Bhusal, Bhishma Kumar
English // ISSN: 2254-3767 // Keywords: sustainable development, competitiveness, gree-led growth, low-income economies, Nepal
Description
A Neo-classical trade-led growth model, supported by rapid technological advancement and the
WTO regime was instrumental to achieving higher growth and prosperity during the last few
decades; however, it could not cope with new challenges such as environmental degradation,
inequality, social disharmony, and poor quality of life. The adoption of a Green growth approach
is gaining momentum to overcome these issues. Since two thirds of world production is traded,
trade should also be competitive, inclusive and environmentally sustainable within a green
growth regime. Through an extensive review of trade and competitiveness theories, human
development, and environmental sustainability literature, a set of 'adaptive strategies' are
explored that incorporate elements of competitiveness, inclusiveness, and sustainability in the
trade sphere. A 'Green Box System Framework of Adaptive Strategies for trade-led green growth
transition' has been developed which explains how those strategies may facilitate a trade-led
green growth transition when catalysed by a number of policy instruments/incentives. The
applicability of those strategies in a low-income economy has been tested in the Nepalese
context with some executive interviews at both the policy and firm levels.
