Experts discuss human development impact of garment exports' decline

Experts discussed the serious human development impact of the decline in the exports of readymade garments.

At a programme organised, Friday, by South Asia Watch on Trade, Economics and Environment (SAWTEE), study reports were presented describing the impact of lack of export diversification both in terms of product and destination.

According to the study report on Human Development Impact Assessment in the Post ATC (Agreement on Textile and Clothing) Period, the phasing out of quota system under the Multi Fibre Agreement (MFA) has led to a serous decline in Nepal's RMG exports.

"Out of the 115 units of garment manufacturers in 2000/01, only about 26 are now in operation. Employment in RMG industry has declined proportionally; from 50,000 to less than 5000 in July, 2006," the report said, adding, "A continuous decline in the sector poses many socioeconomic challenges, ranging from macroeconomic imbalance to human development concerns for Nepal."

Likewise, SAWTEE also completed its study on Export Diversification Strategy for Nepal in which it has pointed out five export potentials including tea, herbs, leather, tourism and information and communication technology.

Furthermore, the SAWTEE also presented its report on Industrial and Trade Policy Environment and Trade Negotiation Strategy for Nepal.

Speaking at the programme, Dr. Posh Raj Pandey, member of National Planning Commission (NPC), said that the country was at the crossroads not only in political but also in economic terms.

Ratnakar Adhikari, executive chairman of SAWTEE, informed about the study project. He said the study was undertaken with the support of UNDP Regional Centre in Colombo. He said similar studies have been carried out, separately, in Bangladesh, Cambodia, Laos and Nepal. nepalnews.com sd Aug 10 07