Technology, Inclusion, and Governance in Nepal’s Economy

Technology is often framed as a neutral force but in reality it is an amplifier. In markets like ours - young, rapidly digitising and institutionally fragile - technology can either accelerate equality and enterprise or entrench corruption and exclusion. The outcome depends less on the tools themselves and more on governance, incentives and leadership.

At its best, technology is an equaliser. Mobile penetration has outpaced physical infrastructure, enabling digital leapfrogging in banking, education and commerce. Digital wallets and mobile banking have expanded financial access beyond cities, drawing informal workers, migrant families and small traders into the formal economy. For entrepreneurs, cloud services, social media and e-commerce platforms have lowered entry barriers, allowing smaller firms to compete without the capital intensity that once protected incumbents. This is how technology strengthens business ecosystems, by broadening participation.

Technology also improves efficiency and transparency. Digitised supply chains, online procurement and data-driven decision-making reduce friction, cut costs and limit discretionary power, a longstanding weakness in Nepal’s economy. For a country reliant on remittances and small enterprises, these are not incremental gains but structural advantages.

Yet the same systems can be manipulated. Weak regulation and low digital literacy create space for abuse. Digital platforms can obscure ownership, facilitate tax evasion and enable financial misconduct as easily as they can promote transparency. Corruption can scale with technology, allowing bad actors to move faster and hide deeper through opaque systems and unaccountable platforms.

Concentration poses another risk. When access to data and digital infrastructure is controlled by a narrow group, corporate or political, inequality widens. Automation without reskilling displaces workers. Innovation without competition produces monopolies, not ecosystems.

The answer is not to slow digitisation, but to professionalise it. Nepal must move beyond adoption toward accountability, clear data governance, enforce able competition rules, provide institutional oversight and broaden digital literacy.

Technology will shape our economic trajectory for decades. Used well, it can drive inclusion and growth. Used carelessly, it will digitise inequality and modernise corruption. The outcome depends on the intention with which it is governed.