Nepal: International Relations and Economic Diplomacy-Part 1

Experts from Nepal Council of World Affairs (NCWA)

Introduction:
The International Relations and Economic Diplomacy thematic committee members are of the view that international relations and economic diplomacy should be dealt with separately since they have been lumped together under the same theme, it was decided that it is necessary to establish the linkage between the two while preparing the final report on the committee’s work. Nepal has experienced significant changes in its recent history. As part of this change in history, guided by the directive Principles of the new constitution “Nepal will follow an independent foreign policy, in accordance with the principles of the UN Charter, Non-Alignment, Panchasheel, International Law and values of world peace.” There are also far reaching developments in Nepal’s neighborhood and around the world. Consequently, the central Himalayas, South Asia and Nepal are emerging as one of the epicenters of the current regional transformations and global paradigm flux. At this time of Triumph and Trauma of Transition, the biggest test of Nepali scholarship, leadership and diplomacy is to comprehend the highly meaningful but relatively less painful change in our history and manage this internal political transition and external relations in a way that they strengthen our overall national interest. This is the essence of our knowledge and understanding of contemporary international relations (IR), Real change of Foreign Policy (FP) making and test of skill in the conduct of diplomacy.

Objective:

The cardinal objective of a country’s foreign policy is the protection and preservation of its sovereignty, independence and territorial integrity. The foundation of Nepal’s foreign policy is based on friendship with all and enmity towards none. The basic parameters of the country’s foreign policy, such as faith in the UN Charter, principles of nonalignment, Panchasheel or the five principles of peaceful coexistence, respect for international law and commitment to world peace are well defined in all constitutions, including the latest one of September 20, 2015. While priority is given to strengthening relations with our immediate neighbors, both developed and developing. Our priorities include greater visibility in the UN and other multilateral fora and institutions like World Bank IMF, WTO, AIIB SAARC, and BIMSTEC. Nepal should manage its external relations in such a way that it should strengthen and promote overall national interest of the country.

There is a paradigm shift in international relations following the end of the Cold War in the late eighties of the last century. Economic diplomacy was emphasized as a new dimension of Nepal’s foreign policy. Its objective is to influence the host country’s policies by the projection of home country’s economic interest.

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Globalization has increasingly made economic diplomacy a significant factor in foreign policy. The Ministry of Foreign Affairs (MOFA) is called upon to play the lead role and effectively coordinate with other line ministries and private sector in formulating economic development strategies and prioritizing them. What is important is the need for MOFA to enhance professionalism and capacity of its staff, improve communication with the missions aboard, and address all matters related to foreign relations including economic diplomacy. The missions’ activities should be carefully monitored by MOFA which, in its turn, is expected to facilitate the missions in achieving their targets and goals.

Much depends on the country’s political leadership which is able to identify key issues of national interest and come to a consensus on defending them. Implementing policies arrived at through consensus and protecting and promoting vital national interests call for appointment of a team of committed and capable professionals.

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Far reaching changes and developments are taking place in Nepal’s neighborhood and around the world. Given this reality, Nepal should be able to utilize its foreign policy for effective internal transition management by taking the current political process to its meaningful conclusion and lining change to promoting prosperity of the people.

Importance of Foreign Policy:

Foreign policy has always been a vital tool of Nepal’s statecraft, test of statesmanship. The nature of internal and external changes in this crucial time and location makes foreign policy based on correct understanding of global developments even more important and diplomacy challenging. Dealing with simultaneously cooperating and competing regional-global super-powers embroiled in their own internal upheavals in a changing global political and economic order and strategic equation demands the ability to interpret available information with knowledge, understanding and experience. Old problems and new complexities seen through the eyes of outdated doctrines or vested interests distort comprehension. Policies and actions motivated by them lead to disastrous consequences.

# Location and good relations with both neighbors provide unlimited potential for aid, trade, tourism, investment, technology, and employment but they also increase the challenge of managing the consequences of competing interests and cooperating actions.

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# Post-1990 Nepal could neither forge consensus on national interest nor produce (groom) individuals of high caliber in foreign policy with whom our regional in international partners felt they could talk in confidence. This situation has worsened under the pressures of China’s BRI and America’s Indo-Pacific Strategy.

# Internal bickering and external meddling undermine national interest, undercut rather than support and promote people with potential.

# As a result not only did the post-1990 order crumble “monarchic Nepal” collapsed. Republican Nepal faces equally if not more serious challenges.

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# First and foremost, all depends on our ability to put our own house in order, implement the new constitutions, completing the remaining tasks of the peace process and take the transition to a meaningful conclusion. Utilizing FP for effective internal transition management, taking the current political process to its meaningful conclusion and linking change to prosperity of the people are the foremost tasks of our diplomacy at this stage of political transition.

# A national philosophy of traditionally diverse but rich civilization and culture binding people of different ethnicity faith, language and region together should be the basis of strengthening internal unity and stability and guiding principle of Nepal’s collective external image and identity a tolerant, democratic, peace loving society and always an independent country.

# Firm commitment and concrete action of not playing any “card” or allowing our territory to be used against the core interests of our two neighbors are the essential first steps for transforming relations based on trust and confidence.

#vain name-calling and finger pointing only raise risks of more external involvement in internal power contests increasing our vulnerabilities.

# Consensus among key political actors on major issues of national interest and bility of persuasion can strengthen our search for non-reciprocity due to the asymmetry of size and capability from our two neighbors.

To quote Dr. Shambhu Ram Simkhada an eminent foreign relations expert, “Nepal today stands at the most critical threshold of history and geography with tremendous opportunities but also seems risks to translate risks into opportunities. What Nepal needs is political leadership of wisdom, and courage assisted by strong institutions managed by a competent and committed Foreign Policy team. Correct FP formulation and effective conduct of diplomacy will depend on many things; most of all political leadership’s ability to identify key issues of national interest and come to a consensus on defending them.”

Need for National Consensus:

In a multi party democracy political parties naturally compete for power. But if the domestic competition for power impinges on foreign and national security policies it will adversely affect national interest. When political party’s leaders are divided on many aspects of national importance and international affairs, to minimize risks, optimize opportunities national consensus on foreign and national security policies acquires particular urgency. Relationship of Trust and Confidence with the two immediate neighbors is the most important aspect of that agenda.

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Pro-active FP based on the principle of Amity with All Enmity with None, Development Diplomacy, employment opportunities for the growing numbers of educated youths, strengthening the institutions related with the understanding of IR, Formulations of FP and selection of competent professionals and committed individuals for the effective conduct of our diplomacy are some of the other issues that remain valid now.
There can be multiple tools and approaches in analyzing FP. Using the analytical tool of the 3 is Nepal’s FP can be discussed at three levels, identifying the main issues of our national interest, strengthening the institutions responsible in the various aspects of FP and finally training, grooming and deploying the right individuals for its execution, the actual conduct of diplomacy. Identifying key foreign policy issues and building consensus among the main political actors that despite ideological differences or competition from power at home, they will not compromise on national interests or use foreign policy for domestic political ends or partisan, regional, communal or individual gain is the most important priority of this discourse. Strengthening institutions related with FP and identifications, grooming and placement of right individuals to implement policies and promote national interests are the other main objectives of this agenda.

End text.

Text courtesy: “Nepal: Standing up to Domestic and Foreign Challenges:- a booklet published and authored by the Nepal Council of World Affairs ( NCWA).
Book courtesy: Vice President, NCWA, Buddhi Narayan Shrestha.
# Salute to the entire executive team of the NCWA and the authors engaged in preparing the article: Ed. Upadhyaya.