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Abstract
Hills are important to the economy of Nepal, but have been 3.t a disadvantage
with regard to infrastructure, supply of fertilizer, credit, and seed. This has
already increased the disparity between the hills and the plains. Smaller size of
highly fragmented holdings, lower productivity, lower level of education and
extension, cultivation of marginal lands, soil erosion, lack of alternative sources
of employment in villages and consequent migration, and limited quantities of
marketable surplus are all responsible for the vicious circle of lower levels of
farm incomes, limiting the capability of the small hill farmer to reinvest or buy
new inputs.
Agriculture alone can not sustain the rural economy in hills where development
has to be a continuous and long term process, and the basic approach to which
has to be an integrated one. This integration must be sectoral, spatial, and
temporal. Rural change iri hills has to encompass agriculture, horticulture,
livestock, forestry, agro-based industries, necessary infrastructure, social services,
and even tourism. These efforts must be supplemented with special
programmes designed to help small farmers, rural poor, and women so that the
benefits of development are shared by the whole rural populace. The paper
points out some areas where agricultural economists can make a very useful
contribution.