Importance of Development Regions and Federal State

Development regions are very important for the development of a country. The main importance of development regions is the proper use of natural resources and proportionate development in all the regions. This note provides the information about the importance of development regions and federal state.

Summary

Development regions are very important for the development of a country. The main importance of development regions is the proper use of natural resources and proportionate development in all the regions. This note provides the information about the importance of development regions and federal state.

Things to Remember

  • Nepal is a country with plenty of natural resources like different types of soil, forests, rivers, etc.
  • Only four development regions were created in 2029 BS and the number reached five in 2037 BS.
  • Development region helps to know the problems arising in cultures and traditions of the local areas.
  • Development regions use the available resources and manpower of its own region because importing the manpower and resources is expensive.

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Subjective Questions

Q1:

What is a single entry system?


Type: Very_short Difficulty: Easy

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Answer: <p>A single entry system is an incomplete form of recording financial transactions. It is the system, which does not record two aspects or accounts of all financial transactions. It is the system, which has no fixed set of rules to record the financial transactions of the business.</p>

Q2:

What are the features of single entry system?


Type: Very_short Difficulty: Easy

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Answer: <p>The following are the features of single entry system:</p> <ol><li>This system is not guided by fixed set of accounting rules for determining the amount of profit and preparing the financial statements.</li> <li>It is an incomplete system of accounting, which does not record all the aspects of financial transactions of the business.</li> <li>It maintains cash book for recording cash receipts and payments of the business organization during a given period of time.</li> <li>It maintains personal accounts of all the debtors and creditors for determining the amount of credit sales and purchases during a given period of time.</li> <li>Single entry system has no fixed set of principles for recording financial transactions and preparing different financial statements.</li> </ol>

Q3:

What are the advantages of single entry system?


Type: Short Difficulty: Easy

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Answer: <p>The following are the advantages of single entry system:</p> <ol><li><strong>Simple and easy</strong><br>Single entry system is simple to understand and easy to maintain as it has no fixed set of principles to follow while recording financial transactions.</li> <li><strong>Economy</strong><br>Single entry system is an economical system of recording financial transactions. It does not require hiring skilled accounting personnel to record financial transactions of the business.</li> <li><strong>Easy to calculate profit</strong><br>Under this system, the amount of profit can be determined easily. The amount of profit or loss of the period can be determined by making a comparison between the amounts of closing capital and opening capital.</li> <li><strong>Suitable for small businesses</strong><br>The single-entry system is a simple, easy, and economical system. It is suitable for small businesses because they cannot afford the cost of double entry system.</li> </ol>

Q4:

What are the disadvantages of single entry system?


Type: Short Difficulty: Easy

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Answer: <p>The following are the notable disadvantages of single entry system:</p> <ol><li><strong>Unscientific and unsystematic</strong><br>The single-entry system is an unsystematic and unscientific system of recording financial transactions. It does not have any set of fixed rules and principles for recording and reporting the financial transactions.</li> <li><strong>Incomplete system</strong><br>It is an incomplete system because does not record the two aspects or accounts of the financial transactions of the business. It does not maintain any record of the transactions relating to nominal and real account accept cash account.</li> <li><strong>Lack of arithmetical accuracy</strong><br>It is not based not the principles of debit and credit. It fails to provide the arithmetical accuracy of the books of accounts. A trial balance cannot be prepared under this system to check the arithmetical accuracy of books of accounts.</li> <li><strong>Does not reflect true profit or loss</strong><br>The true amount of profit or loss of the business cannot be ascertained under this system because it does not maintain the nominal accounts. It determines the amount of profit or loss by making a comparison between the amount of closing capital and opening capital.</li> </ol>

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Single Entry System
Single entry system
Importance of Development Regions and Federal State

Importance of Development Regions and Federal State

Nepal is a country with plenty of natural resources like different types of soil, forests, rivers, etc. It is enriched with the gifts of nature. However, these natural resources have not been properly utilised. There is an imbalance in development in our country. Only the Central Development Region and Eastern Development Region have developed, but the others are lagging behind in the pace of development. The topography of our country is also one of the reasons behind it. The land of the mountain is not fertile. So, there is no good production. So, this region is not developed in comparison to others.
Development regions are very important for the development of a country. Keeping this in mind, four development regions were created in 2029 BS and the number reached 5 in 2037 BS. The main importance of development regions is the proper use of natural resources and proportionate development in all the regions.

Figure: Development Regions of Nepal Source: https://en.wikipedia.org/wiki/Development_regions_of_Nepal
Figure: Development Regions of Nepal
Source: https://en.wikipedia.org
Some of the importance of development regions:
  • Develop the feeling of competition: The feeling of competition creates rapid development in every region as everyone wants to be more advanced than the others. As a whole, the country develops rapidly.
  • Utilisation of resources and manpower: Development regions use the available resources and manpower of its own region because importing the manpower and resources is expensive. Therefore, the resources won't go to a waste and people also get job opportunities.
  • Proportionate development: Proportionate development occurs in every development regions as there is the facility of health, education, transport, communication, electricity, etc. in all development regions.
  • Decentralisation of power: Due to decentralisation of power, public participation increases. As the people want change, they carry out development activities with each others' cooperation.
  • Promotion of local culture: Development region helps to know the problems arising in cultures and traditions of the local areas. The problem is understood in local level and effective remedies are applied.
Figure: Local Development Source: thehimalayantimes.com
Figure: Local Development
Source: thehimalayantimes.com

Federalism is a political system in which a country is divided into autonomous provinces or states.

Advantages of Federal System:

  1. Federal Government can solve political, social, economic problems of particular regions.
  2. It maintains a close relationship between state and peoples.
  3. It uses the available resources.
  4. Accelerates developmental activities.
  5. Carry out proportional development.
  6. It can make its own policy for the welfare of the government.
  7. It maximises the uses of government.
  8. It has room for innovation and experiments.

Disadvantages of Federal System:

  1. It creates confusion.
  2. It is expensive.
  3. The gap between poor and rich province widens.
  4. It creates unhealthy competition among provinces.
  5. It brings unhealthy competition and regional dispute.

Lesson

We, Our Community and Nation

Subject

Social Studies and Population Education

Grade

Grade 8

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