22 February 2024
FOR IMMEDIATE RELEASE
NEPAL COMPETITIVENESS INDEX 2024 REVEALS ECONOMIC GROWTH POTENTIAL AND AREAS FOR IMPROVEMENT
Nepal – 22 Feb 2024 – The Nepal Institute for Policy Research (NIPoRe) and the Asia Competitiveness Institute (ACI) at the Lee Kuan Yew School of Public Policy, National University of Singapore, are delighted to announce the release of the Nepal Competitiveness Index 2024 Report. This collaborative endeavor between NIPoRe and ACI meticulously examines the socio-economic competitiveness of Nepal’s provincial units.
The comprehensive report evaluates Nepal’s provinces based on 64 indicators spanning four crucial domains: macroeconomic stability, government and institutional framework, financial landscape, business environment, workforce conditions, and quality of life along with infrastructure development. This edition represents the second iteration of the report, following its debut in 2022. Additionally, the report features an addendum focusing on the digital competitiveness of the seven provinces.
The release of the Nepal Competitiveness Index 2024 Report signifies a significant milestone in assessing and understanding the socio-economic landscape of Nepal’s provinces. The collaboration between the Nepal Institute for Policy Research (NIPoRe) and the Asia Competitiveness Institute (ACI) reflects a dedication to thorough analysis and informed decision-making.
As we delve deeper into the report’s findings, it becomes evident that Bagmati province emerges as a frontrunner, setting a high standard for competitiveness across all domains. This achievement is closely followed by Koshi province, showcasing a commendable performance as well.
Conversely, Sudurpaschim and Karnali Provinces face challenges in their rankings, highlighting areas that may require focused attention and strategic interventions to enhance their competitiveness. It is crucial to recognize the disparities among provinces and work towards bridging the gaps to ensure a more balanced and sustainable development trajectory for Nepal as a whole.
Moving forward, the Nepal Competitiveness Index serves as a valuable tool for policymakers, researchers, and stakeholders to identify areas of strength and areas needing improvement, ultimately contributing to the collective goal of fostering inclusive growth and prosperity across all provinces of Nepal.
Key Findings:
- Bagmati province secures the top position across all four domains, closely trailed by Koshi.
- Sudurpaschim and Karnali Provinces rank at the bottom.
- Koshi and Gandaki provinces demonstrate improved overall standings, while Lumbini registers a decline.
- Madhesh province exhibits noteworthy progress in government and institutional settings but faces setbacks in macroeconomic stability, and quality of life and infrastructure development.
- Lumbini either maintains or experiences a decline in rankings across all domains.
The report underscores the imperative of narrowing the gap between Bagmati province and other provinces to foster sustainable development.
Commenting during the event, Bam Bahadur Mishra, the deputy governor of the Nepal Rastra Bank, said: “Nepal Competitiveness Index 2024 is a valuable tool that will help us navigate the challenges and opportunities that lie ahead. I hope that this index will serve as a catalyst for positive change and that it will inspire us to work together towards a more prosperous and inclusive Nepal. Moreover, the Nepal Rastra Bank will be closely following the key findings of the index and will always be happy to support the work of the Nepal Institute for Policy Research (NIPoRe) and the Asia Competitiveness Institute (ACI).”
Similarly, speaking during the report release event, Rameshwore Khanal, former finance secretary of Nepal, said: “Macroeconomic stability plays a pivotal role in enhancing the economic competitiveness of both provinces and nations. Provinces must prioritize the integration of macroeconomic stability with efficient governance to yield tangible results. In this context, the Nepal Competitiveness Index 2024 could serve as a guiding framework, aiding provinces in pinpointing crucial areas and sectors that require targeted interventions to elevate their competitiveness on both a holistic and sector-specific level.”
H.E. Dr. Danielle Meuwly, the Ambassador of Switzerland to Nepal, speaking during the event stated that “Switzerland emphasizes fostering balanced and inclusive growth among sub-national governments. It is gratifying to note that the Nepal Competitiveness Index 2024 shares a similar focus. Switzerland has been actively engaged in Nepal for decades, collaborating with the Government of Nepal and other development partners to enhance the nation’s overall quality of life and infrastructure, with a particular emphasis on the development of trail bridges throughout the country.”
Moreover, Gajendra Budhathoki, the Editor-in-Chief of Taksar Economic Magazine, said: “Nepal’s economic vulnerability might surpass what official statistics portray, primarily because a substantial segment of the economy functions within the informal sector. Moreover, provinces striving to boost their competitiveness must exert considerable effort to sustain and enhance the competitiveness of their financial, business, and human resource sectors in the years ahead. The Nepal Competitiveness Index 2024 could serve as a valuable tool for stakeholders in these sectors, aiding them in realizing targeted policy objectives effectively.”
Likewise, Dr. Kalpana Khanal, a Senior Research Fellow at the Policy Research Institute of the Government of Nepal said: “As provinces step into the spotlight, they play a pivotal role in the transition towards tangibly implementing federalism. The recently unveiled Nepal Competitiveness Index 2024 stands as a valuable tool, set to support provincial administrations and key stakeholders from both the public and private sectors in revisiting previous approaches and crafting innovative, customized plans for the times ahead. This index marks a significant milestone in the journey towards driving competitiveness and fostering sustainable development across the country.”
In a video remark, Prof Paul Cheung, Director of the Asia Competitiveness Institute, added “While Nepal has effectively established seven provinces to enhance governance decentralization, a significant challenge lies in ensuring the effectiveness of economic and financial decentralization. The collaboration between the Nepal Institute for Policy Research (NIPoRe) and the Asia Competitiveness Institute through the Nepal Competitiveness Index offers valuable support for policymakers, administrators, private sector entities, and development partners. This collaboration facilitates the formulation and implementation of viable provincial plans and policies to enhance the future economic performance of all seven provinces in Nepal.”
Finally, commenting on the report and the overall findings, Jaya Jung Mahat, Director of NIPoRe, said: “The ongoing research collaboration between the Nepal Institute for Policy Research and the Asia Competitiveness Institute plays a vital role in enabling planners, administrators, the private sector, and development partners to quantitatively assess and monitor the performance of Nepal’s seven provinces across key policy indicators. The Nepal Competitiveness Index 2024 represents another milestone in this collaborative effort, providing valuable insights to inform stakeholders on the competitiveness performance of each province. Future iterations of the Nepal Competitiveness Index will likely incorporate additional indicators to enhance comprehensiveness. We welcome the opportunity to engage with interested partners within and beyond Nepal to further advance this significant policy initiative.”
The Nepal Competitiveness Index 2024 is available on the NIPoRe and Asia Competitiveness Institute websites.
For more information, please contact:
Jaya Jung Mahat
Director and the Lead Researcher
Nepal Institute for Policy Research (NIPoRe)
Email: info[at]nipore[dot]org
ABOUT THE PUBLISHERS
Nepal Institute for Policy Research (NIPoRe) is an independent and non-partisan research institute based in Kathmandu, Nepal. It works to generate evidence-based debates among citizens and critical stakeholders of development in the public and private sectors on contemporary policy issues from Nepal and Asia. The institution currently works on high policy priority areas through four research centers – the Center for New Economy and Inequality (CNEI), the Center for Strategic Affairs (CSA), the Center for Governance Studies (CGS), and the Center for Human Development (CHD). NIPoRe’s team members represent the diversity of academic disciplines, professional backgrounds, and geography. The institute adopts a multi-disciplinary approach in its analysis of policies and research, supported by researchers trained at universities and professional environments (from) across the globe.
Asia Competitiveness Institute (ACI) was established in August 2006 as a Research Center at the Lee Kuan Yew School of Public Policy (LKYSPP), National University of Singapore (NUS). It aims to build the intellectual leadership and network for understanding and developing competitiveness in the Asia region. ACI seeks to contribute to the enhancement of inclusive growth, living standards, and institutional governance through competitiveness research on sub-national economies in Asia. It identifies mitigating issues and challenges for potential public policy interventions through close collaboration with regional governments, business corporations, policy think tanks and academics. ACI’s three key research pillars include (I) Sub-national economies level competitiveness analysis; (II) The development of the digital economy and its implications in 16 Asia economies; and (III) Singapore’s long-term growth strategies and public policy analysis.