Earthquake May Derail Nepal Becoming Developing Nation By 2022

By Yuba Nath Lamsal KATHMANDU, May 20 (Bernama) -- Nepal’s target to graduate from the status of least developed countries (LDC) and join the club of developing nations by 2022, is likely to hit a snag due to the devastation by the country's worst earthquake thus far, last month. The April 25 temblor killed over 8,600 people and damaged property worth billions of dollars (Malaysian Ringgit). As the earthquake destroyed major resources, priority areas for investment would be shifted to reconstruction of the damaged buildings and other structures. This would have a serious impact on Nepal’s ambitious but feasible goal of graduating from the LDC status, noted Nepal's Foreign Minister, Mahendra Bahadur Pandey at an impromptu press briefing in his office Tuesday. "The April 25 earthquake has not only destroyed our homes and roads, it also destroyed our long-term planning and goal for development. “Now, our focus and priorities have been shifted and all our planning will be changed,” he said. Nepal had set the goal of joining the club of developing countries by graduating from the status of LDC by 2022. All the indications and variables had supported Nepal’s goal, but this ambition had now been shattered, said Pandey, vowing however, that the country would try to meet the target as quickly as possible, and come up with a new plan soon. He also appealed to the international community and donors to extend assistance meant for earthquake victims through the government, instead of channelling the funds via non-governmental organisations. Next month, Nepal will organise an international conference of donors in Kathmandu to seek more funds for reconstruction of damaged structures, he said. Economists have said that the earthquake inflicted such devastation on Nepal’s infrastructures that it seriously impacts the national economy, requiring more international commitment for development. South Asia Watch on Trade, Economics and Environment executive chairman Posh Raj Pandey said while macroeconomic fundamentals would also suffer, "Nepal will now heavily depend on foreign funds as internal resources will diminish.” According to the finance ministry, the earthquake caused the government revenue to dry up. -- BERNAMA