the HRM
The nation is repeatedly debilitated by poor governance and mismanagement. The recent floods and landslides starkly exposed this issue, highlighting the dysfunction of the three tiers of government, which were nowhere to be seen as people died in buried vehicles on vital highways, while floods and inundations caused massive losses of life and property, even in the capital city.
It was a nightmare for those who survived the floods and landslides but lost their homes, crops and livestock. According to Nepal Police, the disaster claimed 236 lives, injured 173, and left 19 people missing. The torrential rainfall of September 27-28, 2024, not only exposed the country’s lack of disaster preparedness but also sent a clear message: the nation cannot progress without a significant overhaul in governance and management.
It is often said that when a house is on fire, it is futile to start digging a well. Yet this was precisely the case after the inundation, with responsible agencies admitting that boats and life jackets were inadequate. The National Disaster Risk Reduction and Management Authority (NDRRMA), responsible for managing rescue equipment, had conducted drills several times for emergency rescues. However, when faced with a real crisis, they failed to provide the necessary equipment, worsening the damage and loss.
Additionally, the country’s vital road networks were blocked by the devastation caused by floods and landslides. Yet, the government could not evacuate vehicles stranded for more than 3-4 days due to the lack of road repairs and maintenance.
With lifelines obstructed, the supply of essential goods was disrupted. Traders began black-marketing, creating artificial shortages, and public transportation became unpredictable and full of hassles.
This situation has left people feeling abandoned by the government, which seems incapable of providing the care its citizens need. Poor governance inevitably leads to poor management, a reality unfolding in Nepal.
“Governance and management have a strong and positive correlation, they complement each other,” said Bhuvan Dahal, a former banker and financial sector analyst.
In essence, good governance sets the strategic direction, while effective management ensures that resources and operations align with this strategy. For instance, policymakers establish national development plans (governance), and managers in various ministries execute projects to realise that vision.
Dahal added that the executors should be managers, yet government authorities are becoming increasingly ineffective, driven by a preoccupation with wielding power rather than managing effectively.
Without strong governance, management becomes directionless and inconsistent. Similarly, poor management can obstruct the implementation of good governance policies, which is why there must be a dual approach to improving both governance and management simultaneously.
Former Chief Secretary of the Government of Nepal, Dr Bimal Koirala, stated that the government, its apparatus, stakeholders and service recipients should collectively construct public policy and citizen-centric service delivery mechanisms, implementing them together to create synergies.
Work in progress, but no results
On the other hand, there is a glaring lack of result-oriented delivery in public institutions, with no one held responsible or accountable for failing to complete their assigned tasks. Policies and programmes are announced but not implemented, and no one takes ownership. For example, the government has been executing National Pride Projects, yet out of 24, only four have been completed, and none, except for the Upper Tamakoshi Hydroelectric Project, are fully operational despite billions of rupees being invested. The Melamchi Water Supply Project, for instance, remains shut for three months each year due to flood and mudslide risks, and there have been no commercial flights from Pokhara and Gautam Buddha International Airports to date.
Ad hoc decision-making and mismanagement can severely undermine a country’s development and stability. Sri Lanka, despite massive infrastructure investments, fell into a debt trap as it failed to service its debts due to investing in unviable and low-return-on-investment (ROI) projects. When decisions are made without proper planning, coordination, or expertise, inefficiencies, wasted resources and poor outcomes inevitably follow, with negative consequences.
Madhu Kumar Marasini, Secretary of the National Planning Commission – the country’s apex planning body – has noted that road connectivity expanded to the hills and mountains often functions as evacuation routes due to rampant migration. “We have provided road access to the hills but due to a lack of economic opportunities and youth reluctance to explore local prospects, these infrastructures have only facilitated migration,” he said. “We need to reverse this trend and create opportunities in the hills to retain people.”
However, these infrastructure projects are stalled due to inefficiency and lack of accountability. Projects meant to propel the economy remain perpetually ‘work in progress’.
“Our focus is on enhancing capital expenditure, particularly by completing nearly finished projects, alongside budgetary reforms to improve efficiency, strengthen macroeconomic stability, boost domestic productivity and create jobs,” said Professor Dr Shiva Raj Adhikari, Vice Chairperson of National Planning Commission.
Inefficiency permeates all sectors
Whether it’s education, health, transport, water supply or digital infrastructure, quality and standards are consistently compromised. While electricity supply and financial services are functioning satisfactorily, inefficiency and ad hocism plague every other sector. As a result, people are leaving the country in search of better opportunities. Data shows that more than 2.5 million people have left Nepal for foreign employment or higher studies in the last three years.
Experts have analysed the situation through the lens of a failing or failed state. Poor governance and mismanagement have led to law-and-order volatility, sluggish economic growth and investments that fail to foster development. Inflation is rising, the poor are becoming poorer, the rule of law is unreliable and people are deprived of basic amenities guaranteed by the constitution. Young people, in particular, are increasingly disinclined to stay in the country, citing misgovernance and rampant corruption as key factors behind their frustration.
According to Noam Chomsky, four of the seven traits mentioned above are hallmarks of a failed state. “Nepal ranks in the lower decile and quartile in world governance indicators, corruption perception indexes and enterprise surveys. This illustrates the dismal state of governance in the country,” said Dr Koirala. “A large portion of the economically active population is moving abroad. Had the country worked on providing basic amenities, the situation wouldn’t be as dire as it is now.”
Consequences
In such situations, institutions become more fragile and politically motivated. The ongoing exodus reflects the public’s fading trust in these institutions. Political instability and the manipulation of every institution for political gain have deviated them from their objectives, allowing anarchism to take deep root.
“The prerequisite for good governance is accountability. Unfortunately, the accountability of elected officials to the people is weak, which has led to increased irresponsiveness. Decision-making lacks transparency and the people’s ‘right to know’ is almost nonexistent,” remarked Dr Koirala. “Participation is limited to political cadres and the rule of law has been severely downgraded. In this environment, the government must take the risk of introducing sweeping reforms, no matter the cost. However, the coalition government is more focused on protecting its position than pursuing reforms.”
The country cannot progress under such conditions and something worse may occur if corrective actions are not taken promptly.
Nepal is currently grappling with economic instability. There is little to stabilise or drive the country’s economy apart from remittances. Any disruption in foreign employment destinations could lead the country toward chaos, as it is already dealing with high inflation, unemployment and social inequality.
Corruption, nepotism and partiality based on political ideology, caste and religion are rampant. Decisions are made to appease political masters or for personal gain, rather than for the public good, which has eroded public trust in the government and its institutions. Dr Koirala warns that such a situation could lead to civil unrest or disengagement from civic duties, such as voting. Voter turnout has decreased over the years, as people no longer trust the electoral process as a means of expressing their dissatisfaction.
Against this backdrop, Nepal is losing its standing on global forums and failing to achieve the long-term development goals set for the new millennium.
Way Forward
Good governance, transparency and long-term strategic planning are key to addressing these issues and ensuring sustainable national growth. Nepal must adopt best management practices (BMPs), which have proven effective in fostering progress across various sectors, from economic development to governance and social welfare. BMPs are essential for promoting efficiency, accountability and long-term sustainability.
Countries that have adopted BMPs are at the top of the development ladder. Singapore, for example, is known for its long-term strategic planning, transparent government and pro-business policies, which helped it transform from a developing nation to a high-income economy within a few decades.
Similarly, Germany, with its strong industrial base, emphasis on vocational training, and commitment to environmental sustainability, is a leading economy in Europe and among the most developed nations.
Five decades ago, Nepal and South Korea were in a similar economic position. However, through a combination of strong government policies, investment in education and technological innovation, South Korea has leaped from poverty to become one of the world’s most advanced economies.
Scandinavian countries are also credited with adopting BMPs. These nations have excelled in governance, social welfare, sustainability and innovation, offering high standards of living while maintaining competitive economies. According to former Secretary Krishna Gyawali, adopting and continuously refining BMPs can provide the foundation for sustained progress and resilience in a country.
To change the status quo, experts have suggested to focus on the following
Strategic Planning and Policy Making
Long-term Vision: Successful nations craft and adhere to well-thought-out long-term plans that target key sectors like infrastructure, education, healthcare and innovation. These plans are typically driven by measurable objectives.
Evidence-Based Policy Making: Policies are developed based on research, data and consultations with experts, ensuring decisions are grounded in real-world evidence and best practices.
Strong Institutions
Rule of Law: A just and efficient legal system holds individuals and institutions accountable, ensuring transparency and reducing corruption.
Independent Regulatory Bodies: Independent institutions overseeing various sectors, such as banking and healthcare, ensure fairness, efficiency and consistent growth.
Good Governance and Accountability
Transparency: Openness in government operations – such as publishing budgets, policies and results – builds trust and allows citizens to hold their government accountable.
Corruption Control: Nations with effective anti-corruption mechanisms tend to see stronger economic performance and more reliable public services.
Investing in Human Capital
Education and Skill Development Training: Progressive countries make significant investments in education and vocational training, equipping their workforce to meet the demands of modern economies.
Healthcare: Access to quality healthcare boosts productivity and improves quality of life, contributing to long-term national advancement.
Technology and Innovation
Embracing Technology: Nations that encourage technological innovation and digitalisation often experience rapid economic growth. This includes promoting research and development (R&D) and fostering an environment where innovation thrives.
Digital Governance: Efficient countries leverage digital tools to streamline government services, cut bureaucracy and improve public service delivery.
Public-Private Partnerships
Collaboration with Private Sector: Best management practices frequently involve collaboration between the public and private sectors, combining the private sector’s efficiency with public benefits.
Efficient Infrastructure Development: Countries that engage the private sector in infrastructure projects often see better delivery, maintenance and innovation in their development efforts.
Sustainability and Environmental Management
Green Policies: Forward-looking nations integrate sustainability into their development strategies, promoting renewable energy, conservation and environmentally friendly policies that ensure long-term prosperity.
Resource Management: Responsible and sustainable management of natural resources can prevent the kind of issues that often arise in poorly managed economies.
Social Inclusion and Equity
Reducing Inequality: Nations that emphasise inclusive development and actively work to reduce economic and social disparities tend to experience more stable growth. This includes ensuring equal access to education, healthcare and economic opportunities.
Strong Social Safety Nets: Providing safety nets such as unemployment benefits, healthcare and pensions helps cushion citizens during hard times, promoting social stability and trust in governance.
Why Good Governance and Management Are Prerequisites for a Country’s Overall Development
Good governance sets the strategic direction, while effective management ensures that resources and operations align with this strategy. Without strong governance, management becomes directionless or inconsistent. Conversely, poor management can prevent governance policies from being properly implemented.
Accountability and Transparency:
Governance establishes accountability frameworks, including rules for transparency and ethical standards. Management ensures adherence to these rules in daily operations.
Effective governance holds managers accountable for their performance, while good management practices enable transparent reporting to governing bodies, ensuring accountability to stakeholders.
Decision-Making Processes:
Governance involves making high-level decisions on policy, direction and resource allocation. Management focuses on operational decisions to execute these policies effectively.
A strong connection between the two is vital to avoid a gap between strategic decisions and their practical implementation.
Risk Management:
Governance creates a framework for managing risks to safeguard stakeholder interests in any organisation, institution or nation. Management implements these risk control measures in daily operations.
Effective governance ensures management identifies risks, mitigates them and reports back to governing bodies for review and adjustment of strategies as needed.
Resource Efficiency:
Governance sets guidelines for resource allocation and ethical use, while management ensures that financial, human and physical resources are used efficiently to meet organisational objectives.
Good governance provides clear guidelines for resource use, while strong management ensures resources are not wasted and achieve the intended outcomes of governance policies.
Innovation and Adaptation:
Governance fosters a culture of innovation by creating frameworks that encourage continuous improvement, while management is responsible for implementing and operationalising innovation.
For example, in government, governance might focus on policy innovation like digital transformation, while management develops and implements programmes to adopt new technologies in public services.
‘Governance reforms should be constant’
Suman Prasad Sharma, Former Secretary, Government of Nepal
Every nation has the ambition to develop, prosper and ensure the well-being of its people. To achieve this ambition, which we call a vision, continuous governance reform is essential. Designing policies and programmes aligned with this vision, alongside time-bound implementation, is critical to realising these goals. Once the direction is set, execution largely depends on our managerial skills. Government resources must be efficiently mobilised to create synergy. However, delivering results is no easy task. It requires collaborative and coordinated efforts. Leadership, in this context, demands high-level skills, managerial efficiency, determination and passion.
Take, for example, the response to recent disasters. Although response mechanisms were in place, they were not activated, reportedly awaiting instructions from the Cabinet. Given the nature of such situations, these mechanisms should have been activated immediately and authorities should have been empowered with the necessary decision-making rights. Had this been the case, losses could have been minimised. Recovery and rehabilitation could follow necessary instructions but the rights and responsibilities must be aligned with the urgency of the situation. This approach applies to development works as well, provided the necessary prerequisites are in place.
The inherent challenge lies in the lacklustre approach and insular mindset prevalent across sectors. Just as disaster response requires actions on a war footing, a similar approach is needed across all areas of public service. The state must develop the skills and efficiency to operate in a mission mode, fostering high hopes and trust among citizens.
‘Effective implementation of reward and punishment mechanism can change the landscape’
Bhuvan Dahal, Former Banker/Management Professional
We don’t need to do much to improve public services. I was initially in government service but left due to low pay. I believe that government officials are competent, possessing a wealth of knowledge and experience that should be further enhanced through skill and capacity development training. However, the key issue is low pay, which is often cited as a lack of motivation.
If the government leadership wants to make a meaningful intervention, salaries and perks must be adjusted fairly. In addition, government staff, starting from the officer level, could be appointed to the boards of public schools, colleges and hospitals. It should be mandatory for them to send their children to public schools and colleges and to use public hospitals for treatment. This would create a strong quality control mechanism. Offering them free education and healthcare would also serve as a significant incentive.
I base these views on my experience in both the public and private sectors. Most importantly, just as in the private sector, goals and responsibilities should be set for government employees, with regular monitoring. This approach would be instrumental in controlling corruption and ensuring result-oriented delivery.
