Return those vehicles

It reads like a mini who’s who of Nepalese officialdom past and present. It smacks of the culture of impunity that hobbles our public life. Reports are that a galaxy of bigwigs have been hanging on illegally to as many as seventy motor vehicles belonging to public corporations, government departments and donor funded projects. According to a blacklist compiled by the Parliamentary State Affairs Committee, most of them are influential politicians and their kith and kin, including two former prime ministers, former ministers, a battery of ex-chief justices of the supreme court, MPs, personal assistants of former ministers and sundry political leaders. One of the offending personalities is a former deputy prime minister much given to preaching morality at others. The vehicles were taken from corporations and departments including the Nepal Electricity Authority, Nepal Telecommunications Corporation and the Departments of Roads and Forests which have ample rolling stock, with the electricity authority topping the list in the numbers of vehicles involved. The vehicles themselves range from Pajeros and Prados to motorcycles and even two bulldozers from the Department of Irrigation. Some of these have been kept for as long as twelve years. The bigwigs have been hanging on to the vehicles despite warnings of legal action from the Commission for Investigation of Abuse of Authority. The CIAA has even considered desperate measures such as impounding the vehicles in the streets.

What is absolutely amazing about this affair is the eminence of many of the personalities involved. They are the kind of people who should be setting the moral tone in our public life. Unlike honesty which is said to begin at home, uprightness in public life should come from top. We have heard a great deal about the trickle down effect of economic development. A similar effect is at work in public morality. True, when a person gets used to the perks of office, it is hard for him to do without even after quitting office. It is also true that in a poor country like ours where public transport is insufficient and private vehicles are a luxury, the temptations to misuse government vehicles are that much greater. And the corruption that takes place in other ways is often much more venal. In a third world setting such as ours, rules and regulations are often more honoured in the breach than in the observance. Too often, laws are enacted with no intention whatsoever of ever enforcing them. Society moves along with a different, unstated logic of its own. But having said all that, one must admit the imperative of starting somewhere, at some point, if this whole miasma of corruption is to be eventually tackled. Corruption has to be stamped out wherever it manifests itself and whether it is big time or small. Political leaders would do well to realize that we cannot continue as usual if we are seriously interested in change for the better. They must change their ways, and return those vehicles.

Service industry dominates Nepal’s economy

By Aditya Baral

Service is Nepal’s new economy. Call it conquest of brainpower over horsepower, term it the superiority of human capital over physical capital, or simply see it as the age of ideas. Novel ideas are the genesis of economic transformation. Thus, the focus of the global age is also very much driven by the strength of brainpower. The main reason behind the West turning toward the east is for alluring technocrats to meet the future needs for brainpower. The "Look East" syndrome of the West has helped us prove our identity. Again, kudos goes to the service industry.

Interestingly, the composition of the economy is changing faster than observers and policy makers could realize. Most debates on the health of the economy are based almost solely on the fortunes of manufacturing industry, which used to contribute substantially to the nation’s income. Down the line towards globalization, new situations have pushed all sectors including manufacturing to the sidelines with the service industries dominating the scene.

Till the late 19th century, all the economies in the world were agriculture-based. The early 20th century saw a major shift in these economies from agriculture to industry. The noted economist, Bibek Debroy, comments, "The South Asian countries have leapfrogged into services more by default than design".

At a time when Nepal’s industrial bandwagon is plummeting toward a boomerang, the service sector is high on the agenda of economic discussion. From amongst the major constituent of the service trade, tourism is the only remaining bread and butter of our economy, making a consistent contribution in foreign currency to our national exchequer irrespective of much turbulence in our national health. The repulse of industry is so wide in its effect that no active sector of our society remains untouched or unaffected. Such a versatile, self-sustainable or self-developing trade is tottering in a trauma because of political backlash. To just flip on the statistics of FY 2056/57, the nation has experienced Bandhs (strikes) for 191 days in a year. As 55 percent of the tourism industry is dependent on impressions about the country’s situation carried home by visitors, the series of strikes called by politicians of different hue are bound to have a completely negative impact on the future of the tourism industry which fetched the country about Rs 12 billion in the year 1999. A strike every day causes the country losses worth about 3 crore and it directly correlates with a decrease in tourist arrivals, witnessed to the tune of 28,000 daily, as of today.

On the one hand, when international destinations are proliferating with competitive rates, carriers are throwing up rock bottom prices for service-filled travel and widespread networks. Tourism as a trade is becoming fluid and fragile. Tourists are becoming more demanding and less forgiving. Despite knowing the behavioural difficulties inherent in handling the trade, marketers are trying to involve remote techniques, which focus on customized care. Today’s marketing attempts to influence people’s perception through remote sensing and responding. So, dealing with humans is and will remain the crux of the problem in any industry. Likewise, sustenance without the vital component triggering economic growth will remain a pipe dream, without brainpower.

Nepal’s economy does not recognize service as an economic activity and the government did not tax service for many days in the past. Despite its phenomenal growth, service is one of the least heard, least talked about and most misunderstood sectors of the economy although this trade contributes a major chunk to our resource generation.

Modern theory says that labour and knowledge are merely two ingredients of success, both of which are abundant in Nepal or over all of South Asia at competitive prices. The service sector can expand with this human resource despite a lack of precious capital. This fact is
rather corroborated by the miraculous achievements made by teens in Silicon Valley.

It is easy to rent an office, hire a few employees on contract and sell a service than to build a manufacturing facility. Moreover, the turnover generated by the service sector far outweighs that of other sectors. Therefore, the government should try to capitalize on the potential that we posses in this core sector. We can convince the donor nations of the need for the establishment of core institutions like tourism, software development, mechanical and vocational training centres, etc. so that our enrichment effort, or manpower to overrule brainpower, anticipating tomorrow would not go hay wire.

After the dawn of democracy and the country’s deregulation through liberalization of the economy, Nepal is witnessing a dramatic change in the mushrooming growth of service providers. A major chunk of the new establishment in the trade and other sectors falls in the service category. It is questionable whether the rapid development is prompted by the ease in investment dreamt of by service providers or the user becoming pro-luxurious. A wide array of unimagined services is now just a matter of seconds for the consumers. The agent’s role is declining.

No wonder there are high hopes that those services will breed a new class of entrepreneurs in Nepal. A class that will be more competitive, more innovative and with a more global perspective than some of the established industrialists of the day. This would kindle the spirit of enterprise even in smaller towns.

The rise in the service industry also reflects progress in our tastes. Not so long ago people used to spend time to save money. Now they spend money to save time. Booming businesses like restaurants, bakers, caterers, fashion and entertainment reflect evolving tastes. The rationale is simple: As we fill our stomachs with food and homes with appliances, we spend relatively less on products and more on services. That is why, after a certain level, demand for manufactured products does not keep pace with increases in incomes. Moreover, the physical items, due to strangulating competition have been accessible to almost everyone’s reach, whereas the service required for its sustenance is becoming costlier. One can afford to buy a car. However, maintenance, repairs and parking are becoming tougher.

Celebrating mother’s day

By N N Timsina

Although I couldn’t attend my father’s funeral, my beloved mother, who is over fifty years old, has been the greatest source of influence in my life.

Even before my first tooth appeared and I had commenced school, my mother, a sober little lady, had mapped out my future.

Until yesterday, she was constantly reminding me that some day I would be a journalist, not just a student- or a great warrior. I never fought her; I believed her though she has never read books and writing compositions for me.

I always thought I would be a great journalist! I held on to her dream through the growing-up years. Surprisingly I began my career in writing or editing articles from my college days.

But I never had this opportunity to share my joy with her until I joined a local English daily. Far from home, in the college I had been reminded of her aspiration about me when one day I was posing for a picture with the Rector, Principal and the Chief guest for being editor.

Once Dr Ranganathan, the then governor of Andhra Pradesh state in India said "the success comes through positive attitude starting from home." For me, success has become synonymous with mother. Whenever, we were packing for home in the summer holidays, I used to say to my chums, "hey dudes, I'm going
to mom", while they said they
were going home to meet their girl friends.

Moreover, school in itself is not a magic pill for success, where many students leave it to chance. I continued my research and discovered that Dr Ranganathan Garu’s words were true indeed.

Within a year, my mother’s dream came true when I joined a newspaper with which I’m so sentimentally attached and have fallen in love that I now begin to feel no element on earth should come in between.

The other day, I was receiving Captain Khem Thapa at the Tribhuwan Airport. He had severed Jail Bahadur from his mother’s breast but did it for his future where the wishes of the mother had failed. I was blessed enough to celebrate mother’s day!

At last, despite all the tough months of my initial experience, I was finally earning some name for myself with more and more friends swarming around me each day. But only a few people know my mother had endured crisis after crisis to educate me and as mother’s day came flooding back, I could no longer wait to tell my mom that her dream for her son came true and in October I hurried back home to tell her so.

I told her the surprise, the great news! But it didn’t end there. I had the other story to tell my mom today. Before that I had to go to a temple. I dashed into the first open doorway I could find-a tiny idol on whose’ feet laid the byline story in The Kathmandu Post-I myself wrote.

Red patches of sindoor and parafin oil had made the paper look old enough. However, the temple priest had said he had picked it fresh from a vendor to offer some posy to the lord.

I fell to my knees, and began to sob-and all I could think of was my mother. Half aloud I heard myself saying, "mom, it took us a long time, but we finally made it!"

New Delhi’s finger in Nepal’s pie

By Kuldip Nayar

Imagine India compelling Queen Elizabeth on taking a salute at the Republic Day parade without letting Prime Minister Tony Blair know about it. This is precisely what the Atal Behari Vajpayee government did when King Birendra of Nepal was invited as the chief guest to the 26th January parade last year. The democratically elected Prime Minister Girija Prasad Koirala was not even informed beforehand, much less consulted.

The king was also taken to Hardwar to participate in a function the Vishwa Hindu Parishad had organised as part of the Kumbhmela celebrations. That the BJP-led government goes overboard on religious gatherings is nothing new. But the importance it gave to the king, a constitutional head, seemed deliberate as if New Delhi wanted to create a channel other than the elected government to improve relations with Kathmandu.

"A democratic country like India preferring monarch to the Prime Minister for the 50th anniversary of the republic is bad enough but still worse was inviting the king directly, without even informing us," a top aide to the Prime Minister said at Kathmandu a few days ago. When I sought Koirala’s reaction, he did not want to be drawn into the discussion. "The fault is ours," he said, adding, "We are suffering because of confrontation between us and the opposition." I do not think that New Delhi realises the harm it has done to Nepal’s precarious democratic set-up.

The king has referred the innocuous bill to amend the Citizenship Act, 1963, to the Supreme Court for advice. All that the government wanted was to streamline procedures to issue the certificate of citizenship at district level. But the king has stalled it on the ground that he wanted to know whether the bill violated the constitution.

Take another instance. This is about nominations to the upper house. Members were chosen from the panel of 15 names, which the Prime Minister would submit. The king does not take into account the Prime Minister’s panel any more. He nominates whom he wants.

New Delhi’s direct invitation has given legitimacy to the king’s efforts to retrieve what he lost after the popular uprising. Word has gone round that India finds him more dependable than the elected government, which has ‘failed’ to check the ISI activities in Nepal. (Koirala says that New Delhi is satisfied over what his government has done to check foreign intelligence agencies operation in Nepal.)

The stalled parliament has also helped the king’s stock soar high. The lower house has not been able to transact business because of the charges of corruption against the Prime Minister. Koirala is alleged to have been involved in the Dhamija scam. (General Sales agency of the Royal Nepal Airlines for Europe is said to have been offered to a family friend of Koirala.)

The stock of parliament has gone so low - it reminds me of our parliament - that people make fun of politicians. I heard phrases like "it is a waste of money" and "corruption is synonymous with politics" which are current in India as well. The press has come down heavily on the non-functioning of parliament. One English daily describes it thus: "With blows, punches and the largest ever stalemate, the lower house of parliament has sunk to the ‘lowest’ ebb possible."

The main opposition, Communist Party of Nepal (United Marxist-Leninist), sees no way out until Koirala resigns from the prime ministership. There are some in the Nepali Congress who concur with the thinking. In fact, the dissidents within his own party - former Prime Minister Krishna Prasad Bhattarai is leading them - are Koirala’s biggest headache. His threat to dissolve parliament has not worked since all political parties know that the king would never entertain the proposal.

Because of a messy political scene, even the king’s failed Panchayat system - indirect elections to the top - has begun to attract attention, however limited. Disillusioned over the non-performance or misperformance of elected governments, people are questioning the democratic system itself. Economic conditions are so bad that anyone who can promise people employment can become a deliverer. This is the main reason why there is a sneaking admiration for the communists, who are close second to the ruling Nepali Congress. Some support even the extremists, the Maoists, who have picked up the gun to fight against the vested interests.

One-third of the country is under the Maoists, beyond the pale of Kathmandu’s authority. It is said to be looking towards China for inspiration and help. But its main support comes from People’s War Group, which is operating in Andhra Pradesh, Bihar and Orissa. The killings by the Maoists are making deep holes in the prestige of the government. Koirala’s own party has blamed the government for its weak-kneed policy.

Koirala has demanded the use of army to crush the Maoists. But this is not going to be easy. The Prime Minister has no authority over the armed forces. The ‘reformed’ constitution in 1995-96 put them under the control of the king. He will hate to pull Koirala’s chestnuts out of the fire.

The king has another advantage. The Gorkhas, who comprise the army, have been always loyal to the monarchy in Nepal. They have also served the British well. But it is a matter of shame that London has not given them the same status, much less the pension, which it has given to the British soldiers. The retired Gorkhas are languishing in Nepal. Even their concerted demand for ‘fair play’ has not moved the UK.

The tripartite agreement, recorded after independence on November 9, 1947, has India, apart from Nepal and Great Britain, as one of the signatories. New Delhi should have taken up with London the question of discrimination against the Gorkhas.

The treatment of the Gorkhas is, however, not a matter of dispute between India and Nepal. The Indian soldiers and the Gorkhas are at par, enjoying the same facilities. The grievance of Nepalese against India is on other counts. The main one is the attitude of superiority that they find among Indians towards the Nepalese. This is reflected in every field, more so in business, which the Indian community dominates.

Kathmandu is probably too sensitive and New Delhi, too nonchalant. Both have not yet found the equation, which they should have by now. The result is the ever-smouldering suspicion, whether it is the Tanakpur Agreement of 1993 or the Mahakali Agreement 1977. Everything has remained on paper because of mistrust. New Delhi’s tilt towards the king may complicate matters.

Soaked in tradition and reverence, people in Nepal have respect for the king. But his position is symbolic like that of the British monarch. India should not try to distort the arrangement. It forgets that it had fructuous relations with most of the monarchs, including King Mahendra.

Nepal is poor and volatile. India should be engaging itself to win over the people of such a country, not the petty games it is playing at times to have a say in Nepal’s internal politics. The king looms large; this is what New Delhi believes.