Sushil Darnal
Kathmandu, June 23: Dr. Swarnim Wagle, Deputy Chairperson of the Rastriya Swatantra Party (RSP), represents Tanahun Constituency No. 1 in the House of Representatives. After a long political career in the Nepali Congress, he joined RSP during the by-elections of 2023. An economist with a PhD, lawmaker Dr Wagle is recognized as an expert in Nepal’s economic sector. He had already served as Vice-Chairman of the National Planning Commission.
Below is an edited excerpt of an interview with Dr Wagle, focusing on existing parliamentary practice, constitution implementation and amendment, and the country’s economic development.
How do you assess the current economic situation of the country?
The economy has not expanded due to a lack of good governance. The government has presented a budget of around Rs 20 kharba. Had our economic growth rate from 1991 been consistent, we could have presented a budget of Rs 40 kharba today. Currently, our economy stands at Rs 61 kharba, but ideally, it should have been around Rs 130 kharb.
We have heard a much dissatisfaction with a Rs 20 kharba budget. Inside and outside parliament, there are complaints that budget allocations are limited to just 4–5 districts. The root cause is that we are fighting over a small pie. If the budget were Rs 40 kharba, such squabbles wouldn’t occur. Hence, we always say that good governance is the first condition for economic growth. If we had facilitated an investment-friendly environment, the economy would have expanded.
How can we make Nepal economically prosperous?
To make the country economically self-reliant, we need clear policies, clean intentions, vision, and capability. The policies must be correct, intentions must be pure, and the capability to implement must exist. Often we know what needs to be done, but not how to do it. If we genuinely want to strengthen our economy, there are five sectors where we can focus our efforts:
- Digitalization
Being a landlocked country, many of our activities are more efficiently and competitively handled by countries like India. We need to focus on sectors where distance and weight are not disadvantages — which means moving towards a service-oriented and digital economy. - Clean Energy
We have abundant water resources. We should utilize these for domestic electrification and industrialization based on clean energy. We should engage in energy trade with India and Bangladesh. There is significant potential for additional revenue here, but domestic consumption and production should remain the priority. - Green Industrialization
We can connect this to regional production networks. This requires a clear vision, strong political will, and a well-planned approach. - Tourism
We should move towards high-value tourism. Despite the beauty of Nepal, our formal foreign exchange earnings from tourism stand at only USD 600 million — which is equivalent to just 20 days of remittance inflows. With 1 million annual tourist arrivals, this sector has immense potential to strengthen the national economy. - Agriculture
We’ve always called Nepal an agricultural country. I remember when agriculture contributed 60–70% to GDP, now it has fallen to 24%. Many farmlands lie fallow. If we can link agriculture with high-value chains and invest in it while connecting it to markets and technology, it can significantly contribute to the economy.
How do you assess the country’s parliamentary practice?
We follow a parliamentary system inspired by the UK’s Westminster model, with some modifications. Proportional representation covers almost 40%. In multiparty systems like those in the UK, India, and Nepal, parties dominate the process. MPs face pressures from both the discipline of Parliament and their party’s whip. Balancing these pressures is often difficult for many MPs.
How do you view the implementation of the Constitution?
The history of Nepal’s constitution goes back to the times of Prithvi Narayan Shah and Jung Bahadur Rana, with the modern era beginning with Padma Shumsher’s constitution, followed by various phases of democracy, Panchayat, and the 1991 constitution. The current constitution has some fundamental strengths — it emphasizes meaningful equality and federalism and is overall progressive. However, its implementation has not progressed as it should have. Certain inclusive provisions have been manipulated, and federal and local government powers have been encroached upon by the federal government.
What is your view on constitutional amendment?
The current constitution is the product of a long struggle by the Nepali people. We respect the constitution’s framework and are not calling for its replacement. It should be refined and improved within a democratic process. The constitution itself contains provisions for amendments. Contentious issues can be resolved through public referendums. We believe there is room for significant improvement.
One key issue for us is moving towards a directly elected executive system. The Prime Minister and ministers should not be elected from among MPs. Instead, a directly elected Prime Minister should be allowed to form a Cabinet of no more than 15 experts.
It is said that your party’s stance on federalism is unclear — what do you say to that?
Currently, there are 884 MPs — 550 at the provincial level. We believe this is excessive. If the country adopts a directly elected executive at the federal level, the provinces should follow suit, with directly elected Chief Ministers forming small Cabinets of 4–5 experts. Similarly, the size of the National Assembly is unnecessarily large. A smaller, inclusive National Assembly of about 35 members would suffice, also reducing the financial burden on the country.
Some portray us as being against federalism, but that is wrong. The current provincial setup has failed to deliver. We should retain the identity of seven provinces, but limit their role to coordination. Also, the number of local units (currently 753) should be reduced to under 500. Provincial structures have merely copied the federal model, adding unnecessary costs. For example, there’s no need for each province to have its own Public Service Commission or Planning Commission. #nepal #swarnim #economy #parliament #constitution #federalism #rss
