Nepal: Selected Issues
IMF Staff Country Reports, May 4, 2023
Source details
- Canonical URL
- Nepal: Selected Issues
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Bibliographic details
- Published: May 4, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400241413.002
Model and scope
- Utilizes a new macro-model capturing food insecurity, migration and trade in Nepal.
- Analyzes district-level differences in prevalence of food insecurity and the effects of climate shocks, persistent climate-change, and migration dynamics.
Key findings
- Low yields and remoteness explain a majority of the difference in prevalence of food insecurity across districts in Nepal.
- Both climate shocks and persistent climate-change increase food insecurity and disproportionately harm the most vulnerable.
- Lower wages in migrant destinations would reduce remittances, increase food insecurity and lower welfare.
- Persistent climate change will lower welfare, increase food insecurity, and increase migration.
- Agricultural productivity is identified as a key determinant of food security.
Quantified policy options and impacts
- The paper quantifies the impact of a number of policy options to address food insecurity and climate change, including:
- Cash transfers.
- Better infrastructure.
- Improved agricultural productivity.
Policy lessons and recommendations
- Given the central role of agricultural productivity for food security, Nepal can learn from other countries’ policies, including:
- Agricultural extension.
- Improved community water management techniques.
- Climate resilient agriculture in line with the National Adaptation Plan.
Source: Nepal: Selected Issues
Content in this bundle
- Nepal: Selected Issues; IMF Country Report No. 23/159; April 12, 2023