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VOL. 28, NO. 02, August 29 , 2008 (Bhadra 13 2065 B.S.)
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Suggestions to Nepal Government
Dr.Tilak Rawal
About four months after the successful holding of the historic constituent assembly polls, many important political developments, albeit belatedly and amidst controversy, have taken place. The historic first meeting of the CA on May 28, 2008 declared Nepal a republic, which was gracefully accepted by the monarch who is reported to be quietly spending time in Nagarjun, after securing permission from Nepal Government to stay there.. Despite being the largest party, the CPN Maoist failed to get their candidate, Ramraja Prasad Singh, elected as president basically because of their failure to garner support mainly from CPN UML, which along with MJF supported NC candidate, Rambaran Yadav.His election to this largely ceremonial post is the result of an alliance forged between the three parties, which accused the Maoists of betrayal and breach of trust: Maoists publicly voiced their opposition to G. P. Koirala becoming the president and also decided not to support Madhav Nepal of UML despite assurances of support, as expressed by UML stalwarts, till the end. This period also marked the end of a relationship that existed between Koirala and Parchand ever since the signing of the deal in Delhi.Koirala, who wanted to be the first head of state of the republic, had good reasons to be unhappy with the Maoist leadership and Maoists antagonism, it is said, stemmed from Koirala's reluctance to shed power in favor of the largest party in the assembly. A large majority of Maoists and others believe that Koirala's cooperation could have helped timely formation of a Maoist led consensus government and thus not requiring one more amendment to the often amended interim constitution that introduced majoritarian provision for the formation of government.
MJF got its candidate, Paramanand Jha, elected to the post of vice president.Mr.Jha's decision to take oath in Hindi created some confusion and unrest as the student wings of major political parties took to the streets in a violent fashion in protest of the act at several places in the country provoking counter protests by the youth wing of MJF in its strongholds. Good sense, however, prevailed in the leaders of major political parties who without wasting much time played a major role in bringing to a halt this episode of protest that was beginning to flare along racial lines.
As happens in politics here and elsewhere too, the political scenario began to change gradually in favor of the disappointed Maoists, after the electoral debacle for the two posts, when UML and MJF began to incline slowly towards them in matters of government formation under Maoists leadership. When efforts failed to rope in NC as a partner in the government, a new alliance between the three parties was formed to support Parchanda for the post of prime minister, brushing aside NC and its tantrums related to defense portfolio. Ending four months of political stalemate, the CA on August15, 2008 overwhelmingly elected Maoist chairman to the post of prime minister of this republic.Parchanda bagged some 80 percent of the votes cast, the rest going to NC leader Deuba who got votes of members belonging to his party and one independent member Babban Singh. Some eight days after Parchand took the oath in Nepali national language wearing business suit and a cap, the three parties in alliance announced their candidates for ministerial positions along with the conquered portfolios. However, only eight ministers, four each from Maoist and Forum, took the oath as UML decided to stay away at the last minute raising questions of hierarchy in government formation. The UML proposed candidates, neatly dressed in national costume, instead of proceeding to the president's office for the oath went to the party office for serious discussion.UML has made it clear that they will not join the government if their candidate,Bamdev Gautam,is not given second ranking, currently given to Baburam Bhattari,in the government. Maoists so far have shown generosity in the distribution of ministries, mainly to UML, and people would like to see the ranking issue resolved quietly after the return from Beijing of prime minister who is there to participate in the concluding ceremony of the Olympic Games. The beginning definitely has not been pleasant one.People rightfully want the government to begin paying serious attention to problems affecting their day to day life. Side by side with the new constitution drafting work, measures will have to be taken to bolster growth and provide relief mainly to the hard hit low income people.
Serious problems of economic nature are faced by countries all over the world. Rising inflation levels have been a problem that countries are fighting hard to contain. While high growth countries like China and India, facing the highest level of inflation in sixteen years at 12.44 percent, are fighting hard to check inflation even at the coast of economic growth, low growth economies such as US and Japan also have shown concerns to rising price levels. In fact, a stagflationary scenario, combination of low growth and rising prices, is emerging in these countries. In Nepal, authorities have the delicate task of simultaneously executing inflation taming and growth inducing policies that generally work in opposite direction. On the inflation side, frontal attack will have to be made on improving the supply of essential commodities and in regard to growth productive investment will have to be emphasized. The object should be to take growth to a double digit level and lower inflation to a single digit level from the current high of more than 13 percent. A ban on road blockages on lame excuses, abolition of syndicate system in the transportation sector mainly in the Far Western and Mid Western region and doing away with bands that interfere with economic activities are expected to go a long way in getting rid of supply bottlenecks thereby reducing the prices of items in question. A pragmatic blend of monetary and fiscal policy and its successful execution is the need of the hour.Rising fuel and commodity prices has attracted the attention of world bodies and resourceful countries that have pledged significant amount of assistance to help poor countries combat this problem. As usual and very justifiably conflict torn low income countries of Africa have begun to receive meaningful assistance. It may be mentioned that Sub-Sahara Africa has higher per capita income than South Asia of which Nepal is a conflict-devastated poor country probably with the lowest level of growth and the highest level of inflation in the region. With a proper level of well demonstrated honesty and integrity, there is no harm in receiving anything from fuel to food from bilateral and multilateral donors to ameliorate the deplorable condition of the people.
It is written and spoken umpteen times by many a people that Nepal has not been able to benefit from the remarkable growth of the two economies on our north and south.Nothwithstanding still weighty economic problems in India and China, they can meaningfully help us in different areas. In addition to seeking more grants and greater level of their participation in developing our infrastructures, efforts should be geared toward improving our trade (export) with these countries. Everyone should be clear that the existing composition of commodity export can not abridge the huge trade deficit of around Rs. 70\80 billion with India and ever increasing deficit with China. The idea, therefore, should be to diversify into production and export of non-conventional items such as hydro power to India and service, through tourism, to China. Whether we like it or not, we have to work in close cooperation with India in several fronts, the notable one being the water front. In harnessing water resources, the two nations will have to be extra careful in avoiding the recurrence of unpleasant situation such as the recent collapse of the Koshi embankment that resulted in loss of human lives and colossal loss of property
, including standing crops in both countries. The idea should be to learn from our past mistakes and move pragmatically without getting our selves indulged in trading accusations. That said, Nepalese would always expect both its huge neighbors to be generous and magnanimous in dealing with Nepal.The task before the government is Himalayan but a sincere effort on our part can ensure influx of resources at this point of time when the resourceful institutions and countries are willing to help us with their inputs provided there is an environment and capacity to absorb resources. Ministry of finance and Foreign Affairs should work hand in hand to mobilize resources needed for harnessing water resources, development of infrastructures, tourism and to enhance agricultural productivity. Let the new ministers be divided into two groups, group one concentrating more on political issues such as drafting of a new constitution and group two focusing more on resource mobilization for development, which should clearly spell policies and strategies to be adopted in the short, medium and long run-In the very short run, the new government is expected to improve the supply of a wide range of items such as fuel,foodgrains,drinking water electricity to tame supply side induced inflation that has inflicted serious injury on the day to day life of us Nepalese.
