www.cnind.org
CNI: Policies
I
n Nepal economic reforms started in the mid-1980s and were intensified and augmented in the early 1990s immediately after the restoration of democracy in 1990. Since the early nineties,
Nepal has implemented extensive legal and policy reforms to facilitate its integration with the global economy. Like many other developing countries, Nepal as a democratic republic has pursued an inward-looking and state-led development strategy through central, provincial and local level. However, the impact of these reforms on trade, economic growth and Foreign Direct Investment (FDI) has so far been weak. Lack of co-ordination between central, provincial and local government, the political instability, lower literacy rate, under-utilization of the available resources, geographical difficulty, etc. are some of the reasons behind Nepal being unable to attract a large number of investors. Unlike other years, this year the Corona Virus Pandemic has largely hampered the domestic as well as foreign investment performance. Despite all these, CNI believes that Nepal still can grip the opportunity to lift its economy through privileged access to a well-disposed neighboring country with large markets, young generation population, a flourishing local entrepreneurial culture in both small and large business and expanded Networking and Economic Diplomacy at national and international levels. With abundant natural resources, Nepal can reflect itself as a potential nation to attract ideal investment packages for both domestic and foreign investors. For this advanced reform in the existing policies as well as incentives and reforms for the industries of Nepal must be prioritized. With this view, CNI aims to work with the Government and Development Partners for improving the investment climate, investment performance and industrial development. In order to achieve economic growth, CNI adheres to the following policies while performing its activities: Foreign Direct Investment (FDI) is one of the important engines for
investment and FDI can be attracted to
economic development. However, there
infrastructure projects.
is a tough competition to attract FDI
Productivity, the most crucial variable
in their respective countries. CNI, in
for dynamic economic growth and
association with the Government of
employment creation, is low because
Nepal, will make an effort to change the
the government is not oriented towards
mindset of foreign investors from ‘Why
productivity enhancement —rather they
Nepal’ to ‘Why not Nepal’.
are focused on cheap labor. CNI will
Infrastructures are crucial for the
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investment policies so that private
function to enhance industrial relations;
investment promotion and industrial
much more investment in human
development of a country. To develop
resources; paying living wages including
infrastructure at a faster pace, besides
Social Security Fund (SSF); introduction
peace and security, CNI will help the
of modern technology, and a strategic
Government of Nepal to bring favorable
vision, based on consensus and making
CNI CHRonicle 2019-20
