FDI is not only about money but also tech and management transfer
The way you see it, is the Oli government in a mood to embrace China’s ‘red’ economic model?
Our constitution does not allow us to adopt the Chinese model. The Chinese obviously have an open economy but their political system is closed. Nepal cannot emulate that. So, if the Oli government wants to copy the Chinese model, it can copy only their economic policies. And not all Chinese economic policies can be copied. For example, China allows factory or firm owners to almost exploit their workers, and labor unions there are very weak.
It has been four years since the promulgation of the new constitution. How do you see the evolution of Nepal’s economic policy in this time?
An unpublished World Bank study says that after the earthquake and the Indian blockade, Nepal’s poverty increased significantly, almost by eight percent, but then it was soon reversed. The economy bounced back well. We have more than six percent year-on-year growth for three consecutive years; we have unprecedented peace, and we held the elections peacefully with the participation of almost all parties. The parties outside the mainstream are not strong.
What we lack right now are: a) Foreign Direct Investment, b) exports, and c) jobs. The government has been unable to inspire people and get businesses to invest.
The constitution states that the country is socialism-oriented. And you also pointed to healthy growth rates of late. But has the level of inequality in the society gone down as well?
We have not measured inequality lately. Even Nepal’s first budget in 1951 had the twin goals of growth and reduction in inequality. Our policy has since consistently been to reduce inequality irrespective of which system we follow. However, the problem, historically, has been: how do we measure inequality? Three years ago, if you had asked me this question, I would have probably said inequality is growing as the stock market at the time was growing, and the rate of return on capital was higher than GDP growth. Right now, the stock market is plummeting, and the interest rate is high, so the rate of return on capital is mixed.
If you are a rich person today, you put your money in a bank and get 10 percent on it. But the income of ordinary people is growing by only six percent, the GDP growth rate. Given about four percent inflation rate, inequality may not be increasing. But we need precise economic data to clearly see what is going on.
Earlier you talked about Foreign Direct Investment. Why do we need FDI at all?
FDI is not only about monetary investment; it also brings with it transfer of technology and management. There is high rate of return for initial investment as we do not have much of it. We do not have money to build roads and industries, which at this stage of development obviously have a very high rate of economic return. That is why we need investment from abroad.
We do not have enough money to realize our potential in hydropower and tourism, both of which require high investment. We may also want to improve our industries, most of which use old technologies and machinery. When FDI comes, better—hopefully state-of-art—technology comes along. In that case, our products will also be competitive.
What are the major reasons behind the paucity of FDI in Nepal?
Our FDI-related regulations are not investor-friendly. Unless a company has special arrangements with the government, it can hire a maximum of three people or five percent of its total workforce from abroad, which is very small.
Although the government denies it, some firms complain that it takes a long time to repatriate their profits. Many also complain that taxation is cumbersome. The new Foreign Investment and Technology Transfer Act (FITTA) is still without regulation. And investors hate the new investment threshold of Rs 50 million. If I had the power, I would reduce the threshold to $1.
This year, the government came up with new FDI regulations, and there have already between two investment summits. But they don’t seem to have borne fruit, have they?
It is too early to say that the summits have been a failure. There has been some wonderful proposals in the investment board and they are doing some follow-up. I am hopeful Nijgad Airport will be built as there were six or seven proposals, and a Swiss company has been shortlisted as well. But I am worried about the lack of delivery of this government, which also undercuts its credibility.
You also expect foreign workers regulations to be relaxed. Many IT companies suffer from these regulations. The threshold of Rs 50 million came out of nowhere and this will affect investment in SMEs. FDIs and New technologies and new ways of doing things that come along with them can actually help domestic SMEs. Suppose a Starbucks opens in Chitwan or Pokhara; other locals then learn how to run a good café.
You also talked about the impact of local syndicates. How do they hamper FDI?
Take the cement industry. The existing cement factories are unhappy with the arrival of foreign investment in this industry. I think two big cement investment proposals have already been turned back. I talk to hotel owners. Many five-star hotel owners think there should be no FDI in hotels. But when you bring FDI in five-star hotels and cement factories, they will also come up with new technologies and also look for other businesses and customers to tie up with. We also need to market our country as a liberal, welcoming place.
If you could do only three things to attract more FDI, what would they be?
First, come up with good and liberal foreign investment regulations for FITTA and other acts that would welcome all foreign investors. Second, I would sell these regulations in target countries. Sometimes, we make really good regulations but fail to sell them. Our embassies in places like China, India, Bangladesh, and Thailand are not interacting with local entrepreneurs. Finally, there are some areas we should do better in, irrespective of our FDI focus. For example, anti-competitive behavior and syndicates that affect both local and foreign businesses should be curbed
Nepal has to clearly state that it won't join any alliance or block: Interview with Madhu Raman Acharya
There seems to be confusion over whether or not Nepal subscribes to the American Indo-Pacific Strategy. What do you think?
Our neighbors and other big powers often come up with such initiatives that push their strategic, political and economic interests. Now, the US has come up with its Indo-Pacific Strategy (IPS), which was earlier called ‘Asia Pivot’. China has its Belt and Road Initiative (BRI) and India its Look-East policy. So new policies and initiatives will continue to be launched. We do not have the luxury of rejecting such initiatives outright, so we should adopt a cautious approach. Our reality also does not allow us to extend unconditional support to any such initiative. From the Chinese perspective, the BRI increases two-way investment, trade volume, and flow of tourists, and China takes the responsibility of building connectivity infrastructure.
It also emphasizes that the BRI strengthens member countries’ energy security, transit economy and strategic independence. On the other hand, the IPS talks about transparent and open investment and protecting individual sovereignty. The US is saying that, unlike China, it does not force any country to sign a document. It also says that it does not provide cumbersome loans but easy grants and aid, and as such there is a clear distinction between the IPS and the BRI.
Do you think our government is struggling to juggle between these two visions of China and the US?
Now there is some confusion. The government is making some effort to clarify its position. Our support for the BRI is conditional, in that the BRI should be in our national interest. When we select some projects we should see that it helps us economically, increases our connectivity, and works to our interest. This applies to both the BRI and the IPS.
Should Nepal join the IPS only when its non-military nature is confirmed, if that is at all the case?
On the IPS, we have not been asked to be a member or sign a document. So there is no need to consider whether to join it or not. The question right now is whether we support it. The US is describing it as a geographical construct. If so, there are questions about whether we should support it, as Nepal lies between two big countries and the IPS is a strategy of a third country. There is some confusion because we are yet to draw a fine line. Now, there is a tendency of saying okay to both sides without taking a clear position. This approach does not work. Somewhere, we have to draw a clear line.
When there is a new strategy or initiative, we have to make four considerations. First, we have to stick to our national interest. Second, the initiative should be based on certain principles as Nepal is a non-aligned country and has certain norms. Third, we have to weigh the extent of economic benefits. Fourth, we should not compare one with another. We have to frankly tell our foreign friends that our approach on any initiative would be based on these four principles, which would also be a straight-forward approach.
How does Nepal handle the competing interests of China and the US?
There is new polarization in the world. China is emerging fast and there is a cold war-like relationship between China and the US. China is pushing for an alternative leadership of the world system. Whenever a new power emerges, the tussle between old and new is inevitable. We should not be a victim of their competing interests but rather look to protect our own. The problem right now is that we are yet to draw a clear outline. We are receiving huge economic assistance from the US. It is a superpower and has a big role in the operationalization of the world system. But China is also a big power and our neighbor. And India has reservations over the BRI. Due to these factors, we haven’t made adequate progress. So my advice would be to move ahead with the help of the principles I talked about earlier.
So it really does not matter whether the IPS is a military strategy?
The Americans emphasize that it is not a military strategy and I trust them. They have not asked us to be a member of a certain military block. But they want other countries to be on their side, which is natural. The IPS seems to be aimed against China. Again, we have to clearly tell our foreign friends that we will always act in our national interest and won’t allow Nepal to be used against any other country. The problem right now is that our approach is reactive, and even so we are not reacting the right way. If we come up with a clear policy on neighboring countries and big powers, it is not difficult to deal with these policies and strategies.
What could India’s role be in the Indo-Pacific Strategy and what would be its impact in Nepal?
India seems to be indifferent to the conflict in Nepal over the IPS and the BRI. India seems to have realized that it has been sidelined. In fact, this may be the first time that India feels sidelined in Nepal. Though India is a part of the Indo-Pacific, it does not seem too keen on it. Perhaps India is in a mood to work from behind the scenes for a change.
How does Nepal fit in the IPS?
After our foreign minister’s visit to Washington, the US State Department issued a press statement highlighting Nepal’s central role in the Indo-Pacific. Before that, there was not much talk about our part in the IPS. Our foreign minister says he made no commitment vis-à-vis the IPS, and I believe him. A foreign minister cannot decide on such a big issue on his own. But there is no clarity on how we deal with it. We have to clearly say we would not join any alliance or block, whether it is led by India, China, the US, or any other country, but we support initiatives that are in line with our national interests. We have to clearly convey what is compatible with our interests and what is not. Yet, up until now, we have been afraid to take such a clear stand.
It appears that all American assistance to Nepal will be channeled through the IPS from now on. How do you see this?
Even before the BRI was unveiled China was supporting Nepal’s infrastructure development. So it would be problematic if it now decides to keep all past and present projects in a single BRI basket. Likewise, there is long-standing cooperation with the US, including military cooperation. It would again to unwise to put everything into one IPS basket. Only specific projects should be dealt with under the BRI because we have several other long-term projects which China. And with the US, the Millennium Challenge Cooperation agreement was signed well before the the IPS was unveiled. So why see it as part of the IPS? If the BRI and the IPS become these all-encompassing strategies, people will naturally think that they are mutually exclusive.
Would you link the expected visit of Chinese President Xi Jinping to Nepal to the growing American activism here?
In his first term, Chinese President Xi visited many South Asian countries but not Nepal. In my view, Xi’s visit did not take place due to the anti-China activities in Nepal after the 2008 Beijing Olympics and due to our volatile internal political situation. Now there have been multiple high-level visits from Nepal to China and several agreements have been signed. As you mentioned, the US activism could be a reason for the visit. But our focus should be on how to advance Nepal-China bilateral cooperation during his visit, and not how a third country will be affected by it. There has been no progress on the BRI projects. First, we took a long time to sign the MoU and now there is a long delay over project selection. It would be wonderful if there is progress on these projects during Xi’s visit.
Some speculate that Xi will make a stopover visit while others think he could stay here for a night. Whether he is coming here via Tibet or India seems to be another point of debate. How important are these things in diplomacy?
They matter a lot. For example, Chinese Foreign Minister Wang Yi came here from Pakistan. This is meaningful. Likewise, our President stayed in Beijing for nine days. When the Chinese foreign minister was in Nepal recently, he went on a trek, which suggests a lack of agenda. But I think just the fact that the Chinese president will be coming after such a long time is significant in itself. And even if he is here only for eight or nine hours, that should be sufficient to talk to the Nepali president, meet the prime minister, attend a state dinner, and sign some agreements.
Finally, do you think Nepali negotiators somehow don’t understand their Chinese counterparts, which in turn hinders bilateral cooperation?
We have a long experience of working with the Chinese. On the BRI, I think most problems are due to a lack of clarify among our political leadership. After joining it, we were confused about the types and number of projects. Initially, we selected three dozen projects which have now been trimmed down to nine. Out of three dozen projects, one dealt with building a view tower in Nagarkot. This was laughable. When we deal with China, we have to think of how to secure connectivity, transit, and about maintaining our strategic independence
Heralding a new Wave in Nepali music industry
As a young boy, he recalls his grandfather—the legendary music maestro ‘Master Ratna Das Prakash’—reading out the names of the successful people featured in newspapers and magazines. “One day, I wish to see your name appear in a newspaper as well,” he told the young kid. With that as his inspiration, years later, Anup Prakash would have his name printed almost every month on one of the biggest entertainment magazines in the country—for 19 straight years. And that’s only one of his many achievements that make him among the most recognized names in the Nepali music and fashion industries.
He is neither a musician nor a singer, but Prakash’s contributions to the growth of the Nepali music industry still makes him a well-known figure. Now 48, Prakash has over three decades of experience as one of the most sought after photographers in the country, with his profile growing from an aspiring model to a photojournalist, a publisher, designer, and much more.
In the early 90s, when the seeds of modern forms of music like pop and rock were gradually being sown in Nepal, the music industry was in its embryonic stage. A handful of studios, a few music companies and a bunch of musicians—talented but clueless of the business end—strived to be heard and recognized. A few years later, the idea of locally-produced cassettes and CDs of Nepali musicians had been brewing. That is where Prakash stepped in to conceptualize and photograph for album covers.
“I have worked for the late Phatteman Rajbhandari to Nima Rumba and everyone else you can think of,” says Prakash, also mentioning that most of his works have remained undocumented because of the lack of digital media and the rapid frequency with which he had to churn out his works in the early days of his career.
Prakash started his career by taking photos from analog cameras with film rolls, and with almost no other photography equipment. “There was no room for a mistake at the time. We had to be perfect,” he recalls. “Especially for indoors or band shoots, the setting was even more difficult. We had no instant reviews to take the perfect shots and no Photoshop to edit out our mistakes later.”
The whole process of taking photos with analog cameras was challenging, and expensive, as Prakash recalls. A Kodak film roll cost him around Rs 120-150 in the early 90s and offered only 36 exposures. A photographer’s main objective at the time was to make the very best of the roll and waste as few shots as possible.
Prakash had learnt photography from a private tutor in Mumbai for six months circa 1988 and he began by applying his skills as a photojournalist for a few publications. He was then drawn into the world of music and glamor. Despite low returns, he started taking professional photos of musicians for album covers and other promotional materials. “Modern music was at its primitive stage at the time and artists did not make much money either,” Prakash says. “Sometimes I even did photoshoots for free to support the musicians.”
Then, in 1994, Prakash along with a few like-minded friends conceptualized “Wave”—an English language entertainment magazine which would later become one of the most influential publications with 25 years (and running) under its belt. With Wave, Prakash as a publisher and photographer turned musicians into celebrities. He gave a touch of glamour to music. He put Nepali musicians on the cover of the magazine, which in turn sold like hot cakes in the late 90s and early 2000s and even started creating posters of Nepali artists which the audience loved. In his 19 years with Wave, a monthly publication, Prakash not only took photographs but also created events and promotional activities to support musicians.
No big musician of the time escaped his lenses. He was the official photographer and guide for Puerto Rican “King of Latin Pop” Ricky Martin’s personal 1999 visit to Nepal and official event photographer for Canadian popstar Bryan Adam’s 2011 concert in Kathmandu.
After his departure from the Wave team in 2013, Prakash lent his expertise as Managing Director to the Kripa Drishya Foundation—an organization devoted to music. It has a full-fledged record studio called Kripa Drishya Digital and also a television program called Kripa Unplugged where select musicians from different genres are featured.
Now retired from his position as the MD but still a board member at the foundation, Prakash has shifted his focus to business and product photography. He is also designing a reality show based on musicians. “The idea is to let people from all walks of life who have musical abilities but haven’t found a platform yet to spend time and eventually share the stage with their musical idols,” Prakash gives a little teaser of the program without divulging more. “It might air on television or just YouTube. Whatever the case, you will be able to enjoy the music to the fullest.”
Dengue spreading but no need to panic
When an APEX team visited Shukraraj Tropical & Infectious Disease Hospital at Teku, Kathmandu on the morning of September 9, there was a huge crowd inside its premises. Even those suffering from minor fever and throat problems seemed worried about possibly contracting the dreaded dengue and had thronged to the only tropical and infectious diseases hospital in the capital. They were lined up in long queues waiting to consult the doctors. Among the doctors they wanted to see was the hospital’s Chief Consultant and Spokesperson Dr. Anup Bastola. This morning he was busy checking patient reports and counselling people not to panic but to consume plenty of liquid (and medicines, when needed). Kamal Dev Bhattarai and Dinesh Gautam had caught up with Dr Bastola before the start of his busy shift to learn about the recent outbreak of dengue fever, preparations for its control, and possible precautionary steps.
Why has the dengue fever that had before been confined to some Tarai districts spread over Kathmandu and other hilly districts?
The mosquitoes which transmits dengue were prevalent in Kathmandu valley for many years, as was the case in Pokhara and other parts of the country. Dengue is spread through the bite of Aedes female mosquitos. When a mosquito bites a person who has dengue virus in blood, the mosquito gets infected. Later the inspected mosquito can transmit the virus to a healthy people. Similarly, mosquitoes that comes from eggs of infected mosquitoes can transmit dengue to people. Now, the temperature of Kathmandu is right for the growth of mosquitoes as well. Last year, we had identified some dengue-infected folks in Khusibu area who had gotten the virus via the dengue-infected people outside the valley.
Mosquitos then bit those Khusibu residents and the virus spread in other areas of Kathmandu. This year, too, the outbreak of denuge began from Khusibu, Thulo Bharyang and Balaju areas of Kathmandu valley and the number of infected is increasing by the day. It is spreading due to the travel of infected people from one place to another. As far as the hilly areas are concerned, there is rapid urbanization and development. Several goods and materials are transmitted there from Tarai/Madhes areas. The mosquitos also travel from Tarai along with humans and various means of transport.
Is it because of climate change and urbanization that dengue is spreading fast even in hilly areas?
Yes, dengue is spreading due to rapid urbanization. Even our hilly districts these days have the temperature and humidity suitable for the growth of mosquitoes. Human migration is a major reason for its spread. Dengue would not have spread in Kathmandu valley had infected people not travelled here. For example, during Dashain, people from Tarai/Madhes and even abroad visit Kathmandu, bringing the virus with them. It is not only in Nepal, dengue is fast spreading in other South East Asian and South Asian countries as well. Even the mountainous country of Bhutan is not immune. Dengue is spreading in the hilly areas of India too. Human migration, rising temperature due to climate change and urbanization are the major culprits.
Was such a rapid spread of dengue anticipated?
This year, there have been some unusual developments. In the past, there was an outbreak at the end of the monsoon season. So we expected dengue to appear during this Dashain season as well. But this year it started to appear in April-May. First, there was an outbreak in eastern parts such as Dharan and Morang. If you see our immediate history, there was a big outbreak of dengue in Tarai in 2009, then in 2013-2014, in 2017, and now. The numbers are already large this year. This will further increase in coming weeks and months.
Are we prepared to fight dengue?
The Epidemiology and Disease Control Division under the Department of Health has already taken some measures. Now, we have three tiers of government and we have allocated budget for all levels to fight dengue. We have purchased necessary kits. Similar, the division has launched training programs, inviting representatives from the concerned provincial and local level departments as well as health officers. But possible areas of dengue outbreak are always unpredictable. For example, on the basis of this year’s outbreak, we make preparations for next year but we may be wrong. What we lack is strategic planning.
There is a need to map out possible areas of dengue outbreak for successful prevention. But the government does not appear serious about it.
We make plan for next year on the basis of current outbreak. This approach is not flawless. After the outbreak in Khusibu last year, we had discussed the possibility of outbreak in other areas but we failed to come out with the right policy and planning. When it comes to controlling the dengue outbreak, the efforts of Ministry of Health and Population is insufficient. There is a need for integrated planning and intervention. There is a need for behavioral change at the individual level. Now, we have a strong government at the grass-root level and they can play vital role in controlling dengue. We need a systematic campaign to search and kill mosquito larvae. We can control it if every ward launches a campaign to search and kill the larvae. When it comes to long-term planning and policy, all line ministries should sit together. The government has to think seriously and all government bodies should be engaged. In the past, we used to think the outbreak would be confined to Tarai. We were wrong. There is possibility of a pandemic in coming years if we don’t start preparing now.
What kind of policy interventions can there be in controlling dengue?
Other countries have strong legislation. In Singapore, if government authorities find mosquitoes breeding in the houses of common people, they would be subjected to a fine of $200. In June, dengue larvae were found in the houses of 900 households in Singapore and they were punished. So only government efforts are insufficient. Now, we are in a very primitive stage. We have to start thinking long-term. Every social organization should be involved. In India, state governments are promulgating several laws. In Kathmandu, there are abandoned tires, mismanaged flower pots, unruly bushes everywhere. These are perfect breeding ground for mosquitoes. Along with laws, what is needed is a mega-campaign of people to control dengue.
What is the status of facilities and manpower at local level to fight dengue?
The staff adjustment process is underway. So there is lack of doctors in some places. Similarly, local governments are yet to manage the required human resources. We need to ensure manpower at local level who can identify the symptoms of dengue to prevent possible deaths. Now dengue has spread over 44 districts and Province no. 3 is highly vulnerable.
There are some misconceptions about dengue. Some say people would be infected only if mosquitoes bite during the day while others say morning and evening are the risky times.
You could be bitten round the clock. For example, if you go in the jungle or to a park in the day, such mosquitoes can bite you and you may develop dengue fever. But these mosquitoes will be more active in mornings and evenings. So it is better to stay at home in the evening and take precautionary measures. In broad daylight, the mosquitoes will be less active.
What are the dengue symptoms? And how can it be cured?
The main thing to understand is that we can see symptoms only in 10 percent of infected people. For example, if 10,000 are infected, there will be clear symptoms only in 1,000 people. Of them, 500 show the symptoms of viral fever and remaining 500 show symptoms of dengue fever. But with proper medical care, only around 1 percent of those with dengue fever will die. This dengue fever is dangerous. Its symptoms are sudden high fever, severe headache, pain behind the eyes, severe joint and muscle pain, fatigue, and vomiting, among others. You may see red rashes in the body. People suffering from dengue should consume plenty of liquid and use only paracetamol, not other medicines. Only those people who suffer from repeated vomiting, pain in stomach and respiratory problems should be admitted to hospital.
Who are most vulnerable groups?
Infants, pregnant women, fat people, and people having other diseases such as blood pressure and diabetes are vulnerable. If these people contract dengue, they need to be admitted to a hospital as they are likely to see more complications.
What lesson can we learn from the current spread of dengue?
First, we have to think about safety measures to stay save. Our priority should be searching the larvae and killing them everywhere. For example, just like the Bagmati clean-up campaign, we need another mega-campaign. People and all institutions should come together for this. We have to decrease the density of mosquitoes. At the individual level, we have to change our behavior. It should be no less than a national agenda.

