Hear minority voice

Finally, the government has heard the voice of disabled people to include them in the tenth census that begins in early June. How seriously the Central Bureau of Statistics (CBS) has deemed it is another thing, but this census is undoubtedly an important approach towards introducing new development measures and checking the alarming population explosion. Also, the census that comes after every ten years is an exercise of our constitutional provision. The CBS, responsible for conducting every census in the country, has not enumerated disabled people since it began conducting the census back in 1911. However, the CBS has realized the fact that the head count of disabled people is also essential to acquire authentic data on the growth of population. This apart, the government has not come up with measures to uplift the disabled people. Therefore, their inclusion becomes all the more important to accelerate social development, the bedrock of economic welfare.

The census of 1981 included a disabled column only to be deleted when a few enumerators opposed it. The ninth census did not even realize whether the disabled community existed in the country. However, the World Health Organization (WHO) states that of the 22 million population, 10 to 12 percent are incapacitated people in one form or another within the country. Unfortunately, that was never brought to the notice of the people nor did the CBS disclose this figure. The CBS deputed a few untrained personnel with ineffective questionnaires, and conducted the census as a mechanical exercise of the constitutional provision. Given a poor communication network, rugged terrain, not to mention poor publicity and follow-up, it was natural to raise doubts over the accuracy of the previous CBS census. With a scientific and systematic approach, the census failed to embrace the entire population.

The two-week long census 2001 begins on June 8, and ends by the 20th of that month. The CBS has yet to disclose how it is going to specify religion, the number of dependents, status of minorities, disabled people and occupation. To conduct the census, it has however deputed over five thousand supervisors, most of them secondary school teachers. Besides, it has selected 20,000 enumerators among primary school teachers. But has the CBS paid attention to the complaints that it failed to enumerate properly people from minority communities in the past? The CBS has neither addressed these complaints nor has it included more enumerators from minority communities. In the last head count survey, the CBS left out five percent of the total population due to poor communications and lack of follow- up measures. This not only projected inaccurate data but also undermined the representation of the minority in decision-making and development planning. Thus it is high time the CBS treated the head count of 2001 seriously so that the development strategies will not overlook the minority and the underprivileged of society.

Right to good governance

By Anand Aditya

As the nineties were setting the tenor of the new millennium for Nepal in the advent of the democratic spring, the decade was also vibrating with demands and declarations for people’s liberation on a global scale. Most of the refrains related to the rules of governance. A look at the array of events that stud the decade will suggest that.

In the forty years lying between 1951 and 1989, one can hardly notice a dozen events relating to human freedom and governance compared to at least a dozen in the nineties alone. This resurgence is evident not only in Nepal’s national efforts at responding to the global and regional calls for mass equity and changes in the rules and role of governance, but also in a number of international activities on development at home and abroad.

While Nepal’s Ninth Five Year Plan (1997-2001) has poverty reduction on its agenda with a special emphasis on issues of equity, social equality, advancement, and the rights of women and minority groups emerge and re-emerge in various forms again and again in one or another form. In a bid to change the rules of the traditional game of governance, the three strategic goals and the six strategic categories of cooperation, set out by the UN Developments Assistance Framework (UNDAF 2002 - 2006), have now also been devised in a way to enable the UN system to support Nepal Government’s Reform Agenda for Poverty Reduction.

Had it been possible to leave the function of governance to the elected representatives (Rule by Representation) as before, handling the governance issue would have become much simpler, but governance as such has turned out to be far too serious and important affair to be left to the discretion of the elected bodies. This case is vindicated by the miserable plight of the people in various districts of Nepal.

How misgovernance impacts on and is impacted in turn by other factors is illustrated by the hypothesis on the Iron Triangle of Gender Deficit, a deficit on the front of Social and Gender Equity and Equality which in essence is a prisoner of three maladies: poverty, environmental degradation, and misgovernance. The shortfall in gender equity is evident in multiple ways: restricted access to ownership, lack of decision-making power on the allocation and use of most resources, including their own self, lack of effectiveness in the implementation of gender policies and programs, a yawning awareness gap, basic information gaps, failure of the respective shares of the government and donor assistance to raise the Basic Social Services up to the 20 percent point, and of course, inadequate sensitivity to gender issues at all levels.

However, to say that misgovernance implies only these three effects is to oversimplify the case. The instability of the political environment, the corruption in the ruling circles, the anti-female bias of the traditional patriarchal society, and the power of the patronage system all conspire to support the roots of misgovernance. The indifferences of the political elite, administrative inertia, resistance of the negative stakeholders, and mass apathy work together to maintain it.

Governance shows problems everywhere. It is not unique to Nepal, or for that matter, South Asia. But there is a categorical difference between misgovernance - a generic perversion of the process of governance - and governance with problems. The question then boils down to: Why should we be bothered about misgovernance in the South Asian context? The answer is simple: Misgovernance has at least three key characteristics that make it far more dangerous and damaging than governance with problems in general.

First, the misgovernance phenomenon functions as a syndrome - call it misgovernance syndrome, which means it is not an isolated phenomenon, but is related to a whole set of processes that it affects or triggers into motion, affecting three basic parts and the fundamental functions of the state and public structure, and damaging or corrupting functions vital to the normal operation of the body politique. This starts damaging the basic first order priorities, policies, planning, programs, and projects of the state, rendering impossible the four key principles of a humane state - transparency, accountability, responsibility, and responsivity - and giving full rein to its immediate consequences - grand corruption and abuse of power.

Second, the roots of misgovernance lie up, not below. In fact, there is an inverse relationship between the level of misgovernance and the magnitude of damage it can inflict upon a state and its citizens. This leads to its natural corollary - the higher the level of misgovernance, the larger the impunity.

These two features lead to the third and the ultimate malady - misgovernance in South Asia, that affects the destiny of one billion people, stemming the process of development and is at the root of deprivation, destitution, disablement, and discrimination of at least half a billion people here. Misgovernance actually nurtures and replenishes the roots of the four C’s which deny the right of development to the poorest of the poor - the miserables of the South Asian mass - Crime, Corruption, Casteism, and Communalism.

If nothing else, these three features of misgovernance should enough reasons for good governance to enter the domain of basic human rights. Right to humane and good governance is thus not just an option, but a critical imperative, a first order priority for the citizens of any democratic state.

It is certainly prior to the right of the representatives to rule and is a first order right - the well-spring of Raj Dharma from which, as Bhishma on his deathbed sermon is said to have proclaimed millennia ago, all other virtues follow. If there is any rationale to the call for instituting the right to good governance, it is that in the absence of good governance no human rights can be conceived or created. It is in fact the sine qua non for and the fount of the whole set of human rights.

Countenance that deceives

By Prayga Karki

She came across him through one of her friends. He was a cousin brother of her near pal. He was a smart and good looking person. A stylish guy, who always went along with the latest fads. An attractive face which could stop the traffic! Interestingly, this guy also fell for her. She also gave a positive reply, thinking that she had found her Mr. Right. As time passed by, she learnt much about his attitude and behaviour. He turned out to be a money- minded freak and demanded financial help from her, although he knew that she was only a student. When she defied him, he showed his true colours. He started blackmailing her. The girl could no longer endure his behaviour though his face was still as handsome as ever. Their knot of love affair started to loosen. When the guy sensed that the girl is no longer interested in him, he started buzzing her telephone set almost every time and followed her where ever she went making her life a hell. Utterly terrified, she unveiled her trouble to her parents. The case went up to police, and only with their help she could heave a sigh of relief.

Well, don’t let your imagination run wild. I am not talking about any Hindi Movie. We generally watch such an incident on silver screen or read in pages of thick romantic Upanyas (novels).

But such an unpleasant brush with so-called love can happen to any impulsive lads and lasses anytime. Crush and infatuation are normal syndroms. Many a time, we experience these syndroms. Some stay on for a very long time, while some just fade away all too quickly. As a matter of fact, it should enrich us and make us wiser so that we know how to deal with and treat other guys.

The girl, whom I mentioned above, was victimised just because she went after his looks. Face, though not always, could be a deceiving mask if one takes it as a yardstick to judge a person. Being handsome is not reflected in one’s countenance. Someone rightly said, "Handsome is what a handsome does". So next time, when you see a handsome speciman of humans, and above all, if it sets alarm bells jingling in your heart, first listen to your better instinct. Don’t let your heart rule over your head. Or else, you are more than likely to open and stir Pandora’s box.

Plugging revenue leakage: Words or action?

By Anu S Rana

A law enacted to make provisions for the Control and Prevention of leakage of Revenue aims at increasing revenue collections by controlling and preventing leakage of revenue in an effective manner in the fields of customs, VAT, and land tax administration. Furthermore, it also aims to achieve the maximum mobilization of revenue for ensuring convenience and economic welfare of the people, and for expediting the pace of economic development of the nation.

Decisive action to formulate an anti-corruption agenda, for example, to reduce revenue leakages and the misuse and waste of public resources, and to strengthen legal and institutional mechanisms to ensure greater accountability can have an important impact in terms of improving the effectiveness of resource use even in the short-term. In addressing this issue, the government undoubtedly needs to take the lead; but it is ultimately the responsibility of the Nepalese civil society, including major political parties, authorities at different levels, the private sector and NGOs. Though a moot point, it is also important to recognize whether the governance situation in Nepal is better or worse than in other developing countries. As one of the poorest countries in the world, Nepal can least afford the misuse and waste of its limited development resources through continued governance problems; and it needs to address these issues quickly without further semantic debate.

Using Royal Nepal Army for revenue: The government’s decision to use the Royal Nepalese Army to patrol the border checkpoints has been hailed instantly by some and more minutely scrutinized by others. The decision to deploy the army at border customs checkpoints was taken on March 14 to control cross-border smuggling of goods and to stem the leakage of government revenue through rampant tax evasion. The Finance Minister has said that the Royal Nepal Army (RNA) has been mobilized in the customs points because of the inefficiency of the police. Once the revenue police are activated, the deployment of army will be withdrawn. Though the economic growth is six percent, export has risen by 23 percent, inflation is just two percent and foreign exchange reserves has crossed one billion rupees and the revenue collection is not satisfactory compared to government expenditure.

Impact of Indian budget on Nepal: For Nepal, the new budget may have far-reaching consequences to its economic mainly in foreign trade, foreign direct investment and revenue collection. The new provision in the Indian budget of introducing countervailing duty (CVD) on Maximum Retail Price (MRP) may have an adverse impact on the Nepalese exports to India.

Revenue means customs duties, VAT, income tax, house and compound rent tax, and property tax; which must be paid to His Majesty's Government according to current law; the term also includes other taxes payable according to recent years. Some efforts were made through the structural adjustment programmes to broaden the tax base and improve the buoyancy of the tax system through adjustments in import duties, selectively raising sales and excise taxes and enhancing land registration fees. Notwithstanding these efforts, the tax base is still narrow.

Tax revenue heavily depends on import taxes. The last two decades will be remembered for the rapid integration of financial markets located in the industrialized world and major offshore centres. The present trend of Nepal’s fiscal deficit indicates that unless the government consolidates revenue position or slashes less essential and unproductive expenditures, such deficit cannot be contained without squeezing development expenditure, and hence, the economic growth. If fiscal deficit continues, attaining macro economic stability, and ensuring a congenial atmosphere for capital inflow will be very difficult. It is in this context, the government has set the target to control the expenditure by about 8 percent.

The tax revenue to GDP ratio varied between 6 and 8.5 percent of GDP during the 1980s. While the tax ratio improved somewhat in the latter part of the 1980s, from an average of 7 percent of GDP during 1987/1988 to 1990/1991, this was still an extremely modest tax ratio in relation to that achieved by many Least Developed Countries (LDCs).

This modest tax ratio reflects in part the ad hoc nature of the tax policy in Nepal. It also reflects weakness within the existing tax system, both structural and administrative. The structure is complicated by the existence of a wide variety of often overlapping taxes, and a whole array of exemptions on income, sales, and excise taxes. And this in turn makes their administration more difficult and costly. Like in other developing countries, the bulk of tax revenue in Nepal is generated by indirect taxes, including taxes on production and consumption of goods and services and international trade taxes which together accounted for between 79 and 83 percent of tax revenue during the 1980s, with an average of 32 percent of the tax revenue during the period 1981/1982 and 1990/1991.

Revenue Act: According to the Leakage of Revenue (Investigation and Control) Act, 1996, Leakage of Revenue is not permitted: No person shall commit the leakage of revenue, instigate others to do so, or make an attempt to do so, or provide help in any manner to any employee to do so, or become an accomplice in such an act.

"Any person who performs any of the following acts shall be regarded as guilty of the offence of revenue leakage: Any action taken with the objective of evading payment of revenue or reducing such payment due to HMG. In case, any person does not pay or deposit revenue which he is required to pay in deposit revenue, which he is required to pay according to current law, or pays or deposits an amount which is less than what is due from him, by submitting false accounts, particulars or documents or otherwise, with the objective of reducing the amount of revenue due from him or evading such payment.................., he shall be deemed to have committed an act of corruption," states the Leakage of Revenue (Investigation and Control) Act, 1996.

The decentralization of fiscal authority through revenue sharing with various levels of local government was important in creating an incentive for the government to promote local economic development through the growth of the non-state sector. This was built on a strong existing system of local governments and local systems of tax collection in which the major source of local revenue were industrial enterprises. The development of local industries is regarded as the most promising means of generating additional local tax revenue.

Tackling budget crisis: It is a well-known fact that Nepal’s crippling budget deficit is hindering its ability to grow economically. In a democratically-elected government, budget appeals to the people’s inherent goodness. Most of the weaknesses in the economy arise due to a budget crisis. In order to tackle these problems, the budget crisis needs to be tackled wisely. The budget crisis, inter-alia, can be tackled in two ways either by reducing expenditure or by increasing revenue. If the government pursues the policy of increasing tax rates under the mistaken belief that tax increase will provide more revenue, that would be a short sighted policy. It has been proved in the past in Nepal that tax rate increase reduces revenue generation. It increases tax evasion.

The amount of tax revenue a government can raise depends on the country's productivity and on its own administrative capabilities. For long, there have been complaints about Nepal’s inelastic tax system. The only way to increase revenue is through new taxes, or discrete changes, and with considerable discretionary power to govern tax assessors, which is riddled with corruption.