Resuming closed industries- how challenging?

Narayan Prasad Ghimire / Kathmandu: After the Hetauda Garment Factory was closed, the cotton farming in Banke, Bardiya and Kailali was stopped. When Birgunj Sugar Mill was closed, the farmers gradually stopped growing sugarcanes in Bara, Parsa, Rautahat, Dhanusha and Sarlahi. Similarly, the farmers from Jhapa, Morang and Sunsari had to opt for other business after the closure of the Raghupati Jute Mill.

Now, with the closure of these industries, let’s guess- how many people are rendered jobless? How much land is left untilled? What is the hardship the people earlier engaged in farming are now faring in and out of the country? And, finally, what’s the loss incurred to national economy?

These three industries are the just the examples here. There are a lot of other industries and factories closed in the country, resulting in multifarious vicious problems.

Of course, the most harrowing result of the closure of industries is joblessness, which has forced the country people out for foreign employments- mostly in the Gulf countries and in Malaysia. Needless to say, the most difficult, dangerous, dirty and disgraceful works are awarded to the poor, low-educated and unskilled Nepalis abroad. Although the government sometime boasts of the remittance-based economy, the eroding family and social relations is costing so dear.

In this connection, it is worthy to mention here that a recent report on migrant workers has shown that Dhanusha is the district with highest number of people forced to fly abroad for job. If we link this bitter reality to politics, how contradictory situation we find– the largest number of political leaders and members of parliament come to the first Constituent Assembly were from Dhanusha. Can’t we explore any relations between the data from these two different sectors? Here must be the connection that political atmosphere in Nepal is too hostile on retaining the human resources here and capitalizing them fully by generating the employments.

Coming to the beginning again, the government has announced that it would gradually restore the closed industries. For the first phase, it was to resume the Gorakhkali Tyre Industry, Nepal Drug Ltd, Nepal Metal Company Ltd, Butwal Yarn Company, and Birgunj Sugar Mill while Janakpur Cigarette Factory and Oriental Magnesite in the second phase.

As the government has planned the resumption of these industries closed for years on various reasons, mostly the political interference with marauding trade unions, some have taken it positively, while some cautioned the government. However, the keen observers on the government activities have stressed on the major investment from private sector and facilitation from the government to sustain the industries.

To this, former government secretary Shyam Prasad Mainali junks the government’s plan of resuming the closed industries on the ground that the political parties would turn the industries and corporations into the recruitment centres for their cadres and near and dear ones. “It is also against the global practice that government does not own and run the industries these days. It is the private sector to invest on and run the industries in the liberal economy,” he stressed, adding that he however was not confident that government would perform up to the mark with the resumption of the closed industries.

Unlike his pessimism, economic analyst and senior journalist Gajendra Budhathoki, said, “Although government’s plan to revive the closed industries is good idea, managerial prowess is essential. Giving private sector everything from investment to management of corporations and industries won’t bring good results, nor can we image hundred percent involvement of government. Nepal Drug Ltd must be run by the government itself but not Janakpur Cigarette Factory.”

The economic analyst suggested the Telecom model to the government for the durability of the industries.

Both Mr Mainali and Budhathoki, warn that anarchic trade unions may ruin the industries again. “If the political parties have decided to revive industries for the good of people and country’s economy, it is appreciative; and if for creating recruitment centres for their cadres and dear ones, it’s is severe blow to national economy and treachery to people.”

Conclusively, private sector plays a significant role to drive the national economy in liberal economy. As we practice the same economy, the government needs to take confidence of private sectors for large investment on these industries, but keeping key monitoring and facilitation with itself. Most importantly, political interests on restoring industry would turn fatal as the experts have suggested. Introduction of latest technology and smooth management are obviously imperative to this initiative. RSS