Sagging Economy
An Exigent Need For Revival

By Uttam Maharjan

THE last fiscal year painted a gloomy picture in the economic sector of the country. That only a growth rate of 0.8 per cent was achieved during that period has come as a fatal blow to development planners and policy-makers. The current budget has set a target of 4 per cent economic growth, but the existing economic indicators reveal, rather on a disappointing tone, that it will be hard to achieve more than 2 per cent economic growth. Considering the population growth rate of 2.44 per annum, which is sufficient to double the population in 30 years, the economic growth rate of less than 2 per cent is every bit bleak.

Since the 9/11 nightmarish attacks on the USA, the world economy has appreciably plummeted to an alarming level. The Nepalese economy, too, has been reeling under that after-effect. The tourism industry, which is considered one of the biggest forex spinners, has been badly hit. This has impacted the hospitality industry so harshly that the economic scenario has changed for the worse. Those working for hotels, travel, trekking and rafting agencies, airlines and other tourism-related organisations have been thrown out of work in large numbers. Although this year is being observed as the International Year of Mountains and the Destination Nepal Year, the enthusiasm generated at the beginning of the year has faded away. Even the hope of wooing Chinese tourists after the historic signing of a Nepal-China agreement to this effect is slowly giving way to disappointment. However, Chinese tourists will definitely visit the country in satisfactory numbers in the future. Nevertheless, the on-going Maoist violence has acted as a great deterrent to attracting Chinese tourists. And, the sporadic attacks on or harassment of tourists visiting the country by Maoist rebels may give a negative message to the world at large.

Likewise, the export sector is not looking up nowadays. Once Nepalese carpets, pashmina products, handicrafts and the like used to find a good berth in the international market. Now, the exports of these products have shrunk drastically, thus adversely affecting the balance of trade of the country.
The private sector that has come to the fore since the adoption of liberalisation policy in the mid-1980s has left a lot to be desired. Although over 250 joint ventures are operating in the country, their contributions to the economy are not appreciably felt. It is even a layman's notion that the operation of development projects should have brought about positive changes in the lives of the people. But it is an irony that remote and under-developed parts of the country like Humla and Jumla are now reeling under the menace of famine. It is sad to note that development projects have not been able to touch such parts. The concentration of such projects in urban centres cannot, under any circumstances, better the development scenario of the country. What is required, therefore, is that development should well up from grass-roots level.

Government-owned enterprises are a burden to the government itself. Their condition is going downhill day by day to the detriment of the economy. So, their contributions to the economy are at their worst. Rampant corruption, financial irregularities, political interference, weak management and such other factors have made a big dent in their performance. That the government has decided to liquidate four public enterprises that were closed down last year is significative of the plight of the public enterprises. Worse still, the privatisation of loss-bearing public enterprises has not been able to pick up momentum.

Talking of the financial sector, the government-owned financial behemoths-Nepal Bank Limited and Rastriya Banijya Bank-are huge loss-bearers. It is, however, gratifying to note that reform measures have already been set in motion to bring these banks on track. The conditions of Agricultural Development Bank, Nepal Industrial Development Corporation and Regional Rural Development Banks are no more satisfactory. Therefore, these entities need to be reformed so as to save them from disintegration.

The law and order situation holds the key to attracting foreign investors. The violence that has been ratcheted up by the Maoist insurgents for the last seven years has militated against creating a good law and order situation. Once proposed to be declared as a zone of peace, the country is unfortunately in the grip of violence and terror. The Maoist attacks on some business installations in recent times have further exacerbated the business sector, which is already going through a bad patch.

So, the economy of the country is now in tatters. Various ramifications of economic development -education, health care, drinking water, sanitation, transportation and communication-are in a dilapidated condition. What is exigently required is, therefore, a strong mechanism to revive the economic sector. It may be hopefully noted that the Chand government has announced certain policy measures such as the Economic Reform Programme, Health Policy and Science and Technology Policy.

The present government is more apolitical and the incumbent ministers are technocrats, business entrepreneurs, health experts and social workers. The ministers used to cut up the government in the past for its inept policies and decisions. So, it can be arguably conjectured that they know about how to formulate pro-public social policies and programmes. As such, strong reform measures are expected of the present government to revive the sagging economy of the country. The recent decision of the government to form a high-level committee on economic diplomacy may be taken as a positive sign.

Educational Reforms: Positive Gesture

By Mohan K.C.

IT IS not even a week education reform package was announced. The 29-point decision of the government regarding the reforms in the educational sector was made public by the Minister for Education and Sports Devi Prasad Ojha, at a press conference on Friday last. Now Sanskrit will be optional in schools and includes special facilities for the oppressed and backward communities and the Dalits.

The reform package has been announced coincidentally on the eve of the call for the indefinite closure of the educational institutions across the Kathmandu Valley. But, Minister Ojha refuted the argument that the decision was made in view of the call for stalling all educational activities in schools and colleges. In fact playing with the educational activities cannot in any way be called fair. But that is exactly what has happened. Fearing repercussions, the private schools and colleges has opted to close for this week at least. This has put the very education of students at stake. It will be a great cost that we will be paying. The so called move to close down such institutions by the student wing of the Maoists will eventually affect the very development of the country.

The bomb blasts at various educational institutes in the valley led to millions of rupees in damage leave aside the damages on schools and other institutes in various parts of the country. Nepal's thrust to make education as the bulwark of development has suffered a severe jolt at the moment. In fact, it is education that grooms the students imparting them the skill required to take the country forward on its path of prosperity. This is all the more reason that recourse taken by forcing the closure of schools and colleges will do more harm than good in the long run.

Those who have called for the closures must realise that the country is already passing through a bad phase and it is time for them not to come up with such unnecessary programmes. It is the people who lose in the end when their children have to stay back at home instead of attending their classes.
The education reform package of the government incorporates many features which are to develop the educational sector and make access to education for all. Some of the demands that were made by the closure call have been addressed. Herein, it may be worthwhile mentioning that from now on fees for the privately run schools will be fixed after classifying the schools. This is an important announcement and must be taken note of by all.

It must, however, be realised that the closure of the educational institutions will not result in solutions. The demands made should be justified. Making demands which cannot be met is something that must be realised. Cash strapped that the country is at the moment, a compromise solution ought to be reached. It is negotiations and talks that solutions can be found. It is said that there is no problem to which solution cannot be found. The only thing is that sitting at the table can bring in results.
Violence and destruction alone cannot lead to the development of the educational sector. With this closure, the whole academic calendar is going to be affected. The students are bound to suffer the most. Moreover, the parents of school-going children are now worried as to their education. The 'indefinite' in the closure call is certain to alarm everyone.

Whatever is done must be in the overall interest of the people and the country. But there is a different and devastating scenario now. How can anything be achieved by forcing the schools and colleges to be closed? In fact, there is no gain but just the satisfaction among those who have called for the closure that their call has been a success. They must see that reforms is not an overnight achievement. Much deliberations and exchange of ideas go into formulating them. So talking the problem to find a solution is more fruitful than by just making a call for such closures.

It may be remembered that the bandh call for five days during S.L.C. examinations-though later taken back at the last moment -caused inconveniences not only to the students taking the examinations but the people in general. It surely is a bewildering scene. It is the whims and fancies among a minor section of the students that has led to such a situation.

Calls for discussing the problem has been made by the school associations but there has been no response in particular. The only question that now arises is how long will such a situation of uncertainty continue. The government on its part is liberal and does not want to see the stalling of educational activities. Those who have grievances must come forward and find means and ways to create a healthy educational environment. The government is ready to listen and discuss to resolve any problem that may be plaguing the educational scenario.

Banking On Clean Politicians

By Ambar Mainali

HE lives in a rented flat. Scarcity is his closest friend. As all sources of income have been plugged, he is facing the problem of keeping his body and soul together. There were times when people used to frequent his flat almost everyday. All of those visiting him had their own interests. Some wanted a job and others wanted to have a telephone installed at their residence. These days the number of people wanting to meet him has decreased amazingly. He is no more a Minister. And people are no more interested in him. This is the story of most of the honest politicians whose image tarnished in the past twelve years not because of their ill doings but because of the ill doings of their fellow politicians.
The past twelve years of democracy witnessed many vicissitudes and politicians of all shades. Well nobody would dare to undermine the democratic commitments of these politicians who devoted their entire life for the sake of democracy. This they did it well. But what they failed to inculcate in themselves is democratic culture. Democratic culture is something, which is almost unheard of in many political parties. The leaders are always acting on their own without consulting their peers. Politicians failed to internalize the democratic values in their daily lives. As they happened to be the role models in the society, their followers too became no more than sycophants who could only support their leaders' arguments and could never oppose them.

Well the opportune moment of propagating democratic values and generating democratic awareness among the general masses was lost in the mist of corruption, trading of false charges and what not. Politicians started working extra hours taking up the roles of mediators and brokers. While doing all this they buried their democratic values under the carpet and started running strictly for money. Words like democracy, right to expression and self-respect were confined to rhetoric. But we should not forget that the country still has those leaders who managed to keep themselves aloof from all forms of aberrations and perversions. The one referred to in the beginning of this write up is a real role model who despite being appointed as Minister never went for kickbacks. Nobody in the Ministry was happy with the way he worked. The unhappiness was there because they could not fill their pockets by signing illegal contracts.

The reward of the honesty shown by this politician and many others like him will only be recognized when their deeds are emulated by others. The man whose identity is like an open book has donated his house in to the Nepali Congress party office. Even when he was Minister he never bossed around and blackmailed people. He always preserved his identity as a clean politician. There are a lot of others who have remained clean. Today they are no more in the parliament and thus have no earning sources. Still they are going strong. This is because the people are with them. Unless the country respects politicians who are honest and committed to their ideals not only in their words but deeds also we cannot expect things to change for the better.

The point that this writer is trying to drive home is that all politicians should not be judged with the same yardstick. We should always remember people like Biswewor and Mahatma Gandhi who sacrificed everything for the good of their people. The time has come for all of us to clear the mess. We should not make the mistake of trusting the corrupt politicians but we should always stand in support of those who have sacrificed their career for the country and the people.