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<strong>--By Rameshore Khanal</strong></div>
<div>
</div>
<div>
There’s not much good that one can talk about in matters related to governance and management in Nepal. People from all walks of life cite political instability, shortage of electricity, labour problems, poor infrastructure, and corruption as major reasons for lackluster growth performance. Dismal economic growth is not the only one feature to lament about. There are others:</div>
<ul>
<li>
53 per cent of the population still does not have piped water supply. Those who have it are not getting safer drinking water either. And we are rich in fresh water reserve.</li>
<li>
64 per cent of the population use fuel-wood as the main source of household energy, whereas another 10.38 per cent use cow-dung or animal waste. Only less than 25 per cent use modern, but not necessarily non-polluting, source of energy.</li>
<li>
Only about 67 per cent of the population has some form of electricity connection for lighting, but the supply remains uncertain during the time it is needed most.</li>
<li>
Nearly 39 per cent of households have toilets.</li>
<li>
There are 15 million working age people (57 per cent of total population) and one-fifth of which are looking for gainful employment in places outside the country. Of the remaining, nearly half are not fully employed.</li>
<li>
Only 20 per cent of the population (5.2 million people) have qualification above SLC level. And this we have achieved in 70 years of holding SLC examinations.</li>
<li>
Last year, 336,000 students failed the SLC examination and each year thousands of such youths undergo the trauma of failure.</li>
</ul>
<div>
There are other indicators that are equally pathetic and we can bring about a change, an improvement only through inclusive and high growth.</div>
<div>
</div>
<div>
But growth cannot be achieved without improving governance. Partly because of political instability and mainly because of our attitude, the government system has not been able to deliver.</div>
<div>
</div>
<div>
Infrastructure projects do not complete in time. The average years it takes to complete an electricity transmission project in Nepal is eight years, while in countries of our ranks it takes barely two years. For the last 14 years we have been talking about the Melamchi Water Project that is yet to quench the thirst and meet the needs of around 4 million people. But the date of completion of the project is uncertain. Power projects that ideally complete in less than five years take a decade to become ready with almost twice the initially estimated cost.</div>
<div>
</div>
<div>
Businessmen particularly and ordinary people in general do not feel secure even as the number of policemen is increasing every year. Young people are taught to extort money from struggling businessmen which is in contravention to what they should be doing. They should in fact be helping the business community so that much needed jobs are created within the country.</div>
<div>
</div>
<div>
People with small industries struggling hard in difficult times just to make a presence in the market face a host of problems from registration offices just because they failed to get a renewal in time. Should a failure to renew a registration in time be subjected to a hefty penalty? A struggling entrepreneur from Butwal called me to express his frustration as he faced this injustice.</div>
<div>
</div>
<div>
Foreign investors wanting to explore and excavate minerals, develop hydropower or set up industries vent our frustration too. The list is long and it can go longer. And this is all because of poor governance. The government system is not made accountable for results in the first place. </div>
<div>
</div>
<div>
Secondly, and most importantly, people in key places are appointed not on the basis of merit, but on the basis of political patronage. New public institutions created to meet the emerging needs of the country become dead on arrival as they are given to head by a person who simply does not have the pre-requisite skills and aptitude. </div>
<div>
</div>
<div>
In a few cases, where results-based accountability measures were introduced, governance has improved. We have also seen remarkable improvements in the delivery of certain agencies when honest and dedicated officers are appointed. It does not require a total overhaul of the system. If we can have just a few key people leading the organisation, it can make a significant difference. Quantifiable accountability measures and a policy of hiring able men and women must be introduced in all government agencies.</div>
<div>
</div>
<div>
Governance is not weak just in the public sector; it is also weak in the private, cooperative and non-governmental sectors. Wherever regulatory agencies are effective, problems have somehow been dealt with. But many areas remain unregulated or regulatory agencies are not simply effective. </div>
<div>
</div>
<div>
The distinction between governance and management is often blurred. If the management is good, governance certainly becomes good. By management we often think of the private sector. But experience shows that the private sector performs well largely under professional management. We often hear real estate sector people ask how banks report rising profits every year when businesses in real estate are not performing well. There are different arguments put forward to criticise the bankers’ style of profit-mongering. This is certainly not the right explanation. The right explanation is that the banking sector in the first place is professionally managed and it is more open. In spite of this, greed on occasions has led some banks to face short-term setbacks.</div>
<div>
</div>
<div>
Most real estate businesses do not use professional management services. To call them privately-held may be a deception. In fact, they are family-held and do not place much trust on professional management. I often get confused whether they make the private sector or whether they are a part of the household sector!</div>
<div>
</div>
<div>
And yet, young students these days choose to pursue management courses in large numbers. It is not just in Kathmandu that there is a craze for Business Colleges - it is everywhere in Nepal. Many colleges under the Tribhuvan University system have reported that in the last five years or so, the departments that offered courses, such as, history, political science, culture, language, and even economics have seen negligible or even zero new enrolment.</div>
<div>
</div>
<div>
Most of those who pursue business administration courses either aim for the financial sector or non-governmental organisations. Interacting with students in the last three years, I have not found a single graduating student keen on manufacturing, hospitality, hydropower or other industries.</div>
<div>
</div>
<div>
Without strengthening these sectors, our expectation for higher and inclusive growth will remain an illusion. It is, therefore, necessary that those who are involved in these sectors introduce professional management in their businesses. It is the absence of professional management perhaps, that Nepali workers admired for their honesty and hard-work all over GCC countries, Malaysia and South Korea, are seen to be troublemakers in our own industries.</div>
<div>
<em>(Khanal is Former Finance Secretary. This opinion was expressed in Newbiz Conclave & Business Excellence Awards Ceremony-2013)</em></div>',
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<strong>--By Rameshore Khanal</strong></div>
<div>
</div>
<div>
There’s not much good that one can talk about in matters related to governance and management in Nepal. People from all walks of life cite political instability, shortage of electricity, labour problems, poor infrastructure, and corruption as major reasons for lackluster growth performance. Dismal economic growth is not the only one feature to lament about. There are others:</div>
<ul>
<li>
53 per cent of the population still does not have piped water supply. Those who have it are not getting safer drinking water either. And we are rich in fresh water reserve.</li>
<li>
64 per cent of the population use fuel-wood as the main source of household energy, whereas another 10.38 per cent use cow-dung or animal waste. Only less than 25 per cent use modern, but not necessarily non-polluting, source of energy.</li>
<li>
Only about 67 per cent of the population has some form of electricity connection for lighting, but the supply remains uncertain during the time it is needed most.</li>
<li>
Nearly 39 per cent of households have toilets.</li>
<li>
There are 15 million working age people (57 per cent of total population) and one-fifth of which are looking for gainful employment in places outside the country. Of the remaining, nearly half are not fully employed.</li>
<li>
Only 20 per cent of the population (5.2 million people) have qualification above SLC level. And this we have achieved in 70 years of holding SLC examinations.</li>
<li>
Last year, 336,000 students failed the SLC examination and each year thousands of such youths undergo the trauma of failure.</li>
</ul>
<div>
There are other indicators that are equally pathetic and we can bring about a change, an improvement only through inclusive and high growth.</div>
<div>
</div>
<div>
But growth cannot be achieved without improving governance. Partly because of political instability and mainly because of our attitude, the government system has not been able to deliver.</div>
<div>
</div>
<div>
Infrastructure projects do not complete in time. The average years it takes to complete an electricity transmission project in Nepal is eight years, while in countries of our ranks it takes barely two years. For the last 14 years we have been talking about the Melamchi Water Project that is yet to quench the thirst and meet the needs of around 4 million people. But the date of completion of the project is uncertain. Power projects that ideally complete in less than five years take a decade to become ready with almost twice the initially estimated cost.</div>
<div>
</div>
<div>
Businessmen particularly and ordinary people in general do not feel secure even as the number of policemen is increasing every year. Young people are taught to extort money from struggling businessmen which is in contravention to what they should be doing. They should in fact be helping the business community so that much needed jobs are created within the country.</div>
<div>
</div>
<div>
People with small industries struggling hard in difficult times just to make a presence in the market face a host of problems from registration offices just because they failed to get a renewal in time. Should a failure to renew a registration in time be subjected to a hefty penalty? A struggling entrepreneur from Butwal called me to express his frustration as he faced this injustice.</div>
<div>
</div>
<div>
Foreign investors wanting to explore and excavate minerals, develop hydropower or set up industries vent our frustration too. The list is long and it can go longer. And this is all because of poor governance. The government system is not made accountable for results in the first place. </div>
<div>
</div>
<div>
Secondly, and most importantly, people in key places are appointed not on the basis of merit, but on the basis of political patronage. New public institutions created to meet the emerging needs of the country become dead on arrival as they are given to head by a person who simply does not have the pre-requisite skills and aptitude. </div>
<div>
</div>
<div>
In a few cases, where results-based accountability measures were introduced, governance has improved. We have also seen remarkable improvements in the delivery of certain agencies when honest and dedicated officers are appointed. It does not require a total overhaul of the system. If we can have just a few key people leading the organisation, it can make a significant difference. Quantifiable accountability measures and a policy of hiring able men and women must be introduced in all government agencies.</div>
<div>
</div>
<div>
Governance is not weak just in the public sector; it is also weak in the private, cooperative and non-governmental sectors. Wherever regulatory agencies are effective, problems have somehow been dealt with. But many areas remain unregulated or regulatory agencies are not simply effective. </div>
<div>
</div>
<div>
The distinction between governance and management is often blurred. If the management is good, governance certainly becomes good. By management we often think of the private sector. But experience shows that the private sector performs well largely under professional management. We often hear real estate sector people ask how banks report rising profits every year when businesses in real estate are not performing well. There are different arguments put forward to criticise the bankers’ style of profit-mongering. This is certainly not the right explanation. The right explanation is that the banking sector in the first place is professionally managed and it is more open. In spite of this, greed on occasions has led some banks to face short-term setbacks.</div>
<div>
</div>
<div>
Most real estate businesses do not use professional management services. To call them privately-held may be a deception. In fact, they are family-held and do not place much trust on professional management. I often get confused whether they make the private sector or whether they are a part of the household sector!</div>
<div>
</div>
<div>
And yet, young students these days choose to pursue management courses in large numbers. It is not just in Kathmandu that there is a craze for Business Colleges - it is everywhere in Nepal. Many colleges under the Tribhuvan University system have reported that in the last five years or so, the departments that offered courses, such as, history, political science, culture, language, and even economics have seen negligible or even zero new enrolment.</div>
<div>
</div>
<div>
Most of those who pursue business administration courses either aim for the financial sector or non-governmental organisations. Interacting with students in the last three years, I have not found a single graduating student keen on manufacturing, hospitality, hydropower or other industries.</div>
<div>
</div>
<div>
Without strengthening these sectors, our expectation for higher and inclusive growth will remain an illusion. It is, therefore, necessary that those who are involved in these sectors introduce professional management in their businesses. It is the absence of professional management perhaps, that Nepali workers admired for their honesty and hard-work all over GCC countries, Malaysia and South Korea, are seen to be troublemakers in our own industries.</div>
<div>
<em>(Khanal is Former Finance Secretary. This opinion was expressed in Newbiz Conclave & Business Excellence Awards Ceremony-2013)</em></div>',
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<strong>--By Rameshore Khanal</strong></div>
<div>
</div>
<div>
There’s not much good that one can talk about in matters related to governance and management in Nepal. People from all walks of life cite political instability, shortage of electricity, labour problems, poor infrastructure, and corruption as major reasons for lackluster growth performance. Dismal economic growth is not the only one feature to lament about. There are others:</div>
<ul>
<li>
53 per cent of the population still does not have piped water supply. Those who have it are not getting safer drinking water either. And we are rich in fresh water reserve.</li>
<li>
64 per cent of the population use fuel-wood as the main source of household energy, whereas another 10.38 per cent use cow-dung or animal waste. Only less than 25 per cent use modern, but not necessarily non-polluting, source of energy.</li>
<li>
Only about 67 per cent of the population has some form of electricity connection for lighting, but the supply remains uncertain during the time it is needed most.</li>
<li>
Nearly 39 per cent of households have toilets.</li>
<li>
There are 15 million working age people (57 per cent of total population) and one-fifth of which are looking for gainful employment in places outside the country. Of the remaining, nearly half are not fully employed.</li>
<li>
Only 20 per cent of the population (5.2 million people) have qualification above SLC level. And this we have achieved in 70 years of holding SLC examinations.</li>
<li>
Last year, 336,000 students failed the SLC examination and each year thousands of such youths undergo the trauma of failure.</li>
</ul>
<div>
There are other indicators that are equally pathetic and we can bring about a change, an improvement only through inclusive and high growth.</div>
<div>
</div>
<div>
But growth cannot be achieved without improving governance. Partly because of political instability and mainly because of our attitude, the government system has not been able to deliver.</div>
<div>
</div>
<div>
Infrastructure projects do not complete in time. The average years it takes to complete an electricity transmission project in Nepal is eight years, while in countries of our ranks it takes barely two years. For the last 14 years we have been talking about the Melamchi Water Project that is yet to quench the thirst and meet the needs of around 4 million people. But the date of completion of the project is uncertain. Power projects that ideally complete in less than five years take a decade to become ready with almost twice the initially estimated cost.</div>
<div>
</div>
<div>
Businessmen particularly and ordinary people in general do not feel secure even as the number of policemen is increasing every year. Young people are taught to extort money from struggling businessmen which is in contravention to what they should be doing. They should in fact be helping the business community so that much needed jobs are created within the country.</div>
<div>
</div>
<div>
People with small industries struggling hard in difficult times just to make a presence in the market face a host of problems from registration offices just because they failed to get a renewal in time. Should a failure to renew a registration in time be subjected to a hefty penalty? A struggling entrepreneur from Butwal called me to express his frustration as he faced this injustice.</div>
<div>
</div>
<div>
Foreign investors wanting to explore and excavate minerals, develop hydropower or set up industries vent our frustration too. The list is long and it can go longer. And this is all because of poor governance. The government system is not made accountable for results in the first place. </div>
<div>
</div>
<div>
Secondly, and most importantly, people in key places are appointed not on the basis of merit, but on the basis of political patronage. New public institutions created to meet the emerging needs of the country become dead on arrival as they are given to head by a person who simply does not have the pre-requisite skills and aptitude. </div>
<div>
</div>
<div>
In a few cases, where results-based accountability measures were introduced, governance has improved. We have also seen remarkable improvements in the delivery of certain agencies when honest and dedicated officers are appointed. It does not require a total overhaul of the system. If we can have just a few key people leading the organisation, it can make a significant difference. Quantifiable accountability measures and a policy of hiring able men and women must be introduced in all government agencies.</div>
<div>
</div>
<div>
Governance is not weak just in the public sector; it is also weak in the private, cooperative and non-governmental sectors. Wherever regulatory agencies are effective, problems have somehow been dealt with. But many areas remain unregulated or regulatory agencies are not simply effective. </div>
<div>
</div>
<div>
The distinction between governance and management is often blurred. If the management is good, governance certainly becomes good. By management we often think of the private sector. But experience shows that the private sector performs well largely under professional management. We often hear real estate sector people ask how banks report rising profits every year when businesses in real estate are not performing well. There are different arguments put forward to criticise the bankers’ style of profit-mongering. This is certainly not the right explanation. The right explanation is that the banking sector in the first place is professionally managed and it is more open. In spite of this, greed on occasions has led some banks to face short-term setbacks.</div>
<div>
</div>
<div>
Most real estate businesses do not use professional management services. To call them privately-held may be a deception. In fact, they are family-held and do not place much trust on professional management. I often get confused whether they make the private sector or whether they are a part of the household sector!</div>
<div>
</div>
<div>
And yet, young students these days choose to pursue management courses in large numbers. It is not just in Kathmandu that there is a craze for Business Colleges - it is everywhere in Nepal. Many colleges under the Tribhuvan University system have reported that in the last five years or so, the departments that offered courses, such as, history, political science, culture, language, and even economics have seen negligible or even zero new enrolment.</div>
<div>
</div>
<div>
Most of those who pursue business administration courses either aim for the financial sector or non-governmental organisations. Interacting with students in the last three years, I have not found a single graduating student keen on manufacturing, hospitality, hydropower or other industries.</div>
<div>
</div>
<div>
Without strengthening these sectors, our expectation for higher and inclusive growth will remain an illusion. It is, therefore, necessary that those who are involved in these sectors introduce professional management in their businesses. It is the absence of professional management perhaps, that Nepali workers admired for their honesty and hard-work all over GCC countries, Malaysia and South Korea, are seen to be troublemakers in our own industries.</div>
<div>
<em>(Khanal is Former Finance Secretary. This opinion was expressed in Newbiz Conclave & Business Excellence Awards Ceremony-2013)</em></div>',
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<strong>--By Rameshore Khanal</strong></div>
<div>
</div>
<div>
There’s not much good that one can talk about in matters related to governance and management in Nepal. People from all walks of life cite political instability, shortage of electricity, labour problems, poor infrastructure, and corruption as major reasons for lackluster growth performance. Dismal economic growth is not the only one feature to lament about. There are others:</div>
<ul>
<li>
53 per cent of the population still does not have piped water supply. Those who have it are not getting safer drinking water either. And we are rich in fresh water reserve.</li>
<li>
64 per cent of the population use fuel-wood as the main source of household energy, whereas another 10.38 per cent use cow-dung or animal waste. Only less than 25 per cent use modern, but not necessarily non-polluting, source of energy.</li>
<li>
Only about 67 per cent of the population has some form of electricity connection for lighting, but the supply remains uncertain during the time it is needed most.</li>
<li>
Nearly 39 per cent of households have toilets.</li>
<li>
There are 15 million working age people (57 per cent of total population) and one-fifth of which are looking for gainful employment in places outside the country. Of the remaining, nearly half are not fully employed.</li>
<li>
Only 20 per cent of the population (5.2 million people) have qualification above SLC level. And this we have achieved in 70 years of holding SLC examinations.</li>
<li>
Last year, 336,000 students failed the SLC examination and each year thousands of such youths undergo the trauma of failure.</li>
</ul>
<div>
There are other indicators that are equally pathetic and we can bring about a change, an improvement only through inclusive and high growth.</div>
<div>
</div>
<div>
But growth cannot be achieved without improving governance. Partly because of political instability and mainly because of our attitude, the government system has not been able to deliver.</div>
<div>
</div>
<div>
Infrastructure projects do not complete in time. The average years it takes to complete an electricity transmission project in Nepal is eight years, while in countries of our ranks it takes barely two years. For the last 14 years we have been talking about the Melamchi Water Project that is yet to quench the thirst and meet the needs of around 4 million people. But the date of completion of the project is uncertain. Power projects that ideally complete in less than five years take a decade to become ready with almost twice the initially estimated cost.</div>
<div>
</div>
<div>
Businessmen particularly and ordinary people in general do not feel secure even as the number of policemen is increasing every year. Young people are taught to extort money from struggling businessmen which is in contravention to what they should be doing. They should in fact be helping the business community so that much needed jobs are created within the country.</div>
<div>
</div>
<div>
People with small industries struggling hard in difficult times just to make a presence in the market face a host of problems from registration offices just because they failed to get a renewal in time. Should a failure to renew a registration in time be subjected to a hefty penalty? A struggling entrepreneur from Butwal called me to express his frustration as he faced this injustice.</div>
<div>
</div>
<div>
Foreign investors wanting to explore and excavate minerals, develop hydropower or set up industries vent our frustration too. The list is long and it can go longer. And this is all because of poor governance. The government system is not made accountable for results in the first place. </div>
<div>
</div>
<div>
Secondly, and most importantly, people in key places are appointed not on the basis of merit, but on the basis of political patronage. New public institutions created to meet the emerging needs of the country become dead on arrival as they are given to head by a person who simply does not have the pre-requisite skills and aptitude. </div>
<div>
</div>
<div>
In a few cases, where results-based accountability measures were introduced, governance has improved. We have also seen remarkable improvements in the delivery of certain agencies when honest and dedicated officers are appointed. It does not require a total overhaul of the system. If we can have just a few key people leading the organisation, it can make a significant difference. Quantifiable accountability measures and a policy of hiring able men and women must be introduced in all government agencies.</div>
<div>
</div>
<div>
Governance is not weak just in the public sector; it is also weak in the private, cooperative and non-governmental sectors. Wherever regulatory agencies are effective, problems have somehow been dealt with. But many areas remain unregulated or regulatory agencies are not simply effective. </div>
<div>
</div>
<div>
The distinction between governance and management is often blurred. If the management is good, governance certainly becomes good. By management we often think of the private sector. But experience shows that the private sector performs well largely under professional management. We often hear real estate sector people ask how banks report rising profits every year when businesses in real estate are not performing well. There are different arguments put forward to criticise the bankers’ style of profit-mongering. This is certainly not the right explanation. The right explanation is that the banking sector in the first place is professionally managed and it is more open. In spite of this, greed on occasions has led some banks to face short-term setbacks.</div>
<div>
</div>
<div>
Most real estate businesses do not use professional management services. To call them privately-held may be a deception. In fact, they are family-held and do not place much trust on professional management. I often get confused whether they make the private sector or whether they are a part of the household sector!</div>
<div>
</div>
<div>
And yet, young students these days choose to pursue management courses in large numbers. It is not just in Kathmandu that there is a craze for Business Colleges - it is everywhere in Nepal. Many colleges under the Tribhuvan University system have reported that in the last five years or so, the departments that offered courses, such as, history, political science, culture, language, and even economics have seen negligible or even zero new enrolment.</div>
<div>
</div>
<div>
Most of those who pursue business administration courses either aim for the financial sector or non-governmental organisations. Interacting with students in the last three years, I have not found a single graduating student keen on manufacturing, hospitality, hydropower or other industries.</div>
<div>
</div>
<div>
Without strengthening these sectors, our expectation for higher and inclusive growth will remain an illusion. It is, therefore, necessary that those who are involved in these sectors introduce professional management in their businesses. It is the absence of professional management perhaps, that Nepali workers admired for their honesty and hard-work all over GCC countries, Malaysia and South Korea, are seen to be troublemakers in our own industries.</div>
<div>
<em>(Khanal is Former Finance Secretary. This opinion was expressed in Newbiz Conclave & Business Excellence Awards Ceremony-2013)</em></div>',
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<strong>--By Rameshore Khanal</strong></div>
<div>
</div>
<div>
There’s not much good that one can talk about in matters related to governance and management in Nepal. People from all walks of life cite political instability, shortage of electricity, labour problems, poor infrastructure, and corruption as major reasons for lackluster growth performance. Dismal economic growth is not the only one feature to lament about. There are others:</div>
<ul>
<li>
53 per cent of the population still does not have piped water supply. Those who have it are not getting safer drinking water either. And we are rich in fresh water reserve.</li>
<li>
64 per cent of the population use fuel-wood as the main source of household energy, whereas another 10.38 per cent use cow-dung or animal waste. Only less than 25 per cent use modern, but not necessarily non-polluting, source of energy.</li>
<li>
Only about 67 per cent of the population has some form of electricity connection for lighting, but the supply remains uncertain during the time it is needed most.</li>
<li>
Nearly 39 per cent of households have toilets.</li>
<li>
There are 15 million working age people (57 per cent of total population) and one-fifth of which are looking for gainful employment in places outside the country. Of the remaining, nearly half are not fully employed.</li>
<li>
Only 20 per cent of the population (5.2 million people) have qualification above SLC level. And this we have achieved in 70 years of holding SLC examinations.</li>
<li>
Last year, 336,000 students failed the SLC examination and each year thousands of such youths undergo the trauma of failure.</li>
</ul>
<div>
There are other indicators that are equally pathetic and we can bring about a change, an improvement only through inclusive and high growth.</div>
<div>
</div>
<div>
But growth cannot be achieved without improving governance. Partly because of political instability and mainly because of our attitude, the government system has not been able to deliver.</div>
<div>
</div>
<div>
Infrastructure projects do not complete in time. The average years it takes to complete an electricity transmission project in Nepal is eight years, while in countries of our ranks it takes barely two years. For the last 14 years we have been talking about the Melamchi Water Project that is yet to quench the thirst and meet the needs of around 4 million people. But the date of completion of the project is uncertain. Power projects that ideally complete in less than five years take a decade to become ready with almost twice the initially estimated cost.</div>
<div>
</div>
<div>
Businessmen particularly and ordinary people in general do not feel secure even as the number of policemen is increasing every year. Young people are taught to extort money from struggling businessmen which is in contravention to what they should be doing. They should in fact be helping the business community so that much needed jobs are created within the country.</div>
<div>
</div>
<div>
People with small industries struggling hard in difficult times just to make a presence in the market face a host of problems from registration offices just because they failed to get a renewal in time. Should a failure to renew a registration in time be subjected to a hefty penalty? A struggling entrepreneur from Butwal called me to express his frustration as he faced this injustice.</div>
<div>
</div>
<div>
Foreign investors wanting to explore and excavate minerals, develop hydropower or set up industries vent our frustration too. The list is long and it can go longer. And this is all because of poor governance. The government system is not made accountable for results in the first place. </div>
<div>
</div>
<div>
Secondly, and most importantly, people in key places are appointed not on the basis of merit, but on the basis of political patronage. New public institutions created to meet the emerging needs of the country become dead on arrival as they are given to head by a person who simply does not have the pre-requisite skills and aptitude. </div>
<div>
</div>
<div>
In a few cases, where results-based accountability measures were introduced, governance has improved. We have also seen remarkable improvements in the delivery of certain agencies when honest and dedicated officers are appointed. It does not require a total overhaul of the system. If we can have just a few key people leading the organisation, it can make a significant difference. Quantifiable accountability measures and a policy of hiring able men and women must be introduced in all government agencies.</div>
<div>
</div>
<div>
Governance is not weak just in the public sector; it is also weak in the private, cooperative and non-governmental sectors. Wherever regulatory agencies are effective, problems have somehow been dealt with. But many areas remain unregulated or regulatory agencies are not simply effective. </div>
<div>
</div>
<div>
The distinction between governance and management is often blurred. If the management is good, governance certainly becomes good. By management we often think of the private sector. But experience shows that the private sector performs well largely under professional management. We often hear real estate sector people ask how banks report rising profits every year when businesses in real estate are not performing well. There are different arguments put forward to criticise the bankers’ style of profit-mongering. This is certainly not the right explanation. The right explanation is that the banking sector in the first place is professionally managed and it is more open. In spite of this, greed on occasions has led some banks to face short-term setbacks.</div>
<div>
</div>
<div>
Most real estate businesses do not use professional management services. To call them privately-held may be a deception. In fact, they are family-held and do not place much trust on professional management. I often get confused whether they make the private sector or whether they are a part of the household sector!</div>
<div>
</div>
<div>
And yet, young students these days choose to pursue management courses in large numbers. It is not just in Kathmandu that there is a craze for Business Colleges - it is everywhere in Nepal. Many colleges under the Tribhuvan University system have reported that in the last five years or so, the departments that offered courses, such as, history, political science, culture, language, and even economics have seen negligible or even zero new enrolment.</div>
<div>
</div>
<div>
Most of those who pursue business administration courses either aim for the financial sector or non-governmental organisations. Interacting with students in the last three years, I have not found a single graduating student keen on manufacturing, hospitality, hydropower or other industries.</div>
<div>
</div>
<div>
Without strengthening these sectors, our expectation for higher and inclusive growth will remain an illusion. It is, therefore, necessary that those who are involved in these sectors introduce professional management in their businesses. It is the absence of professional management perhaps, that Nepali workers admired for their honesty and hard-work all over GCC countries, Malaysia and South Korea, are seen to be troublemakers in our own industries.</div>
<div>
<em>(Khanal is Former Finance Secretary. This opinion was expressed in Newbiz Conclave & Business Excellence Awards Ceremony-2013)</em></div>',
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<strong>--By Rameshore Khanal</strong></div>
<div>
</div>
<div>
There’s not much good that one can talk about in matters related to governance and management in Nepal. People from all walks of life cite political instability, shortage of electricity, labour problems, poor infrastructure, and corruption as major reasons for lackluster growth performance. Dismal economic growth is not the only one feature to lament about. There are others:</div>
<ul>
<li>
53 per cent of the population still does not have piped water supply. Those who have it are not getting safer drinking water either. And we are rich in fresh water reserve.</li>
<li>
64 per cent of the population use fuel-wood as the main source of household energy, whereas another 10.38 per cent use cow-dung or animal waste. Only less than 25 per cent use modern, but not necessarily non-polluting, source of energy.</li>
<li>
Only about 67 per cent of the population has some form of electricity connection for lighting, but the supply remains uncertain during the time it is needed most.</li>
<li>
Nearly 39 per cent of households have toilets.</li>
<li>
There are 15 million working age people (57 per cent of total population) and one-fifth of which are looking for gainful employment in places outside the country. Of the remaining, nearly half are not fully employed.</li>
<li>
Only 20 per cent of the population (5.2 million people) have qualification above SLC level. And this we have achieved in 70 years of holding SLC examinations.</li>
<li>
Last year, 336,000 students failed the SLC examination and each year thousands of such youths undergo the trauma of failure.</li>
</ul>
<div>
There are other indicators that are equally pathetic and we can bring about a change, an improvement only through inclusive and high growth.</div>
<div>
</div>
<div>
But growth cannot be achieved without improving governance. Partly because of political instability and mainly because of our attitude, the government system has not been able to deliver.</div>
<div>
</div>
<div>
Infrastructure projects do not complete in time. The average years it takes to complete an electricity transmission project in Nepal is eight years, while in countries of our ranks it takes barely two years. For the last 14 years we have been talking about the Melamchi Water Project that is yet to quench the thirst and meet the needs of around 4 million people. But the date of completion of the project is uncertain. Power projects that ideally complete in less than five years take a decade to become ready with almost twice the initially estimated cost.</div>
<div>
</div>
<div>
Businessmen particularly and ordinary people in general do not feel secure even as the number of policemen is increasing every year. Young people are taught to extort money from struggling businessmen which is in contravention to what they should be doing. They should in fact be helping the business community so that much needed jobs are created within the country.</div>
<div>
</div>
<div>
People with small industries struggling hard in difficult times just to make a presence in the market face a host of problems from registration offices just because they failed to get a renewal in time. Should a failure to renew a registration in time be subjected to a hefty penalty? A struggling entrepreneur from Butwal called me to express his frustration as he faced this injustice.</div>
<div>
</div>
<div>
Foreign investors wanting to explore and excavate minerals, develop hydropower or set up industries vent our frustration too. The list is long and it can go longer. And this is all because of poor governance. The government system is not made accountable for results in the first place. </div>
<div>
</div>
<div>
Secondly, and most importantly, people in key places are appointed not on the basis of merit, but on the basis of political patronage. New public institutions created to meet the emerging needs of the country become dead on arrival as they are given to head by a person who simply does not have the pre-requisite skills and aptitude. </div>
<div>
</div>
<div>
In a few cases, where results-based accountability measures were introduced, governance has improved. We have also seen remarkable improvements in the delivery of certain agencies when honest and dedicated officers are appointed. It does not require a total overhaul of the system. If we can have just a few key people leading the organisation, it can make a significant difference. Quantifiable accountability measures and a policy of hiring able men and women must be introduced in all government agencies.</div>
<div>
</div>
<div>
Governance is not weak just in the public sector; it is also weak in the private, cooperative and non-governmental sectors. Wherever regulatory agencies are effective, problems have somehow been dealt with. But many areas remain unregulated or regulatory agencies are not simply effective. </div>
<div>
</div>
<div>
The distinction between governance and management is often blurred. If the management is good, governance certainly becomes good. By management we often think of the private sector. But experience shows that the private sector performs well largely under professional management. We often hear real estate sector people ask how banks report rising profits every year when businesses in real estate are not performing well. There are different arguments put forward to criticise the bankers’ style of profit-mongering. This is certainly not the right explanation. The right explanation is that the banking sector in the first place is professionally managed and it is more open. In spite of this, greed on occasions has led some banks to face short-term setbacks.</div>
<div>
</div>
<div>
Most real estate businesses do not use professional management services. To call them privately-held may be a deception. In fact, they are family-held and do not place much trust on professional management. I often get confused whether they make the private sector or whether they are a part of the household sector!</div>
<div>
</div>
<div>
And yet, young students these days choose to pursue management courses in large numbers. It is not just in Kathmandu that there is a craze for Business Colleges - it is everywhere in Nepal. Many colleges under the Tribhuvan University system have reported that in the last five years or so, the departments that offered courses, such as, history, political science, culture, language, and even economics have seen negligible or even zero new enrolment.</div>
<div>
</div>
<div>
Most of those who pursue business administration courses either aim for the financial sector or non-governmental organisations. Interacting with students in the last three years, I have not found a single graduating student keen on manufacturing, hospitality, hydropower or other industries.</div>
<div>
</div>
<div>
Without strengthening these sectors, our expectation for higher and inclusive growth will remain an illusion. It is, therefore, necessary that those who are involved in these sectors introduce professional management in their businesses. It is the absence of professional management perhaps, that Nepali workers admired for their honesty and hard-work all over GCC countries, Malaysia and South Korea, are seen to be troublemakers in our own industries.</div>
<div>
<em>(Khanal is Former Finance Secretary. This opinion was expressed in Newbiz Conclave & Business Excellence Awards Ceremony-2013)</em></div>',
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The Software Of Growth : Governance And Management
6 min 4 sec to read
--By Rameshore Khanal
There’s not much good that one can talk about in matters related to governance and management in Nepal. People from all walks of life cite political instability, shortage of electricity, labour problems, poor infrastructure, and corruption as major reasons for lackluster growth performance. Dismal economic growth is not the only one feature to lament about. There are others:
53 per cent of the population still does not have piped water supply. Those who have it are not getting safer drinking water either. And we are rich in fresh water reserve.
64 per cent of the population use fuel-wood as the main source of household energy, whereas another 10.38 per cent use cow-dung or animal waste. Only less than 25 per cent use modern, but not necessarily non-polluting, source of energy.
Only about 67 per cent of the population has some form of electricity connection for lighting, but the supply remains uncertain during the time it is needed most.
Nearly 39 per cent of households have toilets.
There are 15 million working age people (57 per cent of total population) and one-fifth of which are looking for gainful employment in places outside the country. Of the remaining, nearly half are not fully employed.
Only 20 per cent of the population (5.2 million people) have qualification above SLC level. And this we have achieved in 70 years of holding SLC examinations.
Last year, 336,000 students failed the SLC examination and each year thousands of such youths undergo the trauma of failure.
There are other indicators that are equally pathetic and we can bring about a change, an improvement only through inclusive and high growth.
But growth cannot be achieved without improving governance. Partly because of political instability and mainly because of our attitude, the government system has not been able to deliver.
Infrastructure projects do not complete in time. The average years it takes to complete an electricity transmission project in Nepal is eight years, while in countries of our ranks it takes barely two years. For the last 14 years we have been talking about the Melamchi Water Project that is yet to quench the thirst and meet the needs of around 4 million people. But the date of completion of the project is uncertain. Power projects that ideally complete in less than five years take a decade to become ready with almost twice the initially estimated cost.
Businessmen particularly and ordinary people in general do not feel secure even as the number of policemen is increasing every year. Young people are taught to extort money from struggling businessmen which is in contravention to what they should be doing. They should in fact be helping the business community so that much needed jobs are created within the country.
People with small industries struggling hard in difficult times just to make a presence in the market face a host of problems from registration offices just because they failed to get a renewal in time. Should a failure to renew a registration in time be subjected to a hefty penalty? A struggling entrepreneur from Butwal called me to express his frustration as he faced this injustice.
Foreign investors wanting to explore and excavate minerals, develop hydropower or set up industries vent our frustration too. The list is long and it can go longer. And this is all because of poor governance. The government system is not made accountable for results in the first place.
Secondly, and most importantly, people in key places are appointed not on the basis of merit, but on the basis of political patronage. New public institutions created to meet the emerging needs of the country become dead on arrival as they are given to head by a person who simply does not have the pre-requisite skills and aptitude.
In a few cases, where results-based accountability measures were introduced, governance has improved. We have also seen remarkable improvements in the delivery of certain agencies when honest and dedicated officers are appointed. It does not require a total overhaul of the system. If we can have just a few key people leading the organisation, it can make a significant difference. Quantifiable accountability measures and a policy of hiring able men and women must be introduced in all government agencies.
Governance is not weak just in the public sector; it is also weak in the private, cooperative and non-governmental sectors. Wherever regulatory agencies are effective, problems have somehow been dealt with. But many areas remain unregulated or regulatory agencies are not simply effective.
The distinction between governance and management is often blurred. If the management is good, governance certainly becomes good. By management we often think of the private sector. But experience shows that the private sector performs well largely under professional management. We often hear real estate sector people ask how banks report rising profits every year when businesses in real estate are not performing well. There are different arguments put forward to criticise the bankers’ style of profit-mongering. This is certainly not the right explanation. The right explanation is that the banking sector in the first place is professionally managed and it is more open. In spite of this, greed on occasions has led some banks to face short-term setbacks.
Most real estate businesses do not use professional management services. To call them privately-held may be a deception. In fact, they are family-held and do not place much trust on professional management. I often get confused whether they make the private sector or whether they are a part of the household sector!
And yet, young students these days choose to pursue management courses in large numbers. It is not just in Kathmandu that there is a craze for Business Colleges - it is everywhere in Nepal. Many colleges under the Tribhuvan University system have reported that in the last five years or so, the departments that offered courses, such as, history, political science, culture, language, and even economics have seen negligible or even zero new enrolment.
Most of those who pursue business administration courses either aim for the financial sector or non-governmental organisations. Interacting with students in the last three years, I have not found a single graduating student keen on manufacturing, hospitality, hydropower or other industries.
Without strengthening these sectors, our expectation for higher and inclusive growth will remain an illusion. It is, therefore, necessary that those who are involved in these sectors introduce professional management in their businesses. It is the absence of professional management perhaps, that Nepali workers admired for their honesty and hard-work all over GCC countries, Malaysia and South Korea, are seen to be troublemakers in our own industries.
(Khanal is Former Finance Secretary. This opinion was expressed in Newbiz Conclave & Business Excellence Awards Ceremony-2013)
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<strong>--By Rameshore Khanal</strong></div>
<div>
</div>
<div>
There’s not much good that one can talk about in matters related to governance and management in Nepal. People from all walks of life cite political instability, shortage of electricity, labour problems, poor infrastructure, and corruption as major reasons for lackluster growth performance. Dismal economic growth is not the only one feature to lament about. There are others:</div>
<ul>
<li>
53 per cent of the population still does not have piped water supply. Those who have it are not getting safer drinking water either. And we are rich in fresh water reserve.</li>
<li>
64 per cent of the population use fuel-wood as the main source of household energy, whereas another 10.38 per cent use cow-dung or animal waste. Only less than 25 per cent use modern, but not necessarily non-polluting, source of energy.</li>
<li>
Only about 67 per cent of the population has some form of electricity connection for lighting, but the supply remains uncertain during the time it is needed most.</li>
<li>
Nearly 39 per cent of households have toilets.</li>
<li>
There are 15 million working age people (57 per cent of total population) and one-fifth of which are looking for gainful employment in places outside the country. Of the remaining, nearly half are not fully employed.</li>
<li>
Only 20 per cent of the population (5.2 million people) have qualification above SLC level. And this we have achieved in 70 years of holding SLC examinations.</li>
<li>
Last year, 336,000 students failed the SLC examination and each year thousands of such youths undergo the trauma of failure.</li>
</ul>
<div>
There are other indicators that are equally pathetic and we can bring about a change, an improvement only through inclusive and high growth.</div>
<div>
</div>
<div>
But growth cannot be achieved without improving governance. Partly because of political instability and mainly because of our attitude, the government system has not been able to deliver.</div>
<div>
</div>
<div>
Infrastructure projects do not complete in time. The average years it takes to complete an electricity transmission project in Nepal is eight years, while in countries of our ranks it takes barely two years. For the last 14 years we have been talking about the Melamchi Water Project that is yet to quench the thirst and meet the needs of around 4 million people. But the date of completion of the project is uncertain. Power projects that ideally complete in less than five years take a decade to become ready with almost twice the initially estimated cost.</div>
<div>
</div>
<div>
Businessmen particularly and ordinary people in general do not feel secure even as the number of policemen is increasing every year. Young people are taught to extort money from struggling businessmen which is in contravention to what they should be doing. They should in fact be helping the business community so that much needed jobs are created within the country.</div>
<div>
</div>
<div>
People with small industries struggling hard in difficult times just to make a presence in the market face a host of problems from registration offices just because they failed to get a renewal in time. Should a failure to renew a registration in time be subjected to a hefty penalty? A struggling entrepreneur from Butwal called me to express his frustration as he faced this injustice.</div>
<div>
</div>
<div>
Foreign investors wanting to explore and excavate minerals, develop hydropower or set up industries vent our frustration too. The list is long and it can go longer. And this is all because of poor governance. The government system is not made accountable for results in the first place. </div>
<div>
</div>
<div>
Secondly, and most importantly, people in key places are appointed not on the basis of merit, but on the basis of political patronage. New public institutions created to meet the emerging needs of the country become dead on arrival as they are given to head by a person who simply does not have the pre-requisite skills and aptitude. </div>
<div>
</div>
<div>
In a few cases, where results-based accountability measures were introduced, governance has improved. We have also seen remarkable improvements in the delivery of certain agencies when honest and dedicated officers are appointed. It does not require a total overhaul of the system. If we can have just a few key people leading the organisation, it can make a significant difference. Quantifiable accountability measures and a policy of hiring able men and women must be introduced in all government agencies.</div>
<div>
</div>
<div>
Governance is not weak just in the public sector; it is also weak in the private, cooperative and non-governmental sectors. Wherever regulatory agencies are effective, problems have somehow been dealt with. But many areas remain unregulated or regulatory agencies are not simply effective. </div>
<div>
</div>
<div>
The distinction between governance and management is often blurred. If the management is good, governance certainly becomes good. By management we often think of the private sector. But experience shows that the private sector performs well largely under professional management. We often hear real estate sector people ask how banks report rising profits every year when businesses in real estate are not performing well. There are different arguments put forward to criticise the bankers’ style of profit-mongering. This is certainly not the right explanation. The right explanation is that the banking sector in the first place is professionally managed and it is more open. In spite of this, greed on occasions has led some banks to face short-term setbacks.</div>
<div>
</div>
<div>
Most real estate businesses do not use professional management services. To call them privately-held may be a deception. In fact, they are family-held and do not place much trust on professional management. I often get confused whether they make the private sector or whether they are a part of the household sector!</div>
<div>
</div>
<div>
And yet, young students these days choose to pursue management courses in large numbers. It is not just in Kathmandu that there is a craze for Business Colleges - it is everywhere in Nepal. Many colleges under the Tribhuvan University system have reported that in the last five years or so, the departments that offered courses, such as, history, political science, culture, language, and even economics have seen negligible or even zero new enrolment.</div>
<div>
</div>
<div>
Most of those who pursue business administration courses either aim for the financial sector or non-governmental organisations. Interacting with students in the last three years, I have not found a single graduating student keen on manufacturing, hospitality, hydropower or other industries.</div>
<div>
</div>
<div>
Without strengthening these sectors, our expectation for higher and inclusive growth will remain an illusion. It is, therefore, necessary that those who are involved in these sectors introduce professional management in their businesses. It is the absence of professional management perhaps, that Nepali workers admired for their honesty and hard-work all over GCC countries, Malaysia and South Korea, are seen to be troublemakers in our own industries.</div>
<div>
<em>(Khanal is Former Finance Secretary. This opinion was expressed in Newbiz Conclave & Business Excellence Awards Ceremony-2013)</em></div>',
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<strong>--By Rameshore Khanal</strong></div>
<div>
</div>
<div>
There’s not much good that one can talk about in matters related to governance and management in Nepal. People from all walks of life cite political instability, shortage of electricity, labour problems, poor infrastructure, and corruption as major reasons for lackluster growth performance. Dismal economic growth is not the only one feature to lament about. There are others:</div>
<ul>
<li>
53 per cent of the population still does not have piped water supply. Those who have it are not getting safer drinking water either. And we are rich in fresh water reserve.</li>
<li>
64 per cent of the population use fuel-wood as the main source of household energy, whereas another 10.38 per cent use cow-dung or animal waste. Only less than 25 per cent use modern, but not necessarily non-polluting, source of energy.</li>
<li>
Only about 67 per cent of the population has some form of electricity connection for lighting, but the supply remains uncertain during the time it is needed most.</li>
<li>
Nearly 39 per cent of households have toilets.</li>
<li>
There are 15 million working age people (57 per cent of total population) and one-fifth of which are looking for gainful employment in places outside the country. Of the remaining, nearly half are not fully employed.</li>
<li>
Only 20 per cent of the population (5.2 million people) have qualification above SLC level. And this we have achieved in 70 years of holding SLC examinations.</li>
<li>
Last year, 336,000 students failed the SLC examination and each year thousands of such youths undergo the trauma of failure.</li>
</ul>
<div>
There are other indicators that are equally pathetic and we can bring about a change, an improvement only through inclusive and high growth.</div>
<div>
</div>
<div>
But growth cannot be achieved without improving governance. Partly because of political instability and mainly because of our attitude, the government system has not been able to deliver.</div>
<div>
</div>
<div>
Infrastructure projects do not complete in time. The average years it takes to complete an electricity transmission project in Nepal is eight years, while in countries of our ranks it takes barely two years. For the last 14 years we have been talking about the Melamchi Water Project that is yet to quench the thirst and meet the needs of around 4 million people. But the date of completion of the project is uncertain. Power projects that ideally complete in less than five years take a decade to become ready with almost twice the initially estimated cost.</div>
<div>
</div>
<div>
Businessmen particularly and ordinary people in general do not feel secure even as the number of policemen is increasing every year. Young people are taught to extort money from struggling businessmen which is in contravention to what they should be doing. They should in fact be helping the business community so that much needed jobs are created within the country.</div>
<div>
</div>
<div>
People with small industries struggling hard in difficult times just to make a presence in the market face a host of problems from registration offices just because they failed to get a renewal in time. Should a failure to renew a registration in time be subjected to a hefty penalty? A struggling entrepreneur from Butwal called me to express his frustration as he faced this injustice.</div>
<div>
</div>
<div>
Foreign investors wanting to explore and excavate minerals, develop hydropower or set up industries vent our frustration too. The list is long and it can go longer. And this is all because of poor governance. The government system is not made accountable for results in the first place. </div>
<div>
</div>
<div>
Secondly, and most importantly, people in key places are appointed not on the basis of merit, but on the basis of political patronage. New public institutions created to meet the emerging needs of the country become dead on arrival as they are given to head by a person who simply does not have the pre-requisite skills and aptitude. </div>
<div>
</div>
<div>
In a few cases, where results-based accountability measures were introduced, governance has improved. We have also seen remarkable improvements in the delivery of certain agencies when honest and dedicated officers are appointed. It does not require a total overhaul of the system. If we can have just a few key people leading the organisation, it can make a significant difference. Quantifiable accountability measures and a policy of hiring able men and women must be introduced in all government agencies.</div>
<div>
</div>
<div>
Governance is not weak just in the public sector; it is also weak in the private, cooperative and non-governmental sectors. Wherever regulatory agencies are effective, problems have somehow been dealt with. But many areas remain unregulated or regulatory agencies are not simply effective. </div>
<div>
</div>
<div>
The distinction between governance and management is often blurred. If the management is good, governance certainly becomes good. By management we often think of the private sector. But experience shows that the private sector performs well largely under professional management. We often hear real estate sector people ask how banks report rising profits every year when businesses in real estate are not performing well. There are different arguments put forward to criticise the bankers’ style of profit-mongering. This is certainly not the right explanation. The right explanation is that the banking sector in the first place is professionally managed and it is more open. In spite of this, greed on occasions has led some banks to face short-term setbacks.</div>
<div>
</div>
<div>
Most real estate businesses do not use professional management services. To call them privately-held may be a deception. In fact, they are family-held and do not place much trust on professional management. I often get confused whether they make the private sector or whether they are a part of the household sector!</div>
<div>
</div>
<div>
And yet, young students these days choose to pursue management courses in large numbers. It is not just in Kathmandu that there is a craze for Business Colleges - it is everywhere in Nepal. Many colleges under the Tribhuvan University system have reported that in the last five years or so, the departments that offered courses, such as, history, political science, culture, language, and even economics have seen negligible or even zero new enrolment.</div>
<div>
</div>
<div>
Most of those who pursue business administration courses either aim for the financial sector or non-governmental organisations. Interacting with students in the last three years, I have not found a single graduating student keen on manufacturing, hospitality, hydropower or other industries.</div>
<div>
</div>
<div>
Without strengthening these sectors, our expectation for higher and inclusive growth will remain an illusion. It is, therefore, necessary that those who are involved in these sectors introduce professional management in their businesses. It is the absence of professional management perhaps, that Nepali workers admired for their honesty and hard-work all over GCC countries, Malaysia and South Korea, are seen to be troublemakers in our own industries.</div>
<div>
<em>(Khanal is Former Finance Secretary. This opinion was expressed in Newbiz Conclave & Business Excellence Awards Ceremony-2013)</em></div>',
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<strong>--By Rameshore Khanal</strong></div>
<div>
</div>
<div>
There’s not much good that one can talk about in matters related to governance and management in Nepal. People from all walks of life cite political instability, shortage of electricity, labour problems, poor infrastructure, and corruption as major reasons for lackluster growth performance. Dismal economic growth is not the only one feature to lament about. There are others:</div>
<ul>
<li>
53 per cent of the population still does not have piped water supply. Those who have it are not getting safer drinking water either. And we are rich in fresh water reserve.</li>
<li>
64 per cent of the population use fuel-wood as the main source of household energy, whereas another 10.38 per cent use cow-dung or animal waste. Only less than 25 per cent use modern, but not necessarily non-polluting, source of energy.</li>
<li>
Only about 67 per cent of the population has some form of electricity connection for lighting, but the supply remains uncertain during the time it is needed most.</li>
<li>
Nearly 39 per cent of households have toilets.</li>
<li>
There are 15 million working age people (57 per cent of total population) and one-fifth of which are looking for gainful employment in places outside the country. Of the remaining, nearly half are not fully employed.</li>
<li>
Only 20 per cent of the population (5.2 million people) have qualification above SLC level. And this we have achieved in 70 years of holding SLC examinations.</li>
<li>
Last year, 336,000 students failed the SLC examination and each year thousands of such youths undergo the trauma of failure.</li>
</ul>
<div>
There are other indicators that are equally pathetic and we can bring about a change, an improvement only through inclusive and high growth.</div>
<div>
</div>
<div>
But growth cannot be achieved without improving governance. Partly because of political instability and mainly because of our attitude, the government system has not been able to deliver.</div>
<div>
</div>
<div>
Infrastructure projects do not complete in time. The average years it takes to complete an electricity transmission project in Nepal is eight years, while in countries of our ranks it takes barely two years. For the last 14 years we have been talking about the Melamchi Water Project that is yet to quench the thirst and meet the needs of around 4 million people. But the date of completion of the project is uncertain. Power projects that ideally complete in less than five years take a decade to become ready with almost twice the initially estimated cost.</div>
<div>
</div>
<div>
Businessmen particularly and ordinary people in general do not feel secure even as the number of policemen is increasing every year. Young people are taught to extort money from struggling businessmen which is in contravention to what they should be doing. They should in fact be helping the business community so that much needed jobs are created within the country.</div>
<div>
</div>
<div>
People with small industries struggling hard in difficult times just to make a presence in the market face a host of problems from registration offices just because they failed to get a renewal in time. Should a failure to renew a registration in time be subjected to a hefty penalty? A struggling entrepreneur from Butwal called me to express his frustration as he faced this injustice.</div>
<div>
</div>
<div>
Foreign investors wanting to explore and excavate minerals, develop hydropower or set up industries vent our frustration too. The list is long and it can go longer. And this is all because of poor governance. The government system is not made accountable for results in the first place. </div>
<div>
</div>
<div>
Secondly, and most importantly, people in key places are appointed not on the basis of merit, but on the basis of political patronage. New public institutions created to meet the emerging needs of the country become dead on arrival as they are given to head by a person who simply does not have the pre-requisite skills and aptitude. </div>
<div>
</div>
<div>
In a few cases, where results-based accountability measures were introduced, governance has improved. We have also seen remarkable improvements in the delivery of certain agencies when honest and dedicated officers are appointed. It does not require a total overhaul of the system. If we can have just a few key people leading the organisation, it can make a significant difference. Quantifiable accountability measures and a policy of hiring able men and women must be introduced in all government agencies.</div>
<div>
</div>
<div>
Governance is not weak just in the public sector; it is also weak in the private, cooperative and non-governmental sectors. Wherever regulatory agencies are effective, problems have somehow been dealt with. But many areas remain unregulated or regulatory agencies are not simply effective. </div>
<div>
</div>
<div>
The distinction between governance and management is often blurred. If the management is good, governance certainly becomes good. By management we often think of the private sector. But experience shows that the private sector performs well largely under professional management. We often hear real estate sector people ask how banks report rising profits every year when businesses in real estate are not performing well. There are different arguments put forward to criticise the bankers’ style of profit-mongering. This is certainly not the right explanation. The right explanation is that the banking sector in the first place is professionally managed and it is more open. In spite of this, greed on occasions has led some banks to face short-term setbacks.</div>
<div>
</div>
<div>
Most real estate businesses do not use professional management services. To call them privately-held may be a deception. In fact, they are family-held and do not place much trust on professional management. I often get confused whether they make the private sector or whether they are a part of the household sector!</div>
<div>
</div>
<div>
And yet, young students these days choose to pursue management courses in large numbers. It is not just in Kathmandu that there is a craze for Business Colleges - it is everywhere in Nepal. Many colleges under the Tribhuvan University system have reported that in the last five years or so, the departments that offered courses, such as, history, political science, culture, language, and even economics have seen negligible or even zero new enrolment.</div>
<div>
</div>
<div>
Most of those who pursue business administration courses either aim for the financial sector or non-governmental organisations. Interacting with students in the last three years, I have not found a single graduating student keen on manufacturing, hospitality, hydropower or other industries.</div>
<div>
</div>
<div>
Without strengthening these sectors, our expectation for higher and inclusive growth will remain an illusion. It is, therefore, necessary that those who are involved in these sectors introduce professional management in their businesses. It is the absence of professional management perhaps, that Nepali workers admired for their honesty and hard-work all over GCC countries, Malaysia and South Korea, are seen to be troublemakers in our own industries.</div>
<div>
<em>(Khanal is Former Finance Secretary. This opinion was expressed in Newbiz Conclave & Business Excellence Awards Ceremony-2013)</em></div>',
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<strong>--By Rameshore Khanal</strong></div>
<div>
</div>
<div>
There’s not much good that one can talk about in matters related to governance and management in Nepal. People from all walks of life cite political instability, shortage of electricity, labour problems, poor infrastructure, and corruption as major reasons for lackluster growth performance. Dismal economic growth is not the only one feature to lament about. There are others:</div>
<ul>
<li>
53 per cent of the population still does not have piped water supply. Those who have it are not getting safer drinking water either. And we are rich in fresh water reserve.</li>
<li>
64 per cent of the population use fuel-wood as the main source of household energy, whereas another 10.38 per cent use cow-dung or animal waste. Only less than 25 per cent use modern, but not necessarily non-polluting, source of energy.</li>
<li>
Only about 67 per cent of the population has some form of electricity connection for lighting, but the supply remains uncertain during the time it is needed most.</li>
<li>
Nearly 39 per cent of households have toilets.</li>
<li>
There are 15 million working age people (57 per cent of total population) and one-fifth of which are looking for gainful employment in places outside the country. Of the remaining, nearly half are not fully employed.</li>
<li>
Only 20 per cent of the population (5.2 million people) have qualification above SLC level. And this we have achieved in 70 years of holding SLC examinations.</li>
<li>
Last year, 336,000 students failed the SLC examination and each year thousands of such youths undergo the trauma of failure.</li>
</ul>
<div>
There are other indicators that are equally pathetic and we can bring about a change, an improvement only through inclusive and high growth.</div>
<div>
</div>
<div>
But growth cannot be achieved without improving governance. Partly because of political instability and mainly because of our attitude, the government system has not been able to deliver.</div>
<div>
</div>
<div>
Infrastructure projects do not complete in time. The average years it takes to complete an electricity transmission project in Nepal is eight years, while in countries of our ranks it takes barely two years. For the last 14 years we have been talking about the Melamchi Water Project that is yet to quench the thirst and meet the needs of around 4 million people. But the date of completion of the project is uncertain. Power projects that ideally complete in less than five years take a decade to become ready with almost twice the initially estimated cost.</div>
<div>
</div>
<div>
Businessmen particularly and ordinary people in general do not feel secure even as the number of policemen is increasing every year. Young people are taught to extort money from struggling businessmen which is in contravention to what they should be doing. They should in fact be helping the business community so that much needed jobs are created within the country.</div>
<div>
</div>
<div>
People with small industries struggling hard in difficult times just to make a presence in the market face a host of problems from registration offices just because they failed to get a renewal in time. Should a failure to renew a registration in time be subjected to a hefty penalty? A struggling entrepreneur from Butwal called me to express his frustration as he faced this injustice.</div>
<div>
</div>
<div>
Foreign investors wanting to explore and excavate minerals, develop hydropower or set up industries vent our frustration too. The list is long and it can go longer. And this is all because of poor governance. The government system is not made accountable for results in the first place. </div>
<div>
</div>
<div>
Secondly, and most importantly, people in key places are appointed not on the basis of merit, but on the basis of political patronage. New public institutions created to meet the emerging needs of the country become dead on arrival as they are given to head by a person who simply does not have the pre-requisite skills and aptitude. </div>
<div>
</div>
<div>
In a few cases, where results-based accountability measures were introduced, governance has improved. We have also seen remarkable improvements in the delivery of certain agencies when honest and dedicated officers are appointed. It does not require a total overhaul of the system. If we can have just a few key people leading the organisation, it can make a significant difference. Quantifiable accountability measures and a policy of hiring able men and women must be introduced in all government agencies.</div>
<div>
</div>
<div>
Governance is not weak just in the public sector; it is also weak in the private, cooperative and non-governmental sectors. Wherever regulatory agencies are effective, problems have somehow been dealt with. But many areas remain unregulated or regulatory agencies are not simply effective. </div>
<div>
</div>
<div>
The distinction between governance and management is often blurred. If the management is good, governance certainly becomes good. By management we often think of the private sector. But experience shows that the private sector performs well largely under professional management. We often hear real estate sector people ask how banks report rising profits every year when businesses in real estate are not performing well. There are different arguments put forward to criticise the bankers’ style of profit-mongering. This is certainly not the right explanation. The right explanation is that the banking sector in the first place is professionally managed and it is more open. In spite of this, greed on occasions has led some banks to face short-term setbacks.</div>
<div>
</div>
<div>
Most real estate businesses do not use professional management services. To call them privately-held may be a deception. In fact, they are family-held and do not place much trust on professional management. I often get confused whether they make the private sector or whether they are a part of the household sector!</div>
<div>
</div>
<div>
And yet, young students these days choose to pursue management courses in large numbers. It is not just in Kathmandu that there is a craze for Business Colleges - it is everywhere in Nepal. Many colleges under the Tribhuvan University system have reported that in the last five years or so, the departments that offered courses, such as, history, political science, culture, language, and even economics have seen negligible or even zero new enrolment.</div>
<div>
</div>
<div>
Most of those who pursue business administration courses either aim for the financial sector or non-governmental organisations. Interacting with students in the last three years, I have not found a single graduating student keen on manufacturing, hospitality, hydropower or other industries.</div>
<div>
</div>
<div>
Without strengthening these sectors, our expectation for higher and inclusive growth will remain an illusion. It is, therefore, necessary that those who are involved in these sectors introduce professional management in their businesses. It is the absence of professional management perhaps, that Nepali workers admired for their honesty and hard-work all over GCC countries, Malaysia and South Korea, are seen to be troublemakers in our own industries.</div>
<div>
<em>(Khanal is Former Finance Secretary. This opinion was expressed in Newbiz Conclave & Business Excellence Awards Ceremony-2013)</em></div>',
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<strong>--By Rameshore Khanal</strong></div>
<div>
</div>
<div>
There’s not much good that one can talk about in matters related to governance and management in Nepal. People from all walks of life cite political instability, shortage of electricity, labour problems, poor infrastructure, and corruption as major reasons for lackluster growth performance. Dismal economic growth is not the only one feature to lament about. There are others:</div>
<ul>
<li>
53 per cent of the population still does not have piped water supply. Those who have it are not getting safer drinking water either. And we are rich in fresh water reserve.</li>
<li>
64 per cent of the population use fuel-wood as the main source of household energy, whereas another 10.38 per cent use cow-dung or animal waste. Only less than 25 per cent use modern, but not necessarily non-polluting, source of energy.</li>
<li>
Only about 67 per cent of the population has some form of electricity connection for lighting, but the supply remains uncertain during the time it is needed most.</li>
<li>
Nearly 39 per cent of households have toilets.</li>
<li>
There are 15 million working age people (57 per cent of total population) and one-fifth of which are looking for gainful employment in places outside the country. Of the remaining, nearly half are not fully employed.</li>
<li>
Only 20 per cent of the population (5.2 million people) have qualification above SLC level. And this we have achieved in 70 years of holding SLC examinations.</li>
<li>
Last year, 336,000 students failed the SLC examination and each year thousands of such youths undergo the trauma of failure.</li>
</ul>
<div>
There are other indicators that are equally pathetic and we can bring about a change, an improvement only through inclusive and high growth.</div>
<div>
</div>
<div>
But growth cannot be achieved without improving governance. Partly because of political instability and mainly because of our attitude, the government system has not been able to deliver.</div>
<div>
</div>
<div>
Infrastructure projects do not complete in time. The average years it takes to complete an electricity transmission project in Nepal is eight years, while in countries of our ranks it takes barely two years. For the last 14 years we have been talking about the Melamchi Water Project that is yet to quench the thirst and meet the needs of around 4 million people. But the date of completion of the project is uncertain. Power projects that ideally complete in less than five years take a decade to become ready with almost twice the initially estimated cost.</div>
<div>
</div>
<div>
Businessmen particularly and ordinary people in general do not feel secure even as the number of policemen is increasing every year. Young people are taught to extort money from struggling businessmen which is in contravention to what they should be doing. They should in fact be helping the business community so that much needed jobs are created within the country.</div>
<div>
</div>
<div>
People with small industries struggling hard in difficult times just to make a presence in the market face a host of problems from registration offices just because they failed to get a renewal in time. Should a failure to renew a registration in time be subjected to a hefty penalty? A struggling entrepreneur from Butwal called me to express his frustration as he faced this injustice.</div>
<div>
</div>
<div>
Foreign investors wanting to explore and excavate minerals, develop hydropower or set up industries vent our frustration too. The list is long and it can go longer. And this is all because of poor governance. The government system is not made accountable for results in the first place. </div>
<div>
</div>
<div>
Secondly, and most importantly, people in key places are appointed not on the basis of merit, but on the basis of political patronage. New public institutions created to meet the emerging needs of the country become dead on arrival as they are given to head by a person who simply does not have the pre-requisite skills and aptitude. </div>
<div>
</div>
<div>
In a few cases, where results-based accountability measures were introduced, governance has improved. We have also seen remarkable improvements in the delivery of certain agencies when honest and dedicated officers are appointed. It does not require a total overhaul of the system. If we can have just a few key people leading the organisation, it can make a significant difference. Quantifiable accountability measures and a policy of hiring able men and women must be introduced in all government agencies.</div>
<div>
</div>
<div>
Governance is not weak just in the public sector; it is also weak in the private, cooperative and non-governmental sectors. Wherever regulatory agencies are effective, problems have somehow been dealt with. But many areas remain unregulated or regulatory agencies are not simply effective. </div>
<div>
</div>
<div>
The distinction between governance and management is often blurred. If the management is good, governance certainly becomes good. By management we often think of the private sector. But experience shows that the private sector performs well largely under professional management. We often hear real estate sector people ask how banks report rising profits every year when businesses in real estate are not performing well. There are different arguments put forward to criticise the bankers’ style of profit-mongering. This is certainly not the right explanation. The right explanation is that the banking sector in the first place is professionally managed and it is more open. In spite of this, greed on occasions has led some banks to face short-term setbacks.</div>
<div>
</div>
<div>
Most real estate businesses do not use professional management services. To call them privately-held may be a deception. In fact, they are family-held and do not place much trust on professional management. I often get confused whether they make the private sector or whether they are a part of the household sector!</div>
<div>
</div>
<div>
And yet, young students these days choose to pursue management courses in large numbers. It is not just in Kathmandu that there is a craze for Business Colleges - it is everywhere in Nepal. Many colleges under the Tribhuvan University system have reported that in the last five years or so, the departments that offered courses, such as, history, political science, culture, language, and even economics have seen negligible or even zero new enrolment.</div>
<div>
</div>
<div>
Most of those who pursue business administration courses either aim for the financial sector or non-governmental organisations. Interacting with students in the last three years, I have not found a single graduating student keen on manufacturing, hospitality, hydropower or other industries.</div>
<div>
</div>
<div>
Without strengthening these sectors, our expectation for higher and inclusive growth will remain an illusion. It is, therefore, necessary that those who are involved in these sectors introduce professional management in their businesses. It is the absence of professional management perhaps, that Nepali workers admired for their honesty and hard-work all over GCC countries, Malaysia and South Korea, are seen to be troublemakers in our own industries.</div>
<div>
<em>(Khanal is Former Finance Secretary. This opinion was expressed in Newbiz Conclave & Business Excellence Awards Ceremony-2013)</em></div>',
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<strong>--By Rameshore Khanal</strong></div>
<div>
</div>
<div>
There’s not much good that one can talk about in matters related to governance and management in Nepal. People from all walks of life cite political instability, shortage of electricity, labour problems, poor infrastructure, and corruption as major reasons for lackluster growth performance. Dismal economic growth is not the only one feature to lament about. There are others:</div>
<ul>
<li>
53 per cent of the population still does not have piped water supply. Those who have it are not getting safer drinking water either. And we are rich in fresh water reserve.</li>
<li>
64 per cent of the population use fuel-wood as the main source of household energy, whereas another 10.38 per cent use cow-dung or animal waste. Only less than 25 per cent use modern, but not necessarily non-polluting, source of energy.</li>
<li>
Only about 67 per cent of the population has some form of electricity connection for lighting, but the supply remains uncertain during the time it is needed most.</li>
<li>
Nearly 39 per cent of households have toilets.</li>
<li>
There are 15 million working age people (57 per cent of total population) and one-fifth of which are looking for gainful employment in places outside the country. Of the remaining, nearly half are not fully employed.</li>
<li>
Only 20 per cent of the population (5.2 million people) have qualification above SLC level. And this we have achieved in 70 years of holding SLC examinations.</li>
<li>
Last year, 336,000 students failed the SLC examination and each year thousands of such youths undergo the trauma of failure.</li>
</ul>
<div>
There are other indicators that are equally pathetic and we can bring about a change, an improvement only through inclusive and high growth.</div>
<div>
</div>
<div>
But growth cannot be achieved without improving governance. Partly because of political instability and mainly because of our attitude, the government system has not been able to deliver.</div>
<div>
</div>
<div>
Infrastructure projects do not complete in time. The average years it takes to complete an electricity transmission project in Nepal is eight years, while in countries of our ranks it takes barely two years. For the last 14 years we have been talking about the Melamchi Water Project that is yet to quench the thirst and meet the needs of around 4 million people. But the date of completion of the project is uncertain. Power projects that ideally complete in less than five years take a decade to become ready with almost twice the initially estimated cost.</div>
<div>
</div>
<div>
Businessmen particularly and ordinary people in general do not feel secure even as the number of policemen is increasing every year. Young people are taught to extort money from struggling businessmen which is in contravention to what they should be doing. They should in fact be helping the business community so that much needed jobs are created within the country.</div>
<div>
</div>
<div>
People with small industries struggling hard in difficult times just to make a presence in the market face a host of problems from registration offices just because they failed to get a renewal in time. Should a failure to renew a registration in time be subjected to a hefty penalty? A struggling entrepreneur from Butwal called me to express his frustration as he faced this injustice.</div>
<div>
</div>
<div>
Foreign investors wanting to explore and excavate minerals, develop hydropower or set up industries vent our frustration too. The list is long and it can go longer. And this is all because of poor governance. The government system is not made accountable for results in the first place. </div>
<div>
</div>
<div>
Secondly, and most importantly, people in key places are appointed not on the basis of merit, but on the basis of political patronage. New public institutions created to meet the emerging needs of the country become dead on arrival as they are given to head by a person who simply does not have the pre-requisite skills and aptitude. </div>
<div>
</div>
<div>
In a few cases, where results-based accountability measures were introduced, governance has improved. We have also seen remarkable improvements in the delivery of certain agencies when honest and dedicated officers are appointed. It does not require a total overhaul of the system. If we can have just a few key people leading the organisation, it can make a significant difference. Quantifiable accountability measures and a policy of hiring able men and women must be introduced in all government agencies.</div>
<div>
</div>
<div>
Governance is not weak just in the public sector; it is also weak in the private, cooperative and non-governmental sectors. Wherever regulatory agencies are effective, problems have somehow been dealt with. But many areas remain unregulated or regulatory agencies are not simply effective. </div>
<div>
</div>
<div>
The distinction between governance and management is often blurred. If the management is good, governance certainly becomes good. By management we often think of the private sector. But experience shows that the private sector performs well largely under professional management. We often hear real estate sector people ask how banks report rising profits every year when businesses in real estate are not performing well. There are different arguments put forward to criticise the bankers’ style of profit-mongering. This is certainly not the right explanation. The right explanation is that the banking sector in the first place is professionally managed and it is more open. In spite of this, greed on occasions has led some banks to face short-term setbacks.</div>
<div>
</div>
<div>
Most real estate businesses do not use professional management services. To call them privately-held may be a deception. In fact, they are family-held and do not place much trust on professional management. I often get confused whether they make the private sector or whether they are a part of the household sector!</div>
<div>
</div>
<div>
And yet, young students these days choose to pursue management courses in large numbers. It is not just in Kathmandu that there is a craze for Business Colleges - it is everywhere in Nepal. Many colleges under the Tribhuvan University system have reported that in the last five years or so, the departments that offered courses, such as, history, political science, culture, language, and even economics have seen negligible or even zero new enrolment.</div>
<div>
</div>
<div>
Most of those who pursue business administration courses either aim for the financial sector or non-governmental organisations. Interacting with students in the last three years, I have not found a single graduating student keen on manufacturing, hospitality, hydropower or other industries.</div>
<div>
</div>
<div>
Without strengthening these sectors, our expectation for higher and inclusive growth will remain an illusion. It is, therefore, necessary that those who are involved in these sectors introduce professional management in their businesses. It is the absence of professional management perhaps, that Nepali workers admired for their honesty and hard-work all over GCC countries, Malaysia and South Korea, are seen to be troublemakers in our own industries.</div>
<div>
<em>(Khanal is Former Finance Secretary. This opinion was expressed in Newbiz Conclave & Business Excellence Awards Ceremony-2013)</em></div>',
'published' => true,
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<strong>--By Rameshore Khanal</strong></div>
<div>
</div>
<div>
There’s not much good that one can talk about in matters related to governance and management in Nepal. People from all walks of life cite political instability, shortage of electricity, labour problems, poor infrastructure, and corruption as major reasons for lackluster growth performance. Dismal economic growth is not the only one feature to lament about. There are others:</div>
<ul>
<li>
53 per cent of the population still does not have piped water supply. Those who have it are not getting safer drinking water either. And we are rich in fresh water reserve.</li>
<li>
64 per cent of the population use fuel-wood as the main source of household energy, whereas another 10.38 per cent use cow-dung or animal waste. Only less than 25 per cent use modern, but not necessarily non-polluting, source of energy.</li>
<li>
Only about 67 per cent of the population has some form of electricity connection for lighting, but the supply remains uncertain during the time it is needed most.</li>
<li>
Nearly 39 per cent of households have toilets.</li>
<li>
There are 15 million working age people (57 per cent of total population) and one-fifth of which are looking for gainful employment in places outside the country. Of the remaining, nearly half are not fully employed.</li>
<li>
Only 20 per cent of the population (5.2 million people) have qualification above SLC level. And this we have achieved in 70 years of holding SLC examinations.</li>
<li>
Last year, 336,000 students failed the SLC examination and each year thousands of such youths undergo the trauma of failure.</li>
</ul>
<div>
There are other indicators that are equally pathetic and we can bring about a change, an improvement only through inclusive and high growth.</div>
<div>
</div>
<div>
But growth cannot be achieved without improving governance. Partly because of political instability and mainly because of our attitude, the government system has not been able to deliver.</div>
<div>
</div>
<div>
Infrastructure projects do not complete in time. The average years it takes to complete an electricity transmission project in Nepal is eight years, while in countries of our ranks it takes barely two years. For the last 14 years we have been talking about the Melamchi Water Project that is yet to quench the thirst and meet the needs of around 4 million people. But the date of completion of the project is uncertain. Power projects that ideally complete in less than five years take a decade to become ready with almost twice the initially estimated cost.</div>
<div>
</div>
<div>
Businessmen particularly and ordinary people in general do not feel secure even as the number of policemen is increasing every year. Young people are taught to extort money from struggling businessmen which is in contravention to what they should be doing. They should in fact be helping the business community so that much needed jobs are created within the country.</div>
<div>
</div>
<div>
People with small industries struggling hard in difficult times just to make a presence in the market face a host of problems from registration offices just because they failed to get a renewal in time. Should a failure to renew a registration in time be subjected to a hefty penalty? A struggling entrepreneur from Butwal called me to express his frustration as he faced this injustice.</div>
<div>
</div>
<div>
Foreign investors wanting to explore and excavate minerals, develop hydropower or set up industries vent our frustration too. The list is long and it can go longer. And this is all because of poor governance. The government system is not made accountable for results in the first place. </div>
<div>
</div>
<div>
Secondly, and most importantly, people in key places are appointed not on the basis of merit, but on the basis of political patronage. New public institutions created to meet the emerging needs of the country become dead on arrival as they are given to head by a person who simply does not have the pre-requisite skills and aptitude. </div>
<div>
</div>
<div>
In a few cases, where results-based accountability measures were introduced, governance has improved. We have also seen remarkable improvements in the delivery of certain agencies when honest and dedicated officers are appointed. It does not require a total overhaul of the system. If we can have just a few key people leading the organisation, it can make a significant difference. Quantifiable accountability measures and a policy of hiring able men and women must be introduced in all government agencies.</div>
<div>
</div>
<div>
Governance is not weak just in the public sector; it is also weak in the private, cooperative and non-governmental sectors. Wherever regulatory agencies are effective, problems have somehow been dealt with. But many areas remain unregulated or regulatory agencies are not simply effective. </div>
<div>
</div>
<div>
The distinction between governance and management is often blurred. If the management is good, governance certainly becomes good. By management we often think of the private sector. But experience shows that the private sector performs well largely under professional management. We often hear real estate sector people ask how banks report rising profits every year when businesses in real estate are not performing well. There are different arguments put forward to criticise the bankers’ style of profit-mongering. This is certainly not the right explanation. The right explanation is that the banking sector in the first place is professionally managed and it is more open. In spite of this, greed on occasions has led some banks to face short-term setbacks.</div>
<div>
</div>
<div>
Most real estate businesses do not use professional management services. To call them privately-held may be a deception. In fact, they are family-held and do not place much trust on professional management. I often get confused whether they make the private sector or whether they are a part of the household sector!</div>
<div>
</div>
<div>
And yet, young students these days choose to pursue management courses in large numbers. It is not just in Kathmandu that there is a craze for Business Colleges - it is everywhere in Nepal. Many colleges under the Tribhuvan University system have reported that in the last five years or so, the departments that offered courses, such as, history, political science, culture, language, and even economics have seen negligible or even zero new enrolment.</div>
<div>
</div>
<div>
Most of those who pursue business administration courses either aim for the financial sector or non-governmental organisations. Interacting with students in the last three years, I have not found a single graduating student keen on manufacturing, hospitality, hydropower or other industries.</div>
<div>
</div>
<div>
Without strengthening these sectors, our expectation for higher and inclusive growth will remain an illusion. It is, therefore, necessary that those who are involved in these sectors introduce professional management in their businesses. It is the absence of professional management perhaps, that Nepali workers admired for their honesty and hard-work all over GCC countries, Malaysia and South Korea, are seen to be troublemakers in our own industries.</div>
<div>
<em>(Khanal is Former Finance Secretary. This opinion was expressed in Newbiz Conclave & Business Excellence Awards Ceremony-2013)</em></div>',
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<strong>--By Rameshore Khanal</strong></div>
<div>
</div>
<div>
There’s not much good that one can talk about in matters related to governance and management in Nepal. People from all walks of life cite political instability, shortage of electricity, labour problems, poor infrastructure, and corruption as major reasons for lackluster growth performance. Dismal economic growth is not the only one feature to lament about. There are others:</div>
<ul>
<li>
53 per cent of the population still does not have piped water supply. Those who have it are not getting safer drinking water either. And we are rich in fresh water reserve.</li>
<li>
64 per cent of the population use fuel-wood as the main source of household energy, whereas another 10.38 per cent use cow-dung or animal waste. Only less than 25 per cent use modern, but not necessarily non-polluting, source of energy.</li>
<li>
Only about 67 per cent of the population has some form of electricity connection for lighting, but the supply remains uncertain during the time it is needed most.</li>
<li>
Nearly 39 per cent of households have toilets.</li>
<li>
There are 15 million working age people (57 per cent of total population) and one-fifth of which are looking for gainful employment in places outside the country. Of the remaining, nearly half are not fully employed.</li>
<li>
Only 20 per cent of the population (5.2 million people) have qualification above SLC level. And this we have achieved in 70 years of holding SLC examinations.</li>
<li>
Last year, 336,000 students failed the SLC examination and each year thousands of such youths undergo the trauma of failure.</li>
</ul>
<div>
There are other indicators that are equally pathetic and we can bring about a change, an improvement only through inclusive and high growth.</div>
<div>
</div>
<div>
But growth cannot be achieved without improving governance. Partly because of political instability and mainly because of our attitude, the government system has not been able to deliver.</div>
<div>
</div>
<div>
Infrastructure projects do not complete in time. The average years it takes to complete an electricity transmission project in Nepal is eight years, while in countries of our ranks it takes barely two years. For the last 14 years we have been talking about the Melamchi Water Project that is yet to quench the thirst and meet the needs of around 4 million people. But the date of completion of the project is uncertain. Power projects that ideally complete in less than five years take a decade to become ready with almost twice the initially estimated cost.</div>
<div>
</div>
<div>
Businessmen particularly and ordinary people in general do not feel secure even as the number of policemen is increasing every year. Young people are taught to extort money from struggling businessmen which is in contravention to what they should be doing. They should in fact be helping the business community so that much needed jobs are created within the country.</div>
<div>
</div>
<div>
People with small industries struggling hard in difficult times just to make a presence in the market face a host of problems from registration offices just because they failed to get a renewal in time. Should a failure to renew a registration in time be subjected to a hefty penalty? A struggling entrepreneur from Butwal called me to express his frustration as he faced this injustice.</div>
<div>
</div>
<div>
Foreign investors wanting to explore and excavate minerals, develop hydropower or set up industries vent our frustration too. The list is long and it can go longer. And this is all because of poor governance. The government system is not made accountable for results in the first place. </div>
<div>
</div>
<div>
Secondly, and most importantly, people in key places are appointed not on the basis of merit, but on the basis of political patronage. New public institutions created to meet the emerging needs of the country become dead on arrival as they are given to head by a person who simply does not have the pre-requisite skills and aptitude. </div>
<div>
</div>
<div>
In a few cases, where results-based accountability measures were introduced, governance has improved. We have also seen remarkable improvements in the delivery of certain agencies when honest and dedicated officers are appointed. It does not require a total overhaul of the system. If we can have just a few key people leading the organisation, it can make a significant difference. Quantifiable accountability measures and a policy of hiring able men and women must be introduced in all government agencies.</div>
<div>
</div>
<div>
Governance is not weak just in the public sector; it is also weak in the private, cooperative and non-governmental sectors. Wherever regulatory agencies are effective, problems have somehow been dealt with. But many areas remain unregulated or regulatory agencies are not simply effective. </div>
<div>
</div>
<div>
The distinction between governance and management is often blurred. If the management is good, governance certainly becomes good. By management we often think of the private sector. But experience shows that the private sector performs well largely under professional management. We often hear real estate sector people ask how banks report rising profits every year when businesses in real estate are not performing well. There are different arguments put forward to criticise the bankers’ style of profit-mongering. This is certainly not the right explanation. The right explanation is that the banking sector in the first place is professionally managed and it is more open. In spite of this, greed on occasions has led some banks to face short-term setbacks.</div>
<div>
</div>
<div>
Most real estate businesses do not use professional management services. To call them privately-held may be a deception. In fact, they are family-held and do not place much trust on professional management. I often get confused whether they make the private sector or whether they are a part of the household sector!</div>
<div>
</div>
<div>
And yet, young students these days choose to pursue management courses in large numbers. It is not just in Kathmandu that there is a craze for Business Colleges - it is everywhere in Nepal. Many colleges under the Tribhuvan University system have reported that in the last five years or so, the departments that offered courses, such as, history, political science, culture, language, and even economics have seen negligible or even zero new enrolment.</div>
<div>
</div>
<div>
Most of those who pursue business administration courses either aim for the financial sector or non-governmental organisations. Interacting with students in the last three years, I have not found a single graduating student keen on manufacturing, hospitality, hydropower or other industries.</div>
<div>
</div>
<div>
Without strengthening these sectors, our expectation for higher and inclusive growth will remain an illusion. It is, therefore, necessary that those who are involved in these sectors introduce professional management in their businesses. It is the absence of professional management perhaps, that Nepali workers admired for their honesty and hard-work all over GCC countries, Malaysia and South Korea, are seen to be troublemakers in our own industries.</div>
<div>
<em>(Khanal is Former Finance Secretary. This opinion was expressed in Newbiz Conclave & Business Excellence Awards Ceremony-2013)</em></div>',
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