By Sharachchandra Bhandary
Kathmandu, 14 April: The year 2079 has piled up many challenges for the Nepali society. If the political leadership is not able to instill confidence in the citizens of all areas by showing wisdom, the new year 2080 may be more challenging.
It is unfair to say that the past year was without achievements. The elections at all levels were relatively free and peaceful. From the local to the federal level, elected representatives of the people have taken charge.
Now, if the leadership has common sense and sense of responsibility, the way to solve the economic and social problems faced by the country is well known to all leaders of the three tier of the government. People have also expressed their desire for balanced change and stability through voting.
From an economic point of view, the year 2079 was a year of extreme disappointment. Due to government’s recklessness the economy suffered more shocks. The government did not fulfill its responsibility to revive the economy weakened by Covid-19.
When the rulers thought that the state would be strong only by ‘controlling’ the private sector, there was chaos everywhere. The government machinery could not increase capital expenditure , nor could it collect targeted revenue. This is an example of extreme failure.
The loss of confidence in the private sector is the biggest setback for the country and the rulers share the biggest chunk of pie in putting the country in quagmire. Perhaps that trust will not return without a major and special effort from all sectors to give boost to ailing economy.
The economy suffered a lot due to the unprofessional tussle between the finance minister and the governor of the central bank , the secrecy of the budget writing was no more confidential and was manipulated by a retired clerk , the suspension of real estate transactions without any study, and the unexpected increase in interest rates, to name a few reasons. Directly and indirectly, the main culprit seems to be the government.
In order to take a corrective course, the government should be serious and progressive for reforms. By appointing a finance minister who understands economics, the government seems to be on the road to reform. Now the political leadership of the government must demonstrate will power, honesty and perseverance.
First of all, it is necessary for the government to free the state apparatus from the control-oriented liberal mentality. Then the government should adopt transparent and fair measures to increase capital expenditure and revenue. It can increase enthusiasm in the private sector as well.
The new year brings with it challenges as well as opportunities. In principle, the finance minister has been appointed as a supporter of the private sector and liberal economy. At the same time, a new leadership has also come to the representative organization of private sector entrepreneurs.
With the new election of Federation of Nepal Chamber of Commerce and Industry (FNCCI), the new leadership is expected to create conducive environment in employment generation and investment promotion as the private sector is the engine of growth.
The finance minister should be able to show more faith and passion for improving country’s economy. The Prime Minister and the leaders of the ruling party should give him full support. Especially the leader of his party should not put undue pressure.
The economy can move forward again only if the lost trust in the government can be restored in the private sector. For that, it seems that there should be a radical change in the government’s working style from reforming the laws and regulations. At least the ‘culture’ of paying bribes to should end.
If the administrative hassles will be removed and the regulations made by the government will be predictable and transparent, then there will be no tension between the private sector and the state as it is now. As a result, investments in venture businesses will also be less risky.
If the businessmen can be convinced, the investment will start to increase. In that case, foreign investors will also be assured. When the investment starts increasing, the economy will be robust, and the economic upliftment of the country will be possible following the increase in employment and business.
Not only in politics but also in business, a new generation has started to emerge as a leader. Therefore, it is possible to start innovative thinking and practice by abandoning professional narrowness like political fanaticism. Let’s hope, Finance Minister will at least not allow the past distortions to repeat.
May the new leadership of the FNCCI show enough courage to face the challenge of removing the inconsistencies and weaknesses shown in the economy by restoring the trust of the private sector that has been lost due to the government’s behavior. Congratulations and best wishes for success to all those elected as new leaders of FNCCI.
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