Rays Of Hope
MINISTER for Finance Dr Badri Prasad Shrestha has said that the country's economy has
shown some positive signs of improvement and progress after the declaration of cease-fire
by both the government and the Maoists. Addressing the 22nd national convention and annual
general meeting of the Management Association of Nepal (MAN) in Kathmandu the other day,
Minister for Finance Shrestha said that good management and economic progress are not
possible in the absence of peace. Economic growth requires adequate investment and
investors do not risk their money in any sector when the country's situation is chaotic
and uncertain. Thus, peace is a must to build the confidence of the investors to ensure
economic growth. Nowhere in the world has economic progress taken positive shape in times
of uncertainty, instability and conflict. Mismanagement and economic downturn are the
results of conflict and chaos. Nepal was known as a peaceful Shangri-la in the world.
However, the country lost the peaceful environment due to violence and conflicts over the
last seven years. As a result of growing violence, every sector of the country suffered
much. Tourism, considered as a major source of income of Nepal's national economy,
witnessed difficult times. Investors feared to invest resulting in the decline of economic
growth. Export trade continued to decline widening the already huge trade deficit with
other contries. Although the government initiated the policy of economic liberalisation,
privatisation and several other economic reform measures, they hardly led to any
improvement because of the absence of peace and stability in the country. Mismanagement
also marked a record high in the last one decade. Statistics have shown that many public
enterprises and other organisations have not been able to make profit. As observed by
Minister Shrestha, public enterprises were losing about 22.5 million rupees daily, simply
due to mismanagement coupled with insecurity and instability. However, the present
government is making sincere efforts to create a conducive atmosphere to build confidence
of the investors and entrepreneurs so that the economic status of the country could be
raised. As peace is the first and foremost requirement, the government accorded number one
priority to restore peace and stability by ending violence. The recent cease-fire between
the government and the Maoists is an evidence of the success of the government in its bid
to restore peace in the country and accelerate the pace of social and economic
development. As some signs of improvement have already appeared in the economic front
after the cease-fire, the momentum of peace process has to be pushed further up. For this,
cooperation from all sectors is highly needed.
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