Domestic businesses should be strengthened, prioritized, say experts

Anand Bagaria Entrepreneur I haven't seen immediate solution to the ongoing crisis. This is the result of internal feuds and conflicts rather than the economic blockade or the issue related to federalism. This is also turning out to be a freedom fight to become economically independent. The positive result of this whole fiasco is that the economy is taking center stage. However, every sector of the economy is facing loss. Daily wage earners have been hit hard. We have signed a lot of non-reciprocal treaties. The question at present is whether such non-reciprocal agreement at a time of economic development is right or not. Are we ready to forgo such non-reciprocal status and be on par with anybody else? We cannot declare war or use force. Negotiation and dialogue is the only way forward. The problem did not come overnight. It is a simmering problem which was being felt time and again while renewing or reviewing the treaties. I don't know whether Madhes problem has been internationalized or international issues have been playing in the Madhes. However, the problem was anticipated and there always was friction in the whole thing. We have our own limitation as we lack preparedness. At a time when we are suffering ourselves, another question is whether it is right to irritate them (India) by getting close with China! I think we have to prepare a long-term strategy by buying time. If our treaties are not right, let's review them. Our economy has suffered a lot in the last two or three months. Now we must start dialogue, but the direction of the dialogue should be clear from today. What would be the direction of the country or economy for the next four or five years? We can buckle slightly for the compromise just to put the economy into the status quo rather than allowing it to deteriorate further. We don't have any choice of reopening our borders immediately through a compromise on both sides. The short-term strategy is thus the status quo. The mid-term strategy should be to improve the relationship with India. At the same time, we should look for a long-term alternative like keeping roads toward north in proper condition. The mid-term strategy is also to give priority to our domestic businesses and strengths like agriculture where I have seen a lot of opportunities. But we are not giving much importance to this sector. The real problem of the agro-based business is the logistic-related problem, particularly fuel. Otherwise, we don't have a serious shortage of food items in Nepal. In the long-term, we have to open our doors and create the environment of interdependence rather than dependence. Why only China? We have Bangladesh a few kilometers away from our Indian border. Except looking toward north (China) when we have feud with south, we don't have any alignment with north in any way. This is the political problem impacting the economy and it should be settled at political and diplomatic level by creating fundamental understanding where support of private sector is secondary Purushottam Ojha Trade Economist Smuggling of petroleum products is causing revenue loss of around Rs 3 billion per month. But India is not suffering any loss, as it has already collected all taxes on petroleum products being smuggled to Nepal. Not only the government, people are also suffering as they are compelled to pay higher price for petroleum products. Smugglers and people involved in black market of petroleum products are benefiting. The government should immediately bring all such imports into formal channel. Those involved in smuggling are becoming rich overnight but their act is bleeding the national coffer white. It is high time the government devised a special plan to bring all trading activities through formal channel. If not controlled in time, it will destroy our economy. Unfortunately, the government does not have any plan to ease availability of daily essential goods. As only diplomatic efforts can end the stalemate, the government should make needful efforts in this regard. One cannot find diplomatic solutions by shouting in the streets. The entire country was united against India when the southern neighbor imposed blockade in the past. Now our stance is weaker as people are divided. We should inform international community that India was violating rights of a landlocked country enshrined in the General Agreement on Tariffs and Trade (GATT) of World Tourism Organization. Nepal has neither filed any case against India’s move, nor informed the international community about it. The government should also keep doors for diplomatic talks with India open to end the blockade. The government has neither initiated diplomatic talks with India, nor has started serious preparation to sign commercial agreement with China to import petroleum products. It seems that political leaders and government officials do not want to irritate India. The main duty of the government is to ensure smooth supply of essential commodities. The country will become a failed state if immediate diplomatic measures are not taken immediately to address the problem. The government should act cautiously. It cannot shy away from the responsibility by merely asking Nepal Oil Corporation (NOC) to normalize fuel supply. NOC officials alone cannot take big decision. Rajan Sharma President, Nepal Freight Forwarders’ Association We should deal with external and internal problems in a different manner. The government should start meaningful discussions with agitating parties to solve internal problems and initiate talks at diplomatic level to find a solution to external problems. I have requested officials of the Ministry of Commerce and Supplies many times to find solution to our problems. But they always turned deaf ear to us. What I feel is India has given us an opportunity to manage our loopholes. It is high time that the government and private sector worked together to address India’s security concerns and bring goods to our dry ports and customs offices. I think we desperately need a crisis management cell comprising of government officials and private sector. The cell, led by a joint secretary, should be in operation around the clock to listen to woes of private sector. It should be operational even after the present problems are addressed. I think we are not doing business in right way. At present, we are following Cost Insurance and Freight (CIF) system under which sellers need to arrange for carriage of goods by sea to the destination port and give buyers the necessary documents to obtain goods from the carrier. If we focus on river-driven transport till Patna, it would help solve our problems in the long run. Even warring parties do not block supply of medicines. But supply of medicines has been halted. I think Nepal should raise the issue at the international level. As the blockade is leading to a humanitarian crisis, humanitarian agencies should take initiative for resolving the problem. As an immediate measure, we need to take diplomatic initiative to resolve the ongoing stalemate. We also need to ensure that business to business relation between Nepal and India is not hampered because of the present problem. Similarly as mid-term measure, the government needs to revise treaties signed with India and incorporate a bilateral agency mechanism so that we can exercise our rights. Similarly, we need to expedite hydropower generation and increase agro production so that we become self-reliant on food. The government should also reduce dependency on imported products and encourage people to consume domestic products. In the long-term, Nepal should carry out feasibility study for operation of six trading points along Nepal-China border as assured by the Chinese Prime Minister in his recent visit. The government is doing nothing in this direction so far. Without infuriating India, we need to look for alternatives and deal with China tactfully. We need to understand that China will not come forward and intervene into the situation. It is taking moves tactfully. We should also promote trilateral relation with India and Bangladesh.