Sunday, September 16, 2007

Cross Border Terrorism Increasing - But Shall we close Indo-Nepal Border?

I don't see Terrorism as any big problem to force us to be closed doors. And most of it is not targeted against each other. There are hardly any elements in Nepal who want to terrorize India and vice versa. The threat is about third country terrorists entering the duo, from Bangladesh or Pakistan. This calls for better understanding and co-operation between Indian and Nepali authorities. And certainly Visa implementation is not the solution.

Open borders have many economic gains. India is one of the world's largest market and it has the potential of being world's second largest market very soon. The spending culture of India is a great opportunity for us. It is best served when there is more people to people contact.

Consider the case of launch of Wai Wai in India by CG Foods in India. It got a huge success, thanks to huge brand ambassadors, all Nepali Living in India or visiting India.

(European Union - Changes in Real Wages and Productivity. This clearly shows open border and greater co-operation increases productivity keeping real wages low. Good opportunity for companies to tap and grow.)

Not to forget is a close cultural and social linkages. This social linkages has benefited both sides for time immemorial. We are possibly the only two Hindu dominated society in the world and that has opened huge cultural tourism opportunity for both sides. And Indian tourists are the most spending tourist in the world, they have surpassed Americans recently. That calls for better hospitality towards the Indians to uplift our National Economy.

Co-operation between India is increasing and we can only benefit from it. Both are now economic powers hungry to rule the economic world and both will hardly try to contain Nepal in anyway. They are co-operating in Global Leadership and same time fighting for leadership in Asia. We have to learn to live and grow with them.

I would favor no visa but id card system between Nepal and China too. That will open more opportunity for us. Not to forget is our poor performing manufacturing economy and a small market. Now I don't see any possibility of Nepal being a manufacturing hub in any future course as we can never produce cheaper than our giant neighbors. And there is no necessity too. We have huge potential to remain a market economy with service focus. For this open border with India is a huge plus, which is still not exploited by us. Let us not go back but move further and tap the opportunity.

I have said whatever I had to. What's you take? Please do not forget to share as comment.

1 Comment:

Anonymous said...

I know it is not good to comment on a person's blog only after s/he comments on urs. But, Bhup Ji, these days, I was really busy in my own acdemic stuffs and that created some constraints in my reading and writing of blogs.

I hope that U understand it. N I really think my this comment makes more sense here than had I been posted it earlier. Why? Have you read this news about India changing Policy towards Nepal? This news was posted in some of the Newspapers in Nepal and as that info, India has prepared some 36 questions and wants expert's views from Indian Intellectuals. One of those questions is exactly what you have raised in this blog.

Now, coming to your question. I say, No. We can regularise to some extent like just making entry while crossing border and submitting a xerox of our ID or Citizenship Card but the cumbersome process of Visa harms Nepal.

Now, Visa can not stop terrorism, can it? People from Bangaladesh and pakistan are still committing the crimes of terrorism in India despite the fact of having rigid visa regime if Indian medias are to be believed.

Now, coming to Nepal's economic gain, There is a theory of "Comparative Davantage" in Economics proposed by Noble Laurete Samuelson. He says that country should do/produce/manufacture/serve at what it is comparatively better than others. And from the point of Comparative Adavantage to Nepal, Tourism, Hydroelectricity, Vanaspati Ghee and Noodles have higher growth prospects if plans are carefelly carved.

That's all for now n of Course, Happy Vijaya Dashami n Vada Dashain.

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