Structural Changes and Economic Growth in Nepal

This paper analyzes the structural change and performance of the Nepalese economy over the period of 1965 to 2009, specially focusing on the impact of IMF and World Bank's structural adjustment program implemented since the mid-1980s based on the Washington consensus. The performance of Nepalese economy has not improved much after the implementation of a series of structural adjustment programs in conjunction with economic liberalization policy. Instead, poverty is widespread and per capital income is still low with widening income inequality. Rather, the Washington consensus helped expand social tension with rising unemployment and inequality dragging Nepal into a decade long internal con ict with poor and weakening governance system.