Will It Stay The Course?

It is unclear whether the economic policies will be altered once the Maoists join the interim government

By SANJAYA DHAKAL

The signals coming from the Maoist leaders are conflicting as far as how they will conduct their economic policies once they join the interim government is concerned.

Dr. Bhattarai : Uncertainties remain

At various public forums, Maoist leaders like Dev Gurung and Dr. Baburam Bhattarai have voiced carefully toned-down approaches of their party. Whether on the issue of privatization or economic liberalization or foreign investment, the Maoist leaders have not outright discarded the current policies. They have made right noises about the need to further improve these areas.

“We are not against domestic capitalists,” Dev Gurung often says during public interactions. Dr. Bhattarai, in his interaction with private sector business community, does not fail to assure them about the Maoist intention of “helping the private sector in the interest of nation.”

On the other hand, there are equally confusing signals emanating from the Maoist camp. Their campaign to collectivize agriculture is well-known. A recently elected chairman of Maoists’ peasant wing Shiva Raj Gautam has publicly said that ‘a radical and revolutionary land reforms’ will be imposed once the Maoists come to power. He has said that the current Maoist policy for allowing up to 13 ropanis of land in Kathmandu valley and 10 bigaha elsewhere is only for this transition period.

In its recommendation sent to the Interim Constitution Drafting Committee a few months ago, the Maoists have stated that they want to fix a ceiling on private property.

With deep attachment to Marxist economy that calls for dismantling the existing relations of productions – which they term as being feudal and responsible for perpetuating poverty among the masses, the Maoist leaders have a lot of convincing to do as they are poised to enter the government.

Talking to The Himalayan Times ( December 4, 2006 ), Dr. Bhattarai said agriculture and radical land reforms top the Maoist agenda. Indicating towards bureaucrats, politicians and industrialists, he said, “Make no mistake, we will form a high-level commission of investigation and take everyone of these corrupt people to task. We will confiscate all the property that can be accounted for.”

Another economist close with the Maoists Dr. Maheshwor Man Shrestha, last week, told at a program organized by Independent Business News that the Maoists want to establish an inclusive economy.

"The Maoists want to build an inclusive economy where all the stakeholders' interest will be considered," said Prof. Dr. Maheshwor Man Shrestha, an economic advisor to the Maoists. Accusing the "feudal economic policies" for ruining the country's economic situation, Dr. Shrestha claimed the Maoists want to hold discussion in an open manner and without prejudice with all the stakeholders including workers and industrial/business community. "The Maoists aim to raise the standard of living of the people," he stated.

All these tough talks do not seem to have bothered the government as yet. Finance Minister Dr. Ram Sharan Mahat has said that the open and liberal economic policies of the country won’t be changed even if the Maoists join the government.

Addressing a program organized by Nepal Overseas Export Import Association this week, Dr. Mahat said, “When a revolutionary party has become a revisionist one, they will also change their economic policies.” He added, “It is not possible for a country who has already decided to walk on the course of reforms to turn back.” Likewise, Industry and Commerce Minister Hridayesh Tripathy said the government including the Maoists would be further “open and competitive.” “The Maoists have understood what happened in the unitary economy and closed society like in China . The industrialists and business community should not suspect a bit,” he said.

Only time will tell what the Maoists have in mind about the economic policies. Only time will tell if they will also undergo transformation in economic agenda as they have in political agenda by adopting multiparty competition. But if they, indeed, try to impose their ideologically-guided and outdated economic principles in this age of liberalization, it will be to the detriment of all.