By Sitaram Thapa
There are clear indications that the world is going to face an unprecedented economic crisis. Economic experts have already forecasted about the crisis. Strong actors in global politics and economics will definitely use their strategies for the best interests of their own nation and their people. Economically poor developing countries will have to suffer a lot. Nepal’s economy is largely dependent on the remittance revenue sent by its citizens working abroad. Remittance has already started to decline.
Nepal, a landlocked country, does not demonstrate very encouraging messages. The country, for several times, has faced economic blockade in the past. This time, the situation is different due to the global pandemic which shows an unpredictable future in the economy and business. Self-sustaining industries have already been closed and the dependency even for the basic needs has increased suddenly. Nepal, although an agricultural country, the fertile land has left without cultivation for a long time due to lack of proper government attention in encouraging local farmers and the young generation people’s attraction towards foreign employment mostly in the Gulf countries, Malaysia, South Korea etc.
In the meantime, the nation is spending huge amount of foreign currency for citizens’ abroad study as there is the trend among the youths to go abroad for higher education. Nepali youths are keen to go to the United Kingdom, Australia, the United States of America and few other countries. What benefit will the country gain while investing on them for their education is a question!
In the absence of clear national strategies in all sectors, the economy was already heavily dependent on foreign aid and debt. In this unique context of COVID-19, the donor countries, employment providers, educational sectors along with all the stakeholders supporting Nepal are seen to be at financial risk simultaneously. At this critical time of pandemic it will be very hard to sustain a balanced and healthy economic environment for Nepal.
Demand and supply chain has been distorted badly. It is still uncertain how long is it going to take the airlines companies to resume their routine services. Geographical diversity and natural beauty have always been an advantage for Nepal that was able to attract many tourists from different part of the world. Some of the major attractive tourist destinations ranging from the Himalayan region (Everest Base Camp), Hilly region (Pokhara) and the Tarai region (Chitwan National Park, Lumbini), etc are locked down. This has not only affected the entrepreneurs but also to the every employee who are directly dependent on the private sector jobs.
However, there is a little hope that if our stakeholders carefully dealt with neighbouring country China, Nepal could find some solution to overcome the economy affected by COVID-19.
There are two reasons. The first reason is China is less affected country due to its pro-active measures taken against COVID-19 and the second is the allocation of foreign aid by China. A very small basket of the aid is sufficient for Nepal. The vital question is that how Nepal will tackle a friendly, reliable and trustworthy neighboring policy with China that will determine the future of post COVID-19 traumatic situation for Nepal.
(The author can be accessed at 3351865228@qq.com)
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