Synopsis
The general premise of the presentation is that cluster-based potentials can be harnessed through collaborative efforts among cities in proximity. It focuses on CCED related experiences of Nepal. It briefly describes urbanization trend in Nepal; and presents viable city regions and economic corridors. It dwells on their competitiveness in terms of their driving sectors and clustered economies. It shows how Kathmandu region developed as a vibrant cluster despite the government’s attempt to deconcentrate its activities. It highlights the relevance of CCED approach in changing Nepal’s comparative advantages into competitive advantages. It suggests for trans-boundary collaboration in the application of CCED in eastern Terai.
Cities of Nepal have distinct comparative advantages in cultural tourism, services, crafts, and agro-processing; but they have not been able to turn them into competitive advantages. Nepal needs to foster the sustainable growth of its urban regions, and enhance the competitiveness of strategic urban clusters in such lead activities. This will help to unleash urban-based growth and shape the spatial transformation in a sustainable way.
Nepal had a long experience in regional development strategies based on growth centres and rural-urban linkage studies. The country has five development regions, each divided into its ecological zones: mountain, hills and the terai, making the total number of regions 15. Of them, central hill and terai, eastern terai and western hill have more than three fourth of the total urban population. The potential growth corridors are:
▪ Bhairahawa-Butwal-Pokhara
▪ Janakpur-Birgunj-Hetauda-Kathmandu Valley
▪ Biratnagar-Itahari-Dharan-Dhankuta
Kathmandu Valley is the only region where competitiveness is showing the attributes of industrial linkages, cluster development and collective risk sharing. It has utilized its comparative advantages in the form of cultural heritage and tourist potential, crafts and agglomerative economies in enhancing its competitiveness. Due to clustering of different activities mainly through the presence of government as the principal buyer, its economy is flourishing.
Despite strategic location and potentials, Biratnagar is relatively stagnating at present. The influence of Kathamndu on it is relatively less. It is identified as the major regional economic centre. Its economy is going to be transformed with the implementation of projects like airport extension, ring road construction, Special Economic Zone, Dryport, Integrated Check Point and Railway. It is likely to have a boost up in the public sector as well. Trans-boundary collaborative efforts will help to unlock its potentials.
Nepal’s experiences show that it is a futile exercise to try to link regions having no economic connections with a number of so-called urban economic centres. Cities should be encouraged to expand their regions, and form collaborative and thicker corridors that integrate more and more space into an integrated economy. Expansion of city regions and widening of corridors joining city regions will help to enhance the competitiveness of cities.