Kathmandu, February 17

Nepal needs an honest intermediary that could work as a link between private businesses and the government to ensure genuine problems faced by enterprises could be addressed through policies, according to Professor Eamonn Butler, co-founder and director of the UK’s Adam Smith Institute, one of the world’s leading policy think-tanks.

“Entrepreneurs are too busy to get engaged in policy-making processes. Those who are free, on the other hand, are useless and have their own agendas,” said Butler, who holds degrees in economics, philosophy and psychology, and a PhD from the University of St Andrews.

This situation, according to the libertarian professor, can be dealt with if an ‘honest broker’ can create linkage between entrepreneurs and civil servants.

“This way policies can be framed objectively rather than what few people say,” Butler said addressing an interaction organised today by Samriddhi, The Prosperity Foundation.

Although the government holds consultations with different umbrella bodies of the private sector during the policy drafting phase, many claim these groups generally lay recommendations to serve the interest of the few. As a result, such policies cannot help improve business climate or contribute to sustainable economic development.

An example of this could be seen through the proposed Bill on Foreign Investment and Technology Transfer, which was drafted in consultation with the private sector, said Sujeev Shakya, CEO of Beed Management, who was moderating the interaction. He further said: “Some of the provisions in the bill are even more draconian than in the existing act.”

All this is happening because few entrepreneurs abhor competition, despite liberalisation of the economy in the 1990s, Niranjan Shrestha, executive director of Laxmi Group, told the interaction.

“These entrepreneurs believe in cartels. And these cartels are receiving patronage from politicians and civil servants.”