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CONCLUSION 31


find that access to extension in 1995/96 did not have a significant impact on growth in household welfare. Due to civil strife, the initial frequency of extension visits might not have been related to agricultural productivity and other welfare indicators seven years later. The inconsistency of the esti- mated impact of extension service between the two methods calls for more in-depth research in the future.


Interpretation of these results with an understanding of the political econ- omy of Nepal over the period of analysis is critical. Because of the disruptions of extension services caused by civil strife, the initial frequency of extension visits in 1995/96 may not matter much to income and consumption growth in the period from 1995/96 to 2003/04. During the conflict, agricultural extension agents might have had valid excuses for not visiting farmers in rural areas for safety reasons. Now that peace has been restored in rural areas, the barriers to access to public infrastructure and services have been lowered. However, the effective delivery of irrigation and extension service and the construc- tion and maintenance of roads can continue to be improved. The underlying approach of the APP, which emphasizes unlocking the growth potentials of rural farmers by exploiting the comparative advantage of Nepal’s unique agroecological environment, is basically sound. Linking farmers to the market through rural roads and enhancing land productivity through irrigation and extension services are ways to potentially help Nepalese farmers exert their comparative advantages. There is a need for further research on improving the effectiveness of rural infrastructure and services and understanding the channels of their impact on rural households’ welfare in the more stable environment.


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