ECONOMICS AND POLITICS IN NEPAL
The United Nations food and agriculture organization and the World Bank identify the economy of Nepal as agricultural. The country depends on farming as the main source of economic activity besides manufacturing, tourism and trade. However, in the recent years, the country has made tremendous efforts to capitalize on manufacturing and technological sectors. The move has been termed as clever by economists saying that it would boost the country’s economy tremendously. Currently, Nepal’s gross domestic product is US$ 67 billion in which 35.5% is driven by agriculture which has employed 70% of the population. Statistics show that eight out of every 10 Nepal citizens practice farming where their main cash crops include; oil seeds, tobacco, sugarcane, tea and jute.
Ancient Nepal Economic Activities
In the past, the economic activities of Nepal were considered as poor even though the agriculture sector still provided the largest percentage of occupation. Despite the poor conditions, we can still remember the good things about the ancient Nepal. During this period, there were good rules that governed the country and all business people were protected by the law thus it was easy for each and every person to create their own source of income without interference. Agricultural activities were conducted without any issues and farmers in the country were all happy about the opportunities that were available. The current situation in Nepal has seen farmers suffer from huge setbacks due to the political climate that the country sets for its citizens especially during the periods of elections. A discussion with one of the citizens of Nepal at their capital Kathmandu gave us the point that, Nepal’s urban population is increasing day by day thus denying the city of the agricultural land it used to have. Previously, Nepal’s capital acted as an agricultural center as people conducted their farming activities in the city’s outskirts and later sold their products in the urban area. The case is not similar today as most of the urban land has been occupied by city dwellers most of whom work within the city while others are looking for alternative sources of employment, and education within the city.
Nepal’s Economic Freedom
Despite the fact that the economy of this country is agriculture dominated, the country lacks entrepreneurial enthusiasm. Government interference is the major issue that has affected efficiency in the sector and further the rigidity in the agricultural sector.
Effects of Politics
Political environment has always interfered with economic activities in many countries. Nepal has suffered a blow to this issue though the rules set by politicians in order to benefit themselves. The rich business politicians set rules about agricultural products so as to ensure that there is maximization in terms of resources they benefit from in this sector. Political temperatures have also played a key role in the country’s economic situation with elections acting as a stopping point for economic development.
A survey conducted by the World Bank indicated that in Nepal, as the country moves towards a politically active period, there are numerous cases of investors pulling out of the country. The reason why this occurs is because the country suffers from huge rates of corruption, violence and rigidity when it comes to sells of agricultural and manufacturing products. Most of these issues according to the citizens are attributed to the need to raise sufficient funds to finance campaigns by the politicians.
Economic and Agricultural reforms
Reforms in the agriculture sector that will see economic development has seen major political powers gaining interest in a bid to win the trust of the citizens. Reforms in agriculture are majorly characterized by land reforms which will see small peasant farmers in Nepal benefit and regain their sources of income. As seen earlier, a majority of Nepal citizens depend on agriculture for food, education and sustainability in the country. As a result, land reforms would be important for the people’s interests and empowerment.
Land ownership, agricultural and agrarian land reform were put forward by the governments since 1950s. However, the country still experiences problems with regards to the land due to poor governance and long government procedures. From time to time, regimes keep on changing with no change in terms of economic situation.
Taxes on goods
Traders in Nepal keep on complaining about issues with regards to taxes on agricultural products that are seen to be relatively high. These taxes affect the local people who depend on agriculture as their main source of income.
Constitutional reforms are currently underway with debates on land reforms and the issue of taxes on agricultural goods underway. Even though this effort is in progress, Nepal politics still remains as a hindrance towards a smooth process. Conflicting political parties keep on providing different drafted reports on constitutional amendments thus keeping on delaying the process that has been underway for a longer period of time. To promote economic freedom, efficiency and open markets, the government of Nepal needs to work on a way to set the agricultural sector which is the economic powerhouse independent and free of politics and corruption from the leaders in power.
References;
Bhandari, H. (2016). Small Peasant Agriculture and land reform in Nepal: Politics of contestations and contradictions. Ngofederation.org. Retrieved 25 February 2016, from http://www.ngofederation.org/index.php?option=com_content&view=article&id=66:small-peasant-agriculture-and-land-reform-in-nepal-politics-of-contestations-and-contradictions&catid=36:president-blog&Itemid=73
Aljazeera.com,. (2015). Analysis: Blockade politics in Nepal. Retrieved 25 February 2016, from http://www.aljazeera.com/news/2015/10/analysis-blockade-politics-nepal-151009193817262.html
