Wednesday, September 21, 2005

Alleviating Poverty in realistic and faster way

Rajeeb L. Satyal

 Poverty has been one of the root causes of political, social and economic instability in Nepal. Everyone concerned recognizes the importance of overcoming poverty and are doing their best to address it. Nepal has been committed millions of dollars of foreign aid for addressing poverty to be channeled through several I/NGOs for implementing community-based programs. Government has established a Poverty Alleviation Fund to coordinate various activities. However, will this Himalayan kingdom be genuinely able to address its poverty problem through such programs? In addition, are there any successful examples of any country overcoming its poverty through donor-supported programs? Answer is, donor supported programs may help to bring temporary relief in the country if the funds are used properly; but they will also make the country poorer, lazier and more dependent when donors withdraw their funds.

Generally community based programs are effective to reach the grassroots level. However, in case of poverty alleviation, they would be effective only if the country has sufficient resources of its own to share with its grass root level communities in form of soft loan, grants or technical support to help them earn their livelihood. It would be simplistic to hope to address poverty by sharing the resources obtained from foreign aid. It surely sets certain precedents that create expectations and dependency.

 Both the poverty as well as affluence are state of mind, an abstract condition that every country or society need to define in their own context, conveniently represented by a vision supported by realistic baselines, and numeric indicators. Both poverty and affluence are to be felt and experienced; for example, most of the villages in Nepal have natural resources such as rivers, mountains and jungles that can provide all the resources we need to alleviate poverty or to achieve affluence, to state more positively. However, despites all these, we still feel poor, and challenged.

 Our challenge lies in packaging the concept of poverty alleviation in less abstract, and more realistic and positive term in order to appeal and motivate entrepreneurships in the country. In fact, the use of the term ‘poverty’ undermines people’s natural entrepreneur quality. The frequent use of the term ‘poverty’ itself creates poverty at subliminal level. On the contrary, the campaign such ‘Providing Basic Needs to People’ was far more appealing and therefore was one of the best national campaigns that were ever developed in this country during Panchayati rule. The concept of ‘fulfilling basic needs” enrolled everyone from poor to rich equally whereas the concept of poverty alleviation seems to enroll poor and alienate rich, making it look like war between poor and rich. The concept of fulfilling basic needs was dropped merely because it was developed during the panchayati rule.

We need immense resources to alleviate poverty. However, such resources also include some abstract raw materials such as proper attitude, vision, creativity, idea and commitment, of the people, by the people and for the people. Only determined, capable, visionary leadership can create such resources. A visionary leadership does not necessarily have to come from individual/s; it can come from any part of society. In fact, such leadership should originate from the communities of business people, entrepreneurs and traders who know how to convert opportunities into benefits. In developed countries, all the economic activities are led by private sectors, while the public sector just creates environment by the way of modifying and updating public policy and regulations. The country cannot proper unless private and commercial sectors take over its economic activities.

 It is surprising to hear from some political leaders that Nepal has done a lot of development within the last 12 years of their supposedly democratic rule and that Nepal needs long time to develop. Development is not the result of time; it is the result of visioning, creativity, planning, commitment and actions. With all the new technologies, Nepal will need less than 10 years to transform itself into more developed country with better per capita income, basic educational and health services for all, and better infrastructure, if we do it right. Moreover, doing right thing does not always mean copying or repeating the same thing repeatedly. It may require doing things in completely different and innovative way. If Nepal relies on the present conventional methods, even 50 years seem inadequate to fulfill people’s basic needs, let alone converting itself into one of the developed countries of the world.

 Here are few examples of some overlooked opportunities through which Nepal could increase its financial and technological resources much faster than we think. There are a lot more. “Seek and thy shall find it” is the mantra we should follow.

Nepal could successfully market its pleasant climate, mountains, and religious shrines and low cost of living to attract many affluent and skilled people all over the world to permanently reside, initiate any business or simply to retire in Nepal. This would benefit Nepal in not only bringing enormous funds but also new technologies and ideas.

Nepal needs lot money for its infrastructural and other development. Bottom line is we have none. The smartest way to earn fast buck is to promote foreign investment in Nepal in different areas, products and services. We need to offer very special benefit package such as long tax holidays, special facilities etc to attract foreign investors.

Like many countries such as Canada and USA, Nepal should allow its fellow non-resident Nepalis of US and other countries to retain double nationality and provide them full facilities as local citizens so that they are encouraged to invest or keep their money in own motherland. Such liberal policy will not only bring more money to Nepal but also strengthen our standing in the international forum.

 Offering special package to Neighboring countries

Neighboring countries such as Indians would love coming to Nepal due to better climate, lesser noise pollution, and religious shrines. Nepal could capitalize this fact by offering attractive benefit packages and facilities to targeted groups. For example, we could market expensive villa, exclusive houses, and apartments at various stations such as Nagarkot, Budhanilkanth, and Pokhara etc to Bollywood film artists who would love to buy in a price that would be attractive to them. Similarly, instead of going to India for treatment, Nepal could offer Indians to shift some of their best hospitals and schools to Nepal that will benefit both countries.

If government does not have enough cash for infrastructural or any developmental activities, it could always offer national or international private parties to do so on their behalf through mutual benefit program. Government should take public private partnership approach more seriously by assigning local residents and businesspersons to maintain their own city, roads and public property under mutual agreement. Every household on the roadside should be made responsible to maintain and clean the road in front of their house. Although it may sound radical, even the responsibility of developing some remote districts of Nepal could be given to private parties.

Nepal should make its public policy and regulation investor friendly to attract national and international parties to initiate business, trade, industries or any economic activities that benefits the nation and its people in form of employment and foreign currencies. Nepal’s present registration and tax policy are too harassing for any new investor to even think of investing. Government worries about getting tax even before full registration process.

The idea is to seek, learn and adopt smart ways to prosper and not be carried away by cliché, such as pro-poor policies, pro-poor campaign, poverty alleviation which may temporarily appeal and raise hopes and dreams of poor. However, they will never solve problem. Alleviating poverty means helping people become richer which we can do only by enrolling the rich, not by alienating them as present trend seem to promote.

Questions sent to the perusal of the ROK Ambassador in Nepal

( To be published in the Telegraph Weekly 28 th September issue )

(Sent through the kind courtesy of Mr. Doh, Korean Embassy)

CC/ Ms. Mridula

TGQ1: Your Excellency! Please be kind enough to tell our readers as to which factors contributed immensely to the transformation of the Republic of Korea into a modern, vibrant economy and highly developed Information and Technology country? We know that you began from the ruins. Also tell us about how democratic system took roots in your country in the recent years and where ROK stands today in the comity of fully democratic nations?

Your comments please.

TGQ2: Talks about the reunification of the two Koreas have apparently taken a back seat, it appears. The six party talks to bring the North to the negotiating table and make the North a non-nuclear state too appear distant.

Given this scenario, do you hope still that the unification is possible? Also tell us what is the fate of the now postponed six party talks and of the North's attitude vis-à-vis the non-nuclearization of that country?

Your remarks please!

TGQ3: The presence of foreign forces in and around Korean peninsula has been a matter of concern for some countries in the region.

What is the rationale behind having foreign forces in the ROK territory? How do you take this? What you say of this: a compulsion or a supporting hand in order to balance the tension that might come to the surface in the absence of such a presence?

TGQ4: Recently Nepal's Crown Prince Paras made a short visit to Korea. Could you highlight some significant events that could have contributed in enhancing our bilateral ties?

We would also wish to know as to which were the projects wherein your country has been assisting Nepal and of your country's future plans, if any, or in the pipeline, in order to support Nepal to become a self-reliant nation? Your comments please.

TGQ5: Korean media says that your government has set its new "economic policy direction" for the country with special emphasis on returning the economy to its potential growth path and maintaining solid ground thereafter.

Could you tell us the major points that the ROK government has taken towards this end? Your opinions please.

TGQ6: We are told that Buiddhism heavily influences your country. How its impact is seen or is felt in Korean societal and political behavior?

Is there any scope in between Nepal and Korea to learn from each other on matters related to Buddhism so that both Nepal and Korea becomes a seat of learning for those who want to know the inner philosophies contained in Buddhism?