Private ector Development in Nepal在尼泊尔的私营部门发展.docVIP

Policy Paper on Private Sector Development Nepal Development Forum-2002 His Majestys Government of Nepal Kathmandu February, 2002  Private Sector Development in Nepal 1. Overview Role of private sector for sustained economic development is always at the forefront. The present global economic experiences reaffirmed the notion that the invisible hand of the market would always contribute to accelerate growth process in a sustained manner. Market oriented development strategies encourage increasing private sector involvements in the development process, limiting the government’s role as a facilitator developer of the private sector through the investments on building physical infrastructure and human resources so as to create an environment conducive for private sector development. Nepal, though embarked to the periodic development planning exercise as early as 1956, failed to realize the importance of private sector and market oriented policy in the process of overall development of the country till late eighties and this resulted to several economic distortions. However, a distinct departure took place in the overall development policy strategies in the country, particularly after the restoration of multiparty polity in 1990 and consequently under the new policy paradigm, a liberal policy anticipating greater role of private initiatives in the economy has been in place replacing the controlled economic policies practiced under the Mixed Economic Approach. Since then, the private sector development policy has been reoriented to identifying removing the barriers for private investments, and creating private sector friendly economic environment so that the private sector would play pivotal role in the economy. Thus shift in the role of the government from active participant to facilitator not only brought positive psychological change in the private sectors, but also added economic dynamism through the active participation of private sectors in all sectors, rangin