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These days, two questions are so prominent regarding the socio economic development of Nepal. First, how can the good policies practiced by various successful countries be implemented to strengthen the internal economy? And second is why the development efforts failed to attract youth in the mainstream? To find the answers, we need to identify the way of achieving fruitful results according to the new generation’s desires. In the context, about the status of socio-economic development, currently, we can find three types of opinions. 

The first view claims that the country has made significant progress from a socio-economic perspective. The second logic is negative that denies the first view.  This logic did not see any adequate space for the future development of youth and the coming generation. The third view is mixed; and it compares the economic and social progress between past and present period and argues that some results have been achieved but it is not enough in comparison to other countries including neighbors; not enough as the demand and desire of the conscious people including new generation. This view is more realistic and fair since it shows the picture of yesterday's work, progress, and results as well as shortcomings and inadequacies of the past period. Therefore, to draw concrete conclusions, it will be better to divide Nepal’s development into different time periods.

Until 1956, the length of motorable roads in the urban areas of Nepal, basically in Kathmandu, Birgunj, and Biratnagar was 500 kilometers, out of that only half could be used throughout the year. There were two railways, Raxaul-Amlekhgunj and Jayanagar-Bijalpura, 130 kilometers long in aggregate. A ropeway of 67 kilometers was in operation from Bhimphedi to Kathmandu. There were two small canals named Chandranahar (Saptari) and Juddhanahar (Sarlahi) for irrigation purposes built by the government. Total hydro electricity generated was 3100 KW. In terms of health, there was Bir Hospital and Naradevi Ayurveda Hospital only. At that time, there were only four dozen high level educational institutions including Durbar High School and Trichandra College. The number of primary schools was near about four hundred. The literacy rate was below five percent. 

Even until the mid-decade of 1963, the development of physical infrastructures was less than a dozen. At the national level, the Tribhuvan Highway, Arani Highway, Prithvi and Siddhartha Highways were in operation but Raxaul-Amleshgunj railway was already closed. There was no electricity except in cities such as Kathmandu, Birgunj, Biratnagar and Bhairahawa. Until the 1970s too, Indian land had to be used to reach many parts of Nepal. By 1990 too, the length of the road, irrigated area of land and power generation capacity were 7,000 kilometers, 493,000 hectares and 238 MW respectively. The total number of schools was 2,1826 and the health institutions reached 1,100. During this period, the literacy rate reached 30 percent and the average age reached 55 years.

By the middle of July 2024, the length of the road reached 36,000 kilometers, the area of irrigated land was registered to 1.6m hectares and the renewable energy (electricity) capacity had increased by 14 times and recorded to 3,336 MW. In terms of social infrastructure, the number of schools and health institutions are 35,447 and 8,746 respectively. Now, the literacy rate is 77 percent and the average life expectancy rate is 71 years. The number of people below the poverty line has decreased to 20 percent, which was 49 percent in 1990. However, this poverty rate is the highest among South Asian countries. 

In this way, during the three and a half decades after 1990, in terms of numbers, Nepal has made significant progress in the areas of physical and social infrastructures but the achievement is not satisfactory in terms of quality and adequacy. Because of the total roads in terms of transportation, the percentage of black and gravel roads is 23 and 24 respectively; remaining is unpaved, which can only be used by vehicles for a few months. From a safety point of view too, the condition of the roads is poor. On the other hand, large vehicles carrying goods or passengers to Kathmandu from the eastern part of Chitwan have to travel an unnecessary distance of about 200 kilometers. The additional economic burden or cost created by this has adversely affected the competitiveness of the entire country and made daily life expensive. There is no significant progress in railways; ropeways are closed. Cable cars built by the private sector are used only for tourism purposes; those are not suitable for daily and business life. More than a dozen national pride and transformational projects are incomplete; the cost is increasing every year. Some projects that were supposed to be completed in five years have not been completed for 15 years, the initially estimated cost has not only doubled but also increased by six times. The achievements mentioned above, in comparison to today’s needs and standard of developed countries, it is clear that we are lagging behind. The per capita income in 1990 was $186, in 2024 this figure increased eightfold to $1517, but due to rapid depreciation of the Nepalese currency against the US dollar it could not strengthen the purchasing power of the people. In terms of region, the per capita income of Bagmati Province was $2,600, while that of Madhes Province was limited to $932, which is less than that of Karnali. This gap has increased dissatisfaction in people.

Comparing neighboring countries, according to the World Bank, Nepal’s per capita annual income is $1,500, while the average per capita income of South Asia is $2,700. The per capita income of the Maldives is almost nine times higher than Nepal’s income. Bhutan’s figure is $3,900, while India’s income is at the average level of South Asia. Bangladesh and Sri Lanka’s income is $2,600 and $4,500, respectively, Nepal is at the bottom. All these matters may have made the people frustrated. 

Against this backdrop, in order to drive the economy in line with the existing consciousness of the society and to move it in the right direction, on the one hand, it is necessary to change the constitution radically and on the other hand, drastic change in governance, systems, processes and procedures keeping the goal of optimal use of resources through good governance and effective management. In fact, the constitution is expansionary, because it increases the cost of state operation and demands a lot of financial resources rather than yielding resources. 

The issue of self-reliance should be taken in mind; because, the development of technology has dismantled the foundation of a self-reliance of the global economy. Nepal’s current economy is like a dependent one, it would be practical to make it interdependent; since currently, and building a self-reliant economy is just ideal thought where a country fulfills all the economic, social, and structural needs of its citizens through its own production and management without relying on foreign trade, aid, or investment. 

In today’s era, the economy cannot be completely self-reliant. China, USA, Japan, and Singapore are also not completely self-reliant. It is practical for Nepal to think of becoming self-reliant in food and electricity sector-wise. So, it is the right time to be proactive to overcome internal contradictions, conflicts, and inefficiencies and work to establish strong interconnections between Nepal’s economy and the global economy. This needs a multifaceted effort.

Human life is an integral part and a unique gift of nature. Nature has given many things like energy, substance, wealth and education in the form of knowledge and elements such as air, water, forest, soil, stone, hydrogen, oxygen and salt. When these elements adjust to the heat from the sun, the living world acquires shape, speed and lifespan. Nature also teaches us to live, eat, laugh, play and stay safe with comfortable and environment-friendly housing. 

A civilization developed in alignment with nature is sustainable. Human attempts to outdo nature and a refusal to live by the laws of nature have only brought about calamities with a massive toll on life, properties and nature itself. 

For ancient educational and academic institutions of, say, the Vedic era, nature was the fountainhead.  

Looking at the geography and socioeconomic characteristics of Nepal, most of us spent our childhood and adolescence in the interactions between fields, forests, rivers, streams, barns, fields, grasslands, farming, shepherding and schools. Farmlands, forests, bushes, grasslands, rivers, ponds and wetlands are our laboratories. Indeed, one cannot learn to build a nest, a beehive and a termitarium at a manmade university. 

Rivers wash the water with rocks, the crab puts the paddy under its artistic burrow, mouse artistically places the paddy in the hole, the cat protects its kitten by shifting its quarters frequently, the hen covers the chick when the fox comes, friction of bamboos and rocks create fire. No modern university taught them all this, nature taught them all.  

Few of us know that the tomato originated from potatoes. In the potato plant, the potato grows on the roots in the soil and fruit grows on the top gives the seed of tomato. In the same way, a tree crashes, it gets hurt. Dirt, dung, etc fall on the injured parts and ‘bandage’ it, causing the roots to grow and teaching mankind the art/technology of grafting fruiting trees. This is just an example, for nature is the educator of humans in fields like agriculture and botany. From water and airplanes to pagoda-style houses and temples, nature has given the knowledge of manipulating water and air through insects such as fish, birds, insects and bees. 

During my childhood, I used to be curious about beautiful nests of bird and termite houses. I used to think: Who teaches them to make such artistic houses? What kind of schools do they attend? 

Not only that, the termite and the bee do not stay in the same ‘house’ or nest again after a period, they build new ones. Which law and which government teaches them to build anew? The answer is simple: Nature teaches them all these things. On the contrary, people do not have enough awareness, they ignore nature and pay less attention to how and what materials can be used to make their houses and other structures stronger, safer and healthier without having to spend a lot of money and other resources. As a result, people often get crushed as their dwellings collapse during disasters like earthquakes. 

Most of the earthquake deaths in Nepal are caused by living in unsafe and old or outdated houses, which show huge consequences of defying nature such as inequality, discrimination, injustice and a weak governance system. 

For example, tigers are carnivorous animals; they satisfy their hunger by hunting their prey such as deer, antelope, etc. 

What is remarkable here is that hunters like tigers do not prey for the next day. A tiger, for example, kills an animal, feasts on the prey and sleeps with joy. 

On the contrary, a man hunts down a lot of animals, makes dries, piles it up, taking a huge toll on nature and mankind. 

Due to unnatural activities, edible plants that supply nutrients to the human body have become extinct. The use of chemicals and pesticides in the field of agriculture and animal husbandry has adversely affected the presence of farmers, sub-farmers and insects. Frogs, snakes, rattlesnakes and earthworms have become extinct, sparrows and crows have declined. In the absence of friendly organisms that are part of the ecological cycle, there is a lack of insect-eating organisms. Paradoxically, it seems that national and international stakeholders do not get enough attention about the impact of all this on production, life and environment.

It is objectionable and a height of insensitivity to make and show/watch videos by encouraging hunters to hunt wild animals in the name of encouraging tourism. 

Through such acts, what kind of lessons are we imparting to next generations? Are we not teaching them cruelty? 

The goals of sustainable development cannot be achieved by forgetting the laws of nature. We talk about climate change, its impact, impact mitigation and adaptation, we incorporate these issues in our policies but we don't implement them. What’s the use of all this exercise if we don’t walk the talk?

Several international forums and meetings highlight that some islands will disappear in the near future due to rising sea levels. Due to increase in global temperatures, snow-capped peaks are melting at an alarming rate, causing the seas to rise and putting the islands in peril. 

Against this backdrop, Nepal should take the lead to solve the problem of both sides, including the group of the victimized countries that have hardly any carbon footprint. Ditto for the translation of the proposals submitted at the COP28 on climate finance/funds, adaptation and claims for compensation from the industrialized countries, and the protection of the Himalayan region, into measurable results. For this, Nepal should prepare a strong draft by incorporating progress and challenges in addressing relevant issues, identifying actors responsible and submit it in upcoming COP meetings and other relevant forums.

Before the unveiling of the new monetary policy, I had, through the media, advised the government to exercise caution while addressing some of the demands of the private sector. Thanks to the government for incorporating my suggestions. 

The policy has pledged to boost small and medium-sized enterprises, but it has not said how Nepal Rastra Bank will do it.

The policy has also promised to review risk weightage on margin lending, housing loans, and hire purchase loans. Last year, the external sector was in a tight position. Before that, the Covid-19 pandemic had hampered the economy. Now, we have enough foreign reserves to trade for nearly 10 months, which is a better situation. Banks and financial institutions too have extra Rs 400bn for investment. But the industrial sector has not recovered and the policy has not much to offer. All in all, there is room for improvement in the policy.

The author is an economist