Will constitution herald new era in development?

Some rule out the argument outright. They say constitution is just an excuse

“You see, the situation will remain the same until a new constitution is drafted.”

Probably this is the most common comment one can hear from a skeptic bureaucrat or an expert on the lack of progress on development and other socio-economic fronts.

Politicians however put it differently. “The country will witness opening of floodgates for development once the new constitution is promulgated.”

So, is the lack of a full-fledged constitution the major reason for Nepal’s backwardness and lack of progress on socio-economic fronts? Will the new statute herald a new era in development?

Some say yes. But some others rule out the argument outright. They say constitution is just an excuse.

It has already been around a decade since the Maoist-led armed insurgency was brought to an end. Since the Comprehensive Peace Accord (CPA) was signed, the peace process is moving toward a logical conclusion, albeit painstakingly.

The political leadership has failed to accomplish the task of constitution making and the country in the recent years has badly marred by political brinkmanship over who is to head the country and lead plum ministries. This has fueled widespread frustration.
But, society has so far remained patient and avoided any major violent agitation during these past years.

Many economists and other experts believe that a genuine entrepreneur doesn’t face any serious trouble just because of incomplete constitution making project and the growing political brinkmanship. An interim constitution ensuring fundamental economic rights is in place and the country for some years hasn’t faced any serious problems that affect initiatives aimed at development and economic prosperity.

Former Governor of Nepal Rastra Bank Deependra Bahadur Kshetry is one among those who don’t buy the argument that the failure in making new constitution has been taking its toll on development activities.

Kshetry believes that those who have a strong will and plan for any development project can complete it without any serious trouble in Nepal.

“Constitution is just an excuse. In the past, they said development activities were badly hampered due to government delay in unveiling annual budget,” Kshetry told Republica. “This year, the annual budget was introduced on time. But, performance with regard to effective spending was disappointing.”

However Suraj Vaidya, former president of the Federation of Nepalese Chambers of Commerce and Industry, said though the Interim Constitution has laid the fundamental grounds for development and economic activities, a full-fledged constitution could make a big difference. “But, that’s not enough. I can guarantee that the present economic growth can be doubled once there is a full-fledged constitution in place and that gives top priority to economic issues,” Vaidya said.

Vaidya, president of VOITH groups, finds expectations of better situation with introduction of new constitution valid because constitution is the guiding document that defines the country’s major policy orientation.

His observation is that Nepal has better environment for investment in comparison to several other countries. “And introduction of a full-fledged constitution with priority for economic prosperity can double the prospect,” he said.

He said Nepal has failed in exploiting its immense potential-- be it in hydropower, tourism or any other sectors and that adoption of proper policy with clarity in investment issues can help harness the resources.

Vaidya argued that some apprehensions at present are genuine also because the country is going to be restructured and that is bringing historic changes in socio-economic and several other aspects of the country.

“If an investor is planning to develop a mega hydropower project, one can’t be certain whether or not the plant’s key components such as dam and powerhouse fall within a single province after the new delineation,” he explained.

Economic analyst Bhim Bhurtel doesn’t see interim constitution as a major problem. He feels introduction of new constitution doesn’t bring drastic changes. “Because, even the present interim statute has ensured liberal economic policies and has clearly stated that no one can infringe upon anyone’s private property,” he said.

However, he was quick to add that international development partner agencies seemed to be in confusion due to political uncertainty.
He argued that new statute may help such agencies prioritize their area for support with more clarity.
Some domestic and international investors and development partners seem to be in confusion also because of the prolonged political transition.
Despite the wider public expectation, the country’s economy couldn’t make any drastic growth even after the radical political changes in 2006 when the country was declared federal democratic republic.
After 2006, people expected drastic growth in economy as the country had witnessed significant economic expansion after political change in 1990.
In 1990, the then political leadership succeeded to capitalize on the political changes as the then government had delivered new constitution and formed elected government within a year.
But this time, even several years after the success of political movement, the new constitution is yet to be produced let alone the country concentrating its efforts in economic developments.
Even at present, investors from India and China seemed to be competing in investing in mega hydro projects.
Vaidya was confident that a new statute with clear and proper economic policy can attract incredible level of investment to Nepal.
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