View Point (Spotlight Weekly)

Nepali expats seek best of both worlds

By Dhruba Adhikary

KATHMANDU - Initially, skeptics both within and outside of Nepal viewed last week's jamboree of expatriates as an imitation of similar - and periodic - shows in India. But the organizers of what was billed as the first conference of Non-Resident Nepalis (NRNs) disagreed, and claimed that theirs was a genuine effort aimed at "connecting Nepalis for prosperous Nepal".

They attached considerable significance to King Gyanendra's presence at the inauguration of the forum on October 11, where over 200 delegates from 25 countries spent four days discussing feasible projects for investments by NRNs and persons of Nepali origin (PNOs).

The conference received exceptionally good coverage in the media, primarily because of timing; it was held immediately after the two-week-long vacation for the Dashain, Nepal's biggest festival, a time when newspapers do not find many events worth covering. Participation by film actress Manisha Koirala, a big name in the entertainment industry in neighboring India, also helped the organizers boost publicity for the conference. She was one of the eight persons to be felicitated by the monarch.

The idea that Nepalis living abroad should work out a plan to invest some of their savings was first mooted in the United States more than a decade ago. But actual initiatives to give concrete shape to this proposition were taken by Nepalis living in Russia and its neighboring areas. Through the Internet, they were able to discover the Nepali diaspora and quickly create a network. Eventually a proposal was submitted to authorities as well as to the business community in Nepal.

The response was swift and positive from both the Ministry of Foreign Affairs and the Federation of Nepali Chamber of Commerce and Industry (FNCCI).

"Every Nepali living abroad is willing to take part in our country's social and economic transformation," said Upendra Mahato, an engineering student in the former Soviet Union, who led the expatriate community in the meeting. Cyprus, China and the United Kingdom are some of the countries where Mahato owns business establishments.

By virtue of his status as the Nepal government's honorary consul general for the Republic of Belarus, Mahato has also been successful in making profitable investments in some of the former Soviet republics. In Nepal, he already owns majority shares in a television channel and a private hospital located in Kathmandu.

Mahato and some of his partners intend to augment the flow of investments to their motherland "provided the state reciprocates with some essential legal provisions".

Legal provisions the Nepali expatriates would like to see mainly focus on their demand to recognize themselves as NRNs and PNOs. Their suggestion is that persons holding Nepali passports and living abroad for more than 182 days should be accepted as NRN, and those possessing foreign passports/citizenship certificates and are within three generations be considered PNOs. Other expected incentives in lieu of a pledge to "lobby to promote Nepal's interests abroad" include hassle-free repatriation of profits and dividends in foreign exchange, tax holidays, protection of investments in the same manner as applicable to foreign nationals, dual citizenship/passports, preferential visa facilities and the right to own property in Nepal.

Hydropower, tourism and information technology are some of the identified areas where NRNs/PNOs could come forward as investors. Nepal is known for its water resources, but less than 1 percent of its estimated hydro potential of 83,000 megawatts has been harnessed thus far.

"There are unlimited opportunities to work around water," said development economist Mohan Man Sainju, listing areas such as electricity generation, the running of irrigation canals and the installation of plants to produce bottled water. He also said the export of electricity to neighboring countries could greatly help to balance the trade with India, from where the bulk of imports are made.

Damodar Prasad Gautam, a former ambassador to the US, is among those who agree with economist Sainju. "Together with greenbacks, our priority should be to bring in skills and expertise earned overseas," said Gautam. In his opinion, expatriate Nepalis deserve kudos for their spontaneous interest to invest in the country they were born. Hence, the government response in the form of a commitment to enact necessary laws within four months is being generally welcomed.

"The Kathmandu conference should be considered a pioneer move to pave way for gradual transformation of Nepal's economy to one which will depend on 'trade not aid'," said Anthony Wieler, acting president of the Britain-Nepal Chamber of Commerce, who traveled from London to attend the meeting.

Wieler's suggestions include acceptance of Nepal's geographical location, between India and China, as an "advantage" in the context of access to markets in the world's two most populous countries. Land-locked status could be changed to land-linked one, he implied.

As can be expected of such gatherings, the maiden convention of expatriate Nepalis could not escape criticisms on matters ranging from inadequate participation, to ill-timed discussions and impractical conclusions . Similarly, the organizers did not have any convincing explanations as to why only 1.2 million overseas dwellers were allowed to be represented when the estimated number of Nepalis living outside the kingdom is 6.2 million. One film actress and a male singer could not possibly be assumed to have represented 5 million Nepalis residing/working in India. Therefore, the industrial and entrepreneurial part of the diaspora was conspicuous by its absence.

Nepalis working as unskilled and semi-skilled laborers in the Gulf, Japan, Korea, Malaysia and Hong Kong too were not properly represented, although it is their remittances which have kept the country's faltering economy afloat. In fact, money transfers from American Nepalis are, claim newspaper reports, less the sums of blue-collar workers sent home last year, $1 billion. "It is sad and surprising that this important mass was rather forgotten," wrote Som Pudasaini, himself a delegate from the US, in a local newspaper.

Gurkhas, known for their professional soldiering, too, were not included among the participants. Likewise, conference resolutions did refer neither to Bhutanese refugees (who are also PNOs) nor to the ongoing Maoist insurgency. Victims of violent insurgency also could not attract their attention. "Overseas Nepalis are guided by self-interest than by altruism or duty towards [the] motherland," is how a reader of Nepali Times newspaper reacted, alluding to their demands for dual citizenship and fee-free visas. Journalists at the valedictory press conference raised questions regarding allegations that some of the NRNs are involved in money laundering and tax evasion. Potential investors rejected these charges, assuring the public that transactions would be made only through banking channels.

Even if opportunities for shady deals and transactions are ruled out, conceded government officials associated with the conference, prospects of substantive investments by NRNs / PNOs are not very bright. Firstly, NRNs are still a small community with only few persons in a position to put any substantial money into business enterprises. Secondly, there is no peace and security in the country which is a must for any meaningful industrial/business activities in Nepal. Thirdly, expatriates who only care about their own interests are unlikely to allocate funds for generating economic activities in the country they pretend they are emotionally attached to.

The argument that they should be treated as Nepalis, but their capital money must be protected like foreigners' investments, is self-contradictory. One newspaper reader began his comment with this proverb: All that glitters is not gold. "Although most NRNs are hones, law-abiding people, it would be wise to check their records," said the correspondent.

Demand for dual citizenship for PNOs has been a controversial agenda right from the beginning. "This is not feasible under the existing constitution," said constitutional lawyer Badri Bahadur Karki, who once served as the government's chief legal advisor. "And how can a citizen of one country be simultaneously loyal to another country?" he wondered.

Similarly, Gandhi Pandit, a lawyer with expert knowledge on immigration issues, does not find any plausible reason why the NRN community is demanding for a separate law to deal with them. Existing laws offer ample opportunities to both NRNs and PNOs. Pandit expressed surprise at the way the finance minister in King Gyanendra's nominated cabinet gave an undertaking to enact a new set of laws within four months. How can laws be drawn up when the parliament is not in session? The parliament elected in 1999 for a five-year term was prematurely dissolved in May 2002. No dates have been set yet for fresh elections.

A widely-held perception in the Nepali intelligentsia is that overseas NRNs and PNOs are a community looking for the best facilities from home and at the work place. Some of the expatriates have tended to impart false and faulty impressions that without their demonstrations in the streets of Washington and New York, democracy would not have been restored to Nepal in early 1990s, an opinion some might say is a grossly exaggerated estimate of their strength and ability to influence events from the other side of the world.

One of the important lessons learnt during the conference appears to be the anomalies regarding who is and who is not a Nepali (particularly in relation to India which is separated by a 1,800 kilometer porous border). Such aberrations need to be resolved through the appropriate legal measures. Analysts cite the case of actress Manisha Koirala to prove their point. Amid media hype, she participated in the conference as a foreigner, as a woman who is preparing to portray former Indian prime minister, the late Indira Gandhi, in a Hindi movie. The next day, Koirala appeared at a press meet where she talked a lot about Nepal's internal politics, praising the king and criticizing the parties who are opposing his absolute rule. Analysts ask, how long can such inconsistencies go on unnoticed?

"The government and FNCCI should transact with them [NRNs and PNOs] on the basis of rationalism, not nationalism," columnist C K Lal said in his recent writeup.