We are delighted to give credit where credit is due. US ambassador DeLisi points his finger to a, rather THE, malaise of Nepal, apart from the dependence on foreign aid of course: the REMITTANCE industry of Nepal.
In an article ‘Remittance will devastate Nepali economy in the long run, says US ambassador‘ he argues that it “has been an important component of the country’s economy, will cause devastation on Nepali economy in the long run.” This remittances are the reason behind the most idiotic real state prices on earth in the Kathmandu valley. And this is clearly a bubble that will pop and along with it some exposed banks. ”In Nepal today, remittance flows are fueling increased consumption but by all indicators, are not being channeled into productive investment. Nepal’s competitiveness and productivity continue to decline over the long term”.
Able young people leave the country, add to GDP in foreign countries, send back money which ultimately gets invested in some form of real estate. This while the carpet industry, the pashmina industry runs dry and any form of productive industry is being neglected.
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