Nepal is a country at a crossroads. Nepal’s decade-long conflict formally ended in November 2006 and the country is now in transition from conflict to peace and from a monarchy to a republic. This moment in history creates welcome opportunities for a country that remains one of the poorest in South Asia, poorer than many Sub-Saharan African countries, with a GDP per capita of US$470 in 2009.

The next few years are critical as Nepal manages its transition while confronting long-standing development challenges at a time of global economic downturn. The International Development Association (IDA), the World Bank’s fund for the world’s poorest countries, supports Nepal at this delicate juncture. As of July 2009, IDA commitments in Nepal totaled US$872.4 million. IDA also manages seven recipient-executed trust funds with net commitments of US$30.81 million. Bank assistance will remain flexible in order to respond to opportunities as they arise.

Download 7-page brief:
Promoting Economic Growth - August 2009 (PDF)

"Nepalis have shown remarkable resilience throughout their history. Thus, this is a period not only of risk but also enormous opportunity," says Susan Goldmark, World Bank Country Director for Nepal. "While many of the transitions will not be completed in a two-year period, during this time the country can continue to establish a sound basis for peace and economic development."
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