Worse still, he said such closure and defiance of law and issuance of threats by the youth wing of one of the prominent parties has diminished the embassy´s efforts to convince investors that Nepal is open for business.[break]
However, despite all challenges facing the country, DeLisi viewed there were enough reasons to be optimistic about Nepal´s economic future. “This is a country rich in human capital, natural beauty and water resources,” he said.
If the country seriously reformed its policies and legal framework, Delisi said Nepal can earn enough from IT outsourcing, new tourism products like adventure travel, eco-tourism, religious tourism and niche markets like “birding tours”, hydropower and commercial agriculture.
As a friend of Nepal, Delisi also expressed commitment to promote trade and investment.
Referring to a recent visit of high-level trade delegation from the American Chamber of Commerce, Delisi said the visit has built a strong interest of US investors in Nepal. “Not just the investors that came here, even several additional companies are starting to look seriously at Nepal,” he said.
Delisi also stated that Nepal and the US were working to hold the second Trade and Investment Framework Agreement (TIFA) Council meeting in Kathmandu soon.
Talking on reforms, Delisi admitted some of the needed policy reforms like cracking down corruption and nepotism, cutting off vested interests in state monopolies and raising fuel prices in line with international trend are not easy. “But these are necessary steps, albeit painful ones, to end the current market distortions and pave way for sustainable economic growth,” he added.
He also stressed equitable and inclusive growth. But he noted the government alone cannot redress these inequalities, and suggested to Nepal to recognize private sector and foreign investment as cornerstone of its economic plan.
“Policies that would seek to limit the role of the private sector are fundamentally misguided,” he said, adding that characterization of cooperatives as the third pillar of economy must not serve expansion of government control of the economy.
“Only an open, liberal economy can spawn economic growth. It would be ironic and self-destructive for Nepal to move in the other direction,” said he.
Delisi also expressed sadness over huge exodus of Nepali youths. He also viewed that remittances, which serve as lifeblood of Nepal´s economy, would eventually cost the country dearly.
“Like an addictive drug that feels good today but causes devastation in the long run, remittances provide a short term boost to the economy, but only forestall the need to make tough economic choices -- which are even harder to accommodate the longer the government waits,” he stated, and suggested to the all the stakeholders to intensify public debate and discussions on Nepal´s economic challenges.
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