Economic Development

Introduction

Development is positive changes in living standard. Development is a continuous and collective process and the aspects of development includes economic, social, political and human.

Development is quantitative and quantitative changes in the living standard of common people. The elements of development includes education, health, drinking water, social justice, employment, and development of other resources. Three sector has great importance in economic development...government sector, private sector and cooperative sector.

There is meaningful participation of all these three sector in economic development.

Economic Growth vs Economic Development:

The increment in the productivity by changing the means of production during particular period(year) is called as economic growth. GDP indicates the same growth of the country in a year.
On the other hand economic development is the positive changes in quantitative and qualitative development is called economic development. Living standard of people indicates economic development.
So economic growth may not necessarily guarantee economic development.

World economy
There exist three economy in whole world:
Capitalist Economy
Socialist Economy and
Mixed Economy

In capitalist economy the role of private sector is more. Government has less intervention on private sector in capitalist economy . For example just have look on the US economy.
On the contrast in socialist economy government holds the authority of economy. The government intervention is relatively higher than capitalist economy. Soviet union is the example of socialist economy.
Now coming to third type of economy, mixed economy. Well this was first introduced by prof. JM kyens after the great depression of 1930. This concept reveals the participation of both private sector as well as government sector in the economic activity of the nation.

In 1970 the concept of economic liberalisation came into the picture this concept was developed by Margaret Thatcher and Ronald ragon. This concept is all about implementing policy, act and other required law for economic development. World bank and IMF played important role through their point on economic development.

Economic liberalisation of Nepal:
Though it was partial Nepal entered into economic liberalisation with the establishment of Nepal Arab Bank in BS 2042. After the political transition in 2046BS, Nepal entered in to economic liberalisation fully.

The flow of the development impacted relatively as nation went into Civil War initiated by Maoists in 2052BS. It continued for more than 10 year before peace agreement was signed.

Role of public sector in development process :
Government has great role in public sector. How public sector contribute in development process, following are given few way:
1) By creating long lasting policy and plan and effective implementation of those into action.
2) Creating an investment friendly environment by ensuring social justice and good governance.
3) By creating more job at public sector.
4) By bearing social and financial responsibility

Role of private sector in development process:
Private sector is another important sector in the development process of an country. It contributes in the national economy by creating job opportunity through the utilization of domestic resources. Government put less restrictions on private sector in the capitalist economy. It can be the strategy for the government in the process of economic development. Following way private sector can contribute to the growth of the economy...
1) By creating business environment, establishment of industry and promoting trade through production of goods and services.
2) By creating job opportunities.
3) Private sector can contribute through PPP(public private partnership) in the development of resources.
4) By paying tax to the government and helping to maintain social justice in the economy.
5) Competition always favors consumer. Private sector has great role in creating competition in the market which ensure the quality and standards if good and services.

Role of cooperative sector in development process:
Cooperative movement began in Nepal since 2010BS after establishment of cooperative Department. Got recognized by law after the approval of public cooperative act in 2016 BS. The work of cooperative sector seem to begin from the establishment of cooperative organization in bhakhanpur, chitwan on 2013BS, Chaitra 20.

Cooperative sector is a pillar of economic development with following additional role for the country:

1.Self entrepreneur organization
2.Welfare of member. Social unification.
3.Real coordination

Cooperative sector are established as the powerful medium to aid in national economy by uniting the labour, skills, technology, and capital and to build a prosperous society by cultural change.
More than 10% contribution of cooperative in total financial transaction of the country.

Conclusion:

Nepal with mixed economy system needs to focus on all these three sector.Targeted goal can only be possible if there is a proper balance between public sector and private Sector. Government needs to focus on those sector where public investment is less in compare to private sector for example tourism sector. Cooperative sector has same significans in reducing poverty.