On/Off the Record
Since federalism, secularism, and republicanism has been introduced in the country, we have been continuously arguing that the system imposed by the foreign powers will not benefit Nepal like country. Now, it has been proved. Politically, instability has been witnessed and economically, we are heading towards bankruptcy. Finance Minister Yubraj Khatiwada has publicly admitted that he has not been able to manage the fund to meet the government expenditure. The country’s economy is not on proper track as we have been predicting that the economy based on import taxes would encourage imports in the nation. The government is unable to manage the matching fund for its budget without meeting the domestic revenue targets and to meet the target, the government has relied on revenue received from imports of foreign goods. This is a serious issue which has led the nation towards a failed economy. In each new fiscal year, our imports are increasing at an alarming level, whereas, we have not been able to make a remarkable contribution on exports. In the course of managing matching fund, the government has encouraged imports, in the meantime, it has discouraged domestic industries. Without the government subsidy, our industries cannot compete in the international market. The government has no effective plan to promote local industries. Therefore, today, we are depended to foreign countries on agro-products too. For the record, in the last fiscal year, Nepal imported agro-products worth 2.5 billion rupees, which is very shameful. This is an example that the government is not serious about the development of the agricultural sector. Sole dependence on the foreign market may invite crisis, which, we have witnessed during India imposed economic blockades.
Our foreign debt is continuously increasing. The finance minister has just demanded donor countries to extend the timeframe to pay back the foreign debt. The donor countries, on the other hand, are reluctant on extending the tenure to payback of such loans. Every year, we need donor countries’ financial support when the government drafts a new fiscal year’s budget. Such support will not be forever, we have to understand. Nepal is in the list of less developed countries (LDCs). We cannot remain at the same status forever. Sooner or later, we have to upgrade the country to the status of a developing nation. We cannot stand at the status of developing nation without economic development and the present political system doesn’t allow us to develop our economy.
The present system is an expensive one. To run seven provinces and 753 local bodies are out of the capability of the Nepali economy. This system has been imposed by foreigners to keep Nepal a poor and underdeveloped country forever. If we remain poor, powerful nations can easily exploit us. Simply, they can buy our political leaders and intellectuals by spending less money. Foreigners can impose their agendas very easily. Now, Nepalis should understand the real intention of the foreign powers and reject the present system as earliest as possible.
The present political mechanism has introduced free-market economy, which is not suitable for Nepal like country. For example, farmers producing agro-products are not getting a good price for their products. On the other hand, consumers are paying even five times more price of the very products. Those middlemen and brokers are exploiting both the farmers and consumers. It has happened as there is no government intervention in the market. Therefore, we have to introduce a political system minimizing capital expenditure and maximizing development expenditure. Likewise, we have to introduce a mixed economic policy providing economic role to the government by ending the monopoly of the private sector. Such a system is needed to intervene in the market.
We experienced the Panchayat system for three decades. During those days, Nepal was producing good students from the government and community-based schools and colleges. There were no private schools. Likewise, medical service was not expensive as there were no private hospitals. The government undertakings were doing good business and paying plenty of tax to the government. It became possible due to the good governance, strong anti-corruption drive, encouragement on professionalism. The government undertakings were destroyed after political parties started to politicize such institutions. Also, political parties made these corporations as the political workers’ employment centre.
Furthermore, politics has become expensive. To meet the political expenditure, political parties have to make money through economic manipulation. Therefore, political leaders are openly practicing corruption by abusing their authorities. In such a manner, honest leaders have been sidelined and corrupt leaders have become influential. Corruption is a major problem in the development of the nation. At any cost, we have to reduce the corruption practice, which is not possible from the present system.
To conclude, the present system will not benefit the country, so far, it will lead the nation towards bankruptcy. Therefore, we should move forward to scrap this impractical and non-functional political system by introducing a system giving priority to the mixed economy aimed at achieving the goal of socialism.
People’s Review Print Edition
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