Institutional Governance a Must for High Economic Growth Rate

It has been noted that institutional governance and robust human resource was indispensable for attaining higher economic growth rates in the present unfavorable situation.

At a program organized by the Society of Economic Journalists-Nepal (SEJON) under the 'SEJON knowledge series' on Tuesday, the Spokesperson of the Nepal Rastra Bank Dr. Gunakar Bhatta highlighted the importance of institutional governance to drive the economy to the right path.

The investment was needed for development and the internal environment should be enabling for investment, he said. "In order to attain the anticipated economic growth rate, we need adequate capital, competent human resources, and elements of production. The most important to that end was institutional governance".

Bhatta further noted that the robust human capital and institutional capacity could reflect a positive impact on the economy.

Likewise, he further claimed that the effectiveness of banks and financial institutions was comparatively higher than other sectors due to the prevalence of institutional governance. "Comparatively, the banking sector was transparent and stable since its regulation is effective".

The banks and financial institutions disclose their performance data every month and the data as well as several monetary tools are mobilized for management, he added.