Dividend or disaster?

There is an urgent need to bridge the gap between the potential and reality of Nepal’s young workforce.

Nepal is currently experiencing a remarkable demographic shift. The population of working-age individuals is rising rapidly. By 2050, the country must create 6.5 million jobs to capitalise on its demographic dividend. However, a recent World Bank report , Nurturing Nepali Talent to Foster Economic Growth , suggests that the country is not prepared to protect its people from the looming challenge. If the state does not act now, this potential will simply vanish. According to the report, Nepal’s Utilization-Adjusted Human Capital Index (UHCI) sits at 0.18, one of the lowest rates in the region. This means a child born today will likely only use 18 percent of their full productive potential when they grow up. Nepal’s talent is trapped by a lack of opportunities. Even when children go to school, they do not learn enough. A Nepali student, on average, spends 12.3 years in a classroom, but only gains the equivalent of 7.2 years of learning.