Adopt Rational Development Agenda

Our development track record is more a matter of execution than ideas. Nepal has not succeeded in terms of economic growth, employment, public services, and overall quality of life despite the numerous vision statements, planning exercises, and federal institutional arrangements. To reverse the culture of ‘failed development’, we must prioritise institutional, human capital, employment, and resilience-related sectors and strategies.

Nepal’s development challenges are multifaceted and deeply rooted in the system of governance. Political instability, corruption, and the lack of capacity have characterised the country’s institutional incapacity to lead governance. Federalism has further complicated the challenging policy environment, without providing the promised relief in terms of accountability and service delivery. At the same time, Nepal’s economy is excessively reliant on remittances and external trade, with a limited ability to generate employment, domestic investment, and productivity. Meanwhile, disasters and inadequate health security continue to impede the country’s development trajectory. Simply stated, Nepal is facing a fiscal paradox of rising expenditures and inadequate governance in the face of limited economic productivity and revenue.

Public investments

Good governance is fundamental to achieving successful development endeavours. Nepal needs to prioritise institutional reforms and invest in absorptive capacity to identify, assimilate, transform, and use external knowledge, research and practice to strengthen public administration, local governments, and the civil services. This confirmation helps strengthen monitoring and evaluation mechanisms at all governance levels. Depoliticising key constitutional appointments is necessary to obliterate systemic governance challenges.

We need to adopt a job-oriented development strategy in order to achieve sustainable growth. Prioritising investment in sectors that offer the best job-creation potential is most. Public expenditure should be mostly directed towards facilitating the public sector that enables the expansion of public enterprises to build unique value and competitiveness. Job-oriented growth should be the centerpiece of Nepal’s development agenda, with the ability to absorb surplus labour, especially among the youth and returnees from the Gulf.