Renewing its warning issued a month ago, Kathmandu based economic watchdog Institute for Development Studies(IfDS) today said, ” While stagnant income and increasing inflation mean hardships for the ordinary people, capital flight points out that the future economic prospects of the country are bleak.” Here i s the complete text of the report disclosed by the organization:
The Economic Level and Directionafter February 2, 2006……
Institute for Development Studies(IfDS)
Executive Summary
1. After the publication of our report on February 20, a new wave of interest was shown by all on the state of Nepalese economy. But no improvements have been noticed yet in the overall performances of the economy. Instead, a number of new policies and programs initiated by the government in the recent past have helped the economy to deteriorate further. Against this background, it is not necessary to change the following hypothesis discussed in our first report:
(a) “In the lack of proper measures to improve the situation, the economy may fall together abruptly;”
(b) “If the present trend continues, the government may be financially bankrupt by the end of June”;
(c) “Once the economic problem is exploded, we will not have long time in the name of finding alternative programs. We will not be surprised if total anarchy prevails in the country….The national identity itself will be at stake”. Continue reading →
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