Enabling Environment for Growth and Development Jagadish C. Pokharel, Ph. D. Special Lecture at Staff College August 3, 2017 enabling environment for growth

enabling environment for growth What Are We Discussing? Development concepts What is enablement? Development Actors Enablement of Actors Enabler of different actors-- internal and external environment Nepal’s Effort to enable development actors Lessons from over 25 years of Efforts Changing Context- new factors, concerns, and possibilities, new constitution, federal state, local governments. New thinking regarding enablement What direction and path to move ahead? (discuss) Forces and factors of growth and transformation: Urbanization, Young population, remittance and returnees, and technological (ICT) proliferation enabling environment for growth

The Concept of Development Development : What is it? Desired Change of condition A process of achieving desired change Change in— Economic condition Social condition Environmental condition Governance system

Development Approaches Early thinking: Having more money (nation and individual) Indicators: money, Unit of measurement: per capita income, Gross Domestic product, Gross National Income Development Problem how to make more money, create more wealth, Labor is available, how/ where to get more capital and technology from? Industrialization key COEN YEE Training 2017

PRSP, MDG to SDG Making development more holistic Poverty focus (PRSP) worked but sustainability? Nepal did well in most MDG targets Poverty reduction, maternal mortality rate, student enrollment, parity between girls and boys, literacy, longevity of life, Did not do as well in: Employment generation, economic growth, dependence in remittance, labor migration, women empowerment

MDG And Beyond Key Lessons we learnt Poverty can be reduced Multiple actors should be engaged Decentralization Participatory and democratic approach works Pockets of disparities exist Targeted programs needed More effort on women Empowerment Inclusive development needed Infrastructure is important Realization Self reliance on basic good especially after disturbance in Terai, and India’s economic blockade

MDG And Beyond Key Lessons we learnt Poverty can be reduced Multiple actors should be engaged Decentralization Participatory and democratic approach works Pockets of disparities exist Targeted programs needed More effort on women Empowerment Inclusive development needed Infrastructure is important Realization Self reliance on basic good especially after disturbance in Terai, and India’s economic blockade

SDG and Graduation to DC Aspire to graduate to Middle income / prosperous country over 7% GDP growth Constitution envisages: Inclusive and equitable socialism oriented economy Worries and concerns SDG’s goals guide until 2030 Dependency on remittance , imported goods Trade imbalances Feeling of insecurity Factors-- urbanization, returnee migrants, technology, youth Major focus on: Infrastructure, partnership with pvt sector Greater role of State in some sectors like– education and health

Requires Enabling Different Actors Institutional Actors Policy changes Regulatory changes Incentives External and internal environment Enabling Social Actors Youth Women Children Dalit enabling environment for growth

Enabling Private Sector Simplification of invest rules– business rules Deregulations Improve credit systems Ease contract enforcement Low taxes etc Trade promoting polies Rule of law Labor market deregulations (Note: depends on school of thought) enabling environment for growth

Enabling Civil Society Democratization and liberalization of development space NGO related rules Community organizations Empowerment polcies Inclusion policies Clear role of CS vis a vis other actors Peaceful environment Freedom of association and participation enabling environment for growth

What type of state is enabling? Socially oriented state Participatory Democratic Progressive Caring state enabling environment for growth

Development Actors Market State National development Civil ….. Facilitate Regulate Guide protect Market Efficiency Investment Management Growth Cooperatives Empowerment capacity building Local resource mobilization Civil Society Advocacy Social issues Justice equity

Unclear Development Path Global Trend Shrinking and changing liberal, open and global thinking Ownership of Global agenda – climate change etc China’s emergence and new thinking Nepal’s experience with multiple actors Experience with trade, remittance and import based economy Experience with Indian blockade “self reliant economy”-- Production of strategic goods State’s and private sector’s space Overall “shrinking” space for NGO sector Growth of Cooperative sector Federated Nepal and local units of government– development movement Others

enabling environment for growth End Thank you enabling environment for growth