Management  Development Scenario Lack Vision, Priorities

-By Krishna Shrestha

Nepal not only suffers from lack of vision on global management concept but also lacks clear vision on our goals, and priorities. This is what the Management Development Scenario 1999 has pointed about the management situation in the country.

The Management Development Scenario – 1999 prepared by Purushottam Ghimire and Bishnu Raj Adhikary for Management Association of Nepal (MAN). Ghimire and Adhikary are life members of MAN. It is the tenth endeavour of the association towards evaluating the management situation of the country.

The report says management development in the country is at the crossroads, but it was not positive during the year 1999, and the management situation in the last year has left many things to be desired.

The report has tried to analyse the role of management in modern society and global business environment. It has also tried to reveal several shifts in concepts and practice of management that have emerged in the world. At the same time the report has tried to evaluate the global trend in management and Nepal's position. One pertinent question the report has raised is, Will Nepal be able to catch up with the world?

“There are no rooms for satisfaction except in the private sector,” says Bishnu Raj Adhikary, one of the writers and Principal of the Kathmandu College of Management. According to him, the government side is the weakest in management.

“The management of the government sector is mostly driven by political interest. É É The theme of enhancing the public sector is concentrated in the speech of the politicians, but not in practice. In reality the government does not have clear plans or programmes to uplift the public sector. There is no vision guiding the government in this regard,” says the Management Development Scenario 1999.

In the last year’s Management Development Scenario, it was stated that management in the government sector was dominated by political events and uncertainties. Heavy political interference in management, corruption, political instability, over politicisation, inconsistent policy, indiscipline and abuse of authority by the political executive were the major problems.

The latest report has found that the situation has not changed.

The report has raised the issues of lack of accountability and co-ordination in all the sector, lack of human resource management, government’s ineffectiveness in controlling the price hike, security and human rights.

“The main problems and weaknesses in the government sector was the gap between policy and implementation, lack of co-ordination among government ministries and within ministries, limited financial resources, use of poor technology and lack of human resources etc.,” says the 1999 report.

“We have good policies but what is lacking is their implementation. In the last year’s budget, lots of good programmes were announced but they did not materialise. The government administrative machinery is ineffective,” says Purushottam Ghimire, co-author of the report. Ghimire had prepared last year’s Management Development Scenario too.

The most pitiable aspect in the government sector is decision-making process as most decisions are made by the political authority rather than administrative procedures. The MDS 1999 says: Most administrative decisions are made in an informal way and bureaucrats do whatever the politician want. There was high political interference in management. This is a dangerous trend, it says. The report is critical of the public enterprises too. In Nepal, public enterprises were set up for the economic development of the country. But, today, many public enterprises have turned into the drainage in government exchequer.

“Most of the public enterprises are suffering from political interference and mismanagement. The chief executive and board of directors of these PE’s are appointed on the basis of political connection rather than their professional expertise. In reality, some of the chief executive are committed to pay certain amount either to the political party or their appointee, before or after their nomination,” says MDS 1999.

Besides, public enterprises have become a place of recruiting political workers. “None of the public enterprises have a strategic management plan. The reports damns thatÉ no activity, such as reframing, restructuring, revitalising and reviewing organisations were initiated or carried out in 1999.”

“The management development of the private sector was found good as compared to the government and public enterprises,” says MAN member and Kathmandu College of Management Principal Adhikary.

The report says: Private enterprises are more aware and sensitive to changes in business environment than the government enterprises. Though it is informal, they do regular environmental scanning and practice strategic management system.

But private enterprises are not free from problems. The main problem they have been facing is lack of quality manpower. Delay in setting up Export Promotion Zone, and government’s unwillingness in amending labour act and regulation are some of the major problems faced by the private sector.

MDS 1999 has also tried to analyse the management situation in non-governmental organisations (NGOs) and international non-governmental organisations (INGOs). There are thousands of NGOs and INGOs in Nepal working in various sectors. A discussion programme organised in 1998 by Transparency International had disclosed that they were spending about Rs. 50 billion a year. But the management situation of NGOs and INGOs is frustrating.

The MDS 1999 says: In fact, NGO management is based on learning by doing. In most cases their management and operational practices are guided by donor agency and the decision making pattern is mostly a ‘one man show’.

It is rightly stated in MDS 1999 that in the 21st century, we have no choice, either we have to be involved in the changing global environment or remain isolated.

There is a big question now, what should be done to improve the situation?

“First of all, we should upgrade the management education which was deteriorated,” says Principal Adhikary.

Besides, the mentality of the bureaucrats needs to be changed, which is a big challenge. Their duty, responsibility and accountability should be specified. Ministers should also be capable. Interference in the public enterprises should be stopped. Policy support should be provided for the promotion and development of private sector.

Universal Capital & Markets Listed In Stock Market

-By Our Correspondent

Last week saw the listing of 32,570 units of shares of Universal Capital and Markets Ltd (UCML) in the Nepal Stock Exchange Ltd. The additional shares of the UCML were floated to the general public recently.

The trading of shares in terms of value increased by about 50 per cent last week compared to the previous week, it is learnt from Nepal Stock Exchange Ltd.

According to Nepal Stock Exchange Ltd, 73,007 units of shares were traded for Rs. 30,150,453 last week whereas 54,128 units of shares were traded for Rs. 20,204,525 in the previous week.

Shares of the Nepal Bank Ltd., Nepal Arab Bank, Nepal Grindlays Bank, Himalayan Bank, Nepal SBI Bank, Nepal Bangladesh Bank, Everest Bank, Bank of Kathmandu, Everest Insurance, Taragaon Regency Hotel and Neco Insurace were traded in all the transaction days of the week.

The NEPSE index prepared by Nepal Stock Exchange Ltd. showed an increasing trend last week. On the first transaction day of the week, it was 306.79, which rose to 321.25 on the last day of the week.

Considering groupwise index situation, the index of commercial bank group increased by 333.46 to 352.66, which showed a rise in the value of shares. Similarly, the index of the manufacturing and processing group touched to 300.84 from 294.66. That of hotel group to 359.16 from 339.42, trading group to 123.05 from 119.22, insurance and finance group to 258.07 to 253.60, and other group 225.73 to 227.43.

However, no detail information was provided by Nepal Stock Exchange Ltd. last week.

IPR Will Pay Back Ultimately

-By Our Correspondent

If Intellectual Property Rights (IPR) is protected, it will pay the country in various ways, feel concerned experts and offcials.

Ms. Doris Estella Long, Attornery/Advisor in Office of Legislative and International Affairs, US Patent and Trademark Office, speaking at a lecture-discussion on “Protecting Intellectual Rigths and WTO”, said protection of intellectual property right protects the creativity of local talents, help a country from loosing its best talents and the consumers by assuring that the products they buy are genuine. Besides, it encourages foreign investment and the employment of modern technology in the country.

The programme was jointly organised by the American Centre and the Copyright Protection Society of Nepal.

Mentioning four traditional forms of intellectual property namely copyright, patents, trademarks and trade secrets, Ms. Long said all the WTO (Word Trade Organisation) member states are obligated to abide certain provisions of Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).

According to an information provided in the programme, the TRIPS Agreement sets forth minimum standards to be met by members of the WTO for according rights for the protection intellectual property and for the enforcement of those rights. There are separate minimum conditions that all countries must apply with respect to copyright and related rights, trademarks, geographical indications, industrial designs, patents, layout-designs (topographies) of integrated circuits, and trade secrets.

It also establishes standards for the control of anti-competitive practices in contractual licenses. TRIPS also sets out detailed obligations regarding enforcement procedures and includes provisions on cooperation and technical assistance among the signatories.

According to Long, 112 out of 132 members of WTO have signed TRIPS.

ADB's Rs. 20 B Loan Assistance

-By Our Correspondent

Asian Development Bank (ADB) has agreed to provide Nepal a loan and technical assistance of over 300 million US dollar for the ADB/Nepal's country programming mission for the period 2001-2003.

The Bank's mission, during its week long visit to Nepal, focused on confirming the government's commitment to various projects and prioritising ADB Nepal's operational programmes for 2000-2003. The mission also discussed a framework for the Poverty Reduction Partnership Agreement and ADB's new performance based allocation system that would link the level of future lending to Nepal's progress in addressing major country performance issues.

The mission also met with other donors and representatives of various NGOs and private sector organisations.