Economies of the world have been performing well as a result of rapidly changing global and regional economic conditions. Several economies have achieved impressive rates of growth through timely adjustments of key policies and institutional improvements for efficiency. Asian economies outperformed all other developing regions with 7.1% growth rate in 2006 and is expected to strengthen its dynamism in 2007 with 7.6% growth rate despite increasing oil prices and signs of financial volatility. South Asia, which includes three least developed countries and two badly conflict-affected states, has performed an average of 7 to 8 per cent growth annually during the last three years and is expected to maintain robust growth this year with 7.7%. According to the Asian Development Outlook (ADO) 2007, Nepal’s immediate neighbours, India and China, had achieved 9.2% and 10.7% growth respectively in 2006.

Despite such an impressive performances by our neighbours and remarkable growth prospects and promising outlook in other developing countries, including SAARC members, economic situation in Nepal remains disappointing and dismal. Growth rates have remained in the range of 2 to 3 per cent over the last five years (2.3% in 2006) and there is no indication of any improvements, as the ADO 2007 estimates Nepal’s growth rate to be 2.8% for 2007 and 2008. Neither are the people confident about the political settlement and stability as was the expectation immediately after the Jana Andolan II.

The dismal situation is prompting the citizens, especially the youth, to ponder as to what would be the future like for them? What kind of political leadership would emerge and how critical issues of governance and representation would be dealt with and would the leadership be sincere in reforming the state structure and working for social transformation that is needed for modernisation and economic prosperity? Would the private sector, both domestic and foreign, be able to gain confidence and trust and be able to work in tandem with the public sector? Would the leaders bring more cooperation from development partners and would the partners sincerely support us?

The current leadership has, however, not yet been able to respond appropriately to these concerns. Most importantly, the answers to these questions would be found only after holding the much-awaited constituent assembly (CA) elections and its outcome. Therefore, free and fair election to the CA, appropriate and able candidates’ selections and truthful abidance to outcome of the election are critical elements for setting solid foundation and for building the nation’s future.

Failure to move quickly and in a more deterministic manner would not only result in being left out from the mainstream development course and the way to economic prosperity, but would also lead to a new round of domestic conflicts and anarchy that could even result in national disintegration and eventual state failure. The ADO 2007 correctly points out that Nepal’s current and urgent challenges are huge, that include widespread poverty, pervasive social inequality, low economic growth and the legacy of a quasi-feudal political structure. It is about time Nepal discarded all useless traditional and outdated political, social and economic elements, as it needs to move swiftly towards productivities, efficiencies and equitable distribution of power in building a modern and progressive nation. Nepal needs to clear many backlogged unfinished reforms for which efficiencies in legislation and governance are of dire necessity.

How can all these be achieved? Who would take the initiatives? We were all hoping that the leaders would get things going more efficiently and sincerely. The restoration of the House of Representatives and the opportunity to govern the country as a multiparty alliance had indeed provided a unique opportunity to them. There is a dire necessity of civic engagement in sensitising and educating the masses, especially the electorates for their responsibility in properly understanding the utility of the CA elections and urgency of electing the right representatives not merely on party lines but more on candidates’ merit. While the need for strengthening of multiparty democratic system is of paramount importance to deepen democracy and human rights, it is equally important that the parties also be pressurised to discard outdated, corrupt and insincere politicians and a new breed of young and energetic leaders be allowed to emerge. Besides the parties, the civil society organisations need to enlarge their civic engagement and force the parties to remain on proper course and stick to their objectives. They need to gear up its strength and educate the people about their responsibilities. The other NGOs, human right groups, development partners, private sector and all other civic organisations should assist each other.

Dr Dhungana is an economist