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Trade liberalization and food security in Nepal

Author

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  • Pyakuryal, Bishwambher
  • Roy, Devesh
  • Thapa, Y.B.

Abstract

Among South Asian countries, Nepal liberalized most extensively during the 1980s and 1990s on both domestic and external fronts. In South Asia, Nepal has the lowest per capita income, highest dependence of population on agriculture and second highest poverty rate. At the same time, Nepal has the lowest average tariffs in South Asia and has taken several steps to downsize its public food distribution system and remove a host of agricultural subsidies. The outcomes from these policy reforms in Nepal are mixed. Aggregate indicators of food sufficiency and security (per capita food availability, extent of malnourishment) show improvement in Nepal since liberalization. Relative to other South Asian countries, Nepal is doing better on some indicators, like extent of undernourished population, while on other indicators, like stunting of children, Nepal is actually doing the worst. More importantly, the gains from liberalization across regions in Nepal have been uneven. The reason for such an uneven outcome is lack of complementary policies from the government that would lead to spatial integration of markets (e.g. the creation of physical and marketing infrastructure). Liberalization has in effect reinforced the ex-ante hierarchy across regions in Nepal. The paper then reviews the role and reform of the Nepal Food Corporation (NFC) within this broader context.

Suggested Citation

  • Pyakuryal, Bishwambher & Roy, Devesh & Thapa, Y.B., 2010. "Trade liberalization and food security in Nepal," Food Policy, Elsevier, vol. 35(1), pages 20-31, February.
  • Handle: RePEc:eee:jfpoli:v:35:y:2010:i:1:p:20-31
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    1. de Janvry, Alain & Sadoulet, Elisabeth & Fargeix, Andre, 1991. "Politically feasible and equitable adjustment: Some alternatives for ecuador," World Development, Elsevier, vol. 19(11), pages 1577-1594, November.
    2. John Cockburn, 2002. "Trade Liberalisation and Poverty in Nepal: A Computable General Equilibrium Micro Simulation Analysis," CSAE Working Paper Series 2002-11, Centre for the Study of African Economies, University of Oxford.
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    5. World Bank, 2003. "Nepal : Trade and Competitiveness Study," World Bank Other Operational Studies 14417, The World Bank.
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    Citations

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    Cited by:

    1. Magrini, Emiliano & Montalbano, Pierluigi & Nenci, Silvia & Salvatici, Luca, 2014. "Agricultural trade distortions during recent international price spikes: what implications for food security?," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182726, European Association of Agricultural Economists.
    2. Rutten, Martine & Shutes, Lindsay & Meijerink, Gerdien, 2013. "Sit down at the ball game: How trade barriers make the world less food secure," Food Policy, Elsevier, vol. 38(C), pages 1-10.
    3. repec:eee:jfpoli:v:69:y:2017:i:c:p:218-230 is not listed on IDEAS
    4. Pullabhotla, Hemant & Shreedhar, Ganga & Ganesh-Kumar, A. & Gulati, Ashok, 2011. "A review of input and output policies for cereals production in Nepal:," IFPRI discussion papers 1114, International Food Policy Research Institute (IFPRI).
    5. repec:spr:ssefpa:v:9:y:2017:i:4:d:10.1007_s12571-017-0705-z is not listed on IDEAS
    6. Sanogo, Issa, 1. "Spatial Integration of the Rice Market: Empirical Evidence from Mid-west and Far-west Nepal, and the Nepalese-Indian Border," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 3(1).
    7. repec:oup:ajagec:v:99:y:2017:i:4:p:847-871. is not listed on IDEAS
    8. Byeong-il, Ahn & Younghyeon, Jeon, 2016. "Does tariff reduction have a positive effect on the world’s grain self-sufficiency?," 2016 Annual Meeting, July 31-August 2, 2016, Boston, Massachusetts 235578, Agricultural and Applied Economics Association.
    9. Regmi, Madhav & Paudel, Krishna P. & Williams, Deborah, 2014. "Migration and Remittance and Their Impacts on Food Security in Nepal," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162503, Southern Agricultural Economics Association.

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