Speaking at an interaction program on the NDSP, which the government is presenting as its main development strategy paper at the upcoming Nepal Development Forum (NDF) meeting scheduled for next month, Goldmark said that the economic growth target has failed to recognize ground realities.
The economic growth target set by the NDSP is difficult to attain, as the strategy paper seems to have ignored the impact that the global financial crisis might have on the domestic economy, she said and urged the government to revise it so as to be taken seriously by donor representatives during the NDF meeting.
The NDSP, which also forms the second part of the Three-Year Interim Plan, has set a target of investing Rs 1,324.5 billion to achieve an average economic growth rate of 7.6 percent and lower the national poverty level to 21.5 percent over a period of the next three years starting from mid-July 2009.
Regarding the proposed investment, Goldmark, country director of Nepal’s largest lender, said that it would be challenging to mobilize the planned investment as long as investors do not feel considerable improvements in the environment for doing business. The strategy paper should pay due attention to checking erosion of business confidence and this can be done by improving the law and order situation, she said.
Apart from a long-term energy development program, Goldmark also urged the government to bring in short-term projects to develop hydropower and added that the NDSP needs to have different case scenarios to address future global and domestic economic conditions, which are difficult to predict.
She also said the NDSP is silent on public finance management and public procurements and stressed the need to focus on issues and to improve government accountability towards the people. “Promise less and improve deliveries,” she advised the government.
Presenting the NDSP at the interaction, Dr Guna Nidhi Sharma, vice-chairman of the National Planning Commission, said the strategy paper aims to mobilize Rs 5,32.2 billion worth of revenue, Rs 233.3 billion in foreign aid and Rs 70.8 billion worth of internal loans to finance development activities for the three-year period.
Dr Sharma informed the gathering that the total resources gap is expected to be Rs 115.7 billion and expressed hope that the donor community would bridge this gap. He also expressed confidence that effective implementation of the three-year plan will lay the groundwork for achieving double-digit economic growth.
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