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April, 2004 |
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Book Review |
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Conflict & Economy
At
a time when different guesses are being circulated around as the cost of
the ongoing conflict in Nepal, Nepal Economic Association (NEA) has
brought out a book with some authoritative insight into the issue. The book “Nepal’s
Conflict Economy: Cost, Consequences and Alternatives” in fact
presents the proceedings of a workshop on the topic organised by NEA. As
such it contains the working paper by Professor Bishwambher Pyakuryal
and comments on the paper by eminent economists and business captains of
the country such as former Finance Minister Dr. Badri Prasad Shrestha,
Professor Madan K Dahal, Vice Chairman of National Planning Commission
Dr. Shanker Sharma and President of FNCCI Binod Bahadur Shrestha. Though
the book does not provide any figure for the cost of the conflict on the
economy, as all the commentators and other participants in the workshop
were unanimous with the paper presenter that no such effort would be
able to give the actual picture, it has provided as the first systematic
approach to look into the issue. Prof. Pyakuryal’s
findings, conclusions and suggestions are very interesting. For example,
quoting the Human Development Report of the UNDP, he has shown that the
annual defense expenditure in Nepal has been growing disproportionately
ever since 1985 - higher than in India, Sri Lanka, Pakistan or
Bangladesh. He says, expansionary economic policies are not going to be
desirable for Nepal at this juncture as Nepal’s capacity to spend is
very low right now. However, he has also recommended to provide special
stimulus package not exceeding one percent of the GDP so that the
consumer demand would increase, thereby increasing the demand for labour
and thus creating employment. In one recommendation, he
suggests to have partnership with the rebels (as in Sri Lanka) for some
economic interventions in the trouble areas, and with the private sector
for managing ‘hot-spots’, i.e. areas where trouble may be brewing.
He has also suggested to control the military spending and utilise the
saving so generated to provide additional services to the people in
conflict zones as increased military spending accompanied by reduced
social services would further escalate the conflict. Equally interesting insights have been suggested from the participants of the floor discussion in the workshop. |
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