Hurdles to prosperity

What are the main barriers to Nepal’s prosperity? I enlist eight of them below.

 

 

 

 

False sense of security

 

The more the people of a country are action-oriented and can take risks, the faster that country devel­ops. But when it comes to Nepal, the country has only ever been thought of as a ‘safe sanctuary’ since the Homo sapiens first made their way here while expanding away from their base in North Afri­ca around 100,000 years ago. The people belonging to Indo-Europe­an, Tibet-Burmese and Austro-Dra­vidian language families who set­tled in Nepal were for thousands of years occupied with rudimentary agriculture, animal husbandry and hunting—and always cursing their wretched luck.

 

In the 14th and 15th centuries, when the Europeans were scouring the world in their ships in search of new markets and places, and were making various scientific discov­eries, we were in deep slumber, or busy listening to tales of sages meditating in caves. This is how we missed the road to prosperity.

 

Quirk of history

 

Industrial development is pos­sible only in centralized nation-states or federal-states. This is why it was important to unite the many small princely states in this region in the 18th century. This was some­thing that could have been done under the leadership of the Malla rulers of Kathmandu, the Sen rul­ers of Tarai-Madhes or the Khas rulers of the ‘22’ and ‘24’ princely states. Unluckily, the mission was carried out under the relatively weak and poor Khas ruler Prithvi Narayan Shah.

 

The need of the hour back then was to take the feudalistic society towards capitalism, which was exactly what was happening in Europe and America at the time. But in Nepal the Gorkhali rulers tried to further solidify the feudal order by distributing land to their near and dear ones. Had the unification cam­paign had been carried out under the Malla rulers of Kathmandu, the hub of trade and industry at the time, perhaps Nepali history would have taken a different turn.

 

‘Halal’ revolution

 

Industrial development has been possible in various countries only after the completion of the political revolution against authoritarian monarchies, so as to establish mul­tiparty democracy, rule of law and to restructure the state according­ly. But in Nepal, starting in 1950, all political revolutions and peo­ple’s movements have ended either in compromises or partial achieve­ments, in what may be called a ‘halal revolution’. In this revo­lution, the revolution­ary forces always enters into compromises with the ruling power. This in turn ensures that the old rulers remain in place and thus any change in state mechanism becomes cosmetic.

 

Fatalism and casteism

 

There can be no meaningful change or revolution unless there is first a revolution in how people think. In the 10,000 years of human civilization, only in the past 500 years has there been meaningful changes and developments in their lives. This change happened when they were able to shed their old superstitions and conservatism. The scientific revolution, the Enlighten­ment, the political revolution, and the industrial revolution, they all happened in Europe in the period between 16th to 18th centuries. Cru­cially, this followed the reformation of the church in the 15th century. But in Nepal we have to this day been unable to shed our unscien­tific and regressive supersti­tions, conservatism, fatalism and casteism, which are all being perpetuated in the name of religion. Fatalism and casteism have been especially harmful for Nepal’s prosperity.

 

Geopolitical trap

 

A country’s prosperity or decline largely depends on internal reasons. Nonethe­less the outside world cay play an important, and even decisive, role in a special period in a coun­try’s history. In Nepal’s case, the 1816 Sugauli Trea­ty dealt a body blow to the cottage industries that were in the process of developing into modern man­ufacturing industries. The small cottage industries of Nepal were in no position to compete against the big Indian indus­tries. Likewise, the Chinese Communist Revolution broke Nepal’s traditional trade relations with Tibet, further ham­pering its cottage industries. But while the country has been time and again affected by this geo­political trap, there has been no national consensus in Nepal on how to deal with it, and how to reduce our overreli­ance on India.

 

Wrong capital allocation

 

For an industrial revolution, it is vital that the primary capital from agricul­tural and industrial activities is accumu­lated and reinvest­ed in productive sectors. But in the history of Nepal, especially beginning with the Rana period, most of the capital that was accumulated from agricultural and industrial activities has been later invest­ed in unproductive consumer goods and in building big plac­es for the ruling elites.

 

Even in recent times most of our remittances are being spent on imported luxury goods. It is clear that the cap­ital worth billions of rupees in our banks and financial institutions is still caught up in unproduc­tive sectors. The control over state resources of crony capitalists, mid­dlemen of foreign companies and various cartels and syndicates has further exacerbated the problem.

 

Labor migration

 

The presence of a large and independent manpower is one of the prerequisites to industrial rev­olution. After the Sugauli Treaty, abled-bodied Nepalis started to enlist with foreign armies. Now a big chunk of our able-bodied men and women in rural areas are working abroad as migrant laborers. Instead of importing capital and export­ing goods, we export manpower in order to import capital. Nowhere in the world has this flawed model led to prosperity.

 

Neglect of science

 

One of the commonalities of the developed countries is their emphasis on science and tech­nology. Scientific quests and discoveries were at the heart of the first, second, third and now the fourth industrial rev­olution. But starting with the mysterious murder of Nepal’s first scientist, Gehendra Shumsher, there has been an almost criminal neglect in the establishment of research facilities and in emphasizing sci­ence and technology education. Our public education is in dire straits and our educated manpower is increasingly migrating. This is no road to prosperity.

 

What is needed right now is a serious national debate on all these issues. We don’t have the luxury of continuing to be an underdeveloped island amid an ocean of prosperity. As Bhupi Sherchan said: “Who can fall asleep in a hay field when logs are on fire all around?”