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A Connectivity-Driven Development Strategy for Nepal: From a Landlocked to a Land-Linked State

Author

Listed:
  • Pradumna B. Rana

    (Asian Development Bank Institute)

  • Binod Karmacharya

    (Asian Development Bank Institute)

Abstract

Nepal's lackluster economic performance during the post-conflict period (that is, after November 2006) has been driven by remittances from the export of labor services and the improved performance of the agricultural sector, which is still very much weather dependent. The authors make the case for a connectivity-driven development strategy for the country. They argue that improved connectivity within Nepal and cross-border connectivity with its neighbors in South Asia, the Association of Southeast Asian Nations (ASEAN), and the People's Republic of China (PRC) that are converting Nepal from a landlocked into a land-linked state, could be important "engines of growth" for the country. It is argued that such a development strategy is not a new one for Nepal as in the past the country was strategically located on the Southwestern Silk Road (SSR). A number of factors have revived the case for making Nepal a land-linked state in Asia. Nepal has adopted a multi-track approach to promoting regional cooperation and integration in connectivity with its neighbors. But a lot more needs to be done, especially in the context of the difficult political situation in the country, and donors have an important role to play in this regard. Ten priority projects to convert Nepal into a land-linked state are identified, but a detailed impact analysis of these projects is beyond the scope of this paper.

Suggested Citation

  • Pradumna B. Rana & Binod Karmacharya, 2014. "A Connectivity-Driven Development Strategy for Nepal: From a Landlocked to a Land-Linked State," ADBI Working Papers 498, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0498
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    File URL: http://www.adbi.org/files/2014.09.08.wp498.connectivity.dev.strategy.nepal.pdf
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    References listed on IDEAS

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    1. International Finance Corporation & World Bank, 2013. "Doing Business 2013 : Smarter Regulations for Small and Medium-Size Enterprises [Regulaciones inteligentes para las pequeñas y medianas empresas : resumen ejecutivo (Vol. 2)]," World Bank Publications - Books, The World Bank Group, number 11857, October.
    2. Biswa Nath Bhattacharyay & Masahiro Kawai & Rajat M. Nag (ed.), 2012. "Infrastructure for Asian Connectivity," Books, Edward Elgar Publishing, number 14819.
    3. repec:wbk:wboper:13331 is not listed on IDEAS
    4. Graham Smith & Jean-François Arvis & Christopher Willoughby & Robin Carruthers, 2011. "Connecting Landlocked Developing Countries to Markets : Trade Corridors in the 21st Century," World Bank Publications - Books, The World Bank Group, number 2286, October.
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    Cited by:

    1. Guler, Burak & Çelebi, Emre & Nathwani, Jatin, 2018. "A ‘Regional Energy Hub’ for achieving a low-carbon energy transition," Energy Policy, Elsevier, vol. 113(C), pages 376-385.

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    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration

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