How prosperous a nation is depends on how different localities, urban centers, and people in them fare economically. A country as a whole provides

the economic, political,

and institutional framework in which different players function. But typically certain commercial centers lead the way so that the prosperity of the peripheral localities and sometimes the entire nation depends on how efficiently

such leading centers can ‘sail the boat’. A thriving Kathmandu is an enormous accomplishment for the

city residents and the nation in general.

Kathmandu’s growth is propelled by the booming real estate, construction, finance, trade, education, and healthcare sectors. These sectors are highly interrelated in that growth in one feeds well to that in another. Rising real estate prices, for example, maintain a ‘forward linkage’ with construction as people able to capitalize on them would typically try to maintain a constant flow of income by building houses for residential or commercial purposes. Growth in these two sectors would in turn increase the demand for capital helping finance and investment companies to thrive. Also, because the current rise in economic activities in Kathmandu has stemmed from an influx of population, other sectors of the economy including

trade, education, and healthcare benefit greatly. With extension of the

ripple or multiplier effects among these and other sectors of the economy, a thriving Kathmandu is a cause for celebration for most of the populace.

At minimum, the metropolis has been a source of tremendous business, education, investment, and job opportunities. As a result of growth in economic activities, the gross domestic product has expanded, increasing the overall incomes in the metropolis. Increasing sense of consumerism and the ability of consumers to afford products and services suitable for the 21st century lifestyle have expanded opportunities for businesses and investors. Manpower and technology solutions, banking, investment management, schools and colleges, hospitals, construction, and real estate have transformed into some of the most thriving business sectors. The fact that emerging investment banks and other public holding companies have turned down investment applications indicates that there is tremendous room for investment opportunities to grow. The rate of growth in private, for-profit schools, colleges, and hospitals in Kathmandu is probably unparalleled in the world. The services sector has afforded enormous opportunities to both consumers, who were previously deprived of such services despite their abilities to pay, and businesspeople and investors, who could make profit by serving people in innovative ways.

Growth in the communication and transportation sectors is another example which has allowed people to be increasingly mobile. The new transportation modalities with a mix of busses, mini-buses, microbuses, and others have connected almost every neighborhood to the core of the city, allowing people to move around for jobs, visits, and shopping. The modern communication system with mobile phones and the Internet has also promoted mobility by helping people to stay connected while at home, at workplaces, and on the go.

During the decade ending in 2004, for example, data indicated that the proportion of the population in poverty declined in Nepal registering an even more progressive decline in Kathmandu. Research findings have indicated that the reduction in poverty is attributable, in part, to the growing remittance monies received from vastly growing foreign employment in the Middle East, East Asia, Europe, and the United States.

Depending on one’s ability, the market has provided a range of goods and services and allowed greater choice, convenience, and flexibility. Be it in real estate and housing, in importation of consumer goods and services, or in other areas, greater economic activities allow the government to increase its tax revenues. As the mainstay of the budget, tax revenues help governments fulfill their populist ambitions. The fact that the size of the government budget has expanded enormously during the past few years alone even beyond the deteriorating value of money indicates that the thriving city is in the best interest of bureaucrats, politicians, and the public.

From the standpoint of the public, moreover, growing economic activities help incentivize entrepreneurship and hard-work. Innovation, investment, and risk-taking, which are the hallmarks of modern capitalism, appear to be fully at play. Not everyone can be enterprising and risk-taking but growing business activities greatly increase employment opportunities for the public in general. This has helped the city economy to move well beyond its public sector intensive status as recently as only a decade ago to a mixed model in which employment does not just connote jobs in the public sector. In one sense, this is a win-win situation for everyone.

Dr. Wagle teaches at

the School of Public Affairs and Administration, Western Michigan University, Michigan, USA