The country needs to devise a policy that strikes a balance between economic self-sufficiency and economic liberalisation, economists have said.

Trade diversification, proper and efficient use of the resources and effective management to minimise the impacts of internal and external shocks are essential to achieve economic self-sufficiency, they said during a book launch programme organised by the Central Department of Economics (Cedecon) of the Tribhuvan University on Friday.

The department launched a book titled ‘Political Economy of Nepal’, which analysed the achievements that Nepal has made since the country embraced economic liberalisation policies. The book includes articles written by various experts in economics and political sectors.

Ram Prasad Gyanwaly, head of Cedecon, said the department is trying to shed light on economic self-reliance and economic interdependence within the border framework of market economy through the book. According to Gyanwaly, the book also focuses on policies that the country should frame to achieve said targets.

The country has benefited from open market policy adopted in the early 1990s.

But the progress has been achieved at a high social cost, experts said. Also, there were other pitfalls such as widening trade deficit, high corruption and high reliance on remittance.

“This calls for an intensive discourse on ways to achieve economic self-sufficiency without undermining the role of globalisation,” Gyanwaly said.

Former finance minister Ram Sharan Mahat said free market economy is not the panacea for rapid economic development. “Free market economy can deliver best results only if there are political stability, peace and robust infrastructure,” he said. “Also, the private sector, non-governmental organisations, cooperatives and communities have to play effective roles.”

Former vice-chairman of the National Planning Commission and former governor of the Nepal Rastra Bank Yubaraj Khatiwada said inefficient utilisation of resources has prevented the country from ensuring food, energy, health and jobs security.

“We need to conduct an in-depth analysis on effectiveness of government’s

policies,” Khatiwada said.

Former finance minister Surendra Pandey stressed on the need to devise policies based on the country’s geopolitical specialties. “Policies should be made to promote investment in strategic infrastructure that will ensure generation of maximum number of jobs,” Pandey said.