Well, you may be laughing reading this topic, which is seen impossibility looking at the present context. You may call me over optimistic but i still argue that the vision is achievable. If a political solution for the Maoist problem is worked out then this goal will be a reality not a dream. Now, let’s analyze how far we are really from the framework.
Firstly, i would like to make all Nepalese aware of our present economy. At the stage when all South Asian countries are enjoying a very high economic growth rate, we are engaged in a pre-twentieth century war of regime change. When all other South Asian countries and China are recommended as the best investment areas in the world, foreigners fear visiting Nepal due to security threats. China enjoys economic growth rate of about 9%, India 7%, Pakistan 7%, Bhutan 8%, we are staggering at 3-4%. This growth, i hope is not by the increment of our indigenous economy but rather it is the reflection of Indian growth in our soil due to highly integrated economy. For the last five years a substantial budget has been wasted for defense purpose which has no future in itself.
Nepal being a country between two giants, China and India, is one of the most secured countries of the world. One's aggression towards Nepal will definitely endanger the other, so we have both the snake and the stick automated. In this context, we should also be aware that aggression of any of the two neighbors cannot be defended even we have our full potential exploited. so, its the waste of our resources to keep huge army. It is always better to tackle the internal threats by home security forces like Nepal Police and the Armed Police. Increase in the strength of Armed Police and decrease in strength of RNA will even give good global message about peace initiative. This will ensure more help for reconstruction and also private investment will grow along with it. Nepal, a economy of less than 10 billion $ enjoys about 1 lakh army while Brazil, a economy of above 700 billion $ have just 65,000 army. This statistics shows a real threat of Nepal moving towards a failed state with economic dis rupture. Taking in mind the outcome of military involvement in Sri Lankan LTTE crises, Indian J & K and Manipur crises, it would be tactful to search for a peaceful referendum with all the possible negotiations.
It is equally important that Maoist must be well aware that in the name of revolution whatever economic setback they are enforcing to weaken the govt, they are weakening themselves. WE Nepalese are powerful only when Nepal is developed. It should be noted by all politicians of all parties that they will have a good life being a citizen of developed Nepal, then being a ruler of failed Nepal.
Corruption, the definition of this word changes with the figure doing it. No one sees black money in his home while other's money is seen with suspect. A bureaucrat or a politician often enjoys sending their relatives in foreign scholarship seats. While sending his son/relative in place of some one more capable candidate, the official never know that he is destroying the future of his grand children and their relatives. He is actually throwing Nepal's future while he throws a able candidate. The able candidate could be the like of Bill Gates, Albert Einstein, JRD Tata or Sameer Bhatia. This is a serious concern and it has to be investigated by the Investigation authorities; but I am sure they can not do it as they are themselves part of this corrupt culture. It is even more difficult to act in this area as the main players are Indian and Pakistan Embassy. I thank our neighbors for exporting corrupt culture to Nepal without any bureaucratic hurdles.
The culture of favoritism has made every Nepalese a victim. The good professionals are left out in favor of near and dear ones. This has sickened almost all government, public and private enterprises. Hardly anybody work to his best due to the lack of challenges and fair reward.
I never understand why a majority of Nepalis are having anti-Indian sentiments. India is one of the best possible neighbors any country can have. We can see the fate of Haiti (close to US) or Taiwan (close to China). They are struggling to save their sovereignty, while India has always respected ours. Also, Indians are the best possible people in the world in terms of Human Values. Ask anybody working under Indian boss, he will tell you that.
To develop Nepal, it is essential to integrate the economy further with India while expanding trade with China. Nepal can be the best Investment destination for both the Indian and Chinese to enter each other's market. Apart from peace, we have everything, from large number of technicians (engineers), management graduates, medical professionals, and English speaking graduates of other fields. This can place Nepal into one of the best Knowledge based business process outsourcing destination. Also, Nepal has the potential to become to be huge service market along with manufacturing hub due to geographical location of being between India and China. Now, we need to exploit this unique potential we have earned by development of our great neighbors.
To attract FDI (foreign companies), along with security, infrastructure development is mandatory. But if the defense expenditure is lowered and corruption controlled, the saved revenue is sufficient for early stage progress.
Now, coming back to the topic again, let’s analyze whether Vision Developed Nepal by 2025 is feasible or not. I say again, it can be done; but it matters how we develop. When France and Germany developed, it was compulsion fro Swiss to develop; so same applies here, Nepal has to develop when India and China develops. We have to and we will, in any case. But being at that stage, we may be forced to have puppet government, be lunch pad for foreign troops, be playground for foreign intelligence agencies or be a smuggling hub. This may even endanger our sovereignty.
To save Nepal from such tragedies, Nepali political circle should learn one lesson, "Run country by economic values and not by political values." Whether it is democratic parties or the Maoist, whoever comes to power their goal should be economic development. If the economic development programs are brought forward which is people centric but not populist, no one can stop Nepal from being a Developed Country by 2025.
Some of these programs can be -
* Lowering of Electricity Tariff to 2 to 3 rupees from current 7 plus. Nepali industries must get cheap electricity in the water rich country like Nepal to remain competitive in the Global Markets, when they have to expend high on transportation to reach foreign markets due to lack of Nepal's exposure to Sea.
* An immediate Free Trade deal with China on products that are not produced in Nepal. Nepal can have negative list of goods which needs protection, but this list has to be as small as possible. It will favor cheap consumerism to Nepali consumers and open up large Chinese market for Nepali companies.
* Establishment of at least two more international standard engineering colleges like IOE, Pulchowk and two international class management colleges (business schools). These colleges needs to be kept far from politics and made autonomous.
* Effective implementation of VAT and other revenue collection systems. A strict monitoring system and harsh punishment should be made for economic defaulters.
* Implementation of E-Governance System where ever possible.
* Demilitarization totally or military liquidation to have total army men of 25000. They should be well equipped strong Army Personnel working with equal potential as that of developed nations. This will save life as well as revenue. The extra revenue can be used for Infrastructure Development, Education and Health.
* Removal of oil and gas subsidy. The saved revenue can be utilized for building new and huge hydro-power projects.
Jai Nepal
9 Comments:
i agree with u..
Hope sees the invisible,feels the intangible and achieves the impossible..
I strongly agree that we need to have a clear vision to put ourselves back in the economic progress.
If the giant economies grow, we will grow and this is also matter of concern that how we grow? It will be very prudent for us to give it a thought.
Electrcity prices cannot be cut down at once, because we are running out of electricity and they must be sold at least with a survival margin over the production costs. This is only possible when we have large projects like karnali operating at 11,000 MW, leaving huge electricity for us to consume as we wish.
I think the two things that can revive the economy of our country are :
1. Tourism
2. Electricity
If a national commission with major powers is setup to initiate projects on above two sectors, We will start generating billions of dollars by just 2020. Give it a thought.
man u are the man... u have done so much of study writing this.. appreciate you.. people like u are needed the most in nepal... i m with u ...
Thanks Susma, Sandeep and Hem.
Sandeep, I do agree with you in some way. You are very correct if we look at the current situation and take the feasibility into consideration. But we need to change and that has to be well above what we generally do and what's possible under these circumstances. We need to take some risk. And, I see every possibility to run Nepal with that level of risk. Not taking any risk is the greatest risk. That is where our great politicians have kept us in.
Your views are very true about tourism and electricity. I will add services like hotel and hospitality, market economy and IT to it. We are in many way equipped to make that happen like exposure to english, geographical proximity to India and China (places of origination of high value tourist these days, value in terms of both wallet size and number).
really a very positive vision. I hope that all our politicians read this once.....
This is one of the most constructive blog pages i have seen from a Nepali; well besides the blog.com.np/ That site has lost its way a little.
You on the other hand have that childish optimism and a mature thinkin. felt gud readin it. I hope its not too late.
I have this hysteric feelin that, Nepal can never rise up specially after maoists provin that if u need sth just point he gun at anyone u want.
any ways, be a optimist, it makes u smile.!
take care!
Very Intersting!
Keep it up!
It is an encouraging and enthralling essay and I express my reverence to the author. Nepal as said by author is not enjoying the economic growth as our neighbors do i would like to accrue 2 more points:
1. Political Instability
2. Policy Making
Political Instability and the war engulfed Nepal so tragically that it would take few more years to overcome our shortcomings. As we all know whether any projects or any development works can only be done if the country is politically stable. Government is so fickle that no International body is willing to invest money in Nepal. So Nepal has to show some lucrative offer to the MNC so that we can run mega projects.
Second thing is stern and lucrative policy to be made whether FDI or Power Purhcase or any other trades, Policy should be stalwart so that our country would benefit from it. FDI is being continually criticised by nepali businessman because it will surely threatens their position. But government has to make such policies which regulates the FDI as well as Domestic Investment security.
Nepal has to learn some lesson from the Economy of India which harness Foreign Investment to a level that now they are enjoying more than 7 percent annual economic growth. Now India is economic powerhouse and big player in the world arena its because of their Policy designed by their intellect Economist in early 1990s.
Thanks Saroj, Vsraj, Turtle and Bibek for stopping in my blog and commenting.
I appreciate your views.
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