IT and e-commerce for economic growth

By Rajkumar K.C

KATHMANDU, Oct 18: For the last couple of years, there has been a dramatic progress in the Information Technology (IT) in Nepal. The number of people, who are computer literate, and having access to the Internet and e-mail has increased manifold.

Had other factors such as peace, security and good governance prevailed the pace of IT development would have been faster and more proficient.

Still, the progress being made in the IT sector is astounding in comparison to many other developing and least developed countries (LDCs).

Although it is claimed that nearly 15 per cent out of total population have access to computers only less than ten per cent population is believed to have access to Internet.

But the rising number of computer users and the government's target to provide education on computers and Internet in the high school level in the upcoming Tenth Five Year Plan are positive signals.

According to the Nepal Telecommunications Corporation (NTC), the number of Internet and e-mail users has reached to above 35,000 (excluding the services provided by private companies).

On top of that Nepal is ahead of other South Asian countries in information technology. But Nepal has not been able take optimum benefit despite having a relatively sound telecommunications system.
E- Commerce - a new possibility

The most important opportunity that Nepal has been missing is 'e-commerce' or e -trade. What is e-commerce? Many people in Nepal are still ignorant about it. It is a process of buying and selling goods and services through Internet, e-mail or other electronic devices. E-Commerce comprises of placing orders, providing information about goods and services and their payment and delivery as well.
As a matter of fact e-commerce could be the best tool for a landlocked country like Nepal to reduce dependency upon other countries. Besides, the need for e- commerce is ever rising as Nepal is in the process of getting the membership of the World Trade Organization (WTO).

Therefore, it is high time Nepal identifies areas in which it has a comparative advantage. Nepal has several items in which it can reap more benefits. When it enters the world trade club, it should be able to sell its goods and services to various countries under the WTO framework. In a way, e-commerce is an obligatory tool when a country enters the WTO.

It is also an effective tool for disseminating and acquiring information about goods and services that a trader wants to deal with.

Considering this, the government has already introduced the IT Policy-2000. And the IT Park, which was lagging behind due to political instability and lack of good leadership, is beginning to take a shape. In fact, IT and e-commerce could be a tool for the country's economic development.
Reality

Given the nature of Nepal's exporting items and other factors, e-commerce at the moment may not be a major economic tool for enhancing export trade, but it could be a cost effective means for exploring new avenues in tourism, banking, construction of hydro-power and research.

It seems that the government is not fully aware of how e-commerce works.

Although a few individual have tried to create an atmosphere for e-commerce, organized bodies in private sector such as - the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Nepal Chamber of Commerce (NCC) have failed to give due priority to this sector. The leaderships at both the government and the private sector lack the understanding of promoting IT for trade and economic development.

In a democratic society, the government plays the role of facilitator and it is the private sector that does the trade.

Thus, the government should create an atmosphere for e-trade or e-export by bringing together various factors such as the '5C (Communication capacity, competence, creativity, credibility and cooperation) Rule'. Exclusion of any one of these factors 5C could hinder in accomplishing the goal of enhancing trade through e-commerce.

Apart from this there are other challenges that have to be taken into consideration. Financial, social and cultural factors could also play a dominant role.

Above all, a sustained growth of the economy with more equitable income distribution is not possible without significant and positive change in the mindset of the private sector and effective policy intervention of the government.

Unless the government makes some visible efforts to ginger up export trade and tourism, the revival of the current economy is impossible.

At this difficult juncture, the IT and e-commerce could be a reliable tool for a sustainable economic growth.

Farmers in Chitwan face hardships

RSS

RATNANAGAR, Oct. 17: The farmers in Chitwan district are compelled to go all the way to Hetauda to purchase seeds after the Agricultural Inputs Corporation was split into theAagricultural Inputs Company Limited and the National Seed Company Limited as per a cabinet decision.
The then Agricultural Inputs Corporation had been distributing fertilisers and seeds to farmers in the previous years.

But after the corporation was converted into a the agricultural inputs company, it is authorised to sell only fertilisers.

Like in the previous years, 20-25 farmers from remote areas of the district on an average have been coming to Bharatpur daily to purchase wheat seed at present. But they have to return empty-handed.
Acting manager of the Agricultural Inputs Company Limited Bharatpur, Bharat Regmi, says that the company has requested the Hetauda office for providing wholesale dealership to the company for sale of seeds.

Despite adequate means and resources, transaction at the Agricultural Inputs Company Limited, Bharatpur are at a standstill after the company was not allowed to sell seeds.
The company, which, until nine years back had more than 50 dealers, now has only 20 individual and institutional dealers.

The company's warehouse with a total storage capacity of 3,200 metric tonnes is almost empty at present.

Hybrid potatoes draws farmers

RSS

KOHALPUR: Farmers of Baijapur and Bitauna VDCs have been attracted towards the cultivation of hybrid potatoes.

Potato has been cultivated in a large quantity in Baijapur VDC ward Nos. 5 and 6 and Bitauna VDC ward Nos. 4 and 6 which are regarded as fertile lands for potato cultivation.

About 10 quintals of seedlings of "Kordinun" species of hybrid potatoes were sold off to the farmers of these two VDCs this year as against 3 quintals that were distributed last year, according to Baijapur agriculture sub-centre.

Hybrid potatoes can be grown up to 3 kilo from a single plant within 2 to 3 month of its plantation.