The world now is a liberalized global market where Nepal stands 172nd in investment freedom, 144th in trade freedom and 133rd in financial freedom. The private sector is the main force behind economic growth in major countries in the world. This requires a drastic increase in responsible investments and entrepreneurship, foreign as well as domestic, that have a positive impact on both economic and sustainable development.
UNDP’s Growing Sustainable Business for Poverty Initiative (GSB) targets to facilitate the private sector contributions to poverty reduction and sustainable development through commercially viable activities. It is likely to entail new business models that meet the demands of the poorest and activities that contribute to creating a stable environment which includes strengthening policy and legislative frameworks, creating trust and social capital.
Some rural places that follow tourism as their business are losing impetuous force for local production. Instead we can see some imported packaged products being sold. Trade is crucial in Nepal’s economy. The value of exports and imports taken together equals 53% of the GDP. The fragmented financial system remains vulnerable to government influence and financial supervision is inadequate. We are creating records that have never existed before. The government needs to endorse the grassroots level that has tribal influence.
Some micro-enterprises have already proven that they are not only creating jobs but also enhancing social relations and reducing disparities within and between communities. To maintain a good governance there must be effective decentralization that increases grants to local bodies based on poverty and population levels. The good governance legislation might assist them in creating local resources bases and explore alternative methods of revenue sharing.
It is necessary for all the academia, civil society, private sector and government to play their respective roles in implementing the policies and strive to meet the goals and objective outlined as part of country sustainable development goals.
Economic diplomacy must be handled properly so that new and better markets for Nepali labor will be sought whose outflow will be orderly and better managed. The capital that is gained by citizens living abroad should be channeled into the country through proper and formal banking channels.