Time is ripe for economic revolution

It’s high time the Nepalis start thinking of an economic revolution. After a decade-long armed political struggle and more than two years lost in political transition to peace, the country badly needs economic projects to turn Nepal into a new and prosperous Republic.
“After the political revolution, we will the start economic revolution,” the Maoists used to say in the past whenever the entrepreneurs requested them to withdraw bandh and strikes. The last couple of years could not make significant headway as far as development and economic activities are concerned mainly due to the political tug-of-war in the run-up to the Constituent Assembly elections in April.
“We are more or less settled with the political agenda,” Prime Minister Pushpa Kamal Dahal 'Prachanda' said while inaugurating the Economic Summit today. The programme was organised by the Confederation of Nepalese Industries (CNI).
“The country is now ready for the economic revolution. A prosperous Nepal can guarantee a political stability,” he said.The Maoists now seem to have understood the limitation of running a coalition government. The Maoist leadership has all along tried to convince the international community that the party is not opposed to economic liberalisation and foreign capital.
“We will not swim against the tide. The foreign as well as domestic capital will be welcome in new Nepal. Though there are vast potential and resources, the country needs huge capital to harness them,” he explained.
The summit can be considered successful in terms of commitment from all the political parties that are unanimous about the very idea of an economic revolution. The movement — that will bridge the gap between the rich and poor — can also guarantee political stability.
“The objective of the summit is to bring in economic agenda to the centre-stage. How long will politics continue to dominate the national economic agenda? Several conflict-hit countries are faring well in terms of economic development. What we lack is commitment and vision. But, there could be no better time than this to work out on an economic agenda for a prosperous new Nepal,” said Binod Chaudhary, CNI President and a member of the Constituent Assembly.
Incidentally, Chaudhary is the first Nepali businessman to be featured in the Forbes magazine.

Govt committed to economic revolution
Prime Minister Pushpa Kamal Dahal 'Prachanda' said Maoist-led government was committed to an economic revolution along with the logical end to the peace process and drafting the constitution.
“We have three major tasks; logical conclusion of peace process, writing a new constitution and ushering in economic progress in accordance with rising people’s aspirations,” he said inaugurating Economic Summit-2008 organised by the Confederation of Nepalese Industries (CNI) here in Kathmandu today. The three-day long summit sought a commitment for Rs 12,000 monthly income of Nepalis.
“An economic revolution is the key to strengthening the political revolution. Without the economic revolution, a country cannot be politically stable,” the Prime Minister said, adding that Nepal has to keep pace with the changing times. “In the 21st century, no country could live in isolation and we will not ride against the tide but are more focused on our national priority.”
He also sought private-public partnership as well as more investment by domestic as well as international investors for greater employment opportunities.
President of the CNI and Constituent Assembly member Binod Chaudhary welcoming the guests said political ideologies have nothing to do with development and economic growth as our neighbours, China and India with different ideology has become the economic powerhouse in the world. Despite China and India — the rising economic powers — are being our neighbours, Nepal could not even get even a minimum benefit.
“Special Economic Zones (SEZs) in the bordering areas with India and China has to be developed to take benefit from the neighbouring markets,” he said, adding that industriesthat are a key to growth are hit hard. It has only seven per cent contribution in the GDP. In the last decade, the industrial sector’s contribution to the GDP was at 25 per cent.
The supply system has badly hit and the rich poor gap has been increasing, Chaudhary said, adding that Nepal — an agriculture-based country — is at present facing food shortage, and widening urban and rural gap due to wrong policies that has hit the livelihood of most of the Nepalis dependent on agriculture.
“Thus a radical change in agriculture is needed with commercial approach and proper focus,” he said. “A farmer has to pay 14 to 15 per cent interest rates whereas for a car one has to pay only six to seven per cent,” he complained, adding that only 25 per cent land is non-arable but rest of the land is also not productive due to lack of irrigation, proper seeds and fertilisers.
He suggested the government to think like an entrepreneurs and effectively manage the resources. Apart from agriculture, hydropower and skilled manpower export are some of the sectors that need immediate attention for the change. Another sector is tourism that can change the face of Nepal.
But its marred by inadequate infrastructure, airports, the mismanagement of Nepal Airlines Corporation and regular strikes. Trade unionism, and law and order problems are the major hurdles for the industrial sector, apart from lack of good governance and smooth service delivery, he said. He also suggested to create economically viable and well-managed states instead of caste, creed and community-based ones.
J N Khanal, general secretary of CPN-UML stressed on land reforms and agriculture revolution that can change Nepal.