FNCCI moves to bring political forces to common point

KATHMANDU, JUL 04 -

The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has been making efforts to bring all the political forces to a common point on the economic agenda. It has completed a draft of its “Common Strategy for Sustainable Economic Growth” which it believes could be the consensus document for the country’s economic development.

The strategy has envisioned making Nepal a middle income country with an annual economic growth rate of more than 7 percent within 20 years. It has set short- (12-18 months), medium- (five years) and long-term (10 years) goals. According to the FNCCI, the strategies that will bring about sustainable and long-term economic growth in Nepal are based on a platform of strong collaboration between the government and the private sector.

The FNCCI has said that the sectors that can directly influence growth in both the short and long terms are tourism, hydropower, agriculture, infrastructure, trade and education. “A common focus with proper reforms to encourage and facilitate development in these sectors will be the key towards the country’s economic growth,” said Suraj Vaidya, president of the FNCCI.

Vaidya said that with the country going through a transition, the private sector needs to develop a common economic agenda to be approved by the government with the consensus of all the political parties in a bid to foster undisturbed economic development. He added that the FNCCI submitted the first draft of the common economic agenda to the prime minister a week ago.

The FNCCI has sought clarity in the role of the private sector and the government’s guarantee with respect to property rights, rights to be engaged in business, a competitive business regime, no fragmentation of the market, a robust competition regime and a well functioning regulatory framework. It has also called for enforcement of contracts and swift judicial remedy for business related conflicts.

The strategy states that the constitution should guarantee that the property of an individual shall not be expropriated by the state. “The right of the individual should not be curtailed under the pretext of protecting the rights of a group. If the state has to acquire the property of an individual for a certain public benefit, it should be done only after paying compensation based on market prices,” states the draft.  

As the country is heading towards a federal structure, the FNCCI has demanded that restructuring should not lead to fragmentation of the national market. The draft has recommended that there should be total freedom of movement of goods and people and that the tax rates in various units of the state should be harmonised.

The FNCCI has called for greater involvement of the private sector in tourism development. According to the draft, the private sector should be allowed to develop regional airports in Pokhara, Lumbini, Janakpur, Nepalgunj and Biratnagar. The draft has suggested turning Lumbini into a centre of spiritual tourism and learning and opening new trekking routes in Mid and Far West Nepal.

The draft has also recommended that the existing structure of the Nepal Electricity Authority (NEA) be unbundled into three separate entities—generation, transmission, and distribution—for development of hydropower in the country.

It has proposed developing Nepal as a medical and educational hub. It has suggested that Chitwan, Dharan and Nepalgunj be developed as medical centres while Dhankuta, Palpa and Dadeldhura be developed as educational hubs. The plan has urged the government to provide land to investors on contract basis and put stringent conditions on their service delivery.

In order to achieve the goals, the FNCCI’s plan suggests that the government and the private sector work in collaboration. “For years, the government and the private sector have been confronting each other with separate plans and understanding of progress,” stated the draft, “For balanced, sustainable and long-term economic growth, both the private sector and the government have equal and important roles to play.”

The draft has mentioned problems like political instability, power shortage, lack of security and order, corruption, militancy and politicisation of trade unions and inadequate infrastructure as major hindrances to economic growth.

The draft has also said that the private sector leadership of the country has not been able to provide a nationally accepted vision that will influence the country’s policy making. “Nepal’s private sector has been fragmented into various interest groups and has been more of a reactive force than a proactive force,” stated the strategy paper.

Source: http://www.ekantipur.com/2012/07/04/business/fncci-moves-to-bring-political-forces-to-common-point/356585/