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A strange logic seems to have taken hold of some investors in Nepal Stock Exchange (NEPSE). So long as the stock indices keep increasing, they are happy to pocket the gains. But, when the market self-corrects and declines, they cry foul. They knock on the finance minister’s doors to intervene. They rally against the central bank, asking it to ditch measures to limit speculative spending in the stock market. This is not how things work in a functional economy.

Nepal Rastra Bank is perfectly justified in capping the amount (Rs 120 million) that a person or institution can get by holding their share certificates as collateral in banks—if they are to reinvest the loan in stocks. Some blame this provision in the latest monetary policy for recent market corrections. But it’s the right step and will help the market emerge from the clutches of a handful of cunning investors who thrive on fanning wild speculations. The argument that the government shouldn’t intervene in an incipient stock market is also flawed: It is an open secret that NEPSE is under the virtual control of a handful of big investors and stockbrokers who have gamed the system.

The allure of stock investing greatly increased during the pandemic as there were few other investment avenues. Many got in, believing it was an easy way to make money. Soon, they were addicted. They forgot it is just as easy to lose money, especially in a rigged system. Thus the central bank must keep NEPSE on a tight leash and continue to limit big speculative investment. These measures will also help make the stock exchange safer and more reliable.

The 2007-2008 global financial crisis was a cruel reminder that when financial bubbles burst, they can have a devastating impact on people’s lives and livelihoods. Meanwhile, such types as the loan sharks, inside traders, and sellers of dubious financial instruments either disappeared or used legal loopholes to go scot-free. Again, it was the governments that had to ultimately come to the rescue of their citizens. Only thoughtful and timely regulations can forestall such a travesty of justice.

Following the split in the Nepal Communist Party, all three of its splinters—CPN-UML, CPN-UML Samajbadi, and CPN (Maoist Center)—have revived their respective militant youth wings. The UML now has Youth Force, the UML has Samajbadi People’s Volunteer, and the Maoists, the Young Communist League (YCL). Similar rationales are being offered for their revival: to help the country overcome the Covid-19 crisis, to carry out social work, and to help the party mobilize during the upcoming elections. Yet these youth wings are likely to serve a different purpose.

The YCL, partly formed with the induction of erstwhile Maoist PLA fighters, was notorious for its intimidation tactics. When the mother party formally entered mainstream politics in 2006, it had to disband the PLA. Party leaders feared traditional parliamentary forces could see this as the Maoist party’s emasculation, making them further strengthen the YCL as a backup militant force. When the CPN (Maoist) romped home to victory in the 2008 elections, the CPN-UML, traditionally the country’s biggest communist force, suspected the YCL’s intimidation tactics of prospective voters and donors had borne fruit.

So it formed its own youth wing in the YCL’s image. Some other Madhesi parties also copied the YCL model. As was expected, they jostled to protect the interest of their mother parties and often clashed. They started shaking down businessmen for donations, even as they, and the YCL in particular, purportedly wanted to eliminate all forms of political corruption from Nepal. Moreover, in the name of assisting the police to maintain law and order, these forces often became a law unto themselves.  

For all these reasons, the revival of these militant groups is troubling as the country prepares for another electoral cycle; constitutionally, all three levels of elections must be completed by November 2022. Going by their history, these groups will be used to forcibly collect donations and intimidate rival cadres and voters. The proliferation of such militant groups with the official sanction of political parties is not a healthy development for Nepal’s democratic process. It is also a bad omen for the prospect of free and fair elections. 

A handful of sugarcane farmers from Tarai-Madhes are back in Kathmandu protesting yet another delay in the payment of their dues by various sugar mills. Were it not for Covid-19 restrictions, there would have been many more protestors. These farmers have time and again been forced to take to the street as their payments continue to be delayed on various pretexts. Nearly half their dues, which comes to around Rs 400 million, are yet to be cleared even though both the government as well as the sugar mill owners promised to do so by December 2020. Around 6,000 farmers have been affected in Sarlahi district alone.

Mill-owners say they have cleared all dues and there is no point to the farmers’ agitation, a stance that is backed by the central government. Apparently, the farmers have failed to provide concrete proof of the dues that the mills still owe them. The differing perception on payments partly owes to the fact that while the farmers say they were to be paid Rs 536 for a quintal of sugarcane, they only received Rs 500 a quintal. They have accused the mill owners of falsely claiming that the farmers had agreed to the lower price.

Besides Sarlahi, farmers from Nawalparasi (East), Nawalparasi (West), and Rautahat districts have been most affected. As they have repeatedly faced hurdles in getting paid, many sugarcane farmers are no longer cultivating the cash crop. The other persistent problem they face is a shortage of fertilizers. Nor, for that matter, are Nepali sugarcane farmers liable to the kind of subsidies their counterparts in India get. Whatever the case, it is in everyone’s interest to settle the dispute at the earliest.

In the last fiscal year, Nepal imported sugar and confectionery worth Rs 12.26 billion, nearly three times it did in the previous year, which is reason enough to make the country self-sufficient in sugar. But this will be possible only when our farmers are treated and compensated well. Whatever the status of their payment, they have not gotten the kind of support they need to sustainably harvest their crop year in and year out.

Governance should be based on principles, not partisan interests. With the intent of strengthening his government, Prime Minister Sher Bahadur Deuba is bringing an ordinance to make it easier to split political parties. During the tenure of KP Oli, his predecessor at Singha Durbar, Deuba as the leader of the main opposition had principally opposed a similar ordinance. This act of hypocrisy suggests the new prime minister is no different from Oli, at least when it comes to misusing the PMO’s powers for personal gains. Moreover, such acts are a threat to our democratic process.

Even during his four previous tenures as prime minister, Deuba was never far from controversy. He was among a clutch of post-1990 politicians who initiated the culture of offering inducements to MPs to bolster the ruling coalition. Even parties with a single seat in parliament got cabinet berths. The latest ordinance has similar aims. Again, this is precisely the kind of naked opportunism that contributed to the unpopularity of the previous government.

Our government representatives seem to have learned little from their previous mistakes. They are still tone-deaf to public criticism and feel entitled to do pretty much as they please. Deuba undoubtedly has an eye on the Nepali Congress general convention in November-end. He wants to use all tools at his disposal to ensure that he is the prime minister going into the general convention. In his calculation, it will then be easier for him to engineer his way back to the party presidency.

Reactionary forces couldn’t be happier. They are trying to remind the public of the ‘golden days’ under a constitutional monarchy and Hindu state. Public memory is short. Our political leaders have been so brazen and shameless in their actions, a sizable section of the public is starting to rethink. 

The allure of a benevolent dictator is an ever-present phenomenon in Nepali politics. Especially if our main political parties go into elections with current leaderships and their stale agendas, the rise of reactionary forces is a distinct possibility. Such foresight, alas, is in short supply among our top leaders.