Globalisation and geo-political interests

By KRISHNA RAJ REGMI

There is fear and argument over Nepal’s entry into the World Trade Organisation (WTO) that it may not be to its advantage because its interests are not well taken care of. Entry into the WTO will open the door to international markets and will allow free trade with multinationals. This opportunity will have both advantages and disadvantages, positive and negative consequences based on competitive ability of a country. The poor developing countries will be able to export their raw materials in terms of indigenous and natural resources, exploited or unexploited. Since these countries do not possess the technology and industrial base, they will be forced to import manufactured goods based on latest technologies, as they will not be able to compete for quality with the multinational companies.

Though Nepal will be able to purchase goods in competitive prices, it might not be able to provide ample protection to its own industries and conserve its natural resources and thus possibly become dependent on multinationals to cater to its needs. As a result of globalisation, Nepal may likely to be glutted with foreign manufactured goods that might increase our dependence on foreign countries, on the one hand, forcing us on the neo-colonial state and depletion of our vast natural resources, on the other. The natural resources produced in third countries will be recycled back to them after being processed in the developed countries at higher foreign exchange rates. There is fear that multinationals will be the Masters of the huge natural resources available in developing countries.

Impact on bio-diversity and bio-resources: Nepal possesses a wide range of bio-diversity and genetic resources as it possesses all types of physiographic regions, climates and vegetation from tropical-type to alpine tundra-type within its narrow strips. Nepal is also known in the world as the centre or origin of maximum bio-diversity of some landraces of plants (eg barley, buckwheat, rhododendron, orchids, herbs, etc) and animals (eg birds, butterflies, etc).

The introduction of high yielding varieties (HYVs) of crops and breeds of animals with their wide adaptation have gradually replaced the local landraces of plants and animals that have been threatened and endangered, and this situation may be further confounded, and could be even more alarming after Nepal’s entry into the WTO.

So Nepal’s acceptance of globalisation of its trade and economy should be followed by its proper reservations to the safety and security of its vast bio-resources. Nepal should endorse its support in favour of intellectual and breeders’/farmers’ property rights to the crop varieties and animal breeds in the light of food security problems brought about by liberalisation. Heavy use of modern gasoline, pesticides, chemicals and fertilisers imported from outside will have polluted our environment and caused health hazards with their toxic elements exceeding critical limits. Likewise, the indiscriminate encroachment on our forest, geo-resources, and watersheds with unplanned urbanisation and indifferent anthropogenic activities will have contributed to green house emissions and caused global warming and global weather change. Thus the security of the good Mother Earth our future generations will live in and the integrity of our very environment will be threatened. The environmental pollution knows no political and geographic boundaries.

Possibility of gene robbery and contraband: The international expeditions and research on the Himalayas and bio-diversities indicate the unique mysteries and treasures that are hidden in the matrix of our soil. As a result, our valuable natural resources are gradually disappearing and may become extinct one day. The Japanese, American, Indian and other overseas expeditions held in the early sixties and the seventies till date have been able to collect and store a huge number of genetic materials from Nepal in their gene banks. I came to know about this truth when thousands of the naked barley germplasms I was able to obtain from Dr White of the USDA in 1989/90 for research purpose were found mostly (about 50 percent) to have originated from the Nepalese Himalayan and Tibetan regions. This reminds me of the gene robbery once advocated by one of the Indian scientists with regard to IRRI-produced high yielding rice genotypes. The reality behind the Green Revolution of the US in the sixties was the result of the Norin-10 dwarfing genes, capable of producing high yielding wheat hybrids, taken to the US from Japan.

So it is advocated that the developing countries should have access to more than two-thirds of the germplasms originated from them now under control of a few developed countries and multinational companies for their own welfare and research. It looks quite unfortunate to note that the Rio de Genero and subsequent international declarations that called for legitimate rights of the third countries to the natural resources under control of multinationals once produced by them and equal contribution of all the countries to the environmental protection, has all the countries signatories to it with the exception of the US.

Consequences of globalisation: Nepal might be able to continue exporting agriculture, herbal and fabric products even after globalisation but however, it needs to improve the quality and standards of the products to stand and fetch due prices in the international market. The products of agro-based industries such as tea, coffee, cardamon, spices, herbs, non-timber forest products and currently marketable products like carpet, pasmina products, garments, etc need to upgrade their quality to be able to continue capturing the international market. Since Nepal possesses cheap labour and cheaper raw materials, it should be the government policy even after globalisation to establish industries whether collaborative or on its own rather than exporting our valuable raw materials and natural resources to the multinationals. This way, we will be able to make judicious use of our natural resources, generate employment opportunities, minimize current trade deficits, and, at the same time, promote foreign exchange earnings. We should have a strong national policy to protect and conserve our national parks, natural reserves, bio-resources, environment, agricultural fields, green belts and typical Nepalese styles, art and culture reflected in every development and construction work so as to promote eco-tourism vis-a-vis agro-based industries and thus encourage foreign exchange earnings.

Charity begins at home

By RISHI RAM PAUDYAL 

With the advent of  monsoon, there comes showers of rain and heavy floods. And in Nepal they are followed by the flood of diarrhoea. So there are floods everywhere. I have excluded the flood of blood here.

In many cases it is always the poor who suffer the most at hard times-- be it political or natural calamity. Who is suffering more at this time? The poor or the rich? Of course, the poor! If we become specific or talk about the poor people’s plight in monsoon, it’s very heart-rending. Monsoon is the time when the poor people’s store of grains is empty. And it is the very time when they have to plant rice for which they need to seek help of other neighbours. And these neighbours have to be fed. How is it possible? By borrowing? But for how long?

It is the poor people who invented this saying - Kaam garne Fagun samma, khaane Saun samma which means "We have to work till the month of Falgun (which is the second last month of the Nepali calendar year), but we have food to eat only till Saun (which is only the fourth month of the year).

And today there are much poorer people than those who originated the saying when they had at least a small plot of land to till. What will these poor say who don’t have anything in the name of property, except their own bodies and who go hungry if they don’t work hard every day on a daily wage basis? Will they say this when they spell out another saying - Kaam garne bihana saberai dekhi raati aber samma, tara bholi ke khaane? which means "We must work from dawn till late at night, but what shall we eat tomorrow?"

Even after working so hard for survival, it’s not that easy for poor people to survive. With other numerous financial problems circling around them, they have a biological problem as well. The food they eat does not contain required nutrition and the water they drink is contaminated. So what does it do to them? It causes an epidemy of diarrhoea. Do they have any knowledge how to stop it? No, they don’t. Even if they know, they don’t have money to buy jeevan jal or to go to hospital. So what are they suppose to do, then? They frequently go to an open space (they don’t have a toilet) to make a flood. And they do it as long as they are in this world. Is there anybody who is listening to it? Is there anybody to provide them with jeevan jal and to save their lives? Is there anyone with a heart of service? If there is one, come out without delay. Serve the poor first and then you will talk about addressing the issue of poverty alleviation.

Credit card, easy payments

By CHANDRA THAPA

"Iam quite comfortable with my hard cash and don’t want to carry a small plastic card". This is what probably most of our populace, even the sophisticated metropolitans will comment when asked whether they wish to have a payment card or not. If this saying is construed in their favour, then let’s analyse the following facts and figures.

Most of the frequent travellers who visit abroad must have encountered much bitter experience in nations like the United Kingdom, the United States of America, Singapore etc without a card. In most of the big hotels and restaurants of the developed nations, credit card holders are materialistically valued more than those who produce hard cash. In many cases, hotels even hesitate to check-in those without payment cards and a non-card checking is a sort of favour to the guest after intense negotiation in regard to the creditworthiness of the person checking in without card. And in some situations, a huge deposit is needed which sometimes invite unfavourable circumstances during the whole trip. Renting a car in North America without a card is almost impossible. Credit cards are not only used to make purchases but a gamut of other services are also available: cash advances, making utility payments, securing all the security data, privilege award, to name a few. And most importantly, it is very helpful to cope with emergency situations.

The sales volume for Visa brand only in the Asia Pacific region during 12 months ending December 31, 2000 reached US$ 332 billion. For the same period card sales volume growth in constant dollar terms was headed by Korea - up 102.5 percent at US$ 128.4 billion, Australia - 29.1 percent at US$ 45.6 billion, and Japan - up 14.0 percent at US$ 81.0 billion. These figures only account for one single brand and when combined with the other players such MasterCard, Diners Club, American Express Card, Japanese Bureau Card (JCB), Discovery Card etc may result in huge digits.

With demographics of about two-thirds of the world’s population and 25 percent of the world’s gross domestic product - Asia Pacific Region has more than 500 million banked consumers. With the above stated growth rate and the emergence of middle class consumers, this fertile market holds tremendous substance for the card payment sector.

Singapore, not very far in future, has declared that it wants to become a cash free zone with all the financial needs being handled by bankcards. Credit card spending in Korea is increasing at a rate of 90 percent per year.

In a very short span, the needful processes are underway whereby European consumers will be able remit money from their Visa credit cards to the cards of other desired individuals. Such person-to-person transfer will eliminate the tedious process and the exorbitant cost associated with the present modes of transferring money.

The most advanced and latest development in the payment card sector is the issuance of Smart card. A Smart card is a plastic card, which has an embedded computer chip in it for storing and processing sensitive data. The application landscape includes public telephone, e-commerce, Electronic Wallets, cable TV reference details, Health/Medical applications and other authentications such as Net stock broking, petroleum retail, and car parking. Although the payment card sector is credited for the genesis of such highly sophisticated product, today many other organisations such as telecommunication companies, mass transit companies, government departments are issuing such cards. For example, Gujarat government, a state of India, issues driving licenses based on smart cards.

All the above-mentioned facts may look ambitious, when read, even by our urban populace but this is where the world is heading towards and we cannot be an exception. In India, such payment cards are also being issued to the remote farmers, the young college students, housewives etc that makes them very convenient for making purchases at the same time subjecting them to the gamut of other benefits associated with such cards. Yes, promoting acceptance infrastructure is a must, which if given a kick off definitely picks up its pace as it is happening round the globe.

Nepal too needs to develop banking habit among its people. We just cannot make any more unsubstantial and detrimentally indigenous excuses. We do not want to be humiliated in the global arena and put ourselves in a very awkward situation by saying ‘NO’ when asked, "Sir, Do you have a Credit Card?" Nepal just cannot isolate itself with the fast moving world, where everything is changing day by day. Payments through cash need to be checked. The world is heading towards e-business, and in Nepal too, the global forces will shepherd our technology in the same direction. Without payment cards e-commerce is almost handicapped. As the name implies, a credit card render its user the benefit to make purchases or avail services on credit. Most of the payment cards offer interest free credit period facility on credit card and the credit period differs as per the issuing bank’s policy. Let’s demonstrate an example of using charge-cum-credit card with the assumption that the maximum credit period is forty-five days and minimum fifteen days. If anybody makes a purchase on January 1, then by the general rule, it needs to pay the money to the bank on march 15 i.e the month following the purchase and that too without any interest being charged. This means if we put the same money with which we opt to make purchase in our saving account and use our credit card, although very low in the present recessionary scenario, it will definitely earn certain interest. This shows people not only use the cards as a convenient loan instrument to make payments but at the same time it also brings additional monetary benefits with every purchase. In many cases there is deferred payment facility, whereby only a small portion can be paid and the rest deferred for future settlement on instalment basis. Such cards are also welcomed by many organisations as privileged/discount cards whereby the holder is entitled to certain pre-set discounts. In Nepal most of the banks issues branded cards, which is valid in Nepal and India only due to our rupee being non-convertible as yet. The locations where these cards are accepted are increasing day by day.

Is there any legal constraint whereby Nepal Rastra Bank restricts our people to carry cards, which is global in terms of usage but glittered with local appearance? Yes, there was, but not any more. With the realisation of the changing scenario, many relaxations has been made in the system and even Nepalese can now carry locally issued but internationally branded credit cards which can be used globally. In Nepal, at present only Nabil Bank Ltd, which is also the pioneer bank in issuing branded cards in Nepal, carries out this privilege of issuing cards, which is accepted globally along with the one, which is valid in Nepal and India only. It has made an outstanding contribution by presenting Nepal in the international arena by issuing international cards embossed with the Himalayan range – the emblem of our nation. Nepal can, in no way, miss the train of sophisticated, efficient and innovative financial services.