Employment Guarantee Act – a castle in the air.

-          BP Badal

Background

Guarantee of the employment for the unemployed youth of Nepal will be a boon and a remarkable milestone of economic development. The general objective of employment guarantee act is to address the burning problems of potential youth force and unemployed skilled, semi-skilled and unskilled human resources of Nepal.  Almost 400 to 450 thousand youths come to employment market every year and 40% of them will be the migrant worker in Arab and Malaysia.  Remaining 60 % of them are wandering hither and thither in search of Job.  This is a very dangerous situation if the force turned into violent retaliation, before that government must act now to mobilize the force in rural development of Nepal.  Unemployment of the youth until now is not a problem further it is storage of the force of human resources to utilize in production and mobilization.  A good plan can transform the reserved force in productivity.  The principle of taxation says if government collects tax, it must guarantee the security of its people. As tax is financial- term and job income is also the same.  Thus, it proves that job security is tax security.  Of course only employed pays the tax.  To get job is to get food, shelter and thought and it is human right.  As it is assured in our interim constitution, also so the government must respect the human right by providing right job-right to its citizens.  Governments must asses and address the issues of unemployment in a common platform to mobilize them in productivity otherwise; it might turn toward the crime to fill the sinful stomach. Hunger never compromises it retaliates and leads to destruction.

                To manage the hunger, scarcity, unemployment and inflation in economics is possible only with optimum utilization of available resources. Peace in society prevails by basic level of satisfaction in progressing pace.  Peace and stability are sin qua non, for economic development and that is only possible from job creation.  15 years back, if all 30,000 PLA had good job and satisfaction before the recruitment they would not join the platoons.  In addition, it would not be necessary for the Maoists movement and massacre of 15,000 people. Frankly, it was not a political problem but a severe economic problem.  It is a prime time, to address the unemployed youth force, which may/might move toward another revolutionary movement.  It is an admirable initiation of government to crack the nutshell had identified the core problem of unemployment.

Problems

Dr. Bhattarai led government is more populist than substantive. Mustangs, Mapase, hello sarkaar, etc are the major example of it. The employment guaranty Act looks another big plot of popularization with the ambitious plan. Is it possible to create 100% job guarantee?  Government must place the bases to trust it.  It must present the practical policy and strategy. Even we do not have local government and mechanism to evaluate and estimate the number of unemployed people.  We do not have any tool, technique, methodology and mechanism.  Europe and America are suffering from 12% to 24 % of unemployment rate with current financial crisis and PM's commitment of employment guarantee is not more than a populist's attempt.  First government should have a clear system mechanism to how where when who and whom the program will take place.

Dr. Bhattarai's expression in an interaction with Unemployed Youth Association shows that he was skeptical with his own political compatriots and asking full support to forge the consensus. We lack the positivity of others' deed and the negativity in politics is very high.  It is natural to oppose by the opposition so they are in opposition.  A warrior never hesitates so he should move ahead without any care as the first elected communist PM late MM Adhikary in his nine months tenure and successful program Build Our Village Ourselves (BOVO). It was also a very populist program but it was able to install the strong foundation of development in people's mind.

It is true that he does not have long time to stay on the chair. One declaration will be sufficient for public welfare through prime ministerial mechanism. This time constrain should not be the problem of each PM for the betterment of the people. He must declare his plan and ideologies without any fear of plagiarism. If the employment guarantee act is applicable and indispensable he has to present it to the people. Others may or may not copy it and carry on. Some can copy it but cannot steal.  Mentality of intellectual misery and intellectual poverty in professionalism with greed has ruined many theories, principles and ideologies. Dr. Bhattarai himself as an intellectual must be free from such poor mentality to explore his doctrine to fill the empty stomach of people.

While planning, a project a planner must plan about its sustainability and applicability in course of implementation. The plan of employment guarantee act must be applicable, sustainable and award winning otherwise it will be a castle in the air and another popular move of a popular government. Since last few months, it seems that the credibility of PM is sinking toward straight below. His enthusiasm, readiness, activeness and boldness are in dim. He has to continue his positivity toward the people in full on offing the employment guarantee act. The act (Plan) should carry system, mechanism, tools and resources.

Prospects

Human Resource Inventory system (HRIS) of government is a mechanism that evaluates, calculate and implement the demand and supply of human resource. A joint commission of National Planning Commission (NPC), labor, local development and finance ministries, governs this system with the scientific data-updating module of Central Bureau of statistics (CBS) and monthly Human Resource Inventory report of village development committee (VDC) and district development committee (DDC). Every VDC/ DDC must have a bench or a department to carry out the functions of demand and supply of human resources with the rural development experts. Rural Development Ministry in India had lunched Mahatma Gandhi National Rural Employment Guarantee Act in 2005. It was enacted all over the India in 2008. It is one of the hidden influential factors of 8% growth rate in recent years.

It is economically viable because minimum wages and taxes are also collected and disbursed in local level. Mason, plumber, electrician, laborer, carpenter, teachers, nurses, social workers etc unskilled and semi skilled work force can be supplied by a VDC/DDC.  Human resource inventory department of DDC will demand and supply the skillful work force.  It will minimize the human resource recruitment cost of business enterprises. The employer has to pay 60% amount to the employee, 20 % taxes and 20% insurance premium that 60 % must cover the minimum wage to survive. If a person has job s/he will get 60 % and if s/he does not have job the insurance company will pay 40% from his/her 20% saving in insurance as an unemployed allowance. The ultimate saving will be the retirement pension fund. Insurance companies have to play the vital role to invest the collected fund in local level and it creates more jobs.

We have excessive level of supply but demand is very low. It is necessary to create job demand in local level it is also possible because the insurance company who wants to work on this project must invest substantial amount in village. That investment must create minimum of 10% of job demand. Another most important factor is peace and stability that government and all other political parties must have common agenda and accord in financial policy as in foreign policy.  The assurance of peace and stability with business friendly environment will increase foreign investment, NRN's contributions and remittances in productivity. However, grants and subsidies will be a curse on it so government must prohibit it because it ruins the mechanism and increases the dependency. There should be a clear mutual multilateral agreement among, government, VDC/DDC, Insurance Companies, Employers and employees. As much as the job demand increases, the insurance companies will be in profit so they will pull or create more jobs.  Increasing unemployment rate in Europe is the main cause of European financial crises. They do not have much investment area that is already developed but in our case we have, so many areas are still underdeveloped.  10%-balanced growths in 10 years will be a turning point. Therefore, without any hesitation government has to lunch the program.

Conclusion

Employment Guarantee scheme is a necessary move to encourage the humiliated unemployed youth toward the development. It generates equal employment opportunity, social equity and harmony among the dwellers with multiple identities. It is more social issue than economic one. Dr. Bhattarai as a former finance minister must be able to convince other political parties with strong determination and commitment to implement the policy of employment guarantee. It is not necessary to pass in red book of finance ministry.  It is very simple and applicable it is not a castle in the air as expressed in the title.

A sense of class-consciousness

-BP BADAL

The sweetest memories of childhood school days are the best period of human life. A child is a father of future man. Child has future and hopes to be grown up. All of we have to grow up and up gradually.  As a member of middle class family, I had to join the government school in Sanepa.  The lust on opportunities and education had attracted a pool of rural people in urban Kathmandu. Our class was a good example of countrywide inclusion and reciprocity. Our class was full of full of caste with mutual respect and tolerance. The class was a good example of all citizens living together around the country as in Kathmandu.

                Among us, four of we were the best friend furnished with four colors of caste.  We were close, caring, loving and kindhearted to among all. We did lots of fun. We studied and shared everything together.  Our intimacy was so close that even in Saturday we had to fix certain programs because it was very difficult to pass a day without meeting each other.   Steps by steps we grew up to teen-age. When the word 'teenage' comes in mind, it strikes the heart.  It takes back to the journey of love of our lives. Sweet, sensational, and romantic teenage is the experience of first love.  It was an autumn of our life.  We as all of we crossed the age with feelings and sharing our romance and love each other. We used to talk about then purposing methods, writing love letters, following, glaring and teasing girls in our that stage of life.  We used to get pee in queue with fun.  Of course, we used to share our tiffins together. We used to share it in a big newspaper that was a combination of Himal Pahad and Tarai.  It used to be a great party with, chhoila, wo, musya, khorna, torma, yam, yomori, potato, bodi, tama, sel, puri, kasar, roti, lakhamari, sya bhele, urim, khir, dahichamal etc.

                With lots of fun, romance and difficulties we were succeed to have relation with our girlfriends. Our team became more inclusive and strong. Our girlfriends were good cooks and used to bring the cuisine in our enjoying picnic and parties. Culinary arts and food culture of Nepal is very diversified and related with caste and ethnicity. Now days all of we together visit Newari, Indian and Tibetan restaurants to taste the variety of foods attached with culture ethnicity and symbolism.  Along with these foods  we celebrate  festivals of Himal Pahad Tarai, like Chhath, Holi, Udhauli, Ubhauli,  Sakela, Buddha Jayanti, Maghee,  new year, Dashain, Dipawali etc. altogether with great importance. The food of each festival used to be our school-tiffin.  After school life our tastes were also diversified we learned to booze.  Tadi, Chhanj, Jand, Aila, Airak, Thon, Tomba etc. were our special drink. Whatever we used to get we had to finish it until a last drop.  Chhoila was best among our girlfriends. They used to bring very fresh and hygienic Tarkari, Achar and Masu in our get together.

                As a modern young heart, we had mentally judged that politics is a dirty game. We assumed politics is a game of poly tricks or ploy trick. However, we had a complete sense of politics.  We used to talk about the great revolution of 1990, first tenure of GP Koirala, murder of Madan Bhandari, dissolve and formation of house by GP Koirala, Royal massacre, Pajero scandal of sherbahadur and Maoists war. Who killed Madan Bhandari?  It was a consequence of dirty game plan of politics. We had noticed baseless proud of GP Koirala to dissolve and reform of parliament. Who killed family of king Birendra -Gyanendra, political parties, or Dipendra?  It is still in mystery.  Sherbahadur criminalized the politics by establishing great trading of lawmakers.  Jumbo Ministry and pajero scandals were the example of criminality.

                The worst era of politics began when the Maoists war was out broken by the malfunction of unpopular leaders. 15,000 lives were sacrifice for nothing and no one has taken the responsibility.  When Gyanendra kicked GP Koirala, went to join the throat with Maoists. Unholy and unreal relation with Maoists was the temptation and thirst to be the first president of Republic Nepal.  Constitution assembly has been dissolved with the same temptation of Prachanda to be the first executive president of Nepal.   Maoists are two steps ahead among other political forces. This scenario has witnessed a shift of debate from class to caste.

                Our conclusion was true and finally proved.  We cannot trust them because they are unsuccessful. They shift the debate on caste that we cannot tolerate. None of the older leaders will win in coming election.  There is vast different between identity and caste but in the name of identity they imposed the dishonesty and enemy among the caste and nationalities. We cannot tolerate the caste division; all of we want to live together. We want to live as we were in our sweet teen school days.  We want same love and harmony among all our team. We are fine but our elders are trying to manipulate and teaching us about our caste as our identity.  I finally request to all stakeholders of my country to preserve my childhood memories, love, mutual respect and harmony among us.

 

Transitional Economy

-BP BADAL

Money is what that money does. Money is the reward of laborious hard work. Money is not everything but it is something for daily requirements. Scarcity of money creates opportunities to earn more and its abundance shows the channels of expenditures. Both the situations are favorable for economic growth, as we know absence of Laxmi (wealth) is greater than her presence because she teaches so many lessons in her absences.

            Due to the unbearable pain and uncertainty of transition period, country is suffering from different socio- political problems. These problems have directly affected the Nepalese economy. It is felt in market that the smooth flow of cash is diminishing due to the series of strikes and bands. Such horrendous situation is very close to misbalance the social harmony and integration.  Denizens are clashing with denizens in unnecessary issues of different ethnicity and identity. In this 21st century democracy and equality is the fundamental right that no one can cease it.  Ultimate bottom line to sketch justice or injustice among different groups should measure on the balance of democracy as if the constitution will be for the people and by the people. Identity is not right it is a capacity. It is not political debate but it is related with deeds and activities to be a good citizen.

            It is not a time to demand integrated but extended Nepal.  Diplomatically, our leaders must be able to return our motherland back from India in Sugauli treaty.  Our house is burning in spite of settling it we are fighting for this and that room among brothers. Nobody knows when and where the band is called. The organizers themselves do not know the demand of Band. Normal life is seriously crippled.  Loss of hopes and frustrations are prevailing everywhere. Economic activities are in stagnant. Strikes have disgruntled the pace of economic performances pushing the country in crises. At present Nepal has to suffer 1.5 billion per day. It has also seriously affected the share market on Nepse index.

            The government had projected 4.5 % growth and inflation in 7% but this situation obviously influence adversely.  Due to the strike and sufficient flow of input materials cost of production of industries are increasing an in other hand peoples purchasing power is decreasing.  As the banks and financial institutions are reluctant to invest in country's development projects, they are not being able to mobilize their deposits where as banks' daily expenditures are increasing. From this reason, the flow of cash in market is limiting, people and investors are reluctant until May 27.  It has directly affected government's development projects, foreign investments and Nepal Investment Year 2012/13.

            As our political leaders are seriously working out to promulgate the constitution on stipulated timeline, our foreign diplomatic missions are highly active and in this busy schedule of leaders, they were able to meet our leaders.  What types of suggestions they provided to our leaders would be the relevant questions at this time. Meanwhile American Ambassador Scott H. De Lissi was appeared in a program, ' The Nepali Economy – Challenges and Potential' organized by Nepal Economic Forum. Mr. DeLisi has recommended few noteworthy economic tips on transitional journey with lots of optimistic parameters.  Nepal must be able to address the right policies and leadership for the next decades that the opportunities to get double-digit economic growth will not far.  Transitions are always tough but Nepal can go through this. It has three major economic challenges.

            Firstly, Nepal has to integrate its economy in worldwide arena. It has to start the competition with the regions like with Lakhnaw, Patna, Lasha, Calcutta, including Beijing and Delhi for new market and new opportunities.  It must carefully think about its competitive advantages in today's globalized economy. It has to be hanging free as a yam or sandwiches between two neighbouring economic giants for seeking new economic opportunities. We have to think and act logically not emotionally. Diplomatically we should be able to raise our issues clearly. Secondly, we are in Investment year 2012/13 and trying to attract foreign investments. From those investors' perspectives, they want stability and predictability in economic policies and regularities in decision-making. Investors always look alternatives so they are watching Bangladesh, or Cambodia, or Burma, or Uganda along with Nepal.  Therefore, Nepal must be able to create conducive and reliable environment inside the country to promote the business and economic activities. At least Nepal should be the best among other developing countries. Our leaders must think to create confidence to investors and assurance of their capital payback. Finally, we must adopt modern business culture, we must perceive profits, investments and capitals are positive terms that are essential for economic development. We have to adopt global business environment.  Business needs professional business managers and transparency in accounting system.  Our labour unions must work to promote business and welfare of workers not for political parties. Stability of domestic labour market is also very important issue of emerging investors in Nepal.

            The turning point of Nepali history on 27 May is approaching. If optimisms work, Nepal will get her long awaited constitution to prevail peace everywhere. After the statue leaders has to finalize the deadline of general election to end the volatile transition.  At this critical time, they must set an example to the world that after South Africa Nepal is a successful country, even though constitution is just an agreement of power sharing and division.  Actually, constitution should be in culture, norms, and values Just a paper does not work. Optimum utilization of resources with scientific allocation and economic development Nepal can change her face in new Nepal.  Federalists have not concentrated on its resource share and allocation among states. Nepal has achieved what Nepal has to achieve from political revolution, it is a crucial time to plunge into economic revolution. It is possible by making a common platform of Delhi and Beijing in Kathmandu as a transit point of trade rejecting all kind of master slave mentality.  Nepal has to break the relation of fixed rate of exchange between IRS and NRS. Nepalese economists can calculate demand and supply of foreign currencies to fix the currency rate.  Nepal must be able to safe her currency. The whole country is not dependent on monetary policy how federal units  will be independent and sustainable?