Sickness Of Public Enterprise
Causes And Cures

By Khageswor Aryal

PUBLIC Enterprise (PE) became quite popular in 20th century in the developing countries. It has been considered as one of the best effective economic tools for economic development and social justice in the countries.

History

The history of Nepalese public enterprise began with the establishment of Nepal Bank Limited in 1994 B.S. But it was considered as a Public Enterprise only when the government purchased its 51 per cent shares in 2010 B.S.

Government ownership, operational autonomy, legal entity, government control, public responsibility, business behaviour are the key factors of a government enterprise.

These days are in crises of Public Enterprises. It will be a good news to hear that Public Enterprise is in profit. However, the most of PEs are reportedly suffering from economic crises and bearing loss. Some of them have already turned into liquidation. Private companies with small investment in comparison with the public corporations are earning profit and are in the state of sound economic condition. They are giving bonus to their staffs and paying tax to the government. But public corporation with huge investment and using monopoly and support of government are always bearing loss. It has become a mysterious subject.

There are so many criteria of measuring corporation efficiency. The main criteria are profit making, productivity, contribution to the public revenue, employment generation, cost of production, avoidance of wastage, achievement of objectives of its establishment, etc. But government is measuring the corporation's efficiency only on the basis of profit making criteria. It means the public enterprise should invest only in the profitable area. In the non-profitable sector the government should invest and provide services to the people.

It seems the government is not clear about the functions and demarcation between corporation and government department. Some of our ministers say that corporations are white elephants and burden to the country on the one hand while on the other they themselves involve in the corporation's irregularities.

The government also puts burden of new project on the shoulder of the corporation to get commission without its need and interest and some are accepted without identifying local need. The government should make legal framework and create sound environment for growth of public enterprises and industries. It should give necessary direction and guideline to the corporations. But in practice they are not accepting these factors. They don't hesitate to interfere in operational matters like staff promotion, recruitment, training, nomination, transferring, etc. An executive chief appointed by the minister always obeys the order.

Board of Directors is a high level decision making body just under the respective ministry. Almost all top-level decisions are made by the Board. Boards capacity, vision and decision play vital role in the promotion of a corporation. But unfortunately boards are formed on the basis of their role and affiliation with the ruling party rather than judging their professionalism and expertism. This is one of the factors behind decline the organisational growth. Thus, our PEs have become recruitment centre for political workers to make them facilitated.

Executive Chief is nominated on the same way as the board of directors and he/she maintains link within the organisation. Chiefs of account, store, procurement etc. are changed and everything pass through these loophole. Even higher level officials should praise and make those focal point staff happy in genuine work. In this way irregularities take place in PEs.

After the restoration of democracy in 1990, many staff tried to affiliate to political persons. They didn't pay the full attention towards their duties and responsibilities and could not devote their efforts to achieve institution's goal. Commission and corruption became rampant in almost all . Most of the staffs not found in institutional discipline and few who do not have link with upper body and who had no strong source remain honest and obedient. No body listened to their voices. This trend is still continuing in many of the PEs.

Some of the corporations do not have to compete with other organisations. Such monopoly led them to be in decline condition. Private sector organisations have sound and efficient management. They are able to provide best services by utilising limited resources to the customers but on the contrary the government corporations are failing to show their performance in providing service.

So many committees have been formed to find out causes behind the fall in PEs and their cures. They submitted the reports to the government but implementation has not yet been initiated. Dr. Shanker Sharma's "Corporation Reform Suggestion Committee, 2057" remarked in his report that an expert committee should be formed to fix the required criteria and recommend executive head for corporation. The report highlighted that it should be on the basis of expertism and professionalism rather than political affiliation. The present government also announced on corporation reform in its " Economic Reform Programme " and stated to audit the account in the end of the same fiscal year.
If we cannot improve PEs they should be privatised or take into liquidation. It is said that privatisation has been influenced by the international agencies and western countries. It has different forms such as Joint Ownership, Lease, Management Contract and Divesture. Divesture / ownership transfering and Management Contract type of privatisation is being practiced since the eighth five year plan in Nepal. Some privatised enterprises like Hari Siddhi Brick Factory, Bansbari Leather Shoe Factory are falling down instead of improving.

In the case of interest of international group, we should not accept any loans and aids without identifying our need. Before accepting it we have to watch its terms and conditions sincerely. Acceptance of aids is not long lasting way out to develop the country. It is primary cure.

Clear Vision

National policy, concept and vision of the government should be clear in its objective and functional area. Corporations are national property and effective tool for economic development. It provides service to all sector that private sector can't do. We should, therefore, protect and preserve PEs for integrated development of the country and people as well. Creation of sound working environment and honest and hard working employers can be helpful in promoting PEs. For this the government should come up with concrete programmes. Certainly, collective effort and strong commitment, dedication, sincerity and honesty of every individual concerned in this regard, will improve the present situation of the PEs.

Urban Blights

By P. Gopakumar

UNBRIDLED urbanisation exacerbated by myopic planning has wreaked havoc on the physical form of the cities. It is time to recognise urban centers as part of the national wealth. Half the world's population is already living in cities and with this number growing by almost thousands each month, sustainable development is not feasible without sustainable urbanisation. The brown agenda must find place alongside the green agenda and the poor must be seen as an asset.

Chaotic

The term urban planning covers a lot of area - from economic and political issues involving the city's growth to those affecting the surrounding region, and the rest of the state. These subjects are very important and Nepal has, over the past few decades, produced policies and plans that sought to address them. When they have failed quite comprehensively, is in the area more specifically described as 'urban design' - that crucial zone lies somewhere between large-scale city planning, and individual buildings. Urban design is more specific and three-dimensional than something as nebulous as planning. It is concerned with city as a physical plant, as a piece of hardware. It is the city we experience everyday, going to work, returning from school, walking to the bazaar. And as physical plants, our towns and cities are rapidly growing more and more chaotic and ugly. There is very little concern or responsibility for their visual aspects. It seems as if anyone can build anything anywhere.
The earlier municipalities approach in dealing with urban design was very simple but highly effective. For each street they had a set of bylaws that specified the building envelope you could construct, with explicit rules controlling setbacks, particularly along the street façade. This was a simple and direct method of insuring coherent and understandable streets, which form a unified whole. That is why individual building along Bhaktapur Durbar Square combine to create on sweeping and unforgettable gesture. In fact, Bhaktapur is one of the most important images of the country for its excellence in carpentry and masonry. Despite the low level of maintenance, the place is still pleasurable to see.
The brown agenda is built up environment. The reality is that housing shelter, infrastructure such as water and sanitation are not in place. The United Nation's habitat was created. Of course, forest and natural resources have to be preserved. But people have to have place to sleep, a toilet to use. So the brown agenda is for developing countries. Climate change is undoubtedly very important but for people what is important today is where they sleep, where they get other basic amenities. Housing is a resource intensive sector. The real challenge is financing the investment. The concept of sustainable development is an all-encompassing one. The green agenda focuses on the ways we live but brown agenda is about how we live. Settlement patterns determine this. Urbanisation is a fact. About 50% of the people live in cities. In Asia, the figure is about 36 per cent. It is not easy to reverse the process. What we should seek is balanced territorial development.

The need of the hour is realisation among the policy makers that urbanisation comes with economic development. If it happens at a manageable pace, then that will be a good thing. Cities are centers of economy and culture. Europe is more than 80 per cent urban. So is the US and Japan, Latin America, 75 per cent urban is a good example of what happens when urbanisation is rapid. About 70 per cent in all cities live in squatter settlements. There is extreme poverty and inequality in several cities where there are squatter settlements; many of which have no access to municipal facilities.

For housing, the poor have to have money. They pay for housing and water, sometimes more than the rich.

For banks, then there is potential for investment. The millennium, development goal of UN-Habitat is 'cities without slums'. For this they need to prevent the flow from villages. For which pro-active strategy is required - rural development. Then the second is an adaptive strategy, positive urban-rural linkages. People have to move out once agricultural production rises. If agriculture stagnates, there is premature urbanisation. One is a natural process, the other is not. People move to cities not because of better off but because they expect to be better off. Now there are serious problems with security. If there was peace, the rate of urbanisation will be lower.

Real Value

Our apathy and myopic indifference to our cities is beyond understanding. We seem to be quite oblivious to their real value. Our towns and cities are truly priceless part of our national wealth and that is why their terrible state is going to so decisively affect this nation's future.

Simple Living, High Thinking

By PNK

SAINTS, philosophers, the wise and the learned and so on have given us much knowledge. Their words have been guiding us on the right path. The teaching of great men and women are there with us. To follow them totally is not quite as easy as it seems. The practical difficulties are numerous. Very few, in real sense, have been able to achieve the goal by adhering to the best principles of human life management.

This, however, does not mean that everything's lost for good. Hope always exists. And it's hope that makes us move forward in life. Without it there would be nothing to savour. In bliss or suffering the human beings have a great knack for taking life as it comes along. This is what is often referred to as the saving grace.

Listening to everyone and trying to follow all cannot but lead to confusion. The choice has to be made somewhere. An understanding of the teachings that can make life better has to be there. Blind following cannot be appreciated. It's like the sacrifices that are made during Dashain. How can anyone justify it? The only thing is that one can expect a wonderful meal (for non-vegetarians) later on. Sacrifices (animal or bird) in the name of appeasing a deity seems more than ridiculous. But it's the tradition howsoever ridiculous it may be.

Among the many wise words that have been encountered over the years, simple living, high thinking has stuck on. It was the motto that guided the students some 30/40 years back and has its significance even today. However, today it's almost lost on not only the people in general but also the students.

'Simple living' maybe a way of life for most of the Nepalese. Poverty is a dominating factor that makes life unbearable and that can be called simple. Herein, one must blame fate for all that takes place. Maybe it's being a little bit superstitious. It can't be helped. Weakness invites the need for support and it's quite often that we seek help from the world of superstitions. Educated or uneducated superstitions have a hold on the human kind. That's not being simple. It's making your life move with honesty, without any inhibitions, giving thought to kindness and courtesy. It's difficult but we all must strive for it. Whatever progress we make in the direction will make life easier for all that is one person's effort will be for the benefit of all.

When it comes to 'high thinking', it's a tough proposition. Not everyone has the capacity for thinking high. It's not aiming to become a minister, top bureaucrat, administrator or something like that but upholding the very essence of humanity. The poets, philosophers and so on have given us through their works what they have seen in life and the society. They give us points to ponder over. It's a person's ability to take the necessary and apply it to life that matters. Reading texts alone does not make a great person. Even Lord Buddha wouldn't have become enlightened had he confined himself to studying what the others had done. He went out in search for truth. And then he gave the humanity of what he could see to alleviate human misery and suffering. His life is an example of 'simple living, high thinking'. Of course, we ordinary people cannot totally emulate him. Yet, attempts can be made and some achievement can be made.

It's not being in power or being rich that makes a person great. Lust for power and money makes one corrupt. It can never make one's life peaceful. The richer you are or the greater power is vested in you, life becomes miserable despite all the splendour that surrounds you. Big sleek limousines, palatial mansions, the glitter of gold, etc. do not in themselves have the power to increase your 'high thinking' capacity. They could be hindrances.

The present day experiences just point to the fact that 'high living, mediocre thinking' is the norm and not an exception.