Nepali youths want to carve out a distinct identity of the country—other than that of the land of brave warriors—particularly in the field of information and communications technology (ICT).
Is the government ready to create a supportive environment for the realization of this mission?
This unanswered question sits uncomfortably among young dreamers, innovators and inventors at a time when a body of research has shown that the coming decades will be the age of Asia.
According to a report from the McKinsey Global Institute (2019), Asia, home to more than half of the world’s middle-class population, already accounts for over 50 percent of global GDP growth while the Asian Development Bank (ADB, 2023) forecasts that Asia-Pacific's sustained growth, driven by trade, technology and urbanization, will continue to reshape global power balances.
Located between two global economic powerhouses—China and India—Nepal has “great prospects” for economic collaboration and development lying ahead.
Though it sounds a bit cliched, the government and other stakeholders should have an unwavering focus on ways to reap “benefits” from the two large markets.
Today’s youths dream of transforming Nepal, a member of the grouping of low-income countries, into a middle-income country (at least in a few years). Make no mistake: they are dreaming with eyes wide open, with a sense of eagerness and mission, and they are working quite hard to fulfill it.
Sprouting start-ups, firms and product/service enhancement facilities, especially in the field of ICT, are a living proof of their commitment to the mission.
At a time when, according to reports, around 2,000 youths are leaving the country daily, growing businesses like these offer a glimmer of hope.
This begs a key question: Is the government really ready to accept, encourage, promote and develop this bubble of hope?
Action speaks louder than words, doesn’t it?
Thus far this year, the parliament has passed some important bills to promote youth enterprises such as the Bill to Amend Some Nepal Acts Related to Good Governance Promotion and Public Service Delivery (Amendment), 2024; Cooperatives Bill, 2024; Economic Procedure and Financial Responsibility (First Amendment) Bill, 2024; Privatization (First Amendment) Bill 2024 and Improvement of the Economic and Business Environment and Investment Promotion Bill, 2024, bringing cheers from the private sector and other stakeholders.
The recently-published fiscal policy of the government appears to be a small step in the right direction and let’s hope that the monetary policy will also power the start-ups and help give the gig economy a boost through measures like favorable interest rates.
Still, the roadblocks remain on this path with several studies and research papers highlighting the ambiguities and hurdles in policies, bills and articles related to business operations in Nepal.
What is the way out, then?
Instead of bulky policies and controlling bills, relevant government authorities can create simple, easy and supervisory bills to remove these obstructions.
And how about introducing start-up friendly policies, which can create a favorable business environment by opening the door for many opportunities within the country.
Michael Porter rightly says: Innovation is the central issue in economic prosperity.
It is a given that invention and innovation are the only tools that can leapfrog the economy.
Looking back into the global growth and development trajectory, one finds that every developed country has almost the same story: They all began with invention and innovation in commodities, and achieved a competitive advantage in the international market. South Korea, Singapore, India, Bangladesh and Sweden are doing extremely well on this front, especially over the decade. Make no mistake: these two i-terms—invention and innovation—aren’t accidental things. Rather, they are the result of consistent efforts of many minds and hands.
There’s no reason why Nepali youths cannot achieve this feat and take the country to a new era—with a little help from all stakeholders, the government in particular.
