State's Role In Development
Pursue Middle Course

By Mukti Rijal

THE role of state in development has been debated and scrutinised rigorously especially after 1990. A debate of this kind had picked up in the United States of America especially during 1930s when the great depression caused a big downturn in the economy. The crisis faced by the US economy showed that the state has an important role in economic development and in time of crisis it is the only agency that is looked upon as the deliverer.

Rationale

The acievements of the then Soviet Union through centralised state planning further boosted the rationale of the state's overarching role in development. A publication issued during the time of Soviet Union says "The socialist economy is based on public ownership of the means of production which emerged when private ownership of the means of production was abolished that bourgeois property was nationalised. This results from the very essence of the socialist revolution for only the elimination of private ownership and transformation of the land, factories, plants, banks, railways and so on into national property can put an end to the domination of the bourgeoisie." In the same publication the Communinist Manifesto authored by Karl Marx and Federick Engels is quoted as "after seizing power the proletariat will use its political supremacy to wrest, by decrees, all capital from the bourgeoise, to centralise all instruments of production in the hands of the state that is of the proletariat organised as the ruling class; and to increase the total of productive forces as rapidly as possible."

However, the centralised Soviet model despite its astounding gains during the initial years failed invariably to deliver by providing incentives and stimulants for economic growth and development. In regard to why the Soviet economic system failed Jon Kenneth Galbraith- the renowned economist says in an interview published in the IMF publication called Finance and Development (Dec 1999) "I donot see much of a parallel between what happened in the former Soviet Union and what is needed in the United States. People in the Soviet Union discovered that, beyond a certain level of economic development, people want to have a share in their government, want freedom of expression and other liberties associated with well being. That was what brought the end of the Soviet Union".

No matter the problems and drawbacks of the Soviet Model of economic development, its influence and impact was substantial and far reaching during the era of cold war when the world was divided into two ideological camps the socialist and the capitalist camp. The newly liberated countries from the colonial rule in Asia and Africa tended to follow the Soviet model and set up huge government operational systems. This state led centralised development perspective did have its impact in South Asia as well. India chose the Soviet model and created a huge state sector in manufacturing and service sector. Nepal during mid sixties and seventies established state owned enterprises pledging to institute and stabilise mixed economy. This state that plays domineering role in development is called as the public interest state. In this model, state is considered capable of defining the common interests of the people.

The government agencies should formulate policies and plans and use the power of the state to further those interests. The state is perceived as the one institution that may comprehensively plan all aspects of development and implement those plans through its machinery, carrying out operations from the centralised level and assuming all types of executive functions.

However, this view of the state has been challenged or even replaced by the concept of private interest state. Today, especially after the changes of the early nineties the concept of the private state has found greater recognition. Even the radical Marxist states like North Korea and Cuba have started to give concessions to private sector economies.

The growing relevance of the concept of democratisation, decentralisation, privatisation and deregulation have given new boost to the view of private interest state. The private interest state view is premised on the fact that the state is not capable of objectively defining the public interest and politicians and bureaucrats will act primarily in their own interest.

The neo-liberal theorists, therefore plead for curtailing down the state role in development through privatisation of public sevices and functions. However, handing over core state functions to private sector may lead to another extreme as has been the case in some countries, like the Unites States of America. Following the event of September 11, 2001 the United States has been forced to take over the services hitherto handled by the private agencies.

Middle Course

In Nepal, after the restoration of multiparty democracy in 1990 we have changed our philosophy of development and gave more emphasis on private state view. However, given the poor performance of privatised public sector entities and weak market structures it is high time we revisited our approach and pursue the middle course of development giving market and state equal space for development.

Corruption Control: Perpetuation Needed

By Hum Lal Bhattarai

CORRUPTION, which is pervasive throughout our nation, has impaired honesty and debilitated the elements of social upliftment. Besides, the spirit of good governance and process of economic prosperity have also been adversely affected by this chronic disease. Not only in outward behaviour, but also in our internal instinct, it is getting ingrained.

Alarming

In such an alarming state, the voices against corruption have increasingly been raised from national to international level. Nationally, civil society and intellectual circles seem much concerned about the consequences of rampant corruption. They have frequently urged the government and related institutions to launch efficacious and stern actions against it. Similarly, members of donor community like World Bank, Nepal Development Forum have aired their grievances as well as warnings regarding the mobilisation of aid. Their concern is that, if the aberrations seen in this field are not done away with the targeted goals through their assistance cannot be achieved to the desired level. A recent survey has shown that only 25 per cent of the foreign aid goes to support the actual development works.

Genuine and blotless state administration is a sine qua no for the multifarious development of a nation through which only transparency, commitment and accountability can be derived. But as for our nation, the whole mechanism for running the administration has been tarnished with the disgrace of corruption and has sparked off a kind of shame for the nation.

It is in this humiliating state of affairs that the Commission for the Investigation of Abuse of Authority (CIAA) has commenced long awaited tough and plucky actions to dishearten corruption. The campaign of this constitutional body has widely been lauded and admired, with the expectation that the nation quelled through the heavy treads of corruption may get a chance to have a sigh of relief. Of course, it is a sort of somewhat soothing ointment on the paining hurt of the nation.

In addition to the voicing of praise and exuberance, what the people have desired is that the CIAA should move ahead fearlessly vanquishing the set backs seen on way. Another popular desire is that its actions should be expanded to the sphere of political leaders also, which is perhaps the most sought measure, Enabling this body as an omnipotent entity in the sphere of anti-corruption war will certainly help satisfy these genuine longings.

In the past, the ambit of jurisdiction of CIAA was perceived rather narrow, that is why almost all the actions of the Commission could not yield satisfactory output. But owing to the execution of Corruption Control Act, 2059 and CIAA (Second Amendment) Act, 2059 and establishment of Special Tribunal, such situation has ameliorated considerably. The authority of these should be exercised in such a way that there would remain no stone untouched to chastise corrupt tendency.

The present steps taken by the Commission signifies that its future attempt to stem corruption will also be widely backed by the people, which is the quintessence for success. This compels the government to provide continuous support to this body.

The intense need of the present is to wage physical and psychological battle against corruption. Physical war can be fought more easily than the latter type in that internally rooted perverted tendencies can be wiped off only through incessant and powerful efforts backed by determination.
Short of it, the movement may come across a great debacle, which will create very bitter consequences, and people may tend to perceive whether corruption in invincible.

Combat

Continuous attempt to weed out corruption will obviously boost to consolidate the norms of social justice and to accelerate the rate of our national development. Rectification of our deformed mentality and perceptions will be its another wholesome advantage. So, the CIAA should keep on combating corruption cashing in justifiably on the rapturous applause of the public and being in line with the demand of the present.

Positive Thinking

By Shanker Agrawal

JAMES Allen once said "dream lofty dreams and as you dream, so shall you become. Your vision is the promise of what you shall one day be. Your ideal is the prophecy of what you shall at last unveil. Your circumstances may be uncongenial, but they shall not remain so if you perceive an ideal & strive to reach it."

Some people refer to your hidden abilities as Mind Power. Others call it Spiritual Power while a number of people will tell you it's the Power of your Subconscious Mind - or the Power of Positive Thinking. The truth is - it's all of them.

Lets talk a little bit of what positive thinking is and how far we have progressed on this aspect. Tomorrow we are all going out into the world where most of the time just the opposite of what we desire occurs and depression seeps into us. Positive thinking is the thinking always in the affirmative.
It is the lamps that burns in the most awful storms and gives you faith. The Dhammapada rightly said, "all that we are is a result of what we have thought".

You have abilities and powers that you're not even aware of. You were born with these powers - but you have never learned how to master them. Instead you go through life trying different things and hoping for the best - but never really getting the most out of your own powers.

Doctors and scientists now firmly believe that 75 per cent of all sickness and disease start in the mind. Researchers have also proven that stress, which starts in the mind, is the number one cause of all fatigue and illness. Scientists have also proven that we only use 10 per cent of our mind. The rest is never used properly. That means 10 per cent of our mind is causing 75 per cent of all sickness - and we don't even know how to use that 10 per cent properly.

Imagine what would happen if we use our mind to it's fullest? We would stop getting sick and live healthier, more productive lives.

Researchers have also proven that the people who have a healthy and positive attitude - or incorporate positive thinking - live better lives. Why? Because they know how to use the power of their mind. Unfortunately, most people never get their mind working for them. Instead, they get their mind to work against them - creating things they don't want.

Your mind creates everything in your life. Only you don't know how to do this properly. Positive thinking teaches you how to get your mind working for you so you create the things you want in life.
Let's take a simple example, just suppose you have to go to Delhi from Kathmandu. First we decide the mode of travel, make relevant arrangement then we assume that things will go fine and we will reach the destination safely. If we are assailed by doubts: will the train derail? Plane crash? We might get bogged down at the start itself.

Thus, in real life too we must not think always of the obstacles because they are always present. It is rightly said, "Never venture, never win" and "Fortune favours the brave"

For success burn the bridges behind you so that there is no looking back. A prime necessity for the success in any walk of life is common sense. Whatever one sets out to do, assuming it is worth doing, should be done in the firm belief that one will succeed.

"God helps those who help themselves" are not empty words but facts that have been tested. Hardworking is also vital as one cannot think positively of passing an examination after handing over the blank paper.

Napoleon Bonaparte once said, "The truest wisdom in general, is a resolute determination."

Indecision, uncertainty and lack of faith in our competence are fatal weaknesses. So every step in our life should be planned carefully and taken with supreme confidence.