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

US Proposal : Instances Of Resettled Cases

D. Rose

THE Bhutanese refugee issue has been viewed with much importance in the latter days for different reasons. The resettlement proposal of the refugees by the western countries, including America, has been highly acknowledged as it is expected to bring a durable solution to the refugee impasse. The US proposal made public for the first time in Geneva by Ellen Saubrey, the US Assistant Secretary of State for Population, Refugees and Migration, has created confusion in the refugee camps. Hence, a brief discussion about the US resettlement scheme is needed so that the refugees have some knowledge about it.

Resettled Instances
The US has been resettling 75,000 refugees from different countries annually. It has also maintained a rich and vibrant tradition of offering refuge to those who fear persecution. The Department of State coordinates the admission of refugees and works in concert with other key government agencies - Department of Homeland Security, Justice, Health and Human Services. The US Refugee Admissions Programme is the global leader in this field and offers admission to the largest number of refugees in need of resettlement. The offer of resettlement as a durable solution to refugees is a crucial responsibility in a highly visible policy arena. Third country resettlement certainly benefits the refugees, the host country and the community offering the refuge.

Last year, about 1,500 Vietnamese refugees who had been living in the Philippines were resettled in the US. They were granted all rights as first class citizens of the US. The Bermudian refugees, survivors of the horrific massacre at Gatumba, were also resettled.

The legal basis of the refuge admission programme is the Refugee Act of 1980. The Refugee Admission Department is interested in the Bhutanese and Tibetan refugees, and was discussed in its forth annual public meeting. As this is a legal procedure, the refugees should not sense any suspicions as regards the US resettlement scheme.

In a period of almost two decades, numerous futile attempts have been made to repatriate the refugees. The steps taken by Nepal in this regard were less pragmatic. Since the inception of the issue, Bhutan has been refusing to accept its citizens in exile. Instead of taking back its people, it is preparing to evict another 80,000 Nepali-speaking people from the southern and eastern belt.

Bhutan has taken this US proposal as an opportunity to evict more Lhotsampas or Bhutanese of Nepalese origin living in the southern belt. It is also tacitly preparing to exclude them from participating in the country's first general election to be held in 2008. This indicates that the tin pot dictator is to carry on with its repressive mechanism.

Seeing no other way, Bhutanese leaders in exile have formally announced the second and the last movement against the Druk oligarchy. However, the refugees are still ambivalent about the credibility of the movement. Indian indifference towards the refugees' endeavours shall surely hinder the entrance of the refugees to Bhutan. If the movement fails this time as well, the issue will be even more complicated.

The Druk regime will never accept voluntarily these forcefully evicted people. Accepting them would force Bhutan into a democratic atmosphere, which is dead against the aspirations of the Druk dictator. The Bhutanese case is similar to that of the Palestinians. The Palestinians, who fled Israel in around 1948, are still not accepted. The acceptance of the Palestinians would change Israel from a Jewish state to an Arab state.

There is a saturated level of frustration and a feeling of insecurity among the refugee youths. They talk to each other in trepidation. Majority of the refugees are unemployed and seem to be swayed by the filthy motives of politicians. The refugees have been made hostage in the name of establishing democracy in Bhutan. Warehousing these refugees is a waste of humanity.

This is the right time for the refugees themselves to decide whether to accept or reject the US proposal. It might prove a hard blow to them if they fail to realise what they are waiting for. They must read the complexities surrounding this issue. They have the right to decide and speak what they wish. However, there is a web of deceit and suspiciousness among the refugees that has prevented them from speaking out freely about the option on hand.

Millions of Palestinians, neglected by the international community, are leading pathetic lives in the refugee camps of Lebanon and Jordon. Hence, if no grave decision is taken, the condition of the Bhutanese refugees would be similar to that of the Palestinians.

Local integration
The option of local integration also deserves special mention. Nepal should make its stance clear whether it is ready to assimilate the refugees wanting to be locally integrated into the Nepalese society, similar to what Ivory Coast did during the infiltration of the Liberian refugees in 1989. President Felix H. Boigny set an example by accepting Liberian refugees as "brothers in distress".

Any further delay towards solving the refugee deadlock may push the frustration of the refugees to its optimum. This shall invite sprawling problems for Nepal.
(Rose is with Bhutan Press Union)

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