With pledge for 2nd phase of reforms, summit concludes
KATHMANDU, FEB 27 -
With a commitment for the second generation of economic reforms, the Nepal Economic Summit 2014, a high-profile economic conference, concluded here on Wednesday.
In a declaration named “A Commitment to Economic Reform”, the government and the private sector have vowed upholding the values of a democratic nation dedicated to the creation of inclusive and broad-based economic growth and distinguishing agriculture, tourism and energy as priority sectors for Nepal’s economic reform.
“In order to create a shared vision and create an environment of policy stability that is crucial for attracting investment, we propose to get this declaration be a basis for ‘minimum common economic agenda’ of Nepal,” read the declaration.
Other reform agendas are to improving the overall investment environment. “For this, we will prioritise entry and exit procedural reforms and eliminate regulatory processes,” said Madhu Marasini, joint secretary at the Ministry of Finance.
The government and the private sector will be identifying and work with local and global investors to execute at least four different large scale projects in tourism, hydropower and agriculture sectors to create at least 50,000 jobs by 2015.
“We will work on adopting the Energy Development Strategy, Tourism Development Strategy and Agriculture Development Strategy within the next six months with appropriate action plans for respective stakeholder agencies,” said Marasini.
Both the private sector and the government will work to increase private sector investment in commercial agriculture by developing and implementing incentive mechanism for high value products where Nepal can have a competitive advantage.
To encourage innovation in energy supply and increase in private sector participation, the government has announced setting up an independent power trading company.
The company will provide a platform for trading energy between individual consumers and suppliers, thereby reducing the fiscal burden of Nepal Electricity Authority.
On the travel and tourism front, the government will invite the private sector’s participation by adopting the public-private-partnership model. “Construction of new airports will be announced in the upcoming budget and the private sector will be invited through open bids to participate in construction and management,” said Marasini, reading the declaration draft. “We will work on inviting the private sector through open bids for better management of services at Tribhuvan International Airport.”
As air safety has become a major issue in the tourism sector, the government has promised to work on improving air safety through regulations and upgrading infrastructural facilities at existing airports. Specific programmes on air safety will also be announced in the budget for the next fiscal year.
In order to increase tourism earnings from the current $36 per capita to $60 per capita through expansion of products and services, the declaration said the government and the private sector will work on choosing five strategic locations to develop them as tourist destinations by the end of 2016.
“Given our proximity to India and China and an increase in the number outbound tourists from these countries, we will target tourism development to this particular market segment. We will then work on framing targeted strategies for infrastructure development and market promotion of these destinations,” said Marasini.
Chief Secretary Leela Mani Poudyal said the summit has provided an opportunity for the government and the private sector to explore investment areas. “The summit is about how to put Nepal in the global investment map. Indeed, it could be the means to change the global perception that Nepal is an investment friendly country.”
Poudel asked the government and the private sector to follow the declaration seriously stating the summit has ushered a reform and will help policymakers to frame appropriate policy measures.
Rajiv Shah, administrator of the US Agency for International Development (USAID), said it is the right time for Nepal to send a message to the world that Nepal is open for business investment.
“Nepal has a new government now. It’s now up to the leaders to set an ambitious goal for the development and welcome investments,” Shah said.
“New model of development is indeed needed for the growth along with vibrant agricultural economy and clean energy development.”
As the agriculture sector can largely contribute to alleviating poverty or it is 3-6 times more effective to reduce poverty, policy reforms are needed for the agriculture sector development, Shah said, adding Nepal needs to simplify the seed regulation guidelines.
Source: The Kathmandu Post
