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(2) How to more eff ec� vely integrate Nepalese economy through trade and
investment especially with neighborhood (India, China) economies, regional
(SAFTA; BIMST-EC) as well as global economies and maximize benefi ts from
globaliza� on through promo� ng exports in which compara� ve advantages
and compe� � ve edges do exist ensuring a high, sustainable, broad-based
and inclusive growth rate? and, thirdly: (3) How to mobilize bilateral,
regional and interna� onal coopera� on on a greater quantum especially
from neighboring countries, development partners from OECD countries,
WTO and mul� lateral funding agencies (ADB, World Bank, IMF, UNDP etc),
and eff ec� vely maximize the produc� vity of foreign aid.
Approaches to Sustainable Development
The vision or mission of Nepalese economy should be to build a strong
economic na� on-state through ac� ve par� cipa� on of the people ensuring a
high quality of life to each individual and household within given � meframe
(Dahal, 2004). The primary objec� ves of Nepalese economy should be to
increase the diminu� ve magnitude of GNI from approximately US$ 13 billion
as of 2009 to US$ 100 billion and transform the economy from extremely
low GNI per capita (US$ 440) to a higher GNI per capita (US$ 3,000) at par
with middle income countries by achieving a high, sustainable, broad-based,
and inclusive economic growth and elimina� ng absolute poverty by 2025
(medium scenario) and; ul� mately, make Nepal the “Switzerland” of Asia
(high scenario), especially by:
(a) Increasing produc� on and produc� vity of agriculture par� cularly
high value crops through moderniza� on and commercializa� on
of agriculture (APP, 1995) in conformity with the spirit of Green
Revolu� on, and also enhancing produc� vity of manufacturing sector
through improving industrial rela� ons;
(b) Penetra� ng bilateral, regional and interna� onal markets through
expedi� ng exports of viable products with compara� ve advantages
and compe� � ve edges such as carpet, garment, handicra� , pashmina
and lintel;
(c) Maximizing benefi ts from neighborhood economies through moving
into “zero tariff regime” especially with India and China separately
and crea� ng a ‘revolving fund’ to ini� ate mutually benefi cial megaprojects,
and also expedi� ng similar eff orts with Euro Zone, The US,
Scandinavian countries (Denmark, Sweden, Norway and Finland) and
Asia-Pacifi c region especially Japan, Australia and New Zealand;
(d) A� rac� ng considerable degree of FDI in priority sector especially
infrastructure (hydropower, road and tourism sector), and the target
should be to produce required level of electricity for elimina� ng loadshedding
by 2015 and, subsequently, export surplus electricity to
India.
(e) Mobilizing both FDI and indigenous investments to construct
highways connec� ng north-south, east-west and India border, and
the SAARC region;
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Changing paradigms of aid eff ec� veness in Nepal