Selecting high-profile officials at vital organizations has of late become a political exercise rather than a merit-based act. The High-Level Economic Reforms Advisory Commission, headed by former finance secretary Rameshwar Khanal, recently presented a report that warned that public trust in regulatory institutions is diminishing owing to bias and pressure from vested interest groups. These institutions are never meant to fall victims to political interference as they are important bodies to steer the nation out of troubles. The recent delay in the appointment of the new governor of Nepal Rastra Bank (NRB) speaks volumes about how political interests make or mar such appointments. As the country's monetary regulator is left without a head, uncertainty grows in the financial markets. Likewise, appointments have not been free from controversies in Nepal Insurance Authority, Securities Board and Nepal Electricity Authority, as they drew attention over candidates’ qualifications, independence, and political affiliation. These institutions are responsible for ensuring accountability and safeguarding the public interest, especially when the economy is suffering.
Delay in appointments cripple administrative performance as well as state institutions. Following the expiration of NRB governor Maha Prasad Adhikari's term on April 6, a new appointment was awaited with urgency. Political parties, however, have been squabbling, bypassing the official recommendation of the committee as it has been alleged of infighting and backroom maneuvering. The government tried to change the age limit for appointing the governor, which invited a Supreme Court verdict against it. Such acts raise public suspicion. When the law is bent for expediency, institutions lose their credibility. Analysts and the NRB officials favor a criterion based on expertise and integrity for the selection of a new governor. They argue that appointments need to be made of people who possess the capability to run the monetary system on their own and make sound decisions without being under political pressures. The central bank governor is a technical hand with a deep understanding of monetary policy implementation based on economic dynamics. The Khanal commission report calls for actions that can be taken in the short term to stimulate demand and sheds light on structural changes in the long term. These include making the climate more investment-friendly, reducing the costs of production, and improving competitiveness. But all this is possible only when a nation has strong, effective institutions, with the right people in leadership.
TU establishes appointment criteria to prevent political interf...
Merit-based appointments can make regulatory bodies function more efficiently and independently. Individuals who are professional and expert tend to prioritize evidence-based decisions and are resistant to political manipulation. This improves institutional performance as well as public confidence in such bodies. However, political parties and leaders who view appointments as gaining influence can act as a resistance to merit-based appointments. Ultimately, the country needs a vibrant legal structure efficient to deflect any political interference or control over high profile appointments. The principles of eligibility must be followed at all levels. The committee to select candidates should be neutral and given authorization to deal with any political pressures. Meanwhile, citizens, media, and non-governmental players must remain alert and must protest whenever politics come into play. If the government desires to repair our beleaguered economy, it must begin by fixing how it makes high-level appointments that steer vital institutions.
