“I believe the Youth are our future Teach them well and let them lead the way” And I’m ‘up’ with the youth of today, Time to change the Nepal. Nepal is a country which has been ranked by United Nations under the least developed nation which the GNI 1260 US$. A country with GNI per capita at $2,500 to 4,999 falls under the low income group, whereas a country less than $2,500 fall under the very low income group and so does Nepal comes under the same category.
GNI per capita is a good first step toward understanding the country’s economic strengths and needs, as well as the general standard of living entertained by the citizens. But the general standard of living enjoyed by the average Nepali citizen is way too low; most of the Nepalese family goes to bed empty stomach. The Living standard of Nepalese has been worsening over the years. Nepal is a country where unemployment rates are too high and subsequently accompanied by illiteracy. There are numbers of small scale firms and industries in Biratnagar which have been shut down from years and long. The Cement factory in Chobbar is one of the pertinent examples for it. As mentioned by Samriddhi Foundation these independent business sectors almost never grow in Nepal; they never get a chance to expand to become medium or large-sized operations. And what are the preventing factors for it?? Why are they lagging behind?
A new firm in Nepal is always scared to enter into the market because of the policies made by the government al agencies, too much red tape for entrepreneurs trying to sprint a firm, the process to get the company registered is very slow and there are even instances of taking a whole year and the tendency of under table dealings. Well, another top most reason is the margin of tax charged; the firms they go pay taxes every of the month and all the get in return is the increased tax rates and the liability to pay the tax.
Government participation /( interference) in the economy of Nepal was very strong, beginning with the Rana period, which lasted from the mid-nineteenth century until the mid-twentieth century. During Rana rule, there were very few industries other than cottage type, and they were under strict government supervision. After the fall of the Ranas in 1950-51, economic planning as an approach to development was discussed. Finally, in 1956 the First Five-Year Plan (1956-61) was announce, but the plans didn’t go well for example: approximately 1,450 kilometers of highways were targeted for construction, only about 565 kilometers were built and the 2nd 5year plan, third 5years plan and 4th and 5th and 6th and 7th the planning kept on going and more the planner plans, more the plans started falling apart. The government continually tumbles to use all committed foreign aids. Still they are guided by the same old Governments participation or (intervention) modality.
Well, if a poor nation like us invests the budgets more in education and does not destroy the incentives for its citizens to acquire ideas from the rest of the world, it can rapidly take advantage of the publicly available part of the worldwide stock of knowledge. If, in addition, it offers incentives for privately held ideas to be put to use within its borders—for example, by protecting foreign patents, copyrights, and licenses; by permitting direct investment by foreign firms; by protecting property rights; and by avoiding heavy regulation and high marginal tax rates—That will attract more investors and the firms to come into action and its citizens can soon work in state of the art productive activities.
Post by: Riya Basnet
Originally Posted @ link