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Fast Urbanization In Nepal An Economic Boon
By KTM Metro Reporter
May 9, 2012: the World Bank (WB) study report titled, ‘NEPAL: Urban Growth and Spatial Transition: An Initial Assessment’ made public in Kathmandu has revealed that Nepal has been urbanizing fast, and has contributed to alleviate poverty in the country.
According to the report, urban centers produce 65% Gross Domestic Product (GDP) today whereas they produced only 29% in 1975. Nepalis living below the poverty line has reduced from 22% in 1995 to 15% in 2010 because of the fast urbanization according to the report. The urban population has grown at an average rate of 5% since the 1970s; consequently 20% of Nepalis lives in the urban centers today.
Urban economist at the World Bank Elisa Muzzini led the study, has said that Nepal's urban centers, particularly in the Kathmandu Valley, are already facing serious challenge of inadequate infrastructure, haphazard planning and poor business environment. For example, access of households to piped water supply in urban Nepal has declined from 68% in 2003 to 58% in 2010. The Kathmandu Valley suffers from unplanned construction, and infrastructure bottlenecks that will adversely hit the city's productivity in the coming years.
The metropolitan offices and the government have done little to manage the new expansion of the city; consequently, the Kathmandu Valley has received only $6 worth of per capita investment in infrastructures much less in the sub-metros and municipalities in the country. As a result, the valley has lost its comparative advantages in areas such as cultural tourism, handicrafts and agro-processing units.
The unmanaged urbanizing could also lead other fast growing urban centers to the similar situation, the World Bank economist said and urged the government to give immediate priority to urban planning and development.
"It is always easy and cost effective to address these issues while urbanization has just started. Once the urban centers grow into full-blown unplanned congested cities, it will be pretty difficult and costly to bring in efficiency in them," said Muzzini.
