New policies and programs
The policies and programs presented by the government of Pushpa Kamal Dahal on Thursday were, as expected, modest. The caretaker government did not want to invite any controversy with the country in election-mode. No new programs were introduced, with the priority on carrying out existing ones. Yet the document President Bidya Devi Bhandari read out before the parliament does make some vital promises. The major focus, again as expected, will be to ensure that all three levels of elections are completed by the January 2018 constitutional deadline. But it also promises to sustain the near 7 percent growth projected for this fiscal. This will be difficult. One reason why the economy is growing at such a healthy clip this year is simply because it had more room to grow after last year’s abysmal 0.8 percent growth. Economists believe lifting of the border blockade, a healthy monsoon, and slowing inflation in India all contributed to the boom in Nepal. It’s troubling that Nepal’s growth is so dependent on factors that are outside our control.
Thankfully, that is not the whole story. In the past year, load-shedding hours have been drastically cut, which in turn has boosted our industries. While most of them were operating at under 50 percent capacity a year ago, they are up to 65 percent capacity now. As they are producing more, they are also hiring more people. If there is semblance of political stability in next one year, we can expect their productivity to keep growing. The government has also promised more resources and manpower for the urgent task of rebuilding the 600,000-odd houses destroyed by the earthquakes. If rebuilding can begin in earnest, it will be another potent source of growth: It is said that for every rupee the government spends, the private sector spends two. So the prospect of post-quake rebuilding picking up and the new commitment to increase capital spending both bode well for the economy. Implementation of the ‘national pride’ projects is to be ‘enhanced’, through, among other things, their close supervision and monitoring. There are also plans to make the country self-reliant on energy, on enhanced road and rail connectivity, on religious tourism, on upgrading of our airports and on balanced economic diplomacy with our two big neighbors.
To make all this happen, the policies and programs rightly emphasize unity among all political forces, big and small. But perhaps the most notable aspect of this document may be its commitment to “scientific, simple and transparent” transfer of resources to the newly elected local units. Unlike in the past, when the center decided everything, from now on it will be the relevant local units making all vital decisions on their own behalf.
Indeed, if the local units can function as envisioned in the new constitution, the old dream of decentralized development in Nepal will finally come true. The policies and programs make a good start in this. The upcoming budget, hopefully, will fully support them. Then it will all boil down to the commitment of the new government to honestly implement these policies and programs.
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