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.