MOUNTAIN ENTERPRISES AND INFRASTRUCTURE
towards diversification of mountain economies

Rationale

Widespread and deep-rooted poverty is the single biggest challenge for sustainable development of mountain areas in the HKH. While improvements in agricultural productivity and natural resource management are critical, the rapidly growing labour force in mountain areas cannot be gainfully absorbed by agriculture alone, and major efforts are needed to diversify the mountain economy and enhance the mountain populations' living standards.

Past developments in non-agricultural activities and supporting infrastructure have not been adequate. Major investments are needed to develop human and natural resources and build national and local capacities for diversifying the mountain economy. Many investments made in the past have not benefitted mountain people. Far greater attention must be given to those investment decisions that directly improve their quality of life and diversify their skills, based on the comparative advantages afforded by mountain conditions such as tourism, horticulture, off-season vegetables, etc. These must also be developed with adequate environmental safeguards. In addition, large areas in the mountains are still lacking in basic infrastructure, such as roads, electricity, and communications' facilities, without which it will be difficult to promote high-value activities. Promotion of economically viable and sustainable energy systems in mountain areas is a key requirement for development. Urbanisation is a recent phenomenon in mountain areas and is likely to be a major factor in future development. Urban growth has to be managed in such a way that the rural population is absorbed while the problems (social, economic, and environmental) caused by urbanisation are minimised or prevented. The past isolation of mountain areas is slowly changing. In order for mountain economies and environments to develop in a sustainable manner, diversification of mountain economies has become urgent.

COMPONENTS