Wednesday, April 20, 2005

Peace Bond: Sign of Problems

For the first time, Nepalis were given a chance to know that the King alone is unable to run the country smoothly. The news of the government issuing Peace Bond to raise Rs. 5.5 billion is a clear effect of the lack of fund for coming fiscal year as the international donor communities have shy away.

Despite stern warning to the press, some noted newspaper criticized the government's latest decision saying 'this would have a long term effect on Nepali economics.' No wonder, it was a tested formula - by neighbors. India and Pakistan did the same after donors stepped back due to their nuclear test. Notable here is that the Indian were more successful in it than Pakistanis and that's because Pakistan was being ruled by a man.

Nepali government has probably hopes that Nepalis living abroad would be interested in the bond - and for that reason, it could be bought in equivalent to dollars and named 'Peace' - a word that would attract anybody.

Will I buy it? No, not because it has nothing to do with the peace. It will be used more for army's budget and to kill the Nepalis. Since, the rebels' leader has denied talking in such condition, there is no way we should give money to army to kill Nepalis (especially in the condition when their acts are hidden due to media absence). There have been lots of talks about human-rights abuses by the army, even the King in his interview with TIME magazine, didn't deny that.

The present government is the most uncompetitive in recent times, thus we can expect no visionary program from them. They probably overlooked the future of economy while the King told them about the bond. But that will be the big burden for Nepal in coming future because - neither it isn't likely that the country is capable of developing national resources to pay back nor the international donors seem convinced with the King's move and motives. Also another damaging factor is that the interest rate of the bond would be much higher than that of international loan (and also considerable is the valuation of the bond in dollars).

The King has to step down someday - there is no alternative to that but it looks like he wants all Nepalis to curse him for burden when he steps down.

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