--By NBA Team

 

It was an uphill task, but the gathering of influential leaders and high-level representatives succeeded in adopting a document of a 12-point declaration that renewed their political commitment to lead the country on a path of prosperity and development.

 

The Nepal Leadership Summit 2013 was to bring five former Prime Ministers -- Sher Bahadur Deuba, Pushpa Kamal Dahal ‘Prachanda’, Madhav Kumar Nepal, Jhalanath Khanal and Dr Baburam Bhattarai – in a common platform. The outcome of the event was a 12-point Birgunj Declaration in which the leaders agreed that the path to prosperity is only possible through a private sector-led economic growth.

 

Due to political instability and resultant fragile environment for investment, the dream of prosperity and development continued to be elusive and leaders in the past displayed weak political will to fulfill their commitments for economic development. But it seems they have now realized that the country is desparate for development. And the 12-point Birgunj Declaration was historic in forging a common agenda on economic issues. 

 

Chairman of UCPN Maoist and former PM, Pushpa Kamal Dahal ‘Prachanda’, said that the time has now come to be engaged in production, construction and development of the country. “In fact, our party has come to a conclusion that political stability is not possible without economic revolution,” he informed. “We can break the vicious cycle of poverty in the country only by promoting economic activities and adopting the approach of inclusive growth.”

 

Former PM and Nepali Congress (NC) senior leader Sher Bahadur Deuba argued that the government should not engage in trade or operate industries. “The government treasury was almost empty when NC formed the government in 1990,” he said. “The situation has now changed as we have enough money. The problem, however, is that we have been unable to invest due to lack of infrastructure and the energy crisis.”

 

Deuba stressed on the need for common commitment to end the existing energy crisis. The country will head in the direction of economic prosperity if we will be able to address the problem of infrastructure, industrial security and energy, he added. 

 

Nepal should attract Indian investment and should promote exports to reduce trade deficit, he opined. “The government should reduce all bureaucratic hassles. We should provide tax rebate to companies that create 100 or more jobs.” he said. 

 

The country’s economy remains in a state of confusion, with an expanding budget, energy crisis, trade deficit, inflation, unemployment problem and lack of resources, said former Prime Minister and CPN UML leader Madhav Kumar Nepal. He blamed the revenue-oriented government, the short-term profit oriented private sector and rebellious labour for the slow economic growth. “We need to improve our educational system and ensure that we have the skills to pursue the available opportunities,” he said.

 

Clarity in policy, investment friendly environment and investment in service and production sector will ensure the country’s development, he claimed. 

 

Chairman of CPN-UML and former PM Jhalanath Khanal emphasized the need for policy stability for economic growth. Modernisation of the agriculture sector will have positive impact for development, he said, adding that the banking sector should increase investment in the agricultural sector.

 

Absolute poverty and backwardness are the main problems in the country at present, UCPN Maoist leader and former PM Dr Baburam Bhattarai said. “The country can achieve the target of 10 per cent growth by increasing investment in productive sectors,” he argued. “Key factors that are having negative effect in all sectors of the economy are poor governance and corruption. Another important factor is the decline in investment to GDP ratio, which is one of the root causes of the slowdown in GDP growth,” Bhattarai said. “At least 40 per cent of the GDP should be invested in productive sectors to achieve a double digit growth.” 

 

As of now, the government should ensure that at least Rs 700 billion should be utilized in productive sectors to achieve 10 per cent growth since the GDP now stands at nearly Rs 1,700 billion.” 

 

“We need to build capacity at all levels to deliver as per the policies,” he further said, adding that the first question is whether the country’s economic boom will allow it to break the cycle of poverty.

 

Nepal must focus on developing its skills and human resources, especially by harnessing the talents of Nepali people from around the world, he advised. “We need to make the building of robust private sectors an urgent priority and promote true entrepreneurship because that is how jobs are created.”

 

He also suggested all political parties to balance between China and India to get maximum benefit from neighbouring economic giants. 

 

Chairman of BiCCI Ashok Baid said that political commitment is a must to create an environment of wealth creation through investment, to alleviate poverty, increase the annual GDP growth rate, contain inflation, promote entrepreneurship and generate employment.

In the programme, editor-in-chief and chairman of New Biz Madan Lamsal asked politicians to address economic concerns and map out a strategy with the business community and international support to address the country’s economic problems.

 

Former PMs’ Common Points:

•Nepal is in dire need of economic revolution as it has suffered much during the various political changes of the past

•Energy, agriculture and tourism sectors should be prioritized 

•The private sector should lead the country’s development

•The government should play the role of a catalyst for the development of the country 

•Nepal should focus on turning the optimism on the country’s future into real action

•Inclusive growth must be the main goal for Nepal’s development

•The mood should be changed from thinking Nepal as a poor country to a country that holds hope