Factors affecting development of Nepal and Bhutan:
Nepal and Bhutan are classified as developing countries due to poverty and lack of development. The mountainous terrain has hindered development and the ability to effect positive economic growth. The two countries rely on agriculture and tourism among other industry for an economic boost.
However, agriculture faces a lot of challenges due to lack of plain terrain there is lack of sufficient arable land. The soil is poor and erosion is at high. Though timber provides a good business, deforestation is yet another challenge. Tourism is fast growing in these two countries due to different attraction such as the Himalayas and this has increased hospitality and provision of good transport services.