Present time should be utilized as opportunity for ‘course correction’: Economists

Kathmandu, Sept 12: Economists have opined that although the country has suffered significant physical damage due to the vandalism and arson took place during the demonstration of the Gen Z, the private sector should make good use of the current situation as an opportunity for a course correction.     

They expressed such an opinion in the virtual interaction on the topic 'Challenges of the Economy in the Current Situation and the Path Ahead' organised today by the Society of Economic Journalists Nepal (SEJAN). They argued that Gen Z were protesting against the misrule and rampant corruption prevalent in the country.     

Former Secretary of the Ministry of Finance, Rameshwar Khanal, emphasised that the citizens rising together against corruption across the country should be viewed positively.     

"It is an achievement for us that citizens across the country are united against corruption under the leadership of the new generation. Issues like constitutional amendments are linked to this," he said, adding, "Now, taking advantage of this opportunity, the government should prioritise reconstruction, creation of new investment opportunities, and boosting investor confidence."     

Former Secretary Khanal said that the current problem is caused not by a natural disaster or a pandemic, but rather a man-made problem internally, making it difficult to receive assistance from donor agencies.     

“Such a situation was also seen in the year 2036 BS and during the period of Maoist conflict. At that time, there was significant damage to physical structures, with major damage to roads and bridges, and communication services were completely disrupted. But that situation no longer exists, so we do not think there will be a major problem in rising again.”     

Former Secretary Khanal also stated that Nepal is quick to 'recover' compared to other countries, making it a positive aspect for the country to be headed towards stability right after the Gen Z popular movement. He mentioned that this movement also sent a message to the rulers to correct themselves by eliminating corruption and misrule.     

He shared, “The demonstration launched by GenZ group raised those issues, and the form the demonstration took has helped to adopt zero tolerance to corruption and destroy the web of capitalism. It helps to end corruption in the country in the coming days.”     

 The former secretary mentioned that it would not take a long time to recover as the demonstration had not made much destruction in remittance, agriculture and tourism sectors that have a great contribution to the economy, but it is essential for the media to be truthful and restrained while providing information for it.     

“The media should be restrained. Some of the incidents, including torching Bhat Bhateni Super Market and Hilton Hotel were occurred due to political revenge. Such incidents should not be repeated. There is a great role of the media for a strong economy and society building,” he opined.     

Similarly, economist Dr Samir Khatiwada commented that the Gen Z protest has given Nepal an opportunity to Nepal for course correction.     

“The demonstration tried to dismantle crony capitalism. The new generation has given a message of building a society with good governance. It is also an opportunity to exit Nepal from the Financial Action Task Force (FATF) grey list”, he viewed.     

Khatiwada argued, “There is a huge potential in tourism, an important sector of the economy. There is also fear that foreign tourists might be distressed due to the problem at Tribhuvan International Airport. The government has to make positive publicity in the international arena.”     

He pointed out the need to adopt an open, transparent and independent policy in the economy, stating that there would be a huge impact on direct foreign investment due to Gen Z protests.     

The foreign investment we have been bringing is only 0.3 per cent of the total gross domestic product. So we don't need to be much worried, he mentioned. (RSS)