Tuesday, October 27, 2009
TREKKING (How And When)
Most of the trek routes in the Everest region have tea houses along the way. The routes to Everest Base Camp and Gokyo valley are perfect for teahouse treks. The trail in from Jiri is also endowed with many conveniently located teahouses although no match to their counterparts to the north where standards are high. Places like Namche Bazaar even have cyber cafes and regular pubs. The Annapurna region is comparable to the Everest region but not so the Kanchenjunga region, where camping treks are the only option. Other trekking routes will almost certainly require the use of tents and a support team to carry the food and equipment.
Trekking
Trekking is by far Nepal’s biggest attraction. Pioneered by Col. Jimmy Roberts in the early 1960s, most tourists embark on some trek or the other and many do multiple treks before heading back home. Some arrive each year to do a different trek each time. A trek is also the best means of seeing the country and to understand its people. Walking through emerald rice fields; through rhododendron forests; crossing streams, camping out on a hilltop in the wilderness with towering mountains in the background, make trekking an unforgettable experience.
One can also do pony treks in some remote places, which is equally enthralling for visitors. Pony treks are offered mostly in western region of Pokhara, Dolpo and Lo Manthang (Mustang).
The two most popular treks are the Everest Base Camp Trek and the Around Annapurna also known as the Annapurna Circuit as it goes right around the Annapurna range. There are many different treks offered in the Everest and Annapurna regions. Other popular regions are the Langtang valley, Helambu, Makalu, Manaslu, Kanchenjunga and the Arun Valley. Another popular destination in the Everest region is the Gokyo valley.
One can also do pony treks in some remote places, which is equally enthralling for visitors. Pony treks are offered mostly in western region of Pokhara, Dolpo and Lo Manthang (Mustang).
The two most popular treks are the Everest Base Camp Trek and the Around Annapurna also known as the Annapurna Circuit as it goes right around the Annapurna range. There are many different treks offered in the Everest and Annapurna regions. Other popular regions are the Langtang valley, Helambu, Makalu, Manaslu, Kanchenjunga and the Arun Valley. Another popular destination in the Everest region is the Gokyo valley.
Monday, August 24, 2009
Money matters
The government’s fiscal and monetary policies have recently been made public through the budget speech and Nepal Rastra Bank’s (NRB) policy announcement. Needless to emphasise, there should be close coordination between the two to achieve the overall objectives. The regional distribution of financial services has no real rural distributional decomposition and shows a skewed distributional pattern thus: eastern region 18.4 percent, central region 49.5 percent, western region 19.8, mid-western region 7.5 and far western region 4.6 percent. Moreover, the monetary policy has ignored the coming financial federalism and inclusive financial services with a rural vision with the exception of ritual recitation of microfinance, which will essentially be an important part of the emerging fiscal federalism within the framework of federal states.
The objectives of the monetary policy as specified in the NRB Act, 2002 remain as the bottom line to (i) Contain stability in domestic prices and balance of payments (ii) Secure financial stability and (iii) Support economic growth.
To achieve these objectives, NRB on the basis of relative controllability and predictability has opted for narrow money (M1) and broad money (M2) as the intermediate targets. In other words, the pass through effect of the monetary policy on the final objectives is transmitted through the intermediate targets.
The monetary policy document basically includes major policy stance, management of foreign exchange, external sector reform, financial sector regulation and supervision and the status of implementation of the previous year’s policy, among others. With minor exceptions a few times, major objectives like the growth rate and inflation are exactly the same in the fiscal and monetary policies and the monetary aggregates are estimated arithmetically to support the growth rate and inflation giving due computational role to income velocity.
Obviously, stability in inflation is difficult to attain through monetary policy alone since prices in Nepal closely move in line with Indian prices due to an open border, fixed exchange rate and India being a major trade partner as well as the various non-monetary phenomena related domestic prices and supply constraints. One can easily argue that Nepal would have to face a much higher double digit price rise had Indian prices not declined so sharply in recent months. It is equally important in the case of stability in the balance of payments for which the fiscal policy should strongly support through reasonable fiscal deficit, particularly government domestic borrowing. Similarly, the monetary policy can support the fiscal policy through financial services for economic growth where key factors like infrastructure and private sector-led growth are not sufficiently developed.
The trade-off between flexible and tight monetary policy stance in order to support the slow economic activity, impulsive financial stability, unstable price movements and risky enough external sector stability makes it difficult to achieve the multiple objectives resulting in a secure cushion concept of a cautious policy stance. However, there is no practice of making accountable on the basis of target/policy performance which would have commonly been taken as an acid test of the policy makers for the successful trading off among various objectives..
Obviously, there are some noticeable targeted policy plans in the current year’s monetary policy that include (i) Export import price indices (XMIP) to measure trade competitiveness (ii) Study of Nepal’s macroeconomic modelling under the TA of the Asian Development Bank (iii) Study of the identification of Indian currency in circulation in Nepal and (iv) Compilation of broad monetary surveys including development banks and finance companies. However, there are some structural and policy weaknesses in trading off and guiding the future direction in the monetary policy.
Nevertheless, a cautious tight monetary policy has been followed from last year. Moreover, it has been further tightened this year by reintroducing the statutory liquidity ratio (SLR) of 8 percent, 3 percent and 2 percent of the total domestic currency deposit for A, B and C category banks/institutions including the directed deprived sector credit programme of 3 percent, 2 percent and 1.5 percent of the total loans respectively. As such, the SLR itself, which is to be compulsorily invested in government securities, will block more than Rs. 40 billion of banks and finance companies at a relatively lower return by the end of the year unless there is a compensatory special SLR bond with a higher coupon rate.
In other words, such directed liquidity ratio and credit programme will help to reciprocate more than an equal impact on the increase in financial intermediation costs of banks and financial institutions leading to further concentration of credit in highly lucrative sectors and also a psychic discouraging impact on small depositors in particular and selective preference to big depositors in general. As a result, the spread rate, which is known as financial intermediation cost, could be unexpectedly larger since banks/institutions are free to maintain it.
The refinance/bank rate facility, which has remained an effective instrument in most of similarly placed economies, has virtually remained ineffective, though officially termed as an indicator of policy stance for the last many years in Nepal.
It is an open secret that illegal circulation of Indian currency within Nepal is a sensitive currency sovereignty issue. In the absence of a broad based empirically validated survey regarding the magnitude of the circulation of Indian currency in Nepal, it is obvious that the demand for Nepalese currency/money is overtly underestimated. As such, the money supply based on the demand for money neither reflects an accurate picture nor a sound base for the estimation of the impact on inflation and economic growth. One can hope that the proposed study will identify the size of the Indian currency in circulation and make use as a proxy for the estimation of monetary aggregates, where the monetary policy alone could not tap the Indian currency to banking channel. Presently, the estimation of monetary aggregates is underestimated, that is why it cannot accurately help to stabilize the price level.
Due to economic efficiency India could bear a higher interest rate which is difficult for Nepal to maintain. It is a very critical issue, though untouched in the policy papers, that until and unless economic activities can be retained and sustained, a higher interest rate will not be feasible in Nepal leaving more than enough room for capital flight to India due mainly to the interest rate differential.
Looking at the increasing size of both the number of financial institutions and their volume of transactions of many types of deposit money, the time is overdue to incorporate them in the monetary aggregates. Similarly, looking at the stronger relationship of monetary aggregates with income and prices, the savings deposit based on its withdrawal limit has to be segregated both in the narrow and broad money for ensuring their accuracy. Savings deposit based on its withdrawal limit is just like a semi-demand deposit which needs to be split into both narrow and broad money to ensure the accuracy of the measurement of narrow money.
In an inflation targeting country, the central bankers are known as price controllers. As such, to be on safe side and build up greater confidence, NRB has to be more transparent in expressing the limited impact of the money supply on the price level. For this, the core inflation, basically known as monetary phenomenon related prices, out of the overhead inflation should be identified so that the price stability target can be met more accurately. Similarly, NRB should convince the concerned authorities and hand over the job of collecting and processing the price data to uphold the theoretical ethic from the probability of manipulation for the sake of justifying targeted objective.
The mandatory book write-off policy for defaulted loans of banks and financial institutions should be followed by some mechanism like the establishment of Asset Management Company to ensure the recovery of defaulted loans as per international practice. However, in Nepal, the problem banks mainly Rastriya Banijya Bank and Nepal Bank Ltd. have gained the opportunity to transfer more than Rs. 27 billion to the write-off account as a sleepy gain of recuperation on the level of non-performing assets (NPA) without the support of a backup mechanism for recovery efforts.
Stop teasing
Gone are the days when women’s interests and desires used to be swept under the carpet. However, women’s activities still arouse unending criticism in the media. The other day, a man, the so-called Supreme Being, first sex, whom I bump into occasionally at social gatherings, told me in bewilderment, “Women nowadays are crowing cock-a-doodle-doo a lot, but do they have anything to say about their expenses and offensiveness at Teej functions?” I was taken aback to hear that. I couldn’t understand the rationale behind such attacks. Teej functions of elite women are hitting the news headlines. The men are harping on the same string that women have become spendthrifts, irresponsible and carefree.
I have also been regularly invited to Teej functions organized at my relatives and some organizations. But as usual, I had to turn down many invitations because of my problems and lack of interest. We had to organize a function last Tuesday at our home. Among our invitees were my sisters-in-law, cousins, sisters and some other relatives.
We feasted, danced, enjoyed and shared. It came out to be a implausible caring and sharing gathering. But at around 2:30 p.m., the dancing and feasting mass dispersed. I was so surprised to see that and kept pulling them back to the dance floor. But they were busy somewhere. Later, I discovered that they’re worried about their children. Some of them went to fetch their children from school, others were stuck to their mobile phones making sure their children were safely back home and yet others were packing stuff to feed their children.
There’re so many festive events for men which they enjoy to every extent. They can go to any lengths to get their desires fulfilled. Teej is a women’s fest when they fast for the good health and prosperity their husbands, but criticisms have soared to the skies. Dasain also didn’t bring the tradition of playing cards and drinking. As I remember, flying kites was our only tradition. They celebrate, but they know the limit, they don’t switch off their mobiles and go out of contact. They don’t keep their families waiting for dinner. The poor don’t only miss Teej, they miss other festivals like Dasain and Tihar too. The gap between the haves and have-nots is not produced by culture and tradition; it’s a result of unending corruption, political instability, lack of visionary policymakers and other circumstances. I attended some Teej functions, and I found the same care and sense of responsibility among the women.
In the editorial published in The Kathmandu Post on Aug. 18, an emerging worrisome trend has been discussed. It is said that women now have stopped dancing to special Teej songs of blissful wedlock and long lives for their husbands, but they’re dancing to songs demanding the right to elope (poyla janna paun). For your kind information, despite the troubles, I attended a number of the so-called lavish Teej feasts, but nowhere did I find women dancing to such songs. The songs being played were the usual “Teej ko rahara.., maiti…”. Before commenting on any issue, practical studies and observation are necessary. Truth is distorted, twisted and exaggerated in fun TV programmes like Tito Satya. Men don’t have to worry that their wives are fasting and feasting with the wish to elope.
Some organizations are hell-bent on throwing a spanner into talent exhibition contests which have provided a good platform for our intelligent girls. For a fine example, our Miss Nepal Sugarika K.C. is very talented and she is contributing to society in her own way. So far as I know about these contests, our girls don’t come onstage in bikinis. Then what is wrong with stepping on to the stage to express and perform what they have within themselves?
Women also need moments of joy. They also need celebrations. They need sharing and caring. But the money collected for such functions can also be used to help poor and needy women. So far as lavish Teej festivals being held at big hotels are concerned, the elite, whether they’re men or women, have already set the trend to organize occasional events at cosy and expensive venues. This is not unnatural or strange.
There will always be arguments as everything has merits and demerits, but we have to be committed to conserving culture and tradition without hampering others’ rights. We shouldn’t cause a sense of victimization among others. As Gopal Siwakoti said, we have all been happily engaged in a blame game. It’s true that we’ve to look a bit inwards and see what the lack is within ourselves. There’s a huge gap between words and deeds. If such views continue to go ahead, the battle of the sexes is bound to soar in the long run. We’ve still not liberated ourselves with old stereotypes. Can we show the guts and grit to redefine our cultural practices and stop the cat and dog brawls among ourselves? Society has undergone a sea change, but we’re still engaged in a blame game. And if women also come out of the mindset they are so entrenched in, they can make a difference; and they should stop prattling about jewelry, clothes and stuffs. Most of us have the wrong concept that the sole aim of education is to equip ourselves with qualifications to get a good job. But we’ve to learn to use it to choose between right and wrong.
I have also been regularly invited to Teej functions organized at my relatives and some organizations. But as usual, I had to turn down many invitations because of my problems and lack of interest. We had to organize a function last Tuesday at our home. Among our invitees were my sisters-in-law, cousins, sisters and some other relatives.
We feasted, danced, enjoyed and shared. It came out to be a implausible caring and sharing gathering. But at around 2:30 p.m., the dancing and feasting mass dispersed. I was so surprised to see that and kept pulling them back to the dance floor. But they were busy somewhere. Later, I discovered that they’re worried about their children. Some of them went to fetch their children from school, others were stuck to their mobile phones making sure their children were safely back home and yet others were packing stuff to feed their children.
There’re so many festive events for men which they enjoy to every extent. They can go to any lengths to get their desires fulfilled. Teej is a women’s fest when they fast for the good health and prosperity their husbands, but criticisms have soared to the skies. Dasain also didn’t bring the tradition of playing cards and drinking. As I remember, flying kites was our only tradition. They celebrate, but they know the limit, they don’t switch off their mobiles and go out of contact. They don’t keep their families waiting for dinner. The poor don’t only miss Teej, they miss other festivals like Dasain and Tihar too. The gap between the haves and have-nots is not produced by culture and tradition; it’s a result of unending corruption, political instability, lack of visionary policymakers and other circumstances. I attended some Teej functions, and I found the same care and sense of responsibility among the women.
In the editorial published in The Kathmandu Post on Aug. 18, an emerging worrisome trend has been discussed. It is said that women now have stopped dancing to special Teej songs of blissful wedlock and long lives for their husbands, but they’re dancing to songs demanding the right to elope (poyla janna paun). For your kind information, despite the troubles, I attended a number of the so-called lavish Teej feasts, but nowhere did I find women dancing to such songs. The songs being played were the usual “Teej ko rahara.., maiti…”. Before commenting on any issue, practical studies and observation are necessary. Truth is distorted, twisted and exaggerated in fun TV programmes like Tito Satya. Men don’t have to worry that their wives are fasting and feasting with the wish to elope.
Some organizations are hell-bent on throwing a spanner into talent exhibition contests which have provided a good platform for our intelligent girls. For a fine example, our Miss Nepal Sugarika K.C. is very talented and she is contributing to society in her own way. So far as I know about these contests, our girls don’t come onstage in bikinis. Then what is wrong with stepping on to the stage to express and perform what they have within themselves?
Women also need moments of joy. They also need celebrations. They need sharing and caring. But the money collected for such functions can also be used to help poor and needy women. So far as lavish Teej festivals being held at big hotels are concerned, the elite, whether they’re men or women, have already set the trend to organize occasional events at cosy and expensive venues. This is not unnatural or strange.
There will always be arguments as everything has merits and demerits, but we have to be committed to conserving culture and tradition without hampering others’ rights. We shouldn’t cause a sense of victimization among others. As Gopal Siwakoti said, we have all been happily engaged in a blame game. It’s true that we’ve to look a bit inwards and see what the lack is within ourselves. There’s a huge gap between words and deeds. If such views continue to go ahead, the battle of the sexes is bound to soar in the long run. We’ve still not liberated ourselves with old stereotypes. Can we show the guts and grit to redefine our cultural practices and stop the cat and dog brawls among ourselves? Society has undergone a sea change, but we’re still engaged in a blame game. And if women also come out of the mindset they are so entrenched in, they can make a difference; and they should stop prattling about jewelry, clothes and stuffs. Most of us have the wrong concept that the sole aim of education is to equip ourselves with qualifications to get a good job. But we’ve to learn to use it to choose between right and wrong.
A matter of life & debt
The year 2008 will be remembered as the first global financial crisis of the 21st century -- a once-in-a-lifetime crisis. Mortgage-backed securities and subprime borrowers in the US economy have been blamed for the current economic turmoil. Although high default rates and a sharp rise in delinquency have been held responsible for the havoc, the world still needs empirical evidence to correctly diagnose the matter.
In the United Kingdom, falling output has been blamed for the credit crunch, plummeting housing prices and rising energy costs. The way the British economy has contracted for the first time in 16 years indicates that the recession will inevitably continue, a period marked by a decline in trade and the economy, reduced profits for companies and closure of factories. It is almost certain that the economic downturn will last longer than expected. Usually, a recession lasts from six to 18 months if fiscal and monetary stimulus plans are put in place to offer loans at lower interest rates.
As mortgage-backed assets have lost their value, it is anticipated that banks and financial institutions in the world are likely to lose US$ 1 trillion from the credit crunch. There has been a dramatic decline in US housing prices for the first time since the 1930s. Big lenders are dangerously exposed to the high-risk loans market. The predicament is now spreading to emerging markets -- Russia, South Korea and Brazil. Some think a “hard landing” in the emerging markets may become the “second epicentre” of the global crisis. Not all banks are able to write off losses from bad loans. So there is a need for transparency to assess how bad the emergency is.
The causes and consequences of the global economic meltdown and potential corrective measures have become the priority agenda for discussion at global forums. The present crisis is the culmination of financial, exchange rate, business and human crises. The IMF's recommendations have brought disastrous results in many developing economies as they advocated premature capital liberalisation. As the world's most powerful financial markets are in chaos and symptoms of disintegration of the emerging economies have been noticed, many believe that the possibility of a global recession has been heightened. The IMF's special fund worth US$ 260 billion should be enough to rescue smaller nations. However, if the contagion spreads, the existing resources will be inadequate.
Argentina has nationalised 10 private pension funds by controlling almost US$ 30 billion worth of investments. In Brazil, government-owned institutions have been asked to purchase shares in private financial institutions. The Canadian government has earmarked US$ 21 billion for asset swaps. In Mexico, US$ 3.92 billion has been offered in loan guarantees for debt refinancing. Australia cut the interest rate by one percent and China by 0.27 percentage point. Japan, Malaysia, New Zealand, Singapore, South Korea and other countries have made immediate stimulus plans. Thanks to globalisation, not a single country has been left unaffected.
Nepal has a comfortable level of foreign currency reserves. Since the country's economy is integrated with India's, how badly Nepal will suffer depends on the performance of India's contingency plans. Instances of foreign institutional investors withdrawing foreign reserves from the Indian capital market have occurred. However, the recent rise in share values on the New York Stock Exchange presents a ray of hope. The Reserve Bank of India's standard regulation and meticulous supervision have been successful in maintaining capital adequacy requirements by prohibiting financial institutions from exceeding the given limits of exposure to the stock market.
In Nepal, the banking sector has made impressive progress. The interest rate spread is comparable to that in neighbouring countries. Banks are holding more funds than they are required to. The foreign exchange reserve presently stands at Rs. 177 billion, and the cash reserve of the commercial banks with Nepal Rastra Bank amounts to Rs. 24 billion.
Nepal is not directly connected to the troubled financial institutions abroad. From this perspective, there is no immediate threat to Nepal's financial regime. The closer the link, the grater the possibility of being affected. In terms of merchandise trade, about 80 percent of Nepal's readymade garments are exported to the US. Germany is the largest market for Nepal's carpets. This means that delayed financial recovery in these countries can have a negative impact on Nepal's export trade.
The crisis will also have a significant impact on the country's tourism sector. The US accounts for 5.9 percent and Europe for 25.7 percent of the total tourist arrivals in Nepal. Besides resulting in a fall in tourist arrivals, the credit crunch in these countries will certainly affect export trade, foreign investment and overseas development assistance.
Because of shrinking demand, there has been a massive slide in commodity prices on the global market. This translates into easy and cost effective access to industrial raw materials which can support the manufacturing sector and control inflation. The depreciation of the Nepali rupee against the US dollar should have a positive impact on exports, remittances and also tourism. But depreciation is also expected to increase the budget deficit by Rs. 1.9 billion in additional debt servicing burdens.
There is no record of the level of investments made by Nepali investors in India's capital markets with money borrowed from Nepal's financial institutions. India's share market index has declined by six thousand points between October 2007 and October 2008. The losers, if there are any, could default on repayments to Nepali banks.
Countries have different priorities. Victims of the global crisis are now working on limiting the damage than investigating its cause. In my opinion, Nepal's policymakers should now get ready to assess the loan portfolios of commercial banks. A rough estimate shows that real estate lending makes up about 10 percent of total lending. However, it is frightening to see that some banks with adequate liquidity have lent a significant portion of their money to real estate businesses. For example, the average loan exposure of the top three banks in terms of investment in real estate stands at almost 31 percent of their total lending volume. The authorities need to look into this seriously.
Remittances have increased by 42.5 percent this year and reached approximately Rs. 142 billion. It contributes 17.4 per cent of the GDP. The government should design and establish a special support fund to rescue overseas workers who could be displaced if there is a crisis in the countries where they are employed. This should be the approach in an inclusive democracy.
In the United Kingdom, falling output has been blamed for the credit crunch, plummeting housing prices and rising energy costs. The way the British economy has contracted for the first time in 16 years indicates that the recession will inevitably continue, a period marked by a decline in trade and the economy, reduced profits for companies and closure of factories. It is almost certain that the economic downturn will last longer than expected. Usually, a recession lasts from six to 18 months if fiscal and monetary stimulus plans are put in place to offer loans at lower interest rates.
As mortgage-backed assets have lost their value, it is anticipated that banks and financial institutions in the world are likely to lose US$ 1 trillion from the credit crunch. There has been a dramatic decline in US housing prices for the first time since the 1930s. Big lenders are dangerously exposed to the high-risk loans market. The predicament is now spreading to emerging markets -- Russia, South Korea and Brazil. Some think a “hard landing” in the emerging markets may become the “second epicentre” of the global crisis. Not all banks are able to write off losses from bad loans. So there is a need for transparency to assess how bad the emergency is.
The causes and consequences of the global economic meltdown and potential corrective measures have become the priority agenda for discussion at global forums. The present crisis is the culmination of financial, exchange rate, business and human crises. The IMF's recommendations have brought disastrous results in many developing economies as they advocated premature capital liberalisation. As the world's most powerful financial markets are in chaos and symptoms of disintegration of the emerging economies have been noticed, many believe that the possibility of a global recession has been heightened. The IMF's special fund worth US$ 260 billion should be enough to rescue smaller nations. However, if the contagion spreads, the existing resources will be inadequate.
Argentina has nationalised 10 private pension funds by controlling almost US$ 30 billion worth of investments. In Brazil, government-owned institutions have been asked to purchase shares in private financial institutions. The Canadian government has earmarked US$ 21 billion for asset swaps. In Mexico, US$ 3.92 billion has been offered in loan guarantees for debt refinancing. Australia cut the interest rate by one percent and China by 0.27 percentage point. Japan, Malaysia, New Zealand, Singapore, South Korea and other countries have made immediate stimulus plans. Thanks to globalisation, not a single country has been left unaffected.
Nepal has a comfortable level of foreign currency reserves. Since the country's economy is integrated with India's, how badly Nepal will suffer depends on the performance of India's contingency plans. Instances of foreign institutional investors withdrawing foreign reserves from the Indian capital market have occurred. However, the recent rise in share values on the New York Stock Exchange presents a ray of hope. The Reserve Bank of India's standard regulation and meticulous supervision have been successful in maintaining capital adequacy requirements by prohibiting financial institutions from exceeding the given limits of exposure to the stock market.
In Nepal, the banking sector has made impressive progress. The interest rate spread is comparable to that in neighbouring countries. Banks are holding more funds than they are required to. The foreign exchange reserve presently stands at Rs. 177 billion, and the cash reserve of the commercial banks with Nepal Rastra Bank amounts to Rs. 24 billion.
Nepal is not directly connected to the troubled financial institutions abroad. From this perspective, there is no immediate threat to Nepal's financial regime. The closer the link, the grater the possibility of being affected. In terms of merchandise trade, about 80 percent of Nepal's readymade garments are exported to the US. Germany is the largest market for Nepal's carpets. This means that delayed financial recovery in these countries can have a negative impact on Nepal's export trade.
The crisis will also have a significant impact on the country's tourism sector. The US accounts for 5.9 percent and Europe for 25.7 percent of the total tourist arrivals in Nepal. Besides resulting in a fall in tourist arrivals, the credit crunch in these countries will certainly affect export trade, foreign investment and overseas development assistance.
Because of shrinking demand, there has been a massive slide in commodity prices on the global market. This translates into easy and cost effective access to industrial raw materials which can support the manufacturing sector and control inflation. The depreciation of the Nepali rupee against the US dollar should have a positive impact on exports, remittances and also tourism. But depreciation is also expected to increase the budget deficit by Rs. 1.9 billion in additional debt servicing burdens.
There is no record of the level of investments made by Nepali investors in India's capital markets with money borrowed from Nepal's financial institutions. India's share market index has declined by six thousand points between October 2007 and October 2008. The losers, if there are any, could default on repayments to Nepali banks.
Countries have different priorities. Victims of the global crisis are now working on limiting the damage than investigating its cause. In my opinion, Nepal's policymakers should now get ready to assess the loan portfolios of commercial banks. A rough estimate shows that real estate lending makes up about 10 percent of total lending. However, it is frightening to see that some banks with adequate liquidity have lent a significant portion of their money to real estate businesses. For example, the average loan exposure of the top three banks in terms of investment in real estate stands at almost 31 percent of their total lending volume. The authorities need to look into this seriously.
Remittances have increased by 42.5 percent this year and reached approximately Rs. 142 billion. It contributes 17.4 per cent of the GDP. The government should design and establish a special support fund to rescue overseas workers who could be displaced if there is a crisis in the countries where they are employed. This should be the approach in an inclusive democracy.
BANNING BANDHS?
Nepal’s political parties both in power and in the opposition have after long last come to an agreement of sorts that frequently called Nepal Bandhs by some political party or the other have proved to be a nuisance and moreover, a harassment that the general public have patiently borne for more than a decade. They have therefore, in principle agreed to ban bandhs as a form of street agitation. Why this sudden concern for the hardships that the people face and have faced almost on a daily basis for the last decade? The answer is not hard to find. The spate of recent Nepal bandhs has not only doubly obstructed traffic in several parts of the country but also the functioning of the government and the overall state machinery as well.
However, the million-rupee question is whether such a law can really be formed or accepted by the general populace, as it would certainly go against democratic norms and values. Even if such a provision is made, whether in the constitution or elsewhere, would the political party/parties in power in the future have the political will to implement it and take stern action against the political parties or other groups defying the ban as a form of protest to fulfill certain demands? The moot question arises from the fact that bandhs and chakka jams in this country, at least till now, seem to be the only means effective enough to have demands fulfilled. The political parties whether in power or in the opposition know this very well and so do other groups.
Lest we forget, it was the major political parties, the Nepali Congress, UML and Maoists who pioneered this ‘effective’ and ‘ingenious’ form of agitation in the country’s not so distant/democratic past. In a way, it is a fact that bandhs are by default an effective means of making the government sit up, listen and fulfill demands made by the agitators by using the plight and difficulties of people at such times and holding them to ransom.
The callers of bandhs, whether political parties or other such groups, without mincing words have this to say: "though we are in principle against bandhs, holding up traffic and causing difficulties and hardships to the people at large, we are compelled to resort to such tactics and forms of protest as it is the only language those in power understand. Sad to say, but it is the only way to make them listen and seriously look into our demands." As a recent chakka jam supporter put it: "If we agitate peacefully and in non-violent fashion, the government will not pay heed and just ignore us and our demands as well. In fact, they will just dismiss our protest/demands as ‘democratic rights of groups and individuals’ and turn the other way. This has happened in the past and is bound to happen again if we resort to peaceful and non-violent means."
In a way, the argument does carry some weight in the sense that peaceful demands in the past have not proved fruitful. Only when people are held to ransom and used as human shields do those in power sit up, listen, call the agitators to the negotiating table and come to an understanding by fulfilling at least some of the demands. This has been the trend if not a strategy employed especially, by political parties, their sister wings/organizations, whether by students or labour unions and other politically affiliated groups to exert pressure on governments. Against such a backdrop, it is somewhat hard to imagine that just by passing a law against bandhs and chakka jams that political parties/agitating groups in the opposition will be cowed into reverence and meekly resort to non-violence and peaceful means in future to achieve their ends.
Moreover, if such a law against bandhs is to be formed and come into effect, there should also be some kind of requirement, condition or guarantee on the part of the political parties or government(s) in power that a non-violent protest will be looked into with equal and immediate urgency. Whether the major political parties, the architects of bandhs in this god-forsaken country will be ready to fulfill this part of the obligation on their part is a question that is making the rounds. "If they do so for now as part of the deal, and turn the other way when the crunch comes, which is quite likely, would it not compel us the agitators in turn to resort to violence and start the cycle of bandhs/chakka jams/ and holding the people to ransom begin all over again" put in a bandh supporter?
Though these are hypothetical questions and possible scenarios as of now, should there be a law passed against bandhs/chakka jams, the fast eroding reputation, and double standards of major political parties, their petty bickering, one-upmanship, indulgence in power politics etc. will almost certainly bring it to naught the moment it comes into effect. Before passing such a law, those striding the corridors of power as of now ought to realize that the crippling culture of bandhs that this unfortunate country experiences and has experienced almost on a daily basis is not only an outrage to humanity but a direct outcome of the failure and non-performance of successive democratic governments that this country has seen to date.
It might be somewhat naïve on the part of those in power to think that a law banning bandhs and hoping against hope that disgruntled, determined and violent groups taking to the streets to fulfill just demands will in future suddenly turn docile and readily comply. It will as a matter of fact be tantamount to or as wishful as the disillusioned people of Nepal asking, if not pleading with politicians/ leaders of political parties to perform and deliver for once, give the people a better deal, bring in peace and ban bad governance once and for all!
However, the million-rupee question is whether such a law can really be formed or accepted by the general populace, as it would certainly go against democratic norms and values. Even if such a provision is made, whether in the constitution or elsewhere, would the political party/parties in power in the future have the political will to implement it and take stern action against the political parties or other groups defying the ban as a form of protest to fulfill certain demands? The moot question arises from the fact that bandhs and chakka jams in this country, at least till now, seem to be the only means effective enough to have demands fulfilled. The political parties whether in power or in the opposition know this very well and so do other groups.
Lest we forget, it was the major political parties, the Nepali Congress, UML and Maoists who pioneered this ‘effective’ and ‘ingenious’ form of agitation in the country’s not so distant/democratic past. In a way, it is a fact that bandhs are by default an effective means of making the government sit up, listen and fulfill demands made by the agitators by using the plight and difficulties of people at such times and holding them to ransom.
The callers of bandhs, whether political parties or other such groups, without mincing words have this to say: "though we are in principle against bandhs, holding up traffic and causing difficulties and hardships to the people at large, we are compelled to resort to such tactics and forms of protest as it is the only language those in power understand. Sad to say, but it is the only way to make them listen and seriously look into our demands." As a recent chakka jam supporter put it: "If we agitate peacefully and in non-violent fashion, the government will not pay heed and just ignore us and our demands as well. In fact, they will just dismiss our protest/demands as ‘democratic rights of groups and individuals’ and turn the other way. This has happened in the past and is bound to happen again if we resort to peaceful and non-violent means."
In a way, the argument does carry some weight in the sense that peaceful demands in the past have not proved fruitful. Only when people are held to ransom and used as human shields do those in power sit up, listen, call the agitators to the negotiating table and come to an understanding by fulfilling at least some of the demands. This has been the trend if not a strategy employed especially, by political parties, their sister wings/organizations, whether by students or labour unions and other politically affiliated groups to exert pressure on governments. Against such a backdrop, it is somewhat hard to imagine that just by passing a law against bandhs and chakka jams that political parties/agitating groups in the opposition will be cowed into reverence and meekly resort to non-violence and peaceful means in future to achieve their ends.
Moreover, if such a law against bandhs is to be formed and come into effect, there should also be some kind of requirement, condition or guarantee on the part of the political parties or government(s) in power that a non-violent protest will be looked into with equal and immediate urgency. Whether the major political parties, the architects of bandhs in this god-forsaken country will be ready to fulfill this part of the obligation on their part is a question that is making the rounds. "If they do so for now as part of the deal, and turn the other way when the crunch comes, which is quite likely, would it not compel us the agitators in turn to resort to violence and start the cycle of bandhs/chakka jams/ and holding the people to ransom begin all over again" put in a bandh supporter?
Though these are hypothetical questions and possible scenarios as of now, should there be a law passed against bandhs/chakka jams, the fast eroding reputation, and double standards of major political parties, their petty bickering, one-upmanship, indulgence in power politics etc. will almost certainly bring it to naught the moment it comes into effect. Before passing such a law, those striding the corridors of power as of now ought to realize that the crippling culture of bandhs that this unfortunate country experiences and has experienced almost on a daily basis is not only an outrage to humanity but a direct outcome of the failure and non-performance of successive democratic governments that this country has seen to date.
It might be somewhat naïve on the part of those in power to think that a law banning bandhs and hoping against hope that disgruntled, determined and violent groups taking to the streets to fulfill just demands will in future suddenly turn docile and readily comply. It will as a matter of fact be tantamount to or as wishful as the disillusioned people of Nepal asking, if not pleading with politicians/ leaders of political parties to perform and deliver for once, give the people a better deal, bring in peace and ban bad governance once and for all!
Sex Is The Most Creative Action: Nayanghare
Laxmi Prasad Devkota and Shankar Lamichhane were pioneers in Nepali essay writing. They experimented and popularised personal essays. Yubaraj Nayanghare followed their footprints. But he has carved out his own niche in the field with his own distinct style. He has shown his craftsmanship in playing with words. His use of marvellous language and original words, short yet figurative sentences and analytical approach have made him the powerful essayist among his contemporaries.
He talked to The Rising Nepal and revealed his tastes and preferences.
Why do you write?
I think it is my duty. By writing, I am serving to language and nation.
What inspires you for writing?
Social and political anomalies push me for writing.
How do you define literature?
Any melodious line or remark that touches the heart of the readers is literature. It should combine the elements of philosophy, art and music.
What kind of relationship is there between life and literature?
Their relationship is like a nail and meat in human body. It makes people more cultured and rational. Now literature has been started to be used to treat the psychiatric patients. Upon hearing a good piece of literature, a patient recovers from the disease.
Why are you attracted to travelogue writing?
Many people visit many places but they forget about them. People have their right to be informed about the country. As a writer, I inform them about the places I visit through my works.
What thing do you think is lacking in Nepali literature?
There is not sufficient writing on zonal or regional themes. For example, no one has written a biography of a shepherd living in the hill or a Mushahar in Terai.
What is sex?
Sex is the life’s the most fertile, the most delicious and the most creative action.
Which part of women most attracts man?
All but I think lips are more erotic.
Is there necessary for literature for having elements of sex?
Yes. But it should be presented in an artistic way. There should not be vulgarity.
Who is your favourite Nepali writer?
There are many. If I have to choose one, I choose Krishna Dharabasi. I appreciate his experimental style, new subject matters and the use of mellifluous and simple language.
Who is your most liked political leader?
B.P. Koirala. I like both his philosophy and literature.
How do you feel seeing the plight of the country?
It makes me painful, stoical and dreary. I feel disgusting seeing our politicians.
Anything else to comment?
I visited some countries but none is beautiful than Nepal. Except politics, everything is fine here.
He talked to The Rising Nepal and revealed his tastes and preferences.
Why do you write?
I think it is my duty. By writing, I am serving to language and nation.
What inspires you for writing?
Social and political anomalies push me for writing.
How do you define literature?
Any melodious line or remark that touches the heart of the readers is literature. It should combine the elements of philosophy, art and music.
What kind of relationship is there between life and literature?
Their relationship is like a nail and meat in human body. It makes people more cultured and rational. Now literature has been started to be used to treat the psychiatric patients. Upon hearing a good piece of literature, a patient recovers from the disease.
Why are you attracted to travelogue writing?
Many people visit many places but they forget about them. People have their right to be informed about the country. As a writer, I inform them about the places I visit through my works.
What thing do you think is lacking in Nepali literature?
There is not sufficient writing on zonal or regional themes. For example, no one has written a biography of a shepherd living in the hill or a Mushahar in Terai.
What is sex?
Sex is the life’s the most fertile, the most delicious and the most creative action.
Which part of women most attracts man?
All but I think lips are more erotic.
Is there necessary for literature for having elements of sex?
Yes. But it should be presented in an artistic way. There should not be vulgarity.
Who is your favourite Nepali writer?
There are many. If I have to choose one, I choose Krishna Dharabasi. I appreciate his experimental style, new subject matters and the use of mellifluous and simple language.
Who is your most liked political leader?
B.P. Koirala. I like both his philosophy and literature.
How do you feel seeing the plight of the country?
It makes me painful, stoical and dreary. I feel disgusting seeing our politicians.
Anything else to comment?
I visited some countries but none is beautiful than Nepal. Except politics, everything is fine here.
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