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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

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

13. 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

14. 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

15. enabling environment for growth
End
Thank you
enabling environment for growth