The second edition of the IIDS Policy Conclave, held on Friday, December 27 in Kathmandu, focused on the theme “Nepal Vision 2100,” bringing together policymakers, scholars, and stakeholders to address Nepal’s structural challenges and chart a course for long-term economic growth and transformation.
Organized by the Institute for Integrated Development Studies (IIDS), a Kathmandu-based think tank, the event featured panel discussions and presentations aimed at developing a strategic roadmap for Nepal’s sustainable development over the next two decades.
Building on the inaugural 2023 conclave, which centered on “Structural Reform 2.0,” this year’s discussions critically analyzed the Government of Nepal’s 15th Development Plan. The plan proposes significant economic shifts, including reducing agriculture's share of GDP from 27 percent to 9 percent, increasing industry’s share from 15.2 percent to 30 percent, and boosting the service sector from 57.8 percent to 61 percent by 2,100 B.S.
However, the conclave underscored that Nepal’s unique challenges, including geopolitical constraints and structural inefficiencies, require a tailored approach to achieve sustainable growth.
Key challenges identified during the discussion included surging private credit, youth exodus, trade Imbalance, reliance on remittances and misallocation of resources.
Geographic limitations and weak spillover benefits from neighboring economic powerhouses India and China further compound these challenges, participants noted.
The discussion sought a more realistic approach for sustainable growth. Key recommendations included: Agriculture transformation by leveraging natural resources and focusing on high-value niche industries; service sector growth by capitalizing on sectors such as IT, tourism, education, healthcare, and security services to drive exports and create jobs; Knowledge Economy – investing in human capital, digital literacy, and STEEM (Science, Technology, Engineering, English, and Mathematics) education to build a globally competitive workforce; incremental growth targets by establishing a baseline growth rate of 5.5 percent and gradually increasing it to 7.5 percent through structural reforms and strategic investments.
The conclave emphasized the need to transition to a knowledge-based economy characterized by high-value and globally scalable industries. While IT currently contributes just 1.4 percent to GDP, it has substantial potential for growth. Similarly, the hospitality, healthcare, and security services sectors present opportunities for high-value exports.
Lawmaker and IIDS Chair Swarnim Waglé called for aligning Nepal’s strategies with global economic trends. He emphasized the importance of high-value agriculture, trade liberalization, and diversified tourism, including medical and dental tourism. Waglé also advocated for institutional reforms, FDI liberalization, and public funding for political parties to ensure equitable growth.
Economist Chandan Sapkota highlighted inefficiencies in project implementation, inadequate resource allocation, and political interference as key bottlenecks. He urged the adoption of robust systems for prioritizing and monitoring development projects to enhance accountability and efficiency.