Consensual Approach

The new government, led by Balendra Shah, has adopted a consensual approach to spur development, good governance, and social justice. The initiative to take all national political forces into confidence regarding the matters of economic development will set a new political culture in the country. Following the resounding victory of the Rastriya Swatantra Party (RSP) in the March 5 general elections, the old political parties harboured an inkling that they would not be given due importance in the affairs of the state. But the new administration has adopted a democratic tone and sought inputs from them so that its policies and programmes will be effectively implemented and avoid controversy. 

In the spirit of collaboration and co-work, the government on Tuesday unveiled an 18-point National Commitment that includes the policies and agendas of six political parties represented in the new parliament. They are based on their election manifestos and promises made before the people. The common ground covers the topics of governance efficiency, the private sector, digital transformation, global information and environmental sustainability. Policy intervention forms the cornerstone of the document. In the past, flawed policy and partisan tendencies took a heavy toll on development and the governance system. A handful of elites used to influence the governments and their policies to suit their vested interests.  

In a bold step to promote good governance and carry out sweeping reforms, the government is geared towards ending rent-seeking, policy capture, cartels and artificial shortages, thereby ensuring fair competition, entrepreneurship and a business-friendly environment, according to a news report of this daily. For this, predictable tax policies (at least 10-year stability) and simplified procedures are on the anvil. With the frequent changes of governments, the country suffered policy inconsistencies in the past, affecting a wide gamut of the public and private sectors. The government must enforce a paperless digital system to overcome these inherent anomalies. 

Currently, Nepal has a 65.5 per cent active population according to the 2021 Census. But the country is unable to benefit from the demographic dividend. The National Commitment aims to capitalise on the energetic youths who can unlock development potential with enabling laws and investment. Without the meaningful participation of youths, Nepal can't push structural changes and attain middle-income status through production-led growth. Nepal's constitution has recognised the role of the private and public sectors in the development endeavours. The document considers the private sector the engine of growth and the government as a facilitator and regulator. The government will bring out a time-bound Economic Charter based on consensus among major political parties.

The government has set ambitious goals of achieving 7 per cent economic growth, US$ 3,000 per capita income and US$ 100 billion gross domestic product in the next five years. Likewise, it aims to generate 30,000 MW of electricity in the next decade. The document spells out strategies regarding health, education, good governance, foreign policy and ecology. It is imperative to implement national and sectoral policies to form capital, create employment, boost exports, and maintain macroeconomic stability. With a strong government in place, the country is in a better position to revamp policy and restructure the bureaucracy. The political parties are expected to welcome the government's initiative and offer their constructive suggestions to the government poised to take the nation in the direction of lasting peace, stability and prosperity.