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Rapid Economic Growth For Nepal: What Would It Take

   http://www.geocities.com/paramendra/2002 07-Oct-02 paramendra
     I am in favor of empowering people throu 07-Oct-02 SIWALIK
       Nice article! Few comments. 1.We are 07-Oct-02 Aludai
         <i>(If you don't mind, I'd like to repos 08-Oct-02 paramendra
           (The format is still messed up, but I am 08-Oct-02 paramendra
             <a href="http://news.bbc.co.uk/1/hi/busi 08-Oct-02 paramendra
               I am of the opinion that there are two f 08-Oct-02 Sangey
                 Sangey. I agree. But please be more spec 08-Oct-02 paramendra
                   What is this a class ? Describe current 08-Oct-02 Paani
                     I thought paramendra was not going to po 08-Oct-02 Jhinga
                       Guys do not pay attention to this guy. H 08-Oct-02 Bitchpatroll
                         Hi, 'Work ethic' and availability of wo 08-Oct-02 Aludai
                           why are you guys always giving him a har 08-Oct-02 Tundikhel
                             Do his business ? What kind of business 08-Oct-02 Chaakman
                               Yeah right TALKING OUT OF HIS ASS BUSINE 08-Oct-02 Bitchpatroll
                                 So let him talk. he is not bothering you 08-Oct-02 Tundikhel
                                   Sick of hearing him yap. And thats all h 08-Oct-02 Bitchpatroll
                                     In other words he is using this platform 08-Oct-02 Bitchpatroll


Username Post
paramendra Posted on 07-Oct-02 01:48 PM

http://www.geocities.com/paramendra/2002/nepal3.html



Rapid Economic Growth For Nepal: What Would It Take by Paramendra Bhagat



Rapid Economic Growth For Nepal: What Would It Take

Paramendra Bhagat

October 7, 2002

See who's visiting this page.



What would it take? This is a topic I have visited often from different angles. And I expect my interest to remain.



One, my personal history of having grown up in the country, where my parents, my brother and sisters live, and the emotional attachment that will forever remain. Two, my predilection for active politics. I dabbled in politics with the likes of Hridayesh Tripathy before coming to the United States to attend college. I became my college's student body president at the end of my freshman year, a record. I read everything on Bill Clinton I can get hold of. I have broached the possibility of some day running for Congress, although, for now, I just want to be able to write full-time; the possibilities of going into software or law remain. I keep up with the news on Nepal - the internet makes it oh so easy - and have become a regular at Sajha.com. I am a news junkie in general anyway. Three, as a student of politics and economics, the second poorest country comes across as a human laboratory of interest, for there are many countries similarly struggling. Heck, there even might be messages for the poor pockets in the rich countries if we ponder hard enough. Four, with an ingrained disposition to counter tendencies against racism I don't envision a future where the West will always remain the rich island in the ocean of poverty that is the Global South. The Global South's path to wealth does not, can not, will not have to be imitations of where the West has already been, but new headways as intellectually stimulating as any. Someday perhaps many parts of the South will hopefully have overtaken the West. Why not?



My limited academic training in the intricacies of economic theory might hinder me in getting specific with the details, but my broad suggestions ought to appeal. More important, I am willing to give it a try and put forth my views for a broad, ongoing discussion. And my political background and instincts should compensate for and otherwise guide what I have to say. That probably puts me at a distinct advantage, for no matter what we might cook up in sharp company, ultimately those ideas have to be taken to the broad public, and implemented with their participation.



For Nepal, I see a three-pronged strategy:





  • Clean Up The Politics, Deepen The Democracy



    The anti-corruption drive has to go ahead full-fledged and it has to be institutionanlized. The recent legislation granting property rights for women was a good thing. Political parties have to be made to make their finances transparent, intra-party democracy institutionalized, by law, if possible. I am all for a referendum, and possibly turning the country into a republic: the monarchy is expensive business. That also might be the solution to the Maoist insurgency that has brought the country to a halt. The introduction of a federal form of government is a necessary precondition to genuine social justice for the many marginalized groups like the madhesis, the janajatis and the dalits. There can be no rapid economic growth in the absence of social justice.



    Political leadership can make all the difference. And so fair play is important, so the political leadership can emerge.



  • Commit To A Free Market Economy



    Profit-making is a good thing. The largest party is communist, the two Congresses are socialist. That prevents the emergence of a culture that is gungho about the market in action. I say this with the spirit that both Ralph Nader and John McCain make a lot of sense to me. Large corporations too are anti-market for they have a tendency to distort free play. And democracy that swerves away from one person one vote through the play of money is distorted democracy as well.



    The trade regime has been unfair to the poor countries. I hold serious disagreements with the World Bank/IMF. Their actions over the past half century have been anti-democracy, anti-market.



    The market ought to prevail, in the country, and at the global level. Insitution-building is what both democracy and markets are about. They are not impromptu decisions to switch ideologies. Work has to be done, help sought from wherever it might be available.



  • Don't Try To Imitate The West



    The dominant thinking remains that Nepal is primarily an agricultural economy like the western countries were more than 100 years ago. And that it needs to catch up. That approach is self-defeating. The idea ought not be to imitate the West, if only because their version of industrialization has hurt the planet beyond recourse. And it does not make money sense to do what they did.



    Steer a novel course. Focus on the service sector to get people off the crowded paddy fields. A massive investment in education ought to make better sense than ensuring a deep grid of roadwork first.



    A massive investment in education and health is needed. A massive proliferation in primary and secondary and adult education programs so as to jack up the literacy rate from 40 to 95 percent within years. Have the private sector do the wealth creation. Let the government focus on what it ought to do: invest in human capital.



    An elitist information technology industry carefully nurtured might also lead the way in several ways.



I am aware my proposals are vague. But they give a specific enough framework so we can hold discussions. I look forward to them. I hope those with more specialized knowledge than mine will fill the gaps, and come up with specifics.




© 2002 Paramendra Bhagat



SIWALIK Posted on 07-Oct-02 04:19 PM

I am in favor of empowering people through district level governance--givimg them autonomy to chart their own development course. This might be beneficial in two ways: 1) fostering democratic practices at the grassroot level; 2) removing the concentration of power at the center could help check massive corruption, scandals, and developmental logjams.

1. Deepening democracy takes lot more than we think. Go to the grassroots.
2. Free market economy sounds grand, but not even the developed countries practice it in full.
3. We do not have to imitate the West. Among Europeans, Denmark did chart a different path.
Aludai Posted on 07-Oct-02 05:42 PM

Nice article! Few comments.

1.We are poor because of our work ethics and attitude.If we look at the recent history, it is the same people who have attained prosperity through hard work even after devastations of war several times.We want to be rich overnight.That's why we vote our corrupt leadres after a feast of raksi and masu.And our corrupt leaders become richer.
Socrates famously said' People get the government they deserve'.

2.This attitude is due to the flaw in our social values and education system. The rich are respected however they earn the money.He, who can present a car as a dowry in his daughter's marriage, is a great person.

3. Democracy does not necessarily mean prosperity.There are few examples of rich democratic countries. We can find poor democratic countries as well as rich countries served by dictators.

We need to bring about changes in the way people think, their attitude and approach.I don't think we will be a rich country by just changing a system as we have seen in the past.We will also have to go the hard way and learn to be self reliant. Our aid dependent economy makes us a beggar- how can a beggar prosper?

We need to learn to utilise our fantastic natural resources- that is the beauty of our country rather than worry about the resources we do not possess.I am not saying we follow a particular country, but Switzerland is one of the richest countries. It does not have oil or vast mineral resources.

We also need to be innovative and forward thinking; and encourage people already doing a good job.

I think= I can see us very slowly moving that way. But is the pace enough to catch up with the rest of the world?
paramendra Posted on 08-Oct-02 10:41 AM

(If you don't mind, I'd like to repost the article. The format got all skewed. I did not realize.)

http://www.geocities.com/paramendra/2002/nepal3.html

Rapid Economic Growth For Nepal: What Would It Take
Paramendra Bhagat
October 7, 2002
What would it take? This is a topic I have visited often from different angles. And I expect my interest to remain.

One, my personal history of having grown up in the country, where my parents, my brother and sisters live, and the emotional attachment that will forever remain. Two, my predilection for active politics. I dabbled in politics with the likes of Hridayesh Tripathy before coming to the United States to attend college. I became my college's student body president at the end of my freshman year, a record. I read everything on Bill Clinton I can get hold of. I have broached the possibility of some day running for Congress, although, for now, I just want to be able to write full-time; the possibilities of going into software or law remain. I keep up with the news on Nepal - the internet makes it oh so easy - and have become a regular at Sajha.com. I am a news junkie in general anyway. Three, as a student of politics and economics, the second poorest country comes across as a human laboratory of interest, for there are many countries similarly struggling. Heck, there even might be messages for the poor pockets in the rich countries if we ponder hard enough. Four, with an ingrained disposition to counter tendencies against racism I don't envision a future where the West will always remain the rich island in the ocean of poverty that is the Global South. The Global South's path to wealth does not, can not, will not have to be imitations of where the West has already been, but new headways as intellectually stimulating as any. Someday perhaps many parts of the South will hopefully have overtaken the West. Why not?

My limited academic training in the intricacies of economic theory might hinder me in getting specific with the details, but my broad suggestions ought to appeal. More important, I am willing to give it a try and put forth my views for a broad, ongoing discussion. And my political background and instincts should compensate for and otherwise guide what I have to say. That probably puts me at a distinct advantage, for no matter what we might cook up in sharp company, ultimately those ideas have to be taken to the broad public, and implemented with their participation.

For Nepal, I see a three-pronged strategy:

  • Clean Up The Politics, Deepen The Democracy


    The anti-corruption drive has to go ahead full-fledged and it has to be institutionanlized. The recent legislation granting property rights for women was a good thing. Political parties have to be made to make their finances transparent, intra-party democracy institutionalized, by law, if possible. I am all for a referendum, and possibly turning the country into a republic: the monarchy is expensive business. That also might be the solution to the Maoist insurgency that has brought the country to a halt. The introduction of a federal form of government is a necessary precondition to genuine social justice for the many marginalized groups like the madhesis, the janajatis and the dalits. There can be no rapid economic growth in the absence of social justice.


    Political leadership can make all the difference. And so fair play is important, so the political leadership can emerge.


  • Commit To A Free Market Economy


    Profit-making is a good thing. The largest party is communist, the two Congresses are socialist. That prevents the emergence of a culture that is gungho about the market in action. I say this with the spirit that both Ralph Nader and John McCain make a lot of sense to me. Large corporations too are anti-market for they have a tendency to distort free play. And democracy that swerves away from one person one vote through the play of money is distorted democracy as well.


    The trade regime has been unfair to the poor countries. I hold serious disagreements with the World Bank/IMF. Their actions over the past half century have been anti-democracy, anti-market.


    The market ought to prevail, in the country, and at the global level. Insitution-building is what both democracy and markets are about. They are not impromptu decisions to switch ideologies. Work has to be done, help sought from wherever it might be available.


  • Don't Try To Imitate The West


    The dominant thinking remains that Nepal is primarily an agricultural economy like the western countries were more than 100 years ago. And that it needs to catch up. That approach is self-defeating. The idea ought not be to imitate the West, if only because their version of industrialization has hurt the planet beyond recourse. And it does not make money sense to do what they did.


    Steer a novel course. Focus on the service sector to get people off the crowded paddy fields. A massive investment in education ought to make better sense than ensuring a deep grid of roadwork first.


    A massive investment in education and health is needed. A massive proliferation in primary and secondary and adult education programs so as to jack up the literacy rate from 40 to 95 percent within years. Have the private sector do the wealth creation. Let the government focus on what it ought to do: invest in human capital.


    An elitist information technology industry carefully nurtured might also lead the way in several ways.


I am aware my proposals are vague. But they give a specific enough framework so we can hold discussions. I look forward to them. I hope those with more specialized knowledge than mine will fill the gaps, and come up with specifics.
paramendra Posted on 08-Oct-02 10:48 AM

(The format is still messed up, but I am not going to try again.)

Siwalik:

Your idea of district level decentralization has not been tried yet. And I think, for the short term, that would be the least complicated option. As in, to introduce a federal form of government, you'd need constitutional amendments and the like.

I like your idea.

(2). I agree.

(3) Please elaborate on Denmark.

Aludai:

"....our work ethics and attitude...."

Those are symptoms, not the cause, I think. People don't have the opportunities to pour their "work ethic" into. Such a large segment of the population is underemployed. There is no work for them. Look how hard people try to go to other countries to seek greener pastures.

"....rich countries served by dictators. ..."

Name a few.

I don't know what you mean by "self-reliant." Trade is a good thing. That might be the best way out to prosperity.

Talk of aid. There is a net flow of money from the poor to the rich countries. It is the rich countries that have been getting aid!

You offer some other positive thoughts, though.
paramendra Posted on 08-Oct-02 11:09 AM

Nepal agrees hydro-electric deal

750 MW plant to start operation in 2008.

$ 0.86 billion investment.

Is that good news or what?
Sangey Posted on 08-Oct-02 11:52 AM

I am of the opinion that there are two fundamental must-have's that are necessary, along with others, for any macro-economic development. And they are:

- Property Rights
- Intellectual Rights

Currently, those safeguards are in place only in the letter of the law. In practice, it's more like "jusko sakti usko bhakti." So, unless those two fundamental rights are properly enforced, the economic development will be slow at best.

My humble dui gaida (because of the rampant inflation, anything less is too little these days).
paramendra Posted on 08-Oct-02 12:26 PM

Sangey. I agree. But please be more specific on two counts:

(1) Describe the current situation.
(2) Describe a roadmap to where you suggest things ought to go.
Paani Posted on 08-Oct-02 01:26 PM

What is this a class ? Describe current situation and roadmap ?
maybe you need to go take a class paramendra to better understand these things.
R u trying to steal other people's ideas ? I was reading other threads..you always seem to want others to do the work 4 u. why ?
Jhinga Posted on 08-Oct-02 01:35 PM

I thought paramendra was not going to post long articles again. So much for Just post the links. This looks like a paper for some class.

If you care about Nepal so much you should go back and help instead of siting in your room writing papers. There are a lot of people that can write papers but no one to do the job. Anyone can write as long as they have a pen and paper, but to act out what you wrote is the tougest par of the job. To put it in Idioms You should be able to walk the walk as much as you talk the talk. You gotta have the Kahuna's to do that ?

Do you have those Kahunas Paramendra ?
Bitchpatroll Posted on 08-Oct-02 01:50 PM

Guys do not pay attention to this guy. He is just full of himself. He want to be just like Girija when he grows up(a politician).
Aludai Posted on 08-Oct-02 01:52 PM

Hi,
'Work ethic' and availability of work are different issues.It is easy to say we are poor becuse we do not have enough work.Who creates the work? Even if you look at developed democracies, it is not the government who creates the work, though they can help by creating a suitable environment.Attitude towards work is not a symptom of poverty, but a cause of poverty.

When Japan and Germany were devasted at the end of second world war, they were not rich at that time.There employment rate was not great. I will leave it to you to think why they can become rich after such a devastation time and again while we remain poor all the time. True, it is not a single factor, but I believe our atitude is one of the problems.

As regards the prosperity, most countries (except probably USA) became prosperous and then reverted to democracy.A recent example is Singapore which prospered under a dictator. You can say China prospered a lot under an autucratic regime. Prosperity is a relative issue. If you compare China (autocratic) and India (democratic), the former have done better in terms of economy.I did not want to be dragged into this, but you do not need to be democratic to prosper.

Having said this, I still prefer democratic system because of different reasons(not economic).

Now, as regards aid, one can argue that it is one of the ways of redistributing wealth. Do you really believe it? Most countries' contribution to 'aid' is less than 2% of their GDP with a few exceptions.It is merely a way of helping a starving man survive.Unless we learn to be self reliant, we wil not prosper as a country.You have seen that in 12 years of massive 'aid supply' during our democracy.However, if we consider foreign aid as a supplement to our own effort, it's a different issue.The way it has happened so far, it does not look very promising unless there is radical rethinking in our conduct.

I am neither a politician nor an economist.These are my thoughts as an ordinary citizen of Nepal.I have not thought about any concrete programmes.I will leave this to wiser and more committed people.
Tundikhel Posted on 08-Oct-02 02:05 PM

why are you guys always giving him a hard time ? leave him alone and let him do his business.
Chaakman Posted on 08-Oct-02 02:09 PM

Do his business ? What kind of business ?
Bitchpatroll Posted on 08-Oct-02 02:12 PM

Yeah right TALKING OUT OF HIS ASS BUSINESS.
Does nothing but talk talk talk.
Tundikhel Posted on 08-Oct-02 03:08 PM

So let him talk. he is not bothering you.
Bitchpatroll Posted on 08-Oct-02 03:35 PM

Sick of hearing him yap. And thats all he does. He want YOUR input and participation in HIS ideas so that one day when he needs them he can make it his own when he needs them(when he becomes a politician). LIKE GIRIZA part II.
Bitchpatroll Posted on 08-Oct-02 03:37 PM

In other words he is using this platform for himself. He is even trying to generate traffic at his own site taping on to this one. Like a parasite sucking the life out of anything and everything he can get his tentacles on.