Policy For Consensus Development

Amidst the lingering economic crisis facing Nepal, the government has come up with various programmes to promote good governance and realise fast economic growth. In its newly-unveiled policy and programmes for the upcoming fiscal year (2025-26), the coalition government has also announced plans to foster cooperation and collaboration among the ruling as well as opposition political parties through holding talks for amending the constitution. Given the rising threat posed by some regressive forces to the present constitution that established a federal, republican and secular democratic system, the government has committed to countering any anarchic attempt effectively. 

The policy document is in line with the minimum common programme of the ruling CPN-UML and Nepali Congress. The two largest parties were able to form this government more than 10 months ago with the main purposes of ensuring political stability in the country, improving the service delivery, reviving the national economy, accelerating the process of overall development and amending the constitution based on broader political consensus. However, even the leaders from the governing parties feel that much remains to be done to achieve these objectives. Protracted political instability and policy uncertainty have been detrimental to investment promotion and economic development. Potential investors were reluctant to invest due to fear for policy changes. Realising this, the government aims to ensure political and policy stability by promoting healthy competition, dialogue, cooperation, and coexistence among political forces. 

Entrepreneurship

The existing sluggish economy is mainly attributed to the reduced market demand. The government has been making all-out efforts to boost investment in numerous sectors within the country. But, it has failed to do so. Banks and other financial institutions have sufficient liquidity them. But, they have also been unable to disburse loans with falling demand.  In a bid to deal with this problem, the government is going to concentrate its efforts on developing entrepreneurship, increasing productivity and creating more jobs within the country. Commercialisation of agriculture is essential for promoting entrepreneurship and generating employment opportunities. In our country, this sector still remains neglected. A lot of arable land in the country is barren. If unemployed youths get necessary training and incentives, they may be attracted towards the agriculture sector. 

The federal government now seems to have considered this. As per the document, the three-tier governments will carry out the tasks of agricultural commercialisation and infrastructure development through coordination. The government appears to have given continuity to many previously announced development programmes. It has introduced only a few new programmes owing to a fall in public resources. Over the years, the country has witnessed a remarkable decrease in revenue collection and foreign aid and grants.  

Meanwhile, the government aims to develop an integrated project bank system to avoid duplication of development projects. This policy is commendable as it helps save resources. The federal, provincial and local governments will also have coordination in planning for development projects falling under concurrent jurisdiction. This can help enhance coordination and collaboration among the three-tier governments. Similarly, the government is going to reassess and reprioritise infrastructure projects announced earlier. It also plans to classify projects, schedule for completion within the fiscal year or the parliamentary term, while it will scrap those that are considered unachievable. 

The government seems to be determined to follow the comprehensive suggestions given by the High-Level Economic Reforms and Recommendation Commission. The government also seems to be serious about curtailing excessive expenditures by dissolving or merging unnecessary public structures. It is necessary to adopt austerity measures to manage the limited resources for development activities. The government intends to digitise public service delivery through expanding ‘faceless services’ and further developing the Nagarik App. It plans to develop Nagarik App as the key tool for providing services and making all possible services online. 

Nepal’s international image has now degraded as the Financial Action Task Force (FATF) has greylisted the country. Such an unfortunate condition has emerged because of the country’s inability to meet the standards set by the FATE and also to follow international practices. Any country can face this situation when its legal framework and anti-money laundering regime are not in compliance with the FATF in terms of combating financial crimes such as money laundering and terror financing. Anyway, the government is set to upgrade Nepal to a full anti-money laundering compliant nation by the year 2083 B.S. 

The government is also committed to making necessary reforms in school education. It wants the parliament to endorse the School Education Bill during the ongoing budget session. It aims to make reforms in higher education, making this research-oriented. Similarly, it will work towards formulating an entrepreneurship-friendly education policy by revising curricula and teaching methods to produce skilled human resources. As part of its entrepreneurship development initiative, the government is in the process of promoting startups targeting youths. This campaign may help check the burgeoning trend of out-migration. 

In its new policy paper as well, the government has introduced its plan to restructure Nepal Airlines Corporation (NAC). It aims to look for a strategic partner for the national flag carrier to develop it as a vibrant commercial entity. For achieving a sustained tourism growth, strengthening the NAC is essential. In the past, several recommendation committees had asked the government to restructure the airline and improve its management. But no concrete effort has so far been made in this connection.     

The government has also promised once again to return deposits to victims of cooperatives. Hundreds of thousands of such victims have waited for the government’s result-oriented action. The previous government had also announced that it would return depositors’ money up to Rs. 500,000 in the first phase. But, that statement did not come true. All the promises made by the government in its policy document must be reflected in the coming budget in an attainable way. 

(The author is a former deputy executive editor of this daily.)