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Kathmandu Sunday January 20, 2002 Magh 07, 2058.
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Nepal-India relations : Vision
for the 21st century
By KRISHNA PRASAD BHATTARAI
Nepal and India have had friendly relations
since time immemorial. Their age-old friendship is the deepest and most extensive of
any two countries in the region and perhaps in the world. Nepal-India relations are
multifaceted and include ties in geography, history, politics, and economy and are
further bound by a common cultural heritage and linguistic origins. Of these our common
interests in security, border issues and economy, particularly trade and transit and
industrial collaboration, have shaped the bilateral relations between our two countries.
A hallmark of the change in the world
environment in the 21st century is the growing political interdependence and economic
integration among countries, commonly known as globalization. The free flow of goods,
services, money, ideas, people and technology across international borders have created a
new international environment in which cooperation rather than conflict, interdependence
rather than independence, and outward looking rather than inward looking have become the
norms of interstate relations. Intensified but integrated economic relations among or
between countries have been the basic thrust of most countries’ economic policies.
Such a trend has motivated not only Nepal and India but also other countries to forge
economic integration and the world has seen more regional economic groupings at the
beginning of the 21st century than at any other time in history. The explosion of
democracy in the last decade, the tremendous progress in science and technology and the
increased pace of economic integration of the world economy are all positive developments
we must feel happy about. The tremendous changes that are shaping the 21st century,
therefore, offer both opportunities and challenges and it is only through a concerted
effort that we will be able to harness this vast opportunity for mutual benefit.
It is in this global context that India-Nepal
relations need to be examined for the 21st century. India’s own relations with both
the United States and China have improved in the post-Cold War years. These relations were
also the determinants of Nepal-India relations in the past. The United States has
acknowledged India as a major power and has extended support to India’s growing
regional as well as global roles. India and China have agreed to build a long term and
stable relationship on the basis of the Five Principles of Peaceful Coexistence. Another
factor that has an important impact on our relation is that both Nepal and India have
pursued liberalized trade and economic policies that require more openness and freedom.
These policies used to be heavily linked to the overall framework of our bilateral
relations.
So the old ideological divide and consequently
the Cold War power politics are no longer games countries were forced to play. The Cold
War is gone but the world is not any safer than before. There is a new challenge. World
peace is now under attack by the menace of terrorism. The barbaric attacks on the World
Trade Centre on September 11, 2001 show that even the militarily most powerful nations in
the world are not immune from the ravages of terrorism. The great progress achieved by the
beginning of the 21st century: widespread democracy, the immense progress in science and
technology and the increased pace of economic integration in the world are all in peril in
the hands of terrorists.
Both Nepal and India are the victims of violence
and terrorism. In Nepal we are still reeling from the most horrible violence suffered by
the members of our own royal family. India has been a victim of terrorism for decades now
but never more graphically than by the brazen attack on its very parliament on December
13, 2001. Nepal has condemned this terrorism in the strongest terms. The Maoist insurgents
of Nepal who are misguided by an ideology discarded by history are killing innocent
civilians and threatening Nepal’s fragile economy. The government of Nepal has
declared them terrorists and is now mobilizing its resources to bring them to justice. The
people of Nepal have greatly appreciated India’s support in this endeavour. The open
border between our two countries which has been a boon to trade has unfortunately also
helped miscreants find easy hideouts and facilitated the illegal trafficking of weapons,
drugs, money and smuggling of goods. Trans-border illegal activities by terrorists of both
countries must be checked through a cooperative action. I believe we must devise means to
effectively manage of our open borders without hindering the free movement of our citizens
and economy that have been the bedrock of our cultural and socio-economic ties.
In recent years trade and economic cooperation
have undergone massive changes globally. Every country is now trying to increase its
comparative and competitive edge by removing trade barriers and by participating actively
in world trade. As described earlier, both Nepal and India have pursued economic
liberalization as the keystone of their economic policies. India is a member of the World
Trade Organization and Nepal’s application for membership is under consideration. The
changed environment in global as well as regional trade requires Nepal and India to
harmonize policies and enhance their competitive advantages. Another area where slow
progress in economic cooperation has prevented us both from reaping mutual advantage is
that of water resources. Both countries should avoid mistrust and suspicion in harnessing
the vast water resources Nepal is endowed with for electricity, irrigation, flood control
and mutually advantageous development projects. We must review the progress as well as the
problems of the projects executed in the past and come forward to exploit this precious
resource.
India’s progress in science and technology
and particularly in information technology is a subject of much admiration by the
international community. Nepal, where information technology is still in its very early
stages, could benefit greatly by entering into some form of collaboration with the
information technology firms and organizations in India. Similarly, environment and
agricultural development are other key areas of cooperation the two countries must take
into serious consideration. The two countries suffer from poverty and unemployment. These
two problems have in fact been the main source of political unrest and growing terrorism.
In order to reduce poverty and increase the economic empowerment of the poor Nepal and
India should engage in active cooperation in the fields of technology, education, and
rural development. Nepal and India are also experiencing the fastest growing rates of AIDS
that can be tackled through joint but serious action. Cross-border communication of this
disease has been a serious problem for both of us. A different but related problem is that
of the human trafficking across our borders. It is deplorable that at the beginning of the
21st century there still exist so much ignorance and so much poverty to allow this
despicable trade to flourish. We must work together for the sake of our women and children
to put an end to this form of slavery.
India is the world’s biggest democracy and
a future global power. It has achieved real progress in science and technology, industry
and health and education. It has the potential of becoming a world economic power. Its
vast market and its growing economy provide tremendous opportunities for a small country
like Nepal. I would like to thank Prime Minister Vajpayee for his speech at the 11th SAARC
summit held in Kathmandu a few days before in which he stated inter alia that "India
can consider further concessional duty regimes for products" from the least developed
countries of the region. Nepal values its trade with India very much. But Nepal’s
huge trade deficit with India has remained an intractable problem. We hope that India will
be sympathetic to our trade and transit concerns.
The existing warm and friendly relations between
our two countries can be continued into the 21st century by our mutual consent, our mutual
trust and our joint interest in security and development. Nepal and India should also show
serious commitments in resolving the outstanding issues that are the consequences of our
geographical contiguity and our differences in perception. As a small neighbour and as
India’s close friend we expect India’s magnanimity in addressing some of our
outstanding issues. I also feel that Nepal-India relations should be continuously adapted
and changed in tune with the changing circumstances so that they are dynamic and effective
to further strengthen our bonds. Nepal and India can demonstrate to the world the example
of the best relations that can exist between two neighbouring countries.
(This is an abridged version of the lecture
delivered by former prime minister at the Lal Bahadur Shastri Memorial Trust, New Delhi,
on January 11, 2002)
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