Critical Allusions to Foster Republic Order in Nepal

Prof. Dr. Madan Kumar Dahal

Chairman, Mega Bank Nepal Ltd.

2. Governance System and Election Procedure - A Mixed Approach:

The new constitution should adhere to the mixed system with President being directly elected on the basis of universal adult franchise securing more than 50 percent of total votes with all executive powers vested in him/her. The Vice-President should be elected or selected from among the representatives of federal provinces. The President shall appoint the Prime-Minister and other cabinet ministers from within and outside the members of parliament with specific assignments focusing on to run the day-to-day administration, maintain law and order, sustain peace and stability, and spur development activities. The joint strength of the parliament should limit to 300 members comprising 75 percent from elected representatives in the lower house (225), the candidate-population ratio being 1:133,333, and 25 percent to be nominated for upper house (75) on the strength of the ratio of the votes secured by the respective parties during the election especially to accommodate inclusiveness comprising women, janjati, adibashi, dalit, backward communities, and minorities such as Muslims, differently able persons, and government nominees especially from academic and professional groups. The total number of ministers should not exceed 10 percent of the total representatives in the lower house of the parliament. The President shall have the constitutional power to dismiss the Prime-Minister including his/her cabinet on the proven ground of inefficiency, corruption and poor governance.

The parties will not be allowed to campaign with provocative manifesto spreading hatred against particular caste, creed, sex, community, language and religion during the election. The parties and each candidate should furnish the details of all expenses incurred during the election in the respective constituency to the Office of the Election Commission (EC) within given timeframe. The voters must have the prerogative to call back the representatives elected from their constituencies if found guilty of misconduct through a petition to the speaker of the lower house by two-third majority. The tickets to contest general election for parliament to any candidate should be given by the party high command upon competing primary election among the candidates from within the party. There should be constitutional provision for debarring any candidate from contesting election at any level for life time if convicted by the court on the charge of fraudulence, corruption, rape, murder, loot, robbery, dacoit, damage of national property, and terrorism.

The parties securing 5 percent of the total polled votes at the general election for parliament should be recognized as a national party with assistance for a given level of state-funding to promote free and fair election, in addition to other facilities. The election at any level (center, province and all local levels) should be held at the interval of every four-year with the provision for mid-term election in case if ruling party looses majority in the lower house. Under the similar circumstances the rule of Governor would be enforced at provincial level. All existing democratic institutions such as the Supreme Court, Commission for Investigation of Abuse of Authorities (CIAA), Election Commission (EC), Office of the Auditor General (OAG), Public Service Commission (PSC), and Office of the Attorney General should be empowered in the new constitution.

3. Federalism and Restructuring of the State

A maximum seven (7) federal provinces should be created on the ground of economic potential having North-South axis adjacent to China in the north and India in the south to judiciously distribute the economic resources among the people in mountain, hills, and terai (the plain area in the south). The large number of provinces will not be sustainable, for available resources are extremely limited at macro level with a diminutive GDP (US$ 18 billion) and inordinately low GNI per capita confined to US$ 645 as of 2011.

Since there is no overwhelming majority of any caste or community in any of the 75 districts, the proposal for creating federal state on the basis of castes and ethnicity is not justified and absolutely unwarranted. In a small nation like Nepal federal restructuring should be based on the fundamentals of economic capability and not with option employing castes and ethnicity ensuring advanced political rights including the right to self-determination. The ethnicity based states if created would obliterate communal harmony and peace, impair social relations and good-will, diminish religious tolerance, compassion and benevolence, and aggravate dissension between communities ultimately leading to disintegration. In a modern society, every citizen has the liberty to enjoy fundamental rights including freedom of speech, write, and press including the mobility and migration from one place to another in quest of livelihood and descent work, and to undertake business, industry and services depending on his/her choice without disruption.

The political parties at the national level totally failed to induce regional parties in good faith that terai is bestowed with relatively better infrastructures comprising road, electricity, water, communications, irrigation facilities including setting-up of special economic zones, industrial corridor and open access to India for marketing and enjoy other facilities as compared to mountain and the hills. Similarly, in the second decade of 21st Century this is most unfortunate that Maoist party, popularly known as crusader and messiah of proletariats is propagating the idea to establish ethnicity-based federal states ensuring homeland to a few selective communities completely minimizing the rights of a large number of other smaller communities. This would definitely help germinate the never-ending seeds of contention among the most peaceful communities in Nepal.

The Marxian philosophy does not subscribe to the notion and belief in the supremacy of castes, ethnicity and even the existence of nationhood but strongly considers internationalism as a hallmark for global strength and unity to exhibit solidarity among proletariats in the world. The argument put forward by protagonists of ethnicity-based federalism in Nepal is not a sensible reaction to the unitary rule enjoyed by a segment of the society for a long time but explicitly a mission-vendetta containing hatred against one specific community with majority population. This kind of unpredictable and yet unwarranted action of a few fanatics at the beck and call of trivial leaders completely minimized the significance and historic glory of unification of the country and questioned the very existence of Nepal as a nationhood. In democracy political parties are the main actors to play for providing goods and services to people and accelerate the pace of economic development ensuring national unity and integration. This is conspicuously challenged by the rise of newly emerged petty Kabila leaders in mountain, hills and terai heavily engaged in bargaining to sustain their position and mobility like a robot with remote control placed elsewhere. Currently, the issue of federalism in Nepal is becoming more complex and circumscribed by unforeseen political fraudulence and absurdities triggered by outside intervention attributing to lack of farsightedness of major political parties and their leaders.

It is, therefore, imperative to strengthen fiscal federalism to effectively expedite the flow of resources at a reason level from the Center to proposed provinces and local bodies comprising VDCs, Municipalities and DDCs at the recommendation of the Finance Commission (FC) to be set-up replacing the existing Local Bodies Finance Commission (LBFC) under the new constitution of federal Democratic Republic order. In addition, the local bodies shall have the power to mobilize their own internal revenues through different imposts feasible to implement especially the house and land tax, Integrated Property Tax (IPT), Capital Gain Tax and Inheritance Tax to be considered in future. This will be followed by revenue sharing among the Center, provincial governments and local bodies especially with reference to registration duties and revenue received through natural resources particularly hydropower, forest, and subterranean resources. The Center will also provide financial assistance and block-grants to provinces and local bodies at the recommendation of the proposed Finance Commission. The local bodies shall also reserve the right to mobilize internal as well as external loan to expedite mega-projects for sustaining development activities within the jurisdiction of municipalities.

The Central government will have the full authority to collect and spend revenues through mobilizing major imposts such as Income Tax, VAT, Customs Duties, and excise Duties and the contribution of non–tax revenues will be shared by both provincial and local bodies. The theory suggests that the tax system is said to be perfect when revenue is mobilized at either micro or macro level not by increasing tax rates but by expanding legal tax base, improving tax administration, increasing voluntary compliance, and without creating additional burden to the taxpayers.

4. Defense

In Nepal there will be only one National Army with specific assignments to defend the sovereignty of the nation and participate in development activities. The President will be the Supreme Commander-in-Chief of the Nepal Army and at this capacity he will appoint the Commander-in-Chief at the recommendation of the Security Council composed of the Prime-Minister, Defense Minister, Home Minister, and Leader of the opposition at parliament, the Chief Secretary and the Home secretary. The Defense Force, if necessary, will be mobilized by the cabinet at the recommendation of the Security Council and with approval from the President especially when emergency to be declared due to foreign aggression, civil war, and natural and economic catastrophe including drought and famine. The recruitment to Nepal Army should be on the basis of merit and individual capacity as envisaged in the existing Nepal Army Act. The existing provision for Traffic and Armed Police force at the center will continue with improving efficiency and modernization. The federal provinces can separately maintain their traffic police including the municipal police and home guard under Local Bodies Services.

5. Judicial Supremacy

The Constitution will be the Supreme Law of the Land and the Supreme Court will be the apex court in the country with the establishment of Federal Courts at the provincial level that will substitute the existing Appellate Courts. The District Courts will remain intact and maintain status-quo to undertake the usual functions at the district levels. In addition, the existing Special Court will continue to trial the culprit accused for economic offence especially committed by the politicians and government servants. In this context, the role of the Office of Commission for Investigation of the Abuse of Authorities (CIAA) would be crucial and there is need to further empower CIAA by effectively strengthening its capacity to deal with the economic crimes. The revenue tribunals will be engaged in resolving the disputes between taxpayers and the tax offices. Since the Supreme Court is the final authority to independently decide on the disputes relating to all constitutional issues, there is no need to establish constitutional court separately at parallel with conflicting interest between the two judicial organizations. The government should review all existing Acts and Regulations in conformity with and to speed-up the reform programs undertaken by the government in all economic and social areas including education, health and drinking water supply.     

6. Meritocracy

It is extremely essential to induct meritocracy in all spheres and activities of the statecraft to avoid too much politicization characterized by compulsory installment-payments to respective parties in every appointment leading to extreme inefficiency and corruption resulting in socio-economic backwardness in Nepal. The public services must be made highly competitive as well as lucrative and the qualified prime contenders aspiring to join government services shall be competing examinations held by the Nepal Public Service Commission (PSC). The 21st Century is the era of competition and merit and, therefore, Nepal should adhere to the policy of meritocracy in theory and practice for improving efficiency, competitiveness and productivity of human resources, the wealth of the nation, instrumental to accelerate economic development. Let’s derive lessons from the progress and prosperity in South-east Asia attributing to meritocracy. 

7. Resource Allocations to Local Bodies

There should be built-in constitutional provision for local bodies to ensuring 30 percent resource allocation during the formulation of budget at the Center each year. It is, therefore, extremely essential that Local Self Governance Act (LSGA) 1999 must be amended as per the requirements to adjust the provision for provincial government and local bodies especially to mobilize internal as well as external resources. Consequently, there is also need to review existing Income Tax Act, VAT Act, Customs Duties Act, Excise Duties Act, and other Acts and Regulations pertinent to non-tax revenues.

8. Good Governance

The accounts of political parties must be audited by the Office of the Auditor General (OAG) at the end of fiscal year and that must be officially published in a government newspaper. The government must take action against the irregularities identified by the OAG in its annual reports submitted to President each year. The advanced payments to government servants to undertake public activities should be approved by the concerned authorities only after settling-down the previous advance payments. The bureaucracy, army, police and the assignment with salary and fringe benefits paid from government treasury must remain neutral, and their services should be terminated if found associated with political party at any capacity. The economic offences must be dealt with stern action.

The high level public figures and personalities including President, Vice-President, Prime-Minister, Speaker of the both houses, Chief Justice and other judges at different levels, Ministers (including state and assistants), Chairman and Members of Constitutional Organizations, Vice-Chair and Members of National Planning Commission (NPC), Governor and Deputy Governors at Nepal Rastra Bank (NRB), top positioned bureaucrats such as Chief Secretary, Secretary, Ambassadors, Jt. Secretary, Executive Chairman, Chairman and Board of Directors, GM of SOEs, members of the Commission set-up by the government, and top ranking officials in the army and police should declare their property within a month of their assumption in office, and similarly they should declare the same just before two weeks of their exit from the public position. The promotion of civil servants especially joint secretary and secretary must be on the basis of merit and should not be transferred at least for a period of two years. The tenure for government servant should be either 58 years of age or 30 years of services whichever is earlier applicable to retirement, but this would be not applicable to army, judiciary, and education services.

9. Citizenship

A domicile aged sixteen shall be entitled to get citizenship if he/she is descendant (bansaj ko nata) of Nepalese parents, and also by birth (janma siddha adhikar). In addition, citizenship shall be provided on the basis of matrimonial relationship especially applicable to foreign women married to a Nepali. The state shall also provide naturalized citizenship to a person continuously living in Nepal for the last twenty years. The voters registered during the general election after the promulgation of the Constitution of Nepal 1990 should be entitled to get naturalized citizenship ensuring their rights equal to what is provided for the citizen by birth. And also it is good to provide residential citizenship to a person or family if they are willing to undertake enterprise with a given amount of investment in priority areas as envisaged in the proposed Citizenship Act and Regulations.

10. Reservations to women, janajati, indigenous and backward communities, dalit, Muslim minorities and differently able persons:

The government should set-up a High-Level Commission to devise an appropriate reservation policy with a view to ensuring inclusiveness and strengthening capacity of women, janjati, indigenous and backward communities, dalit, and Muslim minorities including the differently able persons for enabling them to competitively participate in the activities at the national level.

11. Economic system

The vision or mission of Nepalese economy should be to build a strong economic nation-state through active participation of the people ensuring a high quality of life to each individual and household within given timeframe. To attain this goal the proposed constitution for Federal Democratic Republic of Nepal should adhere to the policy and develop strategy for devising export-led and private sector-led open and competitive economy with due consideration to social security and welfare of the people.

There should be constitutional provision to ensuring the right to survival for population below absolute poverty line through developing an appropriate mechanism to enable them to buy a given amount of food and other consumption items from fair price-shops managed by the government and cooperatives. The primary function of the cooperatives should be linked up particularly with the production activities creating employment opportunities especially at local levels, and this should be made mandatory. It is necessary to explicitly distinguish the sector functions to be undertaken between the government and private sector and also there is need to expedite both vertical and horizontal merging of financial institutions through offering attractive incentives. The defaulters should be given a maximum six-month time to settle the loan above Rs. 10 million borrowed from financial institutions. In case of delinquency the government and NRB should strongly act against the defaulters to expedite repayments through the sale of collateral including from the personal guarantee. There is need to reordering of priorities based on viable economic areas comprising water resources (hydropower), tourism, bio-diversity, human resources (foreign employment and remittances), limited exports (carpet, garments, handicrafts and pashmina), and agriculture with special reference to high value crops.

The government should effectively induct and implement the policy towards economic diplomacy to expedite bilateral trade and investment on the basis of competitive edges and comparative advantages with friendly countries in cooperation with Nepalese diplomatic missions abroad. The economic diplomacy should also be instrumental to mobilize and campaign for desirable level of foreign assistance in priority areas especially in the context of economic growth and poverty alleviation. All state owned enterprises (SOEs) except specified by the government should be privatized within targeted schedule between 3-5 years.

The government shall neither operate trade and commerce nor own factory and industry, for this is the responsibility of private sector, a vehicle for economic development, to undertake business, establish industries and create employment opportunities. The government shall effectively work in tandem with private sector to attract Foreign Direct Investment (FDI) for initiating mega-projects in priority areas by creating investment-friendly environment conditioned to enduring peace and stability in the country. In compatibility with the spirit of liberalization the government should open up access for the outflow of capital and encourage investment across the country to maximize the benefits from globalization especially through promoting joint ventures between Nepalese and foreign commercial banks within and outside Nepal.

A scientific land reforms system should be introduced with a view to increase productivity of agriculture and individuals shall have the right to create wealth but with payment of taxes to government as per the existing regulations. The government must be able to abolish dual ownership on land by offering reasonable package of incentives to absentee landlords if they are willing to relinquish ownership and transfer entitlement to the actual tillers, and the constitutional provision must encompass “food security” as a fundamental right. The private property comprising factory, industry, and bank including education and health organizations should not be nationalized. Industrial relations need to be substantially improved through tripartite agreement among the private sector, trade unions and government. The development plan, annual budget, national policies and programs should be formulated on the presumption of “interdependence” to galvanize the cooperation from neighborhood economies, donor communities and multilateral funding agencies.

The National Planning Commission (NPC) should maintain its separate entity and play the crucial role of a “Think-Tank” at macro-level backed by legal status to implement its decision as mandatory and formulate the periodic plans ensuring appropriate delivery of the results. The NRB and Department of Cooperatives under Ministry of Agriculture and Cooperatives must strengthen their capacity to effectively supervise a large number of financial institutions in the country. The quality of middle-level manpower aspiring for foreign employment should be improved through imparting knowledge of English, Computer and Mathematics further supplemented by vocational and technical training at the initiation of trade schools and in cooperation with private sector.

*Professor Dahal is available for academic and professional deliberations at e-mail: madandahal.prof@gmail.com

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• Posted on - 2012-05-25    by     Dr. Ashok Shumshere JBR
• I Appreciate Prof. Dahal's effort for shedding his views on Republic order in Nepal.In this context, I would like to add some of my ideas. A key factor directly influencing efficiency and integrity of optimum governance, at all level of governance and bodies, is the role played by trade unions which all of us have witnessed during the ensuing period following the Jana Andolan II, therefore delving the administrative policies without relating to the role of current prevailing trade unions become almost futile exercise. This aspect must be addressed appropriately by the new dispensation. I will strongly suggest that Prof. Dahal include his views on this aspects in his article. Secondly I would strongly suggest Prof. Dahal to reconsider his views on the mixed system of governance vis-a-vis president and the prime minister for various practical and functional reasons considering our still infantile social development and values in our contemporary society.

• Posted on - 2012-05-25    by     Dr. Ashok Shumshere JBR
• I Appreciate Prof. Dahal's effort for shedding his views on Republic order in Nepal.In this context, I would like to add some of my ideas. A key factor directly influencing efficiency and integrity of optimum governance, at all level of governance and bodies, is the role played by trade unions which all of us have witnessed during the ensuing period following the Jana Andolan II, therefore delving the administrative policies without relating to the role of current prevailing trade unions become almost futile exercise. This aspect must be addressed appropriately by the new dispensation. I will strongly suggest that Prof. Dahal include his views on this aspects in his article. Secondly I would strongly suggest Prof. Dahal to reconsider his views on the mixed system of governance vis-a-vis president and the prime minister for various practical and functional reasons considering our still infantile social development and values in our contemporary society.

• Posted on - 2012-05-25    by     Bhanu Aryal
• This article is really comprehensive, but I doubt whether our political decision makers are really ready to accept and/or follow your recommendations? Moreover, do they manage time to read such a good article?

• Posted on - 2012-05-24    by     Tej Hari Ghimire
• Dear Prof. Dr. Dahal, This is an interesting and thaughtfull article. I liked all the aspects of your article. The political leaders should go through this article instead of making their indeas based on news reportings briefed by other people early in the morning. In addition, I prefer to have an "Economic Commission" in constitution that decides independently the economic system since economc system evolves in future based on the market dynamics, and political dynamics. The existing planning commission may also function under this contitutional body. It is necessary because political parties are loosing economic agenda in practice. This may make your proposed economic system " Competitive economy with social justice" more stronger buy in by all the provincial government as well.

• Posted on - 2012-05-24    by     Dr. R K Shah/ Research Scholar Ramesh Khadka
• The article named Critical Allusions to Foster Republic Order in Nepal written by Prof. Dr. Madan Kumar Dahal is a mixed approach of governance system and election procedure for Republic Nepal and sound and prosperous economy of the country. This period is transitional period for Nepal because the New Constitution is going to be made by the CA (Constitutional Assembly) up to May 27, 2012. The President would be elected directly more than fifty percent of the total voters of the country. The President shall appoint the Prime Minister and other Cabinet Ministers to run the day to day administration, maintain law and order and sustain peace and stability. Those people who convicted by the court on the charge of corruption, rape, murder, loot, robbery, damage of national property and terrorism, etc. are deprived to fight the election of Parliament Members. Federal provinces should be created on the ground of economic potentiality and recognition of the people of that province. How many federal provinces should be made, it depends upon the financial capacity, natural resources, fertile land, hydropower and human resources, other probable potentialities, etc. It will make the federal provinces strong and powerful. This article also addresses the defense force for making the strong security for welfare of the Nationals. The Supreme Court will be the apex court in the country with the establishment of Federal Courts at the provincial level. Meritocracy, resource allocation to local bodies and good governance are key topics of this article which are suggested by Prof. Dahal. It also clarifies the citizenship process of Nepalese citizens and also foreign women married with a Nepali. The vision or mission of Nepalese economic should be built a strong economic nation state. It also describes about reservations to women, Janjati, Madeshi, Indigenous and backward communities, Dalit and Muslim minorities, etc. A scientific land reforms system should be introduced with a view to increase the production and the productivity of the agriculture. Prof. Dahal also suggests that NPC should maintain the separate entity and play the crucial role as a Think Tank at macro level for the beneficiaries of the country. Foreign employment should be improved through imparting knowledge of English, computer and mathematics further supplemented by vocational and technical trainings to make skilled manpower. We conclude that this article is time-relevance, the milestone and the future roadmap for the country in this transitional phase of Nepal.

• Posted on - 2012-05-23    by     Yagya banjade
• there are many fact-based matters in the article of Prof. Dahal. I found that the article is very broad and comprehensive . It covers various issues that needed to be considered seriously while the restructuring of states in Nepal.

• Posted on - 2012-05-22    by     ramkumardahal
• Prof.Madan Dahal,one of the leading economists of the day and one of the noted writers on economic issues including economic nationalism, in the current article has brought a unique model ofederalization and state restreucturing in Nepal highlighting on important political, economic, social, financial system, poverty reduction issue that play constructive make t role in making Nepal prosperous.The issues which he has raised needs special attention by the members of the constituent Assembly before th making of the constititon so that no serios mistakes could be commited.He has raised the issue of the Restructuring the Nepalese state in a practical manner by advocating the model of maximum seven. the number of provincesand making north south axis of provinces .His views may not satisfy the agitating groups of NepaL .bUT HIS VIEWS are based on the concept of Economic viability of the provinces or the federal units or the economic development of a nation. He has propounded the concept of mixed French model in which the executive powers would be shared by both the directly elected president and the prime minbister, who is accountable to the legislature. The President would be given the constitutional power to dismiss the Prime-Minister including his/her cabinet on the proven ground of inefficiency, corruption and poor governance. His intention in propounding this system to maintain political stability in Nepal that is essential for the develpoment of the nation. Regarding the Prime-Minister and other cabinet ministers( not exceed 10 percent of the total representatives in the lower house of the parliament), he views that they would be appointed both from within and outside the members of parliament with specific assignments focusing on to run the day-to-day administration, maintain law and order, sustain peace and stability, and spur development activities. He has advocated bicameral legislature of 300 members comprising 75 percent from elected representatives in the lower house (225), the candidate-population ratio being 1:133,333, and 25 percent to be nominated for upper house (75) on the strength of the ratio of the votes secured by the respective parties during the election especially to accommodate inclusiveness comprising women, janjati, adibashi, dalit, backward communities, and minorities s uch as Muslims, differently able persons, and government nominees especially from academic and professional groups. These provisions a, no doubt, ptomote the concept of inclusive democracy in the present changed political context.He has also set certain code of conduct for the political parties to reduce the current anomalies of the present party system.Under his new scheme,the parties will not be allowed to campaign with provocative manifesto spreading hatred against particular caste, creed, sex, community, language and religion during the election. They have also to present/submit the details of all expenses in election within given timeframe. One new view which Prof,Dahal has advocated, is the Swiss model of recalll system for the elected representatives, which is an effective means in making the elected representatives accontable to the voters. In order to correct the present political anomalies, he is also of the iopinion of debarring any candidate contesting in all elections in his life.This intends to give opportunity to new youth candidates to play effective role in politics. The provision of five percent votes for the national parties, provision for debarring any candidate from contesting election at any level for life time, state-funding to parties contesting electoion to promote free and fair election,provision of constitutionally empowering democratic institutions, opposing the castes and ethnicity based federalism, protecting the fundamental rights of the citizens as in founfd in the modern democratic state, strengthening fiscal federalism and local bodies in federal Nepal, the system of revenue sharing among the Center, provincial governments and local bodies,Division of Powers between the centre and federal units,keeping the national army under central government are some of other srtrong points..

• Posted on - 2012-05-21    by     Y B Thapa
• Let me anchor to a theme of ‘Republic Nepal – from cross-road to by-pass’ while responding to the Prof Dr Dahal’s article on ‘republic order’. 1) Let us with our political leaders bear in mind the V I Lenin created the ‘Soviet Union’ as confederation of republics. Likewise, recall that the ‘Union of India” was created by accession of states to it, not by division of geography, and that the successful nations and states are based on the boundaries of river basins. But out act of ‘ethno/ caste based division of Nepal would lead to dissolution of country itself. 2) What we need are just three states/ provinces, namely, the Koshi Basin ( from Taplejung to Parsa), Gandaki Basin (from Chitwan to Mustange), and Karnali Basisn (from Rukum to Kailali): the divisions like Bhojpura, Mangrat etc can be organized as autonomous councils as in case of Gorkha Hill Council in India. 3) As these Constituent Assembly has outlived its life and without a performance, the President should: i) dissolve the CA, 2) call for re-election, 3) run the country with a government comprising professionals experts, and 4) impose emergency if necessary. I think the above suffice for what is needed for this week. Y B Thapa yb_thapa@ntc.net.np

• Posted on - 2012-05-20    by     Ramesh Ghimire
• I have gone through the recent article of Prof. Dahal and found that the article is very broad and comprehensive and covers various issues that need to be considered seriously while restructuring Nepal. I do salute the opinion of Prof. Dahal regarding number of provinces and ground for creating federal provinces. Of course, federal provinces should be created on the basis of economic potential rather than ethnicity and number of provinces should not be greater than seven. Increasing number of provinces substantially increases administrative expenditure that the nation cannot bear and ultimately impede the process of economic transformation. I absolutely agree with Prof. Dahal regarding induction of meritocracy in all spheres and activities of the statecraft. I want to add a point that quality of Nepalese education is far below average in the south Asian region. There should be a clear vision on how to improve quality of education and mobilize human resources in New Nepal.

• Posted on - 2012-05-15    by     balaram paudel
• Comments Prof. M. K. Dahal , a well known economist ,scholar ,and Chairman Mega Bank, Nepal ltd, has been regularly expressing his views and ideas on the unsettled contentious economic and political issues from which Nepal has been suffering for long . ‘Republic Order in Nepal’ is the latest version of his creative writing. The article has come up with some of the critical issues, which, I feel, needs to go through by the decision makers and these issues must be incorporated in new constitution and make sure them to put into practice for the improvement of worsening economic, social and political life of Nepal. Of the several equally impotent issues, concerned by the article I opt for the following. a. Meritocracy: It is the true spirit of democracy and the best way that can put right man in the right place and only through meritocracy one can expect positive result. b. Restructuring the state: Economic viability must be considered while making provinces and the number of provinces should not exceed 7 and make north south axis of provinces. It is because the ultimate goal of politics and political parties must be economic development of a country and the ultimate goal of economic development of a country must be human development. C. Judicial supremacy: A sound judicial system with no constitutional court d. Governing System: Bicameral parliament not exceeding 300 seats (225 seats for lower house and 75 for upper house) .The total number of ministers should not exceed 10 percent of the total representatives in the lower house of the parliament. However, I am unable to understand the complicated mixed model of directly elected powerful president and a prime minister appointed by the president to run day to day business. Is there no scope for the improved version of previously experienced parliamentary system? Finally, I appreciate the article and congratulate prof. Dhal for his significant contribution as he inspires all of us to build a strong economic nation-state through active participation of the people. Balaram paudel ,Biratnagar

• Posted on - 2012-05-15    by     Dwarika N. Dhungel
• Dear Dr. Dahal: In the article, you have touched everything. The article looks comprehensive. So I do not know how should I comment on your paper. The only thing I can write is that what you have written, if taken seriously by the political decision makers, that would contribute to-wards the establishment of a better Nepal. I only wish for that. Continue to contribute such article, all the best.

• Posted on - 2012-05-15    by     Dr. Purushottam Shrestha
• I found this article very wide and comprehensive. The author has put best effort to address several important aspects political, economic, social, financial system, poverty reduction etc. specifically for the benefit of the people and make the prosperous Nepal. Recipes recommended in this article are very contextual and pragmatic. It must have opened the eyes of honourable political leaders and provided insights to incorporate in promulgation of favourable constitution for Nepalese people. I would like to extend hearty congratulations to the author for sharing his precious thoughts with general public. In the article following recommendations among others were found very commendable. 1. The joint strength of the parliament should include government nominees especially from academic and professional groups. 2. The tickets to contest general election for parliament to any candidate should be given by the party high command upon competing primary election among the candidates from within the party. 3. A maximum seven (7) federal provinces should be created on the ground of economic potential having North-South axis adjacent to China in the north and India in the south to judiciously distribute the economic resources among the people in mountain, hills, and terai (the plain area in the south). 4. The proposal for creating federal state on the basis of castes and ethnicity is not justified and absolutely unwarranted. 5. The political parties at the national level totally failed to induce regional parties in good faith that terai is bestowed with relatively better infrastructures comprising road, electricity, water, communications, irrigation facilities including setting-up of special economic zones, industrial corridor and open access to India for marketing and enjoy other facilities as compared to mountain and the hills.(This sort of statement as fact has never come before). 6. Unpredictable and yet unwarranted action of a few fanatics at the beck and call of trivial leaders completely minimized the significance and historic glory of unification of the country and questioned the very existence of Nepal as a nationhood. 7. It is extremely essential to induct meritocracy in all spheres and activities of the statecraft to avoid too much politicization characterized by compulsory installment-payments to respective parties in every appointment leading to extreme inefficiency and corruption resulting in socio-economic backwardness in Nepal. 8. The government should set-up a High-Level Commission to devise an appropriate reservation policy with a view to ensuring inclusiveness and strengthening capacity of women, janjati, indigenous and backward communities, dalit, and Muslim minorities including the differently able persons for enabling them to competitively participate in the activities at the national level. 9. There should be constitutional provision to ensuring the right to survival for population below absolute poverty line through developing an appropriate mechanism to enable them to buy a given amount of food and other consumption items from fair price-shops managed by the government and cooperatives. Suggestion : With regard to poverty reduction Microfinance Institutions (Microfinance Development Banks, FINGOs, NGOs, Cooperatives etc.) have been playing a vital role by providing door to door service to the poor and disadvantaged people. Internationally the microfinance has been recognized as a proven mechanism to help reduce poverty. If they are supported by the Government and Nepal Rastra Bank and provide conducive working environment these MFIs could contribute to a greater extent. Support services include social mobilization, area expansion, capacity development, insurance, availability of soft loan, tax reduction, regulation and reformative monitoring and supervision. The Author is humbly requested to reflect in this regards too in his recipe and recommendations.

• Posted on - 2012-05-14    by     Swapan K, Dev
• The Prime-Minister and political leaders will have wisdom and courage to subscribe the ideas propagated by Prof.Dahal and also implement his views successfully to make Nepal a prosperous country.

• Posted on - 2012-05-09    by     Niranjan Tibrewala
• Thanks for the brief outline of the structure of the system for the governing of the Nation. few points which I request prof Dahal to highlight in my opinion are as: 1. Qualification of each candidate whether it is for President or PM or Ministers or Members of the House be well defined in respect of education, involvement in the politics, social work and a certificate of good character is most. 2. After nomination of the candidates, a public hearing be offered with a short span of time in order to judge that the candidate is free from all anti social activities and is of good character. Candidacy for the election should be final only after passing through successfully under this process. 3. Appointment of Chief Judge and other judges of the Supreme Court, All the members of Commission for Investigation of Abuse of Authorities (CIAA), Election Commission (EC), Office of the Auditor General (OAG), Public Service Commission (PSC), and Office of the Attorney General , and National Planning commission and the members of the Autonomous Central revenue Board , Chief of the Army , Police and the Ambassadors should be done by the President based on the criteria set. 4. Provision for A fully autonomous Central Revenue Commission/or Board be made with full responsibility to devise the revenue policy and its implementation. Allocation of such revenue collection should be earmarked for General Expenses and Development expenses clearly. 5. Prof.Dahal has also suggested mandatory for declaration of the wealth of some defined personalities. But I am in the opinion that person having wealth valuing above 10 million at a stipulated date need to be done by every citizen. Management of this need to be done by the Central Revenue Board 6. Provision for dual citizenship for those Nepalese having foreign citizenship be also made and accordingly any Nepalese of foreign origin be allowed to take his dual citizenship whom he belongs by heridatery. I would like to thank Prof Dahal for the brief highlights provided to help guide for the formulation of the constitution.

• Posted on - 2012-05-09    by     Prof.Mohan Lohani
• I have read with great interest Prof.Madan Dahal's article in which he spells out his views on the salient features and functions that the Federal Democratic Republic of Nepal should have under a new constitution that will be hopefully adopted by the Constituent assembly on May 27 this year.Prof.Dahal has come out strongly in favor of the Presidential System on which consensus has not yet emerged.He has put forward some convincing arguments why this system is suitable for this country.I hope the major parties and their leaders will give serious consideration to his proposal.I wonder how Prof.Dahal views the issue of checks and balances if all executive powers are vested in the President.Take the case of Sri Lanka .There is growing criticism from the leading constitutional experts of that country accusing the President of usurping all the powers and virtually imposing a dictatorial or authoritarian rule on the country. Prof Dahal's advocacy of a 7-state federal model sounds reasonable.But I doubt whether his north-south axis will be acceptable to Madhesi community who continue to say that their bottom line is One Madhesh One Province. Prof.Dahal also touches in his article on many pertinet issues such as the percentage of representation,good governance,citizenship,meritocracy and, above all, the economic system in which he strongly pleads for people's participation so that the fruits of development could percolate down to the common people at the grassroots level.There is hardly any dispute over the need to adopt an export-led economic policy within the framework of PPP(Public-Private Sector Partnership) I commend this article to all readers who are concerned about how the new republic of Nepal should function and evolve after the adoption of a new constitution.