While we were busy with our endless PM electioneering, an Indian journalist was paying attention to the Chinese decision to invest $200 million to upgrade a dry port in Gyirong, a Tibetan town not far from the central part of Nepal's northern border. Calling Nepal a basket case incapacitated by political infighting, this Times of India journalist chastised his own government for not paying attention to these huge opportunities in the north.
Nepalis are well aware of the rising economic prowess of China and India on the world stage, and we love to talk about our strategic location. But to translate our rhetoric into reality, we need to have a strategic vision, followed by a set of doable policies.
For such a vision, we need to make sure our regional politics are tied to our economic development strategies, and that we can promote interests that are mutually beneficial for all parties involved. To that end, Nepal needs to persuade its two neighbours to sign a tri-lateral agreement � Trans-Himalayan Economic Cooperative Agreement (THECA).
With rising economic trade between China and India to the tune of $60 billion per annum (more than Indian trade with SAARC countries combined), a peaceful trade corridor in the middle would be a welcome relief for the two aspiring superpowers. Numerous Indian banks are already operating in China; English-speaking Indian MBAs and engineers are penetrating Chinese markets in an unprecedented way. And the idea of a trans-Himalayan highway is not confined to romantic, visionary rhetoric, more than 80 per cent of goods in the US are transported over land after all. Such an arrangement will be a necessity within a decade or two for the two Asian giants.
Also, the Chinese decision to move south-westward through the Tibetan plateau is highly strategic. In addition to having an eye on the southern Asian market, China is interested in integrating Tibet and its vast western front, Xinjiang, with the east coast. In particular, the sparsely populated but resource-laden Tibet Autonomous Region, the size of the Western Europe landmass, can play a vital role in China's continuous economic drive.
China plans to build 100 dams on the Tibetan plateau. It has also built a network of 25,000km of highways in Tibet, a spectacular 4000km railway line linking Beijing to Lhasa, a 1,000km oil pipeline, and there's more to come. This infrastructural development in Tibet also holds strategic value for India.
So what should Nepal do? First, our politicians need to drop the China versus India rhetoric from their political vocabulary and begin a fresh dialogue to design a new strategic vision for Nepal. We already know of our potential in cash crops (coffee, spices, tea, herbs, biofuel), tourism, manpower, and the importance of our Himalayan water towers. By investing in fiber optics and IT parks equipped with water, electricity and tax breaks, we can also attract outsourcing ventures from India and China. The THECA doctrine should spell out these collaborative ventures. Our thousands of MBAs and IT engineers will find well paying jobs and will learn entrepreneurial skills from Indian and Chinese partners. Multi-lane highways and railway lines through the Himalayas could link the two economic giants. Our banking sector is already poised to be a regional financial capital, and our private colleges will be reinvigorated by linkages with educational institutions north and south of the border.
In return for these economic opportunities and infrastructure development in Nepal, and as an integral part of the THECA doctrine, Nepal should not hesitate to offer some peace of mind to China and India. Growing anti-China political activities in Nepal are cause for concern for Beijing. Peaceful demonstrations in some designated areas should be tolerable to the Chinese, whereas the Nepal government should also make sure that the monasteries in Nepal do not violate their spiritual sanctity by being centres of political activism.
Likewise, Nepal should assure India that its land and government apparatus will not be used to aid and incite Maoist unrest on Indian territory. A similar assurance will have to be extracted from the Indian side.
Of course, in order to get Nepal on track for economic prosperity, the Maoists must be completely assimilated into our political spectrum. Given the way things are going at present, this will require some more time. But while the politicians are distracted, the groundwork for the THECA doctrine should begin.
A longer version of this article appeared in www.nepalnews.com
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