EDITORIAL

Economics is based on the production, consumption, and transfer of wealth, either in capitalism, socialism, or communism. Capitalism is based on an individual’s profit-making mentality, however, in socialism, the government takes care of the social upliftment, discouraging an individual’s profit-making mentality. We saw many ups and downs in the free market economy. Time and again, we have faced the worst stage of the global economic recession which has gone beyond our control. 

Xinhua is the Chinese news agency owned by the Communist Party of China (CPC). This is the mouthpiece of the CPC, which rules in China. Therefore, we believe, this is an authentic agency of the Chinese government. The agency recently unveiled a research report coinciding with the 5th World Media Summit in Guangzhou, South China, shedding light on China's practice of a new development format that underscores the symbiotic relationship between humanities and economy. The report, titled "The Humanomics in the New Era," was released by New China Research (NCR), the think tank under Xinhua. Structured into seven parts, it offers an overview of China's new development format focusing on a people-centered approach and the integrated development of culture and economy in the process of advancing Chinese modernization.

The Communist Party of China, along with its people, has persistently expanded the Chinese path to modernization on the new journey of the new era. China is progressing toward high-quality development as it pursues the symbiotic interaction of humanities and economy, creating a new model for human advancement and attaining globally acclaimed achievements, said Fu Hua, president of Xinhua, while unveiling the research report.

Humanomics aims at curbing anomalies experienced in the free-market economy prioritizing government investments in economic activities. Today, China has emerged as the second-largest economy and heading towards becoming the largest economy. In the process of economic prosperity, China has never undermined its responsibility to uplift the deprived and backward society. In the recent era, China has been able to overcome poverty, which remained a major challenge for the Chinese leadership for decades. It became possible due to the vision of “socialism with the Chinese characteristics”. 

Nepal is passing through a very crucial phase in the process of adopting economic policies. Earlier, the country practised a mixed economy based on Nepali characteristics. The mixed economic policy adopted good characteristics of both capitalism and socialism and it helped to transform the country into an industrial nation from a traditional agricultural country. It helped provide employment opportunities to the citizens and also helped to substitute imports with local products and earn revenue from local production. 

Later, under Western influence, the country adopted the free market economy, from which, finally, Nepal turned into a consumer country that totally relied on imports. Today, the country is facing different types of challenges, including the alarm of a debt trap, widening trade deficit, scarcity of capital to invest in the infrastructural sector, and failure to meet the revenue target. The problem is that if the country fails to collect revenue from the imported goods, the government revenue will decline. This is a trade trap as the country cannot discourage imports and encourage local products. If we want to rescue our economy, we must think about the "Humanomics in the New Era," that is adopted by China.