'All political forces' of the country must be assimilated into the national political mainstream

-Dr. Badri Prasad Shrestha, President, ISD, Nepal

He is one of the most revered senior economists of the nation. Some of his books on the basics of Nepalese Economy are still being taken to heart by his students belonging to this discipline who too were seated in very prestigious positions in the country. His unconditional contributions made to the expansion and the enhancement of the Nepal's economic sector remains par excellence.

He obtained his Post-doctoral Research from the University of Pensylvania-1964-65 and the doctorate degree from the University of Bombay as back as in 1962. He did his M.A from the BHU, India.

At the moment Dr. Badri Prasad Shrestha is the President of the Institute for Sustainable Development which houses a galaxy of scholars of Nepal whose expertise in various disciplines undoubtedly has made this NGO very popular among the Nepalese academia.

Among the various distinguished positions Dr. held so far in the past were the Vice Chairman of the National Planning Commission and his being appointed as the Royal Nepalese Ambassador to Japan concurrently accredited to Australia, New Zealand and Korea.

He has several books to his credit which include, among others, "Nepalese Economy in Retrospect and Prospect" ; "SAARC: An Economic Perspective; Post War Economic Development of Japan" ; "An Introduction to Nepalese Economy" and "Hamro Artha Byabastha".

Dr. Shrestha has attended various international conferences representing Nepal which include a delegate to the Ninth Non-Aligned Summit, delegate fourth SAARC Summit, Islamabad; and Alternate leader, Ministerial Level 29 th Colombo Plan Consultative Committee Meeting held in Tokyo.

Fortunately enough, Dr. Shrestha also was a Royal nominee to the then Nepalese Parliament during late 1960s.

Recognizing the tremendous contributions offered by Dr, Shrestha in the service of the nation, the newly founded NAES honored this giant of the Nepalese economy recently. Dr. Shrestha puzzled many a brains attending the award ceremony when he declared that the cash prize of 75, 000 rupees would go to some scholarly research organizations at an appropriate time.

Last week, I approached this "big personality" for an exclusive interview to which he readily agreed. Below the results: Chief editor.

TGQ1: Dr. Shrestha! You are considered as one of the prominent architect of the economy of the erstwhile regime. What departures do you see in the multi-party decade that has apparently led to the current state of economic affairs.

Dr. Shrestha: Fundamentally there is no major departures from the past except that these have been the further acceleration of liberalization and other reform process initiated in the mid-eighties with structural adjustment programme. However, the liberalization process is carried forward with wrong sequencing and remained so far lop-sided. In a dualistic economy like ours, a single policy package, whether we call it liberal economic policy or market-led growth strategy, cannot address the specific problems of the vast hinterland of rural economy where money and market have but limited relevance and where the incidence of poverty and underemployment are extremely high. Dualistic economy like ours demands dualistic policy-packages-one tailored to expand the so-called modern sector based largely on organized trade and industry on a competitive basis and the other to restructure the rural economy for reducing poverty, underemployment and environmental degradation as well. The present state of our economy is the result of such lop-sided policy measures and also the reflection of the total system of which the economy is only a part of it.

TGQ2: We wish to listen from you, Dr. Shrestha, on Nepal's joining the WTO as well. Will it be beneficial or the otherwise to us? Your comments please..

Dr. Shrestha: So far as the question of joining the World Trade Organization, WTO, is concerned, WTO membership provides new opportunities and brings new challenges as well. We must be prepared to face the new challenges and grab the new opportunities. Multilateral trading system under WTO provides better and wider market access, unhampered and convenient transit routes access to binding trade related dispute settlement mechanism etc. At the same time, we have to comply with the rules, regulations and a number of agreements related to tariff, textiles, non-tariff barriers, agricultural subsidies, trade in services and trade-related intellectual property rights etc. The sooner we can increase our exportable surplus on a competitive basis, the greater will be the gains from joining the multilateral trading system. In the final analysis, all depends on how we manage our economy.

TGQ3: You have recently been awarded the Economic Association award, how do you feel yourself justified as a recipient? Has the Nepalese economy or have the Nepali economists in light of the award recognized your approach? If yes how?

Dr. Shrestha: I consider the award not so much as an appreciation of an individual as it is an appreciation of economics as an important branch of knowledge. It is, therefore, an honor as much for me as it is for all my fellow economists. We have among us many young promising economists having highly specialized knowledge, skill and expertise. We need to day more than ever before such skills for efficient management of our economy, which is getting more complex and complicated. Individual knowledge of a particular subject is one thing and individual approach to a particular issue is altogether a different thing. It is not necessary that all economists should hold a common view and common perception. In a pluralistic society, it is neither possible, nor is even desirable. There should always be room for convergence and divergence of ideas.

TGQ4: Your term as Ambassador in Japan is said to have contributed significantly to Japanese-Nepalese economic interests in Nepal. What of the benefits to us? The follow us by your successors?

Dr. Shrestha: As you know, Japan has expanded and extended her economic and technical cooperation to several areas of our priority. Such cooperation has passed through the three distinct phases. In the first decade (1968-1977), Japan provided grant assistance for increasing production in our major economic sector, namely, agriculture. This initial phase was followed by the decade of expansion phase (1978-1987). Most of the major projects both in economic and social sectors were initiated and completed during this period with the quantum increase in Japanese assistance, placing Japan on the forefront among the bilateral donors. The present phase may be characterized as the adolescent phase with assistance for a number of infrastructure - related projects. It is most satisfying that my tenure of office in Tokyo (1979-1985) coincided with the expansion phase of Japanese cooperation to Nepal. The Japanese assistance has substantially contributed towards improving the quality of life of the Nepalese people and creating physical infrastructure for further economic growth. The fact that Japan has been maintaining her forefront position among our bilateral donors since the expansion phase indicates both continuity and consistency.

TGQ5: As an economist of international standing, what solutions do you see to Nepal's economic and political woes? Do you consider the role of the King inevitable in settling the Himalayan problems plaguing the nation of late or should he remain as he is at the moment?

Dr. Shrestha: Considering the present situation of the country in its totality, one possible option could be to let the events taking their own course without intervention (or with wrong intervention). This will result in unpredictable and eventually disastrous consequences. Obviously such option cannot be in the interests of Nepal and the Nepalese people. Another option is to hammer out a peaceful solution in a planned way through a constructive and unconditional dialogue and open-ended discussion among all political forces and civil society for forging a common understanding and agreement on minimum core issues ranging from law and order to political, social and economic reforms. Given the question of sustainability of various movements launched by various political forces in their own manner and the flexibility demonstrated implicitly or explicitly by these forces in recent weeks, there is every prospect for success of such dialogue however tortuous such dialogue may be. A dialogue of this nature should always be a process of mutual accommodation and assimilation and also a process of "give and take". Somehow and in some way, all political forces of the country must be assimilated into the national political mainstream in a balanced manner. Not isolation but mainstreaming of all political forces into the national political process in a balanced manner is perhaps the only way to tide over the present volatile situation in a peaceful way and on a sustainable basis.

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