Undoubtedly, Nepal is a " donor-driven beggar" country

-Dr. Fatta Bahadur K.C, T.U

He secured his Doctoral degree from the B.H.U, Varanashi, India on "Privatization" in 1999. Prior to this he obtained his Master's degree in Business Administration and Commerce (Management) from Tribhuvan University in the year 1981.

Finance and Management come under his area of Specialization. However, the subjects he teaches at the moment are Finance, Business Law, Business Management, Business Principles and Office Practices, and Agricultural and Industrial Finance.

Presently he is teaching at Min Bhavan Campus, Kathmandu. His previous job experience include teaching as a Lecturer in Nepal Commerce Campus; as a Lecturer in P.N.Campus, Pokhara; and working as an assistant Administrator in CEDA, T.U.

Dr. Fatta Bahadur K.C originally hails from Palpa district. Dr. K.C has several books to his credit, a few of them include, "Agricultural and Industrial Finance in Nepal"'; Elements of Finance; Business Finance; Principles of Management; Principles of Personal Management; Introduction to Marketing; Principles of Marketing; Introduction to Organizational Behavior and finally Business Policy and Environment. Likewise this scholar has written various research based articles on varied topics that include, "Conflict management in Nepalese Organizations"; Industrial Relations Management"'; and "Role of Private Entrepreneurs in Industrialization of Nepal".

Dr. K.C has done extensive research on the "Study on Organization Development in Nepalese Public Enterprises"'; "People's Participation in Mini Micro Hydel Plant Project"; and "Formulation of Development Plan of Industrial Sub-Sector" etc.

Besides teaching, Dr. K.C is also a renowned Lawyer, registered auditor and has contributed his expertise to various educational institutions in different capacities.

Very interestingly, Dr. K.C at one time in the past also practiced journalism and served for quite some time "Sapta Gandaki" weekly.

Dr. K.C thus could be considered to be a perfect personality. Undoubtedly he is modest and simple. Last week I met this highly qualified scholar at a NEFAS program and approached for an exclusive interview. Dr. K.C obliged. Below the results-Chief editor.

TGQ1: Dr. K.C! As a responsible citizen of the country, how you assess the performance of various governments formed after the advent of this new order in terms of delivering goods to the people! Have the governments fulfilled their promises made to the people in and around election time in the past? What would be your personal observation in this regard?

Dr. KC: No government after the advent of democracy has shown good performance. The government has not been able to meet the increasing expectations of the citizens. It has proved itself unworthy even in its prime responsibility in maintaining law and order in the society and in delivering goods and services to the people.

Neither there is easy availability of daily necessities, nor fair prices are maintained. The prices of most of the products including food, clothes, water, electricity, petroleum products etc have been increased tremendously. As a result, the purchasing power of the people is being decreased day by day.

There is rampant corruption. Before the political change, there were under the table deals. Now this practice has changed and each and every "deal" is being negotiated over the table.

Most of our political leaders do not have sufficient theoretical knowledge and practical experiences. They lack development vision, integrity, and commitment towards the country and its people. Naturally, they fully depend upon the advice of conservative bureaucrats, so-called experts and vested intellectual as well. Besides politicians, they are also equally responsible to invite such a vulnerable situation in the country.

TGQ2: Some economists say that we are a "donor-driven beggar country". Do you agree to this theory or would prefer to disagree to this claim? Also tell us about the state of the nation's economy as it stands today. Have you any formula in your mind that lessens our heavy dependence on donor's aids and grants? Can we survive as a nation without their economic/financial support in the future? It is alleged that the donors put some conditionalities prior to releasing the aid. What could be done to minimize such conditionalities? Your opinion please.

Dr. KC: No doubt, we are a donor-driven beggar country. The policy makers generally do accept the "Commission based" projects instead of selecting the needed ones. The volume of foreign aids and loans has been increasing every year. However, there has been no remarkable change in the quality of life of the people at large, instead the burden of the debt. The production and the productivity remain stagnant. There is huge trade deficit. Despite of the various incentives provided by the government, foreign direct investment is not encouraging so far.

First of all, the capacity of internal resource mobilization should be strengthened. Foreign aid and loans should only be accepted as a supplement to the domestic resource mobilization. It is a high time to change our attitude towards foreign grants and loans. While accepting any grants and loans, the strength and weaknesses of each project should be evaluated properly. The policy makers must not hesitate to reject any projects with unfavorable terms and conditions. Being a donor-driven economy, it seems very difficult to run economic activities in the near future. But in the long run, we can definitely survive as a nation without their massive support and involvement.

TGQ3: Dr. K.C! You must be aware that only recently the government brought the Armed Police Force into being through the Royal Ordinance. Do you think that this APF could be able to contain the threats posed to the government by the ever increasing strength of the |Maoists insurgency? In your opinion, what could be the cause for the rapid growth of the Maoists insurgency in the country? Is it a political issue demanding dialogues between the government and the rebels or is a terrorist issue demanding the use of force? Your remarks please.

Dr. KC: The mass poverty and unemployment, uneven distribution of income and opportunities, absence of fair treatment, wrong attitudes and policies adopted by the establishment, rampant corruption and criminalization of politics, the disappointing performance of the government in all sectors are the major causes for the rapid growth of the Maoists' insurgency in the country. I doubt that the recently introduced-Armed Police Force could be able to control the threats posed to the government by the ever increasing strength of the Maoists insurgency.

Instead, it is a socio-political issue, the government should seriously think of the root cause of such insurgency. The dialogue between the government an the rebels may be the best solution to this problem.

TGQ4: The government is hell bent on privatizing the state owned corporations for unknown reasons. In the past while privatizing, the State sold out some corporations at dirt price which shocked the people to a great extent. Why the governments opt to privatize the state owned undertakings? What are its merits and demerits? Would you be kind enough to shed some light on this aspect as an expert on the matter. Your comments please.

Dr. KC: In Nepal, the government has adopted privatization policy with the objectives of reducing financial and administrative burden of the government, improving operational efficiency of the enterprises, involving the participation of the general public and the private sector in the management of public enterprises and generating additional revenue. The mounting pressures from donor agencies, poor performance of public enterprises and government budgetary deficit are the main reasons for privatizing public enterprises.

The major benefits expected from privatization include increasing efficiency, and competitive strength of the enterprises, increasing output and productivity and attracting foreign capital and advanced technology.

However, the abdicating social obligations of the government, assisting in the concentration of the wealth in few hands, selling enterprises at a trash value, absence of transparency in policy and program, ineffective monitoring and evaluation system etc. are the main defects of the privatization process in Nepal.

The government has already privatized sixteen public enterprises since 1991. The overall impact of privatization is not positive in Nepal. It has serious negative impact on employment. The prices of most of the goods produced by the privatized units have increased substantially. Similarly, the quality and the availability of their goods and services have not been experienced competitive and up to the mark. Privatization policy in Nepal has thus not been successful in Nepal in reducing the budgetary burden of the government, in attracting massive private investment, in generating ample employment opportunities, in stabilizing prices and in generating more profits.

TGQ5: We are told that the nation is under tremendous stress. Some analysts predict that the system now in force might see some major upheavals if the nation remains in the situation where it is now. The economy is sliding, law and order situation is at its worst; lay men even question the suitability and the viability of the system because of the government's mal-performance and mal-governance; corruption at higher political levels, for example- the Lauda Air deal- and the likes, all put together have corroded the beauty of the democratic system. Under such circumstances, what could be the way out to save the democratic order? Your comments please.

Dr. KC: I do agree with your statement. It is true that the nation is under tremendous pressure. It is facing series of troubles. Since the government fails to provide good governance in the country, it is natural to raise questions about the suitability and the validity of the system. The political leaders themselves misuse Democratic norms and values. However, it is our tragedy that the voters have repeatedly rewarded the same corrupt leaders. It is therefore utmost essential to launch the civic education and awareness program throughout the Kingdom. There should be effective mechanism to deliver the goods and services to the people and to control corruption particularly at higher political levels.

All public institutions including judicial and bureaucratic ones should be completely free from political interventions. Besides, the government should adopt appropriate development strategies and policies to alleviate poverty through the employment and income generating projects.

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