Political instablity and power outage are the two major contributors to Nepal’s poor investment climate, a World Bank report says. It forget to mention the number one reason: the Maoists.
Nepal 2009 Enterprise Survey points out lack of access to finance and labour regulations as other major obstacles. Obstacles, however, differ from industry to industry. Transport and electricity are especially problematic for the tourism industry, whereas labour regulation is the key impediment for the manufacturing sector. The survey conducted last year has covered 13 cities across the country. Nepal’s decline in export has rightly been potrayed in the survey. Only four percent of the firms are exporters against the South Asian average of 20 percent. Nepal, however, has fared better in some areas: Tax rates, tax administration, business licensing and permits and court functioning. (detail)
Maoists threat to GMR
Nepalis have been bearing the brunt of treacherous power cuts for some years and it is only projects such as these that can provide relief to them a few years down the line. The Maoists have no right to deny the people the future benefits that such projects will bring to them. Continue reading Obstacles for Business in Nepal: Instability and Maoists