Nepal | August 05, 2020

New approach necessary to accelerate country’s economic growth

WB report calls for departure from the ‘business-as-usual’ approach to help address inequalities

Himalayan News Service
Share Now:

Kathmandu, March 13

Experts and stakeholders have said that a new and different approach is needed for the country to accelerate its economic growth, rapidly reduce poverty and boost shared prosperity.

Speaking at a panel discussion titled ‘A New Approach for a Federal Nepal’ organised jointly by the World Bank Country Office and Society of Economic Journalists-Nepal (SEJON) here today, they said that there is an urgent need to change Nepal’s development model to make sure that opportunities for faster growth and poverty reduction are not missed.

“At this historic moment in Nepal, there is a need for a new approach to achieve faster progress,” said Ruth Hill, co-author of ‘Nepal Systematic Country Diagnostic’ report by World Bank (WB), which was unveiled during the programme. The SCD report also calls for departure from the ‘business-as-usual’ approach that will not address the inequalities, reduce poverty rapidly and create enough employment opportunities in the country to achieve faster economic growth.

“Private-public partnership is going to be critically important as the government cannot alone make the huge investment needed in the country. The government should join hands with the private sector for development,” said Suraj Vaidya, president of SAARC Chamber of Commerce and Industry.

Jiwan Bahadur Shahi, a member of provincial assembly of Karnali Province, said that the inequality between the provinces should be addressed. “The first step for addressing the inequality between the provinces is to distribute the resources from the central government in an equitable manner,” he added.

Kewal Prasad Bhandari, joint secretary at the Ministry of Finance, said that focus should be placed on agricultural development, as the country may not be able to immediately compete in the manufacturing sector with China and India.

Min Bahadur Shrestha, former vice president at the National Planning Commission, said that the government should facilitate in attracting private sector investment, both domestic and foreign, to create mass-scale employment opportunities.

Among others, the SCD report pointed out the six areas where action is required to take advantage of opportunities for growth and poverty reduction, to address sources of fragility, and to reduce vulnerability.

The SCD report has said that there is a need of encouragement, of political inclusion and eliminating ‘clientelism’.

“The current transition to federalism is a potential game changer if it is accompanied by a meaningful change in the balance of power,” said Hill, adding that real progress in this area is not only important but also very possible. Another area of action recommended in the report is private sector investment. According to the report, addressing constraints to private investment is essential for individuals to become more productive employees and entrepreneurs.

The report has also recommended the need to harness the potential of natural resources. Stating that the constraints to
private investment are apparent in natural resource development, it said that unlocking such constraints means getting more from natural resources, which will improve employment opportunities and have spill-over effects in other sectors.

The World Bank report also called for addressing the barriers to health and education posed by remoteness, low income, and norms to ensure that all Nepalis are equally able to invest in and use human capital.


A version of this article appears in print on March 14, 2018 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Former king Juan Carlos decides to leave Spain amid corruption allegations

Prosecutors looking into bribe allegations Pressure had been building on royals to take action Former king remains "at the disposal" of prosecutors The 82-year-old helped guide Spain back to democracy MADRID: Spain's former king Juan Carlos has decided to leave his country, a drama Read More...

Ruling party co-chairs stick to their guns

Oli to remain PM till general election, co-chair till General Convention: NCP leader Gokul Baskota Kathmandu, August 3 Co-chairs of the ruling Nepal Communist Party (NCP) Pushpa Kamal Dahal and KP Sharma Oli held talks today in an attempt to break the current impasse in the party, but failed to Read More...

Airlines seek permission to resume flights

Airline companies have to resubmit their proposal for slots if flight operations are halted for more than 60 days Kathmandu, August 3 The government's decision to resume domestic and international flights from August 17 has prompted airline companies to start submitting their proposals to the Ci Read More...

Dhading bans sand mining during monsoon

Dhading, August 3 In view of increasing deaths related to river mining, the authority in Dhading decided to impose a complete ban on sand mining from rivers in the district during the monsoon season. There is already a rule that bans mining of river products using heavy equipment during the ra Read More...

File photo of Melamchi Water Supply Project tunnel.

‘Technical error caused Melamchi tunnel accident’

Kathmandu, August 3 A committee formed to investigate Melamchi tunnel incident has concluded that one of the sluice gates on the tunnel of the Melamchi Water Supply Project had broken due to a technical error. A project engineer and a driver had died due to the flood resulting from the breakag Read More...

reproductive health, Minister of State for Health and Population, Padma Kumari Aryal

Work responsibly, Minister Aryal directs employees

Kathmandu, August 3 Minister of Land Management, Cooperatives and Poverty Alleviation Padma Kumari Aryal has directed government employees to work responsibly as the ministry has the responsibility of protecting the property of over 30 million people of the country. She said this at the annual Read More...

PM visits under-construction museum at his private residence

Bhaktapur, August 3 Prime Minister and Co-chair of the ruling Nepal Communist Party (NCP) KP Sharma Oli today visited his private residence at Balkot and met with people from different walks of life. This is the third time the prime minister has visited his private residence after being electe Read More...

‘Harsher punishment against acid attackers’

Kathmandu, August 3 Women and Social Welfare Committee of the House of Representatives has directed the home ministry to make some amendments to the legal arrangement and punishment related to incidents of acid attack, pointing out the need of timely revision. After the discussion held on ‘a Read More...