Boost Technology Transfer
Technology is one of the key drivers of development. The innovation of new scientific knowledge and technology has facilitated the agriculture, industrial and digital revolution, bringing qualitative changes to the life of people. The development of nations is largely determined by how advanced technology they employ in construction works, governance matters, economic transactions and communication system. Modern transportation system and expansion of internet has accelerated the process of globalisation. In a similar manner, globalisation has also spurred the technological diffusion. Now technology transfer is an important component in bilateral and multilateral cooperation. It has enhanced the productivity level in both developed and developing nations. It has boosted the innovation, research, development and patents in the recipient nations, contributing to their economic growth and foreign trade.
The technology transfer occurs through the means of capital goods, labour movements, foreign direct investment, and technology licensing, among others. As technological diffusion enables to transfer the scientific knowledge and inventions into new products and services, it is natural for the developing and least developed nations to expect that the donors and developed countries make technology transfer as an integral part of direct investment, aid, loan and grant schemes. This is because it increases the competitiveness of companies and overall economy of recipient nations. The other day, Finance Minister Janardan Sharma asked the Asian Development Bank (ADB) to support Nepal by investing along with introduction of new technologies available in the global market. While addressing a country portfolio review meeting of ADB-funded projects being implemented in Nepal, Minister Sharma has insisted that cross-cutting technology helps complete the development projects within the stipulated time, avoiding the extra time and costs.
Minister Sharma’s request for technology transfer is not otherwise given that the ADB has been providing technological assistance (TA) to developing member countries (DMCs) for the preparation, financing and execution of development projects and programmes to enhance their capacities and utilise their development resources. According to the ADB, it provides two types of TA- transaction TA (TRTA) and knowledge and support TA (KSTA). TRTA facilitates to prepare and implement the ADB-financed projects. Under it, the lending agency intends to provides policy advice and develop capacity as well as a specific public-private partnership project. On the other hand, KSTA is related to the capacity development, policy advice, R & D and formulation of strategies and development plans.
ADB is one of the major donors supporting Nepal in its development endeavours since 1969. The multilateral donor has provided about US$7.3 billion in financial and technical assistance to the country. It has assisted in the field of infrastructure, water supply, energy, transport, agriculture, natural resources and rural development, education, earthquake reconstruction, finance and support for COVID-19 vaccine procurement this year. According to the news report of this daily, ADB’s operation in Nepal is growing. As of 2021 end, ADB’s active portfolio to the country stands at around US$3.4 billion with 30 investment projects. However, the donor and host country should make sure that the projects are completed in time and they are able to repay the loans. It should identify and invest in those projects that are in the needs and priorities of nation and beneficial to the people. At the same time, officials from the Ministry of Finance and ADB should develop mechanism to ascertain and address the risks and shortcomings of the projects.