Oct 22, 2013

How to increase foreign direct investment in Nepal?

Foreign Direct Investment (FDI) is being recognized as one of the key drivers of rapid economic growth and prosperity around the world. Cases of China, India and many other South East Asian nations show that attracting foreign direct investment and sustaining it can lead to unprecedented economic prosperity catapulting developing countries into middle-income countries. During the economic reforms of early 1990s, our policy-makers had enough sense to open  up the economy and open doors for foreign investment. However, the process of economic reforms has stalled since long ago. Although foreign direct investment is on the rise, the growth is miles away from satisfactory.

This paper on foreign direct investment written by my colleagues at Samriddhi, The Prosperity Foundation under the guidance of Dr. Bhola Nath Chalise looks at what is the current scenario of foreign direct investment in Nepal, what hurdles are preventing its growth and what the second generation of reforms would look life for attracting more foreign investment in Nepal.  Please check it out and provide us with your comments and feedback.