Liquidation of Hetauda Textiles Factory
Finally, the Nepalese government has decided to liquidate a dead textile factory, which the Maoist government tried to revive believing that despite its utter lack of competitiveness, it could produce and supply textiles while creating artificial demand from the security agencies. It was populist and bad idea that only added deficits. Reversing the Maoist government´s policy, the government has decided to send Hetauda Textiles Factory (HTF) into liquidation, citing that the revival of the dead industry was not possible.

The promise of mobile phones

Will Nepal gain from the new India-Nepal trade treaty-II?
Paras Kharel looks beyond simple economic theoretical benefits from the revised trade treaty (2009) between Nepal and India. The devil in the trade deal is getting clear! What has also been overlooked by Nepal is the non-binding nature of the provision for waiver of additional duties other than that counterbalancing an excise duty. That India “shall consider” waiver at Nepal’s request does not make it mandatory for India to remove it. Our negotiators have been caught napping. And there is more to it. The possible waiver o

Lessons for developing countries from Finland’s state-led growth success
Finland is one of the examples of successful state-led development, where the state helped in capital accumulation (reflected in an "unusually" high investment rate) in manufacturing industries while at the same time committing itself to upholding the market economy. With this it was able to smoothen coordination failures and informational externalities, thus aiding the process of specialization and production. In a research paper No. 2009/35 (The Finnish Development State and its Growth Regime), authors Markus Jantti and Juhana Vartiainen argue that the state acted as a net saver, and credit was rationed to productive investment outlays. They also argue that in

Does aid aid growth?
This Discussion Paper No. 2009/05 from UNU-WIDER says that aid has a positive and statistically significant effect on growth over the long run. The micro-macro paradox has been revived. Despite broadly positive evaluations at the micro and meso-levels, recent literature has turned decidedly pessimistic with respect to the ability of foreign aid to foster economic growth. Policy implications, suc