ROAD TO DEVELOPMENT In this context, Nepal must devise a model for export and private sector-led open and competitive market economy to maximize benefits from globalization and liberalization with due consideration to social justice, social security and welfare of the people. The only problem with liberalization is that costs and risks are socialized and profit is privatized. The government should abandon the policy to undertake business, run industries and protect public enterprises with huge subsidies, loan and transfer payments, for this is a sector function to be undertaken by the private sector - a vehicle for economic development. The government should also specify to undertake its sector functions by inducting the policy of “small government” and play the role of a facilitator. The government should effectively work in tandem with the private sector to attract FDI for initiating mega-projects in priority areas by creating investment-friendly environment. Industrial relations need to be substantially improved by initiating tripartite agreement among the private sector, trade unions and the government. A top most priority should be accorded to harness water resources and develop hydropower, promote tourism, expedite export to India and overseas, increase production and productivity of agriculture through Green Revolution and manufacturing sector must be developed based on comparative advantages and competitive edges. The quality of middle-level manpower aspiring for foreign employment should be improved through providing exposures including technical and vocational training. Since tax burden is relatively high in Nepal compared with South Asia region employing GNI per capita criterion, the tax policy must be made simple and transparent and tax structure competitive to attract FDI and promote indigenous investments. Special economic zone, industrial corridors and industrial estates must operate more effectively backed by legal status. Countries with enormous wealth have tremendous opportunities to spur speedy economic growth. For example, Gulf countries possess abundant petro-products, South Africa contains huge gold mines, China and India are immensely rich in human resources, and Nepal has the biggest potential in water resources. ADB Report 2009 reveals that Nepal’s economic backwardness is attributed to lack of enlightened leadership and not critical shortage of investment (ADB, 2009). Hence, Nepal needs charismatic statesmanship to translate the vision into reality.
Posted on: Sat, 25 Jan 2014 22:05:17 +0000
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