Promoting Export Trade
Need For Long-Term Strategy

By Uttam Maharjan

ECONOMIC development is a pre-requisite for uplifting the standard of living of the people of any country. And international trade is one of the major components that contributes to economic development. No country is self-dependent in all products and services. That is why, import and export business are resorted to by every country to fulfil one another’s requirements.

Nepal has adopted open market economy and liberalisation since the 1990s. It has opened its markets to foreign products and investment and reformed the financial sector to attract more and more foreign investment.

Being a land-locked country, Nepal faces several obstacles to international trade. It has to depend on India for most of its trade.

In the context of the world having literally shrunk to a global village and fierce competition taking place in the world market, it does not seem to be propitious to be on the part of Nepal to be complacent about its limited exports like garments, carpets, leather goods, agro-based products and handicrafts. Trade diversification is now the crying need of the hour. Limited exports to limited countries might not augur well for any country.

Though small in size and underdeveloped, Nepal does not lack indigenous labour and skills. So such indigenous labour and skills, together with original products and production prospects, should be integrated into a reliable export system, which would go a long way in developing and fostering productive sectors.

Furthermore, product and service sectors associated directly or indirectly with export should be developed and expanded so as to boost export. This would generate a positive impact on other economic activities as well.

In this age of fierce competition, a country has to produce goods and render services in accordance with the demands of the world market. Besides the global trend, the regional, national
and international specially of such
goods and products has to be explored so as to create their demand in the world market.

It would be relevant to note here that the Nepal-India Trade Treaty or 1996 has increased the prospects for Nepalese goods in the Indian market. Similarly, the Nepal-China Trade and Payment Agreement has made provision for carrying out unrestricted trade within the 30 km radius of the Nepal-China border.

Economic diplomacy has occupied an important place in Nepal’s foreign policy over the past few years. Its main thrusts are to promote export, increase the flow of foreign investment and attract more and more tourists.

The Nepalese diplomatic missions stationed in foreign countries are not only maintaining political and economic relations but also playing a major role in enhancing economic activities. This has helped maintain the positive image of the country abroad.

In fact, one of the most important aspects of economic diplomacy is to publicise in foreign countries Nepal’s commercial and investment policies and legal provisions relating to foreign investment. More importantly, the confidence of the foreign investors in the investor-friendly environment existing in the country can be won through economic diplomacy. This ensures the continuous flow of investments into the country. Hydropower tourism and agro-based sectors are some of the major areas that can attract foreign investment.

Transportation is one of the major pre-requisites for promoting export. In this regard, multi-model transport should be well-developed. A separate airport designed to handle cargo would add a new dimension to export promotion. Also, the establishment of inland container depots (ICDs) in three major commercial hubs of the country will hopefully contribute a lot to export promotion.

The government intended to establish an export processing zone (EPZ) for the purpose of promoting export during the Eighth Plan but the intention did not materialise because of a lack of necessary programmes. However, provision has been made in the current Ninth Plan for establishing an EPZ, most probably in Birgunj.

It would be germane to note that a conference on trade promotion was held in Kathmandu in March 2000 under the auspices of the Ministry of Commerce and the Federation of Nepalese Chamber of Commerce and Industry (FNCCI). The broad thrust of the conference was to promote export and attract foreign direct investment (FDI). The conference went a long way in satisfying the representatives from various countries regarding the investor-friendly environment and existing trade opportunities that may be tapped for mutual benefit.

To promote export, a long-term export strategy needs to be formulated. The professional skills of the private sector needs to be enhanced and institutional support and capacity must be enhanced. In fact, the hallmarks of a sound export policy are enhancement of institutional capacity, emphasis on international competitiveness and integration of trade policy into the national economic development agenda.

In this competitive world, it would not pay to be content with traditional exportable only; rather, avenues for new exportables need to be explored and endeavours made to diversify the export sector. Besides, steps should be taken to develop small and cottage industries. The products of these industries could make their niche in the foreign market.

Avoid The Din !

By Acharya Shree Dhruv

IT is a fact that continuous barrage of noise above a particular hearing level can gradually make one deaf. Ironically, it is not the live rock concerts but everyday noises like that of your kid’s toy vehicles that can cause irreversible damage to your hearing.

Noise, scientifically speaking, is that level of sound which exceeds 85 decibels. In simple terms, noise is such a sound, which makes one unable to hear someone at just an arm’s length. That way, even sound at 85 decibels (the measure of sound-level), is termed as noise if it is an incessant occurrence.

Without going into sundry details, let us see the connection between noise and hearing loss or "going deaf" as we call it. Actually, all sounds enter the ear to reach its inner part, which is lined with numerous minute hairs called ‘Cilia’. These microscopic hair are atop thousands of hair cells which vibrate with the incoming sound wave and send these vibrations in the form of electric signals to the brain, the area responsible for facilitating us to hear the sound per se.

International surveys reveal that loud noises flatten the cilia, like storms flatten the wheat crop, which takes a number of hours to get back into shape. If there is a continuous barrage of such noise, the flattened cilia is not able to straighten up completely and this causes some of them to die. The sad truth is that every time some cilia die, a person looses a bit of hearing power and if the attack continues, it may impair one’s hearing. The tragedy is that an average person tends to get immune to nearby noises but unfortunately the ears do not. Hence, the damage !

It is not just the factories or the discotheques reaching noise-levels of more than 100 decibels or even rock concerts (101 to 105 decibels), but even regular traffic noises are harmful for one’s ears as they shoot up to 120 decibels and the common man is not even aware of its consequences. As a matter of fact, many motorcyclists are not aware that the helmet amplifies noise, which makes long-drive harmful for their ears. Even half an hour’s drive on a motorbike exposes the rider to a noise level as high as 105 decibels. Even a passing car may damage the hearing as its horn gives off a dangerous level of 120 decibel sound. Similarly, one should avoid car-stereos which are more harmful as they are literally next to the ears.

Do you know that the benign-looking toy-gun or model-car or even that small aeroplane and noisy animal toys of the kids reach 90 to 100 decibels of noise-levels. It may be lethal for child’s ears, if he or she enjoys video games or arcade games having a noise level ranging from 84 to 111 decibels.

Talking about video games, even television can prove dangerous beyond a particular sound level. Though the minimum volume is 54 decibels, one can enjoy it at a medium volume of about 70 decibels. But what people do not know is that the sudden noise of a few advertisements at the same volume goes beyond 80 decibels. Believe it or not, people in noisy areas enjoy their television programmes at its maximum noise level of 94 decibels to drown the din of the neighborhood noises.

Swedish researchers have discovered that firecrackers exploding near you can make a racket upto 156 decibels, whereas the noise caused by a jet taking off about 130 feet from your position may reach 130 decibels. Even walkman and personal cassette recorders certain a noise-level going up to 103 decibels.

The list of noisemakers is a long one. But, last if not the least, item on this agenda is your mixie or liquidiser and even your vaccum cleaner. In fact, electric domestic appliances have been recorded to make the noise of 60 to 100 decibels.