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Book Review:

Problem Of Debt

The book highlights the issue of Nepal's debt trap and its management

Debt Trap and Its Management in Nepal

Published by : Nepal Foundation for Advanced Studies and Friedrich-Esbert-Stiftung

Edited by : Guna Nidhi Sharma, Hari Uprety and Dev Raj Dahal

Price: Undisclosed

Pages: 93s

In the present stage of globalization, no country can survive without the support from other countries of the world. As Nepal is in the process of transition in all spheres of development, it requires more resources.

At a time when there is no possibility to generate adequate resources on its own, multi-lateral and bilateral aid are the only means to fulfill the country's resource gap.

The articles in the book seem to have been written by making assumptions that the foreign assistance, in all its forms, is bad for the country.

Actually, foreign aid, in itself, is not the problem. The problem is with its management. Had Nepal managed the foreign assistance properly, the situation of the country would have been different.

As Nepal borrowed a large amount of money over the years to initiate development activities in the country, the debt burden is getting higher at a faster pace than ever before.

Foreign aid has been major instrument for many third world countries like Nepal but the question is: How useful is it for the overall development of a country?

In international fora, developing countries are demanding more aid to carry out development activities in their own respective countries without realizing the burden of foreign debts in their future.

Following the restoration of democracy, Nepal's foreign debt increased by many folds and country is now spending nearly 15 percent of its annual budget to pay the interest.

As the management of foreign debt is of vital concern to the country, the book can be very useful to those in power. It can provide the effective ways of managing the debt and coming out of debt traps unscathed.

SPOTLIGHT, The National Newsmagizine, Vol. 19, No. 46, June 02 - June 08, 2000.

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