Country Presentation: Nepal

5 May 2009 (8:30 a.m. - 9:30 a.m.)

From Insurgency to Economic Transformation: Nepal Maoist-led Government Seeks Partnership with Private Sector

Nepal has seen a sea change in the recent years. After suffering from a decade-long violent insurgency that claimed thousand of lives and political turmoil including a royal coup, and the abolition of the 250-year-old monarchy, Nepal now stands at a historic moment of great opportunity and hope. A groundbreaking peace agreement signed between the Communist Party of Nepal/Maoists and the then Government in November 2006 ended the civil conflict and provided the much needed peace and stability to the country. Since coming to power after a stunning victory in the Constituent Assembly Elections held in April 2008, the Maoist-led Government has focused on the nation's reform and development agenda.

The results are there for everyone to see, particularly on the economic front. Since the Maoist Finance Minister Dr. Baburam Bhattarai took office, he has impressed his supporters and critics alike with the surge in revenue collection and with the Ministry of Finance's proactive and effective role in policy formulation. The first ever budget presented last year by the new Maoist-led Ministry of Finance, aimed at taking Nepal out of economic stagnation, with investments in infrastructure and the social sector.

Part of the Government's development priorities has been to seek foreign investment in hydropower generation, a key industry for a nation with huge untapped hydropower potential. Public-private partnerships will be explored to develop much-needed water delivery infrastructure, and build major roads. The Government has also said it wants to create an investment-friendly environment and assist in the creation of new private-sector industries. To its advantage, Nepal also has a large and young labor force, unmatched tourism assets and a well established tourist industry, and it is strategically positioned between the world's fastest growing economies, namely India and the People's Republic of China.

What specific policies will the Government introduce to build on Nepal's economic progress, especially in the key areas of private sector development, FDI, tourism, export promotion and agriculture? What steps will the Government take to encourage foreign and domestic private investment in infrastructure and industry? What role can development partners play to support Nepal's growth?

During their presentation, the Sr. Economic Adviser to the Finance Minister of Nepal, Dr. Sri Ram Poudyal, and the Joint Secretary of the Foreign Assistance Coordination Division, Ministry of Finance, Mr. Kapil Dev Ghimire, will deliberate on these and other issues critical for transforming Nepal's economy.

Presentation: Nepal: Forging Ahead for Political, Economic and Social Transformation

PROGRAM/SPEAKERS

Sri Ram Poudyal
Senior Economic Adviser to the Finance Minister

Kapil Dev Ghimire
Joint Secretary of Foreign Assistance Coordination Division, Ministry of Finance

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