Nepali Political Parties Prioritize Economy in Manifestos Amid Skepticism Over Implementation

Kathmandu. The country is heading towards the general election for the House of Representatives. Candidates from competing political parties are currently busy with door-to-door canvassing and election rallies among voters.

Political parties have published their election manifestos alongside their door-to-door campaigns. Major political parties, as well as smaller ones, have released manifestos under the name of various promises and pledges.

Almost all political parties have brought out manifestos incorporating issues like the country's economy, health, education, and employment for the House of Representatives election scheduled for the upcoming Falgun 21. The nation has long been grappling with political instability, economic recession, and youth migration. However, in past elections, political parties have had a tendency to publish manifestos during elections but fail to implement them.

Ambitious and popular slogans are featured in manifestos during election time, but once parties reach power through the election, the manifestos are not implemented. While some issues might be addressed, others remain confined to paper. However, the current situation appears different from the past.

Since voters are now scrutinizing manifestos and plans, a situation seems to be emerging where parties will be compelled to implement them after being elected. However, the manifestos of both old and new political parties competing in the upcoming election appear to prioritize populism over implementation.

Overall, it seems that this time, all political parties have risen above traditional political slogans in their manifestos. Along with political stability, all political parties have centered their manifestos around the economy and prosperity.

Nepali Congress, CPN-UML, CPN (Maoist Centre), Rastriya Swatantra Party (RSP), Ujyalo Nepal Party, Pragatisheel Loktantrik Party, and Janata Samajbadi Party have prioritized the economy, development infrastructure, and employment.

Prosperity appears to be the common destination in the commitments made in the manifestos of political parties. However, the path (modality) to reach there seems to differ. For the upcoming election, the Nepali Congress has released a 'Pledge Paper' featuring 10 main visions across 200 pages.

The Congress has announced that the government will be run not from closed rooms in Singha Durbar, but under public scrutiny and questioning. The manifesto mentions initiating a new democratic practice where the government will be accountable to the public every month, not just after five years.

Meanwhile, CPN-UML has put forward a plan with 25 pillars. UML has also announced ambitious plans in its manifesto. The goal is to increase the size of Nepal's economy to 100 Kharba (10 trillion) within five years. Currently, the size of Nepal's economy is around 53 Kharba Rupees.

CPN (Maoist Centre) has unveiled a manifesto with a framework for transformation, including the basis for scientific socialism, and RSP with 100 bases for policy departure. Ujyalo Nepal Party has also released its manifesto prioritizing the economy, infrastructure, and good governance.

The challenge of implementing the commitments made in the manifestos of the four major parties, particularly regarding economic policy, the role of the private sector, and social security, is evident. The manifestos incorporate a confluence of liberalism, socialism, and digital economy in the economic vision of political parties. There is competition in increasing the size of the economy and improving the living standards of citizens. However, their philosophical foundation determines the nature of their economic policies.

There are clear ideological differences and differences in priorities in the economic policies of political parties. Congress considers liberalism as the main basis of the economy, UML and CPN (Maoist Centre) socialism, and RSP good governance and technology. Economists have analyzed the economic agendas included in the manifestos published by major political parties for the upcoming election as ambitious but merely baseless dreams.

Economists state that apart from attracting votes in the upcoming election, there are no implementable plans in the manifestos. Although parties claim to increase the size of the economy to 100 Kharba and double the per capita income in five years, their conclusion is that there is no clear framework for implementation.

Economist Dr. Dilliraj Khanal commented that the manifestos brought by political parties for the upcoming election are documents that will 'die' as soon as the election is over and the government is formed. He stated that the plans written in the manifestos have no coordination with actual behavior, following the traditional pattern.

'In mature democracies around the world, manifestos are considered 'tested' documents, based on which voters evaluate. But in Nepal, there is a tendency to be ambitious but not implement,' said Economist Khanal, 'Even the government with a two-thirds majority in the past showed the opposite behavior instead of reducing tax rates as per the manifesto.'

Economist Khanal stated that the claims by parties to make the economy 100 Kharba and achieve an economic growth rate of 7 to 9 percent in five years are baseless. 'State mechanisms are weak. Performance capacity has deteriorated. Parties are failing on the issues of good governance and corruption control. In such a situation, without fundamental reforms, the dreams shown are merely illusions scattered to attract votes,' he said. Similarly, former Head of the Economics Department at Tribhuvan University, Resham Thapa, commented that the ideological differences among parties have ended, and everyone is swept away in a 'flood of populism'. He stated that while parties show the destination, they fail to show the path (means and resources) to reach there.

'It is stated that economic growth will be 7 to 9 percent, but no basis is shown. In the manifesto, parties only said 'I will go from Kathmandu to Pokhara,' but whether by bus, plane, or walking? It was not made clear,' said former Head Thapa, 'The manifesto contains contradictory statements like reducing taxes and increasing the social security basket without ensuring resources.'

He stated that parties are afraid to interpret the socialist-oriented economy directed by the constitution, and all parties appear the same. 'Currently, the distinction between Left and Right is lost. Everyone is only putting forward popular agendas. Whether it is the issue of universal coverage of health insurance raised by Gagan Thapa or education and health issues of other parties, there is no clear model of the role of the private sector and the responsibility of the government,' said Thapa. According to him, the current populism only serves to divert attention to their own interests, which does not contribute to structural reform of the economy.

Former Executive Director of Nepal Rastra Bank, Nar Bahadur Thapa, stated that parties have not incorporated economic issues in their manifestos according to the changing context. He noted that they have not prioritized a new economy and second-generation reforms in line with the changing context.

'Past manifestos were not implemented, that is one aspect. But the context has changed now,' said Thapa, 'The future economy must be based on the digital economy, green economy, and demographic dividend. Second-generation reforms are essential for the development of the private sector.'

He stated that the manifestos of the parties must be evaluated based on three pillars. He stated that it is necessary to move forward with good governance and transparency, a new economy (digital and green economy), and second-generation reforms for private sector development.

'Political parties should have brought action plans addressing the new generation and technology, not the old ways. Although the implementation aspect is weak, the agendas should have been focused on the modern economy, but that is not what is seen.'

Thus, economists conclude that parties have included distribution-oriented and ambitious programs in their manifestos to attract votes. However, due to weak state mechanisms, lack of resources, and a clear action plan, there is a high risk that these manifestos will not be implemented, just like in the past.

Nepali Congress: Liberal, Production-Oriented, and Equitable Economy

The Congress has announced that it will make the country's economy liberal, production-oriented, and equitable. It has pledged to build a liberal and production-oriented economy by making youth partners in entrepreneurship, the private sector the engine of prosperity, and bringing the poorest citizens at the bottom into the mainstream of development to make them owners of assets. It has declared the next five years as the 'Half Decade of Economic Revival'. Through second-generation economic reforms, Congress has resolved to bring Nepal's economy to 115 Kharba Rupees and per capita income to 2500 US dollars.

Congress aims to mobilize an investment of a total of 137.5 Kharba Rupees, maintaining an 80 percent share for the private sector, and limiting the role of the state only to that of a facilitator and impartial regulator. Congress has announced goals to control inflation within five percent, maintain the marginal capital-output ratio at 4.5:1, and make the economy pro-private, pro-growth, and pro-social justice. In this way, Congress aims to make the economy open, competitive, and technology-friendly, attracting international investment.

It aims to establish the private sector as the main engine of prosperity and create a policy stability, healthy competition, and 'pro-private' environment. The manifesto states that the government will only play the role of an efficient regulator for market competition, impartiality, and cleanliness.

However, economist Thapa says that the Nepali Congress has also failed to present economic agendas as expected. He stated that the economic policies adopted by Congress will become a burden for them in the future.

CPN-UML: Continuation of 'Prosperous Nepal, Happy Nepali'

UML has interpreted its old popular slogan 'Prosperous Nepal, Happy Nepali' as the national aspiration. UML's manifesto is more focused on statistics and targets. It has set an ambitious target to increase the size of the economy to 100 Kharba in the next 5 years and 200 Kharba in 10 years.

UML claims to increase the per capita income to 3 thousand dollars in 5 years. UML's economic policy prioritizes a strong role for the state and large infrastructure construction (connectivity). Its strategy, included in the manifesto, is to increase domestic production and replace imports in line with the 'Make in Nepal' concept.

Similarly, UML has brought popular programs such as 10 GB free internet for youth, interest-free loans up to 2 million rupees, and maternity allowance of 20 thousand rupees. The question remains unanswered about who will bear the cost of providing free data to millions of youth aged 18 to 28 and the burden of interest-free loans provided by banks.

Experts say that these programs of loan waiver and allowance increase risk promoting consumption over productive investment and adding long-term liability to the state treasury. UML's announcement to increase the minimum wage for workers to 25 thousand rupees per month sounds attractive to workers. It does not seem possible to increase the current wage of 17 thousand 3 hundred by 44 percent at once.

While the use of AI to control corruption sounds very modern and scientific, Nepal's administrative machinery is not yet fully digitized. Experts say that UML, like in the past, has prioritized popular slogans.

Rastriya Swatantra Party (RSP): Digital and Corruption-Free Economy

RSP has presented '100 Bases for Policy Departure' through its pledge paper to appear different from traditional political parties. The core essence of RSP's economic philosophy appears to be 'Good governance is the basis of prosperity'. It has put forward a plan to reduce the cost of the economy through corruption control, cutting wasteful expenditure, and digital governance (e-governance).

RSP has placed special emphasis on the digital economy and green economy. It aims to achieve Sustainable Development Goals by 2030 and upgrade to a middle-income country. RSP's main goal is to make Nepal a 'middle-income country'. It is mentioned that the foundation for achieving a stable average annual economic growth rate of 7 percent within the next five years will be laid.

Based on this, the goal is set to exceed the per capita income of Nepalis to 3,000 US dollars within five to seven years and bring the size of Nepal's economy (Gross Domestic Product - GDP) close to 100 billion dollars.

RSP plans to develop information technology as the second pillar of the economy after remittances. A historic target has been set to increase software and IT service exports from the current 1.5 billion dollars to 30 billion dollars in the next 10 years.

However, economists have stated that RSP is also indulging in popular slogans to attract voter support. Economists say that while the new parties have prioritized some new aspects like good governance and corruption control, they have set targets for economic issues similar to the old parties.

CPN (Maoist Centre): Self-Reliant and Independent Economy

CPN (Maoist Centre) has included issues like achieving an economic growth rate of more than 10 percent in five years and reducing the poverty rate from 20.15 percent to 5 percent. However, it has not presented the necessary basis for it.

It has announced that fallow land, rivers, streams, forests, minerals, and biological resources under public and private ownership will be utilized productively to provide employment to the youth force within the country. However, CPN (Maoist Centre) has not promised what kind of legal reforms will be made for this.

CPN (Maoist Centre) has mentioned that since a large part of the financial sector in Nepal is consumed by a few conglomerates, the money lying unused in banks will be utilized as medium and small loans to bring it within everyone's reach. It has announced a system to set targets for medium and small loans to eliminate the situation where only a few conglomerates utilize deposits collected from the general public.

It has also put forward election slogans such as constructing 5 lakh new housing units within 5 years and making one hundred rural settlements smart villages. CPN (Maoist Centre) has announced the formation of a Lokpal (Ombudsman) to investigate corruption by merging various research bodies. CPN (Maoist Centre) has emphasized the construction of national capital by ending comprador capitalism.

UNEPA: GDP to reach 111 Billion US Dollars in 10 Years

Ujyalo Nepal Party (UNEPA), led by Kulman Ghising, has committed to reducing the number of members of the House of Representatives and Provincial Assemblies. The commitment paper states that a policy of attracting foreign investment will be adopted, with a target to reach a Gross Domestic Product (GDP) of 70 billion US dollars by 2030. Furthermore, the goal is to increase the size of the GDP to 111 billion US dollars by 2035 and transform Nepal into an upper-middle-income country by 2035.

The target is set to expand exports to 10 billion dollars by 2030 and up to 20 billion dollars by 2035, and create approximately 10 lakh additional jobs annually. UNEPA is committed to achieving an annual economic growth rate of 9 percent by 2030. It has promised to increase the economic growth rate to 10 percent by 2035 and bring the per capita income to about 4 thousand dollars.

Private Sector: Cooperation or Control?

The private sector contributes more than 81 percent to Nepal's economy. Some similarities and some fundamental differences are seen in the approach of the parties towards the private sector. Congress considers the private sector as the engine of economic growth. Declaring a goal to make Nepal 'one that encourages asset and job creation,' Congress envisions a state that supports the private sector. It has promised to boost the morale of the private sector by improving the investment-friendly environment, policy stability, and tax rates. Congress has declared that making a profit is not a crime but a matter of respect.

Similarly, UML considers the private sector as the charioteer of prosperity. It has committed to boosting the morale of the private sector and creating an investment-friendly environment. UML has mentioned in its manifesto that it will adopt policies to remove procedural hassles in establishing industries and encourage startups. However, UML seems to motivate the private sector to work within the framework of the state's larger plan.

RSP's Facilitation for the Private Sector

RSP has emphasized Ease of Doing Business for the private sector. It advocates for clean competition by ending syndicates, cartels, and middlemen systems. RSP has promised to abolish cumbersome laws that trouble the private sector and provide services through a one-stop service.

CPN (Maoist Centre)'s Conditional Protection: CPN (Maoist Centre) has adopted a policy of protecting the national capitalist class while controlling the comprador capitalist class. It has put forward a strict policy of encouraging the private sector in production-oriented industries but ending or regulating privatization in basic services like education and health.

Social Security: From Womb to Grave

Social security allowance has become a major tool for attracting votes in Nepali politics. Political parties announce new plans for popularity in every election. Like in the past, political parties have included this in their manifestos this time as well. UML, which takes credit for social security allowance, considers itself the progenitor of social security and has announced to broaden its scope.

It has announced the continuation of the old-age allowance and guaranteed security from pregnancy to old age. The priority of UML is the effective implementation of maternity nutrition allowance, child protection grant, and contribution-based social security fund.

Congress will center the integrated social security concept of 'from womb to grave'. It has expressed commitment to bring all Nepali citizens under the umbrella of minimum social security. Programs to be spent from the state treasury will be made target-class-focused, transparent, and accountable. Social security expenditure will be viewed not as a burden but as sustainable investment in human capital.

The government will play the role of a catalyst and facilitator to make integrated social security effective. It has announced free health insurance for all citizens above 65 years, senior citizen allowance, operation of senior citizen health centers in the community, and free health services at home for those above 73 years.

RSP has stated that it will implement an integrated social security system to remove duplication in social security programs. It plans to provide all types of allowances and facilities through a single-window system using the National ID card. RSP has also promised a 'Ration Card' system for citizens below the poverty line.

Similarly, CPN (Maoist Centre) has announced to keep education and health entirely under the responsibility of the state. It has presented a socialist model guaranteeing basic needs by the state, bringing special packages for the poor, destitute, and labor class.

Insurance for All, All Treatment through Insurance

All parties agree on broadening the scope of social security and reducing citizens' expenditure on health treatment. The state must protect the poor, destitute, and senior citizens. They have included in their manifestos that no one should die without receiving treatment.

Political parties have mentioned that health insurance will be made a national pride program, and in the next five years, all Nepalis will be insured, and all treatments will be done through insurance. Nepali Congress has stated that insurance should be mandatory, not voluntary. It has committed to enrolling all Nepali citizens in mandatory insurance as per the Health Insurance Act 2074, considering it a citizen's right and the government's duty.

It is mentioned that arrangements should be made where those who earn pay the insurance premium, and the state bears the contribution for those who cannot. It is mentioned that arrangements will be implemented where the government pays the contribution for the extremely poor and labor class who cannot pay the premium, based on the income of formal sector employees and others.

It is stated that basic health will be free, and after being enrolled in health insurance, all types of treatment services can be availed from any listed hospital. All scattered health social security plans and concessions will be integrated into health insurance. Congress has mentioned a plan to increase the health insurance fund by bringing the amount spent on treatment from various agencies and funds into the health insurance fund and implementing a 'single-window system', and increasing the 'health tax' collected from taxing chocolate, sugary drinks, and taxes collected from alcohol and tobacco products, with that amount mandatorily deposited into the insurance fund.

It has put forward a plan to simplify the insurance process and make management and regulation effective. Congress has announced the development of the Health Insurance Board into the country's entire social health security mechanism by scientifically transforming its institutional capacity and working procedures.

Congress is committed to making payments quick and transparent through an automated claims system and fraud control. It will implement 'One Citizen, One Digital Health Profile' to maintain uniformity in service quality and fees across the country.

Challenge of Implementation: How to Secure Resources?

While parties are announcing plans worth trillions, the manifestos appear somewhat silent and vague on how the necessary resources for them will be managed. In a situation where Nepal's current expenditure is barely covered by revenue, parties are talking about increasing the size of the development budget. When UML talks about increasing the size of the economy to 100 Kharba, the basis for it is unclear. Congress emphasizes private investment and foreign aid, while RSP argues that billions in revenue can be saved through leakage control.

There is a tendency to forget what was written in the manifestos once parties come to power. The shadow of the manifesto is rarely seen in the 'Policy and Program' and 'Budget'. Even when Congress and UML have been in power multiple times, their past promises remain unfulfilled. For the new parties, RSP and CPN (Maoist Centre), their test is yet to come. However, their plans also appear ambitious and populist in many instances.