You Reap What You Sow

There have been a lot of outcry from Nepal and around the world against Monsanto in Nepal. Here are a few articles and videos from various sources to make you better aware...

• Slok Gyawali, et.al. write about the lack of tranceparency in the Monsanto deal between USAID and GoN. They start with the protest that they observe outside the U.S. embassy:  

A three-layer queue of people with banners above their heads and red and black tapes covering their mouths are marching. Across the road a few meters away, the square brown facades of the American embassy can be seen as well as a line of two dozen or so policemen clutching onto their batons, halting the protestors from going any further. Disgruntled protesters complain against impediments to their right to protest. “Aafnai desh ma aafai hidna napaune? (Why can’t we walk in our own country?)” one of the protestors yells, amid the crowds."  

• USAID Nepal's website has put out an update on "Hybrid Maize Project, " where they mention the need to increase food production and a little scary phrase of "food-security" but conviniently leave out the word Monsanto from the update. 

We believe such discussion is healthy but wish to clarify that no new programs have been entered into by the US Government with the Government of Nepal to introduce hybrid maize seed as some articles suggest. We have discussed options with the government, but no decisions have been made yet. We continue to work with the Ministry of Agriculture and hope, through President Obama’s Feed the Future initiative, to be able to support a wide range of activities intended to foster greater agricultural production and food self-sufficiency in Nepal.

• On Mero Report, MadhuSudhan Guragain writes that Monsanto seeds have been allowed to come to Nepal since last year.

अमेरिकी बहुराष्ट्रिय कम्पनी मन्सान्टोले विकसित गरेको मकैको बीउलाई नेपाल भित्र्याउन हुन्न भनेर विरोध चलिरहँदा सरकारले गत वर्षबाटै सो कम्पनीको बीउलाई दर्ता गरेर ल्याउन दिइरहेको खुलासा भएको छ ।

•  Anil Bhattarai writes about the complexity of soil ecology and sustainable farm practices.

Protesting a bad company or a bad project, although very important, is limited when it comes to actually promoting ecologically sensible and productive farming practices. Just because we know a company such as Monsanto is in the business of bad business, or some specific development projects are promoting bad agriculture, this does not mean we have an adequate grasp of what constitutes good farming practices.

And finally here is a video discussing the issues related to Monsanto with Dr. Vandana Shiva

Beggars Can't Be Choosers

It came to light today that Nepal Airlines Corporation(NAC), a government owned and operated airlines in Nepal, has requested “eight planes from the northern neighbor as a grant.” The story from eKantipur quotes Krishna Hari Banskota, Finance Secretary at the Ministry of Finance as saying that “if it is not possible as a grant, we have also requested China to provide a soft loan.”

This is the state of the government run airlines in Nepal—it needs to beg for planes!

Now, when one begs for gifts, one loses the right to complain or receive any compensation for any faults with the gift. In other words, one might be stuck with a long bill on repairs and other expenses if the gift is faulty. It seems like the officials at the Ministry of Tourism and Civil Aviation and Ministry of Finance have discounted these possible future costs. Even if China donates brand new planes (highly unlikely) to Nepal, this story demonstrates the colossal failure of the NAC. It is highly inefficient, lacks the trust of the flying public, and is “incurring Rs 50 million in losses annually from each aircraft serving the remote sector.”

It is high time that we dismantle the NAC!

This can be done in phases and in partnership with private air carriers to have little or no impact on employment. In an industry that has grown with the entry of private carries, NAC’s existence only hinders the improvements that are possible in air travel in Nepal. It takes teh government away from the actual job that it should be doing--making travel safe and secure.The government should move away from trying to provide flights and concentrate more on improving the infrastructure to support the industry. The increase in crashes in recent years and the damage to the runway in Kathmandu are some examples of the failure of various government bodies associated with air travel and tourism. It is also an indication of the bigger problem of corruption in the Nepali public sector.
Getting new planes, whether for free or for a “soft loan” from China, ignores the underlying problem at the NAC, drains the national treasure, while postponing the inevitable.

How quickly we forget the Lauda scandal!

The Prakriti Project

Where would I be at 5pm on November 15, 2011 if I was in Kathmandu? That's easy--I would be in Gyaneshwor at the Fulbright Commission Auditorium. The Fulbright presentations are well researched and very interesting and I would like to encourage you, if you are in Kathmandu, to attend. The details of the program is posted below from the e-mail I got from Fulbright.

F U L B R I G H T F O R U M

" The Prakriti Project:
A Pioneering Synthesis of Newari Repoussé and Contemporary Painting"

Speaker - Ms. Maureen T. Drdak, Senior Fulbright Researcher of Art

Date - Tuesday, November 15, 2011
Time - 5:00 p.m.
Venue - Fulbright Commission Auditorium, Gyaneshwor

Abstract
Taking its name from the Sanskrit word prakriti, signifying both physical matter and the primal creative force that shapes it, Maureen Drdak’s Prakriti Project is the first synthesis of contemporary painting and the metal art of traditional Newari repoussé, a technique in which sheet metal is hammered from both sides to produce a three-dimensional bas-relief.

Drdak is working both at her studio in the Patan Museum, and in the Patan atelier of contemporary master of Newari repoussé, Raj Kumar Shakya, to continue and advance her study with Raj Kumar's brother Rabindra Shakya. Both men are grandsons of the venerable Kuber Singh Shakya, the acknowledged historical master of repoussé. The Kuber Singh Shakya family lineage of artists and scholars, patronized by the Malla rulers, is traceable back to Abhaya Raj Shakya, founder of the Mahabouddha Temple in 1601.

The significance of The Prakriti Project lies in the creation of a genuinely new art form resulting from the mergence of specific materials, artistic practices, and cultural traditions. It represents a unique contribution to the vocabulary of the visual arts, evidencing the unexplored contemporary applications of this venerable and ancient art form, addresses the relevance of qualitatively endangered material techniques to contemporary art practices, and furthers the dynamic expansion of cultural boundaries and the ongoing artistic and cultural dialogue between the Asia and the West. It serves as a model for future investigations of the expressive potential for contemporary art inherent in Nepali traditional practices.

Drdak is creating a major artwork demonstrable of this synthesis, to be exhibited at Siddhartha Art Gallery in Kathmandu in January 2012. She will exhibit jointly with her guru, Rabindra Shakya, in order to exemplify the linkage between master and student, traditional legacy and contemporary form. Drdak’s work, Flying Nagas, takes as its theme the protective serpent deities of the Kathmandu valley; among the Naga’s many powers and blessings is the ability to alleviate drought--a growing problem for Nepal--beset as it is by the accelerating effects of global warming. Closely associated with the health of the environment, and symbolic of the integration of opposites, the Naga is a beloved and powerfully relevant symbol for Nepal and for this project, one which speaks with authenticity and eloquence to the Nepalese people and to their current environmental concerns.

Drdak explains her work and its genesis, introduces the audience to the repoussé form and process, its contemporary masters, and presents her work progress to date. A Power Point presentation rich in visual imagery and photos will accompany her presentation.

Economics of Terrorism

Nobel In Economics

As you may already know, Christopher Sims and Thomas Sargent won the Nobel prize in Economics this year. I have decided to post this video of the presentation by Dr. Sims to give you an idea of his work, but mostly because of my interest in DSGE models.

Agriculture Investment in South Asia

Here is an article on agriculture investment in South Asia, published on SAWTEE's Trade Insight (Vol.7, No. 2, 2011) written by Ghintang Economics' own Shreesh Bhattarai. I have posted a brief paragraph from the article below. If you want to read the entire article please click here (PDF) and scroll down to page 27.

South Asian economies rely heavily on the agriculture sector. For instance, in 2000, the share of value added of agriculture in gross domestic product (GDP) was approximately 25 percent in South Asia. However, the region has seen a steady decline in this figure in the last decade. The share of value added of agriculture in GDP was only 18 percent in 2009. This is a result of structural changes as countries have transitioned into more manufacturing- and service-friendly economies. The agriculture sector has also been an important source of liveli- hood, especially for the poor, in South Asia. In 2008, it employed about 60 percent of the labour force in the region, contributing 22 percent of the regional GDP. 

Continue to read the entire article on page 27 of SAWTEE's Trade Insight.

"Demoting The King, Debating Dasai"

I wish I was in town to be able to attend this event--it sounds very interesting. Fulbright presentations are a good opportunity to learn about topics related to Nepal being conducted by Fulbright fellows. I was able to attend one when I was in Kathmandu this past summer presented by Ms. Kerry Brown--I must confess, I learned a lot about Newari Buddhism and the significance behind the various statues and temples around  Kathmandu valley.

Below you will find the  info sent to me by the Fulbright Forum about the upcoming presentation. The event is free and open to public, however, make sure to bring a photo identification with you. 

Please comment on this post and tell us more about the presentation and your experience if you attend the event. Thank you. 

Speaker -  Ms. Anne Mocko, Fulbright Alumnus

 

Date      -  Wednesday, October 12, 2011

 

Time      - 5:30 p.m.

 

Venue    - Fulbright Commission Auditorium, Gyaneshwor

 

 

Following the 2006 Janandolan, the Interim Government undertook a
program to dismantle Nepal's monarchy and transition the country from a
Hindu kingdom to a secular republic. This process was complex and plural,
and touched on issues ranging from the leadership of the army to the design
of banknotes. One of the most complex and contentious issues, however,
was the government's move to appropriate the king's ritual roles: the
performative, traditional, religious practices that had marked the king out
as a unique social actor.

One of the most interesting set of debates surrounded the Interim
Government's challenges to the king's celebration of Dasai, a debate which
required the state to untangle which of the rituals were the king's private
family traditions and which were national occasions. The debates over Dasai
during the Interim Period -- and the continuation of formerly-royal
practices during the post-Interim Period -- thus challenged the Interim Government's policy of ritual appropriation and replacement, and in the continuing context raise questions about the possibilities of retaining traditional practices in a context of institutional change.

Anne Mocko is a PhD candidate at the University of Chicago. She has been
researching and writing her dissertation, "Demoting Vishnu: Ritual, Politics, and the Unmaking of Nepal's Monarchy," since 2007. She was a Fulbright- Hays research fellow in Nepal for 2009-2010, and is back in Nepal for a brief follow-up research trip.

Who is Looking Out For You?

The Consumer Court that the government of Nepal is creating is a positive step towards a safe and fair business environment, which is crucial, not only for the safeguard of consumer rights, but also for a vibrant economy. Due to the very high (% of income) transaction costs for any consumer to bring a suit against a business, there has to be proactive government inspections for this program to succeed. I am sure that it will be a learning experience and many kinks will be ironed out as they come up.

All in all, I think it was high time Nepal had a system in place to protect the consumers. Let's just hope the body stays independent and doesn't get bought out by special interests!

शुभकामना!   

Happy Birthday!

It is exactly one year ago that we started Ghintang! In this past year we have been able to do quite a few things.We changed our name 3 times (Economist Jetha to Ghintang Economics to Ghintang) :) Changed the design of the website 2 times (I do not even want to think about the all-black background!).

We have (in this one year) been involved in 2 projects (all voluntary) with more in the pipeline. Ghintang is involved in a project to bring drinking water to a school in Mulghat, Koshi, Nepal. We are also assisting the deaf students in the school with supplies, blankets & pillows, and other personal items. The project, a joint venture with PTK Students and Rotary clubs of Kasthamandap and Fort Collins, will also renovate the hostel for the disabled children.

Then we brought the idea of Mr. Om Prakash Shrestha to life with Ghintang Dreams. Ghintang Dreams was able to renovate a barber shop of a local Kathmandu entrepreneur and provide him with support to make his business competitive.

I would like to thank all the volunteers, supporters, and well-wishers of Ghintang.Thank you! All this would not have been possible without you all.  
 
Let's pledge to do more for those less fortunate than us!
 
Sincerely,
 
Arthabeed.

Monkey See, Monkey Do

Someone recently asked me to explain the roller coaster in Wall-Street and other stock markets around the world. To tell you the truth, I find myself wondering the same thing as I watch "experts" on CNBC or  other financial talking heads on TV. "Markets went down because the Republicans blocked what the president offered," says one pundit, while another yells out (with crazy sounds one normally associates with a local fair) "no, the market is going down because the market does not like regulations and uncertainty." After listening to all the reasons ranging from economic issues in Ireland to Dick Cheney's book as possible causes of the ups and downs in the stock market, what is an economist to do? I just turn off the TV and walk away- opportunity cost of throwing the remote at it would be too high!

So, what is the main reason? Who knows? I told the person asking me the question "to go ask a psychologist!" They might have a better idea about animal spirits.

Then, I thought of this video from TED.

The Great Deception--Roshan Kissoon

Here is an article written by Mr. Roshan Kissoon, "a freelance journalist who lived in Nepal for two years working with the Maoists, first as an English teacher in the PLA camp in Chitwan, and then as a copy writer for the Nepal Maoist English journal 'The Red Star.'"  in its entirety. It is an interesting read. The article was sent to me by a friend and I have not been able to find an online link to it, yet. I will post the link as soon as I find it.

The Great Deception In Nepal

By Roshan Kissoon

06 September, 2011

A strange event has taken place in Nepal, in which the Maoists have assumed the leadership of the new government with a neo-liberal political and economic program. Dr. Baburam Bhattarai, leader of the rightist trend, is now Prime Minister. It is also strange that the Peoples Liberation Army has now handed over its weapons and will be disbanded, generously aided by various international donor agencies and the usual friends of peace. But most strange is the change in the Maoist leadership of Chairman Prachanda and Dr. Baburam Bhattarai since they entered the peace process.

Prachanda’s strange path

Chairman Prachanda and Dr. Bhattarai have gone from heroic revolutionary leaders to rather common high caste Brahmin politicians in expensive suits, watches and ties. They went from speeches about smashing the state and Cultural Revolution to promises about millennium development goals and private finance initiative. What happened?

Marxism-Leninism-Maoism-Prachanda Path was the official ideology of the Nepali Maoists, and was to be the union of the Soviet and Chinese models of revolution; the Maoist peoples war with Leninist urban insurrection. Prachanda Path was Maoism synthesised for Nepali conditions; Prachanda Path was said to be a zigzag path, one that goes from left to right to left to right to confuse the enemies and play them off against one another. So, the Maoists would play the royalists against the bourgeoisie and the bourgeoisie off against the royalists; play India off against China and China off against India, and then to play the UN off against the US. In the party itself, Prachanda would play the left winger Kiran against the right winger Bhattarai, one time supporting Kiran, another time Bhattarai, all the time advancing ahead. Prachanda was thought of as the master strategist, with a secret plan, and in some ways this is true. But Bhattarai is now the Prime Minister, and it is his line the party are following, as they have been since the end of the Peoples War.

"Good Reads"

• Rajju Malla Dhakal, an insider of the foreign aid apparatus in Nepal, discusses the various issues surrounding the donor-recipient relationship and the effectiveness of foreign aid. My Op-Ed a while back touched on some of the same issues and I am glad to see that people from within the aid-development nexus are blowing the whistle! 

• Nepal's first PM with a PhD signs a proposal to "chart out a stringent anti-corruption bill. Let's keep our fingers crossed.

• Mukesh Khanal, an economist at the Institute for Integrated Development Studies, discusses the free-rider problem (amongst others) related to the proposed federalism in Nepal.

• Kul Chandra Gautam provides friendly advice to the Prime Minister Dr. Baburam Bhattarai and lists "10 essential things" he must do to succeed. Number one on the list is to "reassess the Marxist-Leninist-Maoist ideology in the 21st century."  

From An Economist, Without Graphs and Charts

Ouch! As an economist, what Mr Anil Bhattarai wrote did hurt-but, what he is pointing out is true. Most economists take the traditional methods and processes as the panacea to all our development issues. However, I would not lump all economists as being “dangerously delusional” or using “selective statistics and concocted graphs.” I would argue that there are many economists who are doing good honest work and have strong academic and methodological approach to their analysis.

To be fair, all the possible ventures that economists told the Bookworm participants are not nostrum as Mr. Bhattarai calls them. In fact, most of the things on the “long list” are actually pretty good ideas and make a lot of economic sense—although, I could do without the cement factory. The problem, as I see it, and I think Mr. Bhattarai is trying to get at, has to do with "how to" not "what to." The list is valid. However, how to go about achieving those goals is, and should be, of concern. So, yes, we should look into exploring “minerals with the Chinese help” and growing “fruits and vegetables for the growing middle class in India,” but do so in a way that is sustainable and has minimal negative impact on local ecology and culture. And, yes, we should promote regional tourism and get the Indians and Chinese “to visit our beautiful mountains or sacred temples and monasteries,” but do so while following the guidelines for eco-tourism so as to create a sustainable system. In other words, we need to have a “systems thinking.” We should not engage in economic activity just because it provides us with a short run profits with complete disregard to social and environmental factors. Doing so will most certainly cost us much more in the long run--all the negative issues Mr. Bhattarai points out about India and China will become our own!

So, I do think the list is valid and do not criticize the economists for correctly pointing them out. But, I agree with Mr. Bhattarai that the local leaders, economists, and developers have to think outside the box and come up with new ways of doing business. We need to focus on development methods that promote sustainability, equity, and preservation of local traditions and cultures, while trying to capitalize on “enormous advantage of growing prosperity in our vicinity.”

May be a presentation on various alternative economic/business models could be a program that Bookworm can put together.

India's (Economic) Influence in Nepal--Deux

Previously I posted a graph showing the overall contribution of all major donors to Nepal's most recent budget. If one looks carefully through the tables it becomes clear that India has a big impact on Nepal's finances. This is true for both grants and loans when you look at bilateral financial transactions with nation states--The World Bank is the biggest donor on the non-nation category. 

Nepal Rastra Bank, in its recent Monetary Policy (2010-11), points out that the sale of US $ in order to buy Indian Currency (IC) went up by 40% between 2008/09 and 2009/10. This action was taken "in order to finance the huge trade deficit with India." 





NRB also reports that the imports from India on direct payments of US dollar "witnessed sharp increase to Rs. 45.59 billion from Rs. 28.87 billion in the corresponding period of the previous year." They point to the depreciation of the U.S dollar against the IC as one of the reasons for this reaction.

Having all this data in front of us should make it easy to comprehend the economic and political influence India exerts on Nepal. With all the financial, political, geographic, and historical ties India has been meddling in Nepal's business (for better or for worse) for, well, ever! This fact, perhaps, is something that Nepalis are uncomfortable with and find it offensive when someone lumps Nepal with India.

However misguided, offensive, and sad the recent "Taslima Nasreen incident" was, what I mentioned above may have been the reason for some Nepalis to tweet vile remarks towards her. I, for one, gave her "F" in regional geography (she is originally from Bangladesh- a member SAARC country) and went to the library to find her book.

Good Night!  

Too Good To Be True?

MyRepublica reported that "Nepal has recorded an astonishing 18 percentage point decline in absolute poverty in the six years between 2003/04 and 2009/10." The third Nepal Living Standard Survey 2010 is set to be released by the Central Bureau of Statistics in late August. The report is also said to have found a decreasing gap between the rich and the poor--the Gini-coefficient is said to have dropped "to 0.35 from 0.41 recorded in the second NLSS."

To be sure, this is very good news. However, the reality on the ground just seem very desperate as one travels through the country. We will have to wait until the full report is released to see what methodology and definitions were used and how they went about their analysis.

The article mentions that a person is categorized as being under the poverty line if s/he earns less than Rs 14, 430 (about US $ 200) per year. This is the amount that the person needs to consume "2,200 calorie per day" and pay for "other essential non-food items." Now, if you live in Nepal or have visited in recent months, it is outrageous to think that one can live a "not-poor" lifestyle with a mere Rs 14, 430! Have you looked at the prices of some of the staple foods for the Nepali people?

Again, this is great news if it is the trend. Moving in the positive direction, however small, is an important accomplishment. However, let's wait to see what the full report has to say before jumping up and celebrating--the stories on the ground just don't seem to warrant a celebration! 

Perhaps we need to redefine poverty!  

Shout out to Mr. Shreesh B. of Korbel School of International Studies, University of Denver, in bringing this story to my attention.

Withdrawal Issues

eKantipur.com reported this morning that even though the tourist arrival has increased this year the overall tourist spending has gone down. I do not know what the reason for this is --it could be the economic slowdown that the rest of the world has suffered, it could be that more students came to Nepal as opposed to families on vacation--it could be a number of things. However, there is one thing that I can say for sure (from my own experience) is hurting tourist spending-- withdrawal limits at ATMs. 

I was in Nepal this summer with a group of American tourists and saw the negative impact of this limit on tourist spending first hand.  Most banks' ATMs around Kathmandu had a limit of NRS10, 000 with a few exceptions (ATM near City Center) of NRS 15, 000 per withdrawal on foreign cards. This means that every time an American, say with a CHASE debit card, withdraws money in Nepal, CHASE charges $5 per transaction. This may not seem like a lot, however, no one wants to pay such high fees. I can tell you that this amount was enough to deter me and many of my group members from multiple withdrawals. This in turn made us go around Kathmandu--Pokhara--Chitwan on a "pseudo budget," reducing our discretionary spending.

I do not know why the banks (may be NRB) would have such a limit on foreign cards--it makes no economic sense! Increasing the limit, or better yet, removing it, will increase the amount that tourists will withdraw and spend, not to mention have a positive impact on the nation's foreign reserves. 

Nepal Unites Against Corruption

First, let me be clear--I am a supporter and a well-wisher of NepalUnites and its various efforts around Nepal and the world. I was an active participant in their programs at Khullamanch, Durbarmarg, Bagmati-Pul, etc. However, I speak-up whenever NepalUnites deviates from its mission, as what it stands for is what attracted me (and many others) to this movement in the first place.

I was happy to see that NepalUnites has decided to carry on their fight against corruption, which I applaud with all my heart. I believe that corruption at every level (ministers to low level bureaucrats) has suppressed entrepreneurship and stifled economic growth in the country.  However, the title  and the t-shirt that they have designed in the name of this program is just plain vile! As a supporter of the movement let me be the first to tell you-- this is offensive! Let me remind the organizers of the program and the designer(s) of the t-shirt what their self stated mission # 2 states: "We provide public space, largely social networking sites, for people to vent their frustration and opinion in a non-violent way."

Take this anyway you want but it is supposed to be a friendly constructive criticism.

India's (Economic) Influence in Nepal

India's contribution (grants and loans) to Nepal's 2011/12 budget as presented by the Ministry of Finance is about 27.6% of total bilateral contributions. Japan contributes 11.34%; China- 6.84%; UK-6.31%; Germany-4.13%; and the U.S. a mere 1.78%.

This should shed some light on why India plays a big role in Nepali politics! 

Going Abroad For Work IS Patriotic

A lot of people talk about the Nepali youth leaving for overseas employment as if they have committed a crime. "If only they would do here what they are not ashamed of doing there," they say while sipping their lattes at Java-- I beg to differ. With the weak and incompetent political system, a corrupt bureaucracy that impedes economic activity and high unemployment rate, there is nothing that these youth can accomplish staying in Nepal. Wanting to go abroad to work, with the knowledge of poor working conditions, sometimes even deadly conditions, should not be ridiculed. In fact, in today's unstable and weak economy (brought about mostly by bad banking policies and a busted real estate bubble) it is these workers who have kept the economy afloat. I have posted the increase in remittance and how it has been the life-blood of the Nepali economy before. The money that they bring back and use for consumption or construction adds to the domestic demand, which helps sustain various local businesses. So, yes, they are patriotic!

eKantipur.com reports that the "worker departure has reached an all time high" with most of the increase coming from an uptick in demand for workers from the Middle East. So, as more and more Nepalese workers head out to other parts of the world to earn an honest living, we should not look at them with disdain. If such feelings start to manifest,  be it at Java, your NGO/INGO office, or in the comfort of Facebook/Twitter, just think of their patriotic action of helping the Nepalese economy and do them a favor-- do your part-- act, politically or socially, to make their life overseas better and safer!    

I am back!

I am finally back in Colorado and getting into the groove of things.

The trip to Nepal was very busy and productive. I was able to participate in many activities including the school program in Mulghat and the first ever Ghintang Dreams project in Kathmandu, Nepal. I will post pictures and the details  of both the projects soon. I hope you enjoyed the few posts that I was able to work on from Nepal. 

I have started to look into the new budget and will post my views soon. 

Kiss The Pig--Update

I visited the primary school in Mulghat, Dhankutta, Nepal this summer and met the principal, staff, and 11 deaf kids that live and go to school there. This is the school that our "Kiss The Pig" program (together with the two Rotary clubs) raised money for in order to build restrooms, bring clean water, and put a new roof. I have shot a few minutes of videos and will post it once I am done editing. I will also post pictures of the one day community service we did at the school. I am very happy and excited to build a relationship with this public primary school in eastern Nepal. 

Nepal Unites--Sherpa Mall

The program organized by Nepal Unites was scheduled to begin at 7pm. People started to trickle in around 6:30, and by 7pm the entire open space on both floors of the Sherpa Mall was packed with supporters eager to listen to Avaya & the Steam Injuns. Some came with Nepali flags, some had flag stickers on their cheeks, some wore t-shirts with flags on them, and some simply showed up with patriotic feeling in their hearts. To these young and active youth the event was much more than a release of a single by an up-and-coming band—this was their way of showing support to end the political stalemate and complete the constitution, this was their way of saying enough to the corrupt culture of the past and start a new beginning, but most importantly, this was their way of saying “WE ARE HERE AND WE WANT CHANGE!”

Continue on to Nepali Blogger to read the full story.

Nepali Hospitality

When it started to rain on our trek down from the Australian Camp we took refuge on the porch of a house next to the trail. The house was a typical mountain home with one big room and an addition turned into a kitchen. The doors were open and no one seemed to be home. The rain became heavier and heavier and we took off our backpacks and sat on the mud-painted porch.

After twenty minutes the lady of the house showed up and her first reaction was "Oh my god, you are all sitting on the floor! Let me get you something to sit on." After greetings and introductions she proceeded to the kitchen to make us all Nepali tea.

Nepal Unites Videos

Khulla-Manch videos of the event organized by Nepal Unites that I wrote about in my earlier post.

Khullamanch--For What It's Worth!

Nepal Unites, an activist group, organized an event at the Khullamanch on May 20th, 2011, which they promoted through Facebook. I am currently in Kathmandu and decided to support the cause by showing up in a white t-shirt as called for by the organizers. As most Nepali, I share their frustrations with the current state of affairs and wanted to support their noble effort to get the youth engaged. However, when I got there it was disappointing to see only a small percentage of people with white t-shirts on. Most people just seemed to wander in to see what the fuss was all about--or, as for a group of people behind me, to listen to their favorite artists- which was OK, as it provided Nepal Unites with a golden opportunity to reach more people and spread their message. However, it also meant that the program be of high quality and effective in delivering its message.

The program started with a call for the youth to unite and partake in cleaning the Khullamanch (which was full of garbage from the Nepali Congress' event the day before). I did my part, as did many others who had gathered, by picking as much garbage as I could with my bare hands. This is when I started to notice the flaws in organizing. If the group was planning on cleaning the place, they should have either brought brooms or asked the participants to bring one--I would have gladly brought one with me. This would have expedited the process and would have increased the participation from the elite kids who seemed unwilling to touch the garbage with their bare hands. It was impressive how most people got engaged and cleaned up the area. This was definitely the most impressive and the highest point of the event for me.

The program then continued on to the stage that was built off of the main concrete stage. This, the organizers explained, was to symbolize a move away from the practices of the political parties who frequently use the existing stage to spill false promises and empty rhetoric. I commend Nepal Unites for coming up with such an inspirational idea to show a clear break from current practices.

This is where the program took a weird turn and exposed the hasty organization and lack of thoughtful planning.  Any random person was invited to come up on stage and voice their concerns about the current stalemate in the constitutional process. This opened the flood gate. One after another youth took the stage and complained about the incompetence of the political leaders. This seemed like a good idea --giving an opportunity to the common citizen to express their discontents-- however, the organizers didn't seem ready for what could happen in an open forum.

After a few people took the stage and complained about the current state of political affairs, a young girl went up on stage and promised to kill each and every politician if they do not complete the constitution on time. Her exact words were "ek ek lai chapkaidinchu," which was met with  loud praises and applause, even though some of us in the crowd were taken aback by her words. After all, most people including myself, were there because of the group's stance against violence and its chosen path of  good citizenship which they summed up as  "leadership" on the pamphlet  they passed around. Now, I understand that the girl probably went into a trance and yelled out stuff she probably does not condone.

We are all aware that even great orators misspeak in the heat of the moment. But, what surprised me the most was that the MC let her comments stand. He thanked her for her words and moved on with the program. This delegitimized the event for me. If I wanted to chant along with a loud and obnoxious activist and applause calls for harm to the individuals that I disagree with, I would have joined any other political rally. I am sure that the participants in other political rallies are no less patriotic than the ones in this one; I picked this one because it seemed to promote the principles that I value the most, one being non-violence.

I agree with and support the philosophies and principles promoted by Nepal Unites. Since the movement is in its infancy, it is particularly important for the leaders of the movement to thoroughly workout the details of any programs they organize and to firmly condemn any deviations from their core principles. Failing to do so gives an impression of passive acceptance of such actions, reduces future participation, and decreases the legitimacy of the movement, which will be unfortunate!

I will post the videos of the event soon, including the performance by Mr. Yogeshowar Amatya soon.

Kudos to Nepali Youth!

Congratulations to all the organizers and participants of the recent activities-- "Letter to the Supreme Court,""Jyala Liyau, Aba Sambidhan Deu,""No Bandh." etc.

I will be in Nepal next month working on different projects and plan to participate and help in various programs organized by the Nepali youth. For those of you still on the sideline, here is a song by Dave Matthew's Band to give you that final push!

Next post will be from Nepal. 

Poor Economics

Abhijit Banerjee and Esther Duflo have written a book titled "Poor Economics: A Radical Rethinking of The Way to Fight Global Poverty." The New York Times' ECONOMIX blog contributor David Leonhardt did an interview with the duo. Here is an excerpt:

Q. You write about the strong evidence of the importance of education: the big income gains after Indonesia went on a school-building spree; the income gains and mortality reduction after Taiwan made school mandatory; the declines in teenage pregnancy among more educated girls in Malawi and Kenya, to name just a few examples. But there are definitely still education skeptics, some of whom point out that Africa has become far more educated over the past generation without become far richer. How do you respond to the point that more education doesn’t always lead to much faster economic growth?


A. It is not clear that the skeptics have always thought carefully about the alternative: what would have happened had Africa not invested in education. Would things have been even worse? I don’t know the answer, but that is the reason why these comparisons are inherently difficult to interpret. When you compare individuals, rather than countries, you find that education improves both income and the quality of life.

You can read the entire conversation with the two MIT economists at the Economix blog.

Time to Shrink Nepal Oil Corporation

Energy crisis and long lines at the pump are nothing new to the residents of Nepal, especially those living in the Kathmandu valley. It is so common that people have started to accept it as just another issue they have to deal with. It does not have to be this way-- there is a better way.

Let's think about the cause of this problem. Well, most of the problems related to transportation that the country faces--petrol shortage, pollution, congestion, traffic-- are due to the government's total control of the supply of petroleum products. This, married with the fragile political system, incompetent managers, carefree officials, all contribute to the present state of affairs. It is time to implement new ways of doing business. The perpetual debt that the Nepal Oil Corporation is in should be enough of a reason for us to start thinking about phasing out the government's monopoly in the supply of petroleum products. It is not sustainable for the government to continuously subsidize the cost of petrol. Temporarily raising the price is just "kicking the can down the road."  This is not only a bad economic policy but also unfair, unjust, and absurd. Why should the "have nots" go hungry, die of cholera, and not be able to afford education, while the "haves" get government subsidized petrol? It is time to face the music and start thinking about ways to downsize Nepal Oil Corporation. The new lean NOC should only be involved in the supply of kerosene and other essential oil products for basic household activities, however, the supply of all petrol/diesel for commercial and private use should be privatized and taxed--subsidizing a product that creates negative external costs like pollution and congestion is ludicrous.

Finally!

President Obama announced this evening that the US forces killed Osama Bin Laden and took custody of his body! This is great news for all Americans and the citizens of the world, especially if you were living in the US on 9/11.

We are all Americans today just like we were all Americans that sunny September morning!

No Country For Old Men

There comes a time when silence is betrayal --MLK

Here is an excerpt from my new essay published on Nepali Blogger. 

The political and economic systems in Nepal are archaic. It is time for the older generation to let the young and the vibrant ones work on building a nation in which they will live, raise their families, and take pride in what they create. It is an absurd idea to rely on leaders from the “Gandhi era,” to help us navigate through these electronic times, especially when they do not foster the teachings of Gandhi! It is time that the young generations demand a change in leadership. It is stupid to expect a different outcome while repeating the same process, with the same leaders, in the same system. It is time to change the system.


Continue to read the entire essay on Nepali Blogger

American Foreign Aid

Michael L. Buckler, the author of From Microsoft to Malawi: Learning on the Front Lines as a Peace Corps Volunteer, argues that the foreign assistance that the U.S. provides to poor countries benefits the U.S. more than the designated country. His Op-Ed titled "The Secret of Foreign Aid" is published on The Baltimore Sun. Here is an excerpt from it:

Overseas assistance in the federal budget is actually American assistance in disguise. Poor countries receive money from our government under the condition that some of the money (about 50 percent) be used to acquire goods and services from American companies. By doing this, Congress ensures that aid money stimulates the American economy, not fragile ones in need of help. Other self-serving tactics include showering aid on strategically important countries like Egypt, while geopolitical twerps like Malawi — where I lived as a Peace Corps volunteer — get squeezed; and conditioning aid upon the adoption of Western ideals like multiparty democracy and free-market capitalism. In short, we finance them to enrich our companies and import our culture.

Continue to read here

Get Ready to Rock the Vote

The Election Commission of Nepal is firing on all throttles to register voters throughout the country. This is one of the key times for the Nepali youth to take charge through the democratic process. It is in our best interest to register and get others to register in order to make sure that our voices are heard. It is time to say enough!

There is a seismic wave building in the youth population of Nepal. This energy is evident on Facebook, Twitter, local newspapers and blogs. There is actually a movement (http://www.facebook.com/retirethenetas) on Facebook to “Retire the Netas.”  Recently there was a Facebook movement to sign a letter to the Supreme Court condoning their actions against corruption. This energy can be fruitful only if it can be translated into grassroots organization and movement. These frustrations expressed on the web and print media is shared by almost all the past and present generations who have been denied prosperity and a decent outlook into the future! It is important to galvanize this sentiment amongst the youth to coalesce around the common dream of an opportunity to succeed—an opportunity to be able to compete with fellow generations of other countries in the globalized world of the twenty first century. The Nepali youth know that they are as good as any Briton, American, European, or Australian. They know, if given a chance, they too can advance and prosper.

This sentiment will give rise to a stronger and organized movement. Then the focus should be on having new individuals contest in the next election from as many constituencies as possible. All these possibilities, however, start by making sure that everyone is registered to vote. Young aspiring leaders should engage in this process. The e-generation, especially the  young entrepreneurs and business professionals should support the young leaders and help them put up a decent fight--this could be in the form of financial support, local campaigns, Facebook and Twitter campaigns, etc. Get creative and help in any way that you can.

I, for one, am going to do my part. Are you?

Thousand Kisses

Let me inform everyone that the students raised more than $1,100 from "Kiss the Pig" fundraiser. I  came in second place and therefore did not, I repeat, did not have to kiss the pig.  The students are currently working on getting the local Rotary club to match the amount and it is looking promising. If everything goes as planned, the school in a village near Dhankutta, Nepal will get a pipeline to bring clean drinking water to the school, new blackboards, supplies, and some sporting products for the young students.

Thank you to all who sent in your support! If you would like to be a part of this project and volunteer, please contact me via e-mail listed under my profile. 

Happy New Year 2068!

Happy New Year 2068 to all the Nepali people from all of us at Ghintang Economics.

Here is U.S. Secretary of State, Hillary Clinton's message:

 11 April 2011

Secretary Clinton’s Message on Nepali New Year

 

U.S. DEPARTMENT OF STATE
Office of the Spokesman
April 11, 2011

STATEMENT BY SECRETARY CLINTON

Nepali New Year (Bikram Sambat) Message

On behalf of President Obama and the people of the United States, I congratulate the people of Nepal and send my warmest wishes for a joyful New Year as you celebrate with family and friends in the coming days.

This is an opportunity for friends and family to celebrate national unity and goodwill in Nepal, and for all Nepalis everywhere to gather and exchange good wishes. As Nepal’s steadfast friend, the United States hopes that the coming year will see fulfillment of the peace process and a new constitution that will keep Nepal on the path toward progress and prosperity. We look forward to continuing our work together in the years ahead.

May the people of Nepal and all Nepalis around the world enjoy a safe and happy holiday. Naya Barshako Shubha-Kamana!

(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://iipdigital.usembassy.gov/iipdigital-en/index.html)

It's On!

OK, so there isn't the same level of thrill one would experience at the Kentucky Derby, however, after much hype and promotion, "Kiss the Pig" is underway and the excitement is starting to build. I walked over to the student center this morning to see what was going on (and to put some money in my piggy bank..ssssshhhhhh!). When I got there I saw that the students were already out in force, smiling and encouraging everyone to "vote." Right beside them was a table with 20+ piggy banks, with pictures of faculty, staff, and administrators—wearing a funny piggy hat and some making faces—taped to them.

It turns out that most people were "voting" for me and the political science professor. Let us hope that a healthy competition develops and leads to a nail-biting finish. That will provide our campus with a much needed excitement before the finals, and Kasthamandap Rotary a significant amount of money to help the students in Dhankutta, Nepal.

Again, if you would like to contribute, please let me know what your pledge is and I will give that amount to a PTK student. I will provide you with information on sending me the check for the amount. A price of one latte CAN make a big difference! Thank you to those who have already sent in their contribution.

How May I Help You?

The BBC reports that the Nepal Traffic Police is using celebrities to teach their rank-and-file a thing or two about courtesy and public service. Having been kicked and scolded by these policemen/women, I think this is a great idea and welcome the news with my fingers crossed. As comical as this may seem, it is a real issue in Kathmandu and the Traffic Police should be lauded for their effort. For us business geeks, this might be an opportunity to talk about customer service in the private sector of Nepal.

When I first travelled to the United States for college, I was shocked at the level and quality of customer service provided by American businesses. I didn’t believe that you could actually return food at restaurants, electronics at Wal-Mart, and demand to “speak to the manager” for things that, at the time, seemed petty. The phrase that seemed to echo throughout the Business School hallways, especially in hospitality classrooms, was --“the customer is always right!” This was a new concept to someone who grew up in a country where brand loyalty was not fully developed—I don’t know if it wasn’t understood or just ignored. I would like to side with the latter—people were much more concerned with turning a quick buck rather than focusing on a sustainable long run stream of revenue.

On my last visit to Nepal, an attendant at a gift shop in Thamel sat glued to his TV, not even bothering to make eye contact as I walked in. However, as soon as a white tourist walked in, he jumped, turned off the TV, turned on the lights, and started to behave as if the queen of England had walked in! She walked out without buying anything and I bought $130 worth of stuff. I made sure to turn that into a teachable moment (the teacher in me) and let him know the importance of customer service—black or white, or in this case, brown.

All this might be changing. I recently dealt with a Nepali travel agency to buy tickets for me and my group for our visit to Nepal this summer--gotta support NTY 2011. The agent who helped me was patient, courteous, and sensitive to our travel needs. Her language, dispensing of information, manner of communication, and professionalism were outstanding. I thought to myself—wow! I guess the idea of consumer service is starting to make its way into Nepali businesses. On a follow-up call I spoke with a different agent and quickly realized that it was just my wishful thinking! There is still plenty to work on.

We all have plenty of anecdotes that we share about businesses when we talk with our friends, family, and colleagues. We tell them who to do business with and who to avoid. For the most part, I do take these personal sentiments seriously, and you might too. In fact, many consumers these days read the reviews online before booking a room in a hotel or deciding on a restaurant for dinner. It does seem clear that “word of mouth” is one of the most powerful forms of advertising. Keiningham and Perkins-Munn of Marketing Metrics, Inc. (2001) look at the relationship between customer satisfaction and share of business and they “not only find that there is a positive relationship but that the relationship is non-linear, with the greatest positive impact occurring at the upper extreme of satisfaction levels.” Elten Briggs and Douglas (2009) through their model show that a business’ quality of service “directly influences both social (i.e., trust) and economic (i.e., value) relationship outcomes and that these outcomes positively influence customer loyalty intentions.”

It is about time that Nepali businesses, especially the ones that have ignored it for long, start focusing on customer service and building long-lasting relationships. This will help provide them with the competitive edge and ensure a sustainable revenue stream in a copycat-cut-throat business environment.

Earthquake

According to MSN India "a strong earthquake with a magnitude of 5.7 on Richter scale jolted western Nepalese districts near the Indian border, damaging over two dozen houses but no loss of life was reported. The tremor that hit the area at 5.30 pm yesterday lasted 15 seconds, according to officials. No human causality was reported so far. Nepal had experienced five smaller earthquakes over the period of past one month.Over two dozen houses were damaged by the tremor in Baitadi, Bajhang and Darchula near Indian border, according to National Seismological Centre here."

Here is a link to the website of National Society for Earthquake Technology-Nepal (NSET) for information regarding earthquake preparedness.

Indian 'Anuradha Koirala'

The stories and the pictures in this video are powerful and important for everyone to be aware of. This story is important to pass on in order to "break the culture of silence" as Ms. Sunitha Krishnan puts it and to stop these atrocities against women!

"You are Fired!"

I will take the finance secretary at his word when he says that the decision to resign was his own. However, reading between the lines, it is clear that he was pressured to leave because of his differences with the leadership at the ministry. This unjustifiable pressure that is all too common in Nepali state of affairs, so much so that people have grown accustomed to, is very disruptive and detrimental to long-term planning and policy implementation, not to mention the economic health of the nation. This incident highlights what the political tradition in Nepal has been and continues to be. The system is brutal to people that are qualified but do not necessarily share the minister’s viewpoint. Pressure to resign and transfers to different districts (saruwa) of qualified individuals, when the government changes are not unheard of. In fact, it is expected! This process not only creates inefficiencies in the bureaucratic process but hinders nation’s progress.
What can be done about this? Well, I think this is a problem that is deeply rooted in the system that we have in place. When you have a system that allows unqualified (in terms of training) MPs to become the leaders of ministries that they do not have much understanding of, married with the eminent threat of their government collapsing, one cannot expect anything other than an individual who is interested in maximizing his/her personal interest. So, my solution would be to adopt a new system—a system where the leader of the country has to be elected by the entire nation, a system where the leader has a term requirement and gets to appoint their own cabinet, a system where MPs cannot be the heads of ministries but only represent the constituency that elected them and fight for their cause.

Youth & Politics in Nepal

One might have heard of Gagan Thapa as a "rising star" of Nepali Congress. However, I have never heard of his name in an influential position in Nepal other than as a young aspiring leader (for the last 10 years!). This, in my view, is mainly due to the type of political system that we have which strongly favors the party elites--but that's a discussion for another day.
I was curious about Mr. Thapa and wanted to learn more about his views, so I did what anyone would do, I googled him. I came across the interview (posted below) which he gave to Fireside. The interview does not shed much light on his political philosophies or on any ideas that he might have about Nepal's development. It does, however, focus on the state of the political affairs in Nepal. At the end of the interview I found myself in agreement with Mr. Thapa.
Now, it would be interesting to learn about his ideas on how to solve the issues he points to and move the country forward.



Part II   &  Part III

Chautari Lecture

My good friend Kerry Brown is giving a talk at Martin Cahutari, Kathmandu on "Contextualizing Art in the Kathmandu Valley." If you are lucky to be in the valley early this week make sure to attend this exciting talk.


Photo by Kerry Lucinda Brown, 2011. All rights reserved.

Here are the details:

Mangalbare Discussion Series (Tuesday), 3pm
29 March 2011/ 15 Chait 2067
Art Discussion Series
Contextualizing Art in the Kathmandu Valley
Kerry Lucinda Brown, Fulbright Scholar, PhD Candidate, Art History Department
Virginia Commonwealth University Richmond, Virginia USA

"Maoist Twist"

Here is a dance video (Maoist style) of Pushpa Dahal to entertain you on this Friday! Have a good weekend.

“Good (Eats) Reads”

• NepaliKeti points out (and I agree) the sexism surrounding Holi--the festival of water and colors. 
• Pradeep Kumar Singh, NepaliBlogger, sheds some light on late Krishna Prasad Bhattarai's life and career
• Ramesh Deshar discusses the plight of the Nepali migrant workers
• Prateebha Tuladhar points to the blogs as an escape for women
• Mukesh Khanal looks at the issues surrounding Nepal’s youth unemployment and remedies
• The Economist discusses the regional income inequality

"Kukhuree Kan" III

The news media continues to report on the growth of the poultry sector in Nepal. This time they are attributing the increase to the rise in consumption-- coming mostly from the record level arrival of tourists in the country.

Despite protracted power cuts and adverse industrial climate, the country´s poultry sector is set to register an impressive growth of 24 percent, recording turnover of over Rs 41 billion during the current fiscal year 2010/11, shows a projection report. --MyRepublica

It will be interesting to see how the sector copes with the increasing cost of feed and volatile supply of energy. As local farms start to grow these issues will seem paramount and vital to their existence. Also, the poultry entrepreneurs need to focus their attention on the supply chain--not just upstream but also downstream-- to stay competitive and flourish. 

Kiss The Pig

A couple of my students, who are members of the honor society PTK, are working on a fundraising project titled "Kiss The Pig." There will be small piggy-banks with pictures of various faculty and staff placed at the student center for about a week. The campus community will 'vote' to pick the person they would like to see kiss a pig (literally!) by inserting money into the piggy-bank with the person's picture. The event lasts for about a week and people can participate as many times as they would like by voting with their money. Everyday, the students count the 'votes' and put out a running tally for all participants. The winner and the loser (last place) has to kiss a pig from a local farm during an event (Spring Fling--3rd Wk of April) on campus. Last year the club raised about $1,000, which they donated to a women's shelter in Fort Collins, CO. This year the students are donating the raised funds to the Kasthamandap Rotary to be used for renovating a school in Dhankutta, Nepal. I have decided to participate in the event and I hope to kiss the pig!

Will provide an update as the process moves forward.

update # 1: some of you wanted to support this effort and wanted to see me kiss the pig!  If you are interested in supporting this effort, please send me an e-mail listed under my profile and I will send you information on how to support. Remember, just $10 (Cost of 2 Venti Soy Latte With No Whip) will go a long way in Nepal.  

Here's One For All Nepali Women!

On this 100th anniversary of International Women's Day I could not think of any other Nepali woman who stands as tall as Anuradha Koirala. Not only has she dedicated her life to an important social cause, she has made lasting impact on many women's lives, and has healed many scars! Thank You!

"Curry In A Hurry!"

Here is a video that might be interesting to any student of supply-chain/logistics!

"Ivy Itch"

The return on investment (ROI) of expensive schools, especially when it comes to prestigious business schools, has been of interest as tuition continues to increase. Ranking of ROI from Bloomberg Businessweek shows that top ranked business schools like Harvard, Sloan and Rotman fall down the ranks when ranked based on ROI, while many 2nd Tier schools make it to the top 50.

A new study by Stacy Dale (Mathematica Policy Research) and Alan B. Krueger (Princeton University) sheds some light on the long term earnings of students of highly selective colleges. Specifically, they look to see whether “attending a highly selective college make much difference in a student’s average earnings after college.” They find that there was “no appreciable financial payoff for attending the most-selective colleges.” There were some exceptions—e.g. “Black and Hispanic students did appear to get an earnings boost.”

So there is much more to think about when you are getting ready to apply to a MBA program! Good Luck!