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VOL. 27, NO. 32, April 25, 2008 (Baishakh 13 2065 B.S.)
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Courting Capitalists
Maoist leadership has made a number of moves to assure the business community, which still remains nervous over their economic policy
By SANJAYA DHAKAL
"For now, we are not going to implement any property ceiling. We don't have any policy of seizing capital/property. We want to develop domestic capital. We will promote the investment of capital for generation of employment and profit-making," said Dr. Baburam Bhattarai, senior Maoist leader.
His statement was among a volley of similar comments by the Maoist leadership in recent days.
As the news of impending Maoist win in the Constituent Assembly (CA) election hit, the country's only secondary share market Nepal Stock Exchange (Nepse) nosedived.
It was an indication of the nervousness of investors over the Maoists' economic policies.
Subsequently, Maoist chairman Prachanda and Dr. Bhattarai held a series of interactions with business community.
"We want to change the existing feudal economic relations towards capitalism by promoting domestic capital development. No one needs to worry about our policies," said Prachanda, addressing an interaction with the business community at a five-star hotel last week.
He said his party will strike a balance between investors' as well as workers' interests.
"We need to perform economic miracle now. We will focus on development of capital." He also hinted that Industrial Security Force (ISF), which has been proposed to bolster security in industrial sector, can be formed by accommodating Maoist combatants.
He added that his party was in close contact with international donors and Indian officials to continue their assistance in development.
"The business community need not have any doubts about us," he said, adding that socialism can be established only after capital is developed.
"We need to perform an economic miracle now," he said.
The business community, however, is yet to be fully convinced with comrades' words.
"Words and works are different. We want to see an immediate implementation of their words," said Suraj Vaidya, senior vice president of Federation of Nepalese Chamber of Commerce and Industry (FNCCI).
The business community has advised the Maoist leaders to continue with liberal economy and create environment conducive for investment. The private sector is worried over Maoist stance vis-à-vis economic liberalization and privatization.
"We are not yet fully convinced (with their policy) because of the ideology they carry. We want guarantee of capital, guarantee of investment and property, among others," said Surendra Bir Malakar, president of Nepal Chamber of Commerce (NCC).
One of the major points of discomfiture among the business community is what kind of labor policy the Maoists adopt.
In the past the Maoist-affiliated trade unions had been raising what the business community terms as 'unreasonable demands.'
"The labor policy will be their first test. If they continue with the demands they had made earlier, then no industry can run in Nepal. Even a recent World Bank report has shown that Nepal's labor policy is wrong-footed," said Vaidya.
"The Maoists have called for public-private partnership. That must include full partnership of private sector before formulating any policy, during implementation of policy and in the monitoring of its implementation," added Vaidya.
The Maoists have not yet clarified their stance vis-à-vis the ongoing reforms and economic liberalization, which is also a cause of worry for business community and development partners
