Thursday, May 08, 2008

New Nepal Should Have New Thought

Newly formed Nepal government will have many challenges going forward and they will have to work actively and aggressively. It is challenging but not impossible.

Here are my suggestions for the new Nepal Government.

1. Integration to Global Economy

Free Trade Agreement with China, Japan and US to make the economy multi-lateral. This can be in-line with FTA with India.
This should be accompanied with aggressive infrastructure building to get maximum benefit from these bilateral treaties and SAFTA.

2. Suitable Investment Climate
Industrial Protection Act and Liberal Labor Regime to increase investor confidence. Indian Business houses in particular needs to be protected which are the most affected ones, as in todays world Indian Corporates are among the best governed and most aggressive ones. Entry of Companies like IBM, Accenture, GM, GE, Toyota, Infosys, Reliance, Bharti, ICICI etc can completely change the way companies function in Nepal. They will bring quality technology and huge volume of business, thus creating huge employment and great technological know-how.

3. Independent Planning and Execution of National Projects
National Planning Commission with more representation from Nepali Private sector and less dependent from donor agency like ADB, WB or IMF. ADB, WB and IMF are the masters of putting useless conditions for their help and thus take economy towards more bad, so that their relevance in the world remains. Their conditions should not be taken unless utmost necessary and their overall involvement in the economy should be reduced as far as possible.

4. Government Investment Channelization to increase Professionalism
Establishment of a Professional Investment Company to hold all Government Investments in all companies in the lines of Tamasek, Singapore. This needs to be run by Professional Managers on Competitive Excellence Basis.

5. Aggressive Infrastructure Development by adopting all mediums
Open Infrastructure Development Policy to bring in Huge Foreign Institutional Investment (FII) and Foreign Direct Investment (FDI). This should be mainly targeted towards building Hydro-Power, Telecoms, and Transport Facilities.

6. A Nuclear, Power Sufficient Nepal
Nuclear Energy Development Board to work with India and China for development of Nuclear Energy in civil use. RONAST needs to be made more professional and pulled to support Nuclear Case.
Nepal is reach in Hydro-resources but it should not just stick to its use because production and maintenance of Hydro-power is not efficient and effective. Argentina and Hungary has already seen very bad economic and environmental effect with over focus on Hydropower and Nepal needs to learn form them.
Nuclear Energy is safe and has cost effective maintenance. This makes it favorable for long term interest of the economy.

7. where there is Resources there needs to be Military
Effective Military Development more on the lines of Singapore, less Army but most sophisticated and modern equipment.
It can also be making of SAMA (South Asian Military Alliance) or joining Shanghai Co-operation or NATO. This will make sovereign voice strong.

8. Complement India and Not Consume India
Cancellation of 1950 Ind0-Nepal Treaty and replacing it with a new one. This should take care of changed political and economic scenario between the two culturally similar nations. It can be in lines of US-Canada Relation.
Nepal should work on building more natural relations with India on the lines of Australia or UK having with US. This will mean having more meaningful and business friendly relations, and not based on favoritism and puppetism.
Nepal is India's natural ally and vice-versa. They are so much culturally linked that in there is unlikely that the bond will weaken or break. This needs to be actively voiced.
The good and progressive relation will mean great for private sector from both the countries. Indian business houses can invest heavily in Hydro-Power and other areas, while Nepali Business will have one of the World's largest Market for their products. This will increase people to people contact and in good note, which I feel is better than India Government financing projects in Nepal and providing aid (which actually flows to few corrupt takers).

9. Upgradation of Rural and Agricultural Economy
Agricultural Revolution is the next thing in line, and this is the right time to start. With Petroleum cost rising and subsequently food prices rising with the production of bio-fuel, the market for food products is huge.
Nepal has good and fertile land, and can produce much more than it is doing today. It just needs effective people awareness. Government can play a facilitator by creating Tax Breaks for companies involved in food production, distribution and processing industries. This should however be accompanied with good policy for bringing in international players to maintain quality of service.

10. Strict and Good Governance
Hard stance on Anti-Government forces accompanied with effective Government facilities. single window can be created to pay all bills like electricity bill, water bill, taxes etc. This can be outsourced to a professional company and operated 24 hrs in major areas with complete IT Automated Facilities.
It is very important to have strong anti-terrorism and anti-corruption act to include capital punishment. There should be no second thought in clear anti-socials from the country and the economy.

Wednesday, May 07, 2008

Nepal India Relations: Moving Forward?

Earlier, you read a post by Bhupendra, co-blogger of this blog about the implications that Maoists' win in Nepal can bring to India. He has tried his best to dispel the fear among Indians, and particularly, the fear of fundamental Hindus. Among many in India, these fundamentalists like BJP and RSS think that emergence of Maoists in Nepal is just a first step to make a corridor of Communists from Pashupati, Nepal to Tirupati, India.

If the Indian mainstream Medias and analysts are to be believed, they see Maoists as offspring of current china Regime. They see the rise of red flags in the streets of every villages and even in sophisticated towns of Nepal as a Security threat to India. Some lamented that Indian Government could not do anything against Red Uprising, Some showed their anger towards the functioning of government in India and lamented the ignorance of Indian establishment. Some analysts were even quick to comment that India gifted Nepal to China by brokering peace between Maoists and mainstream Nepalese Political Parties. There are even people in India who see the whole process of maintenance of peace as something sponsored by Christian dominated countries and see the whole process of emergence of Maoists as an attack to Hinduism. As usual, the voices of some was even tougher harsh and undignified by suggesting that India must take appropriate steps (meaning pressure tactics, mainly economic and diplomatic as well as military might) to ensure that Nepal does not escape from its palm. For these last kind of analysts, Nepal is just their hereditary property bequeathed by their forefathers and a mere chattel on the hand of India Establishment. So, there was no second thought to express various views on the rebirth of Nepal by Indian Analysts and by security experts.With these developments in Nepal, there are various quarters who believe that the relation of India with Nepal is going to be complicated. On the same line, some think that this is a right time for the military overtake in Nepal which is certainly not improving the ties between these two great nations. The last set of views only fuel the anti-Indian sentiments in Nepal which is not good for both the countries.

The doubt of various kinds was heard may be because of Maoists' past policies seeing India as an expansionist force. Their aim was to even fight with India to defeat Indian Military and make a communist ruled south Asia. That was their plan before 2001 AD. But, after the royal massacre in Nepal, Maoists felt that they can not move alone and saw the greater chances to win if they cooperated with other political parties. So, from that time onwards, Maoists made a revolutionary change taking part in peace process and they understood that multi party democracy can be the safe landing for them. It shows the Maoists' commitments to multi party democracy from that time. The thought processes and debates within the party from 2001 to 2003 gave a concrete shape to this ideology.

The rhetoric of "American Imperialism" and "Indian Expansionism" was slowly changed towards working with all neighboring and friendly states. The first thing Prachanda (Comrade Prachanda as usually said in the Maoist party is popular name of Maoist Chairman Puspa Kamal Dahal) spoke after his victory in election in Kathmandu shows that how serious and important are the issues to build a friendly relationship with neighbors. He unequivocally talked about equal distance from two giant neighbors- India and China but emphasized the "special relationship that Nepal shares with India".

What does that Mean?

That must mean two things, and two good things for the people of India and Nepal. One is that Maoists have understood the ground reality and location of Nepal and can not afford to lose the Indian support. Indian support is required in Nepal for the sustainable peace of Nepal, for Nepal to be economically developed. Maoists have also understood that Nepal can gain nothing by antagonizing India.

So, does that mean being submissive to India in every respects? Not exactly. The strong message that Maoists gave to review the Friendship treaty of 1950 between India and Nepal must be a message to every Nepali that still they can hold their head high and Maoists are not just another party like Nepali Congress or CPN UML in that respect. But, the message of scrapping 1950 Treaty does not mean waging war against India. And, this news should not send any jitters to Indian Establishment.

It is rather the right time to negotiate with Nepalese Government which commands the greatest legitimacy in Nepal in its entire history. If we remember the days when this peace treaty was signed in 1950, the government Nepal had was still of Ranas, one of the most autocratic regime in Nepalese history. India can not take advantage of this treaty forever when the treaty itself was signed in dark ages of Nepalese History.


And, except these some of the so- called political analysts and experts, the news of call for treaty review has not created much flutter in south block and sorrounding areas. The view of Indian Foreign Secretary that India is ready to review the treaty is a very good and first step that India has taken to strengthen the bilateral ties.

That must be a good news for India and Nepal. This is a time when both countries can take the friendly relations forward if Indian Establishment does not get instigated by these comments from various quarters, There is a need of genuine involvement in conversation and which alone can take the peace process forward.

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