Government blames corruption and crony capitalism for weak economy

Calls for broad structural reforms to improve growth and jobs. Economist says report is routine and superficial.

The government has said Nepal's economy is caught in an unproductive cycle due to policy corruption, gains from licensing and contracting through informal channels and influence, and crony capitalism. As a result, state–market relations are shaped more by access and influence than entrepreneurship, competition and innovation, pushing the economy into its current state.