What can society and government do to create jobs?

There are various reasons for non-employment in Nepal. Not only in Nepal, the private sector in the world is profitable. But making profit in Nepal is viewed from a negative perspective. We do business for profit. We want to earn profit by doing business within the laws and dignity of the country. When profits are made, jobs are created. After making profit we can pay taxes to the government. Value addition takes place in the country.

Therefore, the society and the government should appreciate and assimilate the profit made by law. Because profit is a good word, society and government should accept it. Ironically, in Nepal, a commentary has been created that profit is bad. Employment cannot be created just by the desire of an individual. Business sense is also required. If one wants to run an industry/business to create jobs, serve the country, pay more taxes or fulfill social responsibility, it is not sustainable. Only politicians think like this. If you are not making profit, you cannot fulfill your social responsibility and pay taxes. So it is necessary to earn profit to do all these things. Even if we create jobs and serve the country without profit, it is not possible.

The contribution of industries to the gross domestic product has decreased from 14 percent to 6/7 percent. Even if the concept of job creation is introduced without knowing its cause and solving it, it cannot be successful. How to make the private sector profitable, how to attract, policy should be made to give maximum return on investment. Only if we can make such kind of policy, we can move the country's economy towards industry. If we can attract the industry, the attractiveness of investors will increase, accordingly, investment and employment will be created. We can fulfill the responsibility including social responsibility.

s are inherent problems of landlocked nations. However, there are many examples of other landlocked countries in the world. It is important to identify every problem and find its solution. Every entrepreneur thinks about all aspects (360 degree) to run an industry, I think too. At first, we see whether the raw materials required for the industry are available in the country. But we are forced to import most of the raw materials from foreign countries. We have a high cost economy. We have more cost factors than other countries.

There is no two-tier customs support on import of basic raw materials. Somewhere there is one level and somewhere there is zero. There should be two levels of customs protection for the indigenous industry. There are many industries that can ensure this. Making the import of finished goods more expensive and making the import of raw materials cheaper. Somewhere the duty on prepared goods is low.

Most of the raw materials have to be imported. So we can reach the international market by how to bring it cheaply. Transportation is the main major cost factor for Nepal. When I was the president, we worked to bring Indian trains to Nepal's dry port at the initiative of the Federation of Nepalese Industries and Commerce. It reduced the cost of transportation by 70 percent. Such costs need to be further reduced. Transportation efficiency is very high in China. India is not enough. Our cost per tonne per kilometer is much higher. There is a lot of room for cost reduction. We should try to reduce the transportation cost of raw materials, logistics cost and time.

Mainly, land is needed for industry. Along with the acquisition of land, environmental assessment and other processes begin. Physical infrastructure, roads, electricity are the basic needs of the industry. In other countries, the industry that creates a large amount of employment is created by the government itself. In Nepal, we are only limited to things. There is a need to build the necessary road for the industry. Electricity connection is another problem. If we can subsidize land and necessary structures for industry, the cost will further decrease. Since business costs are high in Nepal, it is important to focus on reducing them. Various concepts including industrial areas have come up for land acquisition. But the infrastructure of the industrial sector is still weak. There are many legal problems. There are also legal problems in the industrial sector, including the obligation to export to operate the industry. If an industrialist wants to start an industry by buying land, the government should invest in infrastructure. It is important to pay attention to it.

If we set up an industry, local problems also come along with the operation of the industry. Local problems are occurring due to a negative view of making profit in Nepal. A small accident on the road affects the activity of the entire industry. This area has always been kept in a high cost regime due to increased noise due to industries, factories. It is a big challenge to keep the industry. Easy acquisition of land, even if local problems are solved, it takes a lot of time to get 'environment clearance'. The slowness of the government creates another problem. What to do with the land if there is no clearance? That the land had to be bought after getting the clearance. However, that is not the case. Industrialists are discouraged when it takes a long time to get clearance. Because time is money for industrialists and businessmen. The government charges zero percent rate or minimum duty on import of industrial machines. Bank interest is the biggest problem in bringing industrial machinery. 60 to 70 percent financing should be done from the bank. The bank's policy is relaxed for business and short-term loans. Because the NPA rate is low. Risks are higher in large industries. Bank interest rates are also high. High interest rates are another reason why costs are high.

After solving the government's policy and local problems, the industry starts production. But the cost of the industry is not enough. We need to look at it comparatively. Our electricity could be the biggest competitive advantage. If we can give Nepali industry the same price at which we are selling electricity to India, it can become a big competitive advantage. Because the money coming to Nepal Electricity Authority is the same. Irony is not our mindset. Although we are ready to sell electricity to India cheaply, we do not want to give it to the indigenous industry. This is the subject of another challenge. The authority is a government organization created to serve the industry and consumers. Electricity must be given to the industrial sector at a concessional rate.

It is also necessary to amend labor laws. In other countries, the minimum wage is set according to the region. In India, the minimum wage is high because of the high risk of mining workers. Workers in industries located in rural areas are paid accordingly. The salaries of industrial workers placed in urban areas are different. For example, if a worker living in Kathmandu is given a salary of 20,000, it will be difficult for that worker to survive. If the same salary is given to the workers living in Humla, it will be abundant. If the same minimum wage were to be applied across the country, it became unproductive. There was no justice. According to the report of the International Labor Organization, Nepal's productivity is the lowest in South Asia. Nepali workers are in high demand abroad. The productivity of those countries where Nepalis are working is higher. However, they do not want to work in Nepalese country. There are various reasons for not wanting to work in Nepal. Among them are labor dignity, inadequate labor laws and poor working environment. The main issue is our low productivity. How can it be increased? It is important to pay special attention to it.

Another factor driving up costs is taxes. After the country has gone to federalism, there are local, state and federal taxes. Which is still not clear. After going to federalism, we were divided into state and local levels. But the provincial and local levels have not been able to provide the incentives and services to the industry. There is a competition between the neighboring states of India to introduce industries within their states. For example: Gujarat declares to give free land or no local tax if industries are brought to it. They come up with various schemes to attract industrialists. After the production started in the industry, the local problems as well as various tax problems were solved.

Now let's look at the state of the country's infrastructure. It costs more to bring from Kolkata to Bhairahawa than from Bhairahawa to Kathmandu. The highway is dead. Transportation costs are increasing. There is also a 'cartel' in Nepal's transport sector. So the cost of transportation is increasing tremendously. In particular, transportation costs across the country should be competitive.

Businesses reduce transportation costs. The cost is reduced because it goes directly to Kathmandu or the main market. Raw materials have to be brought to the industry from different places. Again it is produced and delivered to various markets. Hence, the transport cost becomes expensive for the industrialists. There are many disadvantages for industry in transportation. Whether you produce cement, steel or other goods, all the government agencies monitor everything from quality. However, if you do import business, no one monitors the imported goods. The disadvantages seem to be all stacked up for the industry. After completing all the processes, we produce and send quality products to the market. However, while promoting the industry, we cannot force the consumers to use it because it is made in Nepal. So it should be offered at a competitive price in the market otherwise no one will buy it. Make in Nepal, Made in Nepal is only emotional. We should be able to send goods to the market at a competitive price by overcoming local and legal problems.

Industrialists are lending goods to the market. Now unsecured loans are increasing in the market. It's starting to look awful. It needs to be resolved. A lot of investment has already been made by the founder of the industry. Even if the goods are sent to the market, the money is not collected. We do not have enough laws to collect such money. Industrialists are forced to face various problems. Apart from these there are many other cost factors. The World Bank report has pointed out that the cost of doing business in Nepal is high. Reducing that cost requires policy reforms. Nepal is affiliated to the World Trade Organization. We have seen a lot of the situation outside, now it is necessary to look inside the country. We hesitate to sign agreements with foreign countries. However, we have not even thought about the long-term impact of those agreements on the country's industry. Now, when making policy, two levels of customs support should be given to the domestic industry.

It is necessary to work on a war footing especially for the improvement of the infrastructure sector. In the highway, dryport area, the infrastructure should be worked on in the same way as during the war. The condition of highways like Butwal-Narayanghat, Pokhara-Muglin is pathetic. The cost is also increasing due to the bad condition of the highway. Highways are the lifeline of our country. The Labor Act also needs to be reformed. Productivity-based labor laws, laws should be made. If there is no productivity, employment cannot be maintained, hence the need for legislation to eliminate it. Without productivity, industry cannot reduce production costs. We must identify a competitive advantage. Bhutan has provided electricity to its industries at half the price of exports. 'Offsets' to reduce other costs. The competitive advantages of the industry must be built. The various 14 laws that have been in force since the Rana period must be revised in time. Investment friendly laws should come. We are bringing consumer friendly laws. In fact the consumer should not be cheated and the industry should not be allowed to die. Both of these should be balanced. If the product is of poor quality, the industrialist should not only be fined, but also go to jail. I am in Kathmandu but the factory is in Nepalgunj. If the workers there do something wrong, I have to go to jail, so there has to be a balance.

Industrialists and profiteers are the backbone of the country. So we have to change our mentality. Entrepreneurs are what make this country. A country is built only after encouraging entrepreneurs. It is the responsibility of the government to provide facilities to entrepreneurs by making concessions and decent laws. Many times entrepreneurs/businessmen are discouraged due to the negative view of profit. There is a situation where the minister also has to earn a foothold to decide on the case of industrialists. Because industrialists make profits, I think my political future is over. This country will not be built unless there is positive self-interest.

Investments in the country will not increase unless industrialists and entrepreneurs are encouraged. New industries will not come when investment does not increase. Employment cannot be created if the industry is not operational. The government must create an enabling environment for the industry. Businessmen should be able to earn profit decently within the laws of the country.

– Golcha is the former president of the Federation of Nepal Chamber of Commerce and Industry.

(राजनीति मात्र होइन, उद्योग, व्यवसाय, कृषि, शिक्षा, स्वास्थ्य, पर्यटन, बैंकिङ, सिनेमा, साहित्य सर्वत्र अहिले निराशा छ । देशले यो निराशाको भारी लामो समय बोक्न सक्दैन । सजीव विश्वास प्रवर्द्धन गर्न कान्तिपुरले सुरु गरेको छ विचार शृंखला– 'Export When Various Experts will be written by different experts, constantly preposition, constantly.)