A useful primer on liberalism in Nepal

It has become a trend of sorts for government officials to write books after their retirement. The seasoned bureaucrats put their years of experience and expertise into writing. Nepal Ma Udarbad, Prayog Ra Parinam (‘Liberalism in Nepal: Experiments & Results’) is one such book written by former auditor general and finance secretary Bhanu Prasad Acharya.

The book is not just a record of the author’s experiences, as he clarifies in the introduction. Launched a few months ago, the book is a compilation of different dimensions of the country’s tryst with liberalism. The author also introduces to the readers semantic politics—an area that deserves more discussion.

There have been many debates about liberalism in Nepal. But there have been very few free and fair ones as people tend to interpret it in their own ways. We often hear that economic liberalism started in Nepal after the 1990 political changes has not benefited the country. The author subtlely poses the question of whether it is liberalism or its practitioners who should be blamed for its supposed failure in Nepal.

Acharya mostly treads on neutral ground. His experiences as the auditor general and the finance secretary are most impartially presented. Perhaps the book would have been more enjoyable had he also talked about some of his personal challenges. But he doesn’t, but neither does he resort to slandering or accusing anyone.

The book is divided into eight sections, with each except the last containing theoretical information. Before entering a subject, the author lays out historical evidence and theoretical background. He often quotes world-renowned economists, philosophers and politicians on most of the topics, which shows his skills as an investigator and researcher. The author's tireless work is also reflected in the list of references. Reading the 469-page-book is a breeze given its use of simple words and its easy presentation style, which should also make it useful for students.

Acharya has done a good job of showing the relation between liberalism and its practitioners, and explaining the development of liberalism, the role of public and private sectors in liberalism, the politics of foreign aid, and public financial accountability.

In the second chapter the author discusses industry and trade under economic liberalization. The efforts of India and China in economic reform, experience of privatization and its weaknesses, and development of the private sector are also highlighted. The history of Nepal’s WTO membership is examined in detail, as are the ensuing economic reforms.

The writer has provided detailed information on foreign investment in Nepal, liberalization in trade and service sectors, and protection of intellectual property rights. Some other interesting topics include: the role of regulatory bodies, the parallel economy (black market), and dissatisfaction with liberal policy implementation. But readers may not find detailed information on these popular topics.

In subsequent chapters, the author discusses liberalization of the financial sector, bad debts, and donor interest. Contemporary examples help us understand about syndicates, revenue, and the efforts and challenges of liberalization in health and education.

Another strength of this book is the use of data. The author has ample statistics to back his arguments. He could have added his own ideas based on experience, but he doesn’t. Instead, he makes the book rich by combining various theories and facts.

There are two additional sections on the author’s experiences as the auditor general experience and while working in the Nepali bureaucracy. Although the information is useful, it has not been analyzed in connection with liberalism. Toward the end of the book, the author also discusses his experiences with former prime minister Marichman Singh Shrestha and former finance minister Dr. Yadav Prasad. They are interesting too albeit irrelevant to the topic at hand.

In the last part of the book, the author offers some suggestions. Emphasizing the importance of a liberal state, he suggests focusing on institutional development and state-building. He brings up general issues such as respecting a person’s merits, investing in education, and ensuring accountability. He emphasizes a change of mindset and going beyond conventional ways to understand development.

This book is a combination of in-depth research and experience. The simple presentation of different topics will be of immense help for all students of political economy. Educational institutions can use it as a reference for the study of political science and economics.