Promoting Economic Literacy in Nepal

Annual 62 Billion Drained and 37 Billion Received By Hom Nath Gaire The latest studies show that the Illicit Financial Flows (IFF) drained from Nepal in an average has exceeds the Official Development Assistance (ODA) grant received by Nepal. A report published by Global Financial Integrity (GFI), a US longtime authority on financial crime, reveals Rs 62 billion has been drained from Nepal annually during the period of 2002 to 2011 in the form of IFF. In the mean time, the record with Ministry of Finance (MoF) shows Nepal has just received Rs 37 billion annually for the same period in the form of ODA grant. According to these statistics, in an average Nepal has been losing net Rs 25 billion annually. This net outflow of money is more than 5 percent of Gross Domestic Product (GDP) of Nepal in constant price. During the period, the capital flight from Nepal has been increased by an annual average growth rate of 15.64 percent. In 2010, a record high Rs 155 billion currency...

Richest  Countries Poor in Anti Money Laundering : Reports     By Hom Nath Gaire A landmark report published last week by the Paris-based Organization for Economic Co-operation and Development (OECD) found that the richest countries in the world are failing to comply with Anti-Money Laundering and Counter Terrorist Financing (AML/CTF) Regimes. The   OECD study entitled “Measuring OECD Responses to Illicit Financial Flows from Developing Countries” was published just one week after Global Financial Integrity (GFI), a US longtime authority on financial crime, released its   annual update on illicit financial outflows   from the developing world. The study documented that the developed countries are highly responsible for steady increase in illicit financial flows from developing countries, most of which is being absorbed in the developed countries. For a long time, the traditional view in the developed countries was that illegal capital flight, money ...

Nepal’s private sector, as evidences show, is shying away from its major responsibilities and becoming much like NGOs. The current situation is such that the private sector is acting like nonprofits or as a project implementing body. Popular perception is that our private sector lacks innovative approaches and entrepreneurial mindset. Recently, me and my friend Siromani Dhungana did a story on the recent trend of private sector engaging in appeasing donors for projects instead of being involved in businesses. I want the news to speak and help you readers make a judgment about our private sector: Donor Dependency  Aid orientation has been the evident among Nepal’s private sector organizations as they are hell bent on bagging projects from donor agencies to carry out activities for their own welfare and day to day activities. Sometimes, their horse race of getting projects appears to be ‘unhealthy’. Here are some examples: 1.      USAID Nepal Eco...