Speaking at an interaction on 'Learning from the Economic Crisis: Impact and Lessons', jointly organized by Alliance for Social Dialogue (ASD) and Nepal Economic Forum (NEF), former commerce secretary Purushottam Ojha stressed the need for increasing connectivity with China as a long-term strategy. "If successfully done, this would place Nepal as a trade channel between India and China," he said, pointing out the need to increase investment in agriculture and incentivizing it.
He also suggested that Nepal use legal instruments at its disposal to highlight the scale of the crisis in the international arena.
Nepali economy was already in a precarious situation following the devastating earthquake in April. The natural disaster made political parties to work toward promulgating the constitution. However, disagreements on certain aspects of the constitution have led to protests by certain communities in various parts of the country, followed by blockade of Indo-Nepal border points since August 2015.
Nepal's heavy dependency on India for supplies has made lives in Nepal miserable as the Indian blockade has strongly impacted life across the country resulting to a humanitarian crisis.
Dr Surendra Labh, social researcher and political economist, observed that given the current crisis, industries across eight south eastern Tarai districts have either been closed or are on the verge of closing down, with entrepreneurs and youth looking at migration as an option. "While there is a lot of agricultural activity across the Nepali border, the scale of activity on the Nepali side has diminished significantly," he said, highlighting the burgeoning shadow economy coupled with increasing unemployment. "Real estate and banking have also felt the heat of this ongoing crisis."
Likewise, former president of Nepalese Young Entrepreneurs Forum (NYEF) Ajay Pradhanang focused on how export-oriented industries have been affected as they are dependent on India for raw materials. He also added that the construction industry has been adversely affected by the blockade.
On the occasion, former vice chairman of National Planning Commission (NPC) Shankar Sharma said three things are moving the economy despite the current crisis -- agriculture, remittance and access to essential commodities via the shadow economy. He also emphasized the need to increase trade diversification, and meet the energy and food security needs of the country. "Nepal should find political solutions to the ongoing crisis and step up its diplomatic engagements," he suggested.
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