On/Off the Record
By P.R. Pradhan
The country’s economic observers have tried to draw the attention of the policymakers saying that the present trend of the economy is not on the proper track and it may invite an economic crisis in the country. Our Finance Minister Janardan Sharma, on the other hand, is saying that the critics are intended to defame the government’s economic policy. Sharma said that those critics are keen to see Nepal becoming another Sri Lanka, which is facing a serious economic crisis, but Nepal will never become another Sri Lanka.
Sharma, at a time when Nepal’s foreign currency reserve has declined to an alarming level, is claiming that there is enough reserve of local currency in the government coffer. If we lack foreign currency, the local currency will be useless as we cannot import goods. To import goods, we need foreign currency and the local currency cannot help to bring foreign currency into the country.
The economic situation has reached an alarming level as the gap in the foreign trade deficit has been widening. If such a trend will prolong further and if our citizens working in the foreign countries will not send foreign currency to their homes, if tourist arrival will not increase and if other sources for earning foreign currency will not become effective, we are going to face acute shortage of the foreign currency in the days to come.
Efforts for earning foreign currency are essential, in the meantime, we must reduce the size of imports of the luxury goods, and we must facilitate local industries substituting imports. More than that, we must think about reducing non-productive sector expenditure – feeding those political employees from the government treasury. We don’t need such a large number of people’s representatives in the federal parliament. We don’t need provincial assemblies, provincial governments and other provincial organs. We don’t need 753 local bodies, which has to be reduced to around 500.
When we will be able to cut down general sector expenditure, we can make funds for infrastructural investment, from which, the present problem of liquidity crunch can be ended.
Therefore, for ending threats to the economy, we must abandon the present political system which has become a white elephant for the nation.
We are passing through a very crucial phase in global history. We are watching the Russia-Ukraine war. The USA is making all efforts to isolate Russia from the entire globe. Indeed, the present war between Russia and Ukraine is the real war between the USA and Russia. The main intention of the USA is to make weak Russia even by destroying Ukraine. A large number of Ukrainian people are dying, hundreds of thousands of Ukrainian citizens have left their homes and taken asylum in different European countries. Ukraine has been totally destroyed but the Ukrainian President is being projected by the western media as a hero. The cost that Ukraine is paying just for its wish to become a NATO and EU member.
Decades after placing Nepal as a non-priority nation, the US has extended hands of cooperation with Nepal either through the MCC grant or through the USAID grant projects. We are debating on whether MCC is a project under the Indo-Pacific Strategy or not but, along with ratification of the MCC grant from Parliament, we are under the American grip. Tomorrow, during the reimbursement of the fund spent by Nepal on MCC, the Americans may create the question of transparency, good governance, and economic liberalization, among others. Then, the Nepal government will have to obey one after another terms and conditions put forward by the USA.
If Nepal will become the vocal of the USA, surely, our two giant neighbours will make their eyes big. If we neglect the security concern of the giant neighbours, surely, we will be inviting a diplomatic crisis. Our leaders have no capacity to avoid such a crisis as they have not become serious about the geopolitical security strategies performed by the powerful nations.
Neither we are capable to face the threats to our economy, nor are we capable to face the geopolitical strategies performed by the powerful countries as we don’t have good homework and we don’t have a national consensus on these important issues.
Leadership without a future vision cannot protect Nepal’s interests.
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