 |
| |
VOL. 27, NO. 21, February 01, 2007 (Magh 18 2064 B.S.) |
|
‘ Nepal should do its utmost to leverage the locational advantage’
By ANDREW HALL, British Ambassador to Nepal
A year ago, the peace process was still at a very uncertain stage. We did not know if the ceasefire and the just-signed Comprehensive Peace Agreement would hold firm. We were not sure that the UN would send a Mission to help Nepal establish the peace. We did not know if Seven Party unity would be maintained, nor whether a parliament and a government containing members of the CPN (Maoist) would be formed. All those things have, however, happened – building confidence that Nepal is firmly set on the road to peace.
Of course, it has not been plain sailing. The Nepalese people were promised elections – twice – but were let down. Now a third promise has been made, that the polls will take place on the 10 April. This time there can be no question of failing to meet the deadline.
Also in the past year we have seen new conflicts arise, above all in the Terai, but not only in the Terai. Marginalised groups in society are determined to secure fairer representation and equal access to their rights. It is vital that everything possible is done to convince them that the Constituent Assembly is the proper forum in which to consider these issues and it is overwhelmingly in their own interests do everything possible to enable credible elections to go ahead.
An essential component of the peace process must be the building of a more prosperous Nepal, in which all its citizens are able to exercise their rights to work and to support themselves. But when we turn from the political scene to the economic one, I think the record of the past year has been a mixed one.
We have seen no let-up in the pressures on business. Extortion demands, abductions and intimidation continue unabated. Organisations affiliated with political parties, criminal gangs and armed groups are all getting in on the act. Clearly this is an unacceptable situation. Above all, it requires a response from the Government and from the political parties – both to make it clear that action will be taken to prevent any of their organisations from undertaking this illegal behaviour, and that the police will have full support in cracking down on criminal and armed gangs. Failure to do so will not only damage confidence in Nepal’s business environment but directly damage the interests of employees if their jobs disappear.
I believe some union leaders also need to re-think their tactics. Time and again we hear of businesses being forced to close because they have come under union pressure. Unions of course have the right to campaign in the interests of their members but I would urge them to have recourse to legitimate peaceful methods – labour courts and arbitration tribunals. Pressure tactics will only be counter-productive, driving away investment and forcing existing businesses to close or re-locate.
I was recently looking at an index compiled by the World Bank on Doing Business – it compares countries across the world on a number of indicators, such as ease of starting a business, acquiring licenses, hiring and firing workers, protecting investors and enforcing contracts. I was sorry to see that Nepal has slipped down that index by 7 places in the last year – it now stands at only 111 out of 178 countries.
One of the most important challenges is ensuring that Nepal has a strong and stable financial sector. In this context I would like to note the ongoing case against the suspended Governor of the Nepal Rastra Bank. To avoid continuing uncertainty I would urge that this be resolved speedily and in a just way. I also think it is important that the Nepal Rastra Bank is strengthened, quickly, so that it can properly supervise the banking sector and all of the new, recent activity. It is also important that the Nepal stock market is managed responsibly – recent reports of deliberate stock price inflation on the back of loans are concerning – I know that the government has started to address this issue – I welcome that and would urge them to take this quickly to a conclusion.
I will not end on a gloomy note. Despite the challenges the outlook contains some very considerable opportunities which Nepal can take advantage of. The increase in tourist flows is one immediate and striking example. And, as many of you will know, the United Kingdom provides the second highest number of Nepal’s tourist arrivals. I believe there is still a large and barely tapped UK market there. But it will not just fall into Nepal’s lap – work needs to begin, and begin soon, on improving the necessary infrastructure to support higher tourist flows: everything from airport improvements to roads and traffic management, to waste disposal, to reliable power and fuel supplies.
In the medium term I believe Nepal has another great natural advantage – and that is your neighbourhood. It will not have escaped your notice that Nepal lies between two enormous Asian economies, India and China, each growing at rates which make our eyes water in Europe. Such is the importance we attach to them that British Prime Minister Gordon Brown visited China last week and is in India this week. Nepal should, I believe, do its utmost to leverage the locational advantage it has so that it too is a beneficiary of Asian growth.
(Excerpts of the statement delivered at the Annual General Meeting of Nepal Britain Chamber of Commerce and Industry)
KU AND KHETAN GROUP
Productive Collaboration
Khetan Group (KG) and Kathmandu University (KU) signed an agreement for establishing collaboration on academic field
By A CORRESPONDENT
Khetan Group (KG) and Kathmandu University (KU) signed an agreement for "establishing collaboration on academic, research and professional matters".
The agreement was signed by chairman of KG Rajendra K. Khetan and Dean of KU- School of Management Prof Subash KC.
Under the agreement KU will use KG as laboratory for its management students and exchange cooperation on management trainee, internship, field visits and training etc.
Addressing the program, VC of KU Dr Suresh Raj Sharma said that Nepal needs to create wealth before distribution and management of the corporate sector and students of the country will help the state to recover from unrest.
On behalf of Khetan group, R K Khetan, Chairman of Khetan Group expressed that the Group has just acquired approval of operating a Life Insurance Business. It soon will be launching Life Insurance Product in the Nepalese Market in the name of "Prime Life Insurance Co Ltd." Company has a capital base of 360 Million and it shall be issuing 30% of shares to public through stock exchange.
The group is successfully doing business in Non-Life Insurance in the Nepalese Market through "Everest Insurance Co. Ltd." and after the establishment of "Prime Life Insurance Co. Ltd." the group can now be analyzed as the serious and the promising player in the Insurance Industry of Nepal.
The main objective of the collaborative actions is to establish a business-academic partnership framework for contributing to the development and utilization of professional management resources and practices through the use of each other’s strengths, experiences and resources that will eventually strengthen management capacity in the country.
In order to promote cooperation, the two institutions have agreed to work together in various areas.
Under the agreement Khetan Group will provide opportunity to KUSOM students to carry out their academic assignments, including corporate projects, in areas of mutual interests and needs and will support them in completing their assignments, including practical guidance.
