Opportunity for Nepal as Landlocked Country

Landlocked countries have innumerable trade difficulties; Nepal as a“yam between two boulders” has also been facing lots of problems while trade with India. Nepal has lots of vulnerable economic characteristics like higher cost of business,poor competitiveness of the economy, weak export bases, weak infrastructure, imperfect markets and political instability etc. 

Since 1921 AD, lots of legally binding agreements were made between developed nations, transit countries and landlocked countries. Legal arrangements had made to secure the rights of the landlocked states over the marine resource which is common “heritage of mankind”. Despite these provisions lots of challenges landlocked country has to bear while trading with other nations. Nepal is one landlocked among forty eight in the world. But, now its time transform this challenge into opportunity being the "transit country" of big economics/emerging markets i.e India and China. It must have to be the area of concern to policymakers and political leaders to grab this opportunity. For that proper diplomatic balance and resolution of internal problems are essential. 

There are hordes of challenges to Nepal such as : Poor reliability and poor infrastructure, less FDI, Poor governance and accounting practice,weakness in domestic banking, lack of swap market for Nepali currency, logistical limitations, lack of investments in manufacturing sector, poor implementation of property rights, decreasing agricultural production, climate change risks, political uncertainty etc. Nepali policymakers and leaders have to focus on investment, development and maintenance of infrastructure, enhancement trade-productive capacities, value addition, diversification, global value chains, Enhance trade in services and human and institutional capacity building, regional integration, mitigate and build resilience to climate change, desertification, and economic shocks etc.

Another major concern must be maintenance of balanced and fruitful economic diplomacy to gain from emerging economic powers. Big markets are at doorsteps. To produce opportunities from this inescapable non-coastal reality, Nepal has to create conducive environment for transit facilitation between India and China. Some facilitation include freedom of transit (including security of vehicles), Fuller integration of economy into regional and multilateral trading, encouragement of business competition, modernization of roads and communications, upgrading of infrastructure, scientific custom handling procedures etc.

Participation in international trade by land-locked developing countries is crucial for their future development. One notion should not have to forget by all nations, policymakers, political leaders that “Developed are already developed (USA,UK), Opportunities lies in developing and emerging economics (India,China) and  least developed nations(Nepal) must have to create advantage from emerging markets”. Nepal as located between India and China can be vibrant bridge between them.