Nepal: Selected Issues

IMF Staff Country Reports, May 4, 2023

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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
  • Nepal: Selected Issues; IMF Country Report No. 23/159; April 12, 2023 (Markdown version)
  • Nepal: Selected Issues; IMF Country Report No. 23/159; April 12, 2023 (PDF)