Word matters most. Future of Nepal's economic policy depend on its constitution. Why lawmakers do not want the word "liberalization" in constitution? It discouraged the investors. "The Federation of Nepalese Chamber of Commerce and Industry
(FNCCI) is angry because the Act does not mention liberalization in the preamble." This is because of fact that various lawmakers have various interpretation of regulation. A group of lawmakers think regulation means active participation of the government,
other group interprets regulation is only for increasing the efficiency of the market through curbing its negative externalities. Policy confusion is harmful to investment and economy as a whole. It is good if regulation is defined to the extent to promote competition and cure monopolies and inefficiencies of the market. However, if it goes beyond the extent then it is harmful to Nepal. Therefore, it is necessary to understand history and governments role in economy.
Government is not a creator of wealth, but, only inefficient distributor of wealth. It receives income from one who work and provides it to those who are lazy and inefficient like lawmakers. Even though government tries to create wealth, it is remains inefficient in it. We can take examples of Nepal Electricity Authority, Nepal Oil Co., Nepal Airlines, Nepal Food Co. etc. We compare these with private organizations, which are more efficient in creating employment, consumption and services to Nepali people. Government has provided only 3 percent employment and remaining 97 percent are either unemployed, self employed, or work at private organizations. If private companies are able to increase employment and consumption, why we need government in commercial activities.
Many anti-liberal economist blame liberalization for the current economic crisis. However, they have forget sixty years' benefit of liberalization. Otherwise there might be no innovations and benefits like internet, air services, communications, T.V., computers, news agencies, ATMs and ABBS of banks, etc. etc.
If we observe from production, consumption and welfare side, liberalization has done a lot. In spite of these benefits, why people expect very much from government? Why our lawmakers are against liberalization? Development is an outcome of freedom in thinking, freedom to work, freedom to earn, freedom to express, freedom to innovate. All these are in liberalization.
In Nepal, knowingly, unknowingly or either due to circumstances of BoP crisis Dr. Lohani has done a good job during mid 1980s i.e., liberalization.
Therefore, dear government you are not capable in your work i.e., maintaining law and order. You specialized yourself in your field. Don´t come in the business and economy. People want democracy and freedom. We work, we consume, we save, we pay you tax for maintaining national security, law and order. But, do not want to pay for your inefficiencies.
