he world. Nepal is no exception with the decade long internal insurgency. However, in November 2006,
a historic comprehensive peace accord was made between the Government of Nepal and the Communist
party of Nepal-Maoists (CPN-M), which have provided Nepalese an opportunity to build peaceful and
prosperous society. In 2008, the new alliance government was formed and the new government has been
trying hard to make post-conflict Nepal as a successful development case.
One of the major challenges for the new government to tackle with is to vitalize local economy and
sustain Nepalese livelihood. To improve people’s livelihood require many efforts from at least three key
human development areas: decent economic base, knowledge and skill development, and high quality in
health. As Human Development Index (HDI) (see Table 1) has shown that Nepal is one of the poorest
performer in human development in South Asia, which suggests that improvement of people’s well-being
never be an easy task. To ease people’s anxiety over their livelihood, sustainable economic development is
needed and, for that stable economic growth, local-level skill development should receive a high priority of
the government.