here couldn't be a better time to talk about Nepal's sagging exports than now, when the government has declared 2003 as "Export Year", and business is trying to figure out what to do next. Falling export is nothing new, after the record year 1993/94 Nepal's exports have been steadily going down. But better late than never.

The success or failure of Export Year 2003 will depend on whether we learn from our past mistakes and experiences.

The failure of the Nepali export sector does not solely lie on government. Exporters, especially the fly-by-nights have done more harm to trade than anyone else. People took garments and carpet exports as a card game of "marriage", and everyone lost. However, the Beed is convinced that if we learn from this mistake then we can look forward to healthy growth. But will we?

While Nepal examines the export sector, it currently needs to position as a country that can either manufacture a product for another brand or build its own brand. The fact that if one has to manufacture for others definitely means that we ought to have strong competitive advantages. If we have Export Processing Zones will our production costs beat the economies of scale in China or India? Can we offer GAP or Wall Mart better prices?

Large players that source from countries all over the world and sell under their own brand are dominating the wholesale market today and the trend will continue. Wall Mart's annual turnover of $220 billion (more than the GDP of Switzerland) gives an indication of which direction the world is headed. We have to be able to beat many other vendors in countries that supply to these big giants.

Nepal also needs to explore whether it can take advantage of building a brand image of its own for its products that can fetch strong brand equity in the long-run. If Eric Valli's film Caravan can do well in the United States under the name Himalaya, there are potentials we can explore. Can the government and business get together to spend money in countries that empathise with Nepal in understanding what Nepali brands can do wonders in their country? Is there a potential for cashing on the 'Made in Nepal' sticker? Is there a Swiss chocolate or Cuban cigar equivalent?

For Nepal, exports within the region can perhaps build a strong base especially in the agricultural sector. Our potential for value-added herbal products or processed food could take on the region. This is one industry where we have our own raw materials.

The government needs to deliver a conducive policy for exports that should at the beginning ensure a good labour law and fast-track utilities. For business, the challenge would be to demonstrate that businesses should earn reasonable profits legitimately and not to kill the goose that lays the golden eggs. But, first, let's get off our
butts.

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