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)

About Nepal - By Basanta, Dhankuta (Presently studying Engineering in India)

gud to hear a young and energetic person writing such book for which nobody in Nepal is interested, at least not the young generation. They think themselves to be very good but giv all these things a fuck. I just mean to point the ppl who r really worrying abt themselves rather than all. The ppl always know how to comment the things tat are not available in Nepal and make themselves suffer more with their inferiority complex.They always think that we hav nothing in our country so we are hopeless to do things.

But ther are some persons who are really worried abt the country and its develpment. I can be that much sure that given the chance there are many people who can work and serve for the country from their side. And all these ppl whom I am talking about donot care for the political calculations i.e. they donot like all the political games and donot want to get themselves involved in this.

Anyway its very easy to blame others and think self as a superior over others. Its also easy to think self to be known about everything at least more than the others. These all human nature that nobody can control is ruining ourselves.

Anyway I hate the commenting job and til now I am doing same in this message. Sorry for me. Comenting on others is easy. And lastly I would like to comment some of the Nepalis born instincts that is present all over and that is ruining the Nepali population.

1. The Jealousy over otheres ... aafu pani kehi nagarne ra aaru le kehi gareko pani dekhi na sahane.. ra kasaile kehi garna khojyo bhane uuslai tyo kura garna discourage garne .. aanek dar dekhaune or . ... kaam suru garnu bhanda aagai nai hatotsahi banaune... this is the major instinct ruining us.

2. Afraid of taking risks and doing difficult jobs.... Nepali haru sadhai garo kaam ta garirahanchan tara aaafno lagi hoina aaru kai lagi .. ra Nepali haru lai kaam garna khojda sajilo kaam nai chainchha .... for example .. SLC pass gare pacchi sabai lai sarkari or others nokari chainchha .... kunai aaru kaam garda laj hunchha re ... sathai garo pani hunchha re .... aani aarko kura Nepali haru kunai naya kaam suru garna darauchan ... kina ki tyo risk line aat chhaina ra ... kaam garnu bhanda aagadi nai khutta jhigkne prabati dherai chha ... the corrruption is emerged jobs because they want money without working and that too very easily..

3. Expecting the returns fast... Nepali haru le kunai kaam suru gare bhane tyesko pratifal chhadai nai chhain chha .. yedi bhayena bhane .... tyo kaam chodera aarko kaam thali halchan...

Ok .. this much I could write today ... I hated myself doing this .. But I did this to say u that include some topics in your book to make the readers feel(esp. Nepali) that what attitude of theirs is making Nepal lay behind(besides politics) and the attitude of the people is also important for a good and developed country not only the economic boon. Even though if the boon comes that may not last to a longer term.

About Nepal - By Fernando, Brazil

It´s a plesure to me make friends in Nepal.

I´ve been in Nepal some yars ago, I loved the country, culture, food, music and mainly the people. You are very kindly, friendly and spiritualized (at least a few).

I´m worried about polical news, but I hope Nepal can survive this as it´s doing through thousands years.

I also hope return there next year.

Best regards,

Fernando Aquino



Namascar

About Nepal - By Cedric, Germany

I am not an expert on Nepal, although I follow what is going on there in the international press.

I must say that I clearly oppose the monarchy and I support the revolution, although I do not approve of all the methods the Maoists employ.



Cheers



Cédric

About Nepal - By Stefen, Switzerland

I have been to India and - geographically speaking - quite close to Nepal, as I
was in Manali and I imagine that external and cultural conditions might
be somewhat similar. But outside of some general information, I don't
have enough personal knowledge about the exact situation in your country
for an informed opinion.

There are some general ideas that are universally true. Communism will
always lead to mayhem and poverty. An autocratic regime is likely to
stifle development in the interest of conserving power, except if the
leader happens to be one of the very few enlightened men who are willing
to give their subjects freedom, using force only to preserve peace and
the rights of the citizens.

The most brilliant advice to leaders was given by Lao Tzu, the founder
of the philosophy of Tao. You might want to include some of his quotes
in your book. A Taoist king might be better than a democracy, which
doesn't respect individual rights.

Since your royalty doesn't seem to take their inspiration from Taoism, I
have little hope that they are good rulers. I heard that there are many
government backed monopolies in Nepal, which are granted to a few chosen
individuals and families, who gain immense wealth and power. I doubt
that they would be much in favor of opening their country and their
markets...

I wouldn't mind visiting your country one day and studying its
conditions with you, but I'm afraid that won't be possible in the
immediate future. There is a slight possibility that I'll be at a
conference in Mongolia next summer, cf. www.isil.org, but the venue
hasn't been decided yet. Participating in such a conference might be of
great interest to you, as you would meet people from all over the world
and very different backgrounds there. It so happens that the prime
minister of Mongolia wanted to attend previously, hence the invitation
to his country. A previous sponsor was Otto Guevara from Costa Rica, who
is now the most hopeful presidential candidate for next year's election.

This should just underline that ideas matter and by advocating positive
ideas consistently, one can represent a force for change, so by all
means do publish your book!

If you have specific questions, don't hesitate to contact me again. I
would also suggest that you should contact Center for Civil Society
India, www.ccsindia.org, as they are much closer to you. I'm sure they
will be willing and able to help you. They already publish many books
themselves. Several members are already good friends of mine. I very
much enjoyed their company and their energy and courage to speak up.

Regards,


Stefan

About Nepal - By Praveen, Kerala, India

Hi Bhupendra, I have kept it pretty simple and brief considering my time constraints. I hope it has some value.

The first thing that comes to my mind about Nepal is the warm, friendly nature of the people. Nepalis can be found in just about every corner of India and their nature is all for you to see. Unlike people from a few other neighbouring nations(which I wouldn't like to name here), the Nepalis have integrated into society and have not de-stabilized the local society.

The second thing is the culture, very similar and closely linked with the ancient civilization of Bharat(India). No wonder just about every Indian would readily ask why Nepal is not a part of India. In midst of all the pseudo-secularism and minority appeasement policies in India, it is refreshing to see a nation openly declaring their nation as a Hindu state and keeping its secular credentials intact. India can learn from Nepal in this regard by stopping vote bank politics and recognizing the glorious past.

The third thing is the land-locked, mountaineous terrain of the nation. Majority of the tallest peaks on the planet come from this part of the world. It is also a strategic location between India and China, two of the world's future superpowers.

Nepal has a similar road like most SAARC nations as it belongs to the LDC (Less developed nations) club. Nepal can follow the India path in opening up the economy steadily to foreign players and at the same time encouraging competition among the domestic players which together would help in large-scale employment and improving the quality of products/goods and the lives of people.

Nepal can take multilateral trade paths via USA, China, EU etc. But, the most important trade partner will always be India for the foreseeable future. SAFTA and the SAARC Economic Union would help the entire SAARC region, which means Nepal too would benefit. Sure, India will gain a lot from the SAARC Union, considering its size. However, taking a long-term view, it is in the interests of SAARC nations and Nepal to be stronger economically so that the world doesn't look at this part of the world as just people with a begging bowl.

I think India should enhance its military co-operation with Nepal despite the recent fallout vis-a-vis the King seizing the power. Despite democracy being mandatory, it was a blatant error by India's foreign minister(at that time) to sideline Nepal and threatening India's own national security in the process. This has invited China to supply arms equipment to Nepal. China has already used Pakistan and Bangladesh to de-stabilize the South Asian region. It would be a nightmare to see Nepal being used as a football by China and inviting wrath from India. Also, the Maoist insurgency in Nepal is also a major concern as the naxalites in India have a close nexus with their counterparts in Nepal. Both of them linking up even more would de-stabilize both the nations.

For a developed Nepal to be a reality, it has to get its basics in place. It should invest more in education, health care, infrastructure like roads, communication etc. It should encourage more trade with India and SAARC and get benefit from the rapid growth in the Indian economy. It should not sideline its traditional sectors like agriculture in this process and can work with India considering its experience in large-scale rural schemes. The main focus area should be eco-tourism considering Nepal's Himalayan terrain and its culture. For that, there should be political stability and better economic climate. The King's role should only be ceremonial like in UK or in some states of India. He should not interfere in politics no matter what the situation is.

Finally, on a personal note I would like to say that I belong to the Nair caste, common in the southern Indian state of Kerala. Nairs are not indigenous to Kerala and are claimed to be early descendants of the Newars of Nepal, who were then part of the larger Kshatriya community of Bharat. The style of pagoda-like temple architecture and house construction (Tharavaadus) of Nairs are almost identical with the Newar style of temples and houses found all along the valleys of Kulu and Nepal. In the mode of inheritance, the Newars are like the Nairs. There is the Marumakkathaayam system of inheritance, which is a matrilineal system.

This is just another indicator of the shared ancient civilization of Bharat.