Nepal's Demographic Dividend: Challenges and Opportunities

Abstract

Nepal is undergoing a significant demographic transition, characterized by a burgeoning working-age population and a declining dependency ratio, commonly referred to as the demographic dividend. This research article aims to comprehensively analyze both the challenges and opportunities associated with harnessing this demographic window for sustainable socio-economic development in Nepal, drawing solely on existing secondary data. It will critically examine key demographic trends, indicators of human capital development (education and health), labor market dynamics, and the prevailing macro-economic environment. Furthermore, the study will assess the implications of current governmental policies and identify critical bottlenecks that impede the full realization of the demographic dividend, while also highlighting potential avenues for its successful leveraging. The findings are intended to synthesize existing knowledge, contribute to a nuanced understanding of Nepal's demographic realities, and inform evidence-based policy recommendations for inclusive and accelerated growth.