“Think globally, act locally”, these days I come across this quote many a time. Many people are taking it as a Guru Mantra for their business expansion some with a view of merger acquisition some with the view of disintegration.
Today’s world is a world of competition, not locally but globally. Much country can’t experience this charm of global competitiveness thinking out of box, compromising of global consortium, global networking and most of all global succession in international arena.
Developing countries like Nepal, looking at global inward FDI we see a minimal percentage or no, the reason may be many. Banking in this generation has attracted many youths, so is the case in Nepal, there are 31 commercial banks and 67 development banks, which looking for size of a country is too many.
I have negative opinion towards many banks being good for the country. Return may gear up for the banking sectors but the citizens are not active in the economy. We can see tight investment in the economy, leaving small investors due to insecurity or high risk or any other. The explanation of the banking sector can be made by, for instance, if a customer deposits RS.1000 in a bank than the money is mobilized by banking sector. In this scenario, banks plays proactive role whereas we find citizen passive. This does not show positive sign in the long run of the economy. So passive citizen is not good for the economy.
Apart from that, when we look at Nepal’s export structure the country is dominated by the export rather than imports which leads to trade deficit of the country. So the country cannot support to its national economy. BOP is another issue for Nepali export. Moreover, looking at the exchange rate system, it is more than pathetic. The money value is decreasing day by day.
Moreover artificial money in the context of Nepal is very high. The huge credit creation by the bank on the mortgage of land had dramatically attained in the unhealthy creation of artificial wealth. When we look at the R and D expenses of Nepal economy it is just dirt when we compare to the minimum investment in international scenario.
Giving logical conclusion to all this issue is the must for the government. Ironically saying, Nepal is in its primitive stage in the industrial sector. Pointing out to the business houses of Nepal, it can focus on service sectors, hydro power and tourism. This can be a well combat by the Nepali market in the international ground.
Today’s world is a world of competition, not locally but globally. Much country can’t experience this charm of global competitiveness thinking out of box, compromising of global consortium, global networking and most of all global succession in international arena.
Developing countries like Nepal, looking at global inward FDI we see a minimal percentage or no, the reason may be many. Banking in this generation has attracted many youths, so is the case in Nepal, there are 31 commercial banks and 67 development banks, which looking for size of a country is too many.
I have negative opinion towards many banks being good for the country. Return may gear up for the banking sectors but the citizens are not active in the economy. We can see tight investment in the economy, leaving small investors due to insecurity or high risk or any other. The explanation of the banking sector can be made by, for instance, if a customer deposits RS.1000 in a bank than the money is mobilized by banking sector. In this scenario, banks plays proactive role whereas we find citizen passive. This does not show positive sign in the long run of the economy. So passive citizen is not good for the economy.
Apart from that, when we look at Nepal’s export structure the country is dominated by the export rather than imports which leads to trade deficit of the country. So the country cannot support to its national economy. BOP is another issue for Nepali export. Moreover, looking at the exchange rate system, it is more than pathetic. The money value is decreasing day by day.
Moreover artificial money in the context of Nepal is very high. The huge credit creation by the bank on the mortgage of land had dramatically attained in the unhealthy creation of artificial wealth. When we look at the R and D expenses of Nepal economy it is just dirt when we compare to the minimum investment in international scenario.
Giving logical conclusion to all this issue is the must for the government. Ironically saying, Nepal is in its primitive stage in the industrial sector. Pointing out to the business houses of Nepal, it can focus on service sectors, hydro power and tourism. This can be a well combat by the Nepali market in the international ground.
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