Editorial

Effective Economic Diplomacy

Ultra nationalism is the biggest enemy of economic diplomacy in today's world. This is the age of economic diplomacy. Recent world history is a testimony to the fact that the countries which have fared well in economic diplomacy have progressed and those which are lagging behind. It would not be otherwise to say that Nepal is one among the latter. At best, all our diplomatic efforts so far have been limited to seeking foreign grants and loans, and at worst, saving the government of the day. All that almost all Rana rulers, for example, did in the name of diplomacy was pandering to the taste of the then British rulers in neghbouring India, to secure the oligarchy in Nepal. Economic diplomacy was almost non-existent for them, except, of course, when they bargained with the British authorities for every single Nepali they sent to join the Gurkha Regiment. But that was an act of trading lives for petty commissions, not what we could call economic diplomacy in the modern sense of the word.

The Ranas were overthrown and Nepal started to open up, gradually, to the rest of the world. A few years were spent in the political transition. Then came the Panchayat. Nepal did establish diplomatic ties with a number of countries during the three decades of Panchayat. But these diplomatic efforts were, it seems, focused more on sustaining the party-less system rather than enhancing Nepal's international trade and commerce. Sadly, economic diplomacy could not become a priority even after democracy dawned in the country in 1990. The twodecade period post 1990 is a testimony to that. True, the flow of foreign assistance to Nepal- both grants and loans – has seen an unprecedented rise over this period. But economic diplomacy is not just about securing foreign assistance. It's more about promoting the country's international trade (read exports). It's more about attracting Foreign Direct Investment (FDI) for a rapid industrialisation of the country. But it seems the Nepali negotiators ignore these basics when they are faced with their counterparts from the neighbouring countries or elsewhere.

Let's forget what happened in the past - let bygones be bygones, as they say. Let's make a fresh start, without wasting any more time. But for a fresh start, those already in the government and those aspiring to replace or join it must stop looking up to the regional or global powers for a mere political "favour". This submissive attitude is the biggest handicap at the negotiating table for it takes away the confidence of the negotiator to negotiate. Doing away with this attitude will also enable our negotiators to take a firm stand on issues of national interests. However, what all of us need to understand is "ultra nationalism" is the biggest enemy of economic diplomacy in today's world. Flexibility to the extent possible is the key here. The next step is to spread the message across the globe that Nepal is about to achieve peace and political stability, and is therefore, safe for investment and doing business. In all their engagements and meetings with international delegations, Nepal's government, political parties and diplomatic missions abroad must convey this message convincingly. They should also get rid of the attitude that promoting business and commerce is the job of only the private sector. Every government delegation going abroad for trade and commerce talks must include private sector representatives who could explain their foreign counterparts both the existing and evolving business and investment opportunities in Nepal. Most importantly, there must be political stability and business security in Nepal for the efforts of economic diplomacy to be successful.