Answer:
The Nepal Development Update is produced annually with two main aims: to report on key economic developments over the preceding months, placing them in a longer term and global perspective; and to examine (in the Special Focus section) topics of particular policy significance. The Update is intended for a wide audience including policymakers, business leaders, the community of analysts and professionals engaged in economic debates, and the general public.
Explanation:
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For Nepal to achieve its export potential, six key priorities need to be tackled. First, Nepal will need to reform the tourism sector to meet the expected changes to demand and preferences, following the pandemic. A quick and resilient recovery of the sector could come about through investments to improve planning, conservation, and resilient infrastructure. It would also entail coordination with the private sector to upgrade skills and develop nature-based tourism that is environmentally sustainable, with potential to support jobs creation and inclusive growth. Second, to attract FDI, crucial for integration into regional and global value chains, it will be important to simplify and streamline processes for multinationals setting shop in Nepal, as well as actively engage in economic diplomacy to attract FDI. Third, modernizing export promotion will require links to digitization, simplification of processes, skills development, and incentives for exporters. Fourth, a reduction of trade costs will be critical, particularly given the country’s landlocked location and the mountainous terrain. This would entail reducing border crossing congestion through upgraded infrastructure and streamlined procedures and processes. Similarly, reducing import duties – particularly on raw materials and intermediates – is crucial to ensure exporters have access to the most efficient inputs at world prices. Fifth, investments to improve phytosanitary infrastructure will be needed for increased standards and safety of exports. Sixth, measures to boost digital trade, and e-commerce in general – could potentially be a game changer for Nepal – through adopting a robust policy framework. This would include, inter alia, efficient domestic and cross-border digital payment systems, and consumer protection and data privacy regulations aligned with international good practices.
