Surendra Bir Malakar, 53, is president of the Nepal Chamber of Commerce. A graduate in humanities, Malakar is also proprietor of Shangrila Handicraft Industries, Alfa Auto Parts Traders and Nepal Vehicles Services Co. He is also a promoter of Alliance Insurance Company besides being vice president of the World Association for Small and Medium Enterprise (WASME) and former general secretary of the International Chamber of Commerce, Nepal Chapter. Winner of Commercially Important Person 2008, Malakar talked to Prem Khanal of The Kathmandu Post about the problems facing the private sector and its role in New Nepal. Excerpts:How is the private sector doing at present?
Well, the protracted transition has created a lot of difficulty for us. The private sector has not enjoyed much moments of peace. Incidences of abduction, banda and extortion are still prevalent. Highways are being closed now and again, and trade unions are hindering industrial operations. Furthermore, we do not have a government even three months after the CA polls. We don't know what the government's policy is now or what it will be tomorrow. The private sector is confused. Investors do not feel secure about their investment. New investments are coming with ease. Foreign investors are at unease. Our main concern is that the Maoists, the largest party in the CA, says it accepts an open economic policy. But it has not shown that in practice.
What has the NCC been doing to address the private sector's concerns?
We are calling attention to them regularly, and have demanded that the government take necessary action to address the problems time and again. In order to end confusion over the policy, we have also recently drawn up the private sector's priorities and will be handing them over to the new government to be included in the common minimum program and upcoming fiscal policy. For economic advancement, we have mainly asked the government to focus on four major areas: (i) Development of hydropower (ii) Promotion of tourism and special incentives for its development (iii) Strengthening of economic diplomacy and (iv) Human resource development.
How is the NCC prepared to help translate the dream of building a "New Nepal" into reality?
Well, we are prepared to make all possible contributions. We are discussing how the private sector can contribute to designing and implementing the federal structure of the state. The private sector will further contribute by creating employment opportunities, forming wealth and keeping the market vibrant and moving. Actually, it is for attaining these goals that we have set the abovementioned priorities for the government. We request the government to seriously endorse and implement them. The private sector is also ready to work with the government to build much-needed social and economic infrastructure, easy transportation and connectivity facilities and social and human capital. We have always urged the government to provide incentives to farmers, focus on agro and herb processing industries and link farms with the market - both domestic and overseas - in order to develop rural Nepal and help people enjoy the fruits of development. We have also focused on capacity building of commodity associations so that they can better serve the markets.
Nepal's export sector has entered a downward trend in recent years. What does the NCC think should be done to revive it?
Security, better industrial relations, more investment and planned industrial development efforts will be needed to revive exports. Special economic zones (SEZ), a program which has already been endorsed by the government but which has not received adequate commitment and finance, must be developed. We have also requested the Chinese government to help Nepal build an SEZ in Panchkhal. Moreover, I think the financial sector, which is among the few fast growing sectors in Nepal, need to realign their priorities and come forward strongly to support industrial development. The private sector should also work seriously towards applying their skills and know-how to tap the export potential and penetrate overseas markets.
Industrialists cite trade unions as their major problem at present. How have they been creating problems?
They are creating problems by putting forward unhealthy and impractical demands. They are not concerned about how labor productivity can be increased to achieve better production and better returns. Instead, they are working to serve the interests of political parties. This undue labor stir has sharply worsened industrial relations.
What's the status of labor law reform?
We have held serious talks and discussions on the subject at the tripartite committee which includes employers, employees and government representatives. The committee had even drafted a new law. But it got nowhere as the government wasn't much enthusiastic about taking the matter to its logical end. As a result, our long-running demands like "no work no pay" and a "hire and fire" provision in the labor law continue to fall on deaf ears. Labor law reform has been shelved for now.
There is a large number of representatives from the private sector in the Constituent Assembly (CA). Have you talked with them to push for restarting the reforms?
Yes, we have. But we must understand that the private sector's representation is not that large. Also, all the members have been nominated to the CA by political parties. Ultimately, it is the party's policy that prevails over an individual's priorities. As individuals, they cannot be expected to do much. Nonetheless, they are trying their best to convince the parties to place the economic agenda at the top.
Source: eKantipur
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