Expanding Financial Market
Depositors' Preference

By Gandhi Raj Kafle

PEOPLE generally do not prefer to lend and borrow money. They take lending or borrowing money as a risk, which can damage their social reputation and credibility. Yet a large number of people are compelled to lend and borrow to meet their everyday needs. There is no option for them to escape it. Any one, who tries to escape risk may face troublesome life. Therefore, it is proved that lending and borrowing both can give good economic advantage for rational human beings to move ahead smartly in the path of their respective professions.

Different

However, it should be carefully considered that the use of money borrowed and money earned is different. One has to be purposively focussed on the use of money borrowed because the obligations to repay it after a certain period of times with or without interests is always there. If an individual's economic venture fails to make profits, it will badly affect the debt payment process. So, spending earned money is quite comfortable while the use of borrowed resources add additional liabilities for the future.

Against this backdrop of lending and borrowing preference of mankind, the financial sector of the Nepalese economy has been functionally growing over the years. This in itself is a positive sign. But, so far as proper use of financial resources is concerned, the experience of bank sector should to be carefully examined.

The cases of bad debts must be at manageable level. However, everything is not in the right track in our banking sector. The Nepal Bank Limited, the nation's oldest commercial bank, and the Rastriya Banijya Bank, another commercial bank established at government level, are often reported to have greater number of bad debt cases. The presence of such situation is, indeed, not good for the promotion and development of banking sector in the country.

The economic ventures established at small scale such as co-operatives, finance companies and similar other institutions, which meet the banking services of the people, too need to be discussed in this connection. Unlike banks in Nepal, these institutions allure customers through the medium of higher rate of interests. Their rate of interests for the periodical deposits at present vary from eight per cent at lower level to fourteen per cent at the higher level. This is quite attractive offer because the bank's interest rate nowadays stands at very low.

How can extremely low and noticeably higher rate of interests comfortably co-exists in the same society facing economic slowdown? Does not it leave a room for cheating gullible customers? Has the authority, which regulates the banking and financial sectors of the country, carefully taken up the measures to guide and direct these cooperatives, finance companies and commercial banks to guarantee the best interests of depositors? These are the few questions, which require answers.
Certainly, the banks in our country are more trustworthy and dependable than many finance companies, which are yet to establish their business credibility. But, the banks, which enjoy so much credibility and faith from customers, have low promises to depositors. This existing situation, has led to the emergence of finance companies in the country. The finance companies have tried to create their fortune alluring customers towards their higher rate of interests for both loan and deposits.
However, so far as this business is concerned, the government and its fiscal and monetary authorities cannot remain indifferent to the functions of the country's micro-credit agencies. That is why close vigilance has been emphasised from the concerned institutions. Such an emphasis will surely be relevant because the country has already experienced business anomaly from the mush-rooming finance companies and cooperatives.

Some of the finance companies and co-operatives could not pay the amount of customers' deposits compounded by the higher rate of interests at the end of time. Not only that, the cases of shutting down offices and fleeing from the business are common practices these days. It is certainly a bad experience, which should not be repeated. For it, the country's monetary authority and other related bodies must make efforts to check such anomalies of the banking and semi-banking sectors.
Certainly, a finance company has full right to be closed in extreme case. This is natural. After all who wants to continue to business, which has no future? So, a case of a company's closure is as simple as a case of an emergence of a new venture. Both of the cases matter less to the people. It's entirely a matter of risks for promoters. The crux of the problem, therefore, is to save customers. In this vein, for institutions offering banking services the payment of principal amount of money with interests during the closure of a company is compulsory.

At present, like a few years ago we do not hear the cases of closing of offices of finance companies and vanishing of promoters. This may give many a good impression because nobody wants the crumbling of institutions, which aim at meeting financial needs of the people. Even though the concerned authorities must be alert.

Reform

Precautionery measures in the financial sector must be adopted in time because the country is yet to become a safeland from the economic slowdown. Besides it, the chaotic investment environment in the backdrop of peace disturbing activities has really troubled the nation. These fresh economic issues call for reform measures.

Globalisation Of Terrorism

By P. Gopakumar

TERRORISM has indeed been a world wide phenomenon. The gruesome terror strike on Indonesia's traditionally tranquil tourist island of Bali recently, killing at least two hundred people and injuring several hundreds confirms terrorism has been globalized. It was one of the world's most devastating attacks on tourists. Indonesia, a sprawling archipelago where Islam is a traditionally moderate and foreign nationals have seldom been made the target of separatist's violence. There is no clear pointer to who masterminded the Bali operation?

Since the majority of the victims were Australian tourists, who flock to Bali as the nearest and cheapest foreign resort, some experts speculated that the attack may have been aimed specifically. In 1999, the Australian troops took control of East Timor, which Indonesia had held in its possession for the past 25 years in a successful military operation. Later the territory's voters opted for independence in UN referendum. But independent analysts have suggested the assault bore the hallmarks of Al-qaida and regional allies such as Jemaah Islamiyah, a group allegedly seeking to set up a pan-Islamic state in Southeast Asia.

The heinous action of terrorism in Bali sends alarm bells jangling throughout western capitals. The war on terror has had a serious setback. Having engineered just a change of government in Afghanistan, now the US is keen on completing the unfinished agenda of the gulf war. If at this juncture, the tension in west Asia's to rise, it could trigger off greater terrorist activity by pro-Al-qaida and pro-Taliban like elements in the countries where they have migrated just before the US led coalition's retaliatory strikes in Afghanistan.

According to Time magazine the spillover of thousands of Al-qaida and Taliban are regrouping in Pakistan, Bangladesh, Indonesia, Malaysia and Philippines.  The situation in Pakistan can only be considered to have deteriorated. The rising anti-American feeling in Pakistan was explicitly visible. There has to be a careful evaluation of the current and possible future situation in Pakistan following the victory of Jehadi elements. The rise of similar Jehadi group i.e. Taliban in Afghanistan could be an ideal lesson for the international community. Similarly, as per the Time magazine report, Bangladesh has been the other new haven for the religious terrorists as just before the retaliatory strike in Afghanistan by the US led coalition, Bangladesh militants, with the knowledge of the intelligence agencies there, welcomed secretly a shipment, full of illegal emigrants, believed to be from Afghanistan. Is Khalida administration taking enough steps to crack down the rising militant outfits in Bangladesh? Malaysia and Singapore have done commendable job in cracking down the suspicious outfits and have often accused Indonesia for not making enough efforts to crack down the militant outfits there. Instead of chasing shadows of terrorists in Iraq, the only way to put an end to it is to strike at its heart - wherever that might be.

Now the terrorism and the religious extremism are holding hands together. It is invidious to blame few religions for fostering religious extremism. Soon after the Kamikaze strikes at the American establishment, a few American leaders as well as some US media personnel ornamentally used the word 'crusade' several times which only helped to provoke the Muslim mindset throughout the world. Such emotional outrages could have been avoided. It is inappropriate such bursts from responsible people. If terrorism has to be fought successfully the Washington will have to take care that it does not irritate and inflame passions in these societies.

Similarly many may rush to the conclusion that something is basically wrong with Islam and that is why it produces fugitives like Osama Bin Laden, Mullah Omar and Abu Sayyaf like and organisations such as Taliban and Al-qaida. But we must remember that the Middle-East soils have been great and tolerant civilizations existed there even before Islam took root in that region. And for this reason they must not be trifled with.

Finally, do we have only through military actions to bring the terrorists to justice? Can we bring them through any alternative means, I mean, non-military means to justice? Anti-war activists through rallies and demonstrations often urge peace with terrorists. .

HIV/AIDS Awareness

By Hari Bandi

THE issue of AIDS is very sensitive and serious to address properly and difficult to tackle successfully due to many factors. Information, Education and Communication (IEC) activities are targeted to change the high risk behaviour for transmission of HIV.

The role of IEC in HIV prevention activities have been stressed again and again. However, the use of media for educating the people needs careful planning. Ideal principles of IEC activities are based on theoretical aspects of adoption and alternatives according to the demand of the situation. Cultural variation and related factors are to be considered to design proper strategy to change high risk behaviour of the people. So, studies should be carried out in an attempt to change the risk behaviour before undertaking interventions.

Following areas are to be considered as main elements to plan and implement the IEC activities; knowledge of the target groups and their needs, knowledge of media, selection and use of proper media to achieve maximum benefits, and channelisation of monitoring and evaluation system to activate feedback mechanism, Consistency has to be maintained for maximum level of right perception and every dimensional aspect should be considered for all around performance targeted systematically from programmer's attempt to receivers as well.

Message should be designed to reach various groups of people. This requires an empathetic approach with the combined insight of social and behavioural scientists, media specialists, extension workers, community health workers and a most important source of inspiration, the people themselves.
Health messages need to be planned for different groups of people and locations in view of the diversity. The messages should be location specific to make an effective impact. It is better to use message drawn from Nepalese folklore, myths, mythology and must not be alien to Nepalese ethos and values.

Social dynamism has to be taken care of, as it is consisted of multi ethnic groups before setting any priorities. Their common ground are to be defined and social behaviours needs to be studied with psychological and cultural sentiments. Rational reasons should be accommodated for proper information and education for better alternatives.

Therefore, there are ample chances to catch HIV in different situations. However, communication strategy on HIV/AIDS is to be based on the background of fleeting population consisting of diversed groups but must be designed specifically. Communication skills are to be sharpened to click the message on HIV/AIDS. Physical facilities as barriers to receive the message such as low reach of mass media programme illiteracy, language variation should be considred to hit the target groups.
Better approaches should be explored and maximised. Opening new avenue to our approaches such as street drama and use of other traditional media are better alternatives. Rapport building and participatory approach between communicator and receiver has to be extended. HIV/AIDS information should be given at every level of formulation and implementation of awareness programmes. The vicious circle of IEC principles need to be followed from the programmer.

Before one communicates major policies in order to make them effective, there has to be a communication system functioning within the organisation. Each organisation has its own identity and culture which make a difference to others.

Communication is an instrument of change and transformation. Communication is an instrument of control and command as well. Ideal communication has to be a two way process giving as well as receiving information and direction. We must give overall emphasis on carrying the people's message to 'Us' as well as carrying 'Our' message to people. A good communication system should build channels of information both upwards and laterally.