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.

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.

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.

India - Favourite Work Destination for Nepalese Engineers

A Poll on a Orkut Community - "Nepalese Engineers" have shown a changing trend among its members for favourite place to work. Let us look at the Poll Result (24 Responders).

Favourite Place to work for
1. India (45%)
2. Nepal (25%)
3. US (8%)
3. Asia Pacific, Asean (8%)
4. Europe (4%)
4. Japan (4%)
4. Middle East Asia (4%)
5. China (0%)
5. Others (0%)

US, UK and Australlia have remained favourite destinations are Nepalese Engineers for long time. But this poll has brought a unexpected result. There might be many biases with the poll like most of the community members to have studied in India. But even for most Nepali students doing Engineering in India, main aim had always been giving GRE and moving to US for MS. Then after MS most settled in US with a technical job.

A more important side of the poll result is the disinterest among the Engineers to work in China. While China is shaping the world with its economic growth for last three decades, it is yet to emerge as favourable work place.

As always, I welcome comment on the post. Cheers!!

Revenue Sharing Policy of Federal Nepal- Part I

By Chamatkaribaba

Nepal has since long plunged into a state of anarchy because of the failures of democratic institutions. These failures were because of mainly two reasons:

1) Because political leaders invested little time to save democratic institutions and;

2) There were targeted actions from autocratic and regressive forces, more particularly to blame is King and his coterie.

The second cause was lately realised by these political leaders and by that time, already, state of state was statelessness.
A lot of things happened after that mainly, People's Uprising in 2006, April and have put Democratic institutions back on track, if not democratic virtues. There are a lot of things those have to be done. The debate on political aspects of democracy; and state has received a lot of ink from various people from different walk of life. But, it seems that economic aspect of functioning of state has been completely shadowed.

This blog tries to provide a glimpse of what should happen on the economic aspects of New Nepal.
The recent news buzz is all about Federal State of Nepal. A lot of gangs and groups are fighting for that. People who belong to Terai Region, people from Janajatis, Dalits, Adivashis, Limbuwan people, Khumbuwan and people from Chure Bhawar area are fighting for federal democracy.
All seem to be agreeing on the need of federal state except its modalities how to form it. Some are voicing for Fully Proportional Election system and some are against it. Most of the Nepal's political debate is revolving around Constituent Assembly Election, its success.
Very few are debating on the issues of Fiscal Policy once Nepal becomes Federal State. This is very important for the sustenance of democracy, for the sustenance of state, for the sustenance of each federal province/county (by whatever name it is called) and for their progress.
This issue assumes significance because of Nepal's Geographical Location. All parts in Nepal do not earn same amount of revenue. The Terai, plain Region is more accessible by Roads and Transports. It is easier to do any kind of national and international business from that region. The Terai Region shares its boundary with India, with which Nepal has a maximum third country business. The goods made in Nepal are exported through Terai Region and goods imported in Nepal mostly come from this Terai Region.

Kakarbhitta, Biratnagar, Birgunj, Janakpur, Siraha, Bhairahawa, Butawal, and Mahendranagar are some of the towns in Nepal which has good Road Transport system with Indian Boarder Cities.

The Cereal, Paddy, Wheat, Oil and Gases, Salt, Clothes, Heavy Machinery, Transport related Gadgets, Clothes, and other stable food grains are mostly imported through this route and a little like Vanaspati Ghee, Noodles, Copper Wire are exported to India and via India to Bangladesh, Bhutan etc.
Because of these enormous economic activities, a lot of revenue will be collected in this region which substantially helps in development of the country.

Nepal's other parts are Himalayan Region and Hilly areas. They lack good Roads and Transport Systems. Very little economic Activity happens there. Some Hydroelectric Power plant located here and there, local textiles, local papers, and some food stuffs like Alainchi, Amriso are the major products of this area. Even those goods produced here are either marketed in Terai Region like in Nepalgunj, Birgunj, and Birtamod or through Terai Region; these products are sent to outside the country. So, because of lack of systematic markets in hilly and Mountainous areas, all trading activities happen in Terai and most of the revenues from these goods are received by Terai Region.

The Himalayan Region shares Border with China in Northern part but very little activity happens there because of lack of any good Transport Systems except in Tatopani Customs Office.
In this Scenario, we need to think what happens when Nepal is divided into a Federal State? How Economic Resources are collected and how they are distributed?
Who, either Center or Provincial Government, will have power, by Constitution, to collect and distribute such revenue and by what proportion?

This is a question that needs to be meticulously analysed and answers have to be found out. We need such answers that do not bring unequal distribution of wealth among regions. We emphasise that distribution of revenue should be made in such a way that does not hamper regional progress.

This author is trying to search some of the best possible answers in coming days, analysing the issues from Constitutional, Economical, and from Fiscal Policy view point.

Be with us!

(Reach to the author at Chamatkaribaba)

We Need Companies to Come not Donors

India was turned by the mass recruiters and trainers like Infosys, Wipro, TCS, IBM, Satyam and the likes. They pushed India from a third world developing country to become the second important IT Vendor and best outsourcing destination in the world.



Nepal have to declare few areas as SEZ and give tax breaks to attract them and Nepal desperately need companies like them. Entry of one or two of them can change entire Nepal. If someone in the government is hearing I would like them to be proactive and call companies to invest in Nepal. I would like to invite these revolutionary companies to invest in Nepal ....




ICICI Bank

Bharti Airtel

Infosys

Wipro

TCS

IBM

Accenture


Our economy is survived by remittances and aids for long. Now, the time has come when we turn ourselves to business than asking for donation. We need to make coming generation optimistic of their future and the country. They will need to see some development happening in Nepal. Development in the form of investment and business.

The picture is of the Infosys's Mysore Campus. I want to see one in Nepal. Is there any possibility of having it? (question to our ministers and planners, and not to Infosys head)

Nepal as an Off-Sourcing Destination

Many aggressive companies are staying away form Nepal, thanks to poor security situation. The power majors are considering of huge investment in Hydropower sector to export power to the power hungry states of India and China, and this is a good news for Nepal. A country with very high hydro-power potential has one of the costliest energy, which simply is not acceptable. Nepal need to reform the energy sector and prepare the base for development.


While the companies like Samsung, Kodak, LG, Kia etc have entered Nepal, their performance has not been very good in the past. The things are likely to change when Maoist are in the government. Many more companies are likely to follow the investment in this Himalayan country provided the early movers succeed. There are multiple reasons why companies would like to invest in Nepal:


1. Favorable Location:
Nepal is a country bewteen India and China, two fastest growing econonies globally.


2. Power Sufficiency:
Nepal is power rich (hydropower potential is more than enough for any future growth in economy).


3. Pleasent Climate:
Nepal has one of the best climate on the world. The valley cities of Kathmandu, Pokhara, Surkhet and Dang are the front runners for this. Eastern city Dharan and western city Butwal are other places with comfortably moderate climate in the likes of Indian Silicon Valley, Bangalore.


4. Untapped Qualified Manpower:
Nepal has very high unemployed and poorly employed qualified manpower. In terms of salary, the best man power can be got with almost half the amount in India and China. Nepal produces around 10 thousand qualified Engineers and other IT Graduates annually, and due to the lack of opportunity in Nepal most candidates make their way to US, UK, India and Australlia. These candidates can be tapped by the early movers.


5. Extravagant Public:
Nepal is a economy run by remittances. Nepal has poor government (comes in LDC) but the people doesnot seem to be poor. From Pajero to Mercedes, all vehicles are quite common in Nepalese roads. The public of Nepal are so fun loving and extravagent that it has one of the best developed liquor industry.


6. Easy Capital:
Almost all the IPOs have been oversubscribed in Nepal by more than 100 times for last 5 years. It itself justifies the ready cash for the companies looking for expansion. Also, the corporate loan is available at the annual interest rate of 4-5 percent while it cost more than 10 in India. The banks in Nepal are facing excess liquidity while their Indian counterparts are struggling for getting each extra cash as deposit.


7. Hospitable Public:
Nepalese people are regarded as the most hospitable public globally. Due to the emergence as a tourist destination for many decades, the people are Nepal welcome everyone who enter their homeland. They give more love than they charge for the service, the tourist say so. May be you can test it yourself, if you get some leisure before planning next investment project.


8. Everything to enjoy:
Rafting in rivers, boating in lakes, mountaineering in the Himalayas, visiting Buddha's birth place Lumbini or Sita's birth palce Janakpur, having a Helicopter sight-seeing of the Mount Everest, tracking to the Jungles in the National Parks etc., all these are available in Nepal and all these with in a few hundred kilometers. Nepal can just be the home for Nature Lovers to Religion and Culture Scholars.


9. Cheap and Quality High Class Hotels:

Hotels are pretty cheap in Nepal and they have all the facilities that anyone in the World has. From Casino to quality Pubs, from well facilitated rooms to good view, smimming pools to the Billiard boards etc. everything is available in much cheaper rates, thanks to low maintenance cost. The Hotel insiders say they don't have to spend on Air Conditioning (its naturally cool). The occupancy rate is low in Nepal (due to earlier political tension) and the competition is intense, which has too contributed to lower cost.

10. Lower Interest Rate and Flexible Capital Flight Norms:

Nepal has lower tax than China or India, and Nepal government has declared to make the capital flight easier for both National and International companies. This is in discussion in the council of ministry and it is likely to pass soon.

All these calls for the companies to go and invest in Nepal. If they miss, I can only be sorry later.

Some Business Opportunities in Nepal

1. Tea export to Pakistan

Pakistan, one of our closest neighbors is second largest importer of tea (after US) and there is no active tea trade between India and Pakistan. Currently Pakistan imports Tea from China and Kenya. There leaves a room for Nepal to export Tea to Pakistan.

2. Export of Nepali Forest Product to India, China and rest of the world

Bhutan has made good progress in exporting forest products like paper and furniture to two of our giant neighbors. Nepal with huge forest and varied vegetation can tap this opportunity.

3. Back-office Pharmaceutical Production

Indian Pharmaceutical companies are doing too well in the Global Pharmaceutical Market especially in generic segment. There are very few reasons why Nepali companies cannot tap that market. Also, many global giants are focusing more on brand management and marketing outsourcing the production. Nepal, a country between India and China is an ideal production base for multinational targeting these two countries.

4. Business Process Outsourcing from US, EU, ASEAN, India

India is now the most preferred outsourcing destination for most MNCs, but the market is maturing due to the shortage of qualified manpower and high salary rise. This brings Nepal into the outsourcing picture in supplementing India.

5. Travel and Tourism

A country with varied vegetation having as much as 8 National Parks, 6 Forest Reserves, 2 Conservation Area and 1 hunting area is clearly one of the best green tourism destination in the world. To add to it, there are many holy hindu and Buddhist sites like Pashupati Nath, Janaki Temple, Swayambhu, Lumbini etc. Not to forget is Himalayas with Mount Everest.

6. Hotel and Hospitality, and Real Estate

The tourism potential explains the importance and potential of hotel and hospitality, and real estate sector of Nepal. Nepal is sure to become a good economy in the years ahead as a fine tourism destination and a market place with the likes of Mauritius, Switzerland, and Singapore.

7. Financial Institution (IB, Venture Capital, Mutual funds etc)

Retail Banking has survived very hard times in Nepal. Even when many companies were dying, these banks stood strong with the constant liquid flow into the economy in the form of remittances. Now, the market is poised to grow to other types of FIs like Investment Banking, Venture Capital, and Mutual fund.

8. Infrastructure (Power and Transportation)

Nepal has second largest potential for Hydropower after Brazil and both of the neighbors (India and China) are hungry for energy. So, there are the resources and there is the market. It is just about tapping it at the earliest and benefiting that is in waiting.

Also, Nepal has very weak transportation system. It will need private investment in both traditional ways like Road, Railway and Airport, as well as non-traditional ways like Rope ways. Nepal can be one of the biggest market for Rope Way Companies.

9. Apple export

Nepal produces on of the best quality Apple (in Humla and Jumla). They are searching market for centuries and now is the time when world should get chance to taste those sweet apples.

10. Healthcare

Sri Lanka has done much in the field of Ayurveda and now Kerala is following it. Nepal has the cold climate and the herbs. It is the market awaiting investment. Also, there is huge opportunity in other forms of Healthcare services Nepal can provide to the world in far more competitive price than Philippines or India.

Vision Developed Nepal 2025

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

Investment in Nepal

Nepal is a country between india and china, the fastest growing economies of the world. It is having free trade with india and is planning to have same with china also. Along with these oppertunities Nepal has a large pool of qualified engineers and technicians along with good numbers of management graduates ready to work for fairly low cost.
Nepal is the second richest country in terms of water resources and it has eight out of ten highest mountain peaks in the world. Nepal is the birth place of Gautam Buddha. These facts shows the tourist destination potential of Nepal. Nepal has many large and small deposits of different minerals. The market is available in the form of china and india also the internal market is not small as nepal has a population of about 25 million.
Nepal government has now set the prime goal of developing Nepal as a transit between India and China. For that a commitee is formed to study all necessary ways in which Nepal can benefit. By this Nepal will not only be gaining revenue in terms of transit fees for the movement of goods between india and chinese but also improving ground for the tourism development where it have the highest potential. Nepal can also go for building large hydroelectric projects which will not only solve the energy crises in the country but also gain huge revenue by selling power to India where by 2010 the energy crises is going to be very high.
Nepal inspite of internal violence is having a GDP growth rate of about 3.5 percent which is an optimistic statistics. Any Individual or Company must try to get the full benefit by investing in nepal now when the market is not very competitive and get use to with the business model of producing in nepal for the combined markets of India and China.

Thank you Shree Panch Gyanendra.

Nepal govt. has taken steps to develop nepal as a transit between India and Nepal which is similar to what Switzerland had done long back becoming transit between France and Germany. Nepal now has a direction and a vision for economic development.

From Prithvi Narayan Shah to Sher Bahadur all has political visions, but all lacked economic vision for the country. This is what our country always lacked.

Nepal has also forwarded a proposal for the entry of China in SAARC as an observer adn it has been granted. Now our economy is going to be multilateral from the traditional unilateral (india oriented) one.

Gyanendra starts a new era for Nepalis ..... I whole heartedly support Our king.

Good luck Shree Panch Gyanendra and good luck to we all nepalis.