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.
Sunday, September 16, 2007
Cross Border Terrorism Increasing - But Shall we close Indo-Nepal Border?
Posted by Bhupendra at 8:15 AM 1 comments
Labels: China, Economics Nepal, India, Nepal Politics, Regional Politics, SAARC
Saturday, November 19, 2005
China-SAARC FTA
There is no fixed rule to be culturally, economically and politically similar to form a Regional Economic Cooperation.After second world war the allied countries started pushing their products wherever they could. The other countries then reciprocated by applying import tariff and quotas. Then the developed/powerful countries went forward applying pressures to the developing ones, sometimes military threats and sometimes the reform agendas of the world bank and the IMF. To fight these the countries with similar problems came together forming economic blocks to increase their bargaining power. As the countries who were geographically near could easily form such blocks so then came the formation of ASEAN, SAARC, ECO, SAU, AU etc. This is nothing to do with culturally similar or different but then while at bargain the block used the term culturally similar. The functioning just needs understanding and motive.
As far as Afganistan is concerned, it is one of the best dicision that SAARC has taken till date to include this country. And I welcome China and Japan also in the group. The observer status given to them is extremely good, but the way they are given is not satisfactory. NEpal putting a condition of the observer status to China for membership to Afganistan, and India not willing to bring in china was not good. Anyway there are some differences and the only thing that matters is the outcome. Welcome Afganistan, China nd Japan.
I think we are more concerned to textiles then is necessary. Nepal had free trade with india 2001. After that Nepal has lost many industries including textiles, all companies are closed, but consumer items, electronics goods, banaspati ghee, cigarette, liquor, tourism, food products etc industries have achieved good progress in return to the textiles and automobiles industry. The sectors in which nepal gained are also not more competitive then Indian counterparts but competition shows the path for excellence and survival, and this ultimately brings competitiveness. The trade balance is becoming less -ve for the nepalese after FTA.
The same was there at SriLanka-India FTA, Thai-China FTA, Japan-US FTA etc. The weaker too that gains in FTA but we have a habbit of comparing with the other counterparts, which hurt us. In all these FTAs the most competitive gained more but not at the cost of the other player but both gain while the trade with external world diminishes.
No cry friends, India will survive when we have China in SAARC and SAFTA, once survived after initial loss, India will start gaining. thus India and China will lessen their trade dependency with the West and then inclusion of Iran may be the next step for us to go.
"FOCUS ON STRENGTHS NOT LINGER ON WEAKNESSES."
This is main point which we need to take in mind. The wins will follow.
Let Chinese gain, but we must also gain. And we wont lose competiting with majority govt. funded and cultured inefficient Chinese companies. Cheap goods are the not the only goods that are sold in markets. If they can make cheaper then us, then we are lucky to get cheaper goods to consume while our labor is available to do some other more productive works. Our inflation rate will come down. For unemployment we need not worry once we have China-SAARC FTA majority of investments in the world will come to this locality and no investor can keep himself away from us.
Lets go for it.
Posted by Bhupendra at 3:45 PM 0 comments
Tuesday, November 15, 2005
Welcome Afganistan, China and Japan.
Yesterday when i read the news of the inclusion of Afganistan as a member of SAARC and China and Japan getting observer status, i observed a change of mentality in the South-Asian governments. The poor group countries were the masters of finding excuses for not developing their state. They have never taken any remarkable step till date nor have solved any specific problem like Bhutanese Refugee problem, Kashir Issue, border issue between India and Bangladesh, India and Pakistan, India and Nepal etc. The first good step was the implementation of SAPTA long back in 1995 which is also not applied whole heartedly and it had lots of problems in implementing it. A good spirit was shown by moving forward with SAFTA first in 1998 and then in 2004. SAFTA will start its effect from 2006 while for the full implementaion we have to wait till 2016.
The percentage of intra-regional trade out of total trade remains below 10% even now while in progressive like EU, Asean and NAFTA are about 50%. The main problem seems to be rivalry between India and Pakistan but i have found an intellectual claiming that almost all the progressive steps are not free from the Bangladeshi complaint.
Today i feel that now we are more aware of the world status and are thinking more positively. This clearly is a good sign and it shows our confidence. May this movement take us much ahead. I welcome Afganistan, China and Japan in our group. Lets have a Pan-Asian unity with the merger of Asean and SAARC. The only way to have united and progressive world is to have integrated world. Lets move forward.
Posted by Bhupendra at 3:03 PM 0 comments
Labels: China, Japan, Nepal Politics, SAARC, World Politics