Strengthening domestic economy

All the government undertakings have been spoiled in the present loot-tantra. The present corrupt political system, bad governance, nonfunctioning of the anticorruption organs, government intervention, and discouraging policy initiated by the government are the main reasons for being spoiled the government undertakings.

In other words, Nepal adopted the broker based economy, which has destroyed local industries by leading the country towards an import-based economy.

Today, the developed countries are protecting their local industries, whereas, Nepal like a developing country is compelled for adopting the free-market economy. The main reason for widening the gap of exports and imports and widening loss on foreign trade is the freemarket economy.

Now, it has been proved that a mixed economy is appropriate for a nation like Nepal. If the government cannot develop effective monitoring and check and balance mechanism, the private sector will loot the nation as well as the consumers. Just last week, we read a story that how the Bajaj motorbike assembling company in the country is looting the consumers even by enjoying a heavy discount on imports of the spare parts from the government. The owners of the company are found taking profit margin of above 100 thousand to 150 thousand rupees per bike. The locally assembled bikes are being sold in the market at the same price as those imported bikes. The government is taking only 35 percent of customs duty and excise duty on such bikes whereas, those bikes imported from foreign countries are subjected to pay above 100 percent customs duty.

During the Panchayat days, the government-run sugar factories were paying the price of the sugarcane in advance to the farmers. Today, those sugarcane farmers are not receiving their money against the supply of the sugarcane to the factories for years. The farmers are compelled to launch an agitation demanding the payment of their sugarcane. Should we call it socialism?

Anyway, the government should think about protecting national industries, in the meantime, the government should invest and run different industries by itself with the plan of intervening in the market. Earlier, the commercial banks operating under the government investment were ruined very badly. Later, by introducing some reform measures, they have been rescued. Similarly, one can hope, the government undertakings can recover their health if necessary reforms are introduced by the government also by ending the present practice of political interference.