Present time should be utilised as opportunity for course correction, say economists
KATHMANDU: Economists have said that although the country suffered significant physical damage from vandalism and arson during the Gen Z protests, the private sector should seize the opportunity for course correction.
They expressed this view in a virtual interaction on ‘Challenges of the Economy in the Current Situation and the Path Ahead’, organised today by the Society of Economic Journalists–Nepal (SEJON). They argued that members of Gen Z were protesting against misrule and rampant corruption.
Former Secretary of the Finance Ministry, Rameshwar Khanal, emphasised that citizens uniting against corruption nationwide should be seen as a positive development. “It is an achievement for us that citizens across the country are united against corruption under the leadership of the new generation. Issues like constitutional amendments are linked to this,” he said. “Now, taking advantage of this opportunity, the government should prioritise reconstruction, the creation of new investment opportunities and boosting investor confidence.”
Khanal said the current problem is not caused by a natural disaster or a pandemic, but by an internal, man-made crisis, making it difficult to secure assistance from donor agencies. “Such a situation was also seen in 2036 BS and during the Maoist conflict. At that time, there was significant damage to physical structures, with major harm to roads and bridges, and communication services were completely disrupted. But that situation no longer exists, so we do not think there will be any major problem in recovery.”
He added that Nepal is quick to recover compared to other countries, which bodes well as it heads towards stability immediately after the Gen Z movement. “This movement also sent a message to the rulers to reform themselves by eliminating corruption and misrule.”
He said, “The demonstration launched by the Gen Z group, the issues it raised and the way it was conducted have helped to instil zero tolerance towards corruption and dismantle the web of crony capitalism. It will help end corruption in the country in the coming days.”
Khanal noted that recovery should be swift, as the demonstration did not cause significant damage to the remittance, agriculture and tourism sectors, which contribute greatly to the economy. However, he stressed that the media must be truthful and restrained in its reporting. “The media should exercise restraint. Some incidents, including the torching of Bhat Bhateni Supermarket and the Hilton Hotel, occurred as acts of political revenge. Such incidents must not be repeated. The media have a vital role in building a strong economy and a cohesive society.”
Similarly, economist Dr Samir Khatiwada said the Gen Z protest has given Nepal an opportunity for course correction. “The demonstration aimed to dismantle crony capitalism. The new generation has sent a message about building a society with good governance. It is also an opportunity to secure Nepal’s exit from the Financial Action Task Force (FATF) grey list,” he said.
Dr Khatiwada argued that tourism, a key economic sector, holds huge potential. “There is also concern that foreign tourists might be deterred by problems at Tribhuvan International Airport. The government must generate positive publicity on the international stage.”
He pointed to the need for an open, transparent and independent economic policy, warning that the Gen Z protest could significantly affect foreign direct investment. “Foreign investment accounted for just 0.3 % of gross domestic product, so there is little cause for concern,” he added.
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