Posted by: maximum20 September 24, 2004
Fighting Globalization in Nepal?
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JagaltayBhoot, thank you. karmapa, your reply is funny and thought-provoking at the same time. the good news is that the parts that made me laugh are different than the parts that made me think. First off, I do know that "FREE" does not mean we are going to be flooded with free money. Free trade, as i understand, -and please anyone correct me if i am mistaken- means trade between countries without any or much restriction from the government. That is my concern. The weak Nepali industries will not receive protection from the government and will have to compete with multinational brands in a FREE market. "republican", I agree that it seems not a lot of homework was done prior to the signing. And you are right that the country can go in either directions. but although that thought seems to relax you, this uncertainty is what i think should be our major concern. We seem to lack watchdogs that will step in and ask the government to take action when they see that the country is headed toward more economic trouble. A lot of cheap chinese goods are entering the market but the seller is not a single corporation. No one person (or two) is making all the profit. yes, our imports have gone up but it's mainly nepalis who are engaged in importing, transporting and selling these items thus a decent part of the money is staying in the country. I think you would agree how the case would be different if a multinational company were to take over the market and channel all profits to lands far away to a few old folks who think Nepal is probably in Italy or Africa. Yes poor countries do not have much bargaining power before or after the treaty is singed. But what is noteworthy is that the power of bargaining power is higher after signing in. in a closed or quasi-closed market, the government might have little bargaining power but it still has the authority to control it's internal market and protect small local businesses and provide for its citizens by making the pursuit for profits secondary. any comments, criticisms are welcome. After all, like i said, i am no economist. I'm just a concerned citizen of Nepal.
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