The Brief: Pallavi Roy on the Competitiveness and Capabilities of SMEs in Nepal

EP. Br#009

To get an in-depth understanding of the Political Settlements Framework mentioned in this episode, please listen to EP. Br#008 - The Brief: Mushtaq Khan on Madhesh and the Challenge of Inclusive Federalism in Nepal - A Political Settlements Framework Analysis.

In collaboration with SoAS school of London, PEI conducted a targeted survey of 352 SMEs in the tourism, agriculture, and light manufacturing sector across Bagmati Province, Madhesh Province, Lumbini Province, and Karnali Province. Out of the 352 surveys, 200 (56.8%) were conducted in Bagmati, 49 (13.9%) in Madhesh, 71 (20.2%) in Lumbini, and 30 (8.5%) in Karnali. This survey on SMEs was conducted to understand the characteristics of SMEs in Nepal better and support the diagnosis of the process of economic transformations in Nepal, especially in the post-federalism context. The core of the research is based on the Political Settlements framework, which is applied to assess the distribution of capabilities.

In this episode, PEI colleague Shreeya Rana sits with Dr. Pallavi Roy, where the two discuss the role of SMEs in accelerating inclusive economic growth, the organizational capabilities that SMEs should develop in order to expand their competitive base, the policy options that decisions makers should keep in mind while targeting economic growth, and how firms with low, competitive base tend to collude with politicians when they are forced to comply with regulations. They also talk about some of the relevant findings from the SOAS and PEI  jointly-implemented survey as part of the larger study on federalism through the application of the framework of the Political settlement, a framework we discussed in our last episode.

Dr. Pallavi Roy is a Reader in International Economics at the Centre for International Studies and Diplomacy at SOAS University of London. Her research focuses on applying institutional economics and, in particular, the political settlements framework to problems of industrial policy, anti-corruption, commodity markets, the political economy of clientelism, and economic development. She is also the joint lead for the Research and Evidence on Nepal’s Transition project, a four-year research implemented by SOAS, Yale University, Governance Lab, and PEI.