Why Invest in Nepal Year 2012 ?

Editorial
Why Invest in Nepal Year 2012 ?

FROM ISSUE #585 (30 DEC 2011 - 05 JAN 2012) | TABLE OF CONTENTS

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BIKRAM RAI

There are a lot of things us Nepalis can be criticised for, but no one can fault us for not having good intentions. We mean well. We say we want democratic freedoms, we desperately want to rescue this country from grinding poverty, we have grandiose plans to exploit hydropower, and we moan and groan about corruption. But, as they say, the road to hell is paved with good intentions.

Take corruption. Perhaps at no other time in our history has this country seen mass malfeasance as has been unleashed by this Maoist-Madhesi coalition. In fact, to call it "corruption" would be a gross understatement. Corruption usually signifies petty graft, kickbacks, payoffs ten per cent here or ten per cent there. And there is still some shame involved in committing a crime.

But what is happening today is blatant daylight robbery of epic proportions. The treasury is being systematically ransacked, the party leading the coalition has been found to have looted billions for phantom guerrillas, Madhesi ministers have honed the notion of "pre-paid" bribes for appointments and transfers to a level of refinement and pervasiveness never seen before.

Secretaries who have dared to complain to the Chief Secretary have been threatened by ministers, and honest civil servants are thoroughly demoralised. Personal assistants of ministers wield more power than the secretaries. Health Secretary Sudha Sharma, known for her competence and integrity, couldn't stand it anymore and resigned on Tuesday. Her boss was caught red-handed bribing journalists. The Minister of Forests seems to think it is his job to log what is left of Nepal's forests. An overpowering stench of greed and rot hangs in the air. The prime minister admitted to editors recently that he knew this was going on, but that he was powerless because his Madhesi partners threatened to pull out of the coalition. That is a breathtaking admission of helplessness by a supposedly upright leader.

The impunity starts right at the top. There is no fear of reprisal for looting the public coffers, no fear of what others say, the shamelessness is astounding. In fact, incumbent ministers take stealing as part of the TOR and SOP of their jobs.

Nepalis expect so little from their kleptocrats that they have become thick-skinned about all this. But it is at the local level where the loot has become a question of life-or-death as money for health posts and medicines are pocketed. The all-party mechanism at the VDC and DDC level has now become a mechanism for plunder: the four main political parties just divide up contracts and the development budget and pocket it all.

A minor scuffle between two bus syndicates closed down Dolakha for five days this week in a district where four major hydropower projects are located. Doctors are still on strike in a foreign joint venture hospital in Pokhara, because doctors are sick of being physically assaulted by relatives every time a patient dies.

At a time like this, we are about to embark on Nepal Investment Year 2012-2013. The government has set up a one-window Nepal Investment Board with respected banker, Radhes Pant as its head (see interview, p4). We wish Pant well, but he has his work cut out. To convince foreign and domestic companies to want to invest money in Nepal at present will be a hard sell with militant labour, extortion, local opposition, arbitrary government policies, red tape, corruption, power cuts, bandas �and the list of woes goes on.

One investor in the service industry told us this week: "People tell me I must be mad to want to invest in Nepal. We got used to not having electricity, now there is no diesel. I have not seen more unruly workers." Hydropower, where the need for investment is most acute, is having to face extortion, strikes and violent local opposition. Nepal is now 7th from the bottom in terms of investment climate on an UNCTAD list of 141 countries.

Let's face it, foreign investors may not be particularly enthused by our prime minister sporting Mao Zedong's bust next to his sofa. Even the Chinese don't do that anymore.

And unless the politicians curb their insatiable self-destructive greed the coming year does not bode well for job creation, economic growth and stability.

Read also:
Soaring confidence

Bye-bye NTY, hello NIY, PAAVAN MATHEMA
Happy Nepal Investment Year 2012-13

One window for investors

Investing in the future, SIDDHANT RAJ PANDEY
Foreign direct investment is essential next year and beyond to boost economy and create jobs

1. Kali Prasad Nepal
Thank you for this information. So, every one who is anyone knows about the stinking corruption and immoral politicians BUT no one is doing anything. Instead we hear people talk about democracy ! Come on, who are you kidding. Nepal needs a DICTATOR. A man who is strong enough to bring the guilty to books, and punish them appropriately. Every one in the current leadership positions are criminals and they should be dealt as such. Is there not 1 honest man in Nepal who can stand up to these thugs. All Nepali leaders of government and business are thugs who only know how to steal ! Why cannot people rally around Sudha Sharma ! Where is the freaking civil society of Nepal. The only conclusion I have is that Nepal is truly a cursed nation. Cursed by the wife of Bhimsen Thapa ! No honest man or woman can prosper in Nepal. Nepal is a land of liars, cheats, gansters, killers and looters. This is why I am so ashamed to be a Nepali.

Posted on: 30 DEC 2011 | 7:11 PM NST

2. Vija Srestha

Enough is enough, this editorial is full of hypocrisy. Nepal has sufficient money to feed its people and invest in the nation. The only difference is that people who have millions think they don't have to feed the nation or that every thing they have earned is due to their education and good bizness handling; or having been born into former aristocratic families, gives them the right to dictate the lives of other Nepalis. It is these very elites who feel like investment worth millions are required otherwise their bizness will fail. But Nepalis who have less than 10 rupees in their pockets, can't even imagine all the topics this newspaper gives coverage to, including the so called "people's party",who started all this mess.

The biggest enemy Nepalis have, is their own people and I hope no one will invest in Nepal, because investments of the past and most likely investments of the future will be pocketed by high ranked officials in the INGO/NGO circles. Nepalis need to learn to live frugally within their own limits, but no they would rather depend on foreign assistance for the rest of their lives.

I am disgusted by all the articles that appear in this newspaper!

Posted on: 31 DEC 2011 | 2:54 PM NST

3. Lila Ghale
Vija Srestha, rather than ranting against all sorts of investment and promoting a "zero" investment policy, comment on how to improve the bleak investment prospects in our country. Also investment does not only mean foreign investments, domestic investment can also be equally encouraged in 2012/2013.

A good example where foreign and domestic investments were utilized very well is our neighbor Bangladesh. We think of BD as poorer and lesser developed than us (and yes they do have a wide range of other problems), but their financial sector is booming. Visit the country once to realize how far behind us Nepalis are.

Also if you have such a big problem with the publication, why do you keep coming back and wasting your precious time? Make better use of your time and start teaching Nepali didi bahinis and daju bhais how to make optimum use of the 10 rupees they have in their pockets.

Posted on: 31 DEC 2011 | 3:14 PM NST

4. Vija Srestha
Lila Ghale,
like I said, Nepalis are their own worst enemies and, you are a bright example of it,you only see money,not how to work for it with integrity and dignity.

Posted on: 31 DEC 2011 | 7:15 PM NST

5. Himal
It is a good article and we ought to pay heed to what is said in this article.

However, I do take an issue with you regarding Secretary Sudha Sharma's situation. The Health Ministry has gone further downhill during her term. The Ministry has become more and more donor dependent. In fact, the Ministry happily allowed the donor funded projects do the Ministry's work while it was doing the politics, transfers, promotions, tenders and foreign tours including participation in a donor funded workshop. With so much power in her hands, she just sat as a silent observer. We, common people, can groan and moan and complain and there is no system of redress in place. The Health Secretary should have come out and resigned much earlier when each Minister was using the Ministry like his own property and distributing favours to all his brethern, party people and afno manchhe.

I do hope that some day you will write the corruption practices that have been perpetuated within the Health Ministry, somewhat with the connivance of donors, like USAID, UNFPA, DFID, UNICEF, WHO and World Bank. The Health Ministry officials are interested only in a foreign tour, participation in a workshop where they get a daily allowance in addition to a good meal and drinks and a travel allowance.

This culture of TA (travel allowance) and DA (Daily allowance) to Ministry of Health officials are supported knowingly by the donors. The donors often complain about it and blame the Ministry but when it comes to allowing a foreign tour and TADA, the donors readily agree to it. Why in the world a donor funded projects must pay a Ministry staff and official TADA for doing their own work? I know Sudha Sharma did not create it but she happily enjoyed all of it and did nothing to stop it. A government Secretary must not complain and quit only when it is a safe landing time but who would look in the interest of the people? Do you call that competence and upright? NO.

Posted on: 31 DEC 2011 | 9:17 PM NST

6. DG
Leaders should stop hypocritical pretense at egalitarianism first and foremost. Stop amassing wealth in the name of prolitarians. Boost the morale of the elite civil and military officers then.; curtailing stifling bureaucracy.opposition should stop being xenophobic on free enterprise. Meritocracy is important and education must be of quality for transfer of technology which is an important clause in foreign investment. Administration must be free of corruption too. Our leaders must have strong convictions,high moral standards,to beat down corruption first and foremost.
Marxism, Leninism or Maoism ,or Stalinism has failed. Remove their photos from the wall of the offices . Have courage to do that. Learn from Deng Xio Ping,be able to convince your Old Guards about reforms.

Posted on: 01 JAN 2012 | 6:18 AM NST

7. Nirmal

For having called murderes, criminals, corrupt people as our saviour politicians we've arrived to this state of extreme deja-vu?! But where is that civil society and those very civil servants who made this "change" possible?! Don't they have enough evidence of it by now?! Or were those just their beautiful words for the sake of preaching the gospel printed in our ignorantly despotised newspapers?! Or still do you have your own ipse dixit for everything that's happening regarding the governance of democratic society?! Or do you still think that the hierarchy of this political class will change overnight when we know that the entire system from upto down stinks and it needs overall cleansing ?! Because of this never-ending transition the governing policies, the regulatory institutions, the public administration, the civil society etc altogether have contributed to this sort spoil system.

Posted on: 02 JAN 2012 | 7:43 AM NST

8. Tina
A Murderer , A Rapist, A Thief, A Looter, A Cheater, A Politician is proud to be called a Nepali coz this is Nepal. These people represent Nepal.

Ghus khane khus khairachha, lootne looti rachha and dukha paune janta dukha pai rachhan ..... Desh banaune mahan bhanauda neta haru desh lootirachan .. This is Nepal ... Your Nepal & My Nepal .

Posted on: 03 JAN 2012 | 3:35 PM NST

9. KiranL
Bit of an over-reaction, #2? If you don't like anything in Nepali Times there is a solution, start reading The Reporter or Spotlight.

Posted on: 03 JAN 2012 | 6:18 PM NST

10. Mohan Prasad Acharya

YES ! Definitely invest in Nepal. Nepal can be considered as a boom town ! Any one who is willing to invest in any business sector should reap huge profits. But, there is a big B U T ! Do I want to invest my money so the filthy politicians can get richer ! No way Jose ! Is there a friendly enviornment for me to invest my money, NO ! Baburam, inspite of a Ph D, you are an idiot, 16 hours or more of power cuts! And you as a PM is harping on F D I ! I will advise everyone NOT to invest in Nepal until the corruption is tackled head on. Nepalis, do you know of Anna ! He is fighting for a Lokpal and see how the corrupt Indians are fighting back ! We can have a Nepali Anna, we can have a Nepali Lokpal. But where is the will for that! Until then, I will not invest my money in Nepal. Can you blame me for that ?

Posted on: 03 JAN 2012 | 6:49 PM NST

11. Kale
Guess who gets all the contract these days for rebuilding the dismanted roads footpaths etc? The grape vine says no less a person than the boys of the first lady of the new republic, ComradeÂ� Madame Fifteen per cent. Her local gang-men.have to be rewarded on such occasions. At least if the contracts are awarded now ; they can be the benefitianary even after the term of the present incumbent when there is provision of budget.
By theÂ� way, guess ,who bought all the lands around the Bhairahawa airport recently from the absentee landlord ,as in Sunwal , NawalparasiÂ� in the past ?

Posted on: 05 JAN 2012 | 5:02 AM NST

12. Bhawani Ghimire
We, the people of Nepal are not very bright but down right STUPID ! Every day the dirty politicians, ( politics is a dirty business ), lie and cheat the people. And we just take it lying down. How did Prachnada and Deuba and Madhav Nepal become so wealthy on the meagre salary of Nepal's Govt. The time has now come for a Nepali Spring. One brave man in Tunis gave his life and the whole Arab world went into a nosedive. Just 1 Man. Mubarak is pretending to be sick and his General buddies are helping him. Mubarak looted and plundered Eygpt and one day the people said enough. Why cannot this uprising take place in Nepal. Why don't the people assert their God given rights and demand a better life, with a future for the children of Nepal. Every body knows that the Maoist are crooks. They killed innocent people and destroyed Nepal's infrastructure. We should kill the Maoist and also bomb their homes in the same manner. Its time for Nepal to really have a revolution by which we can get rid of the corrupt looters and murderers of Nepali people. Enough BS. How can we live with no water, no LPG, no electricity, no jobs, no future, but only Darkness surrounded by corruption. Its time to take matters in our own hands. Let the politicians of Nepal go and rot in Hell.

Posted on: 05 JAN 2012 | 6:20 PM NST

13. ushaft
Nice editorial.

Let's look at the nature of our economy. Carefully watch the nature of business you see on both sides of any road in Kathmandu. We are not production-oriented.

Most of our big business houses are just involved in "dealership" of foreign goods. Many strong businessmen in districts also do not produce anything, they just do "dealership." The other successful business is abroad employment or studies consultancies, tution centers and MBBS preparatory institutes. Media houses are also doing very well- look at the buildings, diversity of manpower, work environment and infrastructures at the top media houses in Kathmandu. Financial institutions like banks and cooperatives are other big players- there's just too much stagnant money in the economy. The money neither gets invested or gets circulated elsewhere than in consumption- so it gets saved in banks. One area which has received a lot of investment is real estate business. But this is again of non-productive nature as most of it is about plotted land and residential buildings.

It is not that there is no money. If you look at the queues of share-openings of banks and the amount of money people bid for them, you will get an idea. There's money coming all the time from remittances. There is no dearth of shiny imported vehicles in Kathmandu. So, what is the problem?

The problem is that the party-politics has become the most profitable business in this country. We do not have enough role models in our societies.

The media, which raises its price by 100% complaining of shrinking advertising, has in fact contributed to that very shrinking. While getting around with daily chores amidst load-shedding, fuel shortage and horrible transport and legal system are the top-most priorities of the people, the relatively rational people in the media and civil society are too busy citing what a corrupt politician said in Reporters' Club. They don't want to do any hard work. They don't want to promote business and entrepreneurship. They do not want to find out the problems of doing business in Nepal, being a jobless graduate always looking to escape abroad or being a skilled manpower not being able to access high speed internet in the heart of the country. This also prevents the rise of alternative media entities on the internet and reinforces the aggravation of the problem.

Nepali Times: you should take some lead. Your editor and paper are among the few who talk and write about the real issues at least from time to time. Can you lead a rejuvenation, some kind of rebooting the core system in Kathmandu?

Posted on: 05 JAN 2012 | 1:46 AM NST

14. Salil
A good article. Goodness, novelty, honesty and self righteousness are going to be things of the past in the new, improvised Republic of Nepal. Many have stopped protesting - a mock smile escapes none the less and the time is not too far when we shall stop writing too in protest.

Posted on: 29 JAN 2012 | 11:38 PM NST