National Planning Commission Vice Chairman Calls for End to Rent-Seeking in Private Sector

Kathmandu. National Planning Commission Vice Chairman Gunakar Bhatta has stated that the private sector's contribution to Nepal's economy is significant, and the tendency to seek special favors through policy influence (rent-seeking) must be abandoned. Speaking at a program organized in the capital, he pointed out that the main problem of the private sector is to seek favors favorable to its own interests by manipulating policies.

Although the private sector's role has been remarkable in the liberalization and policy reforms that have been happening for the past three-four decades, there are some tendencies in society that view this sector critically, and it is necessary to move beyond such bad habits, he said. According to Vice Chairman Bhatta, the private sector should not encourage rent-seeking behavior by unnecessarily lobbying for policy rules.

The private sector has now become necessary to rise above the tendency to focus on speculation rather than productive investment. Citing the example of the 'fishing with dynamite' concept that gained prominence after the 2008 global financial crisis, he clarified that both the private sector and the state must stay away from activities that cause long-term damage for short-term gain.

Discussing the tendencies and areas for reform in the private sector, Vice Chairman Bhatta said, 'The private sector is a sector that contributes honestly to Nepal's economy. For the past three-four decades, we have been talking about liberalization and policy reforms, and the private sector's contribution to that is equally significant. But where is the problem with the private sector? Based on what I have experienced, that is, seen and heard, there are three such characteristics related to the private sector due to which it is viewed critically from various places.'

He expressed the view that the private sector should promote good governance-oriented corporate culture by not just looking at profits, and the government should also strengthen good governance in the state's mechanisms. He expressed commitment to encourage the private sector as a complement to the government's goal of advancing 'good governance and prosperity' together.

He stated that only by moving the private sector in the right direction can the country move on the path of high economic growth, and that is the common desire of all Nepalis. For the overall development of the country, it is necessary to increase the use of new technology like neighboring countries and enhance efficiency in both government and private sectors. If efficiency can be increased, it is believed that areas, classes, and citizens left behind by the mainstream of the state can be made true partners of development by promoting programs for public interest.