- Govinda Thapa Kathmandu . Nepal is in an economic crisis at the moment followed by the Gen Z movement of September 8 and 9. There were deaths and destruction of government and private properties worth billions. This has challenged the current economic status and risked the future growth as well. Reviving the economy is a major challenge, and the need of the hour. For this, the role of the private sector is significant. Recently during the festival break, I got an opportunity to read the book “Xi Jinping: The Governance of China V.” The fifth edition of the book is a compilation of articles and speeches made by Chinese President Xi in recent years.
Among many chapters, the chapter on New Quality Productive Forces for High-Quality Development mainly grabbed my attention. It discussed financial issues, and focuses on how to foster a new development dynamic to seize future opportunities. In a particular chapter ‘Develop a High-Quality Private Sector,’ President Xi, also general secretary of the Communist Party of China (CPC) Central Committee, stresses on proper guidance for the healthy and high-quality development of the private sector. This is indeed necessary to build and enhance any country’s economic prosperity. “The CPC Central Committee always maintains that the non-public sector's status and functions in the country's economic and social development have not changed, the principle and policies to unswervingly encourage, support and guide the development of the sector have not changed, and the principle and policies to provide a sound environment and more opportunities to the sector have not changed, “ Xi shares in the chapter. The private enterprises and entrepreneurs are the backbone of the economy, so they need encouragement and support from the state side. As Xi hailed the private sector as an important force in the endeavor to realize the two centenary goals and the Chinese Dream of national rejuvenation, we can relate this with our own ambition as Nepal is scheduled to graduate from its status as a Least Developed Country (LDC) to a developing country in 2026. This transition, approved by the UN General Assembly in 2021, marks a significant milestone in the country's development. This shift marks a crucial phase in Nepal’s socio-economic development. On the days ahead, Nepal should be able to tap the opportunities and tackle the challenges resulting from this graduation. Nepal has also formulated a Strategy that aligns with the national vision of achieving Good Governance, Social Justice and Prosperity, comprising six strategic pillars: macroeconomic stability, trade and investment, economic transformation, productive capacity, climate change and disaster risk management, and social inclusion. To achieve all of these, the private sector plays a major role, thus it requires effective measures and efforts to put in place a cordial and clean relationship between government and business. As per reports, Nepal’s private sector contributes over 81% of the GDP and generates about 87% of the country's employment opportunities.
It drives economic growth through innovation, investment, and entrepreneurship in different sectors like finance, tourism, and health. In addition, it is also the largest source of exports. As Xi mentions, “Efforts should be made to optimize the environment for private enterprises' development, remove institutional barriers that impede their participation in market competition in a fair manner, protect their property rights and the rights and interests of entrepreneurs in accordance with the law, and ensure the equal treatment of private enterprises and state-owned enterprises.” This becomes more meaningful as the private sector has been facing challenges and lack confidence at the moment as many business houses lost their properties during the latest youth movement, while others fear risk in investment. There are also issues like corruption, monopolistic practices, weak regulation, and a lack of decisive action from the government. In the chapter, President Xi stresses more effective measures “to assist the development of micro, small and medium-sized firms as well as self-employed individuals, and support the platform enterprises in playing a bigger role in creating jobs, expanding consumption and international competition.” In these critical times, the investment of private capital should be energized rather than discouraged, and more private capital should be encouraged and attracted into major state projects and other key projects. As the article mentions, both state-owned and private enterprises must shoulder the social responsibility of promoting common prosperity. I find this statement full of energy and spirit to boost the economic sector. After all, it is a prime time for private enterprises and entrepreneurs to give full play to their capabilities. And in return, the government should make solid efforts to address the difficulties faced by private enterprises. As Xi highlights, the effective protection of the lawful rights and interests of private enterprises and entrepreneurs in accordance with the law is important. This is not just suitable in the context of China alone, but also in Nepal, and other countries to boost their respective economies. As the chapter inspires, private enterprises and entrepreneurs should embrace entrepreneurship and focus on strengthening, optimizing, and expanding their businesses. Amid hopelessness, we should be hopeful that the private sector will be a firm contributor in achieving the national goal of ‘Prosperous Nepal, Happy Nepali.’
Author Govind Thapa is a central committee member of CPN-UML
