Promote foreign trade

It is sad to note that the "unprofessional and unethical" behaviour of our business community has jeopardised Nepalese exports to Japan. The other factors that have impeded attempts to promote exports to Japan are lack of awareness about the market, weak communication between Nepalese businessmen and their Japanese counterparts, lack of infrastructure to attract Japanese investors and our own snail-paced bureaucracy. There is no doubt that the inability to change our way of doing things is one of the main causes for lack of development.

With the restoration of democracy, there were high hopes that the government would, at long last, seriously take up the task of promoting trade and development and that it would implement policies which ensure long term benefits. However, reports down the last ten years suggest that there has hardly been any progress on the economic front. Foreign trade is no doubt a vital component of the economy and as such it must be strengthened. With an average economic growth of 3.6 percent over the past five years, there is certainly very little by way of achievement that we can be proud of.

There are a number of underlying constraints as far as foreign trade is concerned. Firstly, neither has the government formulated clear policies on foreign trade, nor have the consulates of different Nepali Embassies abroad helped the business community to increase export. Secondly, high interest rates for bank loans and high freight charges are not export friendly. Moreover, competition from low quality Indian goods has also hit Nepali exports hard. What is saddening is that the government has focused more on production than marketing. Besides, the country has failed to maintain the quality of products. In such an environment, how can one expect the government to promote our products in the international market?

In the past few years, the overseas market has seen unexpected growth. But the domestic market and industrial production has remained stagnant. The reasons for this state of affairs are no other than high interest rates of bank loans, unfriendly market reform, absence of proper infrastructure, lack of long term plans for enhancing the rate of industrial growth and sheer inefficiency of the prevailing system. These make it clear that the government has not really been encouraging economic growth. Apart from this, the unhealthy nexus between politicians and businessmen is also a matter of grave concern. If the government wants to put the country on the track of development, it has to promote the export of Nepalese products and encourage economic growth. The government can continue to ignore the issues related to foreign trade only at great cost to the economy.

UNCTAD X: Casino economy under fire

By Ratnakar AdhikariThe Tenth Session of United Nations Conference on Trade and Development (UNCTAD X) which ended in Bangkok on 19th February was different from earlier UNCTAD Conferences on a number of counts. Firstly, the Conference was held after the Seattle debacle and failure of the third ministerial Conference of the World Trade Organisation (WTO). Secondly, it was the first major Conference on trade issues for the new millennium.

Thirdly, it was held after the financial crisis of East Asia, Russia and Brazil which temporarily ravaged the structures of some economies and almost sent the global economy into a spin. Fourthly, the timing was such that almost all developing countries were fed up with the functioning and prescriptions of Bretton Woods Institutions. And finally, there was growing demand for resurgence of UN institutions i.e., upsizing of UN bodies and downsizing of other multilateral bodies, which are, ostensibly, involved in global economic governance.

The speeches delivered by the heads of the States of the Association of South East Asian Nations (ASEAN) during the Conference were testimony to the fact that unfettered globalisation would not lead the global economy to prosperity. All of them, one after another, showing solidarity with the common cause, maintained that managing globalisation was the most significant challenge of the new millennium.

Frustrated by the near futile attempts of least developed countries to integrate themselves into the global economy, UN Secretary General, Kofi Annan made it abundantly clear during his inaugural speech that time was ripe for a "Global New Deal", whereby benefits would be guaranteed to countries which stick to an agreed mix of policies designed both to favour investment and to ensure that its benefits are shared by the population as a whole. "Can we not attempt on a global level what any successful industrialised country does to help its most disadvantaged or underdeveloped regions catch up?" he questioned the plenary.

Globalisation is an unstoppable phenomenon, but its pace can certainly be controlled. The major proponents of globalisation namely, the World Bank, International Monetary Fund (IMF) and WTO have come under severe attack in the recent past because of their relentless pursuit for globalisation without paying attention to the suffering of millions of people in poorer developing countries especially in Sub-Saharan Africa and South Asia.

The manifestation of frustration and anger come in different forms ranging from street demonstration at the time of World Bank’s annual meeting in Washington or at the time of the third ministerial conference of WTO in Seattle, or during the World Economic Forum in Davos. Or even worse, by throwing pie on the face of Mr. Michel Camdessus, the outgoing Managing Director of IMF on February 13, during UNCTAD X itself that too within the premises of Queen Sirikit Convention Centre, the official venue for the UNCTAD X. There will be more such pies in the making if these institutions do not learn from their mistakes and do not exhibit a more benevolent attitude towards the plight of poorer countries.

Delivering his keynote speech on 15th February, Director General of International Labour Organisation Mr. Juan Somavia challenged the entire premises of globalisation. In his view, globalisation has not been able to fulfil even minimal aspirations of the people. This has resulted in a backlash. He opined that over the past 50 years or so, globalisation has only benefited the richest nations and people, thus promoting what is known as "casino economy".

Globalisation is not an end but only a means to an end which is much broader than even the most vociferous protagonist of globalisation can comprehend. One has to wholeheartedly welcome globalisation if it results in increased employment opportunities, reduction of poverty, economic equity and development that can be sustained for generations together.

On the contrary, if globalisation results in reduction in employment opportunities, increase in poverty, economic inequity and short-term development, it deserves a well-argued criticism. If it continues to neglect the interests of the masses, it will lose its legitimacy.

As rightly pointed out by UNCTAD Secretary General Mr. Rubens Ricupero "a world economic system that fails to offer poorer countries, and the poorest parts of the population within them, adequate and realistic opportunities to raise their living standards will inevitably lose its legitimacy in much of the developing world. And without this legitimacy, no world economic system can long endure".

Heads of UN bodies and other multilateral institutions echoed the concerns raised by developing countries and these were aptly reflected both in the Bangkok Declaration and Plan of Action endorsed by 146 participating member countries, UNCTAD X is considered as a victory for developing countries.

The Bangkok declaration, among others, expressly mentions that development issues will be made part of the proposed new round of trade negotiations in WTO. The declaration further says that success of international development efforts depends on account being taken of all stakeholders, including the private sector, non-governmental organisations (NGOs) and academia.

The declaration asserts that globalisation needs to be managed properly if it is to become a powerful and dynamic force for growth and development and to lay the foundations for enduring and equitable growth at the international level. It also speaks of the need to integrate least developed countries into the multilateral trading system, if the benefit of the same is to be shared proportionately.

It also underlines the need to raise overseas development assistance from industrialised nations to the committed level. Finally, the declaration seeks commitment to provide debt relief to poor countries by writing off existing debts, but only if the amount has been diverted for social development.

Developing countries are happy to see the re-birth of a global institution which shows concern about protecting the interests of countries marginalised through globalisation.

The Bangkok Conference has given the much-needed mandate to UNCTAD and it is now up to this UN body to prove its mettle. If it does so, developing countries should try and elevate this institution to the level of a global economic policy making body, the decision of which should be abided by all other multilateral institutions, including the World Bank, IMF and WTO.

Jung Bahadur remembered

By D L Bhandari

Jung Bahadur Rana, prime minister through 1846-1877, commanded absolute authority over the affairs of the state on the strength of, sorry yes, intimidatory ways. Never pushed into bad patches

--- no matter how wily the conspirators --- he ruled with an iron fist for thirty years and paved the way for a truly oligarchic Rana dictatorship.

He was not born with a silver spoon in his mouth. On the contrary, he worked his way up the army ranks and corridors of power in 19th century Nepal. By sheer grit of determination albeit with more than generous doses of g

uile and treachery, he did it .

To begin with, so other-worldly was his presence of mind that he could turn any unexpected development to his best advantage. One of such many brilliant examples is the macabre use he put his brain to in what is known as the Kot massacre which eventually cleared the deck for him.

Undoubtedly, he possessed the killing instinct. These attributes were something he was rich in. In fact, he put everything in him to best use before and after he became lord and master for life.

Even the royals looked up to him before speaking on anything from wedding to politics.

The latter, however, figured much less in conversations for the obvious reasons that he never spared any one who harboured ideas which clashed with his own. Full stop. But, as they say, there is always a brighter side of the coin.

Although he did not believe much in two-way communication, he was also, however, a classy conversationalist if we consider what he threw up by way of a reply to a query from one of the occupants of St James Court while on a visit to England. As someone who was ever ready to protect the interest of imperial power in the Asian sub-continent, Jung Bahadur Rana had been invited to England in 1850 during the reign of Queen Victoria.

The visit epitomised his political dexterity although it is also argued that Britain simply wanted to pamper him to ensure his continued cooperation under the prevailing circumstances. But that is a different thing since none back here then might have expected general peace with him at the helm.

That visit made him the first prominent Asian to visit England.

Let us come around to an incident that once and for all demonstrated his conversational skills and rare presence of mind.

Seated alongside the royal hosts, he is said to have listened to a songster rendering a popular number with rapt attention amid usual razzmatazz even as the dancers rocked on the floor.

The performance in question was followed by a big hand from the audience. And, to the surprise of the hosts, Jung Bahadur too is said to have generously joined the round of applause.

As has been further said, he was jocularly asked why did he clapped since he may not have followed the English number.

In what may be said to be in a rare streak of brilliance, Jung Bahadur is reported to have said, "I did not understand the lyrics that’s true, but can any one of you understand the lyrics in a nightingale’s song which is as pleasing to the ears? "

With this he warded off any residual doubt that he could be made a fool of even if caught in a tight corner as this.

The 123rd death anniversary of this most-feared and resourceful prime minister ever falls on February 25 that is tomorrow. So why not remember him ?

No confidence motion against PM

By Bijay Lal ShresthaWhen Nepali Congress designated Krishna Prasad Bhattarai as "the next Prime Minister" prior to the general elections last November, the announcement was received with mixed reactions. Some commended it as a generosity on the part of Girija Prasad Koirala while others commented it as nothing more than an election ploy, a compulsion dictated by the extremes of corruption, demeaning the leaders, the legislators as well as political parties.

Because the Nepali Congress was in charge of the country’s administration for most of the time following restoration of democracy, it bears the maximum responsibility for all that went wrong and this risked the defeat of the Nepali Congress in the third general elections.

This is evident from the 42 seats that would have gone to the UML had it not been for the split. With these 42 seats, the UML would have got its majority of 111 seats. On the other hand, the above announcement enabled the Nepali Congress to go for election as a single solid block, unlike in the second general election which reduced it to the second position. One must take one’s hat off at Girija’s very smart election strategy. His inner mind started revealing almost soon after the announcement of the first Council of Ministers. Bhattarai had to complain against his own party’s getting more intolerant than the opposition parties in criticising him and his government even before expiry of the customary honeymoon period of 100 days. Finally, decisive move from Bhattarai’s opponents was made to have the vote of no-confidence proposal submitted to the NC parliamentary party despite what was compromised between the top two leaders for Bhattarai’s departure with dignity after the winter session of the parliament. But Girija struck when the situation was in his favour.

In fact, Bhattarai’s government deserves what has now befallen on him. His irresponsible public statements on petty corruption issues, and granting privileges to his voters in illegal activities, his hyperbolic promises for water supply and economic development comparable to Singapore and London and his voluntary apologies to the Indian Prime Minister, his leniency to the tainted and immoral ministers rightfully raise the question on his relevance in the office.

But another question is: Who would succeed him? How can a difference in situation be expected when the actors and the protagonists have not changed? The present scenario give rise to the following situations:

Situation No. 1 : Ordinarily, the NC government should continue headed by whoever gets elected as the leader of the NC parliamentary party.

Since the contenders are still far apart, as the media reports, this normal and logical solution does not appear to be a distinct possibility.

Situation No. 2 : There is as yet no sign of softening of the stands taken by the top two leaders. Bhattarai finds Girija’s humiliating action difficult to swallow. He knows very well that there is no come back for him. More so in view of his falling health. Girija, on the other hand, cannot forget the type of treatment meted out to him. Because both do not bend, both have to be broken in the best interest of the party. Both of these leaders are not averse towards handing over the leadership to the second generation leaders. So it is the time to test the tact and skill of the second generation leaders so as to ensure that, even among them, the premiership goes to a truly clean figure who has not damaged his image.

The new prime minister should also be able to assure the people that he or she will correct what had gone wrong in the country following the restoration of democracy. This will also check the declining utility and relevance of the Nepali Congress. If the government must fall now, the alternative is the coalition.

Situation No. 3 : If the situation No 2 does not materialise, the next possibility is the coalition government with UML. The UML is now thrust upon a situation where it can reap plenty of political mileage as both leaders claim significant numbers of legislators supporting them..

If UML decides to join hands with Girija, it may prove more generous and liberal, better than in its earlier coalition with him, to start with.

When the situation takes a volte face, he might become a hard nut to crack. Bhattarai’s health does not permit him to travel long and so he is likely to be seen as a fading politician which may motivate his camp members to desert him. The lust for power and pajero may promote possibility of coalition with RPP and others as well, as they may prove easier partners. The longer the coalition survives, the greater the possibility of desertions, and thus, once his position is secured, he will then start hitting all those who do not live by his command.

If UML prefers Bhattarai, it will be in a much better position to bargain, if the press report of his minority support is to be believed. At this time, Bhattarai has appeared to be unusually unbending. The present situation may be the most humiliating in his political career. For retaliation, he may be expected to be more lenient on his terms and offers to shatter Girija’s dream of becoming the Prime Minister for the third time.

If successful, this will also discourage his people from crossing over to Girija. Bhattarai may also be hoping having the floating legislators. Presently, going by the press reports, Bhattarai is in a desperate position and maximum concession can therefore be exacted from him. His only concern now appears to be decisive on a retaliation.

Whichever camp UML decides to join, it may be well advised not to share the chair with the smudged ministers. If handled honestly and cleanly, this opportunity may turn out to be a stepping stone for majority in the next general elections.

But it remains to be seen if the foreign powers whose influence are widely reported in any Nepali Congress government will be in favour of the coalition with the UML with its strength of as high as 69 legislators in the lower house alone.