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| Kathmandu, Saturday March 29, 2003 Chaitra 15, 2059. |
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What Nepal needs
I was very interested in Krishna Bahadur Mahara’s
new proposition of free market economy. I am a student of economics here in the US and so
far what I have tried to learn about the Nepalese economy is that I can’t figure out
anything. There are several factors influencing the functioning of the economy in Nepal
that would create more dummy variables. I don’t know whether Mahara is economically
educated. But one thing is certain: in order to stimulate the economy we need first
government spending either in the form of investment or tax returns (which is very
unlikely in Nepal). Then the level of consumer spending must be elaborated. The basic
target is to keep the money in the economy, either through investment or savings. The
people could either save or spend the extra money. Either way, the money is being
circulated in the economy. Consumer spending is the largest driving factor of the economy.
In the US, customer-service is worth about 65 percent of the consumer spending.
We should initiate credit based investment by
banks and encourage consumers to start financing. Youth should be highly motivated to work
as they account for such a large portion of the labour force. Corruption should definitely
be controlled with strict regulations like "life in prison" with hefty fines.
Ashish Singh
IA, USA |
