Economic Diplomacy
Missions Abroad Should Act

By Laxmi Prasad Poudyal

ECONOMIC diplomacy is essential to manage the major components of economic development such as promotion of international trade, foreign employment, foreign directive investment, tourism sector, and technology import. Our diplomatic agencies often concentrate more on political matter, than on economic issues. These missions need to be guided to carry out more of economic diplomacy.

Trade

International trade involves at least two countries. Multilateral and bi-lateral trade is becoming important day by day due to the growing needs. In this sense, foreign trade is an essential instrument as we have open and liberal trade policy. But unfortunately for us, we are facing the problem of trade deficit, due to imbalance between import and export. It clearly shows that our volume of production and economic activities are very low.

International trade is often directly affected by the policies followed by international financial and other organizations Different systems like ASYCUDA system, transactional value system (based on harmonised system) are applied in foreign trade.

As we plan to enter into WTO by 2005 A.D., we should set new priorities for our diplomatic missions. We should be actively engaged in gaining more support for export trade and push up the national product and output, diversify foreign trade, and improve the quality of goods and services.

Nowadays, most of the people, have become the common consumers of foreign goods. This clearly indicates growing potential for a rise in export. We should also stress on qualitative output to meet the domestic demands. In the same manner, tourism sector needs to be strengthened through a suitable publicity and management campaigns abroad.

It is apparent that we are facing the problem of unemployment. The Nepalese youths have to work hard for mere livelohood. Because of globalisation, employment opportunities can be found aboard. One of the main sources of foreign currency accumulation is the remittance from foreign employment. A large number of Nepalese youths are now working as labourers in Saudi Arabia, Malaysia, Qatar and other Gulf countries, where they are paid less and made to work hard. Actually, this sector needs to be managed better, especially since our private sector is not strong enough to provide more job opportunities for the jobless Nepalese youths. Economic diplomacy can be used to tap labour market both within and outside the country.

Poverty is the burning issue in all developing countries. We should, therefore, welcome foreign investment. Good governance is a precondition for foreign investment to thrive. The Nepalese government is trying to ensure improved conditions for the same. By selecting suitable project, adequate capital can be drawn with an advanced technology for the overall national development. If the political disputes are settled, diplomatic missions can be nighly effective in luring foreign direct investment, which can contribute to meeting the shortage of capital.

International financial and business orgnaisations, donor agencies and donor countries all want to see that happening. Today, we find that foreign investment is concentrated mostly in one area than the other. This situation should be overcome soon.

Development is possible only through mobilisation of capital, technology, education and ideology in a proper manner.

Most of the indigenous technologies we have are with lower productivity and unable to fulfill modern requirements of the nation so, special effort should be made to import advanced technology, in the absence of which, we cannot harness the available natural resources, in an efficient way.

Hope

A variety of problems are in front of us. The people in general are asking for a permanent remedy of these problems. For this, the technocrats, bureaucrats, policy makers, private and public sector, should work together. An integrated practice is essential for a proper co-ordination and co-operation among these components. Conflict management is needed. Political stability with clear vision and planning in the sector of economic diplomacy is very essential. Optimum utilisation of resources and foresightedness to promote the different sectors of development is required.

It is a very good piece of news that the government has recently formed a high level economic diplomacy committee chaired by the Prime Minister at the national level, which has generated hope that it will be instrumental for the overall development of the nation.

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