Inclusive growth came into existence when the developmental models and theories of economic development could not address people from all walks of the society. When one sector developed and prospered, the other remained undeveloped. In the race of economic development, the riches went on getting richer while the poorer went on remaining poorer. Similarly, the difference of classes was clearly visible. In the context of South Asia and especially Nepal, the diversity of ethnicity and caste system was equally diverse in terms of the prosperity and level of development. So, the model of inclusive development for Nepal should be an attempt to bring such marginalised groups of people that have been in poverty and fallen backward in the process of mainstream development, no matter to which caste or ethnic division they belong to. The aim must be the economic prosperity and increased level of human development at the same time for people living in the grassroots. 

 

But, where I think the Nepali politics failed to hit the right chord is, it mostly focused on devolution of state power and territory more than on equal distribution of resources and ways to attain balanced development throughout the country. We focused more on federal models based on identity politics. The identity based federal restructuring alone cannot ensure inclusive development. It more or less takes of economic development that can reach to the majority of people. Though the inclusive development tilts more towards the social development and social inclusion, it cannot be separated from the economic development. 

 

- Pratikshya Bhandari, Shantinagar, Kathmandu

 

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Market Presence 

I believe Mahindra and Mahindra remains far behind Sworaj and Sonalika tractors in far western and mid western Nepal. One of the reasons behind this is that tractors from Mahindra and Mahindra are priced comparatively higher. Although this brand has worked with Agni Incorporated in Nepal, I don’t find it having aggressive and effective marketing policies compared to some of its biggest competitors. 

 

- Arjun Kshetry via website

 

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Home Stay 

Home stay service initiated in Buraunse, one of the remote villages of Humla district is a praiseworthy initiative to bring tourists to Humla. It would not only allow experiencing the lifestyle and culture of Humlis first hand, but also provide a source of livelihood for local people. The culture, traditions and the scenic beauty of Humla can be a perfect destination to domestic tourists, researchers and also trekkers from abroad. The home stay facility initiated by the Great Himalaya Trail there could lead to an evolution of tourism activities through replication in surrounding villages and the development of tourist friendly attitude in local people. In remote villages similar to those of Humla, people can make tourism their main source of income and create markets for local products. But the development of tourism in villages would not be possible only through local initiative. It must be backed by state policies and projects for the promotion and development of tourism activities. 

 

- Sandesh Niroula, Biratnagar 

 

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Merger Movement 

After much talk about the merger of banks and financial institutions, it seems conversation has shifted to the insurance business. Insurance is also another sector where companies have not reached the majority of Nepal's population. First, the general public is less aware about the benefits of subscribing to life and non life insurance policies. Second, insurance companies too are failing to penetrate the market and create awareness. Moreover, insurance subscription is related to the level of disposable income as a certain amount of monthly income is allocated for insurance premiums. Likewise, in the Nepali market, non-life insurance is still infantile. Apart from large companies, it has hardly reached the consumer level. 

 

In an immature market for insurance products, the regulator has come up with a directive to raise paid-up capital for the companies. Therefore, it would be better to go for a merger and create a synergy effect to work effectively in the market. It would help to create a stronger company with wider reach and larger customer base. But there is not harm if companies choose to increase their capital through other means. 

 

- Bimala Nakarmi, Dhobighat, Lalitpur 

 

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A complete package 

I am a regular reader of the New Business Age. I am a finance student and have keen interest in banking and financial issues. The content provided by the magazine is a complete package that benefits enthusiasts like me. I would like to thank the New Business Age team for putting a huge effort on making the magazine an “all-economic and all-financial package”, where all curious minds have plenty of answers and guidance to their dilemmas. Good luck, and keep it up. 

 

- Amit Gnawali, Butwal, via website

 

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