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Kathmandu Monday January 01, 2001 Paush 17, 2057.
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Concern over frequent bandhs
National economy to be the ultimate victim
Post Report
KATHMANDU, Dec 31 — "If Nepal wants
to retain last two years’growth rate and reduce poverty and unemployment, there
should no impediments for the smooth operation of business," says an Indian investor
of a multi-national company, talking to The Kathmandu Post.
The two-day bandh called by nine left parties
on January 1st and 2nd close on the heels of recent furore over the alleged anti-Nepal
remark by the Indian film artist Hrithik Roshan, has come under scathing criticism from
the business community.
Ten leading business organisations even went
to the extent of issuing a communiqué to different publications protesting against the
bandh. The communiqué states that bandhs cannot be a solution to the problems faced by
any political or non-political organisation and group. Past experience has revealed that
such activities have further aggravated the problems at the cost of the economy.
Businessmen have warned that the Nepali
economy, which showed good signs in the past two years, will face trouble, if the two-day
Nepal bandh is not taken back. They say that frequent bands harm business, which has a
major bearing on the country’s economic development.
Frequent bandhs often accompanied by violence
will further deteriorate the image of the country in the international arena, say
businessmen. Nepal is struggling hard to make up for its image already tarnished by the
on-going Maoist insurgency.
"Investors tend to lose confidence when
violence and bandhs frequently affect business activities. Confidence once lost is hard to
rebuild," said Sandip Ghosh, managing director of Nepal Lever Ltd. "All channels
of distribution will be disrupted and hence the effects of bandhs will be more felt by the
local beneficiaries of joint venture companies than the parent company."
Though Nepal has a comparatively small
economic base, a host of impediments exist in business activities. It is the local
partners of joint venture companies who are hit hard by such encumbrances. "Frequent
bandhs and violence have a greater impact on the locals. It is the stake of local partners
which is at greater risk than the foreign investor," said an Indian businessman
requesting anonymity.
"Forget about potential investors. If
the frequency of violence and bandhs go up, even existing businessmen will think twice
before pumping more capital into business," he stressed. Dr Mohan Man Sainju, Former
Vice Chairman of the National Planning Commission termed the two-day bandh as ‘most
disgusting’. "The major setback of such undesirable agitation is that it
destroys Nepali image. Nepal used to be identified as a safe destination for investment
and tourism in the past, but no more."
The impact of the bandhs would be strong on
the non-agriculture sector, especially service sector, he stressed. Service sector
contribution to the GDP presently stands at 50 per cent.
Rajesh Kazi Shrestha, president of Nepal
Chamber of Commerce (NCC), said, "If all political parties have the same aim of
ensuring good environment for business and promoting good governance, by eradicating
poverty and corruption, then how come violence and bandhs take place frequently."
A number of business organizations, including
Nepal Chamber of Commerce, Nepal Freight Forwarders Association, Nepal Foreign Trade
Association in different press releases issued here today, have denounced the two-day
bandh.
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