The preamble to the agreement on broad unity between the National Independent Party and Kathmandu Metropolitan City Mayor Balendra Shah mentions a phrase at the beginning - to address the aspirations of the common citizen by establishing good governance within a pluralistic democratic system that believes in a liberal economy with social justice.

Even after this agreement of the Rashtriya Swayamsevak Sangh (RSS), which has come forward as a new force, no concrete policy for the country's economy has been made public yet. However, the preamble has indicated that the policy will be formulated in a way that includes both social justice, i.e. socialism, and an open economy, i.e. capitalism, like traditional parties. 

By traditional here, the Nepali Congress, after repeatedly falling behind in the elections, put forward the issue of 'liberal economy with social justice' after pressure began to come on Dr. Ram Sharan Mahat, who was the Finance Minister. Even in the political change of 2046, even though the Congress was said to have embraced capitalism, it was a mixed economy. The party established on the foundation of BP's socialism was not capitalist and could not be. 

The CPN-UML, which came to power for the first time in 2051, made distribution the main issue and did not obstruct the private sector from working. After the then Finance Minister of the UML, Bharat Mohan Adhikari, decided to provide three lakh rupees to each local level with the slogan 'Let's build our own village', it seems that the UML gained more strength to establish itself. The UML, which was emboldened by this, was not about to abandon its distribution-oriented policy, and the Congress was also under pressure. Then came the distorted 'Parliamentary Development Fund' scheme, which further diluted the distribution. 

The Maoists, which emerged from the armed conflict, do not seem to have been able to clarify their economic policy. Now, the Maoists, which has become the Nepali Communist Party with many components, are not likely to come up with a clear plan immediately. 

The economic policy is also not clear in the document presented by Gagan Thapa, who became the President of the Nepali Congress from the special general convention. When he was the General Secretary, he had debated about increasing employment. However, his campaign was not able to gain much momentum when the issue of investment required for employment was ignored. 

Janmat Party President Dr. CK Raut seems to be a little clearer on the issue of identifying obstacles to economic reform. Recently, at a program organized by the Federation of Nepalese Chambers of Commerce and Industry on ‘Cooperation for Peace, Stability and Prosperity’, he had said that it was natural for the private sector to fail to flourish in a country where both the people and the government prefer socialism. Since the constitution mentions ‘socialism-oriented economy’, it is natural for investors to be skeptical. 

A liberal economy with social justice implies a policy system that allows the private sector to work and distributes the revenue generated from it to advance the backward or marginalized communities. However, looking at Nepal’s practice, neither of these things worked as intended. Instead of allowing the private sector to work, we enjoyed distribution. As the private sector gradually shrank, the government’s liability began to increase due to distribution. After that, the government adopted a policy of pressuring revenue offices to collect taxes by setting targets.

The success of the Finance Minister and other high-ranking officials of the Ministry of Finance was linked to higher revenue collection. This has been accelerated since Dr. Baburam Bhattarai was the Finance Minister and the current Finance Minister Rameshwor Khanal was the Finance Secretary. The customs revenue from imports increased by remittances continued to provide the government with a surplus. The government did not lack money due to lack of spending capacity.

After the Covid pandemic, which spread at a time when income and expenditure management could not be managed in the new structure after 2072, the foundation of the Ministry of Finance was shaken, and expenses increased. Revenue decreased due to Covid and did not increase as expected. Basically, investment continued to be discouraged due to policy ambiguity, instability, and bureaucracy. Then there were the protests on 23 and 24 Bhadra.

Currently, the morale of Nepal's private sector is low. Basically, due to policy instability and lack of good governance in the government mechanism, the private sector, which has been reluctant to invest since the Covid outbreak, seems to have tied its hands recently.

The amount that can be invested immediately in the banking sector has reached around 1.2 trillion. Even when the average interest rate has fallen below 8 percent, the private sector is not ready to take loans and invest. According to a study by Nepal Rastra Bank, industries are operating at only 44 percent capacity. About 81 percent of the revenue target has been collected by Poush. 

Despite this, there are signs of a general improvement in the economy. The industries registered with the Department of Industries as of Mangsir show that foreign investors are still interested. Both imports and exports have increased. Remittances are increasing. Foreign exchange reserves are sufficient to cover 18 months of goods and services imports. 

However, if we do not intervene sufficiently now and put the economy on the right track, it will not take long for the reserves to run out and interest rates to rise. Investment may also flow into areas that will not benefit the economy in the long term. Once again, we will make short-term and unpleasant decisions in the name of reform and establish the narrative that the private sector is not responsible. This is what has been happening in the last 20 years. 

The need for a new phase of reform was also felt before the last movement. For that, the 'Economic Reform Suggestion Commission' was also formed. The commission has also suggested some reform issues. However, in the face of changing circumstances and the possibility of the emergence of new parties, what the economic policies of those parties will be should be a matter of public interest. 

Just as new parties and leaders are being born in the changing situation, new ideas and debates about running the economy are not happening. This is also necessary to address the demands of the young generation (Gen-G). 

Because the movement of the young people (Gen-G) is also about ensuring that they can do their jobs and businesses with respect, decent employment and self-employment in the country. However, for this, the parties should also make their plans public. The same agreement between the Rashtriya Swayamsevak Sangh (RSS) and Balendra Shah includes the issue of 'making a middle-income country in ten years', but the issue of how will probably be made public soon. Gagan Thapa is also going to make his policy on the economy public. 

Other parties have also raised such issues in speeches, statements or agreements by giving various slogans and setting dates. For example, point number three of the seven-point agreement between the Nepali Congress and the UML to form the government recently mentioned issues ranging from creating a business environment to creating an environment for attracting foreign investment. 

What is the problem? What to do and how to do it? Without answers to these basic issues, it is still not possible to be convinced. It is also necessary to get votes for the parties. 

It seems that voters should also be serious about issues related to their future. The parliamentarians we elected have the right to tax us. That is, they can reduce or increase our income. They can control our behavior through other policies and regulations. They can increase or decrease our employment or self-employment opportunities. They can create problems for entrepreneurs and businessmen by making rapid policy changes, which can not only reduce entrepreneurship but also lead to capital flight. The services and security we pay to the state in return for the taxes we pay can increase or decrease.

In a way, our vote is like a paper signed with the words 'control yourself'. Its own policy determines what kind of party it is and how its work will be in the future. Therefore, since the main policy related to the economy has not been clear and the existing policy is not credible, some alternative suggestions have been presented. 

The proposed policy here is a new inclusive economic policy. It refers to an inclusive policy with innovation or new technology and thinking. It can encompass the positive aspects of capitalism and socialism, but not a mixture of both. 

An inclusive economy is a mix of innovation and inclusion, where technology and policies will help ensure access to the means of production for all, rather than distributing benefits later, in order to encourage entrepreneurs for high economic growth and employment. And, reservations are arranged based on economic status.

A market economy with social justice is a mix of both, which gives the private sector ample opportunities to earn income and spends the revenue generated from it on the upliftment of the backward classes and social services such as education and health. It has failed because the private sector was not allowed to work unhindered and its benefits did not reach the people due to the weakness of the state machinery and lack of good governance. 

Revenue did not increase because the private sector could not work. Just as foreign aid cannot be sorted out by putting many layers of paper, the general public understands that the resources are not reaching them due to the increasing layers of misgovernance, politics, and corruption. 

The social structure, international environment, trends of political parties, and technological development still do not seem to allow the private sector to work unhindered. However, if the private sector, which contributes 81 percent to the Nepali economy and 86 percent to employment, cannot be promoted, the economy cannot improve under any circumstances. If the private sector has acted contrary to the code of conduct, punishment should be provided. However, the past practice of not allowing everyone to work in the same basket should no longer continue. 

Therefore, a policy that makes the work of the private sector inclusive and that allows for quick service provision is the need of the day. This does not mean prohibiting the private sector as socialism says, but using policies and technology to reduce the gap between the rich and the poor from the initial stage of production. It takes time to distribute benefits to provide social justice. However, the need of the day is immediate reform. That is also the demand of the youth (Gen-G). 

Today, the dreams and desires of the youth of Kathmandu, California or Kuala Lumpur for their future are the same. With a developed economy, the youth of California and Kuala Lumpur can easily fulfill their desires. However, Nepal's very underdeveloped economy and lack of its own resources have forced the Nepali youth to shrink. Therefore, policies and mechanisms that can immediately address the rapid expansion of the economy and the desires of the new generation are now necessary.