Scrutinizing Nepal-China economic relation

According to Foreign Investment Opportunities 2009 Report, produced by Government of Nepal, Ministry of Industry and Ministry of Commerce and Supplies, the main objectives of Nepal economic diplomacy are to enhance the flow of foreign direct investments (FDIs) into the country, to promote Nepal’s export trade and attract greater number of tourists to Nepal. Therefore, there is a need to anatomize the Nepal-China economic relation and study to what extent Nepal has achieved in line with these objectives.

Scenario of Nepal-China Economic relation

The investment scenario of Nepal-China relation is marked by Foreign Aid and Foreign Direct investment (FDI). In the fiscal year 2011/12, Development Cooperation Report (DCR) suggests that China holds 12^th position out of more than 19 foreign partners contributing 2.8 percent of the total US$ 1.21 billion. In was 16^th in the chart with 1.7 percent share of US$ 1.21 billion in the fiscal year 2010/11.  

Today, China is the second largest country after India in FDI. The Industrial Statistics Report of the Fiscal Year 2010/11 says there were 69 Chinese industries with 1187.40 million rupees foreign investment creating 3066 jobs for Nepalese. In total, 209 foreign industries from 36 nations injected 10050.71 million rupees as FDI which collectively generated 10887 job opportunities. Chinese FDI, unlike other countries, are made in seven major Sectors (Industries) in Nepal which are Agriculture (10), Construction (1), Energy (1), Manufacturing (13), Mineral (2), Service (27) and Tourism (15).

Service sector is primary sector of investment for Chinese investors. 27 industries under this sector have been established so far creating 1143 job opportunities for Nepali labors. Manufacturing sector receives maximum foreign investment, 351.10 as compared to other sectors. Also, this sector is providing 666 job opportunities which is next big number after service sector.

Two Worlds

Jared Diamond, in his book Guns, Germs and Steel talks about the roots of inequalities in the world. Human beings have been continuously developing their capabilities to achieve more food, good shelter, long life, wealth and prosperity. For instance, 13,000 year ago, hunters and gatherers had to travel from one place to another looking for new food sources. Later, human beings discovered that these food sources could be controlled. They domesticated both plants and animals, and brought the food sources back home. However, this transformation was not as easy as expected, because their close interaction with animals invited diseases. With diseases came more challenges, and innovation began to flourish to overcome the challenges. With innovation came technology, with technology came power, and power led to wealth and prosperity.  Therefore, power in today’s age of globalization has been defined in terms of economy, and economy is determined in terms of growth. In the process of growing, developed countries have continuously been engaged in expanding their wants, desires and necessities, while poor countries are still struggling with basic needs. Prosperity became uneven, and consequently, some parts of the world (say North) are richer than others (say South) at present. KITERUNNERGROUP6.BLOGSPOT.COM In recent years, poverty has become the favorite word, both globally and regionally. Huge global fund has been invested in least developed regions and impoverished societies to fight poverty. World Bank, International Monetary Fund and Asian Development Bank are some of the major caretakers of the process. But is it possible to get rid of poverty?

Youth Stay Independent

The Interim Election Council in Nepal is calling on ‘fresh’ Constituent Assembly (CA) election soon this year while the minor parties outcry over four parties-led CA proposition. Whatever the outcome of the power talk may be, the reality stands in its place that both the major and minor parties combined, are responsible for the unconstitutional landing of our country and the demise of the previous CA.

While one group impels people to go for election, others demand the opposite. Where does the problem actually lie? And what are we, the people, suppose to do about it? Also, can fresh CA election alone guarantee a new constitution? 

In my opinion, the problem lies in the very understanding of democracy. Democracy in Nepal has been guided by power-centric politics rather than the people. The unhealthy tussle within and between parties have turned people as mere voting objects. Hence, the need to reinstate the essence of democratic norms and values into societies is very much needed. Conducting elections and chanting democratic slogans would mean nothing if the people are not the ones who are on the deciding front.

In such a scenario, youth have a major responsibility and their participation can bring about a change to the whole movement.