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Event Report

Joint webinar on Strategy for Nepal’s Economic Development: Views from Nepali Diaspora and Professionals by NIICE Nepal. The key speakers of the event were – Dr. Krishna Hamal, Mr. Ganesh Gurung, Prof. Tulsi Dharel, Dr. Bhanu Neupane, Dr. Balram Sreshtha, Mr. Hikmat Thapa, Dr. Nalini Subba Chhetri, Prof. Shiva Gautam.

Dr. Krishna Hamal

Dr. Khanal explains that Australia has a relatively small position as compared to Nepal. Australia is often times seen at a favourable position due to its geographical interface as well as the infrastructure of workforce, both factors which assist the country in one of the leading positions in the geopolitical economy.

As compared to Australia, even Nepal has contributing factors that makes it a flourishing place to live in. however, Dr. Hamal claims, since Nepal is indefinitely a landlocked country, the contributing factors do not make up for much of the development. Thus, as a solution to this, Dr. Hamal recommends focusing on Nepal’s contributing factors to make it a better sustained country, rather than to focus on the mainstream export-import market. With this, Dr. Hamal fixates on providing quality education in Nepal.

One of the biggest problems Nepal faces is in successfully being able to attract investments because of the political instability amongst bureaucracy and other developmental reasons. Dr. Hamal suggests, the country should start redirecting its resources towards commercialization of its farming and agricultural sector, relying on the examples provided by India to increase the country’s productivity.

Dr. Hamal points out, since the domestic market in the country is relatively smaller, it has an advantage in growing the export market efficiently. However, to do this, the government should be given a variety of incentives to the exporters aside from being diplomatic to strengthen the export-import market relations between collaborating countries. Being a landlocked country, Dr. Hamal focuses on building friendly diplomatic relations to make the leadership of the country better in terms of security as well as economy.

Mr. Ganesh Gurung

Mr. Gurung elaborates the friendly diplomatic relations that exists between Brazil and Nepal, which have existed since the foundation of the two countries. Notwithstanding the geographical factors of distance between the two countries, they have always had similar views in regards to promoting third world issues and the interests of developing countries in order to achieve a fair and equitable international order.

The honourable speaker speaks about various sectors the two countries can collaborate in, in order to achieve this view. However, he focuses on business relations and forming netter bilateral relations through sports and games, specifically football.

Prof. Tulsi Dharel

All countries possess different geopolitical situations. Nepal and Canada have a plethora of similarities but also dissimilarities, which both countries can piggyback on in order to improve their geopolitical situations. Prof. Dharel proposes three ways of thinking the development through, i.e., independence, interdependent, and over dependence. Through these three schools of thinking, Prof. Dharel recommends that any country should be more interdependent than independent or over dependent.

For example, South Korea is considered to be one of the booming economies which is extremely developed because of having a sturdy foreign investment base. Thus, Prof. Dharels fixates that the Nepalese strategy should be to easily allow foreign investors to enter the market and benefit from Nepal, while Nepal may also benefit from such investments.

He also suggests that a country should focus on its absolute advantage to make its outlook better. Hence, Prof. Dharel recommends the Nepal strategy to focus on its absolute, competitive, and comparative advantage to drive in foreign investment, i.e., the most proximate absolute, competitive, and comparative advantage being the flourishing tourism industry in Nepal.

Dr. Bhanu Neupane

France developed and economic model that helped it to become amongst one of the leading powers in the world today after the disaster it faced after the World War Two. To do this, the French government focused on both the economic as well as the social construct of the government. Since 1945 to 1975, France grew tremendously at a rate one cannot believe.

Dr. Neupane believes Nepal can also do it. Thus, he suggested a similar take on the Nepalese policy. By taking advantage of the young Nepalese economy, the country can divert its interests towards a rather digital economy and embracing artificial intelligence. By doing this, it will not only be supported by technical development, but it will also get a chance to catch the train to a sustainable country in the geopolitical map as well. This is because, it is reported that more that the world will be running on an artificially intelligent base by 2030.

Dr. Neupane recommends, in this manner, that Nepal can participate in being a candidate country for such trials and processes in the G5 Movement. Furthermore, by going through this route, Nepal also has the option of commercializing its artificially intelligent economy and earning more and more foreign investments which will assist the country in following its economic and social agenda in a more flawless manner.

Dr. Balram Sreshtha

After the infamous Hiroshima Nagasaki Atom Bomb Attack in the wake of World War Two, Japan was not in a good condition. This is because America had succeeded in colonizing the country and Japan felt like a country full of mere prisoners. However, not long after the attack, Japan raised on its two feet and is now one of Asia’s leaders in many fronts.

To do this, Jpaan adopted several techniques. It adopted democracy rather than any other form of governance because it was a country that supported its people more than anything else. Thus, of the people, by the people, for the people was the way they chose. After such steps, it ensured a drastic increase in employment by focussing on its absolute advantage of resources.

Thus, following the Jpaanese, Dr. Sreshtha suggested the Nepalese Policy to also inculcate its absolute advantage of a plethora of resources to bring an economic as well as social advantage. This is possible even though it is a landlocked country.

Mr. Hikmat Thapa

Economic development is one of the most prominent issues countries in today’s geopolitical order face. The same is the case of Nepal. Mr. Thapa suggests, to improve the economic development in Nepal, the country should focus its resources on business and entrepreneurship to increase foreign investments in the country which will further lead to a steady pace of economic development.

However, Mr Thapa also commented, that such investors may not be attracted to a country which is prone to political instability leading to a decrease in its output. Building on this, he claimed that when there is a lack of mere internal support from the government, it is difficult to ensure external support by way of investments. Thus, Nepal should build an appropriate foundation of law and order to prevent a corrupt bureaucracy and remove the biggest concerns of foreign investors. This has to be ensured so that the foreign investors can also be ensured that they will receive a good return of investment by investing in the Nepalese economy.

Dr. Nalini Subba Chetri

All developing countries seek a method of growing sustainably as well as efficiently. However, one of the most essential points that Dr. Chetri discussed was to not leave ‘economic’ development to the economy alone. A good economic development model is supported by all three structures of economy, society, and politics in order to work properly and flourish.

Being a country having a landlocked nature, Nepal must make its people the first priority. However, Dr. Chetri also commented that the Nepal economy, as a collection of people, should also attempt to resolve issues amongst themselves, rather than relying on the government to resolve conflicts. This will not only create an inclusive community, but it will also lead to a country which is sustainable on its own with minimal state interference.

Prof. Shiva Gautam

The Nepalese developmental model, despite being promising, has been caught in a twist. Thus, to assist the instant situation, the panel has provided with a wide range of solutions. Prof. Gautam insists that the management of resources must be improved in order to make the country economically interdependent and at par with its neighbours in the geopolitical map. To do this, it has to address one of the most important downsides as soon as possible. That is, the country has more imports than exports, which drains out most of the country’s resources.

Being a landlocked country, Nepal must focus on its people more than any other factor of influence. Thus, needless to say, Nepal should ensure quality education, leading the youth of the country towards an affluent future. Moreover, amongst such quality education, the Nepalese strategy should inculcate the possibility of a digital economy in order to shift the country towards artificial intelligence and development.

Prepared by Poulomi Chatterjee, Intern at NIICE, Nepal