Proto-Nationalism Entrapped in Musical Chair Circle of Political Party and Floundering Economy
ASIA--PACIFIC, 21 Jul 2025
Kedar Neupane - TRANSCEND Media Service
Part-2: Lost in the Rhetorical Mirage of Middle-Income Aspirations Without a Sustainable Economic Security Foundation. (Continued from Part-1)
Nepal Entrapped by Super-Nationalism: A Costly Illusion Without Pragmatic Transformation.
17 Jul 2025 – Nepal desperately needs a bold and realistic development vision transformation for long-term economic prosperity. The opportunities brought by globalization over the last few decades were monumental. Yet, Nepal failed to strategically reposition itself. Instead of leveraging its geographic unique location between India and China, two of the world’s largest and fastest growing economies, the country remained paralyzed by indecisiveness, party bickering and outdated economic thinking, and absence of critical innovation matching the aspirations of population.
In today’s interconnected market economy, clinging to outdated notions of super-nationalism and ultra-patriotism is not only delusional, but also self-defeating. Emerging economies, India, China, Indonesia, Brazil, Ethiopia, Rwanda, Thailand, Philippines, Malaysia, and Vietnam, for example, have embraced pragmatic economic strategies that prioritize competitiveness, and regional collaboration.
In contrast, Nepal’s economy protectionism, justified under the illusion of nationalism, has only served to alienate capital investors and restrict rapid economic growth. Rhetoric cannot substitute for quality for public policy. Pride without economic prosperity is like beating an empty vessel and like a hallucination.
National Security Begins with Food Sovereignty: A Forgotten Foundation
Life in a secure nation begins with food sovereignty. Yet today, Nepal imports all essential food staples and petroleum products from India. Policy-making leadership is passive despite the rising dependency. This is profoundly alarming. Meanwhile, millions of young Nepalis continue to toll in the informal sector or seek work abroad, both legally and illegally, in search of the livelihoods their own country fails to provide.
Out-migration has become tragically normalized. Rural communities are hollowed out, with daily departures forming a grim routine. The diaspora now forms a third of the broader Nepali identity, a demographic shift that reflects national despair more than global opportunity.
Missed Economic Alignment with Global Trends and Youth Disillusionment
Nepal must urgently rethink its economic policy, especially in the context of its young population, which constitute more than 56% of the nation. Super-nationalism, when reduced to shallow slogans, stifles the aspirations and entrepreneurial and creative spirit of the young generation.
The investment environment is incoherent and out-of-tune with national priorities, marred by inconsistencies, and unable to foster either investor or consumer confidence. When economic nationalism becomes a routine political sound-beat, it does not lift the population out of poverty. It isolates the country in an increasingly interconnected world.
During the peak of globalization, over one billion people escaped extreme poverty, led by China and India. ASEAN and BRICS countries successfully harnessed market reforms, private investment, and global trade flows. In 2024, BRICS’ accounted for 35% of global GDP, surpassing the G-7’s, a tectonic shift in global economics, unprecedented in economic history.
By contrast, countries like Nepal, Zimbabwe, Cuba, Venezuela, North Korea, and Eritrea, have remained economically marginalized, stuck in inward-looking ideologies and irrelevant political dogmas of the time. These countries have failed to improve the quality and well-being of citizens’ lives.
The Cold War is Over – So Should Be the Mindset
The Cold War era may have justified ideological nationalism. But the world changed dramatically after the fall of the Berlin Wall in 1980 and the disintegration of the USSR. Economic blocs like the EU, ASEAN, BRICS, NAFTA, MERCOSUR, and RCEP emerged. China rapidly became the manufacturing world’s hub, while India led digital innovation in knowledge economy. These nations created vast new wealth through knowledge economies, defining global economic power shifts. New digital hubs evolved swiftly away from the Global North – unprecedented in economic history. Yet, Nepal stood economically marginalized, paralyzed by Cold War mentalities and leadership inertia. Others evolved and scaled up while Nepal remained stuck in old narratives.
China functions like a capitalist economic under a centralized leadership, without policy disruptions and appears providing socio-economic stability at best. Being pragmatic India revamped its foreign policy of non-alignment with strategic autonomy, and it has elevated its international profile.
The global center of economic gravity has shifted to Asia and the Global South. China functions like a capitalist economy and created wealth immensely, under centralized leadership and without economic policy disruptions, and extreme poverty is eliminated. India, through strategic independence, modernized its non-aligned policies, and pushing forward with economic and structural reforms. Nepal, however, has failed to act with similar clarity with courage.
Political Economy in Disarray: When Rhetoric Replaces Strategy
Nepal’s political elite has repeatedly failed to develop a coherent and realistic economic roadmap. The much-hyped foreign investment summits organized by the successive governments have produced little beyond empty headlines. The lack of credibility and sustainable policy direction has only deepened investor skepticism.
In a multi-polar world business-as-usual based on out-of-context narratives are not conducive for attracting foreign investment. The policy-making process urgently needs critical thinking that supports innovation, entrepreneurship, and growth models of inclusive prosperity.
Irreverent nationalist rhetoric cannot attract foreign capital. If economic nationalism did not work before, why would it succeed now? Without a clear shift toward inclusive, entrepreneurial, and market-oriented growth, Nepal’s economic future remains bleak. Political super-nationalism rhetoric and illusionary dreams of republicanism do not resonate with the daily struggles of ordinary citizens. People want economic prosperity linked with high quality of living and well-being, not ideology. They want quality education, health, sustainable income, and security, not political theater.
Moving Forward: Some Practical Steps for Transformation
To address Nepal’s stagnation, comprehensive structural reforms are needed. Change must begin with governance and education, laying the groundwork for an innovative-driven economy with ethical political governance and overhauling outdated education to nurture critical thinking approaches. Key pillars of transformation include:
- Foster entrepreneurship and innovation: Providing platforms for startups, tech ventures, and youth-led enterprises.
- Invest in robust infrastructure and dependable energy: Prioritize reliable energy and transport and supply-chain systems to attract long-term investment.
- Create a transparent efficient investment climate: Streamline bureaucratic processes and offer policy stability to domestic and foreign investors.
- Support small and medium enterprises: Enable small and medium enterprises through better access to finance, training, and technology.
- Eradicate red tape, corruption, and political impunity.
- Embed Critical Thinking in Education: Redesign curricula at all levels to promote critical analysis, creativity, and problem solving.
- Combat Corruption and Impunity: Strengthen rule of law and ensure accountability across government institutions.
- Consolidate and simplify all fragmented foreign investment laws into a single document without rhetoric by demonstrating the government’s determination of improved work and investment environment.
Regional Cooperation Must Deliver Real Economic Gains and Public Trust
Nepal’s participation in initiatives like the Belt and Road Initiative, SAFTA, and BIMSTEC is a good start. However, these institutions must deliver tangible results for ordinary people, not just diplomatic photo ops or news headline projects. Trade must not be driven by politics alone. Economic integration with neighbors should prioritize value chains, job creation, and export competitiveness.
Nepal must rebuild public institutions. Ethical governance and rule-based policy are fundamentals to improved international perception, increased capital investments in the pathways to inclusive growth and development. This demands genuine commitment, not only from politicians, but also from the private sector, business community, civil society, and the international diaspora.
True nationalism is not about slogans and rhetoric; it is about delivering tangible results. Without economic prosperity, neither nationalism nor democracy has meaning for the people. The time for rhetorically replicated dreams is over. Nepal must now pursue a new era of realism, responsibility, and reform national institutions and public policy.
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Kedar Neupane is a founding, executive board member of the Nepal Policy Institute, an independent think-tank , a retired senior UN official, and president of ‘We for Nepal’ association based in Geneva, Switzerland where he lives. He has worked in several countries in Africa, the Middle East, Asia and Europe in his 38 years of service with the UN system and was Senior Change Management Advisor to UN High Commissioner for Refugees. Views expressed are his personal analysis and do not represent of institutions. neupanek1950@gmail.com
Tags: Nepal, South Asia
This article originally appeared on Transcend Media Service (TMS) on 21 Jul 2025.
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