Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010Still, experience elsewhere suggests it is not recommended to target investments in more than three to fivesectors on a pro-active basis. Hence, choices will need to be made to allocate scarce resources towards thosesectors that offer the highest opportunity and impact in the short term, based on robust research.Capacity to Carry out Investment PromotionThere is very limited capacity and experience available in Nepal in the area of professional and pro-activeinvestment promotion. A capacity development programme will be required to address this critical issue. Itshould focus on the following three areas: First, a capacity-building programme will be needed for the new IPI staff to develop the skills andcompetencies, systems, tools, and procedures necessary to support the IPI in developing and deliveringa strategy. It should provide management and staff training, systems development, and hands-oncoaching on investment generation initiatives; Second, capacity building among other relevant government staff will be needed. Given the importantrole to be played by certain government departments, such as the Foreign Investment Section and theIndustry Facilitation Section and others, these departments should be included in the wider capacitybuildingprogramme involving both staff and managers. This would develop a broader understandingof foreign investment and investment promotion, including investor facilitation skills; and, Third, online promotion capabilities are to be developed and expanded involving a new NepalInvestment Promotion website. The website would present a wider range of investor-focusedinformation, including sector-specific information for the adopted target sectors, as well as being aneffective marketing window for the SEZs.5.4 Policy Advocacy in NepalOn the policy advocacy side, GoN and the private sector counterparts are keen to utilize public private dialogue(PPD) mechanism in the form of a Nepal Business Forum. The NBF is to address investment climate issues,including sector-specific issues, through structured and result-oriented roundtables and working groups.The NBF approach is a promising departure from past experience where cooperation between the privatesector and the government lacked effectiveness due to weak sustainability, fragmentation, poor monitoringof tangible results, and insufficient institutionalization.Effective institutionalization of PPD will maximize opportunities to directly impact the investment climate andthus investment and trade flows. One key characteristic of successful investment promotion programmesis the Government’s commitment to investment climate improvement and the presence of effective PPD atmacro or meso/sector level. PPD is the process through which investment climate obstacles and issues aresystematically raised and addressed by public and private sector representatives. In post-conflict countries,the need for a vibrant PPD arises from the need to address the deterioration in the business environment andstimulate business and economic activity.The Nepal Business Forum has now been proposed and endorsed by both the Government and the privatesector. The NBF has the potential to offer existing investors a strong tool to provide feedback to theGovernment, and to help it unlock the country’s full investment and trade potential.NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT157