Upcoming Interim Plan Achieving Human Prosperity

Lok Nath Bhusal

Amid the ongoing political transition, the National Planning Commission (NPC), the apex planning authority, is trying its best to craft an Interim Plan (IP) for the next three years rather than go ahead with the 11th Five-Year Plan. The Interim Plan is expected to bridge the gap between the current 10th Plan and upcoming 11th Plan. Indeed, it is assumed that the election to the constituent assembly, parliamentary polls and the formation of a new government will take place in the next three years so that the new government is better placed to bring about the 11th Plan. The unique feature of this plan has been its participatory process of formulation as the major political parties are represented in the government and Planning Commission.

ExpectationsNo doubt, given the incompatible ideologies among the different political parties, it will not be easy for the NPC to formulate a quality Interim Plan by synchronising the differences. However, the NPC, with its inclusive formation, expertise and 50 years of planning experience, has been trying hard to bring about a consensus Interim Plan. Essentially, the Interim Plan would be an instrument towards making a modern, prosperous and just Nepal at a time when the country is undergoing a profound political and economic transition.Looking back, Nepal has implemented nine successive development plans, and the current 10th Plan is in its final year. Despite some achievements in the areas of infrastructure and human development, and poverty reduction, this has not been commensurate with the expectations. The Living Standards Survey 2003/04 concludes that absolute poverty has declined by 11 percentage points from 42 per cent to 31 per cent in the last 10 years due to increased agricultural and non-agricultural wages, urbanisation, increase in the active population, and the massive inflow of remittances. However, income inequality, as measured by the Gini Coefficient, has increased from 0.34 to 0.41. In addition, according to the Human Development Report 2006, Nepal has dropped to 138th position from its earlier 136th. However, the Demographic and Health Survey 2006 has revealed that the birth rate, infant and child mortality rate have improved significantly.

One of the most crucial issues has been the inequitable distribution of the fruits of development in the past. The socio-economic status of the dalits, Janajatis, women and people from the remote areas have not improved, and reforms have not been sufficient to address the aspirations of those marginalised groups. Despite the reduction in the overall level of poverty, there are mounting disparities across various ethnic groups. A study ?Unequal Citizens: Gender, Caste and Ethnic Exclusion in Nepal (GESA)?, carried out by the World Bank and DFID, has demonstrated that 47 per cent of the dalits, 44 per cent of various ethnic communities in the hilly region, and 41 per cent of Muslim households live below the poverty line. Obviously, these figures significantly surpass the national average of 31 per cent, 14 per cent for the Newars and 19 per cent for the Bahuns. As a result, majority of the people lacked the feeling that there exists a state favouring them. The major responsibility of the state is to institutionalise the achievements of the historic Jana Andolan II. The upcoming Interim Plan should be based on the people?s spirit expressed during the Jana Andolan, the declaration of the House of Representatives, various agreements signed on the political fronts, and the directive principles and the policies in the proposed constitution. However, according to a study jointly conducted by the National Planning Commission and UNDP, all MDGs are likely to be achieved by 2015 except the ones concerning Universal Primary Education and HIV/AIDS.

The recent political development has provided numerous opportunities for a brighter future. The settlement of the decade-long conflict has brought the political actors closer, opening the doors towards creating an inclusive political landscape. Moreover, a peaceful political environment, commitment to human rights, good governance and the establishment of a loktantric system of government have been very conducive to attracting foreign assistance both in the form of grants and direct investment. The friendly relationships with the giant economies of India and China, with their historic economic growth rates, can be good marketplaces for Nepalese exports, and, thus, ways to earn foreign currency. Indeed, this has created ample opportunities for Nepal?s rapid economic development and to creating an affluent society. Also, the existing cultural, linguistic and regional diversity, and hardworking people would be Nepal?s true human capital towards making a New Nepal.

Furthermore, the mounting tourism potential, if fully exploited, would be instrumental in earning foreign exchange and creating lots of employment opportunities. Likewise, the physical and social infrastructure, efforts and experiences towards good governance and decentralised system of governance made in the last 50 years have provided a solid basis for rapid development. Now the time has come to proceed with these achievements along with innovative ideas and new dynamics. The upcoming Interim Plan should come up with a long-term vision for creating a prosperous, modern and just Nepal. Indeed, prosperity would offset absolute poverty and ensure social empowerment and easy access to quality services. Similarly, a modern Nepal would bring improvements on the thinking of the people about the social, economic and financial status, ensuring the adoption of appropriate technologies and lifestyles. A just Nepal would bridge the gap between the affluent and poor people, and end the legal, social, economic, ethnic and geographical discrimination. Indeed, this would ensure inclusive development, social justice and good governance.

Human prosperityIn order to realise this long-term vision, the major goal of the Interim Plan should be to reducing poverty and attaining economic and human prosperity through good governance, social justice and inclusive development approaches. Essentially, the major goal of the Interim Plan should be to reduce absolute poverty through the creation of employment opportunities, inclusive growth, reconstruction, rehabilitation and reintegration. The major strategies should touch upon employment-oriented, broad-based and inclusive economic growth; good governance in development works and service delivery; emphasis on rural and urban infrastructure development; and adoption of a socially inclusive development approach. The upcoming meeting of the National Development Council will try to address these issues, and formally recommend the government of the approval of the Interim Plan.

Source: The Rising Nepal, June 25, 2007