1 CONSTITUTION AND ECONOMIC MODELS FOR THE REPUBLIC OF NEPAL

Transformation from feudalism to full fledged liberal democracy is proving a very difficult transition despite very successful election for the Constituent Assembly and declaration of the Republic of Nepal on May 28, 2008. New constitution should promote politics of reconciliation based on broader national interest removing the possibilities of conflicts based on narrow party centred non-ideological ethnic and regional interests. Game of cooperation, coexistence and tolerance should be a nature rather than compulsion forced by the lack of a clear majority of any political party in the CA in the Republic of Nepal. Economic plans and programmes based on more scientific modelling for all households, regions and ethnic groups and entrepreneurs in a more decentralised and efficient dynamic market economy only can fulfil aspiration of those eleven million voters. Unflinching commitment of political and economic participants on grow Nepal contract based on more farsighted dynamic equilibrium models or on game theories or in macroeconomic models that can track the past and project the future more accurately should be norms in decision making. Speedy rate of growth with redistribution to alleviate poverty should be the top agenda of new constitution that will truly open Nepal’s way for advancement in the 21st century more competitively together with her neighbours China and India in coming years