The need now is not just a change of regime, but rather a scientific solution to the question of how to free Nepal's economy from geopolitical pressures and transform it into a surefire tool for economic prosperity.
What you should know
The crisis of legitimacy of state institutions is currently deepening in Nepal. Similarly, there is extreme confusion and despair about the future among the general public. This is a crisis situation. Therefore, it is imperative that every party's manifesto in the upcoming elections focus on the economy.
Because without a clear economic solution, Nepal's prosperity and development are not possible. What is needed now is not just a change of power, but a scientific solution to the question of how to free Nepal's economy from geopolitical pressures and transform it into an infallible tool for economic prosperity.
To emerge from the current political crisis and enter the economic opportunity, Nepal needs a revolutionary change in attitude and institutional structure at the same time. In the traditional political system, the issue of economy and development has always been in the shadows. Therefore, at this time, we need a National Economic Transformation and Planning Commission that is completely free from political interference. Which should find innovative and data-based solutions to complex economic challenges. It should focus on a purely economic and development agenda. The main goal of its establishment should be to draw a clear roadmap for long-term economic development and implement it without political ups and downs.
Within the next five years, Nepal should focus on maximizing the use of national natural resources and human capital to move it from an import-oriented to a production-oriented economy. In particular, the focus should be on creating direct employment by focusing on the development of small and medium enterprises. For this, financial incentives and access to technology should be ensured to make young people skilled and develop their entrepreneurship. This is the long-term and inevitable solution to address the frustration of the youth.
Attention should also be paid to the diversification of the hydropower and tourism sectors. In the energy sector, the strategy of using hydropower production only for domestic consumption and entering the regional market should be moved away. Instead, the foundation of a 100% green energy and hydrogen economy should be laid in the future, which will make Nepal a 'global hub' in the energy sector. In addition, high-value and long-term settlements should be encouraged, moving away from traditional trekking tourism. The economy of Nepal can be freed from seasonal effects by developing sectors such as spiritual tourism, health and 'wellness' tourism.
Another strong pillar of Nepal's economic future is the scientific management of the 'Himalayan Economy' and the internationalization of the climate agenda. Our mountains are not just tourist destinations. Rather, they are the nation's largest strategic 'economic reserve'. A policy should be adopted to establish processing centers in the high Himalayan region and take the herbs found in the country to the world market as 'Premium Himalayan Medicine'.
This will not only add high value to exports, but will also create extensive industrial employment in the Himalayan region. Only a policy of exporting our mineral products such as cement and limestone as finished goods instead of raw materials can balance the trade deficit. In addition, developing a scientific mechanism for Nepal, which is at risk of global climate change, to receive 'carbon payments' or 'carbon credits' from the world community for protecting its mountains and environment should become an essential diplomatic and economic agenda.
A clear roadmap should be prepared to make Nepal a hub for regional and global information technology services. For this, extensive investment should be made in the necessary digital infrastructure, cyber security policy, and expansion of 'fiber optical networks'. In particular, ‘freelancing’ and ‘remote work’ need to be facilitated through the legal and banking system, so that youth can earn foreign exchange while staying in Nepal. The digital economy can revolutionize job creation. The exodus of human capital can be turned into national capital creation.
Agriculture should be modernized and focused on ‘agro economy’ and energy. Nepal’s agricultural system should be transformed from subsistence-oriented to commercial, industrial, and export-oriented. Specialization should be made in the production of high-value cash crops such as tea, coffee, cardamom, ginger, organic fruits, and high-hill herbs, ensuring food security and self-reliance. For this, the development of ‘agro-processing industries’, investment in agricultural research, irrigation, advanced technology, and mechanization should be encouraged. It is necessary to emphasize connecting farmers’ produce with international markets through a modern ‘agro-logistics chain.’
A clear strategy should be formulated to convert geopolitics into economic benefits. It should develop a strategy to transform its relations with India and China into a purely economic partnership, not a political balance. Its aim should be to create an environment where geopolitical tensions can be maximized through transit, connectivity, and regional market access.
Unless Nepal's political leadership abandons the culture of fear and greed for position and adopts a scientific economic roadmap, the slogans of national development and independence will remain mere fantasies. The Falgun 21 election seeks this economic solution and a leadership with a clear vision, which can lead Nepal out of the current crisis and onto the path of prosperity.
