupt equilibrium! The last one
is the -orruption in the private sector!
iv
The now Illicit 9inancial 9lows, like corruption, bribery, theft and tax evasion,
cost developing countries *, >&!7@ trillion per year, which is equivalent to the
economies of ,witHerland, ,outh %frica and 1elgium oined, this represents &!8
billion people living on less than >&!72 a day above this threshold for at least six
years which leads to a secondary problem very important, the inequality, also
the bad distribution of wealth, Cver &7 months, one in four people paid a bribe
when they came into contact with one of nine institutions and services, from
health to education to tax authorities! /,ource: Transparency International, =-1
/7)&)0, surveying '&,2)) people across A@ countries0
%nd now Nearly three quarters of the &(A countries in the -orruption
.erceptions Index score below five, on a scale from &) /highly clean0 to )
/highly corrupt0, suggesting a perception of widespread corruption among public
officials!
v
=lobal poverty is concentrated in ,outh %sia, where half of the worldFs poor live!
%nother quarter live in sub:,aharan %frica, while one quarter live in +ast %sia,
mainly -hina! Eorld inequality between households has increased, the income
of the richest &D is the same as the income of the poorest @)D in the world %nd
the all the gains in world income in the middle of the last decade went to the
richest 7)D
vi
, so one and most concerning problems is this, but take a look the
problem here is not the lack of money is the wrong distribution in the world, it
could be a equity in people, eliminating one problem of the income, both
corruption and wrong distribution are consequences, and affect the income gap!
To solve this concern, we must first concentrate in solve corruption, poverty, and
important the distribution of wealth in each country, including the developed,
economically focus to develop in the economy sectors for the undeveloped
countries, for a grow in the economy making benefits for the people, also
making impossible the monopolies and the exclusive benefit of the private
sector, at least the multinational countries, and last the wealth is concentrated in
wealthy families, that conserve money making hard to have opportunities for the
poor, making hard to develop if you are not rich, the rich everyday are more rich
and the poor more poor, this also happens between countries of north and
south, giving no chance to a poor country to have a superavit ust to increase
the deficit!
0iblio+rap.y
i
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ii
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iii
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iv
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v
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vi
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