Benefits are potential and intangible

By RATNAKAR ADHIKARI

Nepal’s accession to the World Trade Organisation (WTO) is gaining momentum with the government, business associations as well as civil society organisations (CSOs) actively getting engaged in the preparation process. Not even a week passes by without a meeting on WTO being organised. While these meetings have created tremendous awareness among various stakeholders, they are still confused about the benefits and costs of Nepal’s accession to the WTO. There are a number of speculations on this issue, but little has been done so far to pinpoint the benefits and costs associated with the Nepal’s proposed accession to the global trade body having almost universal membership. However, it has to be made clear at the very outset that the benefits of WTO accession are only potential and intangible, whereas costs are immediate and real.

Against this backdrop, this article attempts to analyse the benefits and costs in two parts. While the first part deals with the benefits, the second part will deal with the costs.

First and foremost, the WTO, being a rule-based trading system, offers potential for Nepal to serve the vast array of international markets without being discriminated against any other competing nations. Non-discrimination is the cornerstone of the multilateral trading system espoused by the WTO. As Article I of the General Agreement on Tariffs and Trade (GATT) mandates all member countries to follow the principle of "most-favoured nations", Nepal will potentially get unfettered access to global market at equal or no less terms than being enjoyed by other members. Similarly, Article III of the GATT mandates the member countries to treat the foreign goods or services no less favourably than domestic ones (a concept popularly known as "National Treatment"). This implies that Nepalese goods or services will receive the same treatment as the goods and services of the importing country.  

Secondly, Nepal’s excessive reliance on three exports markets, namely, India, Germany and the United States has made the country’s foreign trade extremely vulnerable. With the WTO membership, Nepal can explore other destinations for exporting its products in the international market. This also helps contain the dominant influence orbit and bilateral pressure of our southern neighbour.  

Thirdly, as per the WTO Agreement, landlocked countries will have unfettered access to the nearest ports. Once Nepal obtains the WTO membership, it will get access to port purely as a right, as per the Article V of General Agreement on Tariffs and Trade (GATT). However, this does not mean that India (which is the only country that could provide viable access to its port to the Nepalese traders) will have to open all the twenty-two entry points for the imports of goods within Nepal and export of goods from Nepal.  

Fourthly, the WTO offers special provisions for least developed countries (LDCs) like Nepal. Higher transition period of the implementation of the agreement, technical support, due restraint on disputes involving LDCs, and special treatment while liberalising services sector are some of them. However, one has to take cognisance of the fact that not all the special and differential treatments contained in various WTO agreements are fully operational.  

Fifthly, WTO membership is a means to ensure policy lock-in. Nepal has significantly liberalised its market over the period of past one decade or so. However, there is every danger that the government could reverse the open policies at the behest of the pressure groups. Policy reversal is an acute problem in Nepalese governance system because we have witnessed how changes in government results in virtual "U-turn" in some of the policies. WTO membership is a potent tool to tie the hands of the governments from reversing earlier policies. Once a commitment is made at the WTO whether on tariff rate or on the areas of services liberalisation, the government cannot renege on its commitments without paying compensation to its trading partners. Paying compensation involves a politically painful process and the government is least likely to take such a risk by jeopardising its political interests.

Sixthly, there are certain benefits from early accession. For example, founding member countries of the WTO made very little commitments to become its members. However, due to the possibility of inclusion of new issues in the WTO proscenium Nepal will have to take higher degree of commitments should Nepal decide to delay its entry into the WTO. Moreover, and due to the legal ambiguity contained in Article XII of Marrakesh Declaration, existing member countries of the WTO have been imposing WTO plus conditions on the new members and this problem is likely to exacerbate in days to come. The moral of the story is that early membership means less commitment and vice-versa. However, this does not mean that Nepal will do well by jumping into the bandwagon without keeping its house in order. Therefore, our government will have to strike a balance between these two competing objectives.

Finally, some multilateral and bilateral agencies are ready to provide technical assistance to Nepal in order to help better integrate itself into the global economy. While some of them could come even without becoming a member of the WTO, some are tied to the WTO membership. Should Nepal join the WTO it would be easier (however, this does not mean it is guaranteed) to obtain such technical assistance.

Meanwhile, there is a considerable amount of misinformation floating around. Some say if Nepal does not join the WTO, its garment industries will continue to receive quota from the developed countries and they will be saved even after 2004. This is not true. Even if Nepal does not become a member of the WTO, quota system is bound to phase out since the so-called Multi Fibre Arrangement (MFA) under which quotas were provided to countries like Nepal is going to be phased out and fully integrated into the Agreement on Textile and Clothing of the WTO by 31 December 2004.

The reason why benefits are called only intangible and prospective is simple because they are not automatic. Nepal will have to work hard to obtain those benefits. For example, as mentioned above, the WTO membership will provide tremendous market opportunities to Nepal, but it cannot take advantages of these opportunities unless and until supply side constraints are systemically addressed. Obtaining the WTO membership will only prepare Nepal to face the battle; it is for our government to create an enabling environment, in cooperation with the relevant stakeholders, to ensure that battle is won. The battle is considered won only when our business enterprises could covert the market opening into market entry.

(To be concluded)

No more lame drama

By YUG PATHAK

The ‘drama’ begins with all the characters on the stage. Characters cheerfully gossiped and whispered to each other. They always look involved in their own dramatic characterisation. The audience, with their great patience, engross themselves to unfold the actual dramatisation.

This snapshot is the initial part of the ‘unannounced drama’ staged in Rastriya Sabhagriha on March 2. Being an eyewitness, I myself realised a character in me participating in the drama. Characters loudly played their own damphoos, all facing different directions, concurrently enacting the same actions. That stimulated, neurotically tempered and eventually precipitated my temperament.

One character advanced, smiled from the heart and admitted his dove-white disposition for peace. I got involved in his gestures. His gesticulation could do a lot for the audience. He artfully recited his old poem titled ‘all-party government’ footing on Article 128.

The next character started with his already public ‘revive the House’ song, featuring his ‘better than the best’ advocacy for peace. I felt myself melting and integrating in the song. What a great admiration for peace, I thought.

Playing the flute of peace, other characters too appeared on the stage, praised the white-dove and settled. Finally, all declared a need for ‘a common focal-point’, and began to beat their respective damphoos that caused the discordant echo. Slowly every character moved to face entirely different directions. Dust rose and gradually covered the white-dove.

‘Chaos has come again’, I uttered the famous line from Shakespeare’s Othello. I found myself detached from ‘the drama’, its actions and characters. Thirst parched my throat. My eyes tried to figure out the dove but failed. The characters were still crying for peace but their sounds sank in the chaos created by themselves.

That way ‘the drama’ ended. But chaos could not end in me and perhaps in everyone watching ‘the drama’. I remembered a drama " Six Characters in Search of an Author" by an Italian dramatist Pirandello. In the drama, characters, abandoned by the writer, set out to search a new writer. As absurd as the characters of the drama are the characters of our national political drama, what was performed at the interaction programme I just featured. All the characters, political leaders (UML, NC and others) accordingly, were in chaos there, all seemed to be searching a writer who could write. Their absurd ‘characterness’ is fragile and invertebrate.

That was a national scene presented as ‘a lame drama’, unable to erect upright, inapt to materialise the peace-process, a common feature of the so-called mainstream political parties. They ridiculed each other, ultimately getting to nowhere. They ended up creating a mess of no-meaning at all.

Rome is burning and Niro is playing his flute. This is not a positive sign. Performing Niro-act could be a sentimental outlet but not a creative act. The nation needs Madhav Nepal, G P Koirala, Hridayas Tripathi, Chitra Bahadur KC, and others to find a suitable solution to the peace-process, not to play the Niro-act. Niro could weep his tears as he had no compulsion to answer, but history will seek an answer from the political playmakers if the peace process failed.

A tribute to Prof Tara Pad Chaudhuri

By VIJAY B KUNWAR

Simply coming and going will not do", were the common words Prof Chaudhuri would sometimes resonate aiming at students who, he thought, were not serious enough to seek excellence at the Central Department of Economics (CEDECON) at Kirtipur. Among many virtues he possessed, this part, though very serious and meaningful, was the lighter style of his concern towards his students one could recall with profound gratitude even after so many years of a relationship with Prof Chaudhuri as a teacher.

A Colombo Plan Professor at Tribhuvan University, Dr Tara Pad Chaudhuri came to CEDECON in 1960 and remained upto1969. After completing the deputation, he returned to his own Department at the Statistical Institute of Kolkata, where he was a Professor. A Masters Degree holder in three subjects: Economics, Mathematics and Statistics he had a PhD from the London School of Economics. After his retirement from the Institute at Kolkata, he wrote the Department at Kirtipur about his happier and memorable days while in Nepal. The Department invited him to join it again, which he happily obliged and restarted his "selfless" and altruistic services. From 1975 onwards he remained with the CEDECON until his death on January 22, 2003 completing 91 years’ life cycle on this earth.

Before joining the TU, Prof Chaudhuri made an arrangement with the university that he would not take his salary. He asked the university to deposit the amount to create "TP Chaudhary fund" that would finance research activities of faculty members and award PhD scholarships. He had established "Tara Pad Chaudhary Medal" for toppers of Economics major in Diploma (graduate level)" and Masters level, while as a Colombo Plan Professor. Many students have benefited from this fund and those who got the Medals felt honored and inspired equally.

Born on January 15, 1912 in Kolkata, TP Chaudhuri lived a highly disciplined and organised life. A single throughout his life, he had no immediate family. He was allotted a residential flat where he was supported by a TU junior staff. Before falling sick and becoming immobile he lectured upto the age of 89. Some of his distinguished students, to name a few, have been ex-minister Bharat Mohan Adhikary, the ex-vice chairman of the National Planning Commission Dr Mohan Man Sainju and Prof Parthibeshwor Timilsina. Hundreds have retired as teachers, government secretaries and executives in high offices, while still a few thousands are ruling the market as qualified economists and professionals.

"He was a total and unbending person and has been a source of inspiration for contemporary economists in Nepal," says Dr Madan Kumar Dahal, who currently heads the prestigious CEDECON. "He is our honourable guru, a friend, philosopher and guide. An example of sacrifice and selfless devotion, he is no more with us. The light has gone out. But he will ever remain with us in our hearts deep inside and in loving memories," were the heavy hearted words coming out of Prof Dahal.

I once visited the Department, where Prof Chaudhuri had been associated with, and where this author also had been an ex-student. Not more than an average student myself, I recall the brief chats outside a classroom and even after a few years. He was delighted to see or meet his onetime students employed and occupying high offices. Though he kept aloof from politics, he felt delighted when some of his students had taken to politics and got good positions. But he did not hesitate to sharply criticise the politicians heading to wrong tracks. And equally, he was appreciative of the right actions.

After Prof Chaudhary passed away, I met Prof Dahal and knew that the Department was planning to erect a half life-size statue at the premises of CEDECON. They have a tentative target of completing this job by the first death anniversary which falls in January next year, for which they were busy in a fund raising campaign. But in the immediate days to come, the CEDECON has decided to publish a book entitled : Readings on Nepalese Economy. "This book will be dedicated to Prof Emeritus Tara Pad Chaudhuri and will be in the book stalls by July this year," declared Prof Dahal.

Prof Chaudhuri is learnt to have left behind a personal "will" prepared. His professional disciples and descendants have a plan to abide by his last "wills". One of his foremost wishes being "to die in Nepal," destiny itself has fulfilled this in January. The late King Birendra, as Chancellor of Tribhuvan University, had conferred a distinguished honor as Professor Emeritus, for his outstanding and lifelong dedication, the only honour conferred to anybody so far. It was his life and blood he burned as fuel to ignite the onward process of economic development of Nepal. A "videshi" (foreigner) by birth, Prof Chaudhuri loved Nepal more than any Nepali of his time.

He was sometimes a sort of non-believer in immaterial existence. I have not much of an idea of his insight regarding any supernatural or godly beliefs. We as students may have misjudged him when he said, "look, they say curious things about Shivaji, the Mahadeva. Okay, Shivaji was God and could live in the Himalayas, but how could the snake live up there, in such an all-time minus temperature?!"

He lectured on micro and macro economics, manpower planning, demography and statistics. Sometimes he made us think more than twice when he paused for our attention to ask, "look, the world population with the two per cent growth rate is around five billion today. Then how could there be "crores" of armymen in the Mahabharata back those thousands of years?!" He had logic, demographically sound. But we just sat amused, did not refute or argue against. Every student preferred to be conscious and disciplined while before the self-disciplined and a seemingly tough professor. We watched him, before or after the classes, his steps like a lion undeterred and concentrated with a facial impression as if he were on a mission classified.

He often used sarcastic and satiric version in his expressions to call for more attention of the students. But he never made any funny remarks on the other gender or matters pointing towards sex and love. However, I have a bleak memory of one incident, when one of our courageous mates asked why the professor did not marry. His un-offended reply was, "look, who will marry me at this age?" His wit and sense of humour made everyone of us laugh aloud.

Today is the 45th day since Prof Chaudhuri left us behind beginning his last journey towards eternity. May I request my gurus, colleagues and predecessors and younger generation students, to join me in paying our heartfelt obituary to Prof Tara Pad Chaudhary, a legend in himself and a dominant personality throughout his life. He will remain an idealistic example and an everlasting source of inspiration to all of us who dedicated his life and assets so compassionately for the improvement of teaching and research in economics. He always knew to give. We have little knowledge of what he took from us except these meagre words of tributes which only have a one-sided approach of the classical legend.