• TOPICS
KATHMANDU, APRIL 24
Over the past few decades, the world has shown that success in a nation's all-round development can be achieved with the help of the private sector as a pillar of the economic development. In all the highgrowth economies of Asia - Korea, Hong Kong, Taiwan, Malaysia or neighbouring China - the private sector has been responsible for their economic development.
Although the private sector has not been relatively effective in Nepal, it has played an important role in some aspects of economic development. In Nepal, private sector organisations are serving the people by investing in different sectors, including the social sector such as education and health. They are also assisting in the flow of public services by participating in the production and distribution of other services.
Similarly, a number of services are also being contracted out by the government to the private sector. Investment in private sector infrastructure development has played an important role in creating employment in the country, utilising young manpower and alleviating poverty.
Many efforts have been made at different times to enhance the role of this sector. While the Sixth Plan focused on the development of the private sector in Nepal, the Eighth Plan introduced a policy of formally establishing private sector participation in line with the concept of an open economy, while the Tenth Plan further clarified the role of the private sector.
Although many of these efforts have been made to promote and facilitate the private sector, the existing barriers are not weakening. The biggest obstacle for private sector growth in Nepal seems to be unstable politics. Unstable governments formed at different periods bring policy related to the private sector, but no one pays much attention to implementing it. As Nepal embraces economic liberalisation and globalisation, the government must regulate, stimulate and promote the private sector. In order to develop and promote the capacity of the private sector in Nepal, it is necessary for the political parties to have a clear policy and see to its continuation irrespective of who runs the government. Legal and procedural issues should also be made clear and transparent.
The government should also focus on effective supervision and regulation of private sector operations, education and training for their development.
Corruption and malpractices in the private sector should also be brought under the purview of the Commission for the Investigation of Abuse of Authority.
Both the government and the private sector must be aware of the demand of the hour and fulfill their responsibilities.
A version of this article appears in the print on April 25, 2022, of The Himalayan Times.
