War on terrorism

The US and British planes — four weeks after the attack on World Trade Centre (WTC) and the Pantagon — have launched air strikes against the Taliban regime to flush out Osama bin Laden, including his Al Qaida members. bin Laden heads a terrorist group called Al Qaida in Afghanistan. The Al Qaida has trained over 300,000 militant fighters from across the world to fight a Holy War against the western "imperialism." It has launched a series of attacks in recent years, especially against the US, including the last month suicide attack that claimed over 6000 lives. bin Laden was accused of masterminding the attacks on the US missions in Kenya and Tanzaniya, besides the 1993 WTC attack that claimed over 200 lives. The Al Qaida is believed to have been established in the same year the Soviet pulled out its troops from Afghanistan. US president George Bush has even vowed to ‘smoke’ him out of that country. However, the military strike on the Taliban regime, even if it is only to capture bin Laden, will certainly displace thousands of innocent people as a result of war against terror. Thousands of people have already fled that country to neighbouring Pakistan, fearing possible US military strike.

Taliban that overthrew the Russia backed regime, with the support of Pakistan, has been in power since 1996 only. Like Ghori, Aurangzeb, Ghazni and Khiljis, who plundered the civilization and ruled the subcontinent ruthlessly, the Taliban regime too imposed "Nazi-like label" on Hindus living for generations in that country to distinguish themselves from the Muslim community. Hindu population there have been reduced to mere five hundred out of fifty thousand in five years. It detained workers associated with international agencies, accusing them of preaching Christianity. Earlier, the regime destroyed two Bamiyan statues of Lord Buddha, carved out of a cliff during the third and fifth centuries. Like medieval’s Ghori, this was done because chief Taliban religious leader Omar Mulla claimed: "Islam does not allow worship of idols." However, Omar’s edict was against the Koran.

The US-led international forces have launched military strikes against the Taliban regime. Tony Blair’s whirlwind visit to Moscow, Islamabad and Delhi had indicated the possibility of such military strikes on Afghanistan. Such attacks are supposed to end "terrorism" unleashed by Laden-led Al Qaida. Nepal has fully backed the war against terrorism. However, it should not limit the war to bin Laden’s arrest. The western countries must draw a long term plan to fight against terrorism. The broad-based coalition government, as announced by the US, should also bring political stability in Afghanistan. Afghanistan has been reeling under war since 1979. The end of the Taliban regime must herald prospects for peace and prosperity in Afghanistan.

Nepal -India economic relations

By Binod K Chaudhary

Reflecting on the last few years, one clearly observes that the way Nepal-India economic relations are moving is far from satisfactory in addressing the fundamental interests of both the countries. Minor issues have always taken the centre stage and succeeded in diverting major considerations and larger opportunities. Some sections in India strongly feel that despite the existence of a very liberal and forward looking 1996 Treaty, which offers preferential treatment to Nepalese products in India, Indian businesses do not always get indiscrimination in Nepal. The issues pertaining to LIC vs AIG, the issuance of Certificate of Origin for Indian vehicles entering Nepal vs the Japanese and Korean vehicles, lack of a strong supportive mechanism for Indo-Nepal joint ventures etc can be cited as some of the genuine yet minor grievances. Nepalese on the other hand also feel that non-tariff barriers work against the spirit of 1996 Treaty. The issue of quarantine, imposition of various taxes at the state-level, the anti-dumping duty imposed by the Centre, and the lukewarm response to speedily activating the Dry Port are some of the similar examples.

The call of the hour is, therefore, towards developing a situation where the Indian stakeholders advocate the Nepalese cause and vice versa. This is precisely how the 1996 Treaty was born. Institutions like ICRIER, CII and FICCI advocated the Nepalese cause to develop this landmark Treaty which would not only address the issues of trade deficit but also slowly move towards a common market regime through entrepreneurship, be it Nepalese or Indian or even joint venture. It also happened because the Nepalese side was able to give the desired level of comfort to the Indian side that the provisions of the Treaty would not jeopardize the Indian economic interest nor would it allow to misuse. If this could happen in 1996, I see no reason why it cannot happen today !

If the rewards and results of the 1996 Treaty is dispassionately and objectively analysed, we see it as a win-win situation for both the sides for it has been able to deliver the desired objectives more than expected and is moving forward in the right direction. Should it not be our task now, in questioning how to further broaden the scope of the 1996 Treaty for added mutual benefits than stay contented licking our own wounds ? In a situation where issues, however small they may be, when unresolved in time, contaminate the larger picture, and at times blur and distort it. It is therefore time we reassessed all the issues with an open mind in an environment where preconceived ideas and biases are not entertained to dominate a bigger cause.

Creation of ‘new economic zone’: It is my strong conviction that this is no time to question the rationality and of the scope of the 1996 Treaty, but to display magnanimity towards expanding the present arrangement. The treaty, therefore, should also now encompass a new dimension to creating a "New Economic Zone" in Nepal to facilitate the emergence of Indo-Nepal joint ventures. If the Western World and India could create a new "Silicon Valley" in Karnataka and a new "Cyberabad" in Hyderabad, why can’t India and Nepal work together in developing the infrastructure for setting up a large "Industrial Zone" for the purpose of exports of essentials to India, and thereby facilitating both the countries to take the fullest advantage of the 1996 Treaty arrangement ? In this regard, special concessions and incentives should be accorded to the private sector of both the countries to take fullest advantage of this management. Enhanced Indian joint ventures’ presence will definitely work as one more effective mechanism that can ensure continuity and broadening of existing policies of mutual cooperation.

Formation of joint monitoring and facilitating committee: By the same token, while extending the 1996 Treaty, a mechanism also needs to be introduced with the participation of both governments and the private sector in setting up a "Promotional and Trouble-shooting Arm"-one could call it a "Monitoring and Facilitating Committee" -to deal with irritants interpreted as surge, the level of transformation in the process of manufacturing, maintaining the checks and balances against required adjustments of duties and tariffs to safeguard the industries of both sides from undue and unrealistic disparity of tariffs or deflection etc. Such a body could be empowered by both governments to not only take corrective steps to eliminate distortion and discrepancies but also to recommend to the governments to offer supportive packages for driving larger economic agendas and cooperation in real terms.

Need for ‘Nepal-India forum’: The age-old relationship with India encompassing all facets of life is not a matter of debate, rather it should be over a tremendous common wealth which we must cultivate and flourish to our common benefit. But are we taking concrete steps in harnessing the various opportunities this has offered us ? Definitely not. As a result, from time to time one finds unhealthy and undersirable issues being raised at various levels on various platforms which only crop up misunderstandings and impede progress. We have neither the time nor patience to rely on the respective governments alone to take these corrective steps. We have experienced time and again that the established political and diplomatic protocols and formalities are often incompetent in addressing these issues at the right time and at the right level for timely and satisfactory solution. Therefore, experience shows that it has become imperative to form a permanent institutional mechanism based on continuity and with proper infrastructure and support system to promote this noble cause. Is it not time all the stakeholders of both countries from all walks of life such as politics, business, academic and the media came together in developing a viable platform such as "Indo-Nepal Forum" upon which a frank exchange of ideas can be tolerated and issues of mutual concerns discussed, objectively ?

We all know that harnessing major hydropower potentials for the benefit of both countries has been held hostage for decades due to unresolved issues. While on one hand India has to deal with acute shortage of power in states like Bihar and UP, on the other hand opportunities of harnessing mega projects like Karnali and Pancheshwar have been kept confined to the archives of Nepal, or for the purpose of technical debate. Short-term political gains/losses have to be overtaken by larger economic interest. Who knows, perhaps the proposed "Indo-Nepal Forum" can also work towards developing the much needed consensus among people and build pressure on both sides to act more rationally.

To sum up, the creation of a non-governmental, autonomous, "Indo-Nepal Forum", with the blessings and support of both governments, will help in providing strategic direction in resolving all the backlog of pending issues as well as broaden the enterprise creation opportunity with special emphasis on Indo-Nepal joint ventures supported by special incentive package from both sides. With so much at stake, any needless delay in institutionalising the Indo-Nepal Forum would be detrimental to both sides. Procrastination is said to be the thief of time.

Smile, it's tax-free!

By Pragya Karki

Dashain, the biggest festival of the Hindu Population is round the corner. The festive aroma is in the air. Cool and gentle breeze caresses the morning, while colourful kites dot the crystal clear sky at noon. Dashain is the grand festival of the Nepalese to strengthen, revive and re-establish family ties. People from far and wide fly back to their nest during Dashain to have a merry time with their family and friends, and when they return to the humdrum of daily life, they cherish those memories. Another important feature of Dashain is shopping. The word ‘Shopping’ is almost synonymous with Dashain. Be they stylish clothes or Cinderella-shoes, household items or herds of goats, hens ore ducks, they are much in demand during Dashain.

The other day only I escorted my sister to shopping. She had planned to buy a denim and a matching top. As we know, it is always wise to check the price at a couple of shops (if your time allows) before purchasing anything, and that is what we did. At one of the retail shops, quite a large one, which we visited, we were surprised by the behaviour of the salesgirls. The shop was not crowded neither the salesgirls were busy. We entered inside and started looking at the trousers hanged attractively. I was expecting one of the salesgirls to come and help us, but they were busy talking to themselves. I approached one of them who showed us a couple of items, but she spoke so little as if it costs her to speak with customers, neither was there a smile on her face. Frankly speaking, I did not like her behaviour.

Next we visited a shop of a Marwari man in order to buy a salwar-kurtha - piece for my mom. No sooner had we entered the shop, we forgot our tiredness by their warm smiles. They requested us to take a seat, and were ready to help us. After I furnished him the details regarding the piece the man showed us nearly twenty varieties. It was indeed a pleasant treat. He even told us about the latest trend, and suggested colours that would suit our complexion. My sister was changed her mind. She ended buying a salwar-Kurtha, and told me that she would buy pants some other time! We took our time and selected a fine piece for our mom also. Feeling rather contented, we promised to visit his shop quite frequently.

Well, the simple concept of marketing is that, the products are not bought but they are rather sold. I, myself being a student of marketing (taxation too) would like to advise salespersons: Bear in mind that the customer is the King of the market and he/she is the hardest thing to get whereas the easiest thing to lose. Above all, while dealing with customers do smile, because it is tax-free.

A million-rupee question

By Basanta Lohani

It was about a year ago when our Auditor General in a grief laden desperation remarked that the very sanctity of the auditing got defeated in our country. He, in fact, questioned: is there any meaning in auditing when the government goes on violating the financial rules, regulations, and norms that it was required to withhold despite the fact that his office has been repeating violations? This year’s irregularities stand at over Rs 71.70 billion which is double the last year’s revenue, and is less by 28 billion than this year’s national budget. What follows from this is the insensitivity of our democratic leaders towards democratic values in terms of building a system of governance, capable of delivering goods to the people. Instead, the ‘delivery’ was directed towards them as being new democratic rulers of the sovereign people. Thus, the politically induced financial violations or irregularities kept increasing unabated directly in proportion to the rulers’ propensity of devouring with impunity whatever they can extract out of the national coffers. To this end, what they have been destroying over time is the institutional capability of the check and balance mechanism.

The extension of this governing rationale was seen in the notorious ‘Pajero culture’; a case of deceitful governmental act wrapped up in a legal construct. Ten million rupees was at the hand of each member of the parliament with or without a constituency and the prerogative to spend the money the way he or she likes. But this time the legal wrapping was inadequate, and, thus, came into close legal scrutiny when nation’s judiciary itself was in media glare for its corruption scandal and such related irregularities of the judges in the Supreme Court. This year’s Auditor General’s report contains some of such snippets through which any one can see the prevalent culture. The post democratic period has seen a spur of legal cases, particularly writ cases, in the Supreme Court where the government has been finding itself at the receiving end because its greed induced highhandedness has been badly exposed.

Even the dissolved parliament came to life through the judicial decision. So, a term came much in use as judicial activism. So much so that the then prime minister in a constitutional day function last year declared that the job of the supreme court was to co-operate with the government and stop being a ‘ Super Government’, much to the embarrassment of the chief justice and those attending the function. Now the government has felt the need even to design a legal mechanism so that the judges involved in the corruption could be brought to book by Commission for the Investigation of Abuse of Authority (CIAA). This is the move that chief justice has been vehemently opposing, saying that it as an act of infringement on the independence of the judiciary.

CIAA, the country's premier investigating agency, was first decapaciated by the new democratic rulers to augment their loot in such a way that, even when corruption was oozing out from the political level, it was debarred from investigating such crimes originating from the political functionaries. The new government after the first general election in 1991 amended clause 4 (4) of the Prevention of Abuse of Authority Act 1979 to this effect. However, the Supreme Court annulled it on September 24, 1996 while delivering its judgement in a writ petition filed by Bal Krishna Neupane. A finding of a closed room deliberations, recently organized to improve its functioning, has revealed that once the financial deals are negotiated with the accused, the commissioners themselves frame the case in such a way so that CIAA would lose the case. No wonder, CIAA has lost almost all cases filed by it in the court of law.

Two days after the Lower House passed the budget for the fiscal year 2001-02, the supreme court, on September 27, delivered a judgement in a writ petition filed by Bharat Jangam that appropriation of Rs 65.5 million was not in conformity with the law of the land. This infuriated the members of the parliament who were eyeing the million rupee on the eve of Dashain.

This big amount of money went unaccounted for. It is an open secret that such money goes to other areas, and not for the development of their constituencies. It has almost become the pocket money which they can spend the way they like it- using it as donations for some religious events in Tundikhel to all sorts of personal uses. MPs are firm that action should be taken against the court in case of any wrongdoing or corruption. But with the parliamentary session inching towards closure, it is unlikely that the CIAA bill (second amendment) will be enacted into law this autumn.

We are today in a very fragile situation of the constitutional check and balance mechanism of the present democratic dispensation. This mechanism, instead of working as countervailing forces in establishing a robust positive relationship, is being used against each other for the benefit of those involved in each such institutions being dictated by the ‘you scratch my back I scratch your' mantra. It is called systemically induced disequilibrium. That a million rupee each for 265 members totalling to 265 million rupees per year comes to Rs 1325 millions within a tenure of five years. This huge amount could be given to the national parties on the basis of their representation to the parliament to contest fresh election so that they cannot indulge in corruption for generating election funds.