Democracy For Nepal: The Concept Of National Capital And The Maoists

Friday, July 21, 2006

The Concept Of National Capital And The Maoists

Prachanda first came out sounding he had high hopes on some herbal plants to resurrect the Nepali economy, and I was alarmed for the narrowness of the suggestion. Then some mid level Maoists came out sounding mainstream, mixed market economy and all. Baburam Bhattarai, always the level headed Maoist, the least dogmatic of the bunch, in his recent interview has noted over 95% of the economy is with the private sector, that there is no need to be alarmed, and that not even America has a totally free market economy, which is true.

As to what that mix between the public and the private sector will be is to be decided by the people through the ballot box. But it is quite clear the Maoists do not harbor any vision of a Soviet style command economy any more than they envision a Stalinist state. Their transformation is real. Those of us who for a decade feared a Cambodia style massacre in Nepal should put some effort into appreciating this transformation that is taking place. There are things we can do to help that process of transformation, and we should focus on that, rather than getting in the way of that transformation every which way we can.

But one thing bothers me. When the Maoists talk of national capital, what do they mean?

FDI, NRN, Upendra Mahato, $100 Million Fund, Dual Citizenship

Capital, by definition, is in the hands of the rich in Nepal. When you make it easier for foreign capital to come into the country, the local capitalists feel some competition. Prices go down. The middle and lower middle and the low income people benefit when the prices go down. More important than that, domestic capital is too little. If Nepal wishes to grow fast, it needs loads of capital, and that will have to come from outside. You need massive infrastructure projects, massive new industries, many new companies, and there is no domestic capital to feed all that. And so you need capital from outside. The best way to increase the income of the poorest is to grow the economy. The more the capital, more the growth. Learn from the Chinese.

FDI will benefit the existing companies and businesses in Nepal is a large way. So "national capital" will be the primary beneficiary. My point is there is no clash between "national capital" and FDI.

And I think most of that outside capital will come from the Nepali diaspora spread worldwide.

And all such private investments make money for the government in the taxes they pay. And that extra income can be invested by the government into the human capital, to invest in people's education and health.

This is my simplistic understanding of the economy, be it at the individual and the family level, or at the national level. There are three componennts: physical capital, financial capital, and human capital. Poor families have little of each, and the government can help by injecting financial capital and human capital. Micro credit would be financial capital, and education and health would be human capital. A government that has more revenue can do more of both. And you get more revenue by making it possible for big businesses to grow. You just charge them taxes. And those taxes have to be low. You can kill the hen that lays the golden egg. Or you can patiently take the eggs.

There is no such thing called too much Foreign Direct Investment. Just like there is no such thing called too much happiness. If the political leaders in Nepal can do only one thing for the national economy, it should be to prepare a policy framework that attracts the maximum possible amounts of FDI. And the dual citizenship provision is at the center of that regime. So do it. And do it now.

On the other hand, the political leaders always have the option to design new, innovative and effective ways to reach the poorest of the poor. Maybe in Nepal we can develop models for micro credit and human capital that can then be taught to the American inner cities that live with so little hope. The challenge is can you make the economy grow for people in all income brackets? It is my estimate that the growth can be fastest for the poorest, just like it is much easier for a poor country to grow at 10% than it is for a rich country.

In The News

CIAA investigating distribution of state fund to journalists: Upadhaya
Armed robbers loot Rs 2.5 million from Continental Marketing in Kathmandu
Hundreds of Nepalis stranded in Lebanon; Rescue efforts on: Foreign Ministry
European Parliament calls for ceasefire agreement, supports 'decommissioning of arms' Neena Gill, said the issue of arms decommissioning and demobilisation of combatants, which was crucial for free and fair elections, was a priority....... "No political party can go to elections with a gun on his shoulder" ....... European Parliament hopes that elections to the constituent assembly will take place at an early stage and is willing to assist in election monitoring ....... "The CPN (M) should now add action to its words and fully renounce violence, stop extortion o money and abductions, enrolment of child soldiers and start disarmament." ......... delegation urged the international community and particularly the European Union to financially assist Nepal in its development needs..... "The European Parliament will monitor the situation very closely. In particular, it will organise regular hearings to see what progress is being made." ....... more than 100,000 Bhutanese refugees who live in camps since 1991 and the problems faced by the Tibetan refugees. ...... the Mission called on senior Nepali officials, members of reinstated House of Representatives, political leaders including Maoists, representatives of the refugee community, human rights groups, media, NGOs, diplomatic corps and UN agencies
High level UN team to visit Nepal to assess help in Nepal peace process; de Mistura to lead the team a five-member high-level team of United Nations is arriving Kathmandu next week (July 26) to assess what needs to be done to accelerate the peace process....... Mistura was the Secretary-General’s Deputy Special Representative for Iraq. Prior to that, de Mistura was the Personal Representative of the Secretary-General for southern Lebanon ....... "Recent developments have provided an unprecedented opportunity to achieve a negotiated political solution to Nepal's 10-year armed conflict" ........ The government asked the world body to assist to monitor the combatants of the Maoist and decommissioning of their arms, and to assure that the Nepal Army is inside barrack and not being used for or against any side, in order to ensure free and fair constituent assembly elections........ The delegation will also meet the heads, and other senior officers, of the security forces. It will also meet the representatives of the civil society and human rights activists.
Indian MPs, others call for release of Nepali Maoist leaders
NC for 8-point suggestion to Interim Constitution Drafting Committee Central Working Committee meeting of the party finalized the suggestions..... sovereignty, fundamental rights, monarchy, and the formation of constitutional bodies, army, and the electoral process ..... citizenship, political parties, and referendum....... a long discussion on the third part of the draft, which deals with the position of the king. While some said it is not necessary to mention the position of the king as the party has decided to scrap monarchy in its convention, others said a referendum should be held to decide the future of monarchy ........... the existing parliament should remain intact and constitute an inclusive interim parliament through a proportional electoral system, electing representatives from different sectors of society including the Maoists........ the need for arms management before implementing the interim constitution
NC Vice President Koirala injured the vehicle he was travelling in was hit by a vehicle belonging to the Nepali Army ..... plate no. Ba 1 Jha 5595 ..... the Army driver who immediately fled from the scene without helping the injured ...... NA is investigating about the incident
Indian MPs, others call for release of Nepali Maoist leaders about 50 Nepalis branded as Maoist are still languishing in Indian jails ....... Indian MPs Nirmala Deshpande, Sadhakar Reddy, Abdul Rashid Shaheen and Aziz Pasha. ...... former MP and well-known columnist Kuldip Nayar, former chief justice of Delhi High Court Rajendra Sachar and former chief of the Indian Navy Admiral L. Ramdas....... nearly 150 of their comrades are in various Indian prisons including two senior leaders, C.P. Gajurel and Mohan Baidya ...... CPN (Maoist) is organising a grand function at Godabari, Lalitpur on Sunday to felicitate its cadres who were freed recently .... nearly 1,400 Maoist leaders and cadres from various jails

Robin Hood Politics of Nepal OhmyNews International, South Korea After being in the wilderness for nearly a decade, the Maoists are at the center of the Nepalese political and economic stage. ...... The Maoists are clearly revelling in the limelight..... it seems that democracy has come to the political parties and the leaders, and not to the people ....... one wrong move from the Maoists central authorities would be enough to discard the Nepalese transition paradigm. .....
Nepal's army chief swears allegiance to parliament New Zealand Herald, New Zealand

Gill optimistic Maoists will disarm Kantipur Publications Gill, who is head of the European Union for South Asia and SAARC region ..... none of the parties can be allowed to take part in any sort of elections carrying weapons...... the delegation team had held a meeting with Maoist leader Dr Baburam Bhattarai ......
Another daylight robbery in capital looted property worth Rs 2.2 million from the capital's Continental Marketing Pvt Limited situated on the fourth floor of Bagmati Chambers at Teku...... five robbers armed with pistols took away Rs 2,00,000 cash along with three mobile sets, three golden necklace sets including rings and a set of golden bangles. According to Rajesh Upadhyay, managing director of Continental Marketing, five robbers entered the company guised as regular customers before three of them produced pistols to take customers and staff under their control. ...... took away ornaments from five women staff members. Two others and one customer too lost their mobile sets in the looting...... 20 staff and six customers present at that time....... looters entered the company at 11:39 am and it took just three minutes for them to execute the robbery....... The close circuit TV camera has captured the pictures of looters and their activities....... A team from the Valley Crime Investigation Branch arrived at the company premises within 15 minutes after they were informed....... all those involved in the robbery have been identified.
Physically challenged enter Singh Durbar More than 100 of differently abled people succeeded to enter into Singh Durbar despite security forces' intervention...... are demanding for making special provision for them in interim constitution. .... A light scuffle has been observed
Security Council sans army chief mooted a new structure for the National Security Council, under the chairmanship of the prime minister and with four other ministers as members, but without the army chief....... home, finance, defence and foreign ministers, and will control and mobilize the 95,000-strong Nepali Army ....... the cabinet will appoint the army chief, who will be accountable to the government and take his oath from the prime minister ....... King Mahendra had promulgated the present Military Act in 1959 through an ordinance. Parliaments formed after the 1990 movement were unable to amend it despite several attempts........ draft law has also proposed significant changes in the selection procedure for officers. A committee headed by the Public Service Commission chairman or a member assigned by him will be formed for the recruitment of officer cadets....... has also proposed the trial of army personnel in civilian courts if they are found involved in crime against civilians. Soldiers will not enjoy any immunity except when fighting for the country in war......new law has attempted to regularize the "controversial" army welfare fund by barring it from deducting more than 15 percent of the income of army personnel. A committee comprising incumbent and retired officers will be set up to mobilize the fund, in place of the provision hitherto for its mobilization by the army chief.
Maoists ‘fix’ minimum wages Maoists have categorized all the industries in three groups and have fixed minimum monthly wage of laborers ....... "We have classified entire industries as A, B and C, based on their level of investment, net profit, taxes paid to the government, type of industry and number of employees" ....... companies falling in category 'A' - that include all multinational companies - should fix minimum wage at Rs 10,000 per month........ category 'B', which mainly represent industries established with domestic investment, ... Rs 7,000........ category 'C' should give at least Rs 5,000 per month to its employees. According to the Maoists classification, financially sick industries fall in category 'C'...... companies, which refuse to abolish 'contract' and 'piece rate' system should give a daily wage of at least Rs 200 to its workers...... demanded an immediate cent percent increment in government-fixed minimum monthly wage of laborers. The government has fixed the minimum monthly salary of workers at Rs 2,560, whereas wages of laborers working on contract basis is as low as Rs 90 per day........ if the government turns a deaf ear towards the demand, they would be compelled to implement it forcefully....... some labor leaders associated with Congress and CPN-UML urged for extra precautions. They said wage rates fixed on ad-hoc and unilateral basis could dampen the industrial environment...... establish a permanent wage board, which could devise a scientific mechanism to raise minimum wage at par with annual inflation.
India's 'Operation Sukoon' benefits Nepalese in Lebanon 700 South Asians being rescued by one of India's four naval ships that reached the Lebanese waters off the coast of capital Beirut, where 1,000 Indian nationals were awaiting evacuation ...... the number of Nepalese nationals working and living in Lebanon at around 4,000. Most of them are understood to be working in restaurants and firms owned by people of Indian origin. ...... takes around eight hours to reach Cyprus.
लेबनानमा पाँच हजार नेपाली उद्धार पर्खाइमा
संसद् भंग गर्न प्रधानमन्त्री सहमत’
प्रधानसेनापतिद्वारा संसद्मा शपथ
सैनिक ऐन मस्यौदा मन्त्रिपरिषद्मा
जबर्जस्ती चन्दा
लेबनानमा नेपाली
बोर्डफस्ट को ?
सात सालले सिकाएको पाठ
तयारीबिनाको शान्ति प्रक्रिया
दरबारलाई २१ करोड !
माओवादीलाई ठेक्काको आधा रकम
माओवादीले ज्याला तोक्ने

Second “summit meet” postponed NepalNews both the sides were engaged in necessary “home work” ...... There have been discussions on constituting an “interim legislature” but the SPA is yet to arrive at a consensus on the basis...... the “Peace Committee” led by Nepali Congress general secretary, Ram Chandra Poudel
Curbing Corruption: The innovative approach Ranked as the 47th most corrupt country on earth by 2005, Nepal enjoys the prestigious position of being more corrupt than historically corruption-ridden nations like Malawi and Libya....... Army generals started promoting cousins and started sending the rest towards Maoist territory, ministers started appointing their relatives as ambassadors ...... All-in-all Nepal became a massive network of family run businesses...... From ministers asking for ten crores to clerks asking for ten rupees, the culture of corruption has become deep-rooted in our society........ The answer is not to cross our fingers and pray that the leaders will be sincere but rather to blueprint an arrangement that would make bribery and fraudulence unattractive to persons of power....... an anonymous anti-corruption unit should be established. ....... The government and its politicians should have no hand in appointing or running the day-to-day activities of agencies such as the Commission for Investigation of Abuse of Authority (CIAA), nor should it have the slightest clout upon such an organisation........ “watchdog for the watchdog” ...... to make sure that the anti-corruption agency itself is not corrupt, which is often the case in Nepal...... increase the salary of ministers and top bureaucrats ..... Post 1990, politicians started appointing government officials who would give them a commission once they were appointed to power. Certain ambassadors and consul generals would often give a portion of their corrupt earnings back to the political party that appointed them........ the deep-seated tie between our industrialists and politicians needs to be severed....... the media, which has become the leitmotif of anti-corruption in recent years..... the same people whom we may call “fathers of corruption” are back in power today .........
Army chief, heads of constitutional bodies take oath before parliamentary body Speaker Subash Nemwang, who is also the chairman of the HoR Declaration Implementation Monitoring Committee, administered the oath of office and secrecy to Thapa, Attorney General Yegya Murti Banjade, chief of the Commission for Investigation of Abuse of Authority (CIAA) Surya Nath Upadhaya, Auditor General Gehendra Nath Adhikari and Chief of Public Service Commission Tirtha Man Shakya taking oath of office and secrecy. ...... This is for the first time the army chief and heads of constiutional bodies have taken oath before the Speaker.
European Parliament continuing parleys
Over 150 former Kamaiyas arrested
Proportional Election System for the Constituent AssemblyAmong five branches of majority system (First past the post, Two-round system, Party block vote, Block vote, Alternative vote), Nepal has been exercising first-past-the post system..... it is often seen as giving too much power to the party and not enough to the individual voters....... If we fix 100,000 population = a seat, we will have 252 member strong constituent assembly. In the election for constituent assembly, if Nepali Congress gets 30% votes (for example), CPN (UML) bags 35% of the votes, CPN (Maoist) gets 25% votes, Nepali Congress (Democratic) gets 5% votes and other parties have to be content with just 5% votes, in the 252 member constituent assembly, representatives of different parties will be as follows: Nepali Congress=75 seats, CPN UML =88 seats, CPN Maoist =63 seats, NC (Democratic) =13 seats and others =13 seats...... Due to adoption of proportional election system, in 1994 National Assembly election of South Africa, 52% black, 32% white, 7% non-White, 33% women and 8% Indian were elected. Based on the experiences of South Africa, Indonesia, Sierra Leon and Brazil, political parties are encouraged to give multiethnic candidates in elections. Out of 20 countries where women’s representation in the legislature is quite high, 14 are exercising list proportional election system........ Considering that Nepalese laws obligate 16 year age as a matured age for legal obligation and involvement of youth of this age groups in the pro-democracy movement, youth of 16 year of age should be considered as an adult for the purpose of elections for the constituent assembly........

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