Nepal: Addressing the Employment Challenge through the Sectoral Pattern of Growth

The present report has been organized in the following manner. Section 2 presents the basic conceptual framework in terms of the relationship between growth of output and employment. Section 3 provides a brief account of the experience regarding economic growth and macroeconomic performance of the economy of Nepal. The nature and magnitude of the employment challenge in Nepal is described in empirical terms in Section 4. Section 5 provides an analysis of the justification for a sector-focused approach to growth and employment. The four subsequent sections (6 through 9) deal with the four selected sectors, viz., agriculture, manufacturing, infrastructure, and tourism. Section 10 presents an analysis of policies pursued by the government as well as reforms needed in policies.