NPC identifies seven drivers of economic growth

 Kathmandu, Mar. 5:

The National Planning Commission has identified seven drivers of economic and social transformation of the country.

In its concept paper of the 15^th periodic plan 2018/19-2023/24, the planning body has said that modern network of transportation as well as information and communication technology are the primary requisite of the long-term development.

Similarly, high-skilled human resource creation and its utilisation, hydroelectricity production, high productivity and competitive capacity in agriculture, forestry and industry, quality tourism service, managed and modern urbanisation, and provincial and local economy are considered as the drivers of transformation.

The NPC has also identified 12 prosperity goals and 23 happiness goals. 

The happiness goals include national integrity, respect and security, strong democracy, good governance, healthy and balanced environment, civilized and just society, and are being included in the periodic planning of the country for the first time.

The concept paper has clearly defined the roles of the major actors of the economy – federal, provincial and local government, private sector and cooperatives.

"Cooperation and coordination among the sub-national structure is needed for the development. The governments will work to create policy, investment friendly environment and facilitate the investors, and create good-governance while the private sector will be a major partner in economic progress and job creation," said the NPC.

The private sector is also expected to help in mobilising internal and external investment to support capital formation and join hands with the government in public-private-partnership (PPP). 

Similarly, cooperatives are expected to mobilise local resources, labour, skill sand capital, and mobilise savings of the low-income people.

As the country is aspiring to graduate from the Least Developed Country (LDC) to the developing nation by 2022 and become a middle-income nation with US$4,100 Per Capita Income (PCI) by 2030, it needs to invest about Rs. 900 billion in infrastructure development every year but the size of the capital budget is less than half of it.

The government plans to construct 70,000 kilometre of roads, generate 15,000 megawatt of electricity and build 2,000 km of railways in the next 10 years. 

In addition to it, the country has multiple obligations to meet in order to achieve the Sustainable Development Goals (SDGs) which includes reducing poverty to 5 per cent, increasing per capita food grain production to 510 kg from 457 kg and end HIV epidemics.

However, the government and multilateral donors have said that the macroeconomic situation is improving. 

A couple of months ago, the Asian Development Bank (ADB) had said that consumption expenditures went down to 86.5 per cent from 89 per cent and both public and private investments surged last year with fixed investment expanding by 15.7 per cent to account for 30.8 per cent of the Gross Domestic Product (GDP) up from 28.3 per cent.

Roadmap of long-term development

2019	2022	2030	2043
·    Completion of 14th Plan ·    PCI US$1,012	·    Graduating to developing nation from LDC ·    PCI US$1,500	·     Achieving Sustainable Development Goals ·     High middle-income nation ·     PCI US$4,100	·         High-income developed country ·         PCI US$12,500

Source: NPC

Published in The Rising Nepal Daily on 6 March 2019.