Nepal has stepped into a new journey as it qualified to graduate into a developing nation from a Least Developed Country (LDC) without meeting the per capita Gross National Income (GNI) criterion.&nbsp;

The United Nations Committee for Development Policy (UN CDP) recommended the graduation to the Himalayan Nation in its final evaluation on Friday.

Highlighting it as a 'unique case', Amrit Rai,&nbsp;Chief of the Permanent Mission of Nepal to the United Nations said,&nbsp;"As the first country to graduate from the LDC category without meeting the GNI criterion, Nepal's graduation will be a unique case. Yet, we are determined to make it as smooth and sustainable as possible."

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/supreme-court-has-no-right-to-appoint-pm-says-nepals-kp-sharma-oli-392180" hreflang="en">Supreme Court has no right to appoint PM, says Nepal's KP Sharma Oli</a>

Earlier, on June 09, the Chief of the Permanent Mission of Nepal had informed that the UN Economic and Social Council (ECOSOC) has given consent to present the proposal in the upcoming UNGA for endorsement.&nbsp;

"At its Management Segment, the ECOSOC endorsed CDP's recommendation for Nepal’s graduation from the LDC category. For Nepal, LDC graduation means an important stepping stone towards realizing national ambition of 'Prosperous Nepal, Happy Nepali", Rai had earlier said.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/nepal-former-pm-khanal-taken-to-delhis-apollo-hospital-issues-statement-391959" hreflang="en">Nepal former PM Khanal taken to Delhi’s Apollo Hospital, issues statement</a>

The recommendation was made in the triennial review of the&nbsp;United Nations Committee for Development Policy (CDP), held from February 22 to 26, 2021. This decision was made keeping in mind that Nepal had&nbsp;met the criteria for graduation for three consecutive reviews.

Nepal met two out of three thresholds to become eligible for graduation. The three indices considered by the CDP are&nbsp;GNI per capita, Human Assets Index (HAI), and Economic and Environmental Vulnerability Index (EVI).

"Nepal must seize the opportunity of LDC graduation to recover lost momentum on the Global Goals and make important strides forward in the Decade for Action. The UN is committed to leave no LDC behind," UN Country Team Nepal said in a tweet.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/uk-mp-urges-government-to-help-nepal-fight-covid-19-crisis-391746" hreflang="en">UK MP urges government to help Nepal fight COVID-19 crisis</a>

Considering the setback Nepal's economy faced after 2015, the CDP deferred Nepal's graduation ceremony in 2018, even though the South Asian country had already met the graduation criteria in 2015.

Further, due to the challenges posed by the COVID-19 pandemic and based on the request of the Government of Nepal, the normal preparatory period of three years has been extended to five.&nbsp;The preparatory period of five years is given to provide adequate time for a smooth transition during which Nepal will offset the loss of support measures exclusive to the LDCs.

Nepal will continue to have access to all LDC-specific support measures until 2026.&nbsp;

In addition to Nepal, Bangladesh and Lao People's Democratic Republic have also been recommended for graduation by the CDP.

Earlier, in a press conference, Prime Minister KP Sharma Oli said that Nepal has been recommended for upgrading from underdeveloped to developing countries and that economic growth is promising before the onset of the pandemic.

"For the first time, the export trade has crossed the one trillion target, the trade deficit is declining. Employment opportunities are increasing in the country and the outflow of labor is decreasing," Oli said.

Nepal has stepped into a new journey as it qualified to graduate into a developing nation from a Least Developed Country (LDC) without meeting the per capita Gross National Income (GNI) criterion.

Nepal has stepped into a new journey as it qualified to graduate into a developing nation from a Least Developed Country (LDC) without meeting the per capita Gross National Income (GNI) criterion. The United Nations Committee for Development Policy (UN CDP) recommended the graduation to the Himalayan Nation in its final evaluation on Friday. Highlighting it as a 'unique case', Amrit Rai, Chief of the Permanent Mission of Nepal to the United Nations said, "As the first country to graduate from the LDC category without meeting the GNI criterion, Nepal's graduation will be a unique case. Yet, we are determined to make it as smooth and sustainable as possible." Also read | Supreme Court has no right to appoint PM, says Nepal's KP Sharma Oli Earlier, on June 09, the Chief of the Permanent Mission of Nepal had informed that the UN Economic and Social Council (ECOSOC) has given consent to present the proposal in the upcoming UNGA for endorsement. "At its Management Segment, the ECOSOC endorsed CDP's recommendation for Nepal’s graduation from the LDC category. For Nepal, LDC graduation means an important stepping stone towards realizing national ambition of 'Prosperous Nepal, Happy Nepali", Rai had earlier said. Also read | Nepal former PM Khanal taken to Delhi’s Apollo Hospital, issues statement The recommendation was made in the triennial review of the United Nations Committee for Development Policy (CDP), held from February 22 to 26, 2021. This decision was made keeping in mind that Nepal had met the criteria for graduation for three consecutive reviews. Nepal met two out of three thresholds to become eligible for graduation. The three indices considered by the CDP are GNI per capita, Human Assets Index (HAI), and Economic and Environmental Vulnerability Index (EVI). "Nepal must seize the opportunity of LDC graduation to recover lost momentum on the Global Goals and make important strides forward in the Decade for Action. The UN is committed to leave no LDC behind," UN Country Team Nepal said in a tweet. Also read | UK MP urges government to help Nepal fight COVID-19 crisis Considering the setback Nepal's economy faced after 2015, the CDP deferred Nepal's graduation ceremony in 2018, even though the South Asian country had already met the graduation criteria in 2015. Further, due to the challenges posed by the COVID-19 pandemic and based on the request of the Government of Nepal, the normal preparatory period of three years has been extended to five. The preparatory period of five years is given to provide adequate time for a smooth transition during which Nepal will offset the loss of support measures exclusive to the LDCs. Nepal will continue to have access to all LDC-specific support measures until 2026. In addition to Nepal, Bangladesh and Lao People's Democratic Republic have also been recommended for graduation by the CDP. Earlier, in a press conference, Prime Minister KP Sharma Oli said that Nepal has been recommended for upgrading from underdeveloped to developing countries and that economic growth is promising before the onset of the pandemic. "For the first time, the export trade has crossed the one trillion target, the trade deficit is declining. Employment opportunities are increasing in the country and the outflow of labor is decreasing," Oli said.

Becoming a developing nation: Nepal graduates from UN’s least developed country status

The leadership crisis is continuing in the world. Despite their economic might, the leadership in Europe, the US, UK, China and Russia are battling severe challenges. Most headlines in global media are about crises in these regions.&nbsp;

If we step back and look at the conflict zones, there are more in the developed world than in emerging economies. The trade flare-up between US and China is not surprising if you look at economic history. North America and Europe have dominated the global economy for so long that they are shaken up by competitive behaviour.&nbsp;

Remember the 1980s when Japan rose to a level when it was buying up companies in the US. The entire country stood up to demonise the rise of Japan amid fears that most American companies would be acquired by the Asian giants.&nbsp;

When the Asian tigers climbed up the economic ladder in the 1990s, there was excitement and anxiety in equal measure. While their rise expanded the markets for Western companies, it also created firms that could successfully compete with American and European giants.&nbsp;

The large conglomerates from South Korea, smart services companies from Singapore and low-cost manufacturing outfits in Philippines offered continuing competition to Western companies.&nbsp;

Europe is facing a crisis caused by Brexit and the looming threat of Russia. Between the self-inflicted problems of UK and Russia’s attempts to take back its old territories, Europe is focused on its own immediate future.&nbsp;

The rise of China has brought back fears of Japan in the minds of the American government. Hence, the US-China trade war. While Japan wanted to build its economic strengths, China is clear about being a global geo-political influence, prompting the US to take on them. European Union (EU) members are split on China since some are keen to take all the support they can for their stagnating economies.&nbsp;

The resulting chaos in the developed world is driving a new wave of leadership to take charge of various regions in the world. They are now reducing the influence of large economies by deciding what is in their own interest.&nbsp;

In Africa, leaders like Paul Kagame, President of Rwanda, are showing the way ahead for the continent. Rwanda has emerged as economic dynamo and also a key member of the increasingly cohesive East African Community.

In recent months, it has taken big strides to reduce its dependence on aid while encouraging FDI.&nbsp;

Volkswagen has set up a factory in the country while a plan is being rolled out to convert its capital Kigali into a global financial centre. “We are offering ourselves to the world as proof of concept country. We are inviting companies to test their ideas for Africa in Rwanda. If it works here, it can be scaled up in the region,” Richard Sezibera, foreign minister of Rwanda, told me in a conversation recently.&nbsp;

The reforms for the African Union initiated by President Kagame will help the countries cooperate among themselves. Similarly the Smart Africa initiative of 24 countries triggered by President Kagame is working to use technology and broadband access to create knowledge economies in the region.&nbsp;

Leaders in the African continent realise that overdependence on the EU and the US will be counterproductive. They have to lead their own way if they seek genuine economic independence.&nbsp;

The world was seemingly stable when US and Europe dictated the global economic order. Armed with their economic might and multilateral institutions controlled by them, they were able to create a global market for their products. They were not so open about allowing global products to enter their own market. After spending decades trying to open up emerging markets, the Western economies are busy closing their own.&nbsp;

At the Horasis Global Meeting in Lisbon earlier this year, it was clear that the EU and the US will have to reconcile to a new world order where they would have to give space to leadership from other parts of the world. “While vigorous nationalism is rising, countries should avoid isolation caused by protectionism,” Frank-Jürgen Richter, chairman of Horasis, said.&nbsp;

Globalisation will work only if it inspires goodwill and is conducted transparently, said Jose Manuel Barroso, vice chairman, Goldman Sachs International and former President of the European Commission.&nbsp;

“Currently those who take initiatives are on the extremes, what we need is a more enlightened leadership: not only political, but corporate leadership as well,” he stated.&nbsp;

In India, Prime Minister Narendra Modi is driving change not just for India, but also countries in the Indian Ocean and the BIMSTEC region. The BIMSTEC countries include Bangladesh, Sri Lanka, Thailand, Myanmar and Bhutan.&nbsp;

At the recent Shanghai Cooperation Organisation (SCO) meeting in Bishkek, Modi made it clear that emerging markets will create their own growth path. While collaboration with western economies will remain important, self-interest will influence economic policies. Modi is pursuing strong relations with China, Russia, EU and US independently, to carve a clear position for India in the world.&nbsp;

The conflict among the economic giants will fester and could even escalate over the next few years. This is now the ideal time for the new wave of leadership to control the destinies of its people, long in the hands of colonial and neo-colonial forces. The billions in Asia and Africa deserve this shift in power.&nbsp; 
 
&nbsp;

(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-rattling-old-world-order-2762411">original article</a>)

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp;

&nbsp;

The leadership crisis is continuing in the world. Despite their economic might, the leadership in Europe, the US, UK, China and Russia are battling severe challenges.

The leadership crisis is continuing in the world. Despite their economic might, the leadership in Europe, the US, UK, China and Russia are battling severe challenges. Most headlines in global media are about crises in these regions. If we step back and look at the conflict zones, there are more in the developed world than in emerging economies. The trade flare-up between US and China is not surprising if you look at economic history. North America and Europe have dominated the global economy for so long that they are shaken up by competitive behaviour. Remember the 1980s when Japan rose to a level when it was buying up companies in the US. The entire country stood up to demonise the rise of Japan amid fears that most American companies would be acquired by the Asian giants. When the Asian tigers climbed up the economic ladder in the 1990s, there was excitement and anxiety in equal measure. While their rise expanded the markets for Western companies, it also created firms that could successfully compete with American and European giants. The large conglomerates from South Korea, smart services companies from Singapore and low-cost manufacturing outfits in Philippines offered continuing competition to Western companies. Europe is facing a crisis caused by Brexit and the looming threat of Russia. Between the self-inflicted problems of UK and Russia’s attempts to take back its old territories, Europe is focused on its own immediate future. The rise of China has brought back fears of Japan in the minds of the American government. Hence, the US-China trade war. While Japan wanted to build its economic strengths, China is clear about being a global geo-political influence, prompting the US to take on them. European Union (EU) members are split on China since some are keen to take all the support they can for their stagnating economies. The resulting chaos in the developed world is driving a new wave of leadership to take charge of various regions in the world. They are now reducing the influence of large economies by deciding what is in their own interest. In Africa, leaders like Paul Kagame, President of Rwanda, are showing the way ahead for the continent. Rwanda has emerged as economic dynamo and also a key member of the increasingly cohesive East African Community. In recent months, it has taken big strides to reduce its dependence on aid while encouraging FDI. Volkswagen has set up a factory in the country while a plan is being rolled out to convert its capital Kigali into a global financial centre. “We are offering ourselves to the world as proof of concept country. We are inviting companies to test their ideas for Africa in Rwanda. If it works here, it can be scaled up in the region,” Richard Sezibera, foreign minister of Rwanda, told me in a conversation recently. The reforms for the African Union initiated by President Kagame will help the countries cooperate among themselves. Similarly the Smart Africa initiative of 24 countries triggered by President Kagame is working to use technology and broadband access to create knowledge economies in the region. Leaders in the African continent realise that overdependence on the EU and the US will be counterproductive. They have to lead their own way if they seek genuine economic independence. The world was seemingly stable when US and Europe dictated the global economic order. Armed with their economic might and multilateral institutions controlled by them, they were able to create a global market for their products. They were not so open about allowing global products to enter their own market. After spending decades trying to open up emerging markets, the Western economies are busy closing their own. At the Horasis Global Meeting in Lisbon earlier this year, it was clear that the EU and the US will have to reconcile to a new world order where they would have to give space to leadership from other parts of the world. “While vigorous nationalism is rising, countries should avoid isolation caused by protectionism,” Frank-Jürgen Richter, chairman of Horasis, said. Globalisation will work only if it inspires goodwill and is conducted transparently, said Jose Manuel Barroso, vice chairman, Goldman Sachs International and former President of the European Commission. “Currently those who take initiatives are on the extremes, what we need is a more enlightened leadership: not only political, but corporate leadership as well,” he stated. In India, Prime Minister Narendra Modi is driving change not just for India, but also countries in the Indian Ocean and the BIMSTEC region. The BIMSTEC countries include Bangladesh, Sri Lanka, Thailand, Myanmar and Bhutan. At the recent Shanghai Cooperation Organisation (SCO) meeting in Bishkek, Modi made it clear that emerging markets will create their own growth path. While collaboration with western economies will remain important, self-interest will influence economic policies. Modi is pursuing strong relations with China, Russia, EU and US independently, to carve a clear position for India in the world. The conflict among the economic giants will fester and could even escalate over the next few years. This is now the ideal time for the new wave of leadership to control the destinies of its people, long in the hands of colonial and neo-colonial forces. The billions in Asia and Africa deserve this shift in power. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Rattling old world order: Emerging markets should take charge

India will overtake China to be the fastest growing large economy in 2018 and the country&#39;s equity market will become the fifth largest in the world, says a report.

According to a Sanctum Wealth Management report, when the rest of the world offers low growth and insufficient structural change, India, by contrast, is seen as a reforming economy with the prospect of strong long-term growth.

&quot;India will become the fastest growing large economy in the world, eclipsing China. Indian equity market will jump to become the fifth largest in the world,&quot; the report noted.

At a time when developed economies are cheering 2-3 per cent growth, India is focused on breaching 7.5 per cent, it said.

Moreover, India also benefits from a favourable contrast to other emerging markets. In particular, the fact that China is downshifting to a slower pace of growth.

&quot;Prospective returns for equities are much higher than the 6-8 per cent that one can expect from fixed income,&quot; it noted.

However, if inflation or rates rise, markets are not likely to register further gains.

Muted earning could also impact market performance.

&quot;Considering the fact that Nifty50 is in a broader uptrend, a sustained move beyond the 10,490-10,580 levels could lead to a rally towards 11,200-11,500 levels in the medium term,&quot; it noted.

As per the report, a major factor that has changed is that the domestic buyer now sets market prices. Domestic mutual funds bought equities worth $15.3 billion against $8 billion by foreign investors in 2017.

The report that identifies various big-picture trends at play this year in the domestic and global economy, noted that Aadhaar, Jan Dhan, demonetisation, GST, are working to create a new inclusive infrastructure in India.

&quot;Given the rapid pace at which the Indian economy is developing, investors today are faced with the need to make crucial investment decisions amidst multiple cross-currents, using a complex array of choices,&quot; Sanctum Wealth Management Chief Executive Officer Shiv Gupta said.

At a time when developed economies are cheering 2-3 per cent growth, India is focused on breaching 7.5 per cent, it said

India will overtake China to be the fastest growing large economy in 2018 and the country's equity market will become the fifth largest in the world, says a report. According to a Sanctum Wealth Management report, when the rest of the world offers low growth and insufficient structural change, India, by contrast, is seen as a reforming economy with the prospect of strong long-term growth. "India will become the fastest growing large economy in the world, eclipsing China. Indian equity market will jump to become the fifth largest in the world," the report noted. At a time when developed economies are cheering 2-3 per cent growth, India is focused on breaching 7.5 per cent, it said. Moreover, India also benefits from a favourable contrast to other emerging markets. In particular, the fact that China is downshifting to a slower pace of growth. "Prospective returns for equities are much higher than the 6-8 per cent that one can expect from fixed income," it noted. However, if inflation or rates rise, markets are not likely to register further gains. Muted earning could also impact market performance. "Considering the fact that Nifty50 is in a broader uptrend, a sustained move beyond the 10,490-10,580 levels could lead to a rally towards 11,200-11,500 levels in the medium term," it noted. As per the report, a major factor that has changed is that the domestic buyer now sets market prices. Domestic mutual funds bought equities worth $15.3 billion against $8 billion by foreign investors in 2017. The report that identifies various big-picture trends at play this year in the domestic and global economy, noted that Aadhaar, Jan Dhan, demonetisation, GST, are working to create a new inclusive infrastructure in India. "Given the rapid pace at which the Indian economy is developing, investors today are faced with the need to make crucial investment decisions amidst multiple cross-currents, using a complex array of choices," Sanctum Wealth Management Chief Executive Officer Shiv Gupta said.

India to overtake China as fastest growing large economy in 2018: Report

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