The concept of branding has been traditionally associated with corporations and their products and services in either the consumer or business-to-business markets. But today the concept is also being used for shaping a country’s image. Nation branding makes a significant difference in forming the perception of a country’s sporting and cultural endeavours, political and diplomatic relations, tourism attractions, investment opportunities and other intellectual and creative productions. Without a powerful and positive reputation or “nation-brand,” no country can think of competing for world attention. If Sony, Toyota and Yamaha were not foremost Japanese brands, it’s hard to imagine that they would enjoy the same prestige. The same applies to German brands like Mercedes, Bosch and Siemens.

A country’s “brand” can help or hinder its exports. A nation can create a brand strategy that shows its true and distinctive self. Nation brand is a fundamental component of every country’s ability to attract foreign investment. We have enormous difficulty in attracting the interest of foreign investors because our national image is poor. For a country to appeal to multinational companies and other international organisations, it must have a positive and attractive reputation — in other words, a good brand image. For all these reasons, a powerful nation brand provides a crucial competitive advantage. A government’s image internationally will affect its domestic economy and policies and vice versa. By the same token, nation branding should be developed in the broadest possible context, helping shape national identity at home and abroad. The private sector can play a very important role in the process of nation branding, but since governments exist to serve the people of a nation as a whole, branding must remain a government function.

Many transition economies suffer from an image forged during earlier political era, and which now obstructs their political, economic, cultural and social aspirations. But Slovenia is one example of a state which has succeeded in recasting perceptions through successful promotion of branded exports, comprehensive and well-funded tourism campaigns. There are others also like Chile, New Zealand, South Africa, South Korea, Ireland, Spain and Australia.

We must understand how we are perceived around the world; how our achievements and failures, assets and liabilities, people and products are reflected in brand image. A country’s brand has an impact on virtually every aspect of its international engagement, and thus plays a significant role in its economic, social, political and cultural progress. Nation branding ensures a faster return on investment. A good brand represents a real competitive edge, and is the single most valuable item of intellectual property that any nation possesses. Knowing how to protect, develop and exploit this asset is the key to translating the intangible wealth of a developing country like Nepal into economic growth.