Royal Address
Government Polices And Their Implications

By Siddhi B. Ranjitkar

THE government made its polices and programmes public for the next fiscal year through the Royal address to the joint session of the House of Representatives and the National Assembly on June 29, 2001. We need to take a look at the royal address from the political, economical and social points of view. We cannot single out any one of them because they are inter-related.

Politically the royal address has clearly stated that His Majesty’s Government of Nepal will adopt the policies and programmes on ensuring the national unity and consensus for achieving the objectives of safeguarding the rights of the people given by the Constitution and for ensuring social justice, security and economic progress through constitutional monarchy and multi-party parliamentary democratic system.

We have no choice other than multi-party democracy in the present global political situation. People have experimented with various political system in the last century. All of them have been found to be unsuitable for sustainable socio-economic development except for the multi-party democratic system. Hence majority of the countries including the former socialist countries have embraced the multi-party democratic system of governance. Some people may stand a chance of usurping the power taking the advantages of the political situation prevailing in a country but it will do more harm than good to such people. Hence everyone will benefit from the democratic system of governance.

Economically the government has put forward the slogan "Let us be self-reliant, and let us use the local Goods". As a student of economics I cannot accept this policy of the government because this slogan goes against our deeds; we have been preparing for entering the World Trade Organisation to integrate with the world community hence we need to be competitive. We can survive in this world of competition only by being competitive. This policy statement hints that the government might restrict import of certain goods giving a monopoly to the local industries. This will make those industries less competitive and will cause the consumers to pay high prices for low quality goods. No one will gain from such a policy. Let us be competitive rather than protective.

If we really want to develop our industries the government should act as a facilitator. Our industrial goods are not competitive because our entrepreneurs have to pay three times more than their counterparts in other countries for producing similar goods and services because of the delay in getting approval of the government agencies, banks and so on. If the government eliminates such hindrances, only then will we be able to be competitive.

Sometimes our government agencies act unfavourably towards the sprouting industries. For example, Nepalese entrepreneurs have made a headway in Information Technology but recently the government has imposed an additional tax putting brakes on the flourishing Information Technology. We should not allow such things to happen if we are really care for the economic development of the The government’s policy of developing agriculture is far more positive than its policy for industrial development. The royal address has stated that the government will implement the Agriculture Perspective Plan - a 20-year plan, which will promote high value cash crops and small agricultural enterprises. Nepal will have difficulties in competing with other nations in food grain production. Large scale productions are required to compete but Nepal does not possess vast agricultural land for such a large-scale production. However nature has favoured Nepal for producing high value low quantity cash crops that would be competitive while producing in a small scale. To this end, we need to exploit various climatic conditions at different altitudes bestowed by nature.

The government has made poverty alleviation one of its main objectives. The royal address has stated that the government will implement all programmes on poverty alleviation under a single umbrella. A student of economics knows that the lack of employment opportunities is the main cause of poverty in any country. Hence the government will be in the right direction if the government opts for creating employment opportunities. Again it will be able to do so if it acts as a facilitator of for development.

The government has been conducting income generating activities and skill development training, and has set up a Poverty Alleviation Fund to provide the poor with micro credits. We have numerous NGOs and INGOs conducting such training and providing micro credits to the rural poor but we are still far behind in alleviating poverty because those trained do not get employments, and those producing agricultural and forest products do not get markets. Even if they have markets they face difficulties to move their products as various police check points harass them.

Socially the government has made a very positive policy of acting as a facilitator providing the local bodies with resources required for running agricultural extension services, primary education and health care services, postal services and livestock development services. Local bodies know what the rural people need for their socio-economic activities hence they are more competent than the government staff to provide the local people with the technical and social services required for their development.

Similarly the government has made another positive commitment to encourage non-governmental organizations, local bodies and even the private sector in providing people with drinking water. However the practice of digging roads for laying pipes, and repairing roads and carrying out development work with the intention of consuming the budget at the end of fiscal year is not in favour of effective development work. Hence the government should freeze the development budget at least one month ahead the fiscal year ends so that the unscrupulous government agencies are not be able to take the advantage carrying out development work at the last minute of every fiscal year.

The Nepali Congress government has been the advocate of privatization and economic liberalization, and has privatized a number of state-owned enterprises, and has liberalized the economy to some extent. All these activities have made a long-term positive impact on the national economy but the government has glaringly failed to publicize the economic gains made so far.

The government has been setting up one fund after another in different names. For example the royal address has stated that the government will set up an Electricity Development Fund for encouraging small and medium size electricity projects. The government has a policy of privatizing the state-owned enterprises on the one hand, and on the other hand has been establishing funds such as poverty alleviation fund, town development fund, and now electricity development fund. We do not need such government funds if we can use the private finance companies that have come up recently for financing various development activities and projects.

We have seen some contradictions in the government policies and programmes. To amend policies and programmes we simply need to avoid such contradictions. We need to strictly adhere to our commitments.

Rescuing Tourism Industry

By Nishchal Nath Pandey

‘MAN proposes but God disposes’. Sometimes plans, programmes and strategies that have been carefully delved and considered on for a long time fall upon the harsh scalpel of destiny compelling us to accept its verdict. If this was true in any sense and can be felt by not only the government and its related departments but more so by the general public, it is the fate of our tourism industry which has of late been experiencing needless backlash of events that it has absolutely no connection with.

First, it was the hijacking of IC 814 from Kathmandu. Of course, hijackings have been taking place all over the world ever since long. However, what was distinct with this particular hijacking was the negative publicity done by some sections of the Indian and western media regarding the safety of the Tribhuvan International airport. In today’s well-knit world of electronic media and the Internet revolution, latest news is the most sought after component and obviously when there is fierce competition, some channels including the print media stoop down to erroneous information to popularize themselves. While the country’s image might have suffered a bit, the tourism industry had to suddenly confront the negative broadcasting resulting in swift cancellations of bookings including the suspension of Indian Airlines flights. But, time was the best healer. Thanks to the well-wishers of Nepal that the country has nourished for decades and the tourist season that followed, the event was soon forgotten by those in the tourism industry. The hotel occupancy once again rose to its previous index, trekking and mountaineering businesses resumed their effervescence and even the Indian tourists that had believed in some of their t.v channels soon uncovered the beauty of the kingdom and resumed a hassle-free and inexpensive tour de grace to Nepal. With the initiation of RNAC’s Bangalore flights, an added market in South India appeared on the scene.

In this respect, one must appreciate the efforts of a private sector organization like the Nepal Tourism Board (NTB) which has relentlessly been carrying out diverse publicity and promotional programmes backed by a well crafted marketing strategy. Every year, one learns that the Board invites entrepreneurs in the tourism field for their critical suggestions, viewpoints and recommendations in order to make the promotional package more effective and goal oriented. For the first time after it was launched, the two-percent tourism service contribution (TSC) fee has been potent in cruising Nepal as a holiday destination abroad. Additionally, with road shows, FAM trips, international travel marts and other promotional campaigns and advertisements through internationally reputed newsmagazines and television, the potpourri as a safe, enjoyable and adventurous destination was being spread overseas. NTB’s advertisement line "Mt. Everest and More..." seemed to have done the trick. Then, as if as ill-starred three sisters coming together, there were three major, tumultuous incidents that rocked the industry-the 10 percent service charge row, the three day Nepal bandh and the tragic incident inside the Narayanhiti royal palace on June 1st. On all three circumstances, Nepal could not sustain the negative publicity being carried out, could not assure the travel tour operators that safety and comfort of visitors would not be taken for granted however best it tried and hence had to suffer from the sudden drop out of tourist figures. By virtue of the first incident, the hotels had to close down for at least one day while due to the second, what most called ‘an unwanted political programme’; a complete clampdown of the country resulted in tourists opting to cut short their visits. The third was a grief stricken tragedy for the whole of the country and the people at large. Obviously, the industry had to bear its share of distress. Its most facile casualty was the special India campaign planned by the NTB that was supposed to begin from the month of June.

Hotels are yet to recover from the slackening up of tourists. Entrepreneurs in the field are depressed once again. Even the most happening tourist spots like Thamel, Dhulikhel and Nagarkot are seen expressionless and the only alternate has been to pray for nothing untoward to happen. Their apprehension probably is right because if we are to see the figures, any stable and tranquil fiscal year has experienced a hike in the arrival of tourists. The fiscal year 1987/88 can serve as an illustration when the tourist inflow figure not only upsurged like never before but furthermore the Tribhuvan airport received two unbelievable visitors-the 747 jumbo jet of Air Canada and the Concorde of Air France even before it ever landed in New Delhi!

On our part however, probably a time has come to remodel our India campaign in the changed international/regional travel scenario. A flight from Mumbai to Kathmandu costs the same as to Singapore and Bangalore-Kathmandu sector amounts the same as to other cities to South East Asia. This is one reason why Indian tourists have been snatched away to other places. The tourists from our southern neighbour had previously been attracted to come over due to the fact that they do not require visas and passport to visit Nepal. Additionally, the casinos and the foreign goods found in the gaudy supermarkets of Kathmandu added that extra topping. Lately, with the opening up of the Indian economy, foreign goods like Gucci, Versache and Christian Dior have made an easy entry into the Indian cities. So much so, a casino-ship has been floating in the coastlines of Goa to cash in on the nouveau riche of urban India. Lately, the only possible charm that we are left with are the Mt. Everest and the Pashupatinath. Hence, unless we reform our marketing strategies, it is going to be an increasingly difficult task to attract Indian tourists. While, a fresh outlook towards the tourism industry from all quarters especially from all the political parties of the country is most urgent, the industry too must take a lesson and try refocusing into areas like domestic tourism. They must not forget that the Nepali upper class and upper-middle and middle class can become a cushion or even a safety valve at times of trouble. Why not cater to their areas of interest(s)? Why are we not thinking of organizing mountain flights for the Kathmanduites that have never seen the sight of snow in their lifetime? Rafting, trekking, pilgrimage tours can persevere with the backing of the domestic tourists if we are to shun old notions like "Nepalese don’t spend enough" and "Nepalese don’t take a holiday". The sooner we eschew worn out assumptions, the quicker we are going to recover from slowdowns such as the present one.

Glimpses Of The Social, Economic Life of the Medieval Nepal

By Guna Dev Bhattarai

KATHMANDU, Patan and Bhadgaon were the capitals respectively of the three principalities of the valley. Kathmandu was the centre of trade and commerce. The people of the urban areas then were god-fearing and superstitious but were expert in craftmanship. The commoners were quite indifferent to the political squabbles of the valley kings.They were simple and hard working, economically sound and their wants too were limited and quite satisfied with what they obtained from the land.

Kathmandaoun, Patan and Bhadgaon were densely populated cities. Never-theless, there was enough arable land to feed them. Air pollution was foreign to them. Almost all the houses had gardens and courtyards. Women in particular would consider their first duty to visit the temples and worship their deities. They seldom kept servants and performed their household affairs by themselves.

The Head of the family was honoured by other members of the family. There was strict discipline among the members of the family, and obedience to the parents was the order of the day.

Peasants, both male and female, would engage themselves in manual labour throughout the year. If they got rest from the work they would entertain themselves in feasts and festivals either social or religious. Their life was simple, honest and enduring. Besides agriculture and horticulture the very peasants would employ themselves in various fruitful activities such as spinning, weaving, load bearing etc. Even in the adverse circumstances they reconciled to their fate.

Trade and commerce were in a flourishing state. The Jyapus and Udas had their own handlooms to produce cloth for themselves. The fine ones were exported to the hilly regions and Tibet. The artisans of Patan had, to a large extent, monopolised the metal industries. They would make brassware, bronze statues of different deities and also , silver and gold ornaments.

The facilities of transport and communi-cation were meagre. Nevertheless, there were foot tracks which connected different parts of the state. Animals and porters were used in carrying goods from one place to another.

During the medieval age the joint family system was in vogue. Sons, grandsons, great grandsons and their spouses lived together. Generally there was unity among all the members of the family in which the headman by virtue of being the oldest commanded respect from all other members. He possessed every right to punish the persons if the latter acted against social and religious norms.

As there was water-tight caste system there were many rules pertaining to marriage divorce, remarriage and the like. The high class individuals i.e. the Brahmins and the Kshetriyas and some well-to-do businessmen could marry more than one spouse. The lower caste women were entitled to divorce their husbands if the latter slighted, neglected or hated them or were suffering from incurable diseases but the Brahmin and the Kshetriya women were deprived of any right of divorce.

There was no system of Parda among the women. They freely mixed in society with some restrictions imposed upon them. Female education was confined to some aristocratic families. As the medieval society was divided into high and law castes each and every one was bound to accept the rules and regulations of the family. Lower caste persons were deprived even of normal facilities and privileges. They were always engaged in the service of high caste persons.

The Jyapus and Khusals, as they were classed as lower caste, were not given due respect for their work. Even the masons, potters, carpenters, dyers and the like, inspite of their contributions to the betternment of society, earn barely enough to keep them alive. Their contributions of the material progress were not properly heeded. Their labour and skills were not respected by the high caste persons. In short the high caste people enjoyed their life at the cost of the lower ones.