Views Expressed

The views expressed in this blog are mine,it does not reflect the view of the institution where I work.

Thursday, July 21, 2011

Is Government Planning to Make Poor to Less Poor and Richer to Poor?

Nepal adopted liberal economic policies since mid eighties. A policy has worked a lot in Nepal. Despite this fact some anti-liberal politicians and economists blame that liberal policy under-developed a country.


However, after the liberal policy, it is observed that poor are becoming rich and rich are becoming more rich. Living standard of people has changed dramatically. Many industries have grown up rapidly and it has increased the access to internet, mobile phones, even in the education, televisions channels, newspapers, FM radios, shopping malls, residential appartments, cheap clothes, durables like T.V., refrigerators, kitchen wares and so on. If one do not belives then s/he can check the statistics of all these thing of mid-eighties and present. All these things are available to people because we (knowingly or unknowingly) liberalized the economy. People have access to all these goods and services because of not the government but market has provided to people.




Actually, the reason for underdevelopmet of Nepal is that private sector could not work well due to the long political turmoil. Still, there is dismal chances for free market to work because of workers-entreprenuers relation is not favourable for investment and present government has been failed to develop the confidence of domistic investors.




In free market system, we have freedom to earn. Some politicians are jelous to the business persons' and entrepreneurs earning. They blame that few people have controlled all the business in Nepal. This might be one of many facts of undervelopment. As politicians are not a entreprenuers, they are myophic to observe that there are thousands of other businesses, which are yet to be explored.




Some people who like strong government control in the economy even do not like the government services of government owned institutions like Nepal Oil Corporation (NOC), Nepal Airlines Corporation (NAC) etc. I had seen many of them staying in the long line for petrols. The petroleum market is controled by government. As we find they are choosing private airlines services like Buddha/Yeti instead NAC.


Even in free market government has tax and expenditure instruments to save poor. Here, In Nepal most of us think only about distribution. But, distribution without growth is meaning less. First, let us grow and then distribute a part of it. " if any people want to invest and earn money by employing people voluntarily then it is not wise to intreven in their business. Let them to serve people through their business and allow them for business under law and with strong quality control and consumer rights. This can rise living standard of people and develop Nepal. However, the current government has been unable to use the thrust of private sectors and making people of Nepal "Poor to less poor and Richer to Poor". Let us think on it.
[ In nutshell, {(100+5)+(1000-500)}, the government is adding 5 decreasing 500. How much it contributs to growth?]