The proliferation of international and national non-governmental organizations began with the ushering in of democracy in 1990. Obviously, the priority was all round development, particularly education and health sectors. Now, the Social Welfare Council (SWC) has the responsibility of promoting, facilitating, coordinating, monitoring and evaluating the I/NGOs conducting their works in the country. However, as per a preliminary report of the National Vigilance Centre, there is lack of strict regulation and monitoring of the I/NGOs that have suddenly grown in the country. This is a matter of serious concern as in many cases the SWC has no knowledge where and how the I/NGOs are functioning. The SWC is seen to be an institution that is not doing its task. This might have to do with the existing SWC policies, structure and working procedures which have hindered its role as a regulatory body. Any activity taking place in the country as regards the non-governmental organizations must be in the knowledge of the SWC, but that is not the case.
The problem with many I/NGOs is the amount of funds they channelize without the SWC being aware of it which shows how the I/NGOs have taken benefit of the loopholes of the rules and regulations that govern them. It is even reported that there are I/NGOs operating in the country which have bypassed the mandatory registration with the SWC. They have been illegally operating in the country, but no action has been mooted against them. The I/NGOs have capitalized on the weak SWC intervention to channelize big amounts without the knowledge of the government itself. Moreover, the transaction of foreign currency that comes in the name of the non-governmental organizations ought to be spent in Nepal, instead of its conversion into Nepali rupees. The registration of the I/NGOs and their projects ensure that they do not indulge in activities against the interests of Nepal.
The unbridled activities of the I/NGOs which bypass the SWC to utilize the funds made available through bilateral and multilateral agreements with state agencies should be controlled, as there is every probability of the country not gaining much from their presence. The Social Welfare Council has to be strengthened so that it is able to strictly monitor and evaluate the I/NGOs working in the country, and bar any of them if found to be working against the agreement with the SWC. It is agreed that the I/NGOs make important contributions through their works in various sectors, but without strict monitoring some of them would not be playing according to the rules and may prove detrimental to the country’s interests itself. There should be one window policy for the funds entering the country through various agreements, and the I/NGOs should not have open access to them. The urgent need is for a stronger SWC that can keep a check on the I/NGOs in the country so that they work as per the proposals of projects that they have submitted. But, for this to materialize, the SWC should be granted the authority to act accordingly.
Some respite
Acquiring a passport is an arduous task taking an awfully long time for the common man. People queue at the Department of Passport (DoP) premises since early in the morning and many of them coming from outside the capital city even camp outside the office. A lot of time is wasted to procure passports for there are a lot of hassles involved. In order to facilitate the passport seekers the DoP has started opening nine counters from eight in the morning. This should provide some respite to those seeking passports and save their valuable time as there is a rush of people seeking passports in order to work as migrant workers in foreign countries.
The opening of the nine counters would be helpful to some extent to ensure smooth and prompt services. This would hopefully help in
managing the crowd of passport seekers who had to queue for hours, and they would no longer be required to stay in long queues. This would assist in some measure to provide passports in a simple and efficient manner. In fact, making passports available to the seekers in their home district should be the practice.
2 Story Picture
Nepal is one of the poorest countries with a per capita income of around $1,300. It ranks near the bottom in human development index, with illiteracy rate high. Food security is a problem, and acute power shortage is stifling the economy. These measures indicate the level of poverty. The way to get out of such abject poverty is through economic growth. The natural question then is: what factors lead to high economic growth?
Economists agree that the availability of natural resources, amount of physical capital (machineries, plants), human capital, technology and institutions determine growth. A country that has more of these resources grows faster than others. However, there is debate about the relative importance of these factors. Some argue that political and economic institutions are the critical determinants of economic growth, as Daron Acemoglu and James Robinson do in their book Why Nations Fail. They backup their argument with results from empirical analysis, which shows that good institutions trump geography and trade. Such a finding has much relevance in Nepal’s case and experience.
A landlocked country, Nepal does not have access to the sea. It is not endowed with many natural resources, besides abundance of fresh water. More than a century of autocratic Rana rule, denied education to people limiting the spread of knowledge. These factors partly explain Nepal’s lack of development over the years. However, the other factor that is equally, if not, more important is the role of institutions—weak or non-existing conducive for growth. In broad terms, institutions are defined as the rules of the game in a society. These include set of laws and regulations, government bureaucracy, property rights, societal norms, traditions as well as habits and beliefs. Good institutions promote economic growth by providing security of property, creating incentives for people to engage in productive economic activities and by letting the market allocate resources efficiently through the price signals.
Bureaucratic hassle, red tape and demand for bribes have adverse impact on growth. Starting a business requires approval from several government branches or departments in Nepal. Unnecessary layers of bureaucracy, cumbersome procedures as well as demand for bribes raise the cost of doing business and creates less business-friendly atmosphere. Weak or
selective law enforcement is another problem. Everyone should abide by the same set of laws, rules and regulations.
Having worked in the U.S.A. for over a decade and read about work habits in other developed countries, I have to admit that the Nepalese work habits and attitudes are holding us back. In the West, people value work—whether it is white-collar (skilled job) or blue-collar (unskilled) work. They are hard-working and honest people who value and appreciate work. That is not universally true in our case. Some of us are shy about doing low-skilled jobs. This could be a cultural thing. In his highly acclaimed book Fatalism and Development in Nepal, Dor Bahadur Bista makes an excellent point about our attitude towards work, and belief in fate rather than on work. Bista points out that a good job is viewed as one that requires minimal or no actual effort yet pays a good salary. People who hold such jobs are looked up to and respected in society. This point is relevant these days when record numbers of youths are going overseas for employment. Many do jobs in foreign countries that they would not do in Nepal. They probably get better pay there. But if they worked as hard here, they could likely make as much. Yet many still prefer to work overseas.
Disregard for time and poor time management are other examples of weak institutions. In our culture we do not value time; although such attitude is slowly changing. Time is a resource. We often hear references to “Nepali time”—meaning it is OK to be late. Most people are not serious about being on time for work or appointments.
Since good institutions are necessary for economic growth and development, what can be done to strengthen the weak institutions and create them where such institutions are lacking? A good place to start is schools. Children can be and should be taught about values like honesty, punctuality, ethical behavior, and respect for authority as well as hard work in school.
Education also strengthens institutions through the spread of ideas and knowledge. When people gain knowledge they become more receptive to new ideas. The adherence to the caste system and the belief in fate are not as strong as in the past, because people are exposed to the outside world and to new ideas. Anti graft bodies like the Commission for the Investigation of Abuse of Authority should be independent and free from government meddling. People should demand cleaner and more efficient bureaucracy and put pressure on the government to improve services. Overlapping and conflicting laws or regulations should be streamlined to create a hassle free and customer friendly atmosphere. Bringing about these changes is hard, much easier said than done but that does not mean we should not try.
Khadka is an economist at Institute for Integrated Development Studies (IIDS)
3
Have a safe journey! This is a very popular phrase worldwide. Yes, when someone sets out on a journey parents, elders, well-wishers and others wish for a safe and comfortable journey. However, it carries a deep meaning in our context where travelling has always become a deadly affair. In the modern society, one cannot be confined to one place and needs to move to other places for various reasons .Therefore, the means of transportation play a significant role. Although many parts of the country are connected through air links, it is too expensive for the common people. Thus, road link is the only option left for the majority of the populace for their mobility.
Almost every day there is one or more news of road accidents in one or another part of the country. However, the nature and cause of accidents may vary. Yet, human error is attributed for most of the accidents.
So far in 2014, there have been a number of accidents in various parts of the country in which many persons have lost their precious lives. Field investigations reveal the main cause was reckless driving.
Take the bus accidents that occurred on January 1, February 6 and April 30. In the first case, a bus heading to Rukum from Kathmandu veered off the road and fell 100 meters into a river in Salyan district. Eight persons lost their lives and 36 others suffered injuries. The February 6 accident that occurred in Chidipani, Palpa killed 14 persons. Whereas, on April 30, a passenger bus en-route from Sandhikhark to Butwal collided with a truck taking the lives of at least 18 passengers and injuring more than two dozen others. The first two accidents happened after the drivers dozed off, while the third accident occurred while overtaking. According to a Nepal Police statistics, every year around 1500 people are killed in road accidents in the country. Likewise Nepal Health Research Council states that road accidents are the fourth leading cause of death.
The traffic police accredits a number of factors including negligence on the part of drivers, reckless, speed driving, drunk –driving, overloading, and overtaking, for the frequent road accidents. A number of studies show young driver and riders are more prone to road accidents. Actually, driving is considered a much neglected job in our country. When people fail to find other jobs they take up driving. A person who is at the wheel always carries several precious life while driving. Slight negligence on the part of driver endangers the lives of many people. Unfortunately, neither the commuters nor drivers themselves take the things seriously unless some untoward incident takes place
4 epal should brand itself as an inexpensive destination to encourage mass tourism: Lama
Hari Man Lama is the Executive Chairman of Incentive Tours and Travels, which is the GSA of Malaysia-based long-haul, low-cost carrier AirAsia X. Involved in the tourism business with his Incentive Group of Companies for the last 18 years, Lama is a very dynamic personality with a strong vision to drive his business forward and ensure growth.
In an interview with Nepalnews.com, he said Nepali migrant workers heading to Malaysia have benefitted a lot in terms of cost and connectivity since AirAsia X started conducting five weekly flights between Kuala Lumpur and Kathmandu. Also a travel writer with a book titled Divine Destination to his name (the book is about his pilgrimage to Holy Mt Kailash and Lake Mansarovar in Tibet), he said Nepals tourism sector has a huge prospect with a lot of untapped potential.
1. It has been almost two years that AirAsia X has been operating in the Kathmandu sector. Please tell us what about your experience so far and future prospects?
AirAsia X conducted its maiden flight from Kuala Lumpur to Kathmandu with an Airbus A330-300 in July 2012. Starting from twice weekly flights, the low-cost carrier currently operates five weekly flights between the two cities and have plans to operate additional flights in the near future.
So in a short duration of time, we have experienced steady growth in passengers movement, making us one of the major international airline companies operating in Kathmandu route. And since Nepal has strong tourism potential and has a rapidly expanding aviation market, we expect the number of the passengers to grow significantly in the coming days.
2. What are your USPs (unique selling propositions)? And what is your marketing strategy?
AirAsias innovative low fare is both its USP and biggest marketing strategy. But just because we are low cost airline doesnt mean we compromise in service. We are a low-cost airline, but provide quality service as well as world-class comfort and safety for travelers who opt for our airlines.
Besides this we have several USPs to our name. AirAsia X specializes in connecting major Asian destinations at a very low-cost. This is why the budget airline based in Malaysia is also called Asias largest low-cost carrier.
With its medium and long-haul operations, AirAsia X connects Nepal to over 78 destinations in 21 countries including China, Korea, Japan, Brunei and Australia. AirAsias vast network allows more convenient connections for Nepali travelers at very low cost.
3. Many international airlines operating in the country aim at Nepali migrant workers to increase their market share. Malaysia being one of the major labour importing countries from Nepal, should we presume AirAsia X is also here chiefly to cater to migrant workers?
With an estimated 500,000 Nepali currently involved in various jobs, Malaysia is one of the top destinations for Nepali migrant workers. The entry of AirAsia X has, for one, ended the monopoly of Nepal Airlines on the profitable Kathmandu-Kuala Lumpur sector and has increased travel demand between the two nations. Consequently, Nepali migrant workers heading to Malaysia or who are already there have benefited a lot in terms of cost and connectivity since AirAsia X started conducting five weekly flights between Kulal Lumpur and Kathmandu. We foresee increased labour traffic between the two countries in the coming days and due to this reason robust growth in seat demand.
However, we cater both to migrant workers and tourists. When we started operating in the country two years ago, almost 95 percent of our passengers from here were migrant workers. Now 35 to 40 percent of our total outbound passengers are tourists and 60 to 65 percent are migrant workers. Moreover, during peak season tourist occupancy can sometimes go up to 60 percent. So what is the logic behind putting so much emphasis on tourists? We think that targeting migrant workers only will not be sustainable for international airlines operating in Nepal in the long run, although labor traffic still accounts for around 80 percent of seat demand in most of the international airlines.
Therefore, we have to bring in more tourists into Nepal not only to increase our business, but to rid ourselves from the folly of relying only on migrant workers to ensure steady growth of passengers in the coming years
4. So tell us how can budget airlines like AirAsia X contribute towards increasing the prospects of Nepals tourism sector?
From the very begining we have been focusing our attention to bring in more tourists into Nepal through our extensive international connection. But in the meantime we want to also support and give quality and affordable service to Nepali migrant workers, who are currently our main customers in Nepal. Although we should be no 1 international airlines that take Nepali migrant workers to Malaysia, we want to also introduce and promote Nepal as a top holiday destination in all the countries Air Asia and Air Asia X flies to.
But before answering how can budget airlines help in attracting more tourists into the country and thereby contribute in growth and development of Nepals tourism sector, we have to understand the concept of budget airlines. It is a known fact that the majority of tourists coming into Nepal are budget travelers. This is because Nepal doesnt have the kind of excellent tourism infrastructure as well as products and services to bring in luxurious, high-end travelers. So looking at both the local situation and international tourism trend (hit hard by global economic crisis), Nepal needs to focus more on budget travelers to increase the number of tourists coming into the country and help in development of tourism sector and ensure the economic impetus it can give.
Nepal is already blessed with natural beauty, scenic countryside and rich historical and cultural heritages. Now if we can only promote and brand Nepal as a low-cost tourist destination, we can encourage mass tourism that will not only give the much needed boost to the countrys tourism sector, but also contribute towards the economic growth of the country. This is where the concept of budget airlines can help. Given the economic recession the world over, it is but natural that tourists will avoid expensive destinations and tourism packages. In this situation if Nepal can portray itself as an inexpensive destination through budget airlines like AirAsia X then that can result in a much-awaited tourism boom in the country which will create more jobs, help businesses and increase the living standard of ordinary Nepali people.
However, I still say we have not been able to attract as much tourists as we can because we have been lagging far behind in tourism promotion and branding.
5. As a leading tourism entrepreneur with considerable experience in the travel trade business, tell us about the tourism sector in the country and how can a robust aviation sector help in its growth?
If the government invests in the development aviation sector, it will ultimately help in the development of tourism in the country and vice versa. However, aviation alone cannot boost tourism. This can only be done by increasing the capacity of hotels, by investing in vital infrastructures like roads, transportation system, conserving our nature, rich biodiversity and wildlife, and preserving our world heritage sites. Or maybe even by promoting Nepal as an adventure sports destination.
Civil aviation needs to focus on upgrading the international airports as well as domestic airports across Nepal. Tribhuvan International Airports management should be improved in order to increase the quality of air service infrastructures, ground handling and other airport facilities. Improvements in these fronts will go a long way in increasing tourism traffic in Nepal.
Being a landlocked country, international airlines are the only means through which Nepal is connected to the wider world. In fact, the national as well as international airlines operating in Nepal have been instrumental in the development and growth of the countrys tourism sector and promoting Nepal as a destination internationally.
Therefore, they have made significant contribution not only towards the development of tourism sector , but in the overall economy of the country. As a result, there is great prospect for international airline companies in Nepal.
6. It is said that the national carrier should be strong for the development of tourism and aviation sector in any country? Do you agree with this viewpoint?
Yes, our national carrier should definitely be strong , competent and as better as any world-class airlines. The role of a national carrier is crucial for development of tourism sector in any country and an engine for economic growth. Sadly, Nepal Airlines Corporations international flight operation is disappointing with over 90 percent of international aviation market of the country in the hands of international operators. This is mainly due to the fact that our national carrier has massively cut down its international operation from 21 destinations back only a decade ago to a mere five international destinations today.
7. So what should be done to save the national carrier?
NAC should immediately purchase more aircraft to improve its connectivity and fly directly to worlds leading destinations.It should come up with good business strategy to continue to grow.This will have long-term advantages for the both the aviation and tourism sector of the country. Wherever there is competition, there will be more business. It isnt that if Nepal Airlines becomes better, other international airline companies will lose business or vice versa. And I dont think that AirAsia X or other international airlines will lose market share if the national carrier becomes stronger. I dont agree with such a notion competition will only enhance the market and help it grow.
Similarly, the quality of air service infrastructure in Nepal needs to be improved gradually and operational difficulties that exists should be done away with. The government should also think about the kind of support and incentives it can give to international airline operating in Nepal during the off season and give a serious thought to building an alternate international airport in the country to ease the pressure on TIA.
One of the reasons Nepal is not getting as much tourists as it should be is because Kathmandu is not a transit point or a stopover for any international airlines, but the last destination. If we can really turn TIA into a regional hub by giving more traffic rights to international airlines then that will help in promoting Nepal and lead to growth in tourism.
8. Since majority of your outbound passengers are Nepali migrant workers, does AirAsia X have any CSR programmes that is chiefly meant for their welfare?
Both Incentive Tours and Travels AirAisa are committed to causes that support people and strengthen communities in need. Therefore, we are supporting orphanages in Bhaktapur as well as providing logistic support to organisations working in educations projects in rural areas.
But if you talk about our corporate social responsibility policy chiefly meant for migrant workers, then the concept of budget airlines itself is a very good incentive for our workers abroad. Instead of paying high amount to go to Malaysia, they have to pay less on airfares if they opt for AirAsia X. Plus, we regularly throw promo fares to help frequent flyers fly cheap.
At the same time,we also have some innovative CSR programmes in the pipeline to support migrant workers, but we dont want to promote ourselves in the name of CSR.