Nepal: International Relations and Economic Diplomacy-Part 2

-Nepal Council of World Affairs (NCWA)

Developing Trust and confidence with India and China:

# Change the traditional “Yam between two boulders” notion and land-locked location to a vibrant bridge or land link.

# Proximity adds vitality but also complexity and sensitivity in inter-state relations demanding high priority and careful handling, making the management of relations with the two immediate neighbors the most important priority and challenge of Nepal’s IR, FP and diplomacy.

# Changing global/regional political, economic, security needs and new challenges added by the dynamics of time and technology greater movements of people, goods and ideas across borders, threats posed by increasingly more powerful non-state actors, terrorism, counterfeit goods and currencies human trafficking and the looming climate crisis etc have made things more complicated.

# Consensus among key political actors on major issues of national interest and ability of persuasion can strengthen our search for non-reciprocity due to asymmetry of size and capability (S&D principle) from our two neighbors.

#Understanding and managing well Nepal-India relations is magical. New model of 21st century inter-state relations with mega models of mutual cooperation and benefit, between politically independent as well as interdependent neighbors is to be designed.

# A commitment at the highest political level that both sides will not adopt policies of hurting the other and stop any such moves and action against anyone involved must be the foundation of relations of trust and confidence.

#Amity with all enmity with none must be the foundation of our FP. Strengthening relations with the US, depending traditional friendship with UK, European Union, Russia, Japan, Germany, France, Switzerland, Nordic countries are other priorities of proactive regional and international role.

# Greater visibility in the UN and other multilateral fora, exploring possibilities for the rotating membership of the security Council and Presidency of the UN GA and enhanced role in UN peacekeeping, increased numbers, senior positions in the headquarter and field and active role in other multilateral institutions are other important priorities of Nepal’s new focus on multilateral diplomacy.

# FP is the “applications of national power for the protection and promotion of national interest”. In the past Nepal’s asymmetric national power with its two neighbors has been put through some serious stress tests and has endured. Power being dynamic and relative, what is the state of Nepal’s national power today? Serious reflection on strengthening the Nepal Army with ultimate responsibility of protecting the sovereignty and territorial integrity of the national by the constitution and the National Security Policy should be an important part of FP review and defense- security diplomacy.

# What is national interest if not the interest of the people, national dignity if not the dignity of the people? In many instances Nepali migrant workers are the lowest paid, worst treated and least protected. In some Gulf countries Nepali national are so discriminated that they receive only one fourth of the compensation in case of accident or death. In view of the current situation in the Gulf is it not the duty of the state to explore other opportunities for employment of better markets for our workers? With such a large number of Nepali citizens involve, improving the conditions of Nepali workers must be one of the top priorities of our FP. Should there be some problems in that region we have contingency plans of evacuation or alternative opportunities to absorb them in gainful employment?

Diplomacy:

Trade, tourism employment, investment and technology transfer are important aspect of development (economic) diplomacy. Through a more active role in the WTO, international Financial Institutions important capitals and leadership form the capital, Nepal could convince major donors to write-off debt (in which we spend over 20 billion in debt servicing alone annually).

Suggestions on Economic Policy:

Economic Diplomacy should be focused on economic policy issues linked with foreign relations. Its objective is to influence the host country’s policies by projecting home country’s economic interests Developed countries sometimes also employ economic recourse either as rewards or sanctions, in pursuit of a particular foreign policy objective. Economic diplomacy demands an analysis of the effects of a country’s economic situation and its political climate on the home country’s economic interests. Strong economic and business skills are needed in the execution of economic diplomacy.

Economic diplomacy engages contacts mainly with host and home countries think tanks, government agencies, businesses, and international organizations to advance the home country’s economic interests. Economic diplomacy also engages development partners to raise standard of living in home country, coordinate trade policy and promote home county’s policies and interests in international and bilateral arena.

Nepal, by strengthening in exports market, could attract higher level of foreign investment, convert huge existing tourism potential into reality and take advantages of opportunities available in the labor market and resources by improving the effectiveness of economic diplomacy and addressing supply side constraints.

Nepal economic diplomacy is conducted mainly by Ministries of Foreign Affairs and Finance at bilateral, regional multilateral levels. Targets related to various economic and poverty indicators are set out by periodic plans and LDC graduation strategy. They cannot be achieved only by Nepal’s effort alone. Support form friendly countries and multilateral agencies is vital in attaining the targets. As most of the economic diplomacy work is conducted by MoFa and through its missions abroad, it has to take the lead role MOFA.

Way Forward:

Mission abroad have to be equipped with qualified manpower including language experts and should be business friendly. They need to maintain a comprehensive and regularly updated website, respond promptly to business enquires, and should be able to connect private sectors between host countries and Nepal and vice years MOFA should develop a mechanism to collect policy papers, acts and other materials useful for the development of economic diplomacy and share them regularly with the missions.

MOFA should also need to enhance professionalism and capacity of its staffs, improve communications with the missions and institutionalized training program to address all matters related to foreign relations including economic diplomacy. It should also formulate policy to recruit local staff with local language capability, including lawyers, especially in countries where missions have to deal with legal issues. Communication between relevant MOFA officials, especially desk officers, and missions especially in promptly responding to the communication received at MOFA should be institutionalized and briefing materials including that of the relevant meetings to the related missions without delay should be shared with the missions, regularly.

MOFA should monitor carefully the activities of the Mission and facilitate them in achieving their targets and goals. Missions should prepare a plan of action with goals and targets under the guidance of MOFA. Coordination and consolidating the information received through monitoring mechanism could also help in tine-tuning of economic diplomacy strategy for achieving better result. It is also useful to have an independent evaluation of the action plan and its results at the end of each fiscal year. Mid-year evaluation is also important for timely amendment of the targets, if required.

Conclusion:

There are certain realities and necessities, primarily imposed by geography that makes up the permanent features of FP. These realities and necessities don’t change with changes in political regimes. The Yam between two boulders notion perhaps best represented the continuity dimension of Nepal’s foreign policy for long. But policies are also products of perceptions, world views and interests of leaders and elites. Talking of the importance of perceptions Robert Jervis says “Perceptions when they turn into misperceptions create havocs” in foreign policy. Looking at the old “yam between two boulders”, which looked at Nepal’s location as a liability and limitation from a new perspective as an asset and potential is one such important challenge of a more forward looking foreign policy.

New thinking however cannot be translated into action in isolation without recognizing the realities and necessities of time and space history and geography. That demands thinking of relations based on natural conditions and “mutuality of interests” with our immediate neighbors rather than the stereotypes equi-distance etc. in this context the asymmetry of power and capability justifies our demand from our two large and powerful neighbors for special and differential concessions based on the principle of non-reciprocity. Of course this will depend on agreement among the major actors and ability to effectively articulate our case boldly but with full assurance of our partnership.

On the whole “amity with all enmity with none” only can be the basis of strengthening relations with other friends and well-wishers and proactive role in international and regional organization. The objective of Development diplomacy is to make diplomats active actors in the development of the country. If enhancing national interest and dignity is the goal of foreign policy, welfare of our migrant workers must be one of the vital aspects of our foreign policy. How policies are implemented depend on management of institutions and capability, creativity and credibility of individuals. Talking about the country, Lee Kuan Yew once said “we are small, we are weak and vulnerable. Unless we can stand our ground we will be overwhelmed”. A weak leadership or excessive internal politics of conflict and confrontation provides a fertile ground for undue external influence, sadly unable to stand our own ground but unnecessary name calling and finger pointing Nepal has overexposed itself risking increased and unnecessary external involvement in our internal affairs.

Nepal today stands at the most critical threshold of history and geography with tremendous opportunities but also serious 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 foreign policy formulation and effective conduct of diplomacy will depend on many things most of all political leadership able to identify key issues of national interests and come to a consensus on defending them. Team of committed and capable professionals should then be selected to implement those policies, protect and promote vital national interest.

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.