We do not need any aid or economic package that makes us dependent and rely on others forever

– By Sanjib Subba

International and donor community are eager to come back and “contribute” in Nepal in a changed political scenario. The new Government in Nepal is looking forward to its “credibility” by showing the people back home how much aid and donors fund it could bring in to the country. India, taking a lead has announced “Economic Package” to win the hearts of politicians and Nepali people.

Nepali people though should dare to say STOP before you are out there again to seek these alms. Experience has shown that no nation in the world has benefited from “Aid and Donations”. The so-called donor’s money has been the source of much of the corruption everywhere. A large amount of these foreign funds go in employing so-called expatriate experts and rest of the money never reaches the exact beneficiary. The dependency that this process brings is other social problem that is rampant in our society.

The majority of large number of INGOs and NGOs that are mushroomed in every nook and corner of Nepal is mostly dependent on foreign help. Majority of them go unchecked both fiscal and operational. The so called Team Leaders reportedly divert the funds to their own benefit, keep them employed and be rich in a so called “intellectual way” and in the name of social work.

“Funding agencies and friends of Nepal like India, China further could help by supporting our hydro electricity industry at mutually favorable terms and buying the product at respectable market rate.”
The time is now for Nepal and Nepalis to be self reliant and politely say “No, Thank you” to donors.

Government and politicians should be bold enough to say “No” to aid givers; say “Yes” to them only for serious economic measures to help Nepali industrial infrastructure by opening their market for Nepali goods, direct transfer of technology and know how, joint-ventures and multilateral projects like Arun and Melamchi which has significant national importance as well as strategic important issues such as road network development.

Unless and until we come up with a radical and reformist economic package for the nation and commit ourselves to build the nation we are heading nowhere. Foreigners and friends of Nepal may have all the sympathy for our situation and poverty it is us – Nepalis– who has to build our country.

If nations were built on donors fund then many of the African countries would have been ranking not too low with global leaders by now, but no, the rampant corruption, huge under the table deal has made the good fund to be misused by each and every one involved.

An old Chinese proverb comes to mind: “Teach your children how to fish not how to eat.” How rightly said.

Yes, we are rapidly losing lead time in terms of progress and economic prosperity but if we all work hard and sincerely the lost time could be narrowed pretty fast.

Vietnam is one good example, which is rapidly reducing the economic gap with countries like Thailand, Malaysia year on year. The country that was once under US and international sanctions now boasts itself as one of the upcoming South East Asian economic centers. The implementation of “Doi-Moi” economic plan has shaped its future. The ambitious reform economic package under “Doi-Moi” that addressed decentralization, market oriented economy, adoption of outward oriented policy, reformed agriculture policy, focus on private sector as a growth engine and empowering state and private owned companies to make all foreign trade decision got Vietnam out of economic crisis. Vietnam has been discussed here just as a symbol of exemplary economic growth and point here is not to say they did not rely on out side support or Nepal does not have similar economic approach but reality is that they managed to turn things around through smart approach, hard work and stable politics.

We always have heard policy makers in Nepal talk about “Competitive Strategy”, true, but challenge then is to establish focused approach on selected industries and take them to the next level of prosperity. It is for the Government and economists to figure out which ones are these. Unless and until we know answers to our economic needs no one is going to help us. The next ten years– assuming everything falls in places and Maoists join the main stream – will be the crucial 10 years to lay the strong economic foundation.

It is irony that our politics, media, civic society and we at large are so much obsessed with “Foreign assistance”. The success and failure of the government is mostly rated at how much aid and donations they could bring or could not bring. It is pity that governments’ performance is measured against bringing “Loans & Donations” instead of “Development”. Did not the media criticize Royal Government for failing to stop withdrawal of foreign assistance? Similarly, the new government headed by Girija Prasad Koirala would be lauded for bringing hell lots of foreign assistance in to the country.

Has any one realized how much money has flown in Nepal over last 40-50 years in the name of AID and Donations? We may have received millions of dollars in last 40-50 years but irony is we are still poor and underdeveloped. If we yet do not learn from past mistakes we are doomed. Do not wait till inflation sky rockets; value of your currency is weighed in kilos and sacks. Fortunately, the “Labor Power” of remittance has been funding the country, keeping all other variables under control.

Referring to Indian “Economic Package” for Nepal again, I do not want to get in to the politics of this but reality is we do not need any aid or economic package that makes us dependent and rely on others forever. Instead, India should support Nepali industry and open Indian market for Nepali goods and services at a favorable terms and conditions so that our industry could flourish. Funding agencies and friends of Nepal like India, China further could help by supporting our hydro electricity industry at mutually favorable terms and buying the product at respectable market rate. Similarly, Nepal should start working on attracting Foreign Direct Investments instead of begging for aids and donations and India and China should come forward to open their market for products under FDI in Nepal without any bias. That would show your sincerity towards Nepal.

Similarly, USA and EU, if they are really sincere in “contributing” in Nepal’s development then they should not encourage Aid and donations under the disguise of so called “Development Fund” but instead remove QUOTA system for Nepali products and start with garments, for example. Let the Nepali handicrafts and other products in without any barriers; Provide a good and economical platform for Nepal to promote Tourism in their country; Encourage their private sector to invest in Nepal, provide some relief for their corporate sector who wish to invest in Nepal. There are countless ways other than alms that they can help us if sincerity prevails amongst our “DONORS”.

Subba is the director, MBA and Professional Development Programme of the Webster University at Bangkok, Thailand. Please send your comments to [email protected] or [email protected]

(Editor’s Note: Nepalis, wherever they live, as well as friends of Nepal around the globe are requested to contribute their views/opinions/recollections etc. on issues concerning present day Nepal to the Guest Column of Nepalnews. Length of the article should not be more than 1,000 words and may be edited for the purpose of clarity and space. Relevant photos as well as photo of the author may also be sent along with the article. Please send your write-ups to [email protected])