Yesterday attended a consultation program on Nepal Economic Growth Agenda (NEGA) 2012 organized by http://www.samriddhi.org/. It highly appreciable work and I found it a visionary step to advice government about growth agendas. I would like to add why growth agenda matters.
A simple approach to explain the importance of growth is the power of growth rate. Small difference in economic growth rates between countries can result in very different standards of living for their people in the long run. Thus, it necessary to think ab
out economic growth issues of Nepal.A growth rate of 3 percent per annum leads to a doubling of GDP within 24 years, whilst a growth rate of 8% per annum (say, China and India between 2000 and 2010) leads to a doubling of GDP within 10 years. This depicts the fact that how does a number matters. It also illustrates that how quality of life of people of Nepal is lagging behind people of India and China.
This is explained in the table of Power of Economic Growth Rate. Here is a hypothetical GDP of 1000 unit in 2010. It is calculated that how many years it require to double the GDP. The growth rate, 4 %, is the average economic growth rate of Nepal since 2001 to 2010.
