Current Situation of Political Economy « Khabarhub


Nepal’s political economy is said to be going through difficult times. Economists are concerned about the decline in economic and financial indicators after the impact of the insurgency, earthquake and COVID 19 on the political economy.

Politicians are preparing for elections and economic issues have been sidelined for many years on the main task of transforming the aftermath of democracy enhanced by progress, prosperity and paxonomics (economy of peace).

Liberalism comes to the fore when capitalism and its free market economic doctrine find the most difficult challenge to consolidate in a fragile politics and especially an Eastern state where advanced economic and financial systems have been nascent since 1990.

One may wonder to what extent the Nepalese market is free and to what extent politically and economically the Nepalese people are sovereign?

It is curious that complex elements and factors determine how politics and economics interact in the Himalayan state of Nepal when politics states that the people rule and the consumer state economy is the sovereign.

Democracy – liberal version against radical version braved the onslaught of variants of the left when it perceived that the politico-economic system did not include the ignored and marginalized sections or class in the process of financialization and capitalization.

As globalization has brought migrant workers to the coasts of West Asia and Southeast Asia, remittances have eased the burden on the household economy in rural areas and the hinterland – country of limited economic resources and means of employment.

The theory and practice of economics would indicate the problems and the solutions, but politics also comes up in these cases, as in any field, for example in science and technology (earthquake or COVID 19).

The situation in Nepal is quite difficult when politics govern daily life and mundane activities. So there is no optimism ahead when situations are not favorable for start-ups to revitalize capital – social, human and financial.

Thus, there are apprehensions of economic indicators not corresponding to the aspirations of time and circumstances of the teeming population.

Is the current state of the political economy bad or getting worse? Is it the poor economy or the economy that is poor?

Or the economy that mattered to the classes that profited from the state? Is it the legacy of economic profits that has benefited the liquidity of classes?

Admittedly, the economic nexus has not covered citizens and a circular economy has not connected well to rural-urban systems.

Economists are blamed for the economic downfall due to fiscal policy that sees no results or implementation gaps in rhetoric and reality.

I wonder if economic growth itself reflects economic development or if its quantification is genuine or false.

All of these disasters signal that the state of economic affairs is not going to be business as usual. Will either the critique of capitalism and the market economy increase, or its utopian perfection invoking the tense and anxiety-provoking perception of money, work and assets?

How can we find solace in these pinpricks of the desire for money and market satisfaction? How to obtain quality goods and services at the best price? How can we buy products where access and needs are maximally met?

How does politics or power exercise itself to provide these necessities and articles to those who need them and to those who seek where and what the rich yearn to have?

Seniors are counting every penny and saving for an uncertain future. Accountable responsibly to avoid omissions and commissions, the ancients used to check for corruption and embezzlement, any untoward and unexpected abuse and misuse of limited resources.

In a similar circumstance, the channeling of the saved resources could be committed to the sectors where it is most needed. It would multiply economic potentials and its forerunner political coordination would build a strong economic nation-state. Nepal has been yearning for ages.

It is unfounded when the public does not criticize any of the development models or paradigms pursued by Nepal. Nepal’s development project is defined in national plans, policies and programs.

The only need is a political will not only to talk about politics but also about political management. Politics is not just about power or position.

Like all leadership, it is about the management and administration of development – ​​political, economic and social.

These are simple contemplations of the discourse that seeps into our political ecology. After the publication of the white paper and the monetary policy, the economic and financial system is said not to be robust and solid to support and support the national treasury.

With a frenzy of globalization accelerating when it has suffered misfires amid natural and man-made disasters, Nepal has to follow and execute policies that are formulated so far unceasingly, though adjustments contingent policies.

There is no other way than to sharpen the focus on public policies and deliver urgent content pronounced therein. Otherwise, the democratic paradox coexists with political paranoia. Let me discuss a few examples of how development issues arise in our society.

Recently, the World Bank abrogated $138 million loan agreements when locals blocked the Nepal-India hydroelectric grid system from east (Hetauda-Dhalkebar-Inaruwa section) to west (Hetauda-Chitwan section -Bardaghat).

So far, 85% of the allocated funds have been used while an unused $30 million has been canceled according to media reports.

According to the project staff, 12 billion rupees is needed to complete the project, but due to local opposition over land money retribution issues, disputed infrastructure corridor law and land issues. forest management, its cost becomes more expensive and heavy.

It is difficult to tackle it given the prevailing politics. On the contrary, such obstructions can cause Nepal to lose money from India when the hydroelectric power produced is wasted.

This could support the global green policy of a growing clean energy-hungry economy of India and other South Asian countries like Bangladesh and Northeast India.

Another categorical example of a degraded economic scenario is the deposit-to-loan ratio which is disproportionate.

It shows a balance of payment deficit, an increase in the volume of imports, a scope of interest-free export and an import substitute to the nature of trade, commerce and business, a need for a formal policy of favorable channeling of remittances, capitalization of development expenditure and limitation of aid dependency syndrome and political incentives to attract FDI, etc.

It can reform savings and maturities as a sustainable economic solution to liquidity crises. Likewise, it supports the balance of interest rates.

The Central Bank of Nepal has released a current statement of Rs 3 billion which is in the balance of the public treasury.

The Central Bank says it can direct Forex money to 7-month trading patterns that make the dollar available to run an import-dependent Nepalese economy.

On the one hand, it is quite interesting to find the posture of the Auditors Association of Nepal which has demanded the cessation of irresponsible and inappropriate activities related to the auditing industry/companies. It intends to maintain good governance and an anti-corruption stance in conducting its sectoral activities during its upcoming 6th National Convention.

He proposed approving these Allied issues in the 17-point special resolution. On the other hand, the war in Ukraine has driven up inflation and rising prices in global economies.

It is said that 95% of edible and petroleum oil from Ukraine and Russia would increase the market price of goods and services in Nepal’s dependence on these warring countries.

The economy of conflict is a feature of the state in international relations. It is said to be intrinsic but needs to be nipped in the bud of international mixing and its economic thermidor.

The cost of war suddenly embarrasses those who pursue economics in peace. While in the fiscal year 2078/079 VS, the Nepal National Pride Project achieved a level of work of 18%.

Liberal realists would position themselves on a balance between optimism and pessimism to become human citizens, a perspective to subscribe to as populism and criticism have become the norm in the state of public and international affairs.

Activities therefore need care and attention where we are operating and where we are behind schedule to keep everything in sync to keep the system running and citizens happy.

These instances of development obstacles and constraints exist in the current situation in a country where there are achievements in the human development indices if one remains optimistic about epochal changes in our interesting times.

Thus, a level of prosperity matters when potentials are stunted and opportunities are wasted. Politics makes politics and bureaucracy administers to see its fruits.

Many used to say a silver lining after every crisis. There is certainly a grain of truth in the economic kinetics after a break in momentum.

The theory and practice of economics would indicate the problems and the solutions, but politics also comes up in these cases, as in any field, for example in science and technology (earthquake or COVID 19).

Therefore, a public policy enterprise is most pronounced when politics, power, and position wield enormous influence in shaping the flow and control of economic, fiscal, financial, and monetary trends domestically and internationally.

Liberal realists would position themselves on a balance between optimism and pessimism to become human citizens, a perspective to subscribe to as populism and criticism have become the norm in the state of public and international affairs.

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