-Kusum Bhattarai

It has been seventy years since Nepal’s rulers, political parties and leaders started to share dreaming of ‘breaking the development’s root. The word ‘development’ has now replaced by ‘prosperity’. The dream of prosperity that the Nepali people have been dreaming of for a long time has not yet come true. Globalizing capital and market expansion may have given Nepal some modernity, though we are still a hundred and fifty years behind than the United States and Europe. This is because in every age of the past, we were unable to grab the possibilities and opportunities for prosperity.

Development or prosperity is not just economic progress. This is a rite. The development of prosperity-oriented culture, thinking and contemplation in us is at a slow pace. Wishing for prosperity, dreaming, but if you see the opportunity and possibility to make the dream come true, give it away from your own narrow thinking and behavior. The US-funded MCC agreement is currently suffering from a similar narrow and developmental impasse.

Does this country need development or not foreign investment or assistance for development should be accept or not? If we ourselves are unable to help, someone offering it with a noble spirit thinking of Nepal’s interest, why not take it? Will we always live in backwardness, poverty, minority, underdevelopment and inferiority? Such demonic questions are before us. Our narrow mindedness is responsible for not come true our dreams of prosperity. In an age of globalization, amplification, economic liberalization, open market economy and mutual assistance, we are becoming prejudiced against capital.

No matter whether it come from United States, United Kingdom, and Japan or from Norway. Capital is always a useful dimension. Capital is indispensable in today’s capital age for development, prosperity and advancement. In such an age, the United States is giving us 60 billion rupees in grants to invest in multidimensional areas of development. Still, we are hesitant to take. We are injured with the disease of suspicion.

Great potential for development

After the transformation of 2047 BS, foreign investment was flowing into Nepal due to the policy of open market and economic liberalization taken by the Nepali congress government. In the hope of institutional development of democratic system in Nepal, the democratic countries of the world like USA, UK, India, Japan and Australia had shown interest towards investment. The World Bank had also started investing in projects in Nepal. Entrepreneurs, businessmen and the private sector as a whole were also encouraged by this.

Violent revolt started by the CPN(Maoist) in 2052 BS disrupted the foreign investment. Foreign institutions and companies who were helping Nepal started to leave. Not only did the closure of industries in the country which reach its peak, but the pace of establishment of new industries came to a standstill. This has hampered our overall development process. All state spending was concentrated in the conflict. Foreign investment also focused on conflict management rather than development.

Abundant water resources are being wasted. the hydropower projects could not be constructed, also the under construction work was stopped. This increased the cost of those projects. As the project of electricity did not meet the demand, there was a shortage of electricity in Nepal and we were hit by 18 hours of load shedding daily. The labor force that had to be produced in the country was forced to work in the 50 degree heat of the Gulf at the cost of a penny. Due to domestic labor force, foreign investment, lack of electricity and political instability, not only the investment climate in Nepal has been disturbed, our dream of development has been shattered.

After the 12-point understanding, the people’s movement, the Comprehensive Peace Agreement, the drafting of the new constitution and the formation of the government in the country through the democratic process after the general election, we have ample potential to attract foreign investment. There is no violent activity now, no Nepal  strike. There is no shortage of electricity. Nor is there an old cornerstone of political instability. Until a few months ago, Nepal had a two-thirds majority government. Had the MCC been passed, it could have been a key for Nepal to import investment from all over the world for development.

The sun has not yet risen on our conscience. We have been protesting without inter-realizing the long-term impact of not having an MCC pass on our development journey. We have a kind of mood of rejoicing in protest. If we are not able to take the amount that the United States is going to give in grants, not only foreign investment, we will not be able to take foreign loan assistance. Our credibility on the world stage will erode. Therefore, passing the MCC is essential to create a credible environment for foreign investment and assistance. We must stop doubting and move towards the great potential of development.

Why an obstacle to development?

Two decades ago the Arun III Hydropower Project was destroyed. The Arun III project, which was started in 2043 BS, was continued by the governments of Krishna Prasad Bhattarai and Girija Prasad Koirala after 2047 BS.

However, the then UML leader Madhav Kumar Nepal wrote a long letter to the then World Bank asking not to implement Arun III. The atmosphere was such that the World Bank withdrew from Arun.

In 2075 BS, an agreement of Arun III has been signed between Nepal and India for the construction of the project. After all, two and a half decades of the Arun III project were wasted due to anti-development elements. If the Arun III project had gone ahead then, Nepal would have made a lot of progress by now. There wouldn’t load shedding for 18 hours daily. Industrial production wouldn’t decrease due to load shedding. Development would be gaining momentum. Economic activity, employment opportunities may increased.

When will we learn from the mistakes of history? How long will you continue to discourage foreign investment in the country for development? That is the main question.

A team led by Fatima Z. Sumar, vice-president of compact operations at the MCC headquarters, who recently returned from a visit to Nepal, has said that “Nepalese do not like development and that parliament should decide whether to take assistance if stimulus and negative propaganda are deemed appropriate.” MCC has also made it clear that it will go to other countries as similar squabbles are taking place in Nepal.

There is a very popular saying in Nepali – ‘The unfortunate always gets angry while eating’. MCC can be a basis for Nepal’s economic development. According to the agreement, not only the power transmission line connecting Lapsiphedi in Kathmandu to Gorakhpur in India will be built, but also the development of infrastructure in the Nepali land where the transmission line will be taken. Roads will be built. Irrigation and electricity will be provided. Employment will be created. In particular, it is an overall development package, which will open many doors of possibilities for Nepal’s economic development.

Once the power transmission line is built, we will be able to sell the electricity produced in Nepal. Our electricity is being wasted due to lack of transmission line and this year alone Rs 1.5 billion has been wasted. There is strong potential for sale of electricity generated by public and private sectors, MCC said. Nepal imports more than 200 billion tons of petroleum products annually. The trade deficit is peaking. Foreign exchange reserves are low. There is no export, only import. In order to strengthen the economic situation, we have to sell hydropower and for that power transmission line is indispensable. The private sector has invested billions in Nepal’s hydropower. They have high hopes from MCC.

Mongolia has recognized the MCC brought by the United States for the purpose of poverty alleviation. Fifty countries in the world have implemented MCC, from which those countries have made great strides in development. However, there are unnecessary suspicions in Nepal about the MCC, which has immense potential for development. Are we Nepalese, who are always in the habit of rejoicing in poverty and backwardness, indulging in development, prosperity, progress and happiness? If not, why are we reluctant to accept the billions of dollars that the United States is going to provide in the form of grants?

The question of democracy

Why is the US going to give billions of rupees in grants to Nepal? What is his interest in this? Some even question the donor’s intentions with this question. What the skeptics do not understand or understand is that the United States is a nation that has long practiced democracy. Today’s liberal and democratic American civilization has taken hundreds of years to develop. The United States wants to see democracy, human rights, fundamental rights, freedom of the press, etc. ensured in all countries of the world, and it has been investing and supporting it.

Either it is China or Iraq, Afghanistan or North Korea. The United States is interested in human rights and freedoms. Nepal has been practicing democracy since 2046 BS, except for some intermittent interruptions. Loyalty to democracy is strong among the Nepali people. The people’s movements for democracy in the recent past have made it clear that the Nepali people do not like any kind of autocracy and arbitrariness.

The United States, which has been closely studying and monitoring Nepal’s democratic process, the state of human rights, freedom of the press, and fundamental rights, has focused on institutional development and development for the sustainability of the democratic process. It is clear that Nepal’s democratic system is sustainable if there is development and economic progress. Looking at Nepal’s democratic practice, the United States is ready to assist us. Without democracy in Nepal, American aid would not have come. Therefore, the MCC agreement can be beneficial and useful in terms of the institutional development and sustainability of our democracy.

Democracy is at the heart of US support. It contains the goodwill that Nepal’s democracy should be based on economic development and sustainability. Conflict resolution is based on democratization and poverty alleviation, and peace in the world community depends on it. If we look at MCC through the eyes of democratization, there is no reason to be dissatisfied with it.

when we cant valued the goods we have

We ourselves are not immediately able to raise funds for the construction of power transmission lines. The amount that Nepal can allocate capital through the budget every year is only Rs 400 billion. 60 billion will have to be released from this, which will upset the economic balance. Cutting other development costs also hinders other dimensions of development. Even if they try to make it with a loan from the World Bank, no one will believe it. Who would believe that we would not be able to get a loan from the United States for free?

China will not subsidize us. China is a ‘self-center’ country. That only relates to us by moving the calculator forward. China will only lend or invest if it has economic benefits. We will charge 3 percent interest when China lends. We are in a dilemma to pay 3 percent interest on the loan of about Rs. 13 billion taken by Nepal from the Asian Development Bank of China. It would be foolish of us to build such projects by rejecting US grants and borrowing from China at high interest rates. Getting the goods will be like not getting the trick.

Our water resources are being wasted. A campaign to sell electricity generated by building new hydropower projects, make the country economically prosperous, create an environment where domestic labor can survive, reduce imports by increasing domestic production, increase foreign exchange reserves and reduce trade deficit will not emerge.

For this, we must speed infrastructure development, implement huge development plans. The MCC agreement is an opportunity to move in this direction, let’s not miss it. Let’s not underestimate the potential for development. Let’s not shatter the people’s dream of prosperity.