The big push

In recent years, Nepal has been among the countries to have taken the greatest strides in improving human development. According to the Human Development Index, a composite measure that takes into consideration health, education and income, Nepal has shown more rapid progress as compared to other late developers.  

This improvement can be attributed to improvements in the areas of education and mainly healthcare.  While incomes have also increased over the years, the rise has been only marginal when considered in real terms.  

Despite the rapid advances Nepal has made in the areas of health and education, it is worth bearing in mind these advances have been made from a very low base. The lack of social infrastructure still has huge consequences for the Nepalese economy. While much still remains to be done in the area of healthcare services, they have improved dramatically in Nepal over the last three decades. In the education sector, on the other hand, the improvements have been sporadic and concentrated in the urban sectors.  

Adult literacy in Nepal today stands at around just 60 percent, thus highlighting that while significant improvements have been made, they only tend to mask all the work that is still unfinished. Thus far, the social sector has been the primary catalyst for the improvements seen in Nepal in the education sector. NGOs, charities, donor countries and multilateral institutions among others have been instrumental in supporting the development of the education sector in Nepal.  

The government itself has been too preoccupied over the last twenty years with first trying to establish a democracy, then dealing with the Maoists, and then plotting the end of the Monarchy, to now finally squabbling over the new constitution and the structure of the state. The development agenda has pretty much been outsourced to the non-government sector. And it does not help matters that the state just does not have enough money to invest as much as it should.  

The time is now right for the private sector to make investments in the education sector. There just aren’t enough schools in the country; teacher-student rations are too low; the quality of education being imparted leaves a lot to be desired; education is not easily accessible to many living in rural Nepal; the surrounding infrastructure has not been adequately developed.  

There is a massive demand for education that can only be met through private investments building schools and vocational training schools. Second, the demand for education is relative inelastic and constant, presenting opportunities for the private sector to generate a return.  

On the other hand, the government needs to focus more extensively on the education sector as more and better education brings both direct as well as follow-on effects, whose benefits are accrued over years. Education will increase the employability of Nepal’s youth and it will allow industries and companies to find the talent they seek. Moreover, it will lay the foundation for greater economic development in the country. It is therefore essential for the government to promote investments in education. 

The private sector should undertake the setting up of new schools and other infrastructure that schools may need. The private sector can also play a key role in scaling up educational institutions that have been set up by various charities and non-government organisations.  

The numbers looking to get educated will only increase as incomes in the country rise. Not only will people want to study, but those studying will want to study longer. Currently, Nepal does not have the social infrastructure to support the aspirations of so many students. If it is to meet requirements, it must act swiftly to incentivise the private sector to invest in education. That is a big push the Nepalese economy can do with.

 

(This was a column published in The Himalayan Times on 28 July 2013)