Nepali Times
Headline
Mood of doom

DEWAN RAI


ALL PICS:CHONG ZI LIANG

It wasn't supposed to be like this. When the Maoists came to power through elections, most Nepalis expected improvements in their lives. And by now we should have been nearly half-way into the constitution-writing process.

But, especially in the past month, as the government lurches from one crisis to the next, there is a deep sense of gloom-most visible in the business community.

Having survived extortion and violence in the past decade, business leaders say things have never been this bad. Crippled by union militancy and power cuts, most are on the verge of closing shop. Hotels in Pokhara lakeside have been shut by Maoists from Wednesday. Biratnagar has been closed this week by agitating jute industry workers.

Although Maoists lead the government, their unions are demanding a 30 per cent rise in daily wages, have shut down Jogbani border customs and all highways in Morang.

"We thought that after the elections, things would stabilise, but they have got worse," says industrialist Rajendra Khetan, "we are planning to migrate to look for opportunities abroad." Some 100 Nepali industrialists have already moved across the border, and Rudrapur in India's Haryana state has become a Nepali industrial estate.

"We want the government to introduce an exit policy so we can shut down our factories and move to India," says one dejected investor.

Nepali Times asked Finance Minister Baburam Bhattarai if he was aware of this mood of doom. His answer: "The situation isn't hopeless, these things happen in a transition. Once the minimum wage issue is resolved the cabinet will ban all strikes and shutdowns."

Multinationals also say the investment climate has deteriorated since the Maoist government came to power. "This has become a land of lawlessness with the YCL, the militants and criminal extortion," says one multinational manager, "the Maoists can't control it. We are all close to giving up on Nepal."

Hoteliers in Pokhara say they are willing to comply with government regulations but are being forced by Maoist unions for an across the board Rs 1,300 pay increase.

Says Gobinda Pahadi of the Regional Hotel Association in Pokhara: "Most hoteliers are so fed up they just want
to quit"

FULL INTERVIEW



LATEST ISSUE
638
(11 JAN 2013 - 17 JAN 2013)


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