While the country is busy with the preparations of the Constituent Assembly Elections, which finally seems to be materializing after being postponed twice, here is something quite unrelated to it. Many a times I wonder if we have been too carried away by the political agendas of the country, maintaining a blind eye to any other issue. It’s a matter of debate if it is actually a economic revolution this country needs rather than a political upheaval every once in a while…Leaving the question for you to ponder on, here is Shristi Khadka’s take on whether Nepal made a right choice by adopting free trade or not.
Did Nepal made a wrong choice by embracing the policy of free trade as a strategy for trade integration and economic development?
by Shristi Khadka
Democracy has been regarded as the best practice by almost all countries of the world and democracy also incorporates economic democracy. Therefore restricting people to consume or produce any goods or services provided they are not harmful to an individual or society is against democratic norm. On the other globalisation makes it almost impossible to impose strict restrictions on the free flow of goods, services and human beings. The advancement of science and technology has even accelerated the pace of flow breaking the national boundaries. Hence, free trade is the demand of time but not an end in itself for economic development. It will surely provide a larger market for goods, services and works but only if they are competitive.
Although, Nepal formally adopted the concept of free trade after the restoration of democracy in 1990 the Structural Adjustment Policy (SAP) introduced by the World Bank in 1985 can be traced as the first step being taken by the country for introducing free trade. Then after there was no looking back and Nepal fully adopted the concept of free trade by entering into various bi-lateral (like Indo-Nepal Trade Treaty), regional (like SAFTA) and multilateral treaties (like WTO).


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