Development Perspectives and Policies Tek Nath Dhakal

BACKGROUND Development is denoted as "modernization," "capitalist development," " the development of the forces of production," etc. After 1970s "development" is taken as the improvement of "quality of life" and "standard of living" and also for the "reduction or amelioration of poverty". Nepal is in the practice of planned economic development since 1956 (2013BS) Up to now number of 5 year plans are 9 and 3 year plans are 5 have completed. Partial development achieved in political, economic & social fronts

Economic Growth Rate of South Asian countries and China (%) S.No. Countries 2014 2015 2016 2017 2018* 1 Bangladesh 6.3 6.8 7.2 7.1 7.0 2 Bhutan 4.0 6.1 6.0 3 India 7.5 8.2 6.7 7.4 4 Maldives 7.6 2.2 4.5 4.8 5.0 5 Nepal 3.3 0.4 6 Pakistan 3.1 7 Sri Lanka 4.1 5.3 5.6 8 Afganistan 2.7 1.3 2.4 2.5 9 China 7.3 6.9 6.6 Source: International Monetary Fund, April, 2018 *Projected

Nepal's Economic Development achievement S.No. Indicator 2047/48 2054/55 2074/75 1 Per capita income (USD) - 1004 2 Total GDP (Rs in Billion) 97.8 281.9 3007.3 3 Road (KM in thousand) 7 11 30 4 Local Road (KM in '000) 57.7 5 Electricity generation (MW) 227 300 1074 6 Access of potable water (%) 36 61 88 Access to internet (%) 50.3

Nepal's Economic Development achievement S.No. Indicator 2047/48 2054/55 2074/75 1 People below poverty (%) 49 42 21.6# 2 Multi-dimensional poverty (%) - 28.6* 3 Net enrollment at primary level (1-5) (%) 64 70 97.2 4 Child mortality (per 1000 live birth) 108 118 39 5 Mother mortality (per 100000 live birth) 850 475 239 6 Telephone density (%) 133 7 Access to internet (%) 50.3 Source: #NPC 2072/73; 2073, and *NPC 2014 (2018)

Nepal ‘s graduating status For graduating from LDC 3 indicators – Human Asset Index (HAI), Economic Vulnerability Index (EVI) and Per Capita Income (CPI) should be met. Nepal intends to graduate to the league of developing nations by 2022 As per Economic & Social Council (ECOSOC) Nepal has met two criteria (HAI & EVI) out of three criteria technically. But Nepal’s per capita income is far below the required level. The private sectors are still reluctant to be graduated from practical reasons as Nepal being a least developed country, firstly, it has been enjoying export preferences in the market of developed countries, and secondly, sustainability of the existing growth of the economy. Nepal has also been getting ODA being a LDC which is also crucial for development. To graduate to the league of developing nations, as per UN, PCI should be USD 1230; HAI should be above 66 and EVI should be below 32 (as per review of 2018). As per NPC Nepal’s HAI & EVI stand at 68.7 & 26 respectively but PCI at recent year is USD 1004 which still lags behind.

Long term plan for achieving SDGs Nepal’s Constitution of Nepal aspire to create a prosperous, egalitarian and pluralistic society, and serves a the overarching guide to all development policies, plans & programs. With such constitutional spirit the government has preparing a long term prospective plan covering 25 years (2076/77 – 2099/2100BS), i.e., (2020-2045) which will have five 5 years plans. The implementation of these 5 plans will be in: Stage I: 15th Plan (2076-2080) will be able to generate Prosperity & Happiness Stage II: 16th & 17th Plan (2081-2090) will be able to accelerate prosperity & happiness Stage III: 18th & 19th Plan (2091-2100) will be able to sustaining prosperity & happiness

Nepal’s Guiding principles of long term plan Economic stability, increase in saving and investment and productivity Development of agriculture, energy, mines and tourism sectors Development of science, ICT, Human resource, research and innovation Research and development and entrepreneurial development Inclusion, balance of provinces, backward areas & communities Project governance

Policy and strategies to be developed for Faster, sustainable and employment oriented economic development Insure quality health service and education Inter/intra domestic/international relations and sutdained settlement/urban development Enhance production and productivity Formation of Just and dynamic society Protection, conserevation, mobilization of natural resources Enhancement of public services and federal governance system

Issues and Challenges in Implementing the SDGs The SDGs are comprehensive, ambitious and challenging goals and require huge resources and capacity enhancement. Require huge national efforts and international cooperation. data gaps and create baseline data for the targets that have no databases such which require intra-household information on nutrition, hunger, poverty, education, health, consumption and income distribution. Government partnership with the private sector and community organizations along with external development partners is crucial for implementing and monitoring the achievement of the SDGs.

Issues and Challenges … As the localization of SDGs at the sub-national and local levels is critical for universal, equitable and inclusive outcomes and should have willing and capability of meeting dev. agenda. The SDGs require the substantial up-scaling of efforts. In education and gender, the achievement of gender equality in tertiary education and empowering women is one of the major challenges because that they require extensive social change along with economic interventions. Achieving the energy goal is contingent on Nepal increasing hydroelectricity production at least 10-fold during the next 15 years. Exercising this responsibility requires scaling-up investment along with developing the capacity of the country’s human resources. The private sector has a crucial role to play in promoting economic growth, generating jobs, and contributing to the government's revenue basket. Besides, its corporate social responsibilities and role in social security or social protection should make a great contribution to progress against the SDGs. Proper usage of the growing number of cooperative members (half a million) is important but not used robustly. While more official development assistance (ODA) will have to be committed by developed countries, and more concessional assistance offered by multilateral financial institutions to finance the SDGs, it is equally important that measures to enhance aid utilization capacity are taken at national and international levels. Nepal is prone to natural disasters due to its topography, location and habitats. The achievement of the SDGs requires good governance at all levels which requires public services more accountable and public policies, programs and implementation more transparent and result-oriented.  

Issues and Challenges … The private sector has a crucial role to play in promoting economic growth, generating jobs, and contributing to the government's revenue basket. Proper usage of the growing number of cooperative members (half a million) is important but not used robustly. While more official development assistance (ODA) will have to be committed by developed countries, and more concessional assistance offered by multilateral financial institutions to finance the SDGs . Nepal is prone to natural disasters due to its topography, location and habitats. The achievement of the SDGs requires good governance at all levels .

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