Delinking the economy from politics

Publisher\'s Note
Delinking the economy from politics

FROM ISSUE #520 (17 SEPT 2010 - 23 SEPT 2010) | TABLE OF CONTENTS

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That is easier said than done. But Nepal's politics is in deep crisis and our rulers are oblivious to the obvious. Untying the knot is still easy, everyone knows what needs to be done. Politicians of every hue repeat it over and over everyday: "We need to work together." But they just can't get themselves to do it.

If we wait for the politicians to get their act together, this country is doomed. Technocrats in government could delink politics from the economy and development, as researcher Raul Schiappa-Peitra argues in his Guest Column.

In the past two months of the current fiscal year, guess how much money the government has spent on development: 0. Zero. Zilch. Even though constitutional provisions allow the government to spend up to one-third of last year's allocations when the budget is not passed, political disarray at the centre means that nothing has been sent to the VDCs and DDCs for local development.

The cynical would say this is just as well because it would probably be plundered anyway by the three-party dictatorship in the districts. But it means by Dasain, government-run hospitals will have run out of medicines, government school teachers will stop getting salaries.

It is actually a miracle things haven't completely ground to a halt. Somehow, landslides are still being cleared to re-open highways and the bureaucracy is still functioning. But only just. For the first time in a long time we have competent civil servants in the Finance Ministry, the Rastra Bank and the National Planning Commission, but they can't do much when parliament is paralysed.

The other big crisis will be in revenue. Last year, too, the budget was presented to parliament but had not been passed, but at least taxes were still being collected. This year, collection is approaching zero. The result of all this under-investment will be felt this winter, on top of the daily 18-hour power cuts.

We could easily say the solution is to resolve the politics as soon as possible. But that seems to be too much to ask right now. What we can say is this: "Even if you can't agree on power-sharing, at least agree on a minimum economic and development program so that country can keep functioning. Don't punish the people for your greed and your inability to get along.

1. jange
Making a new constitution was never anyone's agenda. It was a sop offered to the Maoists to tone down their murder, loot and extortion. And it is in no-ones interest at the moment to write a new one.

This is what happens when you conduct free and fair elections with one of the political parties having the right to use violence to achieve their political objectives.

Posted on: 17 SEPT 2010 | 12:15 PM NST

2. Arthur
"We could easily say the solution is to resolve the politics as soon as possible. But that seems to be too much to ask right now."

For Kunda Dixit forming a national government led by the largest party is "too much to ask right now".

But the only other alternatives are jange's solution of the military conducting "elections" that exclude the largest party or to just keep waiting while Nepal falls apart until there is a popular uprising to install the largest party in government by suppressing the status quo parties.

I wonder how long Kunda Dixit can keep up this pointless commentary?

Posted on: 17 SEPT 2010 | 10:10 PM NST

3. aawartan.org
"For the first time in a long time we have competent civil servants in the Finance Ministry, the Rastra Bank and the National Planning Commission..."

Think we need an article on this soon.

Posted on: 18 SEPT 2010 | 10:58 AM NST

4. Slarti
"It is actually a miracle things haven't completely ground to a halt."

Sir, you have completely lost the plot. It is almost as if you are not at all happy that you have this job. If you were, you would look at things a lot closer, you would say things more consequential. You would challenge a lot more instead of simply wishing for facts to be different.

Today, all of the subcontinent is reeling under the disastrous consequences of its socialist past. India is likely to collapse in another 10-15 years time. Nepal is already in the advanced stages of that process and the so-called democratic parties, while extremely wily and cunning, do not have the capacity to bear the assault that the communists are planning.

In an environment where every grain of our existence is being challenged on a daily basis - whether it is our gods, religion, cultural practices, or history. You are sitting on the sidelines hoping that your banal remarks which mean nothing would save you at the time of the complete collapse of this world.

There is something about some chap called Nero when Rome was burning. Apparently the dude was not too pleased about the burning bit and it seems that being concerned and all he called a meeting of the high minded gents to discuss ways in which the city's attention could be diverted.

He implored them to think of alternatives which would help take peoples mind off the raging fire. "How do we ignore the facts and transcend into some other wonderful world?" he asked rhetorically. "How is it that within this silly situation everybody appears to speak about only the crisis and the politics of it all? Can't they go and sing."

And with that, stamping his foot, and calling on the world to be damned, it seems he went straight to the fountain and it seems commented "Now how pretty and intelligent am I??

Of course my history is a bit hazy like everything else but my drift is quite clear.

Posted on: 18 SEPT 2010 | 1:13 PM NST

5. Dr B
In essence the headline "Delinking the economy from politics" is highly desirable for Nepal, but probably impossible.

At a fundamental level I have always maintained that creating a new constitution was secondary to national development (education, health, water, power .....) both during the endless rounds of SPAM and the current seemingly endless rounds of PM elections.

From a practical viewpoint, how does a new constitution reduce load shedding, how does a new constitution help the people of Humla, how does a new constitution reduce water borne diseases? All of these are finance dependent but are on hold until "bloody consensus is forged, another x point agreement is signed, a new PM is elected, .........."

Will nobody rid me of these meddlesome politicians?

Posted on: 18 SEPT 2010 | 3:29 PM NST

6. Gorkhe
I thought NT, and its publisher stands for democracy? How can you delink politics and the Nepali economy from the Politics? Please you publisher give us the answer?

It is a just a cheap shoot for the current situation of Nepal, indeed, if you believe in democracy, or politics, you cannot separate the economy, and politics, they go along with each other.

I like to get your answer how Nepali times, and Its publisher can delink the economy, and politics in Nepal? If you want thats is only Nepali Maoists' way. You like it or not, without and economy or political freedom.

Posted on: 18 SEPT 2010 | 4:29 AM NST

7. jange
5. Dr B

Posted on: 19 SEPT 2010 | 5:28 PM NST

8. Kamal Kishor

Thanks Kanak! We really need to discuss this issue: is it possible? Should we do it? Will parties agree to it?

A parliamentary system is based on: independent judiciary, powerful and dejure parliament, a government accountable to people through majority in parliament, a bureaucracy responsible towards parliament through government, a non-political military and police, political parties based on peopleï¿½s movement, an independent non-political civil society movement and a watchful/vigilant population ready to come out onto street to warn the political process. Unfortunately, in the present equation none of the parameters defined above fit into the present political landscape/scenario.

The constitution should incorporate those points so that there is really a check and balance at all levels.

Posted on: 19 SEPT 2010 | 12:32 AM NST

9. Luba Svrcina

To Dr. B and Jange,

you are both right , just looking at a different side of the same coin.

Historically, the separation of politics and economy never worked.

The unbearable living conditions in czarist Rusia gave rise to the October Revolution and the subsequent takeover by the communists.

The colapse of European economy after the 1st World War eventually gave rise to Hitler and his Hitlerjugend and Nazi Germany.

In the former Eastern block countries, namely Poland and Czechoslovakia, it was the attempt of bringing in the reforms into a near-collapsing economy, which changed the course of the countries. First, the occupation of Czechoslovakia by the Soviet Union, then Glasnost movement in Poland.

It was the economic reforms of Perestroyka which brought down the empire of the entire Soviet Union.

Had Nepal been a prosperous country, Maoists would have never had a chance as there wouldn't have been any reason for their existence.

I think from this brief overview it is apparent that a failing economy is capable of causing a collapse of a political system. They are inseparably interlocked. Economy drives the politics and politics drive the economy. The greatest danger arrises when greed also steps into both. Beware !

Posted on: 20 SEPT 2010 | 11:04 AM NST

10. Dr B
7. Jange

"This is what 15,000 people were killed for. This is what the New Nepal is all about. Pity you cannot see the connection."

I think that 15,000 people were killed for POWER.

9. Luba

"Historically, the separation of politics and economy never worked."

To a great extent you are right, especially since the manner in which the economy is managed is wrapped up in the idealogy of the ruling party. For example in my own country there is a complete spectrum of economic management ranging from complete privatisation & free market forces through to nationalisation & state control depending on which party rules. But in both cases the economy IS managed; education continues, healthcare continues, water & power provision continues etc.

My point about Nepal was that "politics" in the shape of agreements, constitution forming, electioneering and so on has become a "profession" to these people. It's what they do, it's how they spend their days, as opposed to spending their days developing the nation and delivering the services their ministries are charged with.

Of course Nepal still needs a constitution, but does it really take two years to create an outline, show it to the people, amend it, try it out , adjust it ......? No, it damn well doesn't, but these politicians are getting away with a level of micro-mismanagement that makes me wonder what on earth you have to do to "qualify" as a failed state!

Posted on: 20 SEPT 2010 | 1:15 PM NST

11. Slarti
The world of internet discussion is full of theories and possibilities but seriously lacks inquiry. I would have expected the article to throw some light on how exactly this country has survived over the past four years despite the fact that there is no government in place.

The idea that politics should and could be delinked from politics is not about theoretical politics. I believe what Mr Dixit is trying to says is that the economy should be delinked from the whims of the political parties, not from politics. Because politics includes the entire governance framework and in the absence of that framework it is not possible for anyone to be certain of the long-term path, it is - in the current environment - not possible to delink the two.

Normally it is best that politics takes care of designing regulations in-line with peoples expectations and use its power to enforce the will of the country's constitution, i.e. provide a safe environment for everybody who agrees to live within the framework of those rules.

In absence of this hoarding and exodus of capital is high and fear prevents businesses from making investments.

The miracle of Nepal's survival is something that Prashant discussed earlier but like all good communists managed to obfuscate the issue beyond the possibility of any debate.

The fact is that there is rampant inflation in this country, most notably food inflation, at the wholesalers is 15% which means that prices of food items double every 4.7 or so years or less. Still, there is no violence or outrage, why that is happening is an interesting question. What people like Artha Beed do is that they look for someone to blame, I want to read people who can explain things clearly and reasonably well.

Further, we also have this opportunity to note the fact that an ordinary Nepali bureaucrat and a citizen has a much cooler head than the city intellectuals give them credit for. They understand that to expect anything from the politicians at the helm of affairs is useless. Instead they just choose to manage their own affairs.

What underpins this sense of responsibility, and what are its implications is a question worth pursuing. At least I would think so.

In my view all of this happens because more often than not, Nepali families and individuals are extremely mature and have rational expectations. But in absence of an overall - I don't know how to put this but I guess a national unity of purpose and - a lack of common destiny and common values and the fact that people are completely lost about the overall message with there everyday life and all their choices under persistent communist scrutiny and abuse.

The "rationality" is characterized by coming up with short-term solution individually and results in a largely fatalistic attitude in absence of a clear long-term path which only an organised state can provide.

I would really hope for someone to elaborate on these and other similar such issues by someone who is close to the ground.

It is also in the light of this that I would wonder if Mr Dixit should not spend a week with some household in Jumla or Nepalgunj or wherever else he fancies and find out how this really works. How a rational individual really manages to get by and find a life and manages to hold his family together. Potentially with someone as unpretentious as A. Gurung.

Sorry about taking up so much space as always.

Posted on: 20 SEPT 2010 | 6:51 PM NST

12. Arthur
As jange knows perfectly well most of the thousands of people that he mentions were killed, were killed by Nepal Army and "security forces" in order to preserve the corrupt system that has been unable to deliver development and remains unable to deliver development.

Adopting a new constitution will not in itself deliver development but it is part of the process of removing from power those people who have been unable to deliver development.

The alternative would be continuing the people's war until they are removed by force.

Blaming the Maoists for the "traditional" behaviour of their traditional opponents is quite pointless. Everyone knows it is the same old status quo parties behaving in the same old way.

Posted on: 20 SEPT 2010 | 7:10 PM NST