NC division over appointment

Finance Minister Mahesh Acharya did indeed reveal the other day that the ruling Nepali Congress party is suffering from intense intra-party differences that is hurting the nation. This has come despite the occasional claims by Prime Minister Bhattarai and the NC President GP Koirala that there are no differences. Apparently, Minister Acharya’s resignation over the impending appointment of Dr Tilak Rawal as the new governor of Nepal Rastra Bank (NRB), which came at the Prime Minister’s behest despite the Finance Minister’s disagreement, is a pointer to brewing crisis within the ruling party that may prove disastrous if not duly checked in time.

It is indeed unfortunate that Acharya had to openly announce "persistent differences" with the Prime Minister as the cause for his mutiny. But going by the reasons he cited for the move, it appears that he is not altogether wrong in wishing ‘someone else’ at the helm of the central bank. Probably, there would not have been much furore over Dr Rawal’s appointment had the matter been decided after mutual discussion and consensus. But it should also be borne in mind that Dr. Rawal had been the chief executive of Rastriya Banijya Bank till a few months ago and the bank’s performance had been none too good during his tenure. In fact, a highly classified report with the Finance Ministry suggests that figures have been tampered and twisted to show the bank in good light. Another committee formed by Nepal Rastra Bank is now looking into the matter and reports say its preliminary investigation tend to confirm earlier findings. Acharya’s wish to have an efficient, dynamic and untainted personality at the helm of Nepal Rastra Bank is totally understandable. Such a person would have had the necessary mandate to carry out needed reforms and to take the nation on the right course as far as financial sector is concerned. Whether the resignation is accepted or not, it has only helped to dignify Mahesh Acharya’s position. And Acharya was a person who has stood by Bhattarai in the Nepali Congress Central Working Committee just a few short weeks ago when NC parliament members were seeking a replacement of the parliamentary party leader.

The way the country is driven economically depends much on the quality of leadership the government displays in this sector. And naturally, the role of a Finance Minister is significant. But how can a finance minister work when things do not move quite the way he likes them to be? In any case, it will be difficult for a minister to work with a person whom he sees as unfit and incompetent for the job as his top aide. For it must not be forgotten that in Nepal, the Finance Ministry controls the Nepal Rastra Bank and the bank is answerable to the ministry. The World Bank’s warning that Acharya’s departure would "seriously jeopardise" the upcoming Paris Aid Group meeting, from the perspective of Nepal, also holds some water given the reform-minded policies pursued by Acharya.

The resignation clearly points to serious differences between the camps of Prime Minister Bhattarai and Party President Girija Prasad Koirala. The fact that Bhattarai wanted to keep his west-regional vote bank in parliament in good humour by appointing Dr Rawal, who is said to be loyal to influential second generation leader Sher Bahadur Deuba, also speaks volumes in this regard. Acharya’s allegations that his party has faced many problems but "never seriously tried to overcome them" and his open admission
that the present "majority government lacks vision" also reflects the differences. It should be noted that the appointment of qualified, able and efficient people in responsible positions is a must and the political leadership must rise above petty interests while making decisions. The absence of rational leadership means the nation will suffer much in the long run. In whatsoever way this crisis is resolved, Acharya clearly comes out as the winner.

Globalisation and its impact on Nepal

-By Ratna Bir Tamrakar

While the predominant thought promoted by the developed world is that there is no alternative to globalisation, developing countries face uncertainties and hardships due to this pervasive wave. The chief beneficiaries of globalisation have been the developed World and rich countries. Due to globalisation, Third World countries are losing much. In real terms, the globalisation process has given way to economic and cultural domination of weaker developing countries.

The impact of globalisation is clearly evident in the exploitation of resources of poorer nations for further enrichment of advanced countries. Most developed countries with inherent imperialistic characteristics are today re-emerging and they are being assisted by an indigenous aspirant bourgeoisie.

The social and economic effects of globalisation in the Third World have been disastrous. Unemployment, food shortage and famine that had occurred in some parts of the world due to globalisation has brought in a deeper economic crisis.

Impact on agriculture: Agriculture is now fast emerging as an area for hunting huge profits and so big monopoly houses are showing interest in investing extensively in agriculture. Under globalisation, the land itself has been converted into a means of investment of more and more capital for fetching maximum profit for a few industrialists. Thus the concentration of land in the hands of the few and increase in the number of agricultural proletariat or semi-proletariat masses are a consequence of globalisation. The present focus on export-oriented products is gradually replacing food crops thus hampering food production. Globalisation is thus further deepening food insecurity all over the world. Thus, food growing land is being diverted to non-food crops and farmers are being displaced on a massive scale and natural resources are being overexposed.

Impact on health sector: Transitional pharmaceutical industries are exploiting indigenous knowledge on biodiversity on the one hand and selling needless drugs/medicines to the poor in underdeveloped countries on the other. Aggressive advocacy of intellectual property rights has overshadowed indigenous people’s customary rights. The destruction of the environment, land, forest and water is creating hardships for the common people. People are being forced to migrate. Women and children are the most vulnerable and are being pushed into more exploitable conditions of work. They are being exploited in various ways. They are often displayed in sexy advertisement, quasi-pornographic materials and movies. Thus, commercialisation of female bodies as sex object is increasing.

Impact on Nepalese life: Another pertinent impact is the change in social norms and values in Nepali society. The Nepalese who have come into contact with Western society through various media have begun to look down upon their own tradition and culture. The expensive consumer products of multinational companies such as disposable drapers, baby and canned food, imported liquor and soft beverages are being consumed without any idea of their impact on indigenous society and culture. The concept of globalisation is a new thing for a country like Nepal with a small domestic market and limited technological know-how. In the aftermath of economic crisis of the mid 1980’s, Nepal approached IMF, World Bank and other international agencies for help. Consequently, a series of economic reforms like devaluation of the Nepalese currency and currency basket system for exchange rate management and other measures were introduced at the behest of International financial institutions.

After 1990, new industrial and commercial policies were introduced and foreign investment was invited in the form of joint ventures. Thus, economic globalisation was gradually undertaken at the behest of International financial Institutions. The concept of globalisation was considered in terms of economic liberalisation, free trade and privatisation. But with globalisation, the decision making power of the government is being taken away by international institutions thus weakening the former’s capability.

The Structural Adjustment Program (SAP) introduced by World Bank and IMF in response to the deteriorating economic scenario in least developed countries was implemented during the Panchayat regime. But various measures for economic development taken by the government had little value and had failed to improve the lot of poor people.

More than 90 percent of poverty stricken people living in thousands of scattered villages throughout the country have nothing to do with liberalisation, entry of foreign investment and new trade policy. The high inflation has hit them most as they have to buy in the open market. Even if reforms succeed in spurring economic growth, the positive impact of these measures, that is, creating more job opportunities at higher wages is yet to be felt by rural people.

Globalisation was intended to wipe out the financial crisis and poverty of Third World countries, but it has benefited only a few elite groups. Unnecessary conditionalities imposed by donor countries on management and other aspects of project implementation cannot meet the needs of the poor.

In reality, globalisation can be viewed both in positive and negative terms. It is useful where competition exists. Globalisation provides opportunities by interfering in economy, culture and technologies and helping to alleviate poverty in Third World countries. People's lives have been interwoven with global ideas and global technologies. The global market is dominated by international trade and investment. Equally important for competing is efficient marketing.

However, markets and production in different countries have become increasingly interdependent due to the dynamics of trade in goods and services and flow of capital and technology. A country like Nepal needs sustainable economic growth. The only viable long term solution to the issue of unemployment and poverty lies in building competitive production capacities.

Nepal’s efforts towards economic development in recent years have been hampered by rampant corruption. Moreover, the commission fed politics, and corrupt bureaucracy have jeopardized economic development in the country.

Wanted: Corruption specialist

-By Malcom X

Here’s an offering for the position of a corruption specialist. Highly experienced and qualified candidates with multi dimensional personality are encouraged to apply for this multi million dollar, multi pronged, multi disciplinary project on corruption to be financed by multi-lateral agencies including some of capital’s best known international bodies. Interested candidates are requested to submit their resume with sound recommendations. Here’s the details of the work:

1. Job
In line with the aspiration and declaration of Honourable PM of Nepal, to make Nepal a corruption free zone (CFZ) within three months, a high powered, high level committee has been formed to achieve his ambition. The job of the specialist is to provide necessary intellectual and technical inputs to draw out a time bound strategic plan outlining possibly why, where, when and how the corruption is to be totally eliminated from Nepal. The strategic plan should entail detailed time-bound action plans involving corruption tree, something akin to problem tree in a long framework. The specialist will work in close collaboration with Nepal Police, Nepal Army, officials of the Judiciary, Tax and Custom Officials, Procurement Agencies and Major Construction Project Works. The specialist will develop rapport with major donor agencies. The specialist will also perform the role of a resource person for a series of corruption seminars to be organised in the country.

In addition, eligible candidates should possess demonstrated capacity for strategic and tactical thinking, have a strong result oriented personality, possess team work and a commitment to work in a typical Nepali style environment.

2. Requirements
Candidates with a PhD will be preferred. However, it is not a prerequisite. However, candidates with a proven track record of corruption are also encouraged to apply. Foreigners with at least a couple of years of experience in Nepali style of work are highly appreciated. Their working knowledge of Nepali language will be an asset in performing the task. But American Peace Corpse Volunteers need not apply. The candidate must be able to draft papers in sweet English and to produce volumes and volumes of reports within a couple of days.

3. Work station
The project will be stationed inside Kathmandu Valley. However, the Specialist may need to travel around Nepal. But this is not binding. Where necessary, such travel arrangement will be taken care by GON.

4. Project duration
The project is initially scheduled for three months but could be extended to an infinite period, depending upon the calibre and performance of the candidate.

5. Salary and perquisites
The project offers a competitive salary on an international scale, excellent benefits, and opportunity for professional growth. There will be a car driven by a Nepali Chauffeur, a maid to cook the meal, and even a house manager to take care of the residence.

between the line
The hijacking: Another Kargil?

-By Kuldip Nayar

There has not been a word of condemnation by the Islamic Republic of Pakistan where the Indian Airlines IC-814 craft was first taken. Pakistani Foreign Minister Abdus Sattar merely shrugged his shoulders and paid little heed to the religious tenet that man’s relationship with God is not unrelated to man’s relationship with man."

It is, however, more than a coincidence that Sattar’s remark tallied with that of the hijackers’ subsequent demands. He said that it was up to the government of India to establish contacts with the hijackers and save the lives of passengers. The hijackers, after reaching their sanctuary in Kandahar, said the same thing. They wanted to talk only to the government of India. They rejected the UN’s good offices to communicate their demands and to bring back New Delhi’s reaction.

Sattar has abused the Indian media. It is nothing surprising. He was not popular with the press even when he served twice as Pakistan’s High Commission in New Delhi. He wears the anti Indian bias on his sleeves. As expected from a prejudiced person, he suspected an Indian trap. He should know that no country plays with the lives of its nationals to put another country in the wrong.

In the month of Ramadan, Sattar, a devout Muslim as he is, should have expressed anger over the act of hijackers and reminded them of Allah’s punishment against, those who go astray," as the Koran says. Instead, he poured venom against India. Human lives and human rights were involved, even though Sattar does not like this country. The Taliban, although Pakistan’s creature, behaved better and said that its conscience did not allow it to let innocent people get killed.

It is still a matter of inquiry how the hijackers got into the Indian Airlines (IA) plane. Apparently, they sneaked into it without going through the security. In a note sent to the Home Ministry, the Airlines managing director Aivalli Veeramma has said that there was no passenger connected from the Pakistan International Airlines (PIA) to the Indian Airlines on that date ( the hijacking day). This contradicts Foreign Minister Jaswant Singh, who said that the hijackers left the PIA flight and boarded the IA.

Still, two things are intriguing. One, four of the six hijackers are Pakistani nationals. Two, and this heightens the suspicion of Islamabad’s hand is the visit by Mohammed A Chemma, the first secretary in the Pakistan Embassy at Kathmandu to the airport in his embassy car on the day of the hijacking.

He reportedly visited the arrival and departure lounges. Cheema is said to have been reportedly accused by the Nepali police chief of involvement in handing over 30 kilograms of RDX to a Sikh militant in 1998.

Islamabad’s mere denial of involvement may not do. After New Delhi’s suspicion of Pakistan’s hand, it has become incumbent upon the General Musharraf government to appoint a Pakistani Supreme Court judge to look into charges of Islamabad’s complicity. No amount of attacks on India, as Sattar is doing, can cover up the matter. The inquiry is necessary also from another angle. The Taliban government as Kabul has captured 90 percent of Afghanistan territory through men and arms supplied by Islamabad. And Pakistan was the first country which gave immediate recognition to the Taliban government.

Islamabad could have put pressure on Kabul if it had the safety of some 150 men, women and children uppermost in its mind. Instead, it took hours to clear the relief airbus to fly over Pakistan airspace to reach Kandahar. Pakistan TV began maligning New Delhi. Telephone lines of the Indian Embassy were cut off to stall any contact with the outside world. All this strengthens suspicion against Islamabad.

The Taliban is so indebted to Islamabad that even the slightest hint from it would have sent them scurrying to rescue passengers. The whole operation may have been planned by the two, Islamabad and Kabul. And it is quite plausible that after giving shivers to India, Pakistan may have told the Taliban to get whatever mileage they could from the incident. It is the doing of Pakistan’s inter Services Intelligence, " Khalili has said. He represents Afghanistan in Delhi since he belongs to the ousted government of President Rabbani. He was frank enough to tell a TV network that such a hijacking was not possible without the ISI men planning and executing it.

What stands out clearly is that the military junta at Islamabad wants to keep Pakistan people’s attention focused on one anti Indian adventure or the other. It seems to be the only things which is silencing murmurs against the military rule. Hostility against India is what provides the country is ethos. In such an atmosphere, there is little scope for ventilation of disillusionment against Musharraf for not delivering the goods. He was the author of the Kargil tragedy. He may have also blessed the hijacking, another tragedy. This may be his way of erasing the humiliation he suffered at Kargil.

Pakistan is, however, playing with fire. First Kargil and then the hijacking everything cannot be a one way traffic. India can retaliate too. It is difficult even to imagine what can happen. The confrontation in the past has only adversely affected the plight of the common man. It may be worse this time.

Kashmir remains an unsettled problem. The Shimla Agreement and the Lahore process have conciliated it. Prime Minister Atal Behari Vajapyee has also offered to hold talks on Kashmir. But no dialogue can take place at gun point. Normal conditions are a prerequisite to the talks. If Islamabad continues to indulge in operations like Kargil and hijacking, there is no possibility of even a semblance of normalcy. The situation is bound to deteriorate further if the Pakistan aided groups to do not give up such attacks as on the military headquarters and on the headquarters of the Special Operations Group (SOG), comprising the Kashmir Police.

Pakistan should seriously ponder over what its interference though ISI or otherwise would lead to. Since Sattar is the most experienced and mature person in the military set up, his responsibility is many times more than that of his other colleagues in the government. True, his hatred for India gets better of him. But he has the foreign service training and experience to visualise the scenario beyond the short lived publicity. With the two countries possessing nuclear weapons, there is no alternative to peace.

That the world leaders have been silent over the hijacking is all the more reason to realise that the third world has no place in their scheme of things, except for selling goods and dumping what their own countries reject. They are not interested in human rights in this part of the world. Their reaction is political. We have no sort out our problem between ourselves.

One nostalgically recalls the civilian rule in Pakistan. It is not even thinkable that a democratic government, however hostile to India, would have indulged in the methods of this military junta. It says it wants to have talks with India. But this is no way. The Musharraf government will have to prove its credentials before New Delhi can sit when it across the table. At present, Islamabad is doing just the opposite.