Constitution day

Yesterday, the country observed its eleventh Constitution day. This is an occasion for pondering anew the objectives of that basic law and re-examining those provisions that need amendment. Such an exercise will help foster and safeguard pluralistic values, good governance, transparency in decision-making, prudence, impartiality and all the other virtues that make for a good polity. The 1990 constitution has generated its share of controversy. Many constitutional experts, including political leaders of both ruling and opposition parties, have raised their voice for amendment. This is quite apart from the Maoist demand for the scrapping of the constitution altogether to make way for a constituent assembly. Lawyers and political leaders say certain provisions should have been included in the constitution to underscore the democratic rights of every individual. Debate on constitutional matters has also occurred in relation to the role and composition of the upper house of parliament, the role of the army, relations between executive, legislative and judicial branches of government, the issue of judicial corruption, the question of provisions governing succession to the throne, care taker governments during national elections, local bodies and other matters. Had provisions on local bodies for instance been included in the constitution, the government would not have stumbled while legislating the Decentralization Bill in 1998.

Unlike the Indian constitution, which consists of 395 articles and has seen over ninety amendments in five decades, our constitution consists of 23 parts with 133 articles. The US constitution is even shorter and has been amended only about a dozen times in the past two hundred odd years. These vital statistics reflect in part the far greater complexity of mid-twentieth century India compared to a new country in a largely new and open continent towards the end of the eighteenth century, and partly the wisdom of the framers of the respective constitutions. But the point is that constitutions do change with the changing times. They inevitably undergo mutations. That is not in doubt. What is important in this respect is the quality of the public debate that should and must precede any amendment. Ours is still a virgin constitution, and any amendment should set a healthy precedent in terms of the gravity of the accompanying intellectual exercise. Having said that it should be added that human rights, adult franchise, parliamentary rule and constitutional monarchy are the defining elements of our constitution. Such statutory elements cannot be changed through any normal process of amendment. To contemplate change of that order may require contemplation of a constituent assembly after all. However, going the constituent assembly way may be too divisive
an exercise and the grass roots level national debate that such an exercise presumes would be largely inconclusive. The public at large would not have the sophistication to grapple with the issues involved and would have to leave things to the experts any way. But the best argument for not taking that route is that our constitution as it exists has by and large functioned reasonably well and will continue to do so given timely amendments to rectify the evident shortcomings that have become evident.

Now the turn of pashmina

By Sushil R Mathema

It is not surprising to hear that one industry, that had shown great potential, has begun to fade after almost two years of what can be described as robust performance. The pashmina industry grew from almost scratch to become Nepal’s third main export overseas, closing in on exports of readymade garments and woollen carpets. That is changing though, especially since the second quarter of fiscal year 2000/01. Although there has been an increase, by almost 10.3 percent, in pashmina exports between fiscal year 1999/00 and 2000/01, sales have begun to decelerate from the third quarter (Q3) of 2000/01.

Pashmina exports to India and third countries have registered a sliding trend since the first quarter (Q1) of the current fiscal year. The exports have decelerated considerably: from Rs 3.03 billion in Q1, to Rs 2.43 billion in Q2 and Rs 817 million in Q3 to Rs 569.3 million in Q4.

One can trace a systemic trend in Nepali industries with export potential. All of them fail to maintain product quality. First we saw the problem in the carpet industry-producers began mixing poor quality wool to produce inferior rugs, which earned a bad name for the entire industry. Azo-dye, child labour, scrap wool and non-Nepali fake carpets were the major impediments to carpet exports prospects . The result is that carpet exports have declined by 12.7 percent in FY 2000/01 compared to last year. Readymade garments have also entered the same decline cycle. It has declined by 5.9 percent in FY 2000/01. There had been robust performance of export growth of 15.5 percent for woollen carpets and 38.3 percent for readymade garments in FY 1998/99. The reasons for decline are clear: urge to earn quick profits and disregard for long-term sustainability on the part of the industry, and virtual lack of regulation by those that should be regulating things. Even in the case of readymade garments, it was reported that Nepalese garment exporters could not even fulfil at times the annual quota due to inability to select certain standards for environmental quality.

The government has remained inactive in ensuring the hard-currency earning industries of longevity. Recently, there have been signs that it is beginning to take the issue of sagging exports with some seriousness. One was the commitment made in the budget for 2000/01 to formulate long-term export policy and strategy to find ways to help Nepali readymade garments remain competitive after 2005, when the quotas will be phased out. Pashmina may also benefit from such policy-that is if the policy is implemented. There have been many policies in other sectors from which one can learn that written commitments alone may never provide the answers we need.

The slump in carpet and readymade garment exports has not been noticed because of pashmina sales which have compensated for it. The exports amounted to Rs 6.09 billion in 1999/00 and Rs 6.84 billion in 2000/01. Most of the exports were headed for third countries because there has been a decline in pashmina exports to India by 23 percent to Rs 2.72 billion during the same period. The corresponding increase in overseas sales was about 55 percent to Rs 4.12 billion.

The initial increase in sales to India is said to have resulted because Nepali producers unable to access third country markets sold their goods across the border. Over time they have been able to get a foothold in international markets. But almost as soon as things started looking better, there was a downturn in exports. The main reason for the slump is said to be poor quality products that may have turned off consumers. To an extent the change in fashion trends is also responsible. Pashmina producers, like those that produced poor quality carpets before the exports began to slowdown, are said to have gone for poor quality material. Some factories have reportedly used woollen yarn, instead of pashmina, and silk. Because Nepali pashmina was able to make a name for itself fast, many Indian companies are said to have re-exported some of their low-quality imports from Nepal, with the Made in Nepal label. The effect of all these factors is now reflected in the quarterly sales.

The downturn in pashmina exports will directly or indirectly affect a vast number of people who are dependent on this industry for their livelihood. It has also been an industry with very impressive value addition. One study revealed that value addition on pashmina shawl exports to third countries is as high as 38 percent compared to 27 percent in India and about 23 percent in the local market.

There may still be time to reverse the decline in pashmina but that would need more than commitments from the government and producers/ exporters. The government’s role would be to develop quality standards and ensure their implementation, using the producers/ exporters as monitors. Self-regulation by the association of pashmina producers could be another way to check product quality. It could also make an arrangement to promote quality Nepali pashmina abroad and help individual units in training and marketing their products. Are we ready to take on this challenge?

Kathmandu’s piccadilly

By Yerina Shrestha

As I walk back home every evening through New Road, I catch myself awing at the wonders of the place. But before swaying into my thoughts, I make sure that I hold on to my possessions strong enough not to lose them in the crowded street decorated with dysfunctional lamp posts. It is always a relief to walk through the tunnel of New Road, which is lit up so gaudily. Sometimes it makes me think as to what gives the place its glow: the sparing light from the shops or the people?

The river of vehicles flowing in the middle of the road is hardly the subject of my attention. It is the banks of the river filled with pebble-like heads constantly in motion. But, as any other woman would be, I’m careful enough not to let myself fall prey to the men looking for the slightest chance of a " brushing into female" feast. Otherwise, my tolerance for soft school boyish comments has fairly increased.

My latest discovery is that one can rather play interesting games at New Road. One of them is a maze game. One just needs to avoid the blockades of romantic couples, children carrying heavy school bags, coy girls walking hand in hand and a stream of vehicles. You understand that you lose the game, when you lose too many of your precious "Excuse Me!’s"

Moreover, the game starts getting interesting when the narrow footpath is further squeezed into a space where the otherwise inseparable couples have to reluctantly let go of each other’s hands. This time, barriers on the path are a sick man, a sad child and a hungry infant, all in the hope of a penny from the blind and deaf passers by. And, not to forget the flock of people around the perfume- man, like bees around a flower, who religiously sprays cheap cologne in the air. Whatever his purpose, it surely contributes a little to cloud the fetid smell from the "Global Park".

Another saga is that of the tourists. The Indian visitors probably feel more at home. Otherwise, the white wanderers are busy either clicking away at the out-of-the-world sights of "Cattle vs. Cars Street" or shooing away the adamant curio sellers.

Talking about New Road’s charm, it is entirely dependent on its people. Everyone seems to be in their very best of attires. But the most amazing part is their great capacity for incessant spitting. It goes spitter-spatter-right, left and centre. Seeing so many of them performing the act simultaneously, I wonder if it is a genetic compulsion. Thankfully, there aren’t any tempting pee-corners!

But the motorcyclists seem to go through harsh times. Their vision is blurred by the thick dust and smoke. Therefore, it makes sense when they do not take on the onus of the chaos when the One Way Traffic signals are broken.

That’s not all. At times, the lanes turn into lively Discos. Blaring music from the stores seems to have the sole intention: to give the decked up pedestrians a sense of a-walk-on-the-ramp. Whatever it is, I certainly do catch myself humming the stubborn tune long after reaching home. All of these thoughts give me good company every time I walk the full of life New Road.

Bhutanese example

By Dr Shreedhar Gautam

Bhutan’s Foreign Minister L J Thinleywas in New Delhi recently in connection with the inauguration of the first major exhibition of Bhutanese art and culture in India. During his visit, he surprised the Indian intelligentsia by disclosing that Bhutan was asking ULFA-Bodo Militants without using force to leave their camps in the Bhutanese territory. This was surprising news for many intellectuals because if Bhutan had requested the Indian government, the militants could have been flushed out long ago. But that did not happen because Bhutan consistently declined every Indian offer of help that would entail the entry of Indian troops onto Bhutan’s soil. Though Bhutan enjoys a special relationship with India, it has always been wary of external influence. It is conscious of the challenges brought forward by the process of globalization. It has a very strong sense of "own identity", and has accordingly shown the need to preserve its valuable heritage. It has tried hard to inculcate value system in the younger generation. It is changing without losing its character and without selling national interest for the sake of material prosperity. Bhutanese are aware of the need for maintaining balance between modernity and their own unique culture and tradition.

We know that Bhutan does not have a big army to use force against militants coming from across the border. But it could have asked the Indian army to oust Bodo- ULFA militants from its soil. However, it chose a different option: to convince them to leave without any violent confrontation. It is a welcome development from a country whose foreign policy is Indiacentric. By not allowing the entry of Indian troops on the excuse of driving out foreign militants, Bhutan has proved abundantly that it is not ready to compromise its sovereign and independent status.

Like Bhutan, we too have external access through India. Like the Bhutanese, Nepalese also share values, hopes and aspirations with India. But there is a world of difference in terms of the attitudes of our ruling class and the Bhutanese ruling class to the ruling elite of India. There have been many cases of incursions of our territory from across the border before and after the restoration of multiparty system. There are many reports of Indian police and intelligence officers entering Nepali territory in hot pursuit of criminals and terrorists from India. Not long ago, Indian police personnel came to Baneshwor, in the heart of Kathmandu, and arrested their man, thus exposing the vulnerability of our national security and the incompetence of our ruling class. During the Panchayat period too, the rulers were interested only in lengthening their rule, thereby undermining the national interest. Kalapani is a glaring example of the Panchayat rulers’ negligence of the national cause.

Indian leaders know that Nepali politicians are not as serious and sincere as Bhutanese leaders in regard to their independence and sovereignty. The refugee problem has not been solved till now for the simple reason that India does not want to antagonize the Bhutanese leadership. India will never pressure Bhutan to take back the refugees, now living in eastern Nepal. India treats it as a bilateral problem though it is fully aware that the refugees could enter Nepali soil only with the active support and help of the Indian authorities. It is India which really facilitated the flow of Bhutanese refugees into Nepal. But, India refuses to accept any obligation to take up this issue with Bhutanese rulers. We see a double standard in the policy of India. When it comes to the question of Kashmir, India wants every foreign dignitary visiting India to support the Indian stand, forgetting its oft-repeated assertion that the Kashmir problem is to be solved bilaterally. If Kashmir is a bilateral issue, why does India want other countries to speak in its favour? Because it knows Pakistan is not going to buy its theory of bilateralism, whatever the number of countries supporting the Indian stand.

Bhutan’s stand in regard to its sovereignty and independence should be taken as a wake up call by Nepal. The Indian leadership will not take Nepal seriously as long as we have leaders with servile mentality. If Bhutan can speak out so categorically, why not Nepal? It is not the size of a country that determines its stand, but its self-confidence, political sincerity and sense of patriotism. Nepal has made a hue and cry over the refugee problem, but it has failed to raise the issue firmly with Indian leaders because of the inferiority complex ingrained in the minds of the Nepali ruling elite.

Secondly, Nepal will remain poor and dependent on others as long as we have the illusion that foreign aid will strengthen our economy. History shows that as long as we have insincere and weak government like now, an aid recipient country like ours will be worse off than before. No country can sustain its survival on the basis of foreign donations and loans. Reports suggest that highly indebted poor countries, which received massive debt forgiveness as part of overall packages for reducing poverty, were worse off than before because of the misuse of funds and insincere governance. This happens in countries like Nepal where the rulers have short time horizons. These rulers want to reap short-term benefit from foreign aid, and are not interested in the long-term gains of wise spending. Present day Nepali rulers are among those who will borrow to the hilt, spend freely to benefit favoured lobbies and let the country go bust.

We have heard so much about foreign aid either in the form of donation or credit, but our country is as poor as before. Nothing will happen to the plight of ordinary Nepalis, even if there is huge debt relief, because once these hungry rulers are let off the hook, they will once again borrow as much as they can and cream off what they can till the country is as badly off as before. Nepal’s tragedy lies in having bad rulers who run down existing national assets to maintain their levels of spending. No conditions attached to foreign aid or loan can restrain bad leaders from plundering the national coffers. We have seen how several rounds of foreign aid have achieved so little in Nepal and other countries where the leaders are dishonest and immoral.

Foreign aid can be of help only when the concerned rulers change their attitudes. The outcome of such help will be better only when leaders are highly moral, nationalistic and visionary. Equally important to be noted is that no country can prosper only on the basis of foreign aid if there are no internal changes. Exactly the same is true of Nepal. Nepal is poor not because it has borrowed too much but because it has used the money unproductively. Borrowing can be a strategy only when the money is spent wisely on constructive projects.

In sum, Nepal will remain a weak, semi-colonial, poor country as long as it does not learn a lesson from others. It should learn from Bhutan that a small country could also assert its independence and refuse to allow foreign troops to enter its soil in the name of pursuing terrorists. Likewise, Nepal should realize that poverty cannot be eliminated only with the help of foreign aid until and unless there is drastic change in the system of governance. If the aid is used poorly, the debt becomes unsustainable because even soft loans have to be repaid. We have to understand that massive aid does not necessarily make any country rich if it has incompetent rulers bent upon political loot and eroding the institutions. Will our political leaders rise to the occasion to bring required change in their attitude to the system of governance?