The arguments put forward to keep the country as an LDC sound plainly absurd, devoid of any ambition to move forward

The government has decided that Nepal will retain the status of the Least Developed Countries (LDCs) for the time being. The decision means the government will now request the United Nations Committee for the Development Policy (CDP) to provide additional time for Nepal to graduate to the league of developing countries. According to the earlier plan, Nepal would have graduated to the league of developing countries from the status of the LDCs by 2022. The government decision to “remain” as an LDC follows the National Planning Commission (NPC)’s call to this effect, arguing that it is not the right time for Nepal to move beyond the status of the LDCs, as the country has just emerged from the decade-long armed conflict and the devastating earthquake of 2015. Experts, economists, the private sector and even academicians, according to NPC officials, during interactions had said that country would face profound consequences if Nepal were to graduate to the status of developing countries.

The main concerns that have been expressed are that the country will lose the international assistance that it has been receiving as an LDC if it graduates to the league of developing countries. LDCs are the major beneficiaries of the developed countries’ commitment of providing 0.75 of their gross national incomes as official development assistance. The European Union has been providing trade preference facilities to LDCs. The EU has also a provision of extending this facility after the LDCs graduate to the league of developing countries for three years. The US government has also provided trade preferences to the LDCs and Nepal is one of the countries which will enjoy such preferences till 2025. Apparently, the reason goes, such preferential facility will no longer be available to Nepal if one of the world’s youngest federal democratic republic turns into a developing country. The arguments put forward to keep the country as an LDC sound plainly absurd, devoid of any ambition or imagination, to move forward. How can a country choose to stay in the midst of dozens of nagging ills because these bring us fringe benefits?

The decision to stick to the status of the LDCs is a backward one. At a time when we are talking about prosperity through stability, especially after a majority government under the left alliance led by KP Sharma Oli, such a decision not to join the league of developing countries does not bode well for the country. A decision to remain an LDC “just because we will lose fringe benefits if graduated to the status of developing countries” does not hold water. Trade preferences given to the LDCs by developed countries are not the long-term solutions. They will simply create over-dependency on the developed countries and foreign aid. Nepal has more workforce—about seven million—than the aging population, and this is the big asset to accelerate development. The young population which is migrating abroad for employment can be roped in for infrastructure development which will ultimately open up boundless job opportunities. To repeat, the decision is but a backward move, if note regressive.

No smokescreen

The Ministry of Population and Environment (MoPE) has said vehicles that emit smoke exceeding the emission limit set by the government will be taken off the roads starting from April 14. Minister for Population and Environment Lal Babu Pandit announced the move on Tuesday. According to a study conducted by the Ministry of Environment 10 years ago, Valley’s transport system was the main reason behind increasing air pollution. The study showed that vehicles contributed to around 38 percent for air pollution.

A few months ago, the Office of the Prime Minister and Council of Ministers had also initiated inspection of emission levels from major pollutants, including vehicles. During the inspection, it was found that more than 50 per cent of vehicles plying the Kathmandu Valley roads “exceed the emission levels set by the government.” Interestingly, vehicles that were given “green stickers” by the Department of Transport Management were emitting more smoke than the emission level set for them. This shows that the problem is not lack of laws or regulations but ineffective implementation. While the MoPE announcement is a good move, it all depends on its implementation. Or else it will just turn out to be nothing but a smokescreen.