Small towns and market centres can play an important and effective role in the development of mountain areas. However, strategies for the identification and assessment of the potentials of market towns and the formulation of a specific programme to develop the market town potential in mountain areas of the Hindu Kush-Himalayas are lacking. The present report builds upon existing literature and elucidates the application of the methodology for the assessment as well as the development of prioritized action plans of the market towns with most potential in Dechang County in Sichuan Province, China, Tehri Garhwal district in the UP hills, India, Dang district in Nepal, and Ghizar district in the Northern Areas in Pakistan. These areas represent the diverse physiographic, spatial, and economic context of the Hindu Kush-Himalayan (HKH) mountains.
Spatio-economic profiles for each of the districts were prepared on the basis of secondary data complemented by field-level information. These profiles provide the socioeconomic, demographic, and development parameters as well as the policy context of the development of market towns . Several criteria were used in each context to identify and assess the market towns with the most development potential. On the basis of the field visits and participatory rapid appraisal methodology, several prioritised areas of action are identified for the promotion of a selected number of market towns with the most development potential in each context.
The exercise brings forth the enormous importance of the strategy for regional infrastructural development of market towns, both in the realisation of the production potential of the hinterland and in enhancing the forward and backward linkages. Human resources' development and the strengthening of the local-level institutional mechanisms also appear as key elements in designing 'interventions' for the promotion of market towns. In the context of the HKH countries, where planning manpower is often top heavy, the studies also demonstrate the partnership that can be established between academic institutions, rural development agencies, and governmental agencies in supporting demand driven approaches to the promotion of market towns.