Ministry of Commerce And Supplies - Enhanced Integrated ...
Ministry of Commerce And Supplies - Enhanced Integrated ... Ministry of Commerce And Supplies - Enhanced Integrated ...
N T I S2010locations favourable for study. The physical environment of Nepal’s hill region is similar to that of Darjeelingand Deharadun, the traditional education service hubs of India. 6 The low cost of living is also a major positivefactor, including for foreign students coming from well-to-do families. Also, clear investment regulations andsimple cross-border provisions create a favourable environment for such export. In sum, a pleasant physicalenvironment, the low cost of living, possible cultural and religious affinity, clear investment regulations, andsimple cross-border provisions create a positive environment for educational service export.The greatest potential of export is in the sectors of religious studies and medical and technical studies. Nepalhas been witnessing substantial inflows of religious learners and devotees from India and Tibet to studyHinduism and Buddhism since ancient times. 7 In the medical and technical fields, quotas established byuniversities in Nepal (specifically, one-fifth of the total student intake) are filled to capacity. In short, it is clearthat Nepal has an opportunity to create a market niche in this sector.Barriers to Education ExportNepal remains a net importer of education services with a significant trade deficit. To turn this around,significant changes are required. The barriers to export of education services are as follows:Quality Barriers Low quality of education is one of the major impediments to enhancing education exports. The qualityof Nepalese education is below world standards. In an educational index produced by the World Bank(2007), Nepal scored 1.60, lower than South Asia (2.1) and Western Europe (8.09); 8 Language is one of the leading non-technical barriers to education trade. 9 Although the eighthamendment to the NEA (2001) stipulates that teaching should be conducted in English at all educationallevels and by all faculties, except for language courses, this provision is only followed nominally;Market Development Barriers The amount of marketing used to promote and create awareness for Nepal’s educational servicesis minimal. SAWTEE (2008) shows that around 70 per cent of the foreign student inflow is throughpersonal contacts. Foreign diplomatic missions contribute little towards informing foreign studentsabout the education services available in Nepal. Many of these diplomatic missions do not even havean education counselling section.Institutional and Infrastructural Barriers The high degree of political interference, particularly in public institutions, creates a negativeenvironment for education service export. This discourages many investors and students and makesNepal’s education less marketable;6Khaniya (2007) New Horizons in Education in Nepal. Kathmandu. Requoted from SAWTEE (2008).7Regmi (1971). A Study in Nepali Economic History. New Delhi: Manjusri Publishing, Requoted from SAWTEE (2008).8World Bank (2007) South Asia Growth and Regional Integration. Washington, D.C.: The World Bank.9Knight (2002), Trade in High Education Services: The Implications of GATS. United Kingdom: The Observatory, Requoted fromSAWTEE (2008).NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT221
N T I S2010 Nepalese educational institutions lack sufficient infrastructure. They lack well-maintained lecture halls,laboratories, libraries, dormitories, and information centres. Among the five education sectors identified by the WTO (primary education, secondary education,higher education, adult education, and other education), Nepal has made commitment under GATSto liberalize trade in the latter three. However, there is poor implementation of this commitment sothat the cost of doing business in this sector remains high. According to Karmacharya and Maskay, thefailure to liberalize FDI and the high incidence of corruption are primary causes of decreasing foreigninvestment in this sector. 10Health ServicesThere are many variables to consider in analysing Nepal’s export potential in health services. Still, the specificsof the country’s national healthcare system, regulatory environment, and government policies are mostimportant.As indicated in the SAWTEE 2008 study cited earlier, export of health services via Mode 2 remains the dominanttype of exports (foreign patients travelling to a Nepalese medical institution for treatment).Environment for Nepalese Export of Health ServicesWhile international trade in health services in Nepal is limited, particularly when compared to other tradeservices, the accession to the WTO and the ensuing commitments in the health sector have led to a gradualincrease in export of health services. 11From a policy perspective, Nepal’s accession to the WTO and its commitment to liberalize trade in healthservices have created opportunities for health service export. There are no major specific limitations in thissub-sector, except in market access in Mode 3, where foreign services providers must be incorporated inNepal with a maximum foreign equity capital of 51 per cent.Nepal’s TYIP recognizes the potential for health service trade and incorporates strategies like establishing,promoting, and expanding telemedicine, developing and expanding ayurvedic and other alternative healthservice systems, providing computers and internet access to facilitate telemedicine, collecting informationregarding herbs and intellectual property, and enhancing research activities. However, no concrete strategieshave been identified to promote such developments.From a trade perspective, a good physical environment, the lower cost of human resources, the lower costof living, and the provision of ayurvedic practices are the major factors that make Nepal’s health servicesattractive. Furthermore, the liberal policies adopted by the GoN has encouraged the involvement of theprivate sector and enhanced the overall competitiveness of the sector.At present, however, Nepal remains a net importer of health services and, despite attractive policies, attractinginvestment in the health services sector remains a challenge. 1210Karmacharya, Binod Kumar and Nephil Matangi Maskay. 2006. Economic Cooperation between East Asia and South Asia: Nepal Country Study.Report Submitted to ADB.11NRB (2005) Nepal’s WTO Service Sector Commitments and Its Impact on Balance of Payment Situation. Kathmandu: Nepal Rastra Bank.,quoted from SAWTEE (2008).222NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT
- Page 183 and 184: N T I S2010Figure 7.1Future Organog
- Page 185 and 186: N T I S2010EU countries, special pr
- Page 187 and 188: N T I S2010Act 1980. So far, 130 fi
- Page 189 and 190: N T I S2010The current projects inc
- Page 191 and 192: N T I S2010The NBSM as a secretaria
- Page 193 and 194: N T I S2010Many more organizations
- Page 195 and 196: N T I S2010Table 7.8Existing Nepal
- Page 197 and 198: Table 7.9Standards Issues for Ten E
- Page 199 and 200: N T I S20107.14 Priority Actions an
- Page 201 and 202: N T I S2010It is not clear what amo
- Page 203 and 204: N T I S2010GeneralNepal’s general
- Page 205 and 206: N T I S2010a crucial part of the PR
- Page 207 and 208: N T I S2010residue limits (MRLs) ar
- Page 209 and 210: N T I S2010The viral diseases chirk
- Page 211 and 212: N T I S2010SPS issues Affecting Tra
- Page 213 and 214: N T I S2010Indian phytosanitary sta
- Page 215 and 216: N T I S20108.5 Conclusions and Reco
- Page 217 and 218: N T I S2010Simpler requirements suc
- Page 219 and 220: Table 8.4Summary of Export Environm
- Page 221 and 222: N T I S2010To register a patent, a
- Page 223 and 224: N T I S2010breaches of law. The Nep
- Page 225 and 226: N T I S2010Intellectual Property is
- Page 228 and 229: Chapter 10Barriers to Service Trade
- Page 230 and 231: N T I S2010Constraints in the touri
- Page 232 and 233: N T I S2010Table 10.2Nepal GATS Com
- Page 236 and 237: N T I S2010Barriers to Exports of H
- Page 238: N T I S2010Institutional IssueThe s
- Page 241 and 242: N T I S2010 Strengthening sub-natio
- Page 243 and 244: N T I S2010Observations from enterp
- Page 245 and 246: N T I S2010Nepal Ginger Producers a
- Page 247 and 248: N T I S2010 Helping paper manufactu
- Page 249 and 250: N T I S2010Computer Association of
- Page 251 and 252: N T I S20105. Also related to the a
- Page 253 and 254: N T I S2010The key principles inclu
- Page 255 and 256: N T I S2010That being said, Nepal h
- Page 257 and 258: N T I S2010Nepal Business ForumOn M
- Page 259 and 260: N T I S2010Third, capacity developm
- Page 261 and 262: N T I S2010expected to emerge from
- Page 263 and 264: N T I S201012.7 Possible Options fo
- Page 265 and 266: N T I S201012.8 RecommendationsThe
- Page 267 and 268: N T I S2010GoN / MoF (2009), Econom
- Page 269 and 270: N T I S2010Thapa, Ajit N.S. (2006).
- Page 272 and 273: N T I S2010NEPAL TRADE INTEGRATION
- Page 274 and 275: N T I S2010MainOutcomes Recommended
- Page 276 and 277: N T I S2010MainOutcomes Recommended
- Page 278 and 279: N T I S2010MainOutcomes Recommended
- Page 280: N T I S2010NEPAL TRADE INTEGRATION
- Page 283 and 284: N T I S20102. GINGERStrengths Tradi
N T I S2010locations favourable for study. The physical environment <strong>of</strong> Nepal’s hill region is similar to that <strong>of</strong> Darjeelingand Deharadun, the traditional education service hubs <strong>of</strong> India. 6 The low cost <strong>of</strong> living is also a major positivefactor, including for foreign students coming from well-to-do families. Also, clear investment regulations andsimple cross-border provisions create a favourable environment for such export. In sum, a pleasant physicalenvironment, the low cost <strong>of</strong> living, possible cultural and religious affinity, clear investment regulations, andsimple cross-border provisions create a positive environment for educational service export.The greatest potential <strong>of</strong> export is in the sectors <strong>of</strong> religious studies and medical and technical studies. Nepalhas been witnessing substantial inflows <strong>of</strong> religious learners and devotees from India and Tibet to studyHinduism and Buddhism since ancient times. 7 In the medical and technical fields, quotas established byuniversities in Nepal (specifically, one-fifth <strong>of</strong> the total student intake) are filled to capacity. In short, it is clearthat Nepal has an opportunity to create a market niche in this sector.Barriers to Education ExportNepal remains a net importer <strong>of</strong> education services with a significant trade deficit. To turn this around,significant changes are required. The barriers to export <strong>of</strong> education services are as follows:Quality Barriers Low quality <strong>of</strong> education is one <strong>of</strong> the major impediments to enhancing education exports. The quality<strong>of</strong> Nepalese education is below world standards. In an educational index produced by the World Bank(2007), Nepal scored 1.60, lower than South Asia (2.1) and Western Europe (8.09); 8 Language is one <strong>of</strong> the leading non-technical barriers to education trade. 9 Although the eighthamendment to the NEA (2001) stipulates that teaching should be conducted in English at all educationallevels and by all faculties, except for language courses, this provision is only followed nominally;Market Development Barriers The amount <strong>of</strong> marketing used to promote and create awareness for Nepal’s educational servicesis minimal. SAWTEE (2008) shows that around 70 per cent <strong>of</strong> the foreign student inflow is throughpersonal contacts. Foreign diplomatic missions contribute little towards informing foreign studentsabout the education services available in Nepal. Many <strong>of</strong> these diplomatic missions do not even havean education counselling section.Institutional and Infrastructural Barriers The high degree <strong>of</strong> political interference, particularly in public institutions, creates a negativeenvironment for education service export. This discourages many investors and students and makesNepal’s education less marketable;6Khaniya (2007) New Horizons in Education in Nepal. Kathmandu. Requoted from SAWTEE (2008).7Regmi (1971). A Study in Nepali Economic History. New Delhi: Manjusri Publishing, Requoted from SAWTEE (2008).8World Bank (2007) South Asia Growth and Regional Integration. Washington, D.C.: The World Bank.9Knight (2002), Trade in High Education Services: The Implications <strong>of</strong> GATS. United Kingdom: The Observatory, Requoted fromSAWTEE (2008).NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT221
Change language