Dr. Swarnim Wagle and the Path to Nepal's Economic Transformation

In most countries, the responsibility of the Finance Minister is entrusted to experts in political economy. Nepal's current Finance Minister is relatively mature, a subject expert, thoughtful, and experienced. There are notable parallels between the backgrounds of Dr. Manmohan Singh, former Finance Minister and Prime Minister of India, and Nepal's current Finance Minister, Dr. Swarnim Wagle.

Coincidentally, both are alumni of the London School of Economics, experts in global political economy and foreign relations, international researchers, and architects of a liberal economy who have led policy-making bodies like their respective National Planning Commissions. Furthermore, during both of their tenures as Finance Minister, supply chains were disrupted due to fuel supply crises caused by wars in the Middle East.

In 1991, India faced a major economic crisis. Known as the 'Balance of Payment Crisis,' it was primarily caused by a lack of foreign currency, rising debt, and weak economic management. However, this forced India to adopt new economic policies, which paved the way for future economic development.

Today, India stands as a powerful nation and the world's fourth-largest economy. Therefore, qualitative improvement in any country requires firm leadership and skilled technocrats.

Through the collaboration of two Indian leaders who also served as Prime Ministers—P.V. Narasimha Rao and Finance Minister Dr. Singh—India overcame the crisis and moved toward long-term economic development. At that time, India's GDP growth rate hovered around 7-8 percent for many years. Today, India has become a hub for information technology development.

Today, India stands as a powerful nation and the world's fourth-largest economy. Therefore, qualitative improvement in any country requires firm leadership and skilled technocrats. History has taught us this.

Following the Gen-Z movement, Dr. Swarnim Wagle has been entrusted with the responsibility of reforming the country's economy under the historic government led by Balendra Shah. Wagle, who holds the second rank in the current cabinet, is considered relatively mature, an economic expert, and knowledgeable in geopolitics.

Despite major political changes in the country in the past, good governance and development could not gain momentum. The system changed, but the condition of the common citizens did not. As a result, widespread dissatisfaction began to emerge. Amidst a country plagued by crony capitalism, the Rastriya Swatantra Party (RSP) was born as a new party under the leadership of Rabi Lamichhane.

Although Lamichhane received public support, state retaliation against his leadership attempted to confuse everyone by labeling his party as one without ideology. Not only that, after he was taken into custody on 2081 Kartik 2, a narrative was created that the party was finished. Navigating the party forward amidst the vengeful arrest of the party chairman was no small challenge. Vice-chairmen DP Aryal and Dr. Wagle successfully led the party forward.

At the Jaleshwor extended meeting, the party's manifesto was formulated under the leadership of Dr. Wagle, and its main objective stated: 'RSP is a pluralistic democratic party that believes in a liberal economy with social justice, committed to the equitable progress of all Nepalis.'

A 100-point action plan based on the election manifesto has been recently released, and Dr. Wagle plays a significant role in it.

It further states, 'To ensure a welfare state, the party is committed to sustainable mobilization of public, private, and community resources, creating a clean and robust regulatory structure for the promotion of entrepreneurship, investment-friendly and competitive social market economy, expansion of national income and employment, enhancement of labor-dedicated social capital, and maintaining climate-environmental balance.'

This aligns with the political-economic ideology of Scandinavian countries in Europe. The party's policies and strategies are based on this main objective. Key policies include: promotion of direct participatory democracy, voting rights for Nepalis living abroad, grievance handling, border security, self-reliant Nepal and development of an export-oriented economy, domestic employment, promotion of entrepreneurship and management of foreign employment, prioritizing education, public health, export-oriented agriculture, tourism as a basis for employment, and information technology (IT).

Based on this policy, the election manifesto includes '100 bases for policy departure for transformation.' In this situation, the general public has given unprecedented votes to the RSP. A strong government led by Balendra Shah, nearing a two-thirds majority, has been formed through the votes of people fed up with the country's mismanagement and distortions.

A 100-point action plan based on the election manifesto has been recently released, and Dr. Wagle plays a significant role in it. Looking at Nepal's economic growth, it appears to be around 7 to 7.5 percent. Regarding the construction of the country's economy, the RSP manifesto states, 'By repealing two dozen acts that hinder economic progress and through the investment of domestic and non-resident Nepalis in priority areas of economic growth, the per capita income will be made 3,000 US dollars within five to seven years, and the size of the economy will be brought close to 100 billion dollars.'

Now, the current Finance Minister must translate those promises into practice. The current government has lit a lamp of hope among the common citizens by starting the process of good governance and repealing unnecessary acts.

The time has come in Nepal as well, which no one has the courage to stop from being implemented. Because today's time is for the delivery of goods and services, not for empty theories.

To resolve the crisis that appeared in the Indian economy in the 90s, Indian Prime Minister P.V. Narasimha Rao entrusted Dr. Manmohan Singh with the task of reforming the distressed economy. At that time, too, there was a financial crisis in India due to the rise in crude oil prices caused by the Gulf War. In such a challenging time, Dr. Singh, quoting French writer Victor Hugo in his parliamentary speech, said, 'No power on earth can stop an idea whose time has come.'

His speech led India from protectionism toward market-based liberalization. Dr. Singh's statement was, 'Economic reform is not an option, it is a necessity.' Realizing this necessity, he helped increase the economic growth rate from 1.1 percent to 5.1 percent during his tenure. Along with this, he succeeded in reducing poverty from 36 percent to 26 percent.

The time has come in Nepal as well, which no one has the courage to stop from being implemented. Because today's time is for the delivery of goods and services, not for empty theories. In the current world, with the changing pace of time, Party Chairman Rabi Lamichhane and Honorable Prime Minister Balendra Shah have already entrusted Dr. Wagle with the task of reforming Nepal's economy.

According to the changing times, it is his duty to improve the shortcomings of market-based liberalization and build a welfare state through economic growth and development. Since he has the willpower, no power can stop him from making reforms. Even in the current situation, the war in the Middle East has caused a crisis in fuel supply in almost all countries, and inflation is rising.

However, the current government has already taken the first step of good governance for economic development, and a positive message has been conveyed to the common citizens. Just as Dr. Manmohan Singh is remembered as the hero of India's economic development, it is certain that Nepal's current Finance Minister, Dr. Wagle, will be remembered as the hero of Nepal's economic development.

Utilizing Nepal's current time, power, and his personal ability efficiently is a golden opportunity for Dr. Wagle. Dr. Wagle often says in his speeches, 'Even if the policy is good, if the implementation is weak, the result will not come.' Politically, he is someone who values work over academic degrees and is consistent; he is now in a position to make and implement the country's policies, and the common citizens are watching the results.

This important time and place will also provide an opportunity to solve Nepal's pervasive problems and stand as a prosperous nation. It is necessary for everyone to be united to write the important roadmap of good governance, economic growth, and expected development started in Nepal in golden letters.

(The author, Karki, holds an M.Phil in Economics.)