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Boost Economic Optimism First
Even one month after the restoration of the House of Representatives following the success of the popular movement that started on April 6, the country's economic activities are yet to normalise though tourist arrival is picking up following the declaration of ceasefire by both the insurgents and the government.
For people who joined the seven-party alliance to make their movement successful, it was economic rather than political reasons. During the early days of the King's direct rule, people were not joining the street demonstrations of the parties as the people were still giving the King some time to deliver on his promise. But when it was evident that the royal regime was further destroying the economy by not helping in restoring peace in any way, the people sided with the political parties. The 12-point understanding reached between the Maoists and the seven-party alliance helped to boost the peoples' hope that peace would be restored if they sided with the parties and not with the King.
Therefore, the present government, with or without the involvement of the Maoists, will tumble as miserably as the royal regime did if it fails to help bring the economy back on track and providing it the necessary boost. The indicators so far are, unfortunately, not satisfactory. The recently-held first round of peace talks has passed the code of conduct promising an end to the era of the strikes, extortion and disturbances. However, as the ceasefire is now for only two months, the business community is not able to come up with long-term plans.
In this situation, the government should announce a programme that would convince people that the new dispensation is moving towards a direction of fulfilling the people's aspirations. It's true that economic recovery cannot be achieved in a short period of time but expression of sincere intent towards such recovery can be made. So far the state of the economy report is out, a meeting is held with the donors and some sops are announced to the business community as promised during the movement by the alliance. These are not enough.
First, the Maoists should be made to announce a permanent ceasefire. They should be provided a grant if need be to feed their army. Some businessmen have even said that they would be ready to pay 1 or 2 per cent more as taxes to finance part of such a donation if there is assurance that it will stop further disturbances. Second, the donors should be convinced to make a clear announcement that they would be providing the necessary support to immediately resume work in the Melamchi, Mid-Marsyangdi and other big infrastructure projects. Such projects create a lot of job opportunities to the people on the one hand and create a market for not only construction material industries but also to the producers of other consumables. Third, a mechanism should be created and made effective to use the budget set aside for local development authorities to carry out works of people's participation. And fourth, distinct steps should be taken to beef up security.
To start with, these steps would instill a positive optimism in the minds of the people and the business. What is needed urgently at present is such a psychological therapy, though a lot more is needed to be done after these.
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