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16 May 2008
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Living with the Dragon and the Tiger

The world is busy exploring ways to tap the economic opportunities China and India, two countries emerging to be the world’s economic and technological hubs, offer. But Nepal’s ruling elites, as always, are engaged in alliance formations, in the politics of blaming and in playing these two countries on and off against each other without any regard to the nation and its people.

While trying to outsmart each other, they seem to have ignored the fact that regional and international powers continue to develop political interests towards their country, which could bring in chaos. Perennial political disorder and other negative consequences Afghanistan suffered and continues to suffer were all because of the deep opposing political / strategic interests of the United States and the former USSR.

If the political elites realized that we had a vast and growing market in our yard, we would have enabled Nepal to move out of poverty. Our efforts should have been in creating a conducive atmosphere for trade and investment so that these regional powers and other international powers would have been interested in Nepal for economic reasons rather than political ones.

Had the regional powers’ economic interests been at stake in Nepal, we would have got rid of this political mess we are in long time back; the regional and other international powers would not be saying that the Maoist problem is Nepal’s internal problem and that Nepal is capable of solving it, ignoring the fact that without their blessings, a solution to the problem seems to be elusive. Had our economy been integrated into the global economy like Sri Lanka's, we would have had an international mediator with no strategic interests.

The higher the economic interests a country can draw from the regional powers, the lesser the chances of political instability. But our failure in economic development has resulted in the failure of not only resolving the conflict but also protecting human rights with no solution on the horizon. Foreign aid might have been successful for donors, but it has turned out to be an economical and social failure in Nepal.

Nepal’s long-term interests require warm ties with both India and China. Nepali political elites need to understand that in an increasingly interdependent world, nationalist or isolationist thinking can be the worst enemy of the nation and its interests. Instead of fearing our neighbours, it would be wise if we feared being left behind. We should move forward based on the principles of mutual trust, harmony and cooperation rather than on the legacies of distrust and dispute. For that, we Nepalis should remain united and have a collective voice.

No country ever makes another country great. It is up to our leaders, people and the policies we bring in. Nepal can still be in the game of business because of its comparatively low wages and proximity with India and China, if it can ensure stability, the rule of law and developed human resources.

Companies worldwide have shown an increasing tendency to acquire a strategic position in markets. For companies based in China and India, Kathmandu can occupy a strategic position. Nepal can be a place for the relocation of low skilled production processes from these relatively high wages countries. Economic partnerships, though limited, with these giants will be a source for advanced technologies and better managerial practices.

What Nepal needs to start doing is: develop soft power, ideas and knowledge. Investing heavily in education and knowledge skills means making ourselves qualified enough to tap the fruits that our neighbouring countries and beyond offer. Costa Rica, which abolished its army in 1949, is the third most competitive outsourcing destination in the world, after China and India. It is because their education was planned ahead.

Before the 1990s, Nepal’s foreign policy seems to have been determined according to the interests of the Kings of Nepal. And in the post-90s, it was based on the interests of the ruling political elites. After 2005, it is again based on the king's interests. Our political elites never stood by principles, as a result Nepal constantly failed to pursue a foreign policy, which could both safeguard its national interests and expand common interests with other countries.

It is time we dismantled the elite-centred foreign policy which gives in to the pressure of external vested interests. There is much at stake in saving Nepal from collapse and misery. We can redefine the fate of Nepal only if we are able to lift our eyes to the horizon, and grow and work together with these two neighbouring countries, which are nurturing the dream of dominating the earth.

SOURCE: Kantipur Online

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