The cost of corruption: How it impacts the Economy of Nepal?
Corruption simply refers to the misuse of power for their personal gain whereas Anti-corruption is those act that opposes or inhibits the corruption. Corruption can have significant and detrimental effects on an economy of Nepal. According to the CPI rank 2022, Nepal take place of 110th most corrupt country among 180 in the world with the CPI score of 34. Its impact can manifest in various ways, ultimately hampering economic growth, development, and overall well-being. Corruption has a high effect on government, business, institutions and as well as Economy. It creates an environment where economy decisions are based on bribery rather than merit, leading to reduce economy output.
Somehow, in Nepal, corruption may
raise the cost of doing business as company may be forced to pay bribe to sign
the contract or permit which again leads to increase the expenses and reduce
the profit margins. Corruption among public servants has always existed in one
form or other although Its shape, dimension, textures and shade have been
changing from time to time.
In Nepal, many people wanted to
start their own business, but they could not, it is all because the big and
successful business uses the political power and with the help of corruption,
they easily dominate the small and startup business.
For example,
basically in Nepal, Nepal government spend a huge amount of total budget every
year on the name of various projects all around the country, but the bitter
truth is that only 20%-30% of budget is utilized in that project whereas 30% is
invested in contractors' profit and remaining amount is enjoyed by various
ministers and officers.
Again, let’s take another example;
So, in Nepal there are tons of scandals that has been caused as a result of
corruption. Every now and then we are introduced to new scandals and scam
caused due to corruption. Some of the famous scandals were NCELL scandal where
the tentative amount was 37 billion Swiss bank scam 52 billion and recent case
that happened was 100 kg gold smuggling at the Tribhuvan international airport.
From the very past, China has also
been investing more and more on Nepal’s infrastructure. According to the
report, China has become a main player in Nepal’s economy. Recently, China
invested a huge loan of USD 215 million to Nepal for the construction of
Pokhara international airport and there are concern about China’s “debt-trap
diplomacy” to Nepal.
Nepal is known as the country of agriculture and tourism, and the economy of country is largely based upon them with the agriculture employing over 65%-70%. Agriculture plays vital role in Nepal’s economy as.
- It contributes to GDP.
- Provides employment to the farmers.
- Helps to maintain good environment, and many more.
As we all know, Nepal is one of the least developed countries in the world where many of the people are dependent upon the imported goods and products. The recent data shows that the Nepal’s expenses is way higher than the revenue, this clearly shows that we are spending more money than earning.
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