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Politics on Governor Appointment

-By Prateek Pradhan

Neither the employees of Nepal Rastra Bank nor the prospective candidates for the position of Governor had ever expected such political turmoil over the appointment of the central bank chief. Despite a lot of hue and cry over the appointment of the Governor for over one-year, Nepali Congress could not agree an any single person till the eleventh hour. As a result Prime Minister Krishna Prasad Bhattarai reached into the condition of sacrificing Finance Minister Mahesh Acharya in favour of Dr. Tilak Rawal to head Nepal Rastra Bank.

Dr. Rawal looked very successful in impressing his masters in Nepali Congress ever since he was appointed General Manager of Agricultural Development Bank and later Executive Chairman of Rastriya Banijya Bank. As such, it is reported that both of the septuagenarian leaders of the ruling party were in favor of him for the position of Governor. However, Finance Minister Acharya could not agree on that. It seems that he had a strong feeling that Dr. Rawal was not the proper person to lead the monetary policy of the government.

The intellectuals and economists were demanding for someone capable of formulating effective monetary policy, having good knowledge of macroeconomics and able to lead Nepal Rastra Bank as the chief economic advisor of the government. But, people in the government were, on the contrary, searching for one who could do anything for the ruling party.

The scribe is not trying to argue whether Dr Rawal is capable to hold the position of Governor or not. But what I would like to analyze is the tendency of our politicians. The questions raised through this decision are whether it was right for Prime Minister Bhattarai to sacrifice Acharya for Rawal? And was the impulsive decision on the part of Mahesh Acharya to resign just for one appointment correct?

Here, both the Prime Minister and Finance Minister are criticized for different reasons. Prime Minister Bhattarai is said to have followed the strong recommendation of his close aide Sher Bahadur Deuba, who was, it is said, "helped financially" by Dr. Rawal to sweep elections in Far Western region. Similarly, Acharya has been alleged that he was more interested in promoting his close friend Bimal Koirala as the Finance Secretary and transferring existing Finance Secretary to the position of Governor, rather than taking decision on true moral ground. Moreover, many congressmen and ministers were against Finance Secretary Ram Binod Bhattarai because they were infuriated that he had been promoted only through the orders from the Royal Palace and is not a person committed towards democracy.

Though one group taking stand to maintain the system appreciated the Finance Minister, other group has criticized him for defying the Prime Ministerial system in the multiparty democracy.

Whatsoever may be the reason the worst part about it is the appointment of a political figure in the position of central bank Governor. But, for that matter there were very few capable people who were non-political, experts in the field and capable to run the institution professionally.

Dr. Tilak Rawal’s performance in his tenure will tell a lot as to whether his appointment was justified or not. If he executes his responsibility independently, as a real professional, the big question raised on his appointment will dissolve gradually. However, looking at his background, it is very difficult for him to be non-partisan and non-political. But, he must understand that camouflaging the failures and over exposing the achievement, as he did in Rastriya Banijya Bank, wouldn’t be good here. So far he had been assuming positions that could have impact on a single institution only. But, now, a single decision taken by him will have a broader impact on the economy of the country as a whole. As such, the position of the Governor is a hot seat for Dr. Rawal, which demands patience, courage, independent attitude and real honesty.