SHANTI JOSHI
Achieving and maintaining a reasonably high economic growth is one of the important objectives of many countries in the world, even in Nepal. Nepal is one of the Least Developed Countries (LDCs) in the world. Increase in economic activities within the country is a prerequisite element for the achieving high economic growth. The agricultural sector, tourism, hydropower, handicraft, different herbs, are regarded as competitive areas for the country Nepal. The country needs to strengthen such areas in order to take a competitive advantage as well as comparative advantages.
In fact, the country has been exporting a large number of human resources – regarded as the creator of resources (physical, technological, capital), a mobilizer of resources to the foreign land. That’s why human resources are known as resources of resources.
Achieving sound external stability is one of the major objectives of the central bank of Nepal. The country needs to maintain an adequate level of BoP, foreign reserve in order to keep external stability. Nepal needs immediate measures to fix the imbalance in export and imports.
The country has been failing to maintain an adequate level of external payment (technically referred to as Balance of Payment) i.e. fund outflow surpassed inflow by Rs 24.8 billion in the first month of the current fiscal year 2018-19 despite a robust growth in the remittance income. The surge in imports is hurting the country’s economy. According to the central bank report, imports surged like never before, leading to a greater outflow of the county’s fund. Also, the one-month data unveiled by Nepal Rastra Bank (NRB) in September of current fiscal year, imports of merchandise goods surged by 54 percent to Rs 120.6 billion and on the other exports surged by mere 3.2 percent to Rs 6.9 billion. But the surge in imports is not a problem itself. However, the actual problem lies with Nepal’s inability to match its exports with imports. When the country is able to match its export with imports then this situation is said to be – the country is in a balance in trade position.
Another scary figure is that the country’s trade deficit which stood at 39 percent of Gross Domestic Product last fiscal year, is likely to widen further.
There is no doubt that the country has been highly dependent on other countries like India and China for the most basic agricultural product to the petroleum products, due to which the country is facing trade deficit.
The country has been facing a serious problem i.e the utilization of available human capital ineffective as well as efficient ways. According to the data 2017, around 1500 Nepali youths leave for overseas jobs on a daily basis.
Nepali youths have been utilized by foreign developing as well as developed countries for the development of their nations. But why the country Nepal cannot do the same? There is a sweet bitter truth is that mentally sound and intellectually young Nepali youths have been departing to a foreign land, and their power utilized by foreign countries.
Unless the utilization of available human resources especially the youths can be retained and engaged within the country, the country’s prosperity will remain a pipe-dream.
So, now the solution is that the country needs to create a compatible atmosphere where enterprises can flourish, migrant workers can return, effective utilization of remittance in order to increase in entrepreneurial activities in the country.
The government plan to set up of Industrial Enterprises Development Institute (IEDI) in all seven provinces can be a good move. In fact, always the country comes up with robust plan and policies. However, the problem lies at the time of execution. The concept of IEDI, however, is not new. It was established back in 1996 under the Industrial Enterprise Development Institute Act with an aim to develop human and knowledge resources for the entrepreneurship and business promotion.
Increment in entrepreneurial activities and enterprises especially small and medium enterprises would help to generate employment opportunities, utilize available local resources, and ultimately helps to become self- dependent country in the world. Consequently, the increase in economic activities within the country which brings economic growth in a positive move.
