The promulgation of constitution, though a document of compromise among political parties, is expected to end long-political transition of the country.With enough room to amend, the constitution is also expected to pave the way for economic development. The constitution is not the end, but a means to achieve development. According to Senior Economist Bishwhambher Pyakuryal, the constitution will pave the way for sustainable and inclusive development. "Though there is huge disparity, the constitution will create an environment to force political parties to work for economic development," he said, adding that the implementation of constitution is challenging as the share of revenue of states is not only uneven but also not sufficient enough to sustain in some of federal states.
Formation of federal states will also help shift economic centers. Currently, Kathmandu contributes to almost a quarter to national economy. According to the Nepal Rastra Bank (NRB), Kathmandu contributes around 23.4 percent to the economy. "However, the formation of federal states will shift economic activities to regional markets, widening the economic sphere," according to former finance secretary Rameshwor Khanal. "The widening of economic activities will help balance regional and sustainable economic development, apart from creating more employment at the local level," he added.
The country is also expected to give priority to economic activities after the promulgation of constitution. "It is only natural that politics guides economy in under-developed countries like Nepal," Swarnim Wagle, member of National Planning Commission (NPC), said. He, however, was hopeful that the promulgation of constitution on Sunday will help pave the way for economic prosperity. "The first step of the prosperity is political stability," he said, adding that the constitution of Federal Republic of Nepal will ensure at least some kind of stability. "However, it is the first step."
If political situation becomes stable, sustainable and inclusive growth could be achieved within a decade, according to Wagle. To create a foundation for sustainable and inclusive growth, the country needs over 7 percent of economic growth for a decade, he told Republica. "And it is possible."
In the past decade, Nepal witnessed low economic growth of 3.5 percent to 4 percent due to prolonged political transition. Once the political situation becomes stable, the country will be able to attract more investment that is crucial for achieving high economic growth. The country has seen over Rs 18 billion investment commitment in tourism sector alone in the past decade in anticipation of constitution and political instability. More investment will create more employment opportunity that will not only increase income but also help in capital formation.
"Capital formation will also fuel economic growth," Wagle added.
The sooner the country witness economic growth of over 7 percent, the more is the chance to achieve sustainable economic development, though Nepal will 'technically' graduate to the developing country status from least developed country (LDC) by 2022.
However, he opines that the investment on infrastructure, social security, and quality health and education will prepare a base for a sustainable growth. "NPC is working on 14th periodic plan and Vision 2030, aiming at preparing a base for prosperous Nepal," he said, adding that the roadmap to a prosperous Nepal could be a reality, if there is a political blessing.
Related story
Leaving No One Behind: The Path to Disability Inclusive Develop...
-1200x560-1779450784.webp)
