The Looming Trap

OVER the decades, Nepal has been receiving more and more foreign aid to finance its development efforts. It is quite clear that Nepal hasn't had any problem in attracting foreign aid, especially since the restoration of democracy in 1990. Decades of foreign aid notwithstanding, it is now however felt widely that the country has not been able to fight poverty to an appreciable degree. Proper utilisation of foreign aid, thus, has become more and more a matter of urgency. Donors to Nepal have in recent years spoken more and more stridently about the need for maximum utilization of foreign aid. The Tenth Five Year Plan (2059-2063) places a lot of emphasis on reducing the poverty by maximising the utilisation of foreign loans and grants. The target is to achieve a reduction in poverty prevalence to 30 per cent, attaining a 6.2 per cent economic growth. Though achievement of such targets hinge on very many factors, including that related to good governance, it is incontestable that maximum utilisation of foreign aid is a prominent concern.

This assumes all the more significance when viewed against the fact that the country is practically bent with a heavy load of foreign loan. Speakers at a function the other day sounded dire warnings that the country could fall into a debt trap as witnessed by a number of developing countries currently. Their concern stems from the fact that as most of the loans received by Nepal from various multilateral agencies over the past decades are going to mature in the next couple of years, the country is in for a frightening payback scenario where its resources will simply not match the need for paying off the debts maturing one by one. Thus knowledgeable economists' suggestion that the government take sound measures before the country falls into a hopeless debt trap, must be taken seriously. While the government's intention to put in place expenditure tracking for effective utilisation of resources, including foreign aid, is welcome, it has to at the same time begin addressing the issue of paying back debts. Nepal's reputation among international creditors as one of the good performers in servicing the debt may not be of much help when it's time to pay back the long-term debts. There have been examples of many developing countries succeeding in securing write-offs. Nepal should also lobby hard internationally in the coming time to obtain debt write-offs at least partially so that Nepalese are unburdened of this heavy load to some extent.

More Dasain Bazaars, Please!

THE Dasain-Tihar Bazaar Co-ordination Committee meet, as per a news item carried by this daily the other day, decided that businessmen selling various goods at concessional prices through public corporations in the coming Dasain and Tihar festivals should compulsorily put up price lists and banners at their respective stalls. Bada Dasain and Tihar are the two biggest festivals of the Nepalese. In fact, if we are to go by the way and manner in which these two festivals are celebrated by the Nepalese, what can be safely said here is that they keenly look forward to the advent of these two festivals. One reason for this could be the cultural and religious significance associated with these two fests. While Bada Dasain is marked to commemorate the victory of the forces of Good over that of Evil, Tihar is celebrated to not only pay homage to the Goddess of Wealth, but also to celebrate the renewal of the inviolable and sacred bonds existing between brothers and sisters. As such, the Nepalese, whatever their profession, position or status in society, spare no efforts and, of course, money, to celebrate these two festivals. Interestingly enough, Bada Dasain and Tihar, over these last decades, have been equated with extravagant spending, especially on delectable foods and new clothes, by Nepalese from all walks of life.

It is herein that the need to easily avail foodstuffs and clothes that are affordable and qualitative to all the Nepalese arises. The more so to the people living in the rural areas as they not only comprise the vast majority of the Nepalese celebrating these two festivals but, needless to point out, are also less fortunate than their urban brethren as far as their purchasing power is concerned. Notwithstanding the rural people's low purchasing power, they are no less than their urban brethren when it comes to splurging money on delectable foods and new clothes during Bada Dasain and Tihar. Fortunately, this splurging tendency as well as the craving for delectable foods and new clothes are well known to both the government and the businessmen-hence, the opening of special Dasain and Tihar bazaars by the government throughout the nation so that all Nepalese from all walks of life have easy access to quality foodstuffs and clothes at reasonable and affordable prices. Considering the two festivals' importance to the Nepalese, the concerned authorities should open more such bazaars throughout the nation.