Voters' Education And Current State Of Affairs

C. D. Bhatta

In this piece, I am putting down some of the empirical thoughts on the current state of affairs that came into limelight during the course of my field visits to different parts of the country as part of voters' education and civic rights programme. The programme was organised by Friedrich Ebert Stiftung (FES), a German think tank in Kathmandu, with the help of the German Ministry of Foreign Affairs.

Respect for others

The overarching aim of the voters' education programme was to train and educate the local people on contemporary political issues such as civic rights, democracy, constituent assembly (CA) election, current state of affairs and trickle down of knowledge to the grass root level. The central logic of this programme was to lay emphasis on the fact that democracy only works when it promotes local situations, local values based on social justice and solidarity, and there is a balance between two types of rules - written and unwritten - of society.

Equally important is the culture of respecting others (opposition parties) that play a great role in expanding the democratic sphere. It is because, in a democracy, every opposition of today moves into the helm of power tomorrow, and every party that is in power today might have to sit in the opposition bench tomorrow. This means democracy cannot be owned by a particular party for a long time but can only be rented for sometime. Likewise, democracy is all about sharing the burden of each other, that is, those in a society having a broader shoulder have a responsibility to carry those who have smaller shoulders. Dev Raj Dahal, a noted political scientist, is of the view that the decision to hold the constituent assembly election in Nepal has made Nepalese politics open-ended. There is increased citizens' participation in state affairs, but the state has or is not in a position to develop its own capacity to guarantee participation.

Political power has been transformed from the king to the eight political parties, but within this 'power transformation', neither is there intergenerational justice nor is transformation felt by the citizenry at large. Today various types of transformations are taking place in the Nepali society. For example, transformation in discourse (loktantra vs. prajatantra, ganatantra vs inclusive democracy); transformation in the political parties, that is, the rise of ultra communists forces; transformation in the actors, that is, the rise of political leaders of various ideologies and suspension of the king; transformation in subjects, that is, from a unitary to a federal system of governance; and transformation in procedure, that is, promulgation of the interim constitution and initiative to hold the election to the Constituent Assembly to write a new constitution. Having said this, however, there is no clear agenda before the state as to what type of state and system of governance we really want to have at the end of the day. We talk about 'state restructuring', but it is still not clear as how we want to go about and what type of restructuring would work best for us. Merely playing with words by producing various types of political terminologies without any scientific justification is creating more confusion than resolving problems.

Principally, the main purpose of the state is to protect the weak in a society from the strong and that of politics is to address underlying problems of the society by engaging people in the institutional life of the state. Moreover, the state has a duty to maintain public order in a society, and politics should bring about changes in a society. The main logic of democratic politics, therefore, is to initiate dialogue, search for a common agreement and provide alternatives (choices) so that diverse societal demands/interests could be met. However, there is a deadlock in Nepali politics, which is apolitical. A great deal of conflict exists between the state and societal forces. The result of this conflict is that the parliament has been stalled for more than a month, interim constitution has been receiving the wrath of the opposition from different sections of society, and it had to be amended within 35 days of its promulgation. The amendment of the constitution on an installment basis does not necessarily herald a prosperous political future for the country.

We have signed a comprehensive peace accord, but conflict residues are still prevalent in society. Different types of societal groups are forming critical masses, and the state has not been able to play the role of 'state' due to which it is losing internal sovereignty to various non-state-actors. The best part of the April uprising was that the citizens have been given their rights, but there is no efficient mechanism to ensure these rights. In a sense, no attempt has been made to make the state machinery strong and prosperous so that they can meet the challenge generated by these rights.This has resulted in the erosion in the capacity of the state in different arenas - erosion in policy (no sovereign policy), erosion in state authority (rise of the non-state actors), and increase in competitive violence (rule of might). Because of these factors, the state is not in a position to fulfil the main duties of the state - protect the weak, resolve conflicts, maintain sovereign policies, including foreign, and deliver public goods.

Harmony

Against this backdrop, the challenge for the Nepali state is how best to reconcile harmony between all the conflicting ideas, concepts, norms and values without undermining the spirit of the age. An attempt should move towards providing political legitimacy to the achievement of the people's movement and constitutional legitimacy to the interim constitution in order to move the political process ahead.

Source: The Rising Nepal, June 1, 2007

Enhance Autonomy

Minister of Local Development Dev Prasad Gurung has stressed on strengthening the autonomy of the local bodies to make service delivery reliable and effective. Speaking at a programme organised by the Kathmandu Metropolitan Corporation on Tuesday, Minister Gurung pointed out that since the local bodies worked closely with the people, the role of local institutions should be made more relevant and stronger to enhance local democracy and development. Referring to new kinds of challenges faced by the municipalities due to urbanisation and unplanned settlement, Minister Gurung emphasised on the need to enact new laws consistent with contemporary social requirements and emerging challenges. As outlined by Minister Gurung, the interim constitution has given proper recognition to the instrumentality of the local bodies for strengthening local democracy and peace.

It is, therefore, incumbent upon the present government to assure that the provision relating to local government is implemented. Similarly, as people are heaving a sigh of relief due to the evolving peace in the country, the local bodies should take special note regarding development projects in congruence with the local needs and demands. The incomplete development projects for different reasons in the past should be completed without incurring any delays. However, it is worrying to note that the local government staff have not been able to operate in some parts of the country. Besides the inherent technical and institutional problems hampering the performance of the local bodies, some terror groups have intimidated the people and presented obstacles in their functioning. The government should be serious enough to ensure that the law and order situation is maintained properly and the local bodies are allowed to operate without any disturbances. Moreover, as required by the interim constitution, an all-party political mechanism should be established in the local bodies to ensure that local democracy starts functioning smoothly. Unless the local bodies are based on democratic values and deliver services appropriately, it is difficult to cater to the aspirations of the people.

Source: The Rising Nepal, May 31, 2007

Reforms In Education

MINISTER for Education and Sports Pradeep Nepal has underlined the need for keeping universities and academic institutions free from political influence so that they can genuinely engage in academic activities. Speaking at an interaction programme organised by Pokhara University Teachers' Association in Pokhara on Monday, Minister Nepal called upon all, including the political parties, their sister organisations and others, not to carry out activities that exert unnecessary pressure and disturb the teaching and learning activities. The remarks and request of the minister are very significant, coming as it does at a time when the universities and academic institutions have become a victim of political pressure. The universities were without heads and responsible authorities for almost one year due to political reasons as the political parties wanted their appointees as heads and other office bearers of the universities. Thus, the universities and other such institutions were severely affected. This practice must end as a new culture must evolve in order to develop academic institutions as truly independent institutions. Against this background, there is need for change in the mentality of the political parties. At the same time, total reform in the education system is also the need of the hour - right from the pre-primary level to higher education.

Considering this need, the Ministry of Education is mulling change in the organisational structure of the entire education system. At present there are four tires of school education - pre-primary, primary, secondary and higher secondary. The government is planning to have just three tiers in school education. Besides, the government has also taken some other important decisions, which are likely to have a far-reaching impact on the education sector, if they are to be strictly implemented in accordance with the inherent spirit of the change. So far decisions in the education sector have been taken on an ad hoc basis. With the change of government, the policies in the education sector have also changed. As a result, the quality of Nepal's education has been under serious scrutiny. The education system in Nepal has so far produced more certificate holders than qualitative and skilled human resource. Thus, our education sector requires serious reforms and changes in order to enhance the quality. First and foremost, we must free our education sector from politics. The politicians and parties need to strop interfering in the education and academic institutions for their partisan interests. If education were to be freed from politics and political interference, half the problems in the education sector would be solved automatically.

Source: The Rising Nepal, May 30, 2007

Nepal-France Relations : Possibilities Of Co-operation

Madhavji Shrestha

The status of Nepal-French relations at the moment is said to be normal. No new dimension in the bilateral ties is likely to emerge soon. A new government headed by Nicolas Sarkozy is on the saddle of the government after his spectacular victory in the presidential elections. The latest opinion polls predict his party will also make decisive gains in the assembly elections slated for next month. Observers of the French political scene, however, say that no new initiative will emerge in its foreign policy towards Asia, in general, and South Asia, in particular, because our region does not figure prominently in the scheme of French foreign policy since long.Nepal's dramatic political transformation last year has not been able to add any perceptible new element to the bilateral connectivity between the two countries. Nepal still remains plunged in the political impasse. One very lamentable concern is that Nepal has not been able to make a good choice for an efficient and effective ambassador to France for the last five years. Hence, the level of relationship has stayed at a low key as if no interactions are working between the two.

Global roleBut France has maintained its presence with an ambassador in Nepal without a break since the establishment of its embassy in Kathmandu. Evidently, France does not have any strategic partnership with Nepal nor are there any good linkages of political and economic concerns. Requisite components of connectivity between the two are conspicuously absent to have a good friendship. However, consistent efforts to identify appropriate areas of co-operation will help to improve the relationship and widen its scope.Experts of recent French history and politics say France aspires to be a universal country, and to achieve that, it has charted a map for a major global role. Naturally, aspiring for a greater role means having a great vision and implementing the policies in true form. Undoubtedly, France is very proud of its culture, literature and, above all, its language. It is for these reasons that France had taken the initiative a few years ago to establish in Vietnam an international organisation of 42 Francophone countries, with the appointment of former UN Secretary General Boutros Boutros Ghali as its founding Secretary General. This shows how France wishes to play its role in the global arena. Undeniably, the sizeable quantum of resources and capabilities at its disposal are the pre-requisites for materialising its global role.

France as an influential nation exhibited its diplomatic prowess in maintaining stability and peace in Europe in post World War II period. Along with a democratised Germany, it has also made great contributions with its diplomatic ingenuity to establish the European Common Market, which has now grown into a politically homogenous European Union. At present, this Union is the single largest trading bloc of the world with a total GDP of about US$ 13 trillion. France stands tall in the European Union and plays a crucial role in its foreign and defense policies and, more visibly, in trade and developmental co-operation.France is endowed with enchanting landscapes in the whole of its territory bordered by the Atlantic Ocean in the west and the Mediterranean Sea in the south. It is also rich in ancient and medieval heritage, arts and music. The geographical attraction coupled with its aesthetic inheritance have made France a truly global centre of tourism. Each year, tourist arrivals from around the globe exceed its total population. Today, France enjoys a position of envy, which remains unbeatable despite severe competition from various countries of Europe and other continents. It has remained so because tourists wishing to make a trip abroad can find every object and comfort of their choice in the sprawling lands of France.

The ties between Nepal and France are one of an underdeveloped country with a highly advanced nation. The situation in the two is indeed different from every socio-economic aspect. On the political front, too, there is a high degree of difference. If Nepal is toddling with a multi-party system, France has already reached the pinnacle of democratic maturity. Under such circumstances, Nepal as a country trailing far behind in socio-economic progress needs to search for possibilities of co-operation.France is a core member of the European Union with great influence on the co-operation that the Union extends to underdeveloped countries like Nepal. An appropriate approach with the concerned authorities of France dealing with EU affairs would certainly enhance broader understanding, besides paving the way for strengthening democratic linkages with many member states of the European Union. Such efforts would, no doubt, escort the Nepali mission accredited to the European Union in Brussels to move ahead with reinforced synergy. As a result, co-operation can be expected to grow to the advantage of Nepal.

France is also a country that takes great pride in its educational and cultural attainments that are of excellent standard. The one important step Nepal needs to initiate is to move ahead with an avowed purpose of establishing good contacts with the educational institutes of France. France is the only country in the world that allocates the largest share of its annual budget for cultural activities abroad. Nepal can, if approached with convincing and well charted programmes, make good progress in pushing our educational level upward.Nepal has yet to make its bureaucracy self-sustaining and functioning for the country's cause. For bureaucratic management and efficiency, France is at a highly advanced stage compared to other democratic countries of the European Union. Its effective bureaucracy showed the world how the momentum of technical and economic progress could be achieved even during the years of political instability after World War II until the advent of the fifth republic in 1958. The efficacy of the French bureaucracy is considered very high. Nepal can improve its bureaucracy by learning from France and sharing their experiences.

Co-operation in Tourism

Nepal possesses large potentials for expanding tourism and related activities, which can contribute to economic growth and create jobs. Regrettably, this sector has not made worthy achievement. France is undoubtedly an appropriate country to turn to for technical assistance as it has valued experience and technical capability. France is among the top five countries from where large numbers of tourists come to Nepal. This is one of the good points to enhance our co-operation in tourism promotion. Noticeably, a very important point, among others, is that Nepal should be receptive to attaching importance to the mutually advantageous introduction of the French language and their educational technicalities in Nepal. This will certainly contribute to the growth of the cordial relations between Nepal and France. Are we prepared to do something positive for the sake of giving a good touch to Nepal-France relations instantly?

Water supply: Case for public-private partnership

Chiranjibi Nepal

I n the early 1990s, with increasing awareness of environmental degradation and widespread stress on water-related issues, the UN and the international community started to take freshwater issues seriously. In accordance with the “Dublin Principles” that emerged from the International Conference on Water and Environment in Dublin, water was recognised as an economic good (a commodity to be priced at cost of provision and value to society). Private sector participation in water services increased worldwide. But still, it only serves about five per cent of world population. At the end of the 1990s, multinationals started to revoke contracts and concessions in developing countries and are now reducing their involvement in projects that are unprofitable or risky.

Two popular models exist in the water sector: the English model of full privatisation, where ownership and management are private, and the French model (PPP model) of delegated management (lease and concession contracts), where the ownership is in public hands and the management is handled by a mix of public and private bodies. The English model is adopted mainly by England and Wales, whereas the French model has been the norm in most developed and developing countries.

Partnership between public and private sectors is a means of collaboration to coordinate and pool organisational, technical and financial resources to achieve compatible objectives. Dwindling public resources and increasing need of the citizens with regard to service delivery are the reasons for emergence of this concept. Public-private partnerships (PPPs) enable public sector to generate private funds while maintaining ownership of assets and services.Private sector’s involvement can significantly improve effectiveness and efficiency of service delivery. This came with the realisation that the government alone could not provide everything to everyone. This led it to promote private sector in areas where it is willing to cooperate for service delivery or infrastructure building. PPPs for service delivery are applicable to the most of public services such as drinking water supply, garbage collection and disposal, waste water treatment, operation of transport services, real estate development and management, education and public health.

In the context of the kind of urban services in Nepal, there is limited scope for the multinational companies (except in Water Supply Management). However, there is a high potential for local and national companies. But comprehensive national policy on public private partnership is still underdeveloped. PPP should be based on mutual prosperity and fairness and PPP policy should follow national policy for timely and cost effective development by allocating risks to the party best able to manage them and benefit from private sector’s efficiency, expertise, flexibility and innovation.But PPPs will only help if there is a good regulatory authority that can enforce policies and regulations. The issue of public-private partnership is complex, even more so in the case of municipal water supply. Hence, every law and institution that can affect PPP must be carefully examined. These include labour law, industrial enterprise act, company act, company taxation rules, environmental standards and regulatory tools, power and capacity of regulatory agencies, division of responsibilities between municipality, VDCs and Nepal government, among other related acts and policies.

The private sector seeks commitment of the political parties to PPP approach, clear definitions of scope of work, transparent tendering process, security of water supply, clear definition of responsibilities of municipalities and VDCs, an autonomous body for drinking water management and a company act for drinking water.New and effective financing mechanisms are essential for the development of water sector. New funding mechanisms should be sought that include bond financing, expanded role for urban banks in water sector, independent intermediary private sector funding through increased participation in water services with appropriate sharing of risks between contracting parties - with the banks providing guarantees for some risks as well as issue of treasury bills.

Private sector participation would be enhanced by arrangements with international agencies to protect against political risks. Availability of guarantee would be contingent upon having appropriate contractual structures for private sector participation. Private companies need to be assured return on investment, as investment in the water sector is high and irreversible. Further, there is no ‘one size fits all’ approach and the choice of a particular partnership depends on local context and feasibility. It is indispensable for governments as regulators to understand the motive of private sector for entering PPPs and have skills to manage unknown circumstances over the life of the partnership.Dr Nepal teaches Economics at TU

Source: The Himalayan Times, May 30, 2007

Worries About Water Politics

John Child

A Maoist minister's move to block a much-needed drinking water project for Nepal's capital is more about politics as usual than power to the people. As Kathmandu residents queue under the tropical sun for water of dubious purity pumped from battered tank trucks, a much-delayed project to bring water to the city from the Melamchi River to the east appears about to collapse. Maoist Minister of Water Resources Hisila Yami has blocked a critical contract at the last minute, citing concerns about the foreign company which has been hired to manage distribution of the water.

Not even Minister Yami disputes the necessity of the project: Kathmandu is chronically short of water. In the 1980s it became clear that action was needed, and surveys selected Melamchi as the best source close to the city. In 1998 the Asian Development Bank threw its weight behind the project, and serious planning began. In 2001 the Nepal government announced that funding commitments from the finance ministry and international donors had been reached, and it initiated the massive project.

The plan calls for a 26-kilometer (16-mile) tunnel to deliver the water, with associated access roads, power lines and water treatment facilities. Importantly, the plan also requires a private agency to manage the water supply in the Kathmandu Valley in place of the inefficient and corruption-ridden Nepal Water Supply Corporation.

The plan called for completion of the Melamchi project in 2007. So far only part of the access road has been built. Delays caused by political bickering and frequent changes of government are partly to blame. The Maoist insurrection caused long work stoppages, and disputes with contractors led to several false starts. In the face of this, some donors withdrew and other money had to be found.

With contract and funding commitments due to expire early in 2007, the Nepal government last year created an independent water supply board, Kathmandu Valley Drinking Water Limited (KUKL), to hire a private water management company. KUKL received only one bid on its contract, from Severn Trent, one of the ten privatized English water suppliers, and it accepted Severn Trent's $8.5 million, six-year proposal. The company's fee is to be paid directly by the Asian Development Bank. With the original deadline already passed and an emergency extension of the ADB contract set to expire next month, Yami's refusal to approve the Severn Trent contract and the bank's threat to pull all its funding if the deal isn't completed immediately may kill the project.

Minister Yami points to Severn Trent's spotty record in England, where it has been convicted of overcharging customers and misleading regulators and where the government's serious fraud office is investigating the company. She also is reluctant to have a foreign company given the lucrative contract, and says she is confident that Nepali bidders would come forward if the contract were re-opened. Yami has also played up Severn Trent's announced plans to immediately double the effective water tariff for most Kathmandu Valley households.
No doubt those concerns are sincere. But the risk of having the long-planned and vitally important project collapse is so serious that she must have other motives too, ones that are vitally important to her. Cynics suggest that the prospect of renegotiating the contract and perhaps even the whole project, with attending lucrative commissions and kickbacks, is motive enough. Perhaps. But ordinary politics can explain Yami's action.

Consider the situation from the perspective of the long-time member of the Maoist politburo. The Maoist struggle continues in, as Prachanda said last week, "street, parliament, and government." There are big issues on the table: Maoist return of seized land, ethnic tensions in the south, reigning-in the Young Communist League, scheduling a date for elections, and a Maoist-led teacher's strike. Yami saw the Melamchi project as a big chip, and she has laid it down.
Whatever her other motivations, Minister Yami is playing power politics at the highest level with the Melamchi project. The move may already be bearing fruit: Shortly after she said that "other options" would become available even if the ADB and Severn Trent pulled out, Koirala approved funds to build 1,000 barracks-style buildings to replace tents in the Maoist cantonments. Revolutionary or not, Minister Yami clearly knows how to play the old game.

Source: News Blaze, May 25, 2007

Positive Deal

THE private schools that were shut down for almost two weeks have been reopened. The accord reached between the government and the teachers' forum has marked a fresh beginning to tackle impending issues in the education sector. The government has pledged to look into demands raised by the teachers and it is committed to take initiatives to resolve them within a month. As taken up by the striking teachers, private schools have several problems embedded within them. Though the education act embodies provisions governing operation of private schools, the education institutions have not fully complied with them. Several provisions in the education act are prescribed for running the private schools. . Conditions and criterion have been laid down to define the basis with which private schools could be established and operated.

The schools should have adequate physical facilities and children friendly environment. A set of qualified human resource should be employed in such schools. They should be remunerated according to law. However, these provisions have not been followed in letter and spirit. In the majority of cases, underqualified teachers have been employed in private schools and they are grossly underpaid. Moreover, teachers are not given written undertaking of their employment and the security of their job has not been guaranteed. It should be pointed out that the poor condition of the private schools is not because of the absence of the provisions in the relevant law but because of the lacklustre implementation. The district education office is responsible to oversee implementation of the legal provisions and ensure that violations of legal norms was fully checked.As the office has the wider regulatory power to monitor performance of the schools, any pitfall in the observance of law should be attributed to the weak monitoring and supervisory system in the line agency concerned. Since weak performance of the government office can be strengthened and improved through necessary inputs, teachers should not resort to any threatening tactics to pile pressure upon the government. Dialogues and collective bargaining should be adopted as the means to tackle problems as strikes not only disturbs academic cycle but also brings ruin to the future of the children.

Source: The Rising Nepal, May 29, 2007

Private Sector And Anti-Corruption Drive

Dhana Bahadur Mijar

Most of the people in general regard giving and/or accepting a bribe as corruption. In fact, it only is not true. Corruption is very comprehensive in term itself that covers many malpractices like fraud, embezzlement of public funds, misuse of public power for private gains, illegal political party funding, extortion, delaying work with expectation of bribe by the public servant etc. DefinitionIn terms of giving definitions, various organizations and prominent personalities have defined corruption like: World Bank has said "The abuse of public office for private gain." Similarly, as quoted by UNDP in Fighting against Corruption to Improve Governance, 1999, "Corruption is the misuse of public power or authority for private benefits-through bribery, extortion, influence peddling, nepotism, speed money or embezzlement."

Likewise, Kofi Annan, the former UN Secretary General has mentioned in the issues of corruption as definition like this:-"Corruption is an insidious plague that has a wide range of coercive effects on societies. It undermines democracy and the rule of law, leads to violation of human rights, distorts markets, erodes the quality of life and allows organized crime, terrorism and other threats to human security to flourish." If we consider the above mentioned definition everybody can conclude that corruption erodes the value system and inflicts damage on all the sectors like social, political, financial etc. It also violates human rights. It is also worth mentioning here that a meeting of the world's nine economists including 4 Nobel laureates held in Copenhagen listed corruption as one of the 10 major problems of the world. According to them the first problem facing mankind was malnutrition and hunger, the second was contagious diseases with corruption being ranked third. They also warned that if anti-corruption movement is not launched seriously, the lives of people in most of nations would be uncontrollably ruined. Corruption and Ethics are closely related. A country where the majority of the people are indifferent to unethical and unpatriotic practices cannot be expected to have a harmonious development.

The United Nations has clearly visualized this fact. Hence, on December 9, 2003, to initiate the anti-corruption movement effectively, it made a declaration of Convention on Anti-Corruption. All member nations were called to sign the Declaration. Till date, more than 40 nations have done so. Nepal is also the signatory to the Declaration, but has yet to be pass the relevant law, rules and regulations.The number of agencies both in the government sector and private sector are active in the Anti-Corruption Movement in Nepal. Some of the prominent among them are the CIAA, National Vigilance Centre, Centre for Revenue Investigation, Office of the Auditor General etc. from the government side and likewise Transparency Interna-tional, Civil Society, Consumer's Forum, Press Media, Pro Public, ReMAC, SWATI and a number of NGO and INGOs are involved in anti-corruption camp-aign. They basically direct their effort towards dissemination of information and creating awareness as regards the anti-corruption movement. They have been functioning as strong pressure groups.Regarding all of these activities, FNCCI as an umbrella organization of 90 per cent of the private sector of Nepal has established Corporate Ethics Forum / Anti-Corruption Project to help for fighting against corruption. Basically, it has focused its activities on the private sector which is being often blamed as the bulk source for bribes. It operates on the belief that initiation on anti-corruption activities begins with a sense of social responsibility and that could be expected to minimize corruption in country.

The main goals of all the partners in the anti-corruption movement are to work for good governance, strive for a corruption free society and promote a clean and healthy business environment. FNCCI as an apex body of the industrial and business organization in the country has taken upon itself the responsibility to do away with corruption and unethical business behavior from within its ranks. Towards this end, a series of activities with far reaching consequences have been undertaken as well. AchievementHaving commenced since January 1, 2004 it phased out on March 31, 2006. Within the 27 month duration of its project, it has basically drafted 18 point business code of conduct (BCC) and passed by the 38th Annual General Meeting of FNCCI. Then Complaint Hearing Unit (CHU) has been established and its regulation "Complaint Hearing Unit Regulation-2062" has been enforced. This project had launched nearly 60 awareness programmes like Code of Conduct Orientation, CHU orientation and other anti-corruption awareness creating programmes. It may be a brick for supporting the business community to be clean of the blame of bulk source of bribe.

Source: The Rising Nepal, May 29, 2007

Focus On MDGs

EVER since Nepal expressed its commitment at the United Nations Millenium Summit to meet the basic needs of the people by 2015, the government has taken a number steps to meet the Millenium Development Goals (MDGs) within the stipulated time frame. The Millenium Summit set eight different development goals to be met by the developing world. These goals include, among others, alleviating poverty, ensuring universal primary education, reducing child and maternity mortality, ensuring gender equality and fighting the AIDS epidemic. Although the poverty alleviation programme and other issues contained in the MDGs have been the priority of the government for long, Nepal has been making extra efforts to achieve these targets since 2000. Poverty is the highest priority of the government. All economic and development programmes have been integrated with the poverty alleviation strategy, and Nepal has achieved significant progress on various fronts. Nepal is well ahead in reducing child mortality, which has been a lesson for other developing countries. In other sectors, too, Nepal's progress has been satisfactory. But resource crunch has put tremendous pressure on the government in carrying out programmes related to the MDGs. Moreover, the decade-long conflict seriously marred the development activities, which caused negative growth in some sectors. However, it did not deter the government from pursuing programmes designed to meet the basic needs of the people. The literacy rate has gone up, and student enrollment in the schools has been satisfactory. The poverty alleviation strategy is also gaining momentum and the efforts at gender equality and fighting AIDS have also been encouraging. All these developments have shown that Nepal is on track to achieving the Millenium Development Goals.

Nepal is a country with limited resources. But it needs huge funds to rebuild the infrastructure damaged during the violent conflict. For this, Nepal needs strong and meaningful support from the international community. So far, support from the donors has been encouraging. But such efforts should be enhanced if Nepal is to achieve its goal for development. In the light of progress and constraints towards meeting the MDGs, vice-chairman of the Nation Planning Commission Jagadish Chandra Pokhrel, at a meeting of the United Nations Economic and Social Council for Asia and the Pacific (UESCAP) in Kazakhastan recently, expressed Nepal's commitment to achieving the MDGs and called upon the international community, in general, and the United Nations, in particular, to increase the level of assistance to Nepal. As observed by vice chairman Pokhrel, Nepal would march ahead in achieving the development goals set by the United Nations in time only if the international community actively supports Nepal's bid.

Source: The Rising Nepal, May 25, 2007

Corporate social responsibility in Nepal

Siddha Raj Pant

Recently, a marketing manager of a distillery audaciously claimed to be evading tax to make up for extortion by various political outfits. Similarly, another owner of a popular low-cost liquor brand is absconding following charges of misappropriating millions from a bank against him. Likewise, the chairman of the FNNCI was arrested for fraudulent business practices.In this context, it was ironic that Kathmandu played host to “South Asian NGO Consultative Meet on Promotion of Corporate Social Responsibility”, a three-day regional conference from April 25 to 27. The message is loud and clear. Whether or not businesses abide by their responsibility towards the society, civil society represented by vigilante NGOs will continue to keep an eagle eye on the impact companies have on the society and other stakeholders. But without government help, NGOs can do no more than name and shame unscrupulous businessmen.

Originally, the companies were created by the governments to do essential public work. This practice gradually evolved into an economic model with enhanced efficiency and effective use of resources. This model of economic development is the best as it enlarges the size of the pie than seek a larger portion of a smaller pie. Philosophically too, a rational being will tend to go that extra mile only if there are incentives to do so.Even though political myopia in promoting unionism and barriers to entry into and exit from the market would remain for a while, it will be imprudent to think of life without private businesses for both their might and importance is increasing day by day (51 of the world’s 100 largest economies are corporations, not countries). The important task is to gauge socialdesirability of these institutions and determine the minimum acceptable ethical behaviour or social responsibility.

Caught in the dilemma of development imperative and amorality associated with private corporations, governments across the globe are changing their role from that of a competitor with private businesses to one regulating the private entities in favour of the consumers, the environment and the state.As the role of corporations is evolving from an immoral entity into a legal one, they will have to behave ethically as prescribed by the law. No country allows, by law, fraud and smuggling. This minimal level of ethics should be maintained irrespective of whether it makes an economic sense for a business. But some companies adopt high ethical standards if only to differentiate themselves from their competitors.

But does it pay to be an ethical business in Nepal? There is no definite answer. The level of ethical adherence depends upon societal expectations, institutional capabilities, economic freedom, awareness and education level of citizens. Other factors apart, in order to promote social responsibility of companies the state, along with watchdog NGOs, should strengthen the capacity to regulate businesses and benchmark good practices.

Source: The Himalayan Times, May 25, 2007

Hydropower: An Overview

Uttam Maharjan

Energy is one of the basic components of development. Without energy, no economic sector can develop. An instance of energy is fossil fuels. Fossil fuels are extensively used around the world. The far-reaching use of such fuels has contributed to destabilising the environment, causing, for instance, global warming. With fast-paced depletion of fossil fuels and the resultant effects on the environment, hydropower is being explored as a renewable source of energy. In the present scenario dominated by the deleterious effects on the environment of greenhouse and other noxious gases, moving towards the use of hydropower as a carbon-free energy source has been deemed viable and eco-friendly.

Renewable energy

Hydropower has been recognised as a renewable source of energy. The Johannesburg World Summit on Sustainable Development and the Third Water Forum (Kyoto) have both recognized hydropower as such. Other sources of renewable energy are solar energy, wind energy, geothermal energy, oceanic energy, cogeneration (use of a heat engine or a power station to generate both electricity and useful heat at the same time) and biomass.

At the end of the Third Water Forum held in March 2003, a new report was released on how developed countries should fund water projects. At the beginning of the 21st century, 33 per cent of the people were found suffering from water hardships as per the 54-page report of the Forum. In Africa, households spend 26 per cent of their time fetching water. As per the study by the Water Supply and Sanitation Collaboration Council, an independent body that endeavours to secure safe drinking water for the teeming poor in the world, Asian and African women have to walk around 6 kilometres a day to fetch water. Consumption of water per person per day in developing countries is estimated at 10 litres vis-୶is 135 litres in the developed countries.

About 1.1 billion people around the world are deprived of safe drinking water, whereas about 2.4 billion people are balked of good sanitation. One of the millennium development goals is to halve the problem relating to safe drinking water by 2015.Nepal is very rich in water resources. Despite this huge potential of water resources, the hydropower picture in the country is bleak. There is no denying that hydropower has multi-dimensional use, through which sustainable development can be notched up. Sustainable development in the economic sector would certainly transform the socio-economic status of the people, a daunting challenge for the poor countries.With the restoration of multi-party democracy in the 1990s, the hydropower sector in the country, like other economic sectors, has somewhat metamorphosed. The Water Resources Act 2049 and Hydroelectricity Act 2049 were promulgated, enabling the private sector to step in for investment in water resources. Foreign companies are interested in hydropower projects, but they prefer large-scale hydel projects.

Foreign aid for the development of water resources projects also comes but with harsh terms. Such projects are marred by lack of transparency, accountability, monitoring and financial discipline and by economic anarchy and malgovernance. The cost of such projects would also soar due to delay in completion, exchange rate devaluation and additional cost. It is essential to set up an Electricity Development Board and encourage small- and medium-scale hydel projects. For water resources to develop in a true sense, three things need to be in place: management of electric development and promotion, market management of electricity, and operation and maintenance of projects in a timely fashion. In developing countries like Nepal, large-scale hydel projects are a difficult proposition due to the high cost and sophisticated technical know-how required. Hence, small-scale hydel projects such as micro- and pico-hydel projects need to be encouraged and stimulated in addition to large-scale hydel projects. Micro-hydels produce upto 100 KW of power. Such hydels are often used in areas where there is plenty of water. They supply power to small communities. Micro-hydels can complement photovoltaic solar energy systems.

On the other hand, pico-hydels generate power below 5 KW. Such hydels are used for far-lying communities requiring very low power. Pico-hydropower does not pollute the air, so it is more eco-friendly than fossil fuels. Hydropower projects have elimination of the cost of fuel as their major advantage. As no import of fuel is required, hydel plants are free from price hikes normally associated with fossil fuels like oil, natural gas, coal and POL products. Besides, the operating labour cost of hydel plants is lower as plants are automated, requiring very few people on site during normal operation. Reservoirs built for the purpose of hydel operation may provide water sports facilities. Such areas may be used for wooing tourists, thus, developing the areas into tourist spots. In a similar vein, a hydel plant may be constructed at a lower cost around multi-purpose dams for irrigation, flood control or recreation, which may recoup the cost of the construction of the dam. Hydropower projects do not come with advantages only; they may pose a threat to aquatic ecosystems. Damming often poses an obstacle to the migration of fish, thus preventing them from reaching their spawning grounds upstream. Similarly, damming and redirecting the waters of a river may endanger native and migratory birds. Large-scale hydel projects may give rise to environmental snags both upstream and downstream. The reservoirs of hydel plants in tropical regions may generate a lot of noxious gases such as methane and carbon dioxide.

Disadvantages

Construction of hydel dams makes it necessary to relocate the people who are living where the reservoirs are planned to be built. In such a case, the question of compensation often crops up, leading to spats with the local people and causing a delay in completing the hydel projects. Besides, historically and culturally strategic places may be affected, sometimes leading to their complete loss, which is a great blow to heritage preservation. Construction of a dam in a geologically unsuitable area may give rise to disasters. One such example is the Vajont Dam in Italy, which killed 2,000 people in 1963. Failure of dams can be very serious. The failure of the Banqiao in China killed 171,000 people and rendered millions homeless. Even stronger dams built at a great cost are vulnerable to sabotage and terrorism.

Source: The Rising Nepal, May 25, 2007

Wiser course

The Melamchi drinking water project has hit a roadblock at the eleventh hour, when a foreign private company, Severn Trent Water International (ST), was on the verge of taking over the management of the distribution of drinking water in the Valley under a loan conditionality the Asian Development Bank (ADB) attached to its commitment of US$120 million, which accounts for less than one-third of the total project cost. The Nepali media splashed ST’s controversial records in several other countries, including Britain. Hisila Yami, the Maoist minister in charge of drinking water, has taken a firm stand against awarding the contract to such a company, all the more so because the pre-interim government had agreed to take it on without meeting the financial regulations on bidding for a contract. Amid the controversy, ST announced this week that it had withdrawn from the deal. However, ADB seems to insist that the ST conditionality should be honoured or it cannot keep its commitment. As much is reported to have been said by ADB officials in their meeting with Maoist chairman Prachanda on Wednesday.

Given the ST pullout and the adverse circumstances that have developed in the country for it, the issue should not be one of sticking to it, but of finding a way out to keep the Melamchi project alive. ADB was formed to assist in the development of poor countries and its partnership with Nepal is a long one. Sticking with ST sounds neither wise nor advisable in the emergent situation, as it would find a hostile environment in which to work and win public support after so much exposure of the negative kind. And it would impact adversely too on ADB in the eye of the Nepali public, as questions will be asked about its extraordinary interest in this company. Ideally, the concern of a development bank like ADB should be that the money it lends is spent in the project specified and that its principal and interest are paid in time. Extraneous conditionalities raise doubts about the motives of multilateral agencies, as ADB, the World Bank, and the IMF are not unaware of.Certainly, questions of Nepal going back on its earlier commitment may also be raised. But when it comes to perceived national interests, much should not be made of Nepal’s credibility among the donors. Now the only wiser course would be to look at the management of water distribution in the Valley from a new angle.

The question of why a foreign company, and not Nepalis themselves, should be favoured is yet to be convincingly answered. If the contract is to be awarded only to a foreign company or to Nepali ones alone, or to the best bidder in global competition, the matter should be settled first. But everything ought to be decided in a transparent manner in the interests of the poor Nepalis and that would entail steps aimed at cutting cost, plugging huge leakage of water, desisting from charging the consumers unfairly for water use, fighting corruption in water management, and exacting accountability. Everything is not lost yet. There still is time to make up.

Source: The Himalayan Times, May 25, 2007

Participatory Approach In Motivation

Kedar Prasad Bhandari

In human resource management, the participatory approach has been considered an important tool in motivating employees. The participatory approach, also known as participative management, is a process in which the subordinates involve in the decision-making function with their immediate superior. Complex jobsIn the recent decades, there has been a paradigm shift in the management of human resource. In Nepal, participatory approach can be said to have begun with the financial sector reforms in the mid-1980s. Propelled by liberalisation and globalisation, the participatory approach received more prominence in an institutional manner after 1990.

The Local Self-Governance Act can also be taken as an initiative for promoting participatory management at the government level. Today, jobs have become extremely complex. So it is difficult for managers to know everything what their employees do. In fact, participative management empowers the subordinates who know the actual problem and can contribute to make better decisions. Decision-making is not an easy job for managers. They have to win the confidence of all the employees working in their organisations. It is necessary to consult the employees of different inter-dependent departments to bring uniformity in their performance.

This helps develop the concept of team, committee and group meetings to resolve complex problems. Employees do not undermine a decision during implementation as they have been involved in making that decision. Participation provides intrinsic rewards for the employees, and it makes their jobs more interesting and meaningful. Broadly, there are two means of motivating employees through their participation: Quality of Work Life and Self-managed Work Team. Quality of work life is defined as an attempt to develop a formal programme to integrate the employees' needs and well-being with the intention of improving productivity, greater worker empowerment and higher level of job satisfaction. It supports a highly democratic treatment of employees at all levels and encourages them in the decision-making process. Its emphasis is on maintaining a quality working environment for the employees. A quality working environment includes financial incentives, opportunity to develop personal skills and ability, safety working conditions, and the opportunity to participate in problem solving and decision-making.

In essence, there are three means through which Quality of Work Life (QWL) can be improved. The Quality Circle (QC) is a concept first started in Japan in the early 1960s to improve the quality of products. Quality circles consist of work teams composed of 8-10 employees from the same work area who meet regularly to define, analyse and solve quality and work-related problems in their specific area of operation. The membership is strictly voluntary, and meetings are usually held once a week, normally for an hour before or after the job is over.

An organisation may have several Quality Circles operating at a time to deal with different people in different areas. The members are given some form of training in problem solving to work effectively. The Quality Circle is designed to improve the working conditions and enable self-development of the employees. The focus of the Quality Circle is to encourage the employees to accept responsibility for improving quality. The Quality Circle is effective in bringing about a short-term improvement in the quality of work life, but it is less effective in creating more permanent changes. Sharing of ownership by the employees is another emerging concept in participatory management. It is a plan in which the employees are offered ownership of the organisation as a benefit package. This may be done by stimulating them to buy equity shares.

It has become an important tool in motivating the employees.It is believed that if the employees own the shares of an organisation, they would be motivated to work effectively to increase the value of their shares. Similarly, as both owner and employees can participate in meetings, they can put forward their views, ideas, and opinions while making decisions. Business organisations in Nepal are also adopting the concept of employee ownership. Most of the joint stock companies offer 5 per cent of their public issued shares to the employees. Moreover, the concept of a flexible work schedule has developed in the recent years. In this plan, employees are allowed to choose their own arrival and departure times within specified limits fixed by the organisation.

Basically, the work time is divided into two groups: 'core time' and 'flexitime'. During the core time, all the employees must be present in the office, but in flexitime, the employees are free to select their own starting and departure time based on their convenience. Flexitime is popular in the USA. In flexitime, employees may involve in personal works like payment of utility bills, visiting children's schools and banks. This system is helpful in reducing absenteeism, overtime payment, employees' turnover and provides convenience to the employees. Another concept that has emerged in the recent years is Self-managed Work Team. It is also known as self-directed autonomous work groups consisting of 5-15 members. It is a formal group of employees that operates without a manager and is responsible for a complete work process.

All the members of the team are skilled in their own area of profession. The team members are jointly responsible for performing the task. They are responsible for planning and scheduling works, assigning tasks to members, collective control over the pace of work, making operating decisions and taking action on problems.Team members perform their work independently through mutual participation so it provides a higher level of job satisfaction. In such team work, the role of the supervisor decreases and may even be eliminated. It allows sufficient time to the manager to involve in creative managerial functions. Today the Self-managed Work Team concept is popular in most of the business organisations.Participatory approach in new context In fact, participatory approach is based on democratic norms. Given the changed context, Nepalese entrepreneurs and managers should try to include all the employees working in an organisation. The participatory approach should be given focus in the changed context in order to democratise the entire organisational system and accelerate productivity for faster economic development through wider participation.

Source: The Rising Nepal, May 23, 2007

Road To Economic Progress

Amrit P. Shrestha

What the modern industry needs is better infrastructure. Traditionally, infrastructure services across the world were provided by governments in limited areas like airports, electricity and roads. Today infrastructure must improve in all parameters, which requires immense financing through external and internal channels. Without basic infrastructure development, no sector can achieve any sort of target. To keep the wheels of the economy running, countries must make enormous progress in attracting private investment in the infrastructure sector, as the government alone cannot invest huge amounts in it. In order to send the right signal to international investors, there is a burgeoning need to create sophisticated infrastructure in selected key cities and projects as seen in Beijing, Shanghai and Kuala Lumpur, which have emerged as the investor's choice in the last three decades.

Infrastructure needs three key inputs - large amounts of money, skilled manpower and selected projects. Governments must realise that the only way to become the nation's doorway to economic zoom is to give new thrust to infrastructure development. Thus, the Essential Facility Doctrine has been recognised by most of the developed and developing countries. Australia, Singapore, South Korea and India have been adopting the doctrine. Investment requires long-term funds with a long payback profit period. More importantly, Public-Private Partnership (PPP) is a signal to investors in general that the policy framework is sound and environment conducive for investment. Such models have to be initiated in key sectors like roads, airports, power and tourism. Nepal lacks the necessary physical infrastructure to qualify as an international investment centre. Investments must have easy access, and there should be well-developed infrastructure within acceptable parameters. At present, we must have suitable strategies to convert challenges into opportunities. Better infrastructure helps in alleviating poverty and expanding the industrial base because accessibility to services improves as a result of it.

Currently, GDP's contribution to infrastructure development is less than 4 per cent, which is less than the share of our neighbouring countries. Actions must be accelerated on the following track, to help build trunk infrastructures in the country. First, Modernisation or industrialisation require massive expansion of national highways, airports, electrification and telephones linking every village with the urban areas. Ground water exploration, minor irrigation, water supply and sanitation are other priorities. Highways form the economic backbone of the country. Likewise, rain water harvesting and human resources management must be developed, which is sorely lacking in the country. Given the size of the country, air travel has become the swiftest mode of transport. Hence, Nepal should take bold steps to expand and upgrade its airport infrastructure. Second, among the bottlenecks to achieving growth in the country is electricity supply. Power and its allied sector play a crucial role in economic development. Electricity is the lifeline of our lives as its use ranges from mundane applications to complex tasks and operations. Our productivity is affected because of this.

Third, the tourism industry could gather momentum if the government plans innovative promotions. Tourism should introduce new products such as monsoon tourism, helicopter tourism and the like. Such programmes will attract visitors, especially from India and Europe. With Nepal becoming a business hub especially for tourism, regional disparity can be minimised upto a certain extent. Likewise, growth of tourism will help enrich the lives of traditional workers and artistes. Unfortunately, lack of roads, accommodation, safety measures, well established communication systems and hospitality management centres are some of the hurdles in its promotion. Fourth, building IT Parks in important cities can offer a unique confluence of advantages - robust physical infrastructure, power and data connectivity and trained technical manpower. All this will effectively reduce the operational cost. Fifth, there is a need to hand over the entire infrastructure development to the private sector with no political interference. There should be no bureaucratic controls over enterprises. They should not be asked to get approval for minor decisions.

Sixth, an act to form an independent Infrastructure Authority, similar to the National Highways Authority in India, Afghanistan, Laos and the Philippines, has to be announced without delay. Meanwhile, a vision paper with priorities and national consensus must be flashed, emphasising on infrastructure development to attract investors and also to make the entire cycle of investment, productivity and wealth creation sustainable.Seventh, special packages of tax incentives must be introduced as a tool to encouraging private enterprises or an undertaking engaged in the development of infrastructure facilities. This is particularly important for infrastructure developing companies. Human developmentMost importantly, the overall environment needs to be free from prevailing corruption and petty-mindedness. For the common man, good economics is all that he cares. The government should accelerate the process of human development by delivering services in electricity, transport, water and sanitation that the poor need in order to live and participate in economic growth. A leader of outstanding merits, efficient bureaucrats and a graft-free culture are the invisible infrastructure to race with the modern world. Let us start from a good today to a better tomorrow.

Source: The Rising Nepal, May 22, 2007

Nepal-China Trade

IN ancient times there was significant volume of trade between Nepal and China, particularly Tibet the autonomous region of China. Now, however this trade is not up to an appreciable extent, and there is much more scope for boosting the trade between the two countries for their mutual benefit. In this connection a discussion was held between a Chinese delegation that is currently visiting Nepal with the representatives of Nepal Trans Himalayan Border Trade Association.

The purpose of the parleys is to manage the trade between the two countries as well as to clear up the problems that might arise while carrying out such trade, apart from creating a congenial environment that would be ideal for the enhancement of trade between the two countries. The Chinese government for its part has made it known that the government level discussions desires to further expanding and improving trade between the two neighbouring countries.

However, the governments alone are not able to further boosting the trade, and, as such, the private sector should also be actively involved so that a vibrant trade thrives that would bring in rich dividends for the people of both the countries and contribute substantially to raise the income of their peoples. For this it is found that a mechanism including the representatives of local bodies and trade representatives of the two countries should be made in an attempt to seek resolutions to problems that the traders face in Khasa. Incidentally, Khasa is a commercial hub for Nepal-China trade. Furthermore, the full potential of trade between Nepal and China could be realized if the Chinese investors were to invest in the banking and tourism sector.

China has now emerged as an economic superpower. Nepal stands to benefit were it to attract the investors from China for also such sectors as hydroelectricity that holds immense potential and with which Nepal is endowed aplenty. For the time being, trade between the two countries would be further facilitated if the visa processing for Nepalese businessmen were to be eased. Other measures that could be undertaken are to initiate trade by developing infrastructures for transits adjacent to Nepal and China. Nepal also would appreciate it were the customs duty for Nepalese agricultural products, handicrafts and food grains in the Chinese market were done away with. These are some of the measures that would revive and also contribute to the further enhancing the trade between the two friendly countries.

Source: The Rising Nepal, May 20, 2007

Support Assured

Chief of the missions of the European Union conferred with Prime Minister Girija Prasad Koirala Friday and conveyed their support and unqualified co-operation to the on-going peace building and democratisation process in the country. The envoys of the European Union urged the prime minister to announce the date for the constituent assembly polls and ensure that the important democratic exercise was not marred by any untoward events.

Prime Minister Koirala responded to the chiefs of the mission of the European Union in a very positive light and assured that the date for the polls would be made pubic in concurrence with the Election Commission in a week. The interest shown and support extended by the international community to the cause of democracy and peace in Nepal is constructive as this has been instrumental, among others, to achieving positive outcomes and developments. The international community should also be praised for the co-operation and assistance given to Nepal in addressing the issues arising out of the conflict. Reference must be made to the people�s movement accomplished last year in which the Nepalese people were able to topple authoritarianism.

The support and co-operation of the international community to the cause of democracy and peace and the voice raised against human rights violations contributed significantly in weakening the basis of both authoritarian and totalitarian polities in the country. What has constituted a matter of key significance is the establishment of the Office of the UN High Commissioner for Human rights in Nepal that has been put at the frontline to monitor abuses of civil and political rights.

Moreover, the countries of the European Union have extended every possible assistance for different development and democratisation projects. Their request for the start of the second phase of the arms verification process is relevant and important. As the eight-party government has been working to arrive at a settlement of outstanding issues, the interest of the international community to extend co-operation to accelerate the momentum of the peace-building process is highly significant and meaningful.

Source: The Rising Nepal, May 20, 2007

Nepal And Globalisation

Madhavji Shrestha

The globalisation process in its dodging way is rising on a larger scale each passing year. It is happening so because human needs worldwide remain at the core of its development. Meanwhile, it is also coupled with human inquisitiveness and mobility that have invariably added both speed and momentum in propelling it forward. The process will continue to move onward until some catastrophe of a greater politico-economic dimension puts the brakes over it.

Labour export

Undeniably, the trend has bestowed unprecedented benefits to some of the developing countries, especially huge countries like India and China in recent years. But countries like Nepal are hardly touched by the growing waves of globalisation across various continents. It is true that the ongoing globalisation process too has benefited Nepal in one particular area, i.e., labour export, be it unskilled or semi-skilled.

A recent report of Nepal Rastra Bank tells us that in 2005/6, remittances by Nepali workers in various parts of the world, especially in the Middle East and South East Asia contributed 16.8 per cent to Nepal�s GDP. This figure is the amount received through official channels only. If remittances received through unofficial channels are taken into account, the total contribution will rise to around 25 per cent of GDP. This indicates how Nepal is highly dependent on remittances.

This case of the Nepali people testifies how human needs force people to go abroad to take advantage of the opportunities from globalisation. However, its future is uncertain and cannot be relied on for long.

Seen in the current Nepali context, the globalisation process has yet to touch the Nepali society economically, although some effects can be seen on the cultural life and information technology, which again are concentrated mostly in the urban areas. This again is highly confined to the class of the young and educated people of the cities.

The process has yet to fly beyond the urban areas. This is so because of the political impasse coupled with the less developed socio-economic life now prevailing in the country. Most Nepali people are largely deprived of modern educational opportunities and are indeed suffering from a lack of material and physical facilities.

The truth is that the Nepali society is somehow under minimal effect of the globalisation process that has been thrown upon by universal organisations like the UN and its various agencies and world bodies like the World Bank, the International Monetary Fund and the World Trade Organisation.

Official globalisation, developing in the aftermath of World War II, and the subsequent global developments in the latter decades of the 20th century are accepted by the world community as being compulsive and supposed to do well for their security, development and social well-being. Alongside this evolutionary trend of the officially embraced globalisation process, other aspects of globalisation in the non-governmental fields of businesses and industrial and service areas have made great leaps forward.

Surprisingly, this development of globalisation have not been able to deliver better things to all countries and regions of the world equitably for sheer lack of physical facilities and absence of stability to impact the economic domain of a country. Until now, there is no global governance on this important matter, nor have the concept and practice of globalism come to the rescue.

The experience of countries which have so far taken great advantages from globalisation shows that for any acceptable and benefit-accruing process to take root in a country, certain positive conditions must be present within its territory and society. Of all the essential things we need, there must be acceptable governance with transparent laws and regulations. Primarily, legal provisions, especially related to property acquisition, management and taxation, need to be put in place. Meanwhile, the judiciary as a guardian and ultimate protector of life and property must be strengthened and respected by society.

Still far more important is the presence of infrastructure - transportation and communication that can make the movements of the people, goods and services easy. A disciplined workforce is also highly warranted for better performance. If these minimal conditions do exist, a positive invasion of globalisation is expected.

Nepal�s integration with the world through economic and trade linkages are still a far cry. The requisite conditions do not exist here because of the political instability and the conspicuous absence of a reliable political leadership. Political wrangling and social unrest have been raising their ugly heads unabatedly. However, in due course of time, if an environment friendly to foreign investment and outsourcing from abroad can be created, globalisation would have a positive impact on the country�s economic condition.

All the political parties with a large following and appreciable influence over the common populace need to make their political stance unambiguous and unequivocal as regards the property and property rights of not only Nepali citizens but also of foreigners. Without fail this must be done with good intention.

Trade and labour unions along with other social organisations have to move on as required for social and labour tranquillity. Work discipline needs to be maintained for their own well-being and harmonious relations between the employers and the employees. Discipline and normal work hold great significance.

Attainment of required skills and abilities by the workers is considered essential for enhancing and improving productivity in the industrial and service sectors. Unquestionably, technical and vocational schools and institutes play useful roles in producing quality manpower in enhancing the economy.

Industrial houses

At a time when liberalisation and privatisation are gaining ground, the industrial houses and business tycoons have a towering role to play in creating a congenial atmosphere for greater economic and trade connectivity. This is the foremost activity that the Nepali business magnets need to carry forward.

Unfortunately, however, they seem less inclined to do so. Initiatives must come from them. Looking up to the highly hobbled government, which is deeply sunk into a political imbroglio, will not liberate Nepal from the economic stagnation and trade deficit now facing the country. Their mindset must undergo a change for better days to come.

Source: The Rising Nepal, May 21, 2007

Focus On Local Bodies

Minister of Local Development Dev Prasad Gurung has emphasised on the need to empower local government institutions to make service delivery stronger and effective. At a programme organised in the capital this week, Minister Gurung pointed out the fact that the government was serious about strengthening the capacity of the local governments to serve the people and address their aspirations. Outlining the context of the absence of elected representatives in the local bodies for a considerable length of time, Minister Gurung stressed that the duty of the government bureaucracy has become very onerous and seminal as they have to carry out several responsibilities to ensure that the people got the services according to their expectation. He made special mention of the role and responsibility of the local government institutions, including the DDCs and VDCs, to plan and implement local development activities so that popular expectations and aspirations are fulfilled without any obstructions.

Referring to the evolving context of the country, Minister Gurung remarked that the country had attained peace and normalcy and that the political parties were working to settle several issues through dialogue and negotiation. As the people are heaving a sigh of relief due to the evolving peace in the country, the local bodies should take special note of the incomplete development projects which occurred due to different reasons in the past, and these should be completed without incurring any delays. However, it is worrying to note that the VDC secretaries have not been able to operate in some parts of the Terai as armed groups have intimidated and presented obstacles in their functioning. The government should be serious enough to ensure that the law and order situation is maintained and local bodies are allowed to operate without any disturbances. Moreover, as per a provision in the interim constitution, all the political mechanisms should be established in the local bodies to ensure that local democracy starts functioning smoothly. Unless the local bodies are based on democratic values and deliver services appropriately, it will be difficult to satisfy the aspirations of the people.

Source: The Rising Nepal, May 21, 2007

Road To Economic Progress

Amrit P. Shrestha

What the modern industry needs is better infrastructure. Traditionally, infrastructure services across the world were provided by governments in limited areas like airports, electricity and roads. Today infrastructure must improve in all parameters, which requires immense financing through external and internal channels. Without basic infrastructure development, no sector can achieve any sort of target.

To keep the wheels of the economy running, countries must make enormous progress in attracting private investment in the infrastructure sector, as the government alone cannot invest huge amounts in it. In order to send the right signal to international investors, there is a burgeoning need to create sophisticated infrastructure in selected key cities and projects as seen in Beijing, Shanghai and Kuala Lumpur, which have emerged as the investor's choice in the last three decades.

Infrastructure needs three key inputs - large amounts of money, skilled manpower and selected projects. Governments must realise that the only way to become the nation's doorway to economic zoom is to give new thrust to infrastructure development. Thus, the Essential Facility Doctrine has been recognised by most of the developed and developing countries. Australia, Singapore, South Korea and India have been adopting the doctrine.

Investment requires long-term funds with a long payback profit period. More importantly, Public-Private Partnership (PPP) is a signal to investors in general that the policy framework is sound and environment conducive for investment. Such models have to be initiated in key sectors like roads, airports, power and tourism.

Nepal lacks the necessary physical infrastructure to qualify as an international investment centre. Investments must have easy access, and there should be well-developed infrastructure within acceptable parameters. At present, we must have suitable strategies to convert challenges into opportunities. Better infrastructure helps in alleviating poverty and expanding the industrial base because accessibility to services improves as a result of it.

Currently, GDP's contribution to infrastructure development is less than 4 per cent, which is less than the share of our neighbouring countries. Actions must be accelerated on the following track, to help build trunk infrastructures in the country. First, Modernisation or industrialisation require massive expansion of national highways, airports, electrification and telephones linking every village with the urban areas. Ground water exploration, minor irrigation, water supply and sanitation are other priorities.

Highways form the economic backbone of the country. Likewise, rain water harvesting and human resources management must be developed, which is sorely lacking in the country. Given the size of the country, air travel has become the swiftest mode of transport. Hence, Nepal should take bold steps to expand and upgrade its airport infrastructure.

Second, among the bottlenecks to achieving growth in the country is electricity supply. Power and its allied sector play a crucial role in economic development. Electricity is the lifeline of our lives as its use ranges from mundane applications to complex tasks and operations. Our productivity is affected because of this.

Third, the tourism industry could gather momentum if the government plans innovative promotions. Tourism should introduce new products such as monsoon tourism, helicopter tourism and the like. Such programmes will attract visitors, especially from India and Europe. With Nepal becoming a business hub especially for tourism, regional disparity can be minimised upto a certain extent. Likewise, growth of tourism will help enrich the lives of traditional workers and artistes. Unfortunately, lack of roads, accommodation, safety measures, well established communication systems and hospitality management centres are some of the hurdles in its promotion.

Fourth, building IT Parks in important cities can offer a unique confluence of advantages - robust physical infrastructure, power and data connectivity and trained technical manpower. All this will effectively reduce the operational cost.

Fifth, there is a need to hand over the entire infrastructure development to the private sector with no political interference. There should be no bureaucratic controls over enterprises. They should not be asked to get approval for minor decisions.

Sixth, an act to form an independent Infrastructure Authority, similar to the National Highways Authority in India, Afghanistan, Laos and the Philippines, has to be announced without delay. Meanwhile, a vision paper with priorities and national consensus must be flashed, emphasising on infrastructure development to attract investors and also to make the entire cycle of investment, productivity and wealth creation sustainable.

Seventh, special packages of tax incentives must be introduced as a tool to encouraging private enterprises or an undertaking engaged in the development of infrastructure facilities. This is particularly important for infrastructure developing companies.

Human development
Most importantly, the overall environment needs to be free from prevailing corruption and petty-mindedness. For the common man, good economics is all that he cares. The government should accelerate the process of human development by delivering services in electricity, transport, water and sanitation that the poor need in order to live and participate in economic growth.

A leader of outstanding merits, efficient bureaucrats and a graft-free culture are the invisible infrastructure to race with the modern world. Let us start from a good today to a better tomorrow.
(Shrestha is ex-director of the Department of VAT and a financial management and VAT expert deputed in Tanzania by UNDP)

Source: The Rising Nepal, May 21, 2007

Emerging Role Of Human Resource Management

Dr. Shyam Bahadur Katuwal

Human resource management (HRM) has been given importance in the academic and professional fields because of the role it plays in enhancing organisational performance. Presently, organisations are successful on account of competent human resource. Thus, human resource management is a requirement in facing competition successfully rather than fulfilling the legal and mandatory requirements. The role of HRM in Anglo-American organisations is said to be action-oriented, individual-oriented and future-oriented. However, in the case of Nepal, although the scenario of human resource management has been gradually shifting from record keeping of employees and providing piecemeal solutions to HR-related problems, it has not improved to the extent desired. Hence, Nepalese organisations are unable to face HR-related challenges, achieve business strategies and make them competitive and advantageous.

HRM in NepalDeveloping and utilising human competencies for organisational effectiveness in Nepal has received low priority from people involved in managing HR. HR managers are happy performing routine work concerning personnel administration, record keeping, welfare, discipline, labour relations and other operational issues rather than developing and utilising human resources and integrating HRM activities as a part and parcel of the business strategy. Managing human resources, therefore, is preoccupied with the traditional functions of personnel administration. Even after the changes in the socio-eco-political and technological environment in the country, Nepalese organisations face problems of low productivity, poor motivation, morale and satisfaction, adverse labour-management relations and so on. Such problems are more serious in public enterprises because of the unstable political environment, short-term political vision and excessive political interference in the day-to-day affairs of the enterprises. As per the Public Accounting Report 1997, the government blames the top executives of public enterprise for only unpardonable inefficiencies of the public enterprises. Except in some forward-looking organisations, linkage of HRM, including human resource development (HRD), with organisational performance and corporate strategy is still neglected.

Factors for the slow pace of development of HRM in Nepal are centralised organisations, lack of trust between labour and management, frequent changes of executives especially in government organisations and public enterprises, over and understaffing due to lack of appropriate human resource planning, feeling of seniority complex and lack of budget for HRD. The other emerging problem for the underdevelopment of HRM in some organisations is the protective market. The organisations operating in a protective market environment do not feel any responsibility of developing the necessary human resources for competitive advantages. Although it is mandatory to hire a labour welfare officer, many large organisations prefer to appoint a personnel manager/officer to look into the recruitment of personnel, including managerial ones. Thus, innovative human resource practices that emphasise a people-oriented, participatory, progressive and committed approach to HRM is out of bounds for most of the Nepalese organisations.The growing internationalisation of business has its impact on HRM functions. In the contemporary business environment, Nepalese organisations are in a constant state of competition. As the intensity of competition increases, the need for organisations to continuously improve their performance is a compulsion for their survival. The significance of traditional sources of competition like natural resources, technology and economies of scale is decreasing because these resources are easy to imitate. Since HR is an intangible, irreplaceable and inimitable asset of an organisation, the importance of HR in global competition began attracting the attention of Nepalese organisations since the 1990s with the liberalisation of the economy.

Direct investment by multinational corporations for global competition has forced organisations to find effective means of developing and utilising quality manpower. This, being so, the effective management of human capital, not physical capital, may be the ultimate determinant of organisational performance. Competition from multinational and domestic companies has compelled many enterprises to resort to downsizing, acquisitions, mergers or divestitures. The reorganisation will have an impact on the employees. They experience anxiety and uncertainty about their job in the new organisation. Thus, retention of quality employees is another concern of present organisations.The growth of powerful trade unions after the advent of democracy in 1990, introduction of protective labour laws, and increasing value of professionalism in the field of HRM, increasing size of organisations and introduction of new technology have further given impetus to changing the traditional role of human resource management in Nepal.An important key to the success in the gobalisation of business is the management of HR. With the changing character of competition, changed expectation of the employees, interest of the weaker section of the society, demographic changes in the workforce (increasing number of working women, young employees and dual-career couples with increasing awareness and education among workers and decline of blue-collar employees), the role of HRM has been changing.

The role of human resource managers, as a line function, is to coordinate HRM policies, programmes, procedures and activities with the business strategies for the attainment of corporate goals. Consequently, in order to cope with changes in the business environment, innovative HRM practices like Internet recruitment, use of psychological and behavioural tests for selection of employees, participatory goal setting, team appraisal and 360-degree appraisal are required in the different organisations.Participatory career plans, job rotation, need based training, attitude and communication training, challenging job assignment, team rewards, performance linked bonus, family directed rewards, greater transparency, outplacement service, exit interview and retirement counseling make HRM proactive to the global changes. Evidences indicate that HR practices influence employee attitudes, behaviour, perceptions, organisational climate and other human resource performance measures, which in turn lead to human resource performance and thereby organisational effectiveness.

Skilled labourIn the changed economic structure and patterns of competition, managers including HR professionals are required to facilitate the process of organisational development in place of controlling people through traditional personnel management. They must work to develop specialised skilled labour, manage a flexible work environment, create organisational constellations and strike strategic alliances for regular exchanges of manpower and information among the constellations. Competitive pressure, changing social values and need of employees have encouraged organisations to bring innovative HRM. Except in some big private organisations, joint venture banks, multinational companies and INGOs, the role of HRM is not considered yet to be of strategic importance to attain organisational goals in Nepal. Yet, it is expected to play a strategic role in making Nepalese organisations competitive in the years to come.

Source: The Rising Nepal, May 19, 2007